/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/020409.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, April 9, 2002, Vol. 3, Issue 69 Headlines A R G E N T I N A CABLEVISION: Liberty Media Writes Off Investment, $195M Charge METROGAS: Defaults on Payment, Fitch Drops Rating to `DD' PEREZ COMPANC: Shareholders Make February Swap Terms Official PEREZ COMPANC: Goldman Analyst Lowers Rating on Default Concern TELECOM ARGENTINA: Creditor Negotiations Still Six Months Away B E R M U D A ANDERSEN: Offshore Insurer's Woes Aggravate Tenuous Condition GLOBAL CROSSING: L.A. Grand Jury Indicts Ex-employee GLOBAL CROSSING: Another Group Considers Biddding for Assets MUTUAL RISK: Authorities Appoint Review Team To Monitor Ops MUTUAL RISK: Expects Stock To Be Delisted From The NYSE MUTUAL RISK: A.M. Best Downgrades Subsidiaries' Ratings MUTUAL RISK: Regulators Step In, S&P Revises Subsidiaries To 'R' MUTUAL RISK: PA Insurance Department's Take Control of Subs B R A Z I L CVC/OPPORTUNITY EQUITY: Anatel Asset Takeover Looms Ahead M E X I C O ALFA: Shares Up On Optimism Unit May Restructure Debts BURLINGTON INDUSTRIES: Closing Mexican Unit If No Buyer Found CYDSA, S.A.: Successful $40M Restructuring Extends Notes to 2009 GRUPO BITAL: ING May Rethink Position Following SCH Stake Buy SAVIA: Favorable Science Journal Report Boosts Share Price TRIBASA: Court Orders Suspension of Debt Payments ZURICH AFORE: FCC Approves Sale To Principal Financial - - - - - - - - - - ================= A R G E N T I N A ================= CABLEVISION: Liberty Media Writes Off Investment, $195M Charge -------------------------------------------------------------- Liberty Media Corp. is throwing in the towel on Cablevision. The Colorado-based firm has officially written of its investment in Argentina's largest cable television system, says a report by Star-Telegram. According to its annual report filed with the Securities and Exchange Commission, Liberty Media took a charge of US$195 million to reflect a permanent decline in the value of its 50 percent interest in CableVision. Including operating losses and foreign currency translation losses, Liberty lost a total US$733 million last year on CableVision. That "reduced the carrying value of our investment to zero as of Dec. 31, 2001," Liberty said in its disclosure. Liberty's disclosures are indicative of the troubles of Dallas- based Hicks, Muse, Tate & Furst in Latin America, where the investment firm has seen several ventures hit the skids in recent months. Hicks, Muse owns the other half of CableVision. But Liberty's disclosures don't say how Hicks, Muse handled its accounting for CableVision. The partners could disagree on asset values. In February, credit ratings agency Standard & Poor's Corp. downgraded CableVision's ratings to D from CC/SD, after the Company failed to make a principal maturity payment on its US$100 million floating rate notes due February 15, 2002. At that time, the ratings agency revealed that CableVision has about US$70 million in revolving short-term bank lines and has to cover coupons for about US$6 million in March and about US$36 million in May. The Company has about US$865 million in debt, including the FRNs and US$624 million of rated bonds issued under a US$1.5-billion global medium-term note program. S&P contends that CableVision has an aggressive financial profile and a high financial burden, with increased refinancing risk. CONTACT: CABLEVISION Bondpland 1773 1414 Buenos Aires Argentina Tel: 54 11 47786060 Fax: 54 11 47741016 Home Page: www.cablevision.com.ar Contacts: Fabian To de Paul, President Investor relations E-mail: spena@cablevision.com.ar mpigretti@cablevision.com.ar LIBERTY MEDIA CORPORATION 12300 Liberty Blvd. Englewood, CO 80112 Phone: 720-875-5400 Fax: 720-875-7469 Home Page: http://www.libertymedia.com Contacts: John C. Malone, Chairman Robert R. Bennett, President, CEO, and Director Gary S. Howard, EVP, COO, and Director David J. A. Flowers, SVP and Treasurer HICKS, MUSE, TATE & FURST INCORPORATED 200 Crescent Ct., Ste. 1600 Dallas, TX 75201 Phone: 214-740-7300 Fax: 214-720-7888 Home Page: none Contacts: Thomas O. Hicks, Chairman and Chief Executive Officer Charles W. Tate, President John R. Muse, Chief Operating Officer Darron Ash, Chief Financial Officer METROGAS: Defaults on Payment, Fitch Drops Rating to `DD' --------------------------------------------------------- Fitch Ratings has downgraded the foreign and local currency ratings of MetroGas S.A. to 'DD' from 'C'. The rating action follows MetroGas' default on an interest payment under a US$100 million bond issuance on April 2, 2002. While the cure period on this security has not yet expired, the company stated on March 25, 2002, it intends not to pay any principal or interest service on all of its financial indebtedness. Thus, Fitch has downgraded to 'DD ' all of MetroGas rated debt. The company's decision follows the alteration of its concession agreement by the Argentine Public Emergency Law N. 25.561, which includes the suspension of tariff adjustments and the tariff's pesofication. These changes, combined with the devaluation impact, have materially affected the financial condition of MetroGas, given the mismatch between its income in pesos and its debt in hard currency, at an exchange rate of around Arg$3:US$1. The company's maturities in 2002 are US$5 million on April 1, 2002 (interest), US$1.6 million on May 7 (interest) and US$94.4 million in September (principal). At present MetroGas and other regulated market participants are renegotiating concession contracts with the Argentine government in the hope of recovering an all-too-illusive economic equilibrium. But every indication thus far says the outcome of negotiations is uncertain. Fitch does not believe that the negotiations will result in the immediate increase in tariffs necessary to compensate the combined impact of devaluation and pesofication of tariffs. Upon reaching an agreement with the government, MetroGas intends to develop and propose a debt-restructuring plan. For this purpose it has retained J.P. Morgan Securities Inc. and legal advisors under Argentine and New York Law. MetroGas is the largest of eight natural gas distribution companies. MetroGas is 70%-owned by Gas Argentino S.A., 10%-owned by employees and 20% is traded in the Buenos Aires Stock Exchange. Gas Argentino S.A. is a consortium composed by British Gas PLS (54.7%), and Repsol-YPF (45.3%). CONTACT: FITCH RATINGS Ana Paula Ares or Anabella Colombo Phone: +54 11 4327-2444 Buenos Aires Jason T. Todd Phone: 312/368-3217 (Chicago) or Alejandro Bertuol Phone: 212/908-0393 (New York) Media Relations: James Jockle Phone: 212/908-0547 (New York) METROGAS Alberto Alfredo Alvarez, President William Harvey Adamson, First VP Gen. Director Enrique Barruti, HR Director Fernando Aceiro New Bus. Director Luis Domenech Admin. and Fin. Director Their Address: G. Araoz de Lamadrid 1360 1267 Buenos Aires, Argentina Phone: (800) 422-2066 Fax: (201) 262-2541 Email: info@metrogas.com.ar PEREZ COMPANC: Shareholders Make February Swap Terms Official ------------------------------------------------------------- Perez Companc S.A. (Buenos Aires: PC; NYSE: PC) 98.21% shareholder of Pecom Energia S.A. (Buenos Aires: PECO) announced the a definitive and official approval for an asset swap transaction. According to a press release issued April 4, 2002 by Pecom Energ｛, the company's Regular Shareholders' Meeting held on April 3, 2002, approved the asset swap transaction consummated on February 26, 2002 among Pecom Energ｛, IRHE (Argentine Branch) and Gentisur S.A. (a company wholly owned by IRHE), related companies under the same controlling group. Pursuant to the terms of the transaction and with economic effects retroactive to January 1, 2002: a) Pecom Energia S.A. sells IRHE (Argentine Branch) and Gentisur S.A. its 50 % interest in Pecom Agra S.A. The value assigned by the parties to such interest transferred is US$30 million, accounting for a Ps. 57 million gain approximately that will be recognized in the first quarter of 2002 fiscal year. b) In turn, IRHE (Argentine Branch) and Gentisur S.A. transfer Pecom Energia S.A.: - 0.75 % interest in the Puesto Hernandez hydrocarbon UTE in the amount of US$ 4.5 million. - 7.5 % equity interest in Compania Inversora en Transmision Electrica CITELEC S.A. ("Citelec"), controlling company of Transener S.A., in the amount of US$ 15 million. - 9.187 % equity interest in Hidroneuquen S.A., a company holding 59 % of Hidroelectrica Piedra del Aguila S.A.'s capital stock, in the amount of US$ 5.5 million. The balance, totaling US$ 5 million, will be settled by means of an instrument having a maximum due date in October 2002 and bearing interest at six-month LIBOR plus a 3 % annual spread. These transactions enable Pecom Energia S.A. to optimize its asset portfolio by means of the incorporation of investments that strengthen its position in the energy sector and the divestiture of non-core assets. Consequently, Pecom Energia S.A.'s holdings in the Puesto Hernandez UTE and in Citelec increase to 38.45% and 49.99%, respectively. In addition, minority interest in Hidroneuquen S.A. will grant rights in the Pichi Picun Leufu Complex upstream dam. Pecom Energ｛ S.A., controlled by Perez Companc S.A., is the largest independently owned energy company in the Latin American region. Its business activities include oil and gas production and transportation, refining and petrochemicals, power generation, transmission and distribution as well as forestry activities. Headquartered in Buenos Aires, the Company has operations throughout Argentina, Brazil, Venezuela, Bolivia, Peru and Ecuador. CONTACT: PECOM ENERGIA S.A. DE PEREZ COMPANC S.A. Maipo 1 - Piso 22 - C1084ABA Buenos Aires, Argentina Phone: (54-11) 4344-6000 Fax: (54-11) 4344-6315 URL: http://www.pecom.com.ar PEREZ COMPANC: Goldman Analyst Lowers Rating on Default Concern --------------------------------------------------------------- Perez Companc SA, Latin America's largest independent energy producer, saw its shares fall 2.1 percent to MXN2.33 after Brian Singer, an analyst at Goldman, Sachs & Co. downgraded the Company to "market underperform" from "market perform." Investors are now getting apprehensive that Perez Companc may default on its debts, Leonardo Chavia, a senior analyst at consulting firm Delphos Investment, said earlier. However, spokesman Mario Grandinetti said last month that the Company would meet debt obligations this year. Grandinetti also disclosed that Perez Companc is in talks with creditors to refinance US$1.3 billion of debt due this year. Perez Companc owes US$270 million in international bonds, US$392 million in bank loans and US$348 million in trade finance. Another US$243 million is owed to domestic banks, analysts said. Analysts believe that Perez Companc may have to sell assets in order to finance these debts. The Company has about US$600 million in accounts outside Argentina to cover payments as the government maintains restrictions on bank transfers and the peso continues to weaken. TELECOM ARGENTINA: Creditor Negotiations Still Six Months Away -------------------------------------------------------------- Susana Malcorra, chief executive officer of Telecom Argentina- Stet France Telecom SA, Argentina's second-largest phone company, said she is at least six months away from starting to negotiate with creditors. The Company recently defaulted on a US$3.2- billion debt. Analysts believe that the restructuring will likely strip Telecom's two international shareholders -- France Telecom SA and Telecom Italia SA -- of most of their ownership. Less than three years ago, France Telecom and Telecom Italia spent US$530 million to increase their stakes in Telecom Argentina. Malcorra took over Telecom at a time when the firm had reported a decade of quarterly profits and rising sales. However, just recently, Telecom defaulted on US$3.2 billion of debt, citing the peso's devaluation as the primary reason behind the event. Argentina's devaluation in January -- which dropped the peso's value by more than 64 percent -- has cut gross domestic product by a third to about US$100 billion and thrown Telecom's expansion plans into disarray. The nation's monetary and currency instability makes it almost impossible for executives such as Malcorra to predict how they'll return to profitability, analysts said. Telecom invested US$9.3 billion over 11 years to build and upgrade telephone services designed for consumers in a country with per-capita income of more than US$7,000 a year. That income is near US$3,000 after the devaluation. The government, which is in default on US$95 billion of bonds and faces a fourth year of recession, has added to the Company's problems by prohibiting local rate increases for at least three months to stem inflation. CONTACT: TELECOM ARGENTINA STET - FRANCE TELECOM SA(TELECOM) Alicia Moreau de Justo 50, 10th Floor Capital Federal (1107) Repoblica Argentina Phone: +54 11 4968 4000 Home Page: http://www.telecom.com.ar Contacts: Alberto J. Ricciardi, Chief Financial Officer Elvira Lazzati, Finance Director Pedro Insussarry, Investor Relations Manager Phone: (5411) 4968-3626/3627 Fax: (5411) 4313-5842/3109 Email: inversores@intersrv.telecom.com.ar ============= B E R M U D A ============= ANDERSEN: Offshore Insurer's Woes Aggravate Tenuous Condition ------------------------------------------------------------- The embattled auditing firm Andersen may find it even harder to save itself from a collapse, according to a Knight-Ridder Business News article. Reports are emerging that Andersen owns an insurance company that is supposed to cover satellite firms, providing indemnity for sloppy auditing. The insurer in question is known as Professional Services Insurance Co. (PSI), based in the tax haven of Bermuda. The Bermuda-based insurer's solvency has been put into question after Andersen backtracked on an agreement last week to pay US$217 million through PSI to settle claims relating to an investment scam at the now-defunct Baptist Foundation of Arizona. The state of Arizona has subpoenaed Andersen requesting it to provide information about the firm's decision to pull out of the settlement. The Arizona Attorney General's subpoena, which was issued last Tuesday, also demands complete financial data on PSI, which according to news reports, was "technically insolvent" because of a delinquent US$100 million premium payment. Andersen has until Thursday evening to supply the information, said Pati Urias, a spokeswoman for the state Attorney General's office. GLOBAL CROSSING: L.A. Grand Jury Indicts Ex-employee ---------------------------------------------------- A Los Angeles grand jury on Friday indicted a former employee of Global Crossing Ltd. on nine counts of identity theft and threatening executives at the bankrupt Bermuda-based fiber-optic- network company, relates Dow Jones. The indictment, which was filed in the U.S. District Court for the Central District of California, names Steven William Sutcliffe, who worked in the technical support department of Global Crossing office in Beverly Hills until last year, when he was fired, rehired, and then fired again in September. The indictment charges Mr. Sutcliffe with four counts of making interstate threats against Gary Winnick, chairman of Global Crossing, and other employees. Mr. Sutcliffe allegedly posted threats to injure Mr. Winnick and others, on a Web site that he created, according to a copy of the indictment. Five other charges against Mr. Sutcliffe relate to identity fraud in which Social Security numbers for Mr. Winnick and upwards to 2,000 other current and former employees of Global Crossing were posted on his Web site, "evilgx.com." Thom Mrozek, a spokesman with the U.S. Attorney's Office in Los Angeles, said Mr. Sutcliffe faces up to a maximum of 20 years in prison if convicted on the charges of making the interstate threats and up to a total of 75 years for the five identity fraud charges. He also faces total fines of up to US$2.25 million, the spokesman added. Global Crossing provides telecommunications solutions over the world's first integrated global IP-based network, which reaches 27 countries and more than 200 major cities around the globe. Global Crossing serves many of the world's largest corporations, providing a full range of managed data and voice products and services. Global Crossing operates throughout the Americas and Europe, and provides services in Asia through its subsidiary, Asia Global Crossing. On January 28, 2002, Global Crossing and certain of its affiliates (excluding Asia Global Crossing and its subsidiaries) commenced Chapter 11 cases in the United States Bankruptcy Court for the Southern District of New York and coordinated proceedings in the Supreme Court of Bermuda. CONTACT: GLOBAL CROSSING Press Contacts: Becky Yeamans +1 973-410-5857 rebecca.yeamans@globalcrossing.com Cynthia Artin +1 973-410-8820 cynthia.artin@globalcrossing.com Analysts / Investors Contact: Ken Simril +1 310-385-5200 investors@globalcrossing.com GLOBAL CROSSING: Another Group Considers Biddding for Assets ------------------------------------------------------------ Global Crossing, the once highflying telecommunications company currently under Ch. 11 bankruptcy protection, is attracting more potential bidders. According to an article released by The New York Times, The Infonet Services Corporation and Silver Lake Partners, a Silicon Valley investment firm, are considering a joint bid with the Gores Technology Group for Global Crossing. According to people close to these companies, representatives from Gores, Infonet and Silver Lake are scheduled to meet with executives from Global Crossing at its headquarters in Madison, N.J., at the start of this week. While an official bid from the companies is not imminent, the Gores group does appear to be further along in analyzing Global Crossing's assets than others that have shown interest in bidding, according to sources. Gores has hired Skadden, Arps, Slate, Meagher & Flom, the big New York law firm that specializes in acquisitions and bankruptcies, as counsel for its study of a bid for Global Crossing. In addition to Gores, which is run by the billionaire investor Alec Gores, other financial firms like Platinum Equity, a Los Angeles investment company run by Alec's brother Tom, and the Texas Pacific Group, are also considering offers for Global Crossing. So far, the only other telecommunications companies that have shown firm interest in Global Crossing are Hutchison Whampoa and Singapore Technologies, which submitted a US$750 million bid concurrently with Global Crossing's bankruptcy filing. The Asian companies have repeatedly said that they would not sweeten their offer. The Hutchison group recently agreed to lower its breakup fee to US$30 million from US$40 million if it makes its letter of intent to buy Global Crossing into a formal agreement. It has until May 21 to formalize the offer. The Asian companies also agreed to extend the bidding period to 180 days, making it more feasible for Global Crossing to attract more suitors. Global Crossing could theoretically be auctioned by July, according to the timetable agreed upon by creditors and the Hutchison group. Even after this agreement, though, concern has grown that Global Crossing could fail to attract additional bidders and that its assets could be liquidated. These worries increased last week after Global Crossing was forced to scale back an agreement with one of its most important customers, Swift, a worldwide provider of messaging services to financial institutions. It is not clear how the Hutchison group will respond to strengthened interest in Global Crossing CONTACT: Skadden, Arps, Slate, Meagher & Flom New York Four Times Square New York, New York 10036 Telephone: 212.735.3000 Fax: 212.735.2000/1 Contact: Irene A. Sullivan MUTUAL RISK: Authorities Appoint Review Team To Monitor Ops ----------------------------------------------------------- Bermuda-based Mutual Risk Management Ltd., which is currently struggling amid mounting financial problems, is now under review by local authorities, says a report by BestWire. "The company has entered into an agreement with the Bermuda Monetary Authority under which the authority has appointed a review team to monitor the Company's business on an ongoing basis," Mutual Risk Management said in its 10-K filing with the U.S. Securities and Exchange Commission. Shelby Weldon, assistant director of insurance for the Bermuda Monetary Authority, said the authority is reviewing Mutual Risk Management. "We have taken steps to go in and review the operations of the Company," he said. "That review has not yet been completed." The Company's recent announcement that it had a net loss of US$99.2 million, or US$2.38 a share, for 2001, compared with a net loss in 2000 of US$5.6 million, or 13 cents a share. The announcement was followed by a number of events: -- The Company defaulted under the terms of its 9 3/8 percent convertible exchangeable debentures, its bank credit facility and its letter of credit facility. -- On March 21, the Company completed the sale of its fund administration business, principally Hemisphere Management Ltd., according to the 10-K. The proceeds of the sale, US$100 million after taxes and expenses, are being used to repay debt. This business had revenues of US$35.3 million and net income of US$7.9 million in 2001. -- On March 25, the Company appointed its controller, Angus H. Ayliffe, as chief financial officer, succeeding interim CFO James Kelly; -- A. Welford Tabor, Michael Esposito, Fiona Luck and K. Bruce Connell, all designated as directors by holders of the 9 3/8 percent bonds, resigned. An additional director, William Galtney, also resigned. As of Dec. 31, 2001, the Company had US$180 million of bank loans outstanding. In addition, there was US$156.9 million of outstanding debentures, including US$142.5 million of outstanding 9 3/8 percent debentures. CONTACT: MUTUAL RISK MANAGEMENT LTD. Robert A. Mulderig Angus H. Ayliffe or Investor Relations: Fran Tucker 800/772-0849 or 441/295-5688 or Media Contact: Joel Weiden, 212/515-1970 MUTUAL RISK: Expects Stock To Be Delisted From The NYSE ------------------------------------------------------- Mutual Risk Management, Ltd. announced Wednesday that it expects its common stock will be de-listed from the New York Stock Exchange. The insurance firm said that it is working with the appropriate parties to arrange for its shares to be quoted on the OTC Bulletin Board. The Company said that it will notify shareholders through a press release when it expects shares to begin trading on the OTC Bulletin Board. The shares will trade under a new ticker symbol "MLRM". The Company reiterated that management continues to evaluate strategic alternatives with its financial advisor, Greenhill & Co., LLC. The OTC Bulletin Board is a regulated quotation service that displays real-time quotes, last-sale prices and volume information in over-the-counter (OTC) equity securities. OTC Bulletin Board securities are traded by a community of registered market makers that enter quotes and trade reports. Mutual Risk Management Ltd. provides risk management services to clients in the United States, Canada and Europe seeking alternatives to traditional commercial insurance for certain of their risk exposures, as well as financial services to individuals and other companies. MUTUAL RISK: A.M. Best Downgrades Subsidiaries' Ratings ------------------------------------------------------- A.M. Best Co. has downgraded the financial strength rating to E (Under Regulatory Supervision) from B (Fair) for Legion Insurance Company and Villanova Insurance Company, Pennsylvania. The downgrade reflects the March 29, 2002, announcement by their ultimate parent company, Mutual Risk Management, Ltd. (NASDAQ: MM) that the Commonwealth Court of Pennsylvania has placed the insurance companies into voluntary rehabilitation. The order of rehabilitation is effective April 1, 2002. A.M. Best has also downgraded the financial strength rating to E (Under Regulatory Supervision) from B (Fair) for Legion Indemnity Company, Illinois, to reflect its affiliation with companies under regulatory supervision and the uncertainty regarding the status of its reinsurance recoverables from these affiliates. The three companies have operated under an intercompany reinsurance pooling arrangement since 1996. Additionally, they have operated as the fronting carriers for most of the Bermuda-based I.P.C. Group rent-a-captive programs. A.M. Best has also placed the B+ (Very Good) rating of I.P.C. Group, Bermuda, under review with negative implications pending discussions with management on the collateralized nature of its loss reserves, strategic alternatives including finding another quality fronting carrier and other related issues. For more information, see A.M. Best's Web site at www.ambest.com. CONTACT: A.M. BEST CO. Public Relations: Jim Peavy, 908/439-2200, ext. 5644 james.peavy@ambest.com or Rachelle Striegel, 908/439-2200, ext. 5378 rachelle.striegel@ambest.com or Analyst: Ralph Cagnetta, 908/439-2200, ext. 5211 ralph.cagnetta@ambest.com MUTUAL RISK: Regulators Step In, S&P Revises Subsidiaries To 'R' ---------------------------------------------------------------- Standard & Poor's revised its financial strength ratings on Legion Insurance Co. and Villanova Insurance Co. to 'R' because of a Pennsylvania State Court decision effective April 1, 2002, to place the companies under regulatory control. Standard & Poor's also said it lowered its financial strength rating on Legion Indemnity Co., the remaining pool member, to triple-'C' because it expects the company's regulators to consider a similar action. "Legion Insurance and Villanova Insurance have $1.3 billion of assets and continue to pay claims," said Standard & Poor's credit analyst Karole Dill Barkley. "Pennsylvania has not decided whether it will attempt to rehabilitate or liquidate the two companies." The ratings on Legion Indemnity Co. and Mutual Risk Management Ltd., the Bermuda-based holding company, remain on CreditWatch negative, where they were placed on Dec. 19, 2001. CONTACT: STANDARD & POOR'S Karole Dill Barkley, New York, 212/438-7167 MUTUAL RISK: PA Insurance Department's Take Control of Subs ----------------------------------------------------------- Pennsylvania Insurance Commissioner M. Diane Koken announced March 29 that the Commonwealth Court has granted her petitions for Orders of Rehabilitation for Legion Insurance Company and Villanova Insurance Company, both of Philadelphia. The companies will be in rehabilitation effective April 1. "We are taking these actions, with the consent of the companies, in an attempt to halt further financial deterioration of the insurance companies and to see that policyholders are protected," Commissioner Koken said. "The Orders of Rehabilitation give the Insurance Department statutory control of the companies, put numerous policyholder safeguards in place, and preserve the remaining assets of the companies." Legion Insurance Company and Villanova Insurance Company are headquartered in Philadelphia and are part of the Legion Insurance Group. Legion Insurance Group, which has $1.3 billion in admitted assets, is owned by Mutual Risk Management Ltd. (MRM), a publicly held holding company organized in Bermuda. The Legion Group transacts insurance business in all 50 states. The group writes mainly commercial insurance products, including workers' compensation, medical malpractice, general liability, group accident and health, and property coverages. A large portion of the group's business involves structuring self-insured programs for mid-sized corporations and associations. "The first order of business is to undertake a thorough, independent financial analysis of Legion Insurance Group," Commissioner Koken said. "This will determine if financial rehabilitation is feasible." CONTACT: Pennsylvania Insurance Department Melissa Fox or Rosanne Placey Tel. +1-717-787-3289 =========== B R A Z I L =========== CVC/OPPORTUNITY EQUITY: Anatel Asset Takeover Looms Ahead --------------------------------------------------------- The dissolution of CVC/Opportunity Equity Partners could mean the Brazilian telecom regulator Anatel will take over the telecom operators in which CVC/Opportunity has an equity stake, reports AFX. Anatel has formally asked Opportunity to provide information on a UK court decision against the head of the Opportunity investment bank, Daniel Dantas, and Citigroup Inc. On March 21, the House of Lords' Privy Council, allowed Luiz Roberto Demarco, a former business partner of Dantas, to request the dissolution of CVC/Opportunity Equity Partners Ltd, which is based in the Cayman Islands. Opportunity holds stakes in Brasil Telecom -- along with Telecom Italia SpA --, in Telemig Celular and in Amazonia Celular. According to an industry expert, Anatel's options include depriving the new owner of the stakes formerly held by Opportunity of its management rights, assuming direct control of the telecom ventures or revoking the concession granted to the operators. Demarco has 3.5 percent ownership of CVC/Opportunity Equity Partners. He has been trying to sell his stakes for three years but has failed to reach an agreement with Opportunity. CVC/Opportunity is a company organized with the specific purpose of investing in private equity opportunities in Brazil. CVC/Opportunity consists of an Offshore Investment Fund managed by an Offshore Management Company and an Onshore Brazilian based Investment Fund and managed by an Onshore Management Company. CONTACT: TELECOM ITALIA Registered Office: Piazza degli Affari n. 2 20123 Milano General Management and Secondary Office: Corso d'Italia 41 00198 Roma Phone: 0636881 Fax: 0636882965 Home Page: http://www.telecomitalia.it Contacts: Investor Relations: Phone: +39 06 36882381 +39 06 36883378 +39 06 36882119 TELEMIG CELULAR PARTICIPA?OES SCN Quadra 3, Bloco A, Sobreloja, Asa Norte 70713-000 Brasilia, D.F., Brazil Phone: +55-61-429-5600 Fax: +55-61-429-5626 Contacts: Gunnar Birger Vinof Vikberg, Chairman and CEO, Rene Pantoine, COO Joao Cox Neto, CFO and Head of Investor Relations BRASIL TELECOM Sia Sul, Asp, Lote D, Bloco B 71215-000 Bras︼ia, D.F., Brazil Phone: +55-61-415-1414 Fax: +55-61-415-1315 Contacts: Luis Octavio Carvalho da Motta Veiga, Chairman Henrique Sutton de Sousa Neves, CEO/Investor Relations Officer Paulo Pedrao Rio Branco, CFO =========== M E X I C O =========== ALFA: Shares Up On Optimism Unit May Restructure Debts ------------------------------------------------------ Shares of steel and petrochemical producer Alfa rose 5.4 percent to MXN17.20 Friday after climbing 6.7 percent the previous day, says Bloomberg. Investors are betting Hylsamex, Alfa's steel unit, will be able to restructure its liabilities with banks and bondholders, lifting a burden off the parent company. Hylsamex began a tender offer on March 25 to swap a 9 1/4 percent bond due 2007 into a 10 1/2 percent bond maturing in 2010 to reduce its debt-servicing burden. The offer expires April 11. To see Hylsamex's financial statement: http://bankrupt.com/misc/Hylsamex.doc CONTACT: HYLSAMEX Investor Relations Margarita Gutierrez E-Mail: mgutierrez@hylsamex.com.mx Ricardo Sada E-Mail: rsada@hylsamex.com.mx Phone: (52) 81 8865 1224 (52) 81 8865 1201 Munich 101, San Nicolas de los Garza N.L., 66452 Mexico BURLINGTON INDUSTRIES: Closing Mexican Unit If No Buyer Found ------------------------------------------------------------- Delores Sides, a Burlington Industries spokeswoman, announced that the Greensboro, N.C.-based company could close down its denim garment factory in Mexico should it fail to find a buyer over the next six months. The announcement came after the Company revealed it laid off more than half of the 816 workers at its Mississippi textile plant in preparation for shutting down by month's end. Burlington Industries, one of the largest textile companies in the U.S., filed for Chapter 11 bankruptcy protection Dec. 6 in the U.S. Bankruptcy Court in Wilmington, Del., listing assets of $1.2 billion and liabilities of $1.1 billion as of Sept. 29, 2001. The company attributed its problems to foreign imports and a slowdown in consumer spending. To see financial statements: http://bankrupt.com/misc/Burlington_Industries.txt CONTACT: BURLINGTON INDUSTRIES Ross Haymes, Manager of Investor Relations Burlington Industries, Inc. 3330 W. Friendly Ave. Greensboro, NC 27410-4800 Phone: 336-379-2000 Fax: 336-332-0815 AUDITOR: Ernst & Young LLP 21800 Oxnard Street, Suite 500 Woodland Hills, CA 91367 USA Telephone: 818-703-4848 www.ey.com DEBTORS' LEAD COUNSEL: David G. Heiman, Esq. Richard M. Cieri, Esq. Carl E. Black, Esq. JONES, DAY, REAVIS & POGUE North Point 901 Lakeside Avenue Cleveland, Ohio 44114 Telephone (216) 586-3939 Fax: (216) 579-0212 and Brett J. Berlin, Esq. JONES, DAY, REAVIS & POGUE 3500 SunTrust Plaza 303 Peachtree Street, N.E. Atlanta, Georgia 30308 Telephone (404) 521-3939 Fax (404) 581-8330 and Michelle Morgan Harner, Esq. JONES, DAY, REAVIS & POGUE 77 West Wacker, Suite 3500 Chicago, Illinois 60601 Telephone (312) 782-3939 Fax (312) 782-8585 DEBTORS' LOCAL COUNSEL: Daniel J. DeFranceschi, Esq. Paul N. Heath, Esq. RICHARDS, LAYTON & FINGER, P.A. One Rodney Square P.O. Box 551 Wilmington, Delaware 19899 Telephone (302) 658-6541 Fax (302) 651-7701 CYDSA, S.A.: Successful $40M Restructuring Extends Notes to 2009 ---------------------------------------------------------------- Cydsa, S.A. de C.V. announced Friday the passing of the extraordinary resolution by the requisite aggregate principal amount of notes held by eligible holders of its 9.375% notes due 2002 at its meeting of noteholders held at 3:00 p.m., London time, today, April 5, 2002. Shortly following the meeting, Cydsa entered into a supplemental trust deed adopting the amendments provided for in the extraordinary resolution, including the extension of the maturity of its notes from June 25, 2002 to June 25, 2009, as described in the Proxy Solicitation Statement and Offer to Purchase, dated January 25, 2002, as supplemented by a Supplement to Proxy Solicitation Statement and Offer to Purchase, dated March 19, 2002 (as supplemented, the "Statement"). Cydsa also announced that it has accepted for purchase and payment all notes validly tendered (and not withdrawn) prior to 12:00 Noon, New York City time, on Friday, April 5, 2002 (the "Offer Expiration Date") pursuant to its offer to purchase notes for cash. In that connection, Cydsa also announced that it has amended the tender offer to increase the principal amount of notes it is offering to purchase from U.S.$40,000,000 to U.S.$41,003,000. As of the Offer Expiration Date, based on information provided by the depositary for the tender offer, approximately U.S.$41,003,000 in aggregate principal amount of notes were validly tendered (and not withdrawn) to the depositary. The payment date for the notes accepted for payment in the tender offer is expected to be on or about Wednesday, April 10, 2002. Pursuant to the tender offer, noteholders whose notes are purchased pursuant to the tender offer will receive U.S.$520 per U.S.$1,000 principal amount of notes. In addition, noteholders will receive accrued and unpaid interest up to, but not including, the date of purchase. All notes purchased by Cydsa pursuant to the tender offer will be cancelled. In addition, eligible holders of record who delivered (and did not revoke) a duly executed proxy in favor of the extraordinary resolution as of 5:00 p.m., Wednesday, April 3, 2002 will receive a proxy fee of U.S.$15 per U.S.$1,000 principal amount of notes to which the proxy pertains. The payment date for the proxy fee is also expected to be on or about Wednesday, April 10, 2002. Cydsa's proxy solicitation and offer to purchase for cash was made upon the terms and conditions set forth in the Statement. Prior to the date hereof, Cydsa distributed to all holders of the notes a letter of eligibility requesting the holder to return a certification as to whether it is (1) a Qualified Institutional Buyer (as defined in Rule 144A under the United States Securities Act of 1933, as amended (the "Securities Act")), (2) not in the United States (as contemplated in Rule 903(a)(1) of Regulation S under the Securities Act) or (3) a dealer or other professional fiduciary organized, incorporated, or (if an individual) resident in the United States holding a discretionary account or similar account (other than an estate or trust) for the benefit or account of a non-U.S. person (as contemplated by Rule 903(a)(1) of Regulation S under the Securities Act). Only holders who have completed and returned the certification of eligibility ("eligible holders") were authorized to receive or review the Statement or to participate in the proxy solicitation and the tender offer made thereby. To see latest balance sheet: http://bankrupt.com/misc/CYDSA.pdf CONTACT: CYDSA, S.A. DE C.V., IN MEXICO Jesus Montemayor, Treasury Director +011-528-18-152-4585 E-mail: jmontemayor@cydsa.com GRUPO BITAL: ING May Rethink Position Following SCH Stake Buy ------------------------------------------------------------- Santander Central Hispano SA's (SCH) purchase of an additional stake in Grupo Financiero Bital SA may force Amsterdam-based ING Groep to rethink its investment in the Mexican bank. The recent transaction is pushing the Dutch group toward becoming a minority shareholder with less voting power, said Standard and Poor's analyst Ursula Wilheim. "This must be giving ING a major headache," Wilheim said, indicating that the move could be a bid on Santander's part to increase its stake in the Mexican banking sector, or to improve its investment portfolio. ING paid US$200 million last month to acquire its stake in Bital as part of a capital increase aimed at raising cash needed to acquire the failed Banco del Atlantico SA. ING also maintains an insurance joint venture with Bital. On Wednesday, Portugal's Banco Comercial Portugues SA (BPC) said it had sold its 8.3 percent stake in Bital, together with 66.7 million convertible bonds, to SCH for US$85 million. The convertible bonds translate into an additional 5 percent stake in Bital, raising SCH's total stake to 13 percent. SCH's position has voting rights for 15 percent of Bital's share capital. SCH already held a 13.3-percent stake in Bital with 15 percent voting rights. So now, the Spanish banking giant effectively controls 30 percent of the voting rights for Bital, Mexico's fourth-largest financial institution. CONTACT: GRUPO FINANCIERO BITAL Paseo De La Reforma No. 243, Cuauhtemoc, 06500, Mexico ,D.F. Phone: 57.21.52.86 Fax: 57.21.57.83 Home Page: www.bital.com.mx Contact: Investor Relations Act. Ricardo Garza Galindo Salazar Phone: 57.21.26.40 Fax:57.21.26.26 E-mail: ricaggs@bital.com.mx BANCO COMERCIAL PORTUGUES Miguel Duarte +35-121-321-1081; CITIGATE DEWE ROGERSON FOR (BPC) Patrick Hughes or Paul Hebert +1 212-688-6840 SANTANDER CENTRAL HISPANO S.A. Plaza de Canalejas, 1 28014 Madrid, Spain Phone: +34-91-558-10-31 Fax: +34-91-552-66-70 Home Page: http://www.bsch.es Contacts: Emilio Botin-Sanz, Chairman Ana Patricia Botin, Chairman, Banesto Alfredo Saenz, CEO, Chairman BSN, Banif, Deputy Chairman SCH Investment Jose Luis del Valle, EVP Finance ING GROEP N.V. Strawinskylaan 2631 1077 ZZ Amsterdam, The Netherlands Phone: +31-20-541-54-11 Fax: +31-20-541-54-44 Home Page: http://www.ing.com Contacts: Ewald Kist, Chairman Cees Maas, Chief Financial Officer SAVIA: Favorable Science Journal Report Boosts Share Price ---------------------------------------------------------- Shares of the embattled conglomerate Savia SA, the world's largest vegetable-seed producer, climbed 8.2 percent to MXN3.56 Friday following a 9.3 percent gain on the previous day, reports Bloomberg. The stock got a shot in the arm from an article in the science journal Nature that disputed an early report in the same journal that said genetically modified corn was growing in southern Mexico even though the Mexican government has banned it. Seminis, Savia's seed unit, stock values have plunged to US$1.26 a share now from US$15 in June 29, 1999 when the company sold shares to the public for the first time because of concerns over resistance to genetically engineered seeds. Savia, through its subsidiaries Seminis and Bionova, produces and markets seeds for fruits and vegetables. The Company is also a principal distributor of fresh fruits and vegetables in North America. Its operations extend to 120 countries and employ nearly 8,000. Annual sales are approximately US$800 million (U.S.) To see financial statements: http://bankrupt.com/misc/Savia.txt CONTACTS: SAVIA S.A. DE C.V. Investor Relations: Francisco Garza Tel. +52-818-173-5500 Fax. +52-818-173-5508 Email: fjgarza@savia.com.mx Media Relations: Francisco del Cueto Tel. +52-555-662-3198 Fax. +52-555-662-8544 Email: delcueto@mail.internet.com.mx TRIBASA: Court Orders Suspension of Debt Payments ------------------------------------------------- Mexican construction firm Tribasa informed the Mexican Stock Exchange that on March 26, a judge ordered it "to suspend payment on obligations contracted prior to the date of notification of the ruling, except in relation to the payments, which are indispensable for ordinary operation," says EFE. Moreover, the judge ordered the firm to continue meeting its payroll and to pay taxes and social security contributions after previously notifying the court. The judge's orders came after Banco del Atlantico bank, Bank of America and BBVA Bancomer petitioned the court to call a creditors meeting, and Tribasa was granted 185 days in which to consolidate its debts and negotiate settlements with its creditors. Failure to meet obligations by the end of this period will result in bankruptcy proceedings for Tribasa. Tribasa is a civil engineering firm specializing in building large-scale public works and industrial plants. The Company was one of the beneficiaries of the government's so- called "highway bailout" plan, which was aimed at saving companies that had built and operated toll roads that turned out to be unprofitable. At the end of February, Tribasa's principal subsidiary, Triturados Basalticos y Derivados, was declared bankrupt with liabilities totaling MXN6.4 billion (US$709.0 million). CONTACT: GRUPO TRIBASA, S.A. DE C.V. Bosque de Cidros No. 173, Bosques de las Lomas 05120 Mexico, D.F., Mexico Phone: +52-55-5229-7400 Fax: +52-55-5229-7430 E-mail: tribasa@tribasa.com.mx Home Page: http://www.tribasa.com.mx Contacts: David Sandoval, Chairman and President Salvador Linares, Chief Executive Officer Adriana De Penaloza, Vice Chairman Fernando Ochoa, Corp. Director of Construction Gustavo Carbajal, Corp. Director of Admin. and Control ZURICH AFORE: FCC Approves Sale To Principal Financial ------------------------------------------------------ Principal Financial Group's purchase of Zurich Afore S.A. de C.V., Zurich Financial Services Group's private pension operation in Mexico, has already been approved by the Federal Competition Commission and the deal should close in June, according to a report by Mexico City daily el Economista. Credit Suisse First Boston advised the Principal Financial Group on the transaction. Zurich Afore will merge with the Mexican pension fund business of The Principal(R), Principal Afore S.A. de C.V. Zurich Afore currently serves more than 800,000 private pension customers, while Principal Afore's business serves nearly 1.4 million customers. Embattled Zurich Financial Services has a three-year-in-the- making project that's sitting idly in a Zurich Financial data center. The ambitious project, which is part of the US$1-billion dream of CEO Rolf Hueppi to turn the company into an "e-business powerhouse," has already gobbled up US$250 million and is now deemed a "white elephant" with little or no use at all. This latest transaction brings to two the number of failed projects included in Mr. Hueppi's so-called dream. The company declined to say whether it would write down the exchange project, reiterating its December forecast for the group that it would write down investments totaling US$900 million in 2001, including US$100 million in private equity investments. Zurich reported a US$387 million loss for 2001. Hueppi said earlier he'd step down as CEO by mid-year, though he will remain on as chairman. CONTACT: The Principal Financial Group, Des Moines Media Contacts: Sheila Streicher, 515/247-6639 streicher.sheila@principal.com or Terri Shell, 515/283-8858 shell.terri@principal.com or Investor Relations: John Effrein, 515/235-9500 investor-relations@principal.com CREDIT SUISSE GROUP P.O. Box 1 CH-8070 Z�rich Tel. +41 (1) 212 16 16 Fax. +41 (1) 333 25 87 Contact: Lukas Muehlemann, chairman & CEO *********** 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. 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