/raid1/www/Hosts/bankrupt/TCRLA_Public/020128.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, January 28, 2002, Vol. 3, Issue 19
Headlines
A R G E N T I N A
PECOM ENERGIA: Late Payments Not Sign Of Imminent Bankruptcy
SIDECO AMERICANA: S&P Downgrade Leaves US$125 Sr. Bonds Clear
B R A Z I L
CESP: S&P Places Rating On Watch Positive
CVRD: Maintains The Same Level Of Investments For 2002
CVRD: ALBRAS Resumes Production at Full Capacity
TAM: To Halt Six International Flights, Cut 200 Jobs
TRANBRASIL: New Head In Default With Internal Revenue Service
VESPER: QUALCOMM Announces1Q02 Results, Investing More in Vesper
C O L O M B I A
CAJACOOP: Facing Liquidity Problems; Default Looms in 90 Days
EMCALI: Gets A Chance To Resolve Financial Problems On Its Own
M E X I C O
AHMSA: Finally Delivers Debt-Restructuring Plan To SEC
BITAL: Foreign Firm To Pay US$200MM For 20%
ENRON: Bankruptcy Will Not Impinge On Tractebel Deal
EVAMEX: Sale To Be Completed In June
GAM: Expropriation Brings Headache To Government
GRUPO DESC: Analyst's Murky Revenue Outlook Pulls Down Shares
MAXCOM TELECOMUNICACIONES: Seeks Partners, Debt Restructure Plan
TELEFONICA DE ARGENTINA/TELECOM ARGENTINA: Capex Plan Delayed
VITRO SA: Shares Climb On Report It Would Up Investment This Year
P E R U
MARIA ANGOLA: Peddles Hotel Complex to Peruvian, Foreign Buyers
MINERA RAURA: To Terminate Operations if Unions Won't Cooperate
- - - - - - - - - -
=================
A R G E N T I N A
=================
PECOM ENERGIA: Late Payments Not Sign Of Imminent Bankruptcy
------------------------------------------------------------
Due to the stringent regulations on the transfer of funds
implemented by the Argentinean government, Pecom Energia is late
on payments to contractors in Venezuela, Business News Americas
reveals.
The Argentine company reportedly owes between US$50 million and
US$60 million, of which US$24 million is due to local contractors
in Venezuela.
Hugo Hernandez Raffalli, president of Venezuela's Oil Chamber,
said that Pecom executives and officials of the oil board will
ask the state-owned oil company PDVSA to advance payments to
Pecom so as to relieve the Company's tight financial condition.
Pecome, in the meantime, was expected to make a payment of about
US$7 million last week.
"This problem will be solved and in no sense does it imply the
close of activities in Venezuela or bankruptcy of the Company,"
Pecom Energia public relations manager Isabel Moran said.
CONTACTS: Pecom Energia S.A. de Perez Companc S.A.
Maipœ 1 - Piso 22 - C1084ABA
Buenos Aires, Argentina
Phone: (54-11) 4344-6000
Fax: (54-11) 4344-6315
URL: http://www.pecom.com
SIDECO AMERICANA: S&P Downgrade Leaves US$125 Sr. Bonds Clear
------------------------------------------------------------
Standard & Poor's said Wednesday that the downgrade on Sideco
Americana S.A. (Sideco) foreign currency corporate credit rating
to 'SD' on Jan. 21, 2002, does not affect the rating on the
company's US$125 million senior unsecured bonds due Aug. 1, 2002.
The indenture of the bonds, which remain rated 'C', established
the obligation to build up an escrow account sufficient to cover
two interest payments, if certain ratios were not attained.
Sideco funded this account in May 2000.
The moneys currently in the offshore account will allow Sideco to
face the last two interest payments (in February and August
2002). Nevertheless, Standard & Poor's does not expect the
company to be able to internally generate enough cash to cover
the final principal maturity on Aug. 1, 2002. This makes the
repayment on the bonds more dependent on the possibility of
selling assets or other alternatives.
As Sideco's cash-generation ability greatly depends on the
performance of a few key subsidiaries, the company's senior
unsecured debt is structurally subordinated to the liabilities of
its subsidiaries and is therefore, rated one notch lower than its
corporate credit rating. For more information, please refer to
the Jan. 21, 2002, press release (Downgrades on Argentine
Corporates Reflect Sovereign-Induced Risks) that can be found on
RatingsDirect, Standard & Poor's Web-based credit research
system.
Analyst: Ivana Recalde, Buenos Aires (54) 114-891-2127; Marta
Castelli, Buenos Aires (54) 114-891-2128
===========
B R A Z I L
===========
CESP: S&P Places Rating On Watch Positive
-----------------------------------------
Standard & Poor's placed its single-'B'-plus global scale
corporate credit rating on (CESP) Companhia Energetica de Sao
Paulo on CreditWatch with positive implications.
The CreditWatch placement reflects Standard & Poor's opinion that
the global settlement stemming from the Energy Market Agreement
in December 2001 will mitigate the negative impact of energy
rationing on CESP's 2001 financial performance. Furthermore, the
settlement's rejection of Annex V eliminates the harsh financial
consequences, which would have resulted if it had been
implemented.
The recently announced Energy Market Agreement solved some
pending regulatory issues, such as the compensation of generators
for their lost revenues under "initial contracts." The agreement
also subsidizes the costs associated with purchases of energy in
the spot market. Therefore, instead of a (roughly) 20% decrease
in sales for the rationing period (June 2001-November 2001), CESP
and other generators will be reimbursed at 97%-98% of initial
contract revenues. The reimbursement will be recovered from
customers through an extraordinary tariff (6% on average)
increase, which will be applied in the next 36 months. However,
about 90% of this amount will be shortly advanced to affected
industry participants through a loan from BNDES (Banco Nacional
de Desenvolvimento Economico).
CESP is a Brazilian generation company, which is 53% owned (74%
voting shares) by the state of Sao Paulo and its state-owned
companies. After several attempts to privatize CESP failed, the
decision to sell the company was put on hold indefinitely due to
the current energy crisis in Brazil.
CESP's rating reflects:
-- Still high regulatory risk despite the recent passage of
the Energy Market Agreement;
-- CESP's high nominal debt service burden; and -- High
foreign currency exposure (about 80% of CESP's debt is in foreign
currencies and no hedging policy is in place).
These weaknesses are offset by the following strengths:
-- CESP's generation sources are in good condition and have
strong availability rates. Prior to the energy crisis, CESP had
always generated more than its designated assured energy.
-- The market is large and growing, consisting of the Sao
Paulo metropolitan area and, eventually, the south-southeastern
region of Brazil. Currently, CESP provides power to the Sao Paulo
metropolitan area, Brazil's richest and most industrialized
region, through its sales to four distribution companies. In a
liberalized market, CESP will sell power to the entire south-
southeastern market of Brazil, the most developed and rapidly
growing part of the country.
The CreditWatch will be resolved as soon as the results of the
Energy Market Agreement are quantified and its effect on CESP are
clearer.
CONTACT: Standard & Poor's
Anna Paula Dal Secco, Sao Paulo, (55) 11-5501-8955
Milena Zaniboni, Sao Paulo, (55) 11-5501-8945
Cheryl E Richer, New York, 212/438-2084
CVRD: Maintains The Same Level Of Investments For 2002
------------------------------------------------------
CVRD announced that federal initiatives to restructure the energy
industry will not affect its plans to augment its own energy
generation capacity. The company plans to invest enough money to
increas from 10 percent of its needs to between 20 percent and 30
percent, says O Estado de Sao Paulo.
CVRD said for this year, it intends to maintain the same level of
investment as last year - meaning, the Company would still invest
around US$850 million for 2002, apart from acquisitions, in the
areas of iron, aluminum, copper and energy.
At the same time, CVRD also intends to open its iron ore
pelletization plant in Sao Luis (Maranhao) in mid-year, which
will increase production by 6 million from the current 25
million.
The project costs US$450 million, with US$200 million coming from
the BNDES (Banco Nacional de Desenvolvimento Economico e Social).
CONTACT: Roberto Castello Branco
castello@cvrd.com.br
+55-21-3814-4540
Andreia Reis
andreis@cvrd.com.br
+55-21-3814-4643
Barbara Geluda
geluda@cvrd.com.br
+55-21-3814-4557
Daniela Tinoco
daniela@cvrd.com.br
+55-21-3814-4946
CVRD: ALBRAS Resumes Production at Full Capacity
------------------------------------------------
Companhia Vale do Rio Doce (NYSE: Riopr)(CVRD) announced that
ALBRAS - Aluminio Brasileiro S. A. (Albras), a company in which
its subsidiary Vale do Rio Doce S.A. - Aluvale (Aluvale) holds
51% of its total capital, resumed yesterday operation at full
capacity, 406,000 tonnes. During the second half of 2001, Albras
had to reduce production due to the energy rationing program in
the North of Brazil.
TAM: To Halt Six International Flights, Cut 200 Jobs
----------------------------------------------------
Brazil's No. 2 airline TAM, which was seen by experts as being in
better financial condition than its more indebted local rivals
Varig, Vasp and Transbrasil, will temporarily halt six less-
profitable international flights and sack 200 workers, reports
Reuters.
The flights affected are the routes to Frankfurt and Zurich, as
well as one of three flights to Miami and two of five flights to
Buenos Aires, according to a company spokeswoman.
"The Company's policy is to operate routes that are profitable,
and these have not been yielding profits," the spokeswoman
explained.
The spokeswoman said international flights represented less than
10 percent of the Company's revenues, which reached BRL2.2
billion in 2000. The layoffs of 200 staff out of a total of some
2,250 would be carried out by March, she said.
The president of the National Flying Staff Syndicate, who was
stunned by the severity of the TAM cuts, said she would try and
get in touch with the Company.
"We expected a reduction in flights due to a drop in
international demand, but not so many layoffs," said Graziella
Baggio.
CONTACT: Daniel Mandelli Martin, President
Buenos Aires
Tel. (54) (11) 4816-0001
URL: www.tam.com.br
TRANBRASIL: New Head In Default With Internal Revenue Service
-------------------------------------------------------------
Dilson Prado da Fonseca, who recently led a group of investors in
the purchase of Brazil's No. 4 airline Transbrasil, is in default
with the Internal Revenue Service, according to a report by
Jornal do Brasil.
Neither he nor his wife, Claudia Prado, declared Income Tax in
2001. The couple owns several companies in Goania, including the
Fly Taxi Aereo.
Fonseca led a group of investors in buying Transbrasil for a
symbolic 1 real (42 U.S. cents) and promised to take on the
grounded carrier's debt of BRL1 billion (US$422 million).
The recent move predicted immediate investment of $25 million to
get Transbrasil back in the air, and another BRL200 million
(US$84 million) over the next three months.
CONTACT: Antonio Celso Cipriani, CFO
Rua Geral Pantaleao Telles, No. 4,
Jardim Aeroporto
04355-040 Sao Paulo, Brazil
Phone: +55-11-533-7111
Fax: +55-11-543-9083
VESPER: QUALCOMM Announces1Q02 Results, Investing More in Vesper
----------------------------------------------------------------
QUALCOMM Incorporated (NASDAQ: QCOM) reported Thursday pro forma
revenues in the first quarter of fiscal 2002 of $693 million
compared to $655 million in the year ago quarter and $651 million
in the fourth quarter of fiscal 2001. Pro forma earnings per
share were $0.23 in the first quarter of fiscal 2002 compared to
$0.23 per share in the year ago quarter and $0.19 per share in
the fourth quarter of fiscal 2001. Pro forma earnings differ from
reported earnings and include the Company's core operating
businesses, QUALCOMM CDMA Technologies (QCT), QUALCOMM Technology
Licensing (QTL) and QUALCOMM Wireless & Internet (QWI). Reported
earnings include the new QUALCOMM Strategic Initiatives (QSI)
segment and are presented in accordance with Generally Accepted
Accounting Principles (GAAP).
GAAP reported revenues for the first quarter of fiscal 2002 were
$699 million compared to $655 million in the year ago quarter, an
increase of 7 percent. Reported income before taxes was $218
million in the first quarter of fiscal 2002 compared to a loss
before taxes of $747 million in the year ago quarter.
"QUALCOMM's technology licensing business increased its revenues
and earnings before taxes for the third consecutive quarter. Our
chip business also increased its revenues, earnings before taxes
and profit margins from the September to December period, and 3G
CDMA2000 1X chips represented 40 percent of total MSM shipments
in the first quarter of fiscal 2002," said Dr. Irwin M. Jacobs,
chairman and CEO of QUALCOMM. "Continued weak global economic
conditions are moderating our March quarter outlook to a range of
$0.19-$0.21 pro forma earnings per share. However, 3G CDMA2000 1X
momentum is continuing to build despite these factors and we
expect that several recent developments will further strengthen
the foundation for future CDMA market growth. CDMA2000 1X
networks now support more than four million subscribers in South
Korea and several operators will soon deploy CDMA2000 1X in the
United States, Canada, Japan, and Latin and South America; South
Korean operator KT FreeTel launched the first commercial BREW-
enabled CDMA2000 1X network in November; China Unicom launched
its large-scale CDMA network; and the Indian government awarded
limited mobility licenses to several operators with CDMA networks
planned or underway."
"We will continue our support of CDMA manufacturers and operators
showcasing and operating their 3G CDMA technology around the
world, including the upcoming Winter Olympics in Salt Lake City
and the World Cup soccer event in South Korea, which notably is
the site of the world's first CDMA2000 1xEV-DO commercial
network," said Dr. Jacobs. "We believe these first-to-market 3G
systems clearly demonstrate CDMA's enhanced voice capacity,
always on and economical high-speed data performance, extensive
BREW wireless Internet applications, and increasingly available
precise GPS-based position location technology for many
applications."
Pro forma revenues increased to $693 million in the first quarter
of fiscal 2002 from $655 million in the year ago quarter, and
increased 6 percent from $651 million in the fourth quarter of
fiscal 2001. The increase in revenues compared to a year ago
quarter is primarily related to higher royalties, increased
shipments of 3G CDMA2000 1X MSM integrated circuits and higher
software fees.
Pro forma gross margin for the first quarter of fiscal 2002 was
66 percent compared to 62 percent in the year ago quarter and 64
percent in the fourth quarter of fiscal 2001. The increase in pro
forma gross margin resulted from higher royalties and improved
gross profit margins in the QCT business segment.
Pro forma R&D expenses were $104 million in the first quarter of
fiscal 2002 compared to $84 million in the year ago quarter and
$114 million in the fourth quarter of fiscal 2001. The increase
in R&D investment compared to the year ago quarter was primarily
due to increased integrated circuit product initiatives to
support high-speed wireless Internet access and multi-mode,
multi-band, multi-network products including cdmaOne(TM),
CDMA2000 1X/1xEV-DO, GSM/GPRS, WCDMA and position location
technologies. The sequential decrease in pro forma R&D expense
was due to seasonal factors and timing of material purchases.
Pro forma selling, general and administrative expenses were $91
million in the first quarter of fiscal 2002 compared to $78
million in the year ago quarter and $92 million in the fourth
quarter of fiscal 2001. The increase in SG&A expense compared to
the year ago quarter was primarily due to increased head count
and related expenses for our support efforts related to the
Binary Runtime Environment for Wireless(TM) (BREW(TM))
application development platform and expansion of the QUALCOMM
CDMA Technologies customer base.
Pro forma interest income was $25 million for the first quarter
of fiscal 2002 compared to $42 million in the year ago quarter
and $26 million in the fourth quarter of fiscal 2001. The decline
in interest income was a result of lower interest rates on cash
and marketable securities.
The Company's pro forma annual effective income tax rate for
fiscal 2002 is estimated to be 34 percent, consistent with the
year ago period.
QUALCOMM Strategic Initiatives (QSI)
The QSI segment includes the Company's strategic investments and
other income such as the previously announced FCC credit. QSI
losses before taxes for the first quarter of fiscal 2002 were $5
million compared to losses before taxes of $816 million in the
year ago quarter. The reduction in losses compared to the year
ago quarter was primarily due to a decrease in asset impairment
and related charges from the same quarter in fiscal 2001. During
the first quarter of fiscal 2001, we recorded $586 million in
such charges related to Globalstar. In addition, we recorded $181
million lower net unrealized losses on derivative instruments,
$144 million lower unrealized losses related to other-than-
temporary losses on marketable securities and other investments
and a $14 million decrease in equity in losses of investees,
offset by a $14 million decrease in realized gains on marketable
securities during the first quarter of fiscal 2002 as compared to
the year ago period. QSI also included 17 days of consolidated
results ($9 million loss) and $8 million of equity losses for the
Vesper companies. We completed a restructuring of these companies
on November 13, 2001, which resulted in QUALCOMM owning
approximately 86 percent of the Vesper companies.
Business Outlook
Second Quarter Fiscal 2002
-- Based on the current business outlook, the company
expects second fiscal quarter pro forma revenues to decrease by
approximately 3-6 percent compared to the first quarter of fiscal
2002. Second fiscal quarter pro forma earnings per share are
expected to be approximately $0.19-$0.21 (excluding QSI). This
estimate assumes shipments of approximately 13-14 million MSM
phone chips during the quarter, including approximately 7 million
3G CDMA2000 1X MSM phone chips. Operating expenses are expected
to increase due to seasonal factors such as employee payroll
taxes and public company expenses.
Fiscal 2002
-- Previously pro forma earnings included interest income from
our strategic investments, realized gains on the sales of
investments, and other income such as income realized from the
sale of an FCC credit. Under our new segment reporting format,
these items are included in the QSI segment, which is excluded
from pro forma results. This change reduced pro forma earnings by
$0.12 to $0.16 earnings per share compared to the estimate of
$1.10-$1.20 under the previous segment reporting. Based on the
current business outlook with continued global economic weakness,
the Company expects revenue growth to be approximately 5-15
percent and pro forma earnings per share for fiscal 2002 to be in
the range of $0.90-$0.97 (excluding QSI). This estimate assumes
growth of the CDMA2000 1X market in the second half of fiscal
2002, and is based on the sale of 80-90 million CDMA phones in
calendar 2002 with a 0-10 percent annual decrease in average
selling prices of CDMA phones, upon which royalties are
calculated.
Cash Flow
QUALCOMM's cash, cash equivalents and marketable securities,
excluding QSI, totaled approximately $2.4 billion at the end of
the first quarter of fiscal 2002. The following table presents
selected cash flow information, including cash equivalents and
marketable securities, for the first quarter of fiscal 2002 (in
millions):
Selected Cash Flow Information First Quarter
-----------------------------------------------------------
Fiscal 2002
Earnings before taxes, depreciation,
amortization and asset impairments $ 311
Working capital changes and taxes paid (34)
Additional share capital 18
Net cash inflows 295
Capital expenditures (31)
Net cash provided 264
Decrease in fair value of marketable securities (6)
Transfers to QSI (252)
Net increase in cash, cash equivalents and marketable -----
securities of QUALCOMM excluding QSI $ 6
=====
Results of Business Segments
As announced on January 17, 2002, the Company implemented its new
financial segment reporting which includes two new segments,
QUALCOMM Wireless & Internet (QWI) and QUALCOMM Strategic
Initiatives (QSI). The QSI segment is excluded from pro forma
results because the strategic investments are not viewed as part
of the Company's core operating businesses.
The following tables present pro forma segment information (in
thousands):
First Quarter - Fiscal Year 2002
Other/
Reconciling
Segments QCT QTL QWI Items (1) Pro Forma
Revenues 359,144 210,803 109,295 13,446 692,688
Change from
prior quarter 7% 11% (3%) N/M 6%
Change from
prior year 9% 13% (1%) N/M 6%
Earnings
before taxes 86,941 188,688 (1,233) 13,053 287,449
% of revenues 24% 90% (1%) N/M 41%
Change from
prior quarter 32% 10% (128%) N/M 23%
Change from
prior year 3% 8% (107%) N/M 2%
Fourth Quarter - Fiscal Year 2001
Other/
Reconciling
Segments QCT QTL QWI Items (1) Pro Forma
Revenues 336,881 189,340 112,240 12,370 650,831
Earnings
before taxes 65,917 172,102 4,403 (7,981) 234,441
% of revenues 20% 91% 4% N/M 36%
First Quarter - Fiscal Year 2001
Other/
Reconciling
Segments QCT QTL QWI Items (1) Pro Forma
Revenues 330,632 186,824 110,772 26,981 655,209
Earnings
before taxes 84,180 174,139 17,275 7,538 283,132
% of revenues 25% 93% 16% N/M 43%
(1) Other/Reconciling Items related to revenues consist
primarily of other non-reportable segment revenues less
intersegment eliminations. Reconciling Items related to earnings
before taxes consist primarily of impairment and other charges
that are not allocated to the segments for management reporting
purposes, unallocated net investment income, non-reportable
segment results, interest expense and the elimination of
intercompany profit.
N/M - Not Meaningful
Business Segment Highlights
QUALCOMM Technology Licensing (QTL)
-- Signed a total of 17 royalty-bearing CDMA license agreements
during the first quarter of fiscal 2002, including 11 new
licensees, three extensions to existing license agreements and
three additional license agreements with existing licensees. Of
the 17 agreements announced during the quarter, 14 were with
Chinese manufacturers. This brings the total number of Chinese
manufacturers licensed by QUALCOMM for CDMA to 17 (three
infrastructure licensees, ten subscriber licensees and four
companies licensed for both infrastructure and subscriber
equipment).
QUALCOMM CDMA Technologies (QCT)
-- Shipped approximately 15 million MSM phone chips to customers
worldwide during the first quarter of fiscal 2002 compared to
approximately 15 million units in the year ago quarter and
approximately 13 million units in the fourth quarter of fiscal
2001.
-- Shipped approximately 6 million 3G CDMA2000 1X MSM phone
chips during the first quarter of fiscal 2002 for a cumulative
total of approximately 12 million 3G CDMA2000 1X MSM phone chips.
-- Shipped CSM infrastructure chips to support approximately one
million equivalent voice channels in the first quarter of fiscal
2002.
-- Announced the first nationwide commercial position location
system available anywhere in the world through mobile phone
networks, launched in Japan by KDDI Corporation using gpsOne(TM)
enabled handsets.
-- Announced the first test samples of the Company's 3G MSM6050
device, the first wireless baseband chip produced using state-of-
the-art 300mm (12-inch) complementary metal-oxide semiconductor
(CMOS) fabrication from Taiwan Semiconductor Manufacturing
Company Ltd. (TSMC).
QUALCOMM Wireless & Internet Group (QWI)
QUALCOMM Internet Services (QIS)
-- Announced that KT FreeTel launched its enhanced magic n
multipack(TM) service based on QUALCOMM's BREW platform, becoming
the first carrier in the world to offer its wireless subscribers
commercial BREW-enabled products and services.
-- Announced the selection of the IBM J9 "Java Powered" CLDC and
MIDP-compliant Java virtual machine environment for QUALCOMM's
BREW platform.
-- Announced the signing of non-binding memoranda of
understanding (MOUs) with leading wireless operators in Latin
America including BellSouth in Guatemala, Telcel-Bellsouth in
Venezuela, Iusacell in Mexico and Vesper in Brazil, to provide
products and services based on the BREW platform.
-- Announced the signing of non-binding MOUs with handset
manufacturers SANYO and KTF Technologies to port the BREW
platform to their wireless handsets.
-- Announced collaboration with Comverse to bring next
generation enhanced services, such as multimedia messaging, voice
solutions and mobile Internet solutions, to BREW-enabled wireless
devices.
-- Announced that Mattel, Inc., the world's largest toy
manufacturer, the World Wrestling Federation Entertainment, Inc.,
an integrated media and entertainment company, and leading
targeted media company PRIMEDIA intend to develop applications
for the BREW platform.
QUALCOMM Wireless Business Solutions (QWBS)
-- Shipped approximately 9,400 OmniTRACS(R) units and related
products in the first quarter of fiscal 2002, compared to
approximately 10,000 units during the year ago quarter. Lower
volumes of OmniTRACS unit shipments in the first quarter of
fiscal 2002 primarily related to economic conditions affecting
the long-haul trucking industries in Canada and Mexico.
-- Announced a five-year agreement to bring high-value fleet
management solutions to the European marketplace. QUALCOMM
Wireless Business Solutions Europe, a wholly owned subsidiary of
QUALCOMM and formerly named eQ-COM, will join with Eutalsat to
bring the EutelTRACS(R) mobile communications system to Europe's
fleet managers, helping them increase operating efficiencies,
enhance customer service and improve productivity. EutelTRACS is
the European version of QUALCOMM Wireless Business Solutions'
mobile communications solution,
OmniTRACS.
-- Announced that JB Hunt Transport, one of the nation's largest
publicly held truckload carrier, has selected the CDMA-based
OmniExpress(TM) terrestrial mobile communications system for its
intermodal fleet.
-- Announced OmniOne(TM), a low-cost transportation application
for digital mobile phones that will provide trucking companies,
affiliate fleets, and subcontractors a powerful, portable
communications tool that enables drivers and dispatchers to
receive and send load assignments, status updates and other
information. The OmniOne application is designed to run on
QUALCOMM's BREW platform.
QUALCOMM Digital Media (QDM)
-- Technicolor Digital Cinema, a joint venture between
Technicolor and QUALCOMM, was selected as the digital
distribution partner for Warner Bros. Pictures' "Ocean's Eleven,"
which premiered digitally at selected theatres on December 7,
2001. "Ocean's Eleven" was the first movie to use Technicolor
Digital Cinema's new digital delivery system
utilizing QUALCOMM's ABSolute(TM) image compression technology.
-- Announced the QDEC(TM) 1000 decoder, which forms the core of
a digital cinema theatre presentation system. The QDEC 1000
decoder is the first cinema-quality product to offer the image
and audio stream synchronization and formatting necessary for a
digital cinema theatre system processor. In addition, digital
projector manufacturers, Barco Digital Cinema and Christie
Digital Systems announced plans to integrate the QDEC 1000
decoder into their respective digital cinema projectors.
-- Received a contract to build several thousand secure cell
phones for U.S. government users. Demand is expected to grow as
these phones contribute to the homeland security initiative.
QUALCOMM Strategic Initiatives (QSI)
-- Completed a series of transactions and created a newly formed
holding company called Vesper Holding, Ltd. (Vesper Holding) to
acquire interests in Vesper Sao Paulo S.A. and Vesper S.A.,
wireless carriers in Brazil. QUALCOMM agreed to invest $266
million of a total $346 million investment in Vesper Holding.
-- Announced an agreement to provide a strategic investment of
up to $200 million in exchange for up to 4 percent of the common
shares of Reliance Communications Limited (RCL), the only
nationwide limited mobility wireless carrier in India. RCL
intends to construct and operate a CDMA commercial network
deploying CDMA2000 1X technology.
QUALCOMM Incorporated ( www.qualcomm.com) is a leader in
developing and delivering innovative digital wireless
communications products and services based on the Company's CDMA
digital technology. The Company's business areas include CDMA
chipsets and system software; technology licensing; the Binary
Runtime Environment for Wireless(TM) (BREW(TM)) applications
platform; Eudora(R) e-mail software; digital cinema systems; and
satellite-based systems including portions of the Globalstar(TM)
system and wireless fleet management systems, OmniTRACS(R) and
OmniExpress(R). QUALCOMM owns patents that are essential to all
of the CDMA wireless telecommunications standards that have been
adopted or proposed for adoption by standards-setting bodies
worldwide. QUALCOMM has licensed its essential CDMA patent
portfolio to more than 100 telecommunications equipment
manufacturers worldwide. Headquartered in San Diego, Calif.,
QUALCOMM is included in the S&P 500 Index and is a 2001 FORTUNE
500(R) company traded on The Nasdaq Stock Market(R) under the
ticker symbol QCOM.
To see Qualcomm's Financial Statements:
http://bankrupt.com/misc/Qualcomm.pdf
CONTACT: QUALCOMM Incorporated, San Diego
Julie Cunningham
Sr. Vice President, Investor Relations
Tel. 858/658-4224, Fax. 858/651-9303
Email: juliec@qualcomm.com
===============
C O L O M B I A
===============
CAJACOOP: Facing Liquidity Problems; Default Looms in 90 Days
-------------------------------------------------------------
Colombian bank Caja Popular Cooperativa (Cajacoop), which has
been under government intervention in the last four years, has a
big liquidity problem, South American Business Information
reports.
The report predicts that the bank is likely to start defaulting
on its costs within three months.
TCR-LA previously reported that Cajacoop has negative equity of
83 billion pesos. It owed 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 government is renegotiating Cajacoop's debts with creditors
in an attempt to provide light at the end of the tunnel for an
institution that has seen its workforce fall from over 800 to 100
and its branches from over 100 to 18 in the last 4 years.
EMCALI: Gets A Chance To Resolve Financial Problems On Its Own
--------------------------------------------------------------
The Colombian employment ministry has ruled out the privatization
or liquidation of Empresas Municipales de Cali (Emcali),
Colombia's second largest diversified utility, reports South
American Business Information.
The ministry has allowed the utility to go back into municipal
administration, giving it a chance to find a way out of its
financial crisis.
Emcali reportedly has debts of over 900 billion pesos. The
company needs an immediate capital boost, which according to
Colombia's public services regulator Diego Humberto Caicedo, will
amount to 600 billion pesos in order to continue operating.
The Company has 20 days to negotiate a debt repayment amendment
with its banking and electricity supply creditors. The government
will follow the solution of problems at the Petar water treatment
plant especially closely.
===========
M E X I C O
===========
AHMSA: Finally Delivers Debt-Restructuring Plan To SEC
------------------------------------------------------
Altos Hornos de Mexico SA (Ahmsa) is now close to having its
suspension of debt-payments lifted. According to a Bloomberg
report, the steelmaker, which defaulted on $1.85 billion of debt
in May 1999, has filed a debt-restructuring plan with the U.S.
Securities and Exchange Commission.
The move brings the Company a step closer to gaining creditor
approval of the plan and resuming payment of its debt.
Weston Financial Services, a New York-based investment bank and
brokerage firm, has been hired to find the estimated 4,000
holders of Ahmsa's bonds and 120 banks, including Bank of America
Corp. and Citigroup Inc.'s Banamex SA.
"We expect to submit to the company a list of the bondholders
identified sometime in the next four weeks or so," said John
Liegey, chairman and founder of Weston, adding that it could take
three months to get enough bondholders to approve the almost 500-
page restructuring plan, which the SEC must first endorse.
Reversing a court-ordered creditor protection in Mexico could
take another 90 days, pushing Ahmsa's debt default to more than
three years.
Under Mexican law, investors representing 95 percent of bonds and
bank debt must agree to the restructuring, said Liegey.
BITAL: Foreign Firm To Pay US$200MM For 20%
-------------------------------------------
Dutch financial institution ING will buy close to 20 percent of
Grupo Financiero Bital for around US$200 million dollars, reports
Mexico City daily Reforma.
This will bring the Mexican financial institution's total foreign
ownership to close to 35 percent.
Bital's Mexican group of shareholders, headed by the Berrondo and
Estevez families, own 49.5 percent of the institution. Banco
Sanander Central Hispano, with 8.3 percent, and Banco Comerical
Portugues, with 8.3 percent.
According to ING sources, the transaction, to be officially
announced over the next few weeks, will be subject to the
approval of ING's shareholders in the first few days of February.
ING Investments currently owns 98 percent of Afore Bital, and has
stakes in Seguros Comercial America and Seguros Bital.
CONTACTS: Engr Luis Berrondo Avalos, Chairman
Atty Jaime Ruiz Sacristan, CEO
German Osuna Castelan, General Manager Finance
Atty Fenando Ysita Del Hoyo, Secretary
THEIR ADDRESS:
Grupo Financiero Bital SA de CV
Paseo de la Reforma No 243 Cuauhtemoc
Mexico DF 06500
Mexico
Phone +52 5 721 5286
Home Page http://www.bital.com.mx
ENRON: Bankruptcy Will Not Impinge On Tractebel Deal
----------------------------------------------------
Hector Olea, the director of Tractebel's Mexican branch,
announced that Enron's bankruptcy would not affect its
transaction with Tractebel for its project to develop an
electricity cogeneration plant in Monterrey, Mexico City daily
Reforma reports. The project is expected to be completed on time.
The report also claims that notifying the Regulator Energy
Commission (CFE) about the project is not necessary since there
has been no change in the Company carrying out the project, only
the ownership, which in this case is made up 80 percent by
Tractebel, and 20 percent by Enron.
The cogeneration plant will supply 245 megawatts of electricity
to Vitro, IMSA and Apasco, as well as other regional companies.
Meanwhile, citing comments made by Chairman Jean-Pierre Hansen to
Mexican journalists, Bloomberg reported that Tractebel SA, the
Belgium- based utility unit of Suez SA of France, has made an
offer for Enron's 20 percent in the Mexican power station.
Hansen sees the Mexican electricity market growing 5 percent to 6
percent a year, while the gas market may grow 8 percent annually.
Tractebel will reportedly invest US$200 million over the next
five years in gas infrastructure in Mexico, where it is the
third-largest gas distributor.
CONTACTS: Mark Palmer of Enron Corp., +1-713-853-4738
Enron Corp.
Investor Relations Dept.
P.O. Box 1188, Suite 4926B
Houston, TX 77251-1188
(713) 853-3956
Email: investor-relations@enron.com
Enron Corp.
Public Relations Dept.
P.O. Box 1188, Suite 4712
Houston, TX 77251-1188
(713) 853-5670
EVAMEX: Sale To Be Completed In June
------------------------------------
Mexican dairy company Evamex, which operates under the control of
bank bailout protection agency IPAB, is in the process of being
sold.
Zimmat Consulting was hired to handle the procedure which will
break the Company up into four distinct parts -- cheese products,
milk products, regional brands and specialized brands.
The completion of the sale, which is expected to come in by June
this year, awaits final editing of the bidding rules.
Confirmed interested bidders include Nestle, Alpura, Parmalat,
Lala, Sigma Alimentos and Grupo Zaragoza.
Evamex is known for its Boreal, Mileche and Volcanes brands,
CONTACT: Jose Angel Fernandez, Director de Quesos
Liverpool No.18
M‚xico, D.F. 6600
Mexico
Tel: (5) 703-0313
Fax: (5) 592-7444
GAM: Expropriation Brings Headache To Government
------------------------------------------------
The Mexican government is likely to face a series of lawsuits for
its expropriation of sugar refinery GAM. According to a report
released by Mexico City daily Reforma, U.S. investor Sam Zell,
who owns 15 percent of the sugar company, could launch a lawsuit
early in March against the Mexican government.
Additionally, GAM's bondholders, to whom the Company issued
US$100 million in notes in 1998, could also hold meetings in
Mexico at the beginning of next month.
Mexican Agriculture Minister Javier Usabiaga has already named an
auditor to look into what could become a big headache for the
government.
GRUPO DESC: Analyst's Murky Revenue Outlook Pulls Down Shares
-------------------------------------------------------------
Analyst's expectation that Grupo Desc's revenue will fall 12
percent in the fourth quarter pulled down the value of the
Company's shares 2.7 percent, or 13 centavos, to 4.37 pesos.
According to a report released by Bloomberg, Laura Forte, an
analyst with Salomon Smith Barney Inc., said she expects Desc's
revenue to fall 12 percent in the fourth quarter to $533 million
from $609 million in the same quarter last year as an economic
slowdown in the U.S. cuts into its sales.
Desc is an industrial group with subsidiaries in auto parts,
petrochemicals, food and real estate.
CONTACTS: DESC, S. A. DE C. V.
Paseo de los Tamarindos # 400-B
Mexico, D.F. 05120
Phone: (5255) 261-80-00
Fax: (5255) 261-80-96
desc@mail.desc.com.mx
Arturo D'Acosta Ruz, Chief Financial Officer
Tel: (5255) 261 8000
Alejandro de la Barreda, Investor Relations
Tel: (5255) 261 8000 ext 2806
abarredag@mail.desc.com.mx
Adriana Estrada Vergara, Investor Relations
Tel: (5255) 261 8000 ext 2846
aestradav@mail.desc.com.mx
MAXCOM TELECOMUNICACIONES: Seeks Partners, Debt Restructure Plan
----------------------------------------------------------------
Start-up Mexican telephone company Maxcom Telecomunicaciones SA
(MaxCom), has been hunting for new partners through U.S. road
shows since the start of the year, reports Mexico City daily
Reforma.
At the same time, it is also initializing a process to
restructure its debt, which specifically relates to a US$300-
million bond. Sources said Merrill Lynch is looking favorably
upon MaxCom's plan, says the report.
MaxCom's shareholders include the Bank of America, the Bank of
Boston and CT Communications and Adrian Aguirre, who owns 16
percent.
At the end of the third quarter 2001, Maxcom's Cash position was
MXN491.7 million (MXN393.9 million in Cash and Cash Equivalents
and MXN97.8 million in Maxtel bonds, equivalent to US$25 million
face value), and MXN389.4 million in Restricted Cash (deposited
into an escrow account to guarantee debt service until April 2002
for the US$300 million 13.75 percent senior notes due 2007),
compared to MXN1.227 billion in Cash and Cash Equivalents, and
MXN806.1 million in Restricted Cash at the end of 3Q00, and to
MXN740.7 million (MXN647.7 million in Cash and Cash Equivalents
and MXN93.0 million in Maxtel bonds, equivalent to US$25 million
face value), and MXN369.2 million in Restricted Cash at the end
of 2Q01.
CONTACT: Jose-Antonio Solbes
Maxcom Telecomunicaciones, S.A. DE C.V., in Mexico,
+001-525-147-1125, or
investor.relations@maxcom.com.mx;
or Lucia Domville of Citigate Dewe Rogerson,
+1-212-419-4166, or lucia.domville@citigatedr-ny.com
Fulvio del Valle, President
Ciudad De Mexico
Magdalena 211
Col. Del Valle
Tel. 51 47 1111
Email: investor.relations@maxcom.com.mx
TELEFONICA DE ARGENTINA/TELECOM ARGENTINA: Capex Plan Delayed
-------------------------------------------------------------
Telefonica de Argentina and Telecom Argentina, two of the
country's largest telcos, failed to announce capex plans for
2002, reports Business News Americas. The reason for the delay,
according to the companies' representatives, is the uncertainty
surrounding Argentina's economic crisis.
"I would say that by the second half of February the government
and the telcos should decide some minimum guidelines for
continuity of their operations. The big question is how to
continue the business after some 60-days of silence," said local
analyst Rafael Ber.
Standard & Poor's recently downgraded the foreign currency
ratings of Telefonica and its Argentine shareholder CTI Holdings
to `SD' from `CCC+' and `CC' respectively, and Telecom Argentina
to `SD' from `CCC+.'
VITRO SA: Shares Climb On Report It Would Up Investment This Year
-----------------------------------------------------------------
Shares of Vitro SA, Mexico's largest glassmaker, jumped 5.2
percent to 7.15 pesos, Bloomberg reports. Analysts at Morgan
Stanley Dean Witter & Co. said in a report Wednesday that Vitro
would increase investment in 2002 by 55 percent to $170 million,
a greater percentage increase than any other Mexican industrial
group.
Vitro's past attempts to boost investment failed to lift the
Company's sales growth, which has hovered near 1 percent
annually, the report said.
Vitro is reportedly looking to sell assets to pay down part of
its $1.6 billion debt and refinance a $175 million bond that
matures in May.
CONTACT: Vitro S.A. de C.V.
financial community:
Gerardo Guajardo, 011 (52) 8329-1349
gguajardo@vto.com
Beatriz Martinez, 011 (52) 8329-1258
bemartinez@vto.com
or
Vitro, S. A. de C.V.
media: Albert Chico, 011 (52) 8329-1335
achico@vto.com
=======
P E R U
=======
MARIA ANGOLA: Peddles Hotel Complex to Peruvian, Foreign Buyers
---------------------------------------------------------------
Insolvent Peruvian hotel operator Maria Angola will not sell its
hotel complex separately, but as a whole, says South American
Business Information.
The company is courting a Peruvian or a foreign hotel chain to
buy the complex, which is composed of a four-star hotel, a
casino, a pub and a convention center. The company is expected
to come up with a price tag in two months.
Since commencing an insolvency process two years ago, the complex
has operated normally, although occupation rates have only been
55%. The company sees a 25% growth this year, the report says.
MINERA RAURA: To Terminate Operations if Unions Won't Cooperate
---------------------------------------------------------------
Peruvian mining firm Minera Raura has threatened to halt
operation indefinitely if it fails to reach an agreement with its
agitated labor unions, Business News Americas said last week.
In a communiqu‚ to the Lima Stock Exchange, the company also
revealed that it has already sought the help of authorities in
putting a lead on adverse union actions. The company, which
mines zinc, lead and copper, has been hobbled by huge losses due
to falling demands for copper and zinc. Minera is desperately
trying to cut cost.
The company absorbed a US$1.05 million loss during the first half
of 2001, compared to US$14.4 million gross revenue a year
earlier. The company operates in Lauricocha, in central Peru's
Huanuco department.
***********
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, Edem
Psamathe P. Alfeche and Fe Ong Va¤o, Editors.
Copyright 2002. All rights reserved. ISSN 1529-2746.
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