/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/020322.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 Friday, March 22, 2002, Vol. 3, Issue 58 Headlines A R G E N T I N A ARGENTINE CORPORATES: S&P To Revise Local, Foreign Ratings To SD REPSOL YPF: May Have To Sell More Assets To Reduce Debt TELECOM ARGENTINA: Parent Denies Sale Talk Rumors B E R M U D A GLOBAL CROSSING: Johnson & Perkinson Files Class Action Suit GLOBAL CROSSING: Schoengold & Sporn Commence Fraud Class Action GLOBAL CROSSING: KAB Seeks Details On Relationships, Bidders GLOBAL CROSSING: SEC Probes Into Deal With Adviser's Affiliate B R A Z I L GLOBO CABO: Shares Continue To Slide As Concern Mounts C H I L E MADECO: Announces Effects Of The Argentine Crisis On Results E C U A D O R OLEODUCTO DE CRUDOS: S&P Lowers to 'BBB' on Repsol Concerns J A M A I C A KAISER ALUMINUM: Court Approves US$300 Mln DIP Financing M E X I C O ALFA SA: Shares Down 2.5% Following Hylsamex Default Rating ANDERSEN: BDO In Talks To Buy Mexican Units GRUPO BITAL: Concludes US$400-Mln Capitalization Plan, Stage One GRUPO BITAL: BBVA Upgrades Stock to "Buy" Recommendation GRUPO MEXICO: Strike Continues, Workers At Two Units Refuse Deal GRUPO MEXICO: To Confront US$26 Mln Debt Payment Next Week LASON INC.: Bankruptcy Judge Approves Disclosure Statement LASON INC.: Company Profile V E N E Z U E L A AES CORP: Venezuelan Unit To Pay Special US$59.4 Mln Dividend AES CORP: Remaining 5% CANTV Stake Sold to Undisclosed Buyer - - - - - - - - - - ================= A R G E N T I N A ================= ARGENTINE CORPORATES: S&P To Revise Local, Foreign Ratings To SD ---------------------------------------------------------------- Following an issue on March 13 of regulation A 3507 by the Central Bank of Argentina, Standard & Poor's Corp will be revising over the next few days the local and foreign currency ratings of all the Argentine entities that are mandated to pesify their financial obligations to SD (selective default), says AFX. Subsequently, S&P will assign a new issuer rating to each entity according to the impact the pesification could have on its financial profile. The March 13 issue clarifies the application of Article 3 of Decree 214 of February 3, 2002, which established the mandatory payment in pesos of financial obligations originally contracted in foreign currency in the Argentine financial system. According to S&P, the pesification of local debt in US dollars with the Argentine banking system, mandated by the new central bank regulation, is considered a local and foreign currency selective default. "Although companies with substantial amounts of pesified debt might benefit initially, this intended benefit might be short- lived if inflation soars, because of the new CPI-type indexation mechanism for pesified debt, and if the new proposed tax on companies now indebted in pesos is implemented," said S&P credit analyst Lidia Polakovic. "For most Argentine corporates, S&P will consider this mandated pesification as a local and foreign currency selective default, as it implies a material change in the original terms of the financing," said S&P credit analyst Marta Castelli. By requiring the private sector to convert dollar obligations to peso obligations at a 1:1 exchange rate, compared with the current market rate of approximately 2.5 pesos per US dollar, the government is mandating debtors into what S&P considers a coercive debt exchange for 40 pct of the original principal in US dollar terms. While the pesification of domestic dollar loans intends to benefit Argentine companies' ability to meet their financial obligations, depending on their degree of exposure to the local financial system, among other things, S&P considers that this intended benefit will be eroded by the same government regulations that created it. If inflation soars and companies are not able to pass through these increases to prices -- specially regulated entities -- at the same pace that obligations are adjusted by the CER, then the potential benefits of pesification will vanish. REPSOL YPF: May Have To Sell More Assets To Reduce Debt ------------------------------------------------------- Repsol-YPF Chief Executive Officer Alfonso Cortina has already cut earnings and debt-reduction targets. The latest word is he may have to sell more assets in order to offset the company's plunging profit and to reduce the debt mountain, said analysts. Cortina took advantage of the lowest oil prices in a decade to buy Argentina's YPF for US$15 billion in 1999, assuring investors that the purchase would boost earnings and that Repsol would soon pay off the debt. But three years later, Europe's fifth-largest oil company is the most indebted of all major oil producers. Repsol is the worst performer in the 12-member European Oil and Gas Producers Index this year, trading at a 20 percent discount since the time when Cortina bought YPF. Earlier, Commerzbank analyst Doug Leggate expressed optimism that the Spanish oil company has significant prospects for recovery in 2002 despite a 57.8-percent drop in profits in 2001. Repsol-YPF completed EUR1.23 billion (US$1 billion) in divestitures last year, including part of its stake in the Edenor pipeline business in southern Argentina for some EUR200 million. Crucially, Repsol retains access to the pipeline. Commerzbank does not believe Repsol-YPF needs to sell core assets, because it does not perceive the company has a liquidity problem. They don't foresee any major budget cuts in the future either, unless the Argentine government takes the "unlikely" step of freezing oil prices, Leggate said. CONTACTS: REPSOL YPF Alfonso Cortina De Alcocer, Chairman & CEO Ramon Blanco Balin, Vice Chairman Carmelo De Las Morenas Lopez, CFO Their Address: Paseo de la Castellana 278 28046 Madrid, Spain Phone +34 91 348 81 00 Home Page: http://www.repsol.com or Av. Roque S enz Pe a, 777. C.P 1364. Buenos Aires Argentina COMMERZBANK AG Kaiserplatz 60261 Frankfurt am Main Germany Tel. (+49) 69 / 1362 0 Fax. (+49) 69 / 285389 URL: http://www.commerzbank.com/ E-mail: ir@commerzbank.com Contacts: Doug Leggate, Analyst TELECOM ARGENTINA: Parent Denies Sale Talk Rumors ------------------------------------------------- Telecom Italia SpA denied reports that it is negotiating the sale of its stake in Telecom Argentina Stet-France Telecom SA to Telefonos de Mexico SA, saying the reports are unfounded, relates AFX. Telecom Argentina is on the verge of collapsing and analysts are expecting the company to accomplish some targeted financial wrangling to avoid bankruptcy this year. Telecom Argentina, the country's largest corporate debtor, has been hard hit by the currency devaluation after being pegged to the dollar for a decade and is now in a precarious financial position. The Company's depositary receipts trade on the New York Stock Exchange and it also has bonds outstanding, making it a highly visible victim of the Argentine collapse. Last month, the Company quietly engaged Morgan Stanley as a restructuring adviser. Telecom Argentina must make about US$1.2 billion in debt payments this year - virtually all of it denominated in foreign currencies and owned by foreign banks or bond investors. Last year, the Company managed to postpone payment on a chunk of its US$3.3 billion in outstanding debt. But since January's default and devaluation, analysts say foreign banks are less willing to roll over debt, even for well-regarded companies such as Telecom Argentina. Bond investors seem even less likely to refinance payments of US$345 million this year. In Telecom Argentina's case, the bonds are not guaranteed by the parent companies, and analysts do not expect Telecom Italia or France Telecom to rescue their troubled unit. Among the most important issues determining the fate of Telecom Argentina will be the renegotiation of its charges with the government. Regulators must let it raise rates by enough to prevent bankruptcy, but avoid inflicting large price increases, especially as it fears fueling already-rising inflation. The government kicked off that process this week but a deal could be at least six months away. Worse for the Company, the cash- strapped government is considering slapping a "windfall tax" on the privatized utilities to pay for new social programs. CONTACT: TELECOM ARGENTINA STET - FRANCE TELECOM SA(TELECOM) Alicia Moreau de Justo 50 Buenos Aires 1107 Argentina Phone: +54 11 4968 4000 Home Page: http://www.telecom.com.ar Contact: Juan Carlos Masjoan, Chairman MORGAN STANLEY, DEAN WITTER & COMPANY 1585 Broadway New York, New York 10036 United States Phone: +1 212 761-4000 Home Page http://www.msdw.com Contacts: Philip J. Purcell, Chairman & Chief Executive Robert G. Scott, President & Chief Operating Officer ============= B E R M U D A ============= GLOBAL CROSSING: Johnson & Perkinson Files Class Action Suit ------------------------------------------------------------ Notice is hereby given that Johnson & Perkinson ("J&P") have filed a class action lawsuit in the U.S. District Court for the Southern District of New York on behalf of all acquirers of Global Crossing Ltd. ("Global") (NYSE: GX - news; OTC BB: GBLXQ - news) common stock during the period from February 1, 1999 through October 4, 2001, including a subclass of those who acquired Global stock in the September 28, 1999 merger between Frontier Corp. and Global. The Complaint asserts claims against Global officers and directors and Arthur Andersen LLP for violations of Sections 10(b), 14(a) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 and 14a-9 promulgated thereunder by the Securities and Exchange Commission and Sections 11 and 15(a) of the Securities Act, failure to disclose material adverse information and by artificially inflating the Company's reported results on its financial statements published during the Class Period, thereby causing plaintiff and other members of the Class to purchase or acquire Global common stock at artificially inflated prices. J&P has been retained by two families having collective losses of approximately $11 million. J&P notify others who suffered similar substantial losses by acquiring Global common stock pursuant to the merger which closed on September 28, 1999 between Global and Frontier, or through the purchase of Global common stock between February 1, 1999 and October 4, 2001, inclusive, that they may, no later than April 5, 2002, request the Court appoint them as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. J&P is a litigation boutique dedicated to maximizing shareholders' returns and keeping the lead plaintiffs apprized of the occurrences in the litigation. Attorneys Johnson and Perkinson are both former employees of the Securities and Exchange Commission ("SEC"). In particular, Mr. Johnson was an attorney with the enforcement division of the SEC from 1980-1985 and since that time, has primarily prosecuted complex class actions on behalf of plaintiffs in the areas of securities and consumer fraud. Based in South Burlington, Vermont, the firm has prosecuted leading actions on behalf of defrauded investors in numerous public companies resulting in the recovery of many millions of dollars. CONTACTS: JOHNSON & PERKINSON Dennis J. Johnson, Esquire Jacob B. Perkinson, Esquire 1690 Williston Road South Burlington, Vermont 05403 1-866-276-5446 JPLAW@adelphia.net GLOBAL CROSSING: Schoengold & Sporn Commence Fraud Class Action --------------------------------------------------------------- Schoengold & Sporn, P.C., specialists in securities class and shareholder derivative actions, has filed a securities fraud class action on behalf of all persons or institutions who acquired common shares of Global Crossing, Ltd. (NASDAQ: GBLXQ) - (news; "Global Crossing" or the "Company") between September 28, 1999 through and including October 4, 2001 (the "Class Period") at artificially inflated prices due to the defendants' materially false and misleading statements concerning its net income and inventories. The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the Class Period, thereby artificially inflating the price of Global Crossing common stock. Specifically, the complaint alleges that Global Crossing issued a series of statements concerning their businesses, financial results and operations which failed to disclose (i) that Global Crossing was experiencing declining demand for bandwidth; (ii) its operating performance was artificially inflated through erroneous accounting with other telecom companies; (iii) its managed network outsourcing services were declining; (iv) the company was operating at levels well below company- sponsored expectations, such that revenue projections were overstated and costs and expenses were understated; (v) individual defendants and certain Global Crossing insiders sold their personally held Global Crossing common stock generating more than $1.5 billion in proceeds; and (vi) the Company raised over $7 billion in debt and equity offerings. The Company issued announcements on October 4, 2001 overstating cash revenues and expected recurring adjusted EBITDA to be "less than $100 million," compared to forecasts of $400 million. As a result, Global Crossing's shares plummeted to $1.07 per share, a decline of 49%. The action is pending in the Western District of New York. CONTACTS: SCHOENGOLD & SPORN, P.C. Jay P. Saltzman, Esq Ashley Kim, Esq. 19 Fulton Street, Suite 406 New York, New York 10038 212-964-0046 GLOBAL CROSSING: KAB Seeks Details On Relationships, Bidders ------------------------------------------------------------ KAB Group, LLC, advisor to The Global Crossing Ltd. shareholders group that has bid for the company, served demands Wednesday in the company's bankruptcy case that Global Crossing provide within 30 days all it knows about any past or present relationships between company officers and directors and anybody associated with Hutchinson Whampoa Limited and Singapore Technologies Telemedia Pte. Ltd., the company's preferred bidders. Kennon A. Brennen, the managing partner of the KAB Group, commented: "We believe the shareholders who have built this company have been excluded from due consideration of their bid to get the company back on track. And we want to know why. Shareholders want and need an equal playing field and want the same opportunities afforded the preferred bidders." Among the demands made by KAB Group was that Global Crossing list "all individuals with knowledge of how HWL (Hutchinson Whampoa) and STT (Singapore Technologies Telemedia) were chosen to bid for the assets" of Global Crossing and "all documents relating to" the choice of HWL and STT. In addition, KAB asked for all documents on any other negotiations with potential investors. The shareholders' group has standing to request the documents and other information because KAB Group is one of only a few parties in the matter that filed timely objections to the company's proposed bidding procedures. In its initial objections, filed February 22, KAB Group asked Judge Robert E. Gerber to determine it to be a "qualified investor," allowing it to participate in the court's debtor's auction for the assets of Global Crossing. The group proposes warrant offerings totaling as much as $5.5 billion over three years to recapitalize the company and make creditors whole. Mr. Brennen noted that more than 20% of Global Crossing's 30,000 shareholders have already visited the Web site containing the shareholder group's filings and other information -- www.kabgroupllc.com -- and that shareholders representing millions of shares have joined the shareholders' group, with no financial obligation to themselves and no obligation to participate in any offering. CONTACTS: STERN & CO., NEW YORK Mark Perlgut Tel. 212-888-0044 Exts. 41 & 11 Email: mperlgut@sternco.com Stan Froelich Tel. 212-888-0044 Exts. 41 & 11 Email: sfroelich@sternco.com THE KAB GROUP, LLC 331 West 57th Street Suite 148 New York, NY 10019 Contacts: General Information Fax: (212) 956-7829 Email: kabgxsp@aol.com GLOBAL CROSSING: SEC Probes Into Deal With Adviser's Affiliate -------------------------------------------------------------- The Securities and Exchange Commission is now investigating a deal involving Global Crossing Ltd., and an affiliate of its bankruptcy adviser Blackstone Group. According to an article released by The New York Times, Global Crossing failed to disclose a complex communications capacity deal reached with a Blackstone affiliate several months before it filed for bankruptcy in January. Failure to disclose the earlier transaction raises questions about Global Crossing executives' intricate dealings and its business partners around the world as the Company headed toward bankruptcy, says The Times. Blackstone denied it had done anything wrong, while a Global Crossing spokeswoman said its relationship with Blackstone had focused only on its financial restructuring efforts. Blackstone originally got involved with Global Crossing last April through wireless communications company Centennial Communications Corp. Blackstone now controls 30 percent of Centennial. Blackstone's directors on Centennial's board voted for the capacity deal between Global Crossing and Centennial, according to a person close to the agreement. In a January filing with the SEC, Centennial said it had recently restructured its deal with Global Crossing. Global Crossing has yet to file its description of the transaction with the SEC, so it isn't clear how it characterized the restructured deal. However, the Company, in its May and August statements, said that it had entered into a multiyear agreement to sell US$150 million worth of capacity to Centennial. CONTACTS: GLOBAL CROSSING Press Contacts: Cynthia Artin +1 973 410-8421 Email: cynthia.artin@globalcrossing.com Becky Yeamans +1 973 410-8421 Email: rebecca.yeamans@globalcrossing.com Analysts/Investors Contact Ken Simril +1 310 385-5200 Email: investors@globalcrossing.com THE BLACKSTONE GROUP 345 Park Avenue New York, NY 10154 USA Phone: (212) 583-5000 Fax: (212) 583-5712 E-mail: info@blackstone.com Home Page: http://www.blackstone.com Contacts: Peter G. Peterson, Chairman Stephen A. Schwarzman, President/CEO Michael Puglisi, Chief Financial Officer =========== B R A Z I L =========== GLOBO CABO: Shares Continue To Slide As Concern Mounts ------------------------------------------------------ Globo Cabo, a leading local cable television operator, succumbed to more selling pressure following last week's announcement of a plan to issue stock to shareholders to help pay off debts and fund investments. The stock dropped 3.8 percent to BRL0.51, leaving it 37 percent weaker than where it began the year, as concerns about a planned US$430 million capital injection haunted the shares. Earlier this week, a Senate commission said it would call the president of Brazil's state-owned National Economic and Social Development Bank (BNDES), a Globo Cabo shareholder, to explain its role in the Globo Cabo deal. The BNDES commitment of BRL284 million has attracted questions on why a state-owned bank is helping bail out a media company ahead of elections. Traders have also been concerned by the conspicuously absent position of Microsoft, which owns 7.5 percent of Globo Cabo. So far, the company has not taken a position in the deal. Globo Cabo stock was among the worst performers of 2001 in percentage terms, tanking 62 percent as Brazil's economic slowdown robbed it of clients and its debt costs were magnified by the real's 16 percent depreciation over the 12 months. To see financial statements: http://bankrupt.com/misc/globo_cabo.pdf CONTACT: GLOBO CABO Investor Relations: Luis Henrique Martinez, +5511-5186-2684, lmartinez@globocabo.com.br Marcio Minoru, +5511-5186-2811, minoru@globocabo.com.br BNDES Main Office Av. Republica do Chile, 100 Rio de Janeiro - RJ Phone: (021) 2277-7447/6978 Home Page: http://www.bndes.gov.br/english/welcome.htm Contacts: Enterprise Information Center Main Office Av. Republica do Chile, 100 - 13 andar - Sala 1301 Tel.: (21)2277-8888 Fax: (21) 2220-2615 Email: contact@bndes.gov.br ========= C H I L E ========= MADECO: Announces Effects Of The Argentine Crisis On Results ------------------------------------------------------------ In an official company announcement, Madeco S.A. said that the difficult economic and political situation in Argentina has negatively impacted the Company, both financially and economically, as well as in equity terms. The losses arising from the Company's Argentine operations will be recognized in Madeco's individual and consolidated financial statements for the period ended December 31, 2001, and amounts to approximately Ch$ 17,780 million. The detail of the Argentine crisis' impact on the Company's consolidated results is as follows: DESCRIPTION APPROXIMATE AMOUNT (Ch$ MM) Translation losses from the Argentine subsidiaries 660 Severance payments and other restructuring expenses 4,660 Provision for valuation adjustments of fixed assets 11,100 Provision for valuation adjustments of other assets 1,360 Total additional charges for the fiscal year 2001 17,780 Madeco says it has recognized the extraordinary Ch$ 12,460 million valuation adjustment provisions for Argentine assets with the objective of reflecting the best estimate to date of the potential effects on the Company's assets to be derived from that country's financial crisis. Nevertheless, given the severity of the aforementioned situation, the Company's Argentine subsidiaries could have future effects in the value of its assets, its liabilities and its operations, in addition to those that have already been provisioned. CONTACTS: MADECO S.A. Investor Relations Ureta Cox 930, Santiago-Chile Voice: 56-2 5201380 Fax: 56-2 5201545 e-mail: ir@madeco.cl OR Oscar Ruiz-tagle Humeres, Chairman Albert Cussen Mackenna, CEO Santiago Edwards Morice, CFO Enrique S. Arangua, General Counsel Their Address: Ureta Cox 930 Santiago Chile Phone +56 2 520 1000 Home Page http://www.madeco.cl Subsidiary in Argentina: DECKER-INDELQUI Av. Juan XXIII 3630 (1832) Llavallol, Buenos Aires, Argentina Phone: 54-11-4003-0000 Fax: 54-11-4283-0282 E-mail: kramirez@decker-indelqui.com.ar ============= E C U A D O R ============= OLEODUCTO DE CRUDOS: S&P Lowers to 'BBB' on Repsol Concerns ----------------------------------------------------------- On March 19, 2002, Standard & Poor's lowered the rating on Oleoducto de Crudos Pesados (OCP) and its wholly owned subsidiary, Oleoducto de Crudos Pesados Ecuador S.A.'s (OCP SA) $900 million senior bank loan. The rating action followed the downgrade and credit deterioration of one of the largest sponsors of the consortium, Repsol-YPF, which has been lowered twice (from 'A-' to 'BBB+' on Nov. 15, 2001, and to 'BBB' on March 4, 2002). The outlook on Repsol-YPF is negative, implying that further credit deterioration is possible. The sponsors' creditworthiness is key to the OCP rating, because the project rating is based on several (but not joint) performance guarantees of the sponsors. The rating reflects the following risks: -- The risk of building and operating a project in Ecuador (CCC/Negative/C). Because of the political turmoil in Ecuador, the project's creditworthiness relies on the willingness and ability of the sponsors to satisfy their contractual payments under initial shipper transportation agreements (ISTA) and the related performance guarantee agreements. -- The risk that the debt maturity will come due after concessions on oil fields currently in production end. If future oil exploration in Ecuador proves to be disappointing, the economic incentive for the sponsors to honor its contractual obligations in later years could be substantially reduced. Notwithstanding, the probability of the sponsors not honoring its contractual obligation is reflected in the 'BBB' rating. These risks are mitigated by the following credit strengths: -- Substantially all of the operating and sovereign risks have been assumed by the sponsors through their several performance guarantee agreements. The sponsors are required to make ship-or- pay payments or advance tariff payments, even if the pipeline is never completed or is expropriated by the Ecuadorian government or the economic incentives decrease. -- The credit strength of the sponsors. All of the sponsors are rated 'BBB' or above, or are of solid investment-grade caliber, or have credit support for their obligation. In the case of Pecom Energ�a S.A. (Pecom) of Argentina, which is rated CCC+/Negative/- -, two standby LOCs have been obtained to support its financial commitment to the project from banks that are rated 'AA-' or higher. -- The financial strength of the project. Debt service coverage ratios based on the sponsors' ship-or-pay performance guarantees are strong, with minimum and average coverage of 1.65 times (x) and 1.68x, respectively. The project is resilient under stress scenarios, whereby coverage is at least 1.08x in a scenario where one of the three major sponsors defaults. The three major sponsors are Alberta Energy Co., BBB+/Watch Pos/- -, guaranteeing 28.95%; Repsol-YPF, BBB/Negative/--, guaranteeing 26.81%; and Perez Companc whose LOCs guarantee 21.45%. The three smaller sponsors (Occidental Petroleum, BBB/Stable/--; Agip, not rated; and Kerr McGee, BBB/Positive/--) could default simultaneously, and average coverage would still be acceptable at 1.15x. -- The importance of the project to the sponsors. The existing pipeline's capacity is constrained, and this project is necessary to monetize the sponsors' oil reserves. -- The sponsors are restricted from transferring their shipping interest and their requirements for providing guarantees to entities rated lower than 'BBB+' unless a ratings affirmation is obtained or they prepay their respective percentage of debt. So long as Pecom is not rated investment grade by Standard & Poor's, Pecom's commitment to maintain credit support in the form of LOCs issued by a bank that is rated at least 'A+', a guarantor with a rating of at least 'BBB+', or a rating affirmation is obtained for the use of a performance bond. Outlook The outlook reflects the current creditworthiness of the sponsors. Further deterioration of one of the major sponsors' creditworthiness could lead to a downgrade of OCP. Project Details The recent delays in construction due to the partial revocation of the environmental permits and the public demonstrations have no direct impact on the rating, because of the sponsors' obligation to make ship-or-pay payments. It is expected that damage restitution be completed by the start of summer, after the raining season is over, so that the Ministry may lift the temporary license suspension. The environmentalist demonstrations are expected to continue even after the environmental license is re-established and the project is complying with all Ecuadorian Regulations. Kerr McGee's intention to sell its 4% interest on the consortium should not affect the rating because of the sponsors' obligation to maintain its guarantee or make advanced tariff payments in the event that the buyer is of a lesser creditworthiness. Analyst: Santiago Carniado, Mexico City (52) 55-5279-2013; Jeffrey Wolinsky, CFA, New York (1) 212-438-2117 ============= J A M A I C A ============= KAISER ALUMINUM: Court Approves US$300 Mln DIP Financing -------------------------------------------------------- Kaiser Aluminum said Tuesday it has received final approval from the Bankruptcy Court for its US$300 million Debtor-in-Possession (DIP) financing. "The final approval of the DIP facility continues the momentum in Kaiser's restructuring process," said Jack A. Hockema, Kaiser's president and chief executive officer. "The addition of a committed credit line availability to our strong invested cash position will provide continued financial flexibility to address the needs of our customers, suppliers and employees as we move forward. Our focus is to deliver best-in- class products and services and to build a better company for all our constituencies," Hockema added. As of March 14, 2002, the Company had no cash borrowings and approximately US$51 million of letters of credit outstanding under the DIP facility. Earlier, a committee representing Kaiser Aluminum's unsecured creditors and U.S. Bank National Association, which serves as a trustee for US$397 million in senior notes issued by Kaiser unit Kaiser Aluminum & Chemical Corp., filed limited objections to some of the terms of the US$300-million debtor-in-possession loan. The issues in question were the amount of fees related to the loan with Bank of America N.A., along with guarantees that would be provided by two Kaiser affiliates that aren't in bankruptcy. Both objections questioned guarantees that would be provided to the DIP lenders by Kaiser affiliates Alpart Jamaica Inc. and Kaiser Jamaica Corp., which aren't in Chapter 11. When Kaiser filed for Chapter 11 on February 12, it asked the court to prohibit its noteholders from enforcing their guarantees against the Jamaican subsidiaries. Kaiser said moves against the Jamaican units, including a possible involuntary bankruptcy filing, could prevent the Company from getting materials it needed to meet customer needs. Kaiser Aluminum is a leading producer of alumina, primary aluminum and fabricated aluminum products. Its Chapter 11 filing listed assets of US$3.3 billion and debts of US$3.1 billion. To see Kaiser's financial statements: http://bankrupt.com/misc/KaiserAluminum.txt CONTACT: Kaiser Aluminum Corporation, Houston Scott Lamb, 713/267-3826 or Richard Tauberman, 713/267-3630 or Jamie Schwartz, 713/267-3630 =========== M E X I C O =========== ALFA SA: Shares Down 2.5% Following Hylsamex Default Rating ----------------------------------------------------------- Shares of Alfa SA, an industrial group with subsidiaries in auto parts, petrochemicals and steel plunged MXN0.37, or 2.5 percent, to MXN14.33. Standard & Poor's rating agency lowered the corporate credit rating of Alfa's steelmaker unit Hylsamex to "default" from "selective default" after it failed to make a $13.9 million coupon payment last week on its Eurobond amid low steel prices and sluggish U.S. demand. Hylsamex, Mexico's second-largest industrial group, has a 30-day grace period to make the US$13.9 million payment before it falls into default on the Eurobonds. "The Company doesn't have enough cash flow to make the payment," said Ricardo Sada, Hylsamex's treasurer. Hylsamex is expected to send a consent solicitation to holders of the Eurobonds sometime this week seeking to extend the maturity by three years to 2010 with a higher interest rate, Sada said without giving further details on the proposed terms. Bondholders holding at least US$1 more than US$150 million of the debt must agree to the proposal for it to be approved, Sada said. Credit Suisse First Boston Corp. is managing the request. The Company will be able to tap a US$40-million revolving bank loan and US$25 million of new capital from its parent Alfa SA if bondholders accept the agreement. In that event, they could make interest payments and move forward on an agreement reached with banks to stretch out payments on US$627 million in bank loans. CONTACTS: CREDIT SUISSE FIRST BOSTON New York-Headquarters 11 Madison Ave. New York, NY 10010 Phone: 212-325-2000 Fax: 212-325-8249 Home Page: http://www.csfb.com Contacts: Joe L. Roby, Senior Advisor John J. Mack, Vice Chairman and CEO Richard E. Thornburgh, Vice Chairman, Executive Board, CFO and Head of Support ANDERSEN: BDO In Talks To Buy Mexican Units ------------------------------------------- Chicago-based BDO Seidman revealed it was in talks over possibly buying some U.S. operations of tainted rival Andersen while another BDO arm has met with Andersen over its Mexican units, reports Reuters. BDO Seidman is the U.S. unit of global accounting group BDO International, which had $2.2 billion in revenues last year and also ranks sixth among accounting companies worldwide. BDO Seidman posted revenues of US$420 million last year and provides tax, assurance, financial advisory and consultant services. Andersen, also based in Chicago, is in talks with another accounting firm, KPMG, about selling its non-U.S. operations, in an attempt to break up the firm on its own terms. Another accountant group, Deloitte Touche Tohmatsu, reportedly is interested in buying Andersen's U.S. non-audit operations. Andersen is fighting for survival after it was indicted for allegedly obstructing justice by shredding documents related to its audit of collapsed energy trader Enron, which went bankrupt after using shadowy off-balance sheet deals to allegedly hide losses. The accounting firm pleaded "not guilty" in a court hearing on Wednesday to the charges. Andersen, the world's No. 5 accounting house, faces fines of up to US$500,000 and up to five years of probation if convicted of the felony charge, filed on March 14. GRUPO BITAL: Concludes US$400-Mln Capitalization Plan, Stage One --------------------------------------------------------------- Shareholders of Grupo Financiero Bital have approved a MXN974- million (US$107 million) capital increase, marking the completion of the first phase of the Mexican financial group's multi-tiered US$400 million capitalization plan. The approval will allow the bank to meet capitalization requirements related to its acquisition of intervened local bank Banco del Atlantico in March 2001, said Bital in a statement. According to Lehman Brothers banking analyst Juan Partida, the outlook for Bital completing its US$400 million capitalization program should be viewed as much more positive than what international credit rating agency Standard and Poor's has indicated. Partida said that the completion of the first round of the group's capitalization program and the ING deal bring a lot of life into an already strong franchise. The capital increase follows last week's events in which Dutch bank ING agreed to inject US$200 million into Bital in exchange for a 17.5 percent non-controlling stake in the Mexican bank. The US$107 million capital increase and the ING deal means that Bital needs only US$100 million to complete its capitalization program. Reports released last week suggested that Bital raising the remaining US$100 million was a long shot. S&P Mexico banking analyst Ursula Wilhem said that international funding has dried up for emerging market players such as Bital in the aftermath of the Enron accounting scandal. Bital, like many Mexican banks, was overwhelmed by debt after a catastrophic peso crash in 1994-95 caused interest rates to skyrocket and millions to default on their loans. Analysts estimate Bital has been undercapitalized by US$200 million to US$500 million. GRUPO BITAL: BBVA Upgrades Stock to "Buy" Recommendation -------------------------------------------------------- Expectations that Grupo Financiero Bital will complete its recapitalization program by mid-year drove BBVA Securities to upgrade its recommendation on Mexico's No. 5 financial group to `buy' from `hold.' Analyst Gustavo Turan, in his report, said: "We believe that, in the coming months, Bital will undergo what will become one of the most interesting Latin American financial sector investment turnarounds of the past couple of years." Turan said although low liquidity was a barrier for new investors to buy the stock, Bital management has identified several ways to increase the stock's liquidity in the months to come. GRUPO MEXICO: Strike Continues, Workers At Two Units Refuse Deal ---------------------------------------------------------------- Grupo Mexico SA, the world's third-largest copper producer, reached an agreement with miners to boost wages, ending a two- week strike that threatened to exacerbate the Company's financial condition. More than 4,000 workers at four units of Grupo Mexico walked out March 5, demanding that the Company raise its offer of a 5 percent salary increase to between 8 percent and 10 percent. Union officials said the strike shut down operations at the four units, including a copper mining, smelting and refining facility at La Caridad, Sonora, and zinc and other operations in Zacatecas, Coahuila and San Luis Potosi states. However, Consuelo Aguilar, spokeswoman for the National Mining and Metallurgic Union of the Mexican Republic, revealed that only workers at the plants in Coahuila and in San Luis Potosi agreed on a salary hike of 5.25 percent and 5.75 percent, respectively, and would return to work. Grupo Mexico had also agreed to pay the workers 50 percent of their salaries for the 16 days they were on strike, she said. Workers at the La Caridad plant decided to stay on strike while those at the Zacatecas plant had not yet taken a decision on continuing their strike action, Aguilar added. Workers at both plants rejected the company's pay offer. CONTACTS: GRUPO MEXICO S.A. DE C.V Avenida Baja California 200, Colonia Roma Sur 06760 Mexico, D.F. Mexico Phone: +52-55-5264-7775 Fax: +52-55-5264-7769 http://www.gmexico.com Contacts: German Larrea Mota-Velasco, Chairman & CEO Xavier Garcia de Quevedo Topete, President & COO GRUPO MEXICO: To Confront US$26 Mln Debt Payment Next Week ---------------------------------------------------------- Grupo Mexico, which is struggling to meet debt payments amid low prices for its base metals, faces a US$26-million debt payment next week. Grupo Mexico's outlook has worsened after a plunge in copper prices last year strained its finances and raised doubts over whether it would be able to meet its debt payments. Despite the negative conditions and challenges, the Company thus far, has managed to make all of its interest and principal payments. However, concern is growing that it will continue to avert serious financial trouble. Grupo Mexico has held talks since November with 16 banks to renegotiate a US$450 million loan taken out by its U.S. mining unit Asarco Inc. The bank loan became subject to early repayment after a decline in the value of assets linked to copper prices that backed the debt. The group also had to obtain two waivers in past months from note holders to free up its export revenue, which was put into a trust after certain covenants on the notes became effective when its credit rating was downgraded in November. CONTACTS: ASARCO, INC. 2575 E. Camelback Rd., Ste. 500 Phoenix, AZ 85016 Phone: 602-977-6500 Fax: 602-977-6701 Home Page: http://www.asarco.com Contacts: German Larea Mota-Velasco, Chairman & CEO Genaro Larrea Mota-Velasco, President Daniel Tellechea Salido, VP & CFO LASON INC.: Bankruptcy Judge Approves Disclosure Statement ---------------------------------------------------------- Lason, Inc. (OTC Bulletin Board: LSONQ) announced today that the U.S. Bankruptcy Court in the District of Delaware (the "Court") has approved its Disclosure Statement. The Court also authorized the Company to transmit its Disclosure Statement and Plan of Reorganization (the "Plan") and solicit votes from its creditors regarding such Plan. Ballots to vote on the Plan are expected to be mailed out to the Company's creditors, eligible for voting on its Plan, within the next week. The deadline for submitting such ballots has been set for 4:00 p.m. (EST) on April 15, 2002. The Company's Plan Confirmation Hearing is scheduled for 11:30 a.m. (EST) on April 30, 2002. "The approval of our Disclosure Statement is a tremendous achievement," stated Ronald D. Risher, president and chief executive officer. "We have continued to work through this process as quickly as possible, and this approval allows us to continue along our anticipated timeline. We worked very hard in negotiating our pre-arranged agreement regarding a plan of reorganization with our senior secured lenders and are proud of what we have accomplished thus far. We look forward to the Plan Confirmation Hearing." About the Company Lason, headquartered in Troy, Michigan, is a leading provider of integrated information management services, transforming data into effective business communication, through capturing, transforming and activating critical documents. Lason has operations in the United States, Canada, Mexico, India and the Caribbean. The Company currently has over 85 multi- functional imaging centers and operates over 60 facility management sites located on customers' premises. More information about Lason is available on its Web site at http://www.lason.com. CONTACT: Douglas S. Kearney of Lason, Inc., +1-248-597-5800 LASON INC.: Company Profile --------------------------- NAME: LASON INC. 1305 Stephenson Hwy. Troy, MI 48083 PHONE: 248.597.5800 FAX: 248.597.5810 E-MAIL: jjablonski@lason.com WEBSITE: http://www.lason.com EXECUTIVE MANAGEMENT TEAM: William Brooks, Chairman of the Board Ronald Risher, President & Chief Executive Officer Douglas Kearney, (Conway MacKenzie & Dunleavy) Interim CFO Michael Riley, EVP & Chief Marketing Officer Kenneth Shaw, Senior Vice President of Human Resources BOARD OF DIRECTORS: William Brooks, Chairman Of The Board Ronald Risher, President & CEO,Lason, Inc. Alan Nesbitt, Member INVESTOR RELATIONS: E-mail: investor@lason.com Mr. Douglas S. Kearney Interim Chief Financial Officer Phone: 248.597.5800 Fax: 248.597.5810 Email: dkearney@lason.com TYPE OF BUSINESS: The company offers a number of outsourced document and data management services, including on-site operation of copy centers, filing systems, and mailrooms, as well as database management, electronic document conversions, and print-on demand services. The company operates in the US, Canada, the Caribbean, and Mexico (it sold its UK operations in 2001). In addition, it maintains on-site operations at about 60 locations. SIC: Diversified Services - Miscellaneous Business Services EMPLOYEES: 10,300 (last reported count) ASSETS: $150.83 million (Q ended Sept. 30, 2001) SALES: $550.2M (as of February 5, 2002) DEBTS: $364.77 million (Q ended Sept. 30, 2001) PUBLIC SECURITIES: 19,995,570 Shares Of Common Stock, $.01 Par Value Were Outstanding As Of November 16, 2001 TRANSFER AGENT: EquiServe 50 Royall St. Canton MA 02021 Phone: 781-575-3150 Fax: 781-575-2816 EquiServe 525 Washington Boulevard Jersey City, NJ 07310 Phone: (201) 222-4293 Fax: (201) 222-4309 ================= V E N E Z U E L A ================= AES CORP: Venezuelan Unit To Pay Special US$59.4 Mln Dividend ------------------------------------------------------------- CA Electricidad de Caracas, AES Corp.'s Venezuelan unit, will pay a special US$59.4 million dividend, or US$0.019 (VEB17.50) a share, following approval by its shareholders, reports Bloomberg. The move is seen to help defray AES Corp.'s cost of buying the power provider in a US$1.66-billion hostile takeover two years ago. "The date of record will be set by the board," Electricidad spokesman Juan Azpurua said. The U.S. power company, which owns 87 percent of Electricidad, will receive US$51.7 million from the payment. AES continues to use special dividends to recover its cost of purchasing Electricidad last year. Since its takeover, Electricidad has agreed to pay about US$500 million in dividends. CONTACTS: AES Corporation Kenneth R. Woodcock Roger W. Sant, Chairman Dennis W. Bakke, President, CEO, and Director Barry J. Sharp, EVP Large Utilities, CFO, and COO THEIR ADDRESS: AES Corp. 1001 N. 19th St. Arlington, VA 22209 Phone: 703-522-1315 Fax: 703-528-4510 URL: http://www.aesc.com AES CORP: Remaining 5% CANTV Stake Sold to Undisclosed Buyer ------------------------------------------------------------ AES Corp. said it sold for US$91.5 million its stake of slightly more than 5 percent in Venezuela's leading telecommunications company CANTV. According to AES's Venezuelan unit, it sold nearly 7.2 million ADSs of CANTV in a single transaction, at a price of US$12.75 per ADS, for a total of US$91.5 million. The name of the buyer was not disclosed. "AES needed and wanted the money," said Alex Dalmady, managing director of research firm InvestAnalysis. "They were fed up" with CANTV's management as well. AES had complained that current CANTV management was not producing value for shareholders given the company's profitability. The sale comes just months after AES dropped its bid for CANTV after the Venezuelan company countered with a higher competing bid to shareholders. "We continue to have a small residual holding," CA Electricidad de Caracas spokesman Juan Azpurua said. AES acquired its stake in CANTV in 2000 when it acquired CA Electricidad in a US$1.66 billion hostile takeover bid. Electricidad acquired its shares in CANTV in 1991 for about US$300 million for a 6.4 percent stake. That stake was reduced last year during CANTV's share repurchase program. "EDC (and AES) got about $150 million back for their initial investment," Dalmady said. "It wasn't the best investment ever made." *********** 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 Ma. Cristina Canson, Editors. Copyright 2002. 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 * * *