/raid1/www/Hosts/bankrupt/TCRLA_Public/020621.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, June 21, 2002, Vol. 3, Issue 122
Headlines
* A R G E N T I N A *
ARGENTINE BANKS: Govt. Lifts Banking Freeze
GRUPO GALICIA: Shares Soar on Expectations Unit May Find Partner
IMPSAT FIBER: Wishes to Maintain Existing Cash Management System
LA LACTEO: Parent Decides Calling in Receivers on Failure to Sell
METRORED TELECOM: Three Firms Eyeing Operations
* B E R M U D A *
GLOBAL CROSSING: Techtel Argentina to Provide Int'l. Voice
Service
GLOBAL CROSSING: Analyst Case Relates to Pending Litigation
* B R A Z I L *
AES CORP: S&P Views CEO Change as Neutral for Credit
AES CORP: May Sell South American Assets to Help Boost Liquidity
AES CORP.: Analyst Urges Investors to Shun Stock
BRAZILIAN COMPANIES: Facing Difficult Financing Environment
ORGANIZACOES GLOBO: To Sell Shares to Investors to Pay Down Debt
TELEFONICA SA: May Need More Money to Finance Brazilian Debt
* C H I L E *
ENERSIS: Reveals US$600M LatAm Investment Plan for 2002
MADECO: To Boost Capital Pending Shareholders' Approval
* M E X I C O *
HYLSAMEX: Parent to Reduce Ownership
SANLUIS CORPORACION: Closes Sale of Mining Unit to Canadian Firm
* P A R A G U A Y *
BANCO ALEMAN: Operations Return to Normal
* P E R U *
SIMSA: To Submit Restructuring Plan to Creditors for Approval
=================
A R G E N T I N A
=================
ARGENTINE BANKS: Govt. Lifts Banking Freeze
-------------------------------------------
The Argentine government lifted its banking freeze Tuesday,
converting depositors' money into bonds. The move was part of the
condition satisfied to obtain an emergency loan from the
International Monetary Fund (IMF).
Although the decision encountered widespread public criticism,
the government insisted on the scheme as it is sees it as the
only way to re-open banks without risking a collapse in the
banking system.
Under the government's bond plans, account holders has the option
to either withdraw their deposits over a period of five years in
pesos, even if their deposits are in U.S. dollars; or wait ten
years to receive the account in dollars. Analysts say that either
way, depositors will not get the full value of their money.
The bond plans also vary from bank to bank and have certain
conditions. Frozen deposits in Argentina's bank are estimated at
US$22.5 billion.
The Argentine government passed the banking freeze six months ago
in order to prevent a run on the banks, which could lead to a
total financial breakdown in the banking system.
GRUPO GALICIA: Shares Soar on Expectations Unit May Find Partner
----------------------------------------------------------------
Speculations that Banco de Galicia y Buenos Aires SA may soon
find a foreign partner pushed the shares of its holding company
to as high as 21%, to 15 centavos (4 U.S. cents), from 12
centavos Tuesday, reports Bloomberg.
Grupo Financiero Galicia SA has seen its shares fall 90% in the
past 12 months.
"There are expectations in the market of new partner that will
capitalize the bank," said Rafael Ber, an analyst at Argentine
Research in Buenos Aires. "Galicia is in a deadly situation and
could rebound if it found foreign partners."
Galicia, which stopped paying its international debts last month,
has been negotiating since February with a group of international
creditors including J.P. Morgan Chase & Co. and Barclays Plc.
Galicia's American depositary receipts jumped 42%, or 10 cents,
to 34 cents after gaining as much as 67%.
CONTACT: GRUPO FINANCIERO GALICIA S.A.
Teniente General Juan D. Per>n 456, Piso 3
1038 Buenos Aires, Argentina
Phone: (54 11) 4343 7528 / 9475
Home Page: http://www.gfgsa.com
Contacts:
Eduardo J. Escasany, Chairman and CEO
Sergio Grinenco, CFO, Banco de Galicia y Buenos Aires
BANCO DE GALICIA Y BUENOS AIRES S.A., HEAD OFFICE
Tte. Gral Juan D. Peron 407
1038 Buenos Aires, Argentina
Phone: +54-11-6329-0000
Fax: +54-11-6329-6100
Home Page: http://www.bancogalicia.com.ar
IMPSAT FIBER: Wishes to Maintain Existing Cash Management System
----------------------------------------------------------------
IMPSAT Fiber Networks, Inc. asks the U.S. Bankruptcy Court for
the Southern District of New York to maintain existing bank
accounts, continue to use its existing cash management system,
and continue to use existing business forms.
The Debtor seeks a waiver of the United States Trustee's
requirement that the Bank Accounts be closed and that new
postpetition bank accounts be opened. The Debtor believes that
such requirements could cause significant and unnecessary
disruption in the their businesses.
The Debtor point out that its Bank Accounts are part of a
carefully constructed Cash Management System that ensures the its
ability to efficiently monitor and control all of its cash
receipts and disbursements. It is important that the Debtor gets
permission to maintain its existing Bank Accounts and, if
necessary, open new accounts, wherever they are needed,
irrespective of whether such banks are designated depositaries in
the Southern District of New York.
The Debtor also seek an order authorizing it to continue using
all Business Forms existing immediately prior to the Petition
Date, without reference to the Debtor's status as debtor in
possession, and its centralized cash management system in the
operation of its business. The Debtor asserts that the basic
structure of the cash management system it has described to the
Court constitutes its ordinary, usual, and essential business
practices.
Impsat Fiber, a provider of broadband Internet, data, and voice
services in Latin America, filed for chapter 11 protection on
June 11, 2002. Anthony D. Boccanfuso, Esq., and Michael J.
Canning, Esq. at Arnold & Porter represent the Debtor in its
restructuring efforts. When the Company filed for protection from
its creditors, it listed $667,189,368 in total assets and
$1,334,732,793 in total debts.
LA LACTEO: Parent Decides Calling in Receivers on Failure to Sell
-----------------------------------------------------------------
Argentine holding company Macri group decided to call in the
receivers of its unit, La Laceteo dairy company, whose debts were
not specified.
The move follows the holding company's failure to sell the dairy
company, which it acquired in 1997, incorporating the Italian
company Yomo as a partner with 50% of the share package and the
promise of a US$10-million investment.
However, in early 2000, Yomo decided to leave the business
prompting Macri to sell the company and to just concentrate on
its food business in Brazil.
CONTACT: LA LACTEO S.A.
Camino Capilla del los Remedios
Km. 5 (5020) Ferreyra
Csrdoba - Argentina
Phone: (0351)4976010
Fax: +54 351 4978255
E-mail: lalacteo@lalacteo.com
Home Page: www.lalacteo.com
Contact:
Joaquin Mehrwaldt, General Manager
Tel: (54351) 4976010
Fax: (54351) 4976010
METRORED TELECOM: Three Firms Eyeing Operations
-----------------------------------------------
Three companies are now in the run for the acquisition of the
Argentine operations of regional corporate communications
provider Metrored Telecom.
These companies, Business News Americas reveals, include Datco,
Iplan and Techtel.
Expansion-hungry Datco could be expected to make a strong bid for
Metrored. After obtaining Velocom Argentina and Winstar in the
fourth
quarter of 2001, Datco acted on the local market again last week,
acquiring the Argentine subsidiary of Via Networks in an equity
transaction.
Iplan is another company that could take control of Metrored. The
Argentine broadband communications provider is backed by US$500
million of financing from its creditors. Iplan CEO Pablo Saubidet
confirmed that his company is in talks with Metrored.
A Techtel spokesperson also confirmed that the company, which is
partly owned by regional holding America Movil, is in talks with
Metrored over its interest in the failed company. However, the
spokesperson declined to provide further details.
The news regarding the companies' interest in acquiring Metrored
contradicts reports at the beginning of the month that Metrored
was on the verge of an agreement allowing its main creditors - US
bank Bankboston and Spanish bank SCH - to take control of
Metrored Argentina.
According to unnamed sources close to the talks, negotiations
were expected to close this week.
In a May 24 statement, Metrored said it was placing its business
focus on Brazil, after filing for bankruptcy protection for its
Argentine operations, where it invested more than US$170mn in
since launching operations in 1997. The Chas a 300km metropolitan
fiber network and two Internet Data Centers (IDCs) in Buenos
Aires. At the launch of its second IDC in November 2001, Metrored
Argentina reported having more than 400 corporate clients.
CONTACT: METRORED TELECOMUNICACIONES
Paseo Col>n 746
Piso 4 (C1063ACU)
Buenos Aires
Argentina
Phone: (5411) 4876-7700
Fax: (5411) 4876-7767
Home Page: metrored@metrored.com.ar
CONTACT: IPLAN NETWORKS-NSS S.A
Reconquista 865 - C1003ABQ,
Buenos Aires
Phone: (54-11)5031-6300
Fax: (54-11)5031-6301
E-mail: info@iplan.com.ar
Home Page: http://www.iplan.com.ar/
Contact:
Armando Silberman, President
Fernando Devesa, Director
Franco Cecchini, Director
DATCO S.A.
Viamonte 1755 (1000)
Buenos Aires, Argentina
Phone: (54-11) 4812-1200
Fax: (54-11) 4814-3682
Home Page: http://www.datco.com.ar
Contact:
Guillan Robert, President
Horacio Martinez, Founding partner
TECHTEL S.A.
Bernardo de Irigoyen 722
(1072) Buenos Aires
Repzblica Argentina
Phone: 54 11 4340 7620
Fax: 54 11 4340 7625
E-mail: mregunaga@techtel.com.ar
Home Page: http://www.techtel.com.ar
CREDITORS:
BANKBOSTON
Headquarters
Fleetboston
P.O. Box 2016
100 Federal St.
MA BOS 01-08-04
Boston, MA 02106-2016
S.W.I.F.T : FNBB US 33
Telex: 4996527 Boston KBBSN
Home Page: http://www.bankboston.com.ar/
BANKBOSTON-ARGENTINA
Florida 99
1005 Buenos Aires
Argentina
Phone: 54-(11)-4820-2000
Fax: 54-(11)-4820-3200
Home Page: http://www.bankboston.com.ar/
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:
Ana P. Botn, Chairman, Banesto
Emilio Botn-Sanz, Chairman
Francisco G. Rold n, Financial Division General Manager
Investor Relations:
Phone: + 34.91.558.13.69
+ 34.91.558.10.05
Fax: + 34.91. 558.14.53
+ 34.91.522.66.70
=============
B E R M U D A
=============
GLOBAL CROSSING: Techtel Argentina to Provide Int'l. Voice Service
-----------------------------------------------------------------
Global Crossing announced Tuesday that it is providing Techtel
Argentina with international voice services, connecting Techtel
customers in Argentina to the United States, Europe and Latin
America, under an agreement signed earlier this year. The new
service will enable Techtel Argentina to transport and terminate
voice traffic on Global Crossing's global IP-based fiber-optic
network.
"Our diversified portfolio of IP-based services offers customers
the most advanced and reliable data and voice products available
anywhere in the world," said Jose Antonio Rios, international
president of Global Crossing. "Our Carrier Outbound Service, a
high-quality product that specifically targets wholesale telecom
customers, is an important part of our strategy to solidify the
company's market position in Latin America and the Caribbean."
John Legere, chief executive officer of Global Crossing added,
"We are very pleased to count Techtel as one of our customers, a
company that links all of the major cities in Argentina. Our
global voice network, which now carries more than 4 billion
minutes of voice each month, with an average of 15-20% of that
over IP, continues to grow as we add new customers and steadily
increase business with our existing customers."
Global Crossing's Carrier Outbound Service, which is available in
more than 450 destinations throughout the Americas, Europe and
Asia, provides complete global termination capabilities for
facilities-based carriers.
"All of our customers know and are familiar with Global
Crossing's state of the art technology and high quality of
services standard," said Hector Masoero, Executive President,
Techtel.
ABOUT GLOBAL CROSSING
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.
ABOUT TECHTEL CORPORATION
Techint Organization established Techtel in 1997 with the aim of
transmitting data, Internet, corporate voice and video with
wireless technology through the 10.5 and 28 GHZ frequencies that
were granted by The Communications Secretary of Argentina.
During the year 2000, Techtel made a Strategic Agreement with
America Movil, the international business unit of Telmex
(Telefonos de Mexico) to add forces in the deregulation process
of the Argentine telecommunications market. Telmex, the major
telephonic operator of Mexico in expansion in Latin America, has
more than 13,5 million phone lines, 100.000 data links, more than
900.000 internet subscribers and 5,6 million added value services
over local lines (call waiting, three way call, call transfer,
mail box). Telmex is currently positioned as the regional market
leader in Telecommunications, with presence in Ecuador, Honduras,
Guatemala, Brazil, Puerto Rico, Uruguay, Venezuela and The United
States.
After the agreement with America Movil, Techtel increased its
capital in 125 million dollars and foresees an investment of 400
million dollars for the next five years.
Techtel owns an Interurban Fiber Optic Network of more than 4.000
km. This Network links the most important cities of the country:
Buenos Aires, La Plata, Rosario, Cordoba, Mendoza, Neuquen, Mar
del Plata, Bahia Blanca and more than 60 medium size cities, that
represent more than the 80% of the population of Argentina.
Techtel offers tailor made telecommunications products that suit
the client's requirements, with the best cost benefit trade off.
CONTACT: GLOBAL CROSSING
Media: (Latin America)
Kendra Langlie
Tel. +1-305-808-5912
Email: kendra.langlie@globalcrossing.com
Alejandra Fehrmman of ZCM Argentina
Tel. + 5411-4327-9400, ext. 305
Email: alef@zcm.com.ar
Investors: Ken Simril of Global Crossing
Tel. +1-310-385-3838
Email: investors@globalcrossing.com
GLOBAL CROSSING: Analyst Case Relates to Pending Litigation
-----------------------------------------------------------
Wolf Haldenstein Adler Freeman & Herz LLP announces that class
action lawsuits in the United States District Court for the
Southern District of New York on behalf of purchasers of Global
Crossing Ltd. ("Global Crossing" or the "Company") (NYSE: GX)
common stock between June 15, 1999 and November 10, 2001 (the
"Class Period"), inclusive, against Salomon Smith Barney, Inc.
("Salomon") and its star telecommunication analyst Jack Grubman
("Grubman") for violations of Sections 10(b) of the Securities
Exchange Act of 1934, and SEC Rule 10b-5 promulgated thereunder,
are related to already pending litigation. This litigation is
related to the IPO Securities Litigation now proceeding in the
United States District Court for the Southern District of New
York before the Honorable Shira Scheindlin. In that litigation
Wolf Haldenstein is co-lead counsel. Wolf Haldenstein previously
published a Notice relating to Ovetsky-Weiss v. Salomon Smith
Barney, Inc. indicating that Class members had until July 23,
2002 to move to be lead plaintiffs. It is the position of Wolf
Haldenstein that such Notice was in error and Wolf Haldenstein is
withdrawing that Notice.
The Ovetsky-Weiss Complaint alleges that defendants violated
sections 10(b) of the Securities Exchange Act of 1934 and SEC
Rule 10b-5 promulgated thereunder, by the issuance of analyst
reports regarding Global Crossing which recommended the purchase
of Global Crossing common stock and which set price targets for
Global Crossing common stock without any reasonable factual
basis. Furthermore, when issuing their Global Crossing reports,
defendants failed to disclose significant, material conflicts of
interest which they had, in light of their use of Grubman's
reputation and his Global Crossing analyst reports, to obtain
investment banking business for Salomon. Furthermore, in issuing
their Global Crossing reports, in which they were recommending
the purchase of Global Crossing stock, defendants failed to
disclose material, non-public, adverse information which they
possessed about Global Crossing as well as their true opinion
about Global Crossing. Defendants also failed to disclose that
Grubman, while issuing reports on Global Crossing recommending
that investors purchase Global Crossing common stock, had been
intimately involved in the management of Global Crossing.
Wolf Haldenstein has extensive experience in the prosecution of
securities class actions and derivative litigation in state and
federal trial and appellate courts across the country. The firm
has approximately 60 attorneys in various practice areas; and
offices in Chicago, New Jersey, New York City, San Diego, and
West Palm Beach. The reputation and expertise of this firm in
shareholder and other class litigation has been repeatedly
recognized by the courts, which have appointed it to major
positions in complex securities multi-district and consolidated
litigation.
CONTACT: WOLF HALDENSTEIN ADLER FREEMAN & HERZ LLP
270 Madison Avenue
New York, New York 10016
Contacts:
Fred T. Isquith, Esq.
Robert Abrams, Esq.
Michael Miske
George Peters
Derek Behnke
Tel. +1-800-575-0735
Email: classmember@whafh.com
===========
B R A Z I L
===========
AES CORP: S&P Views CEO Change as Neutral for Credit
----------------------------------------------------
Standard & Poor's views the retirement of Dennis Bakke as chief
executive officer of The AES Corp. and the appointment by the
board of directors of Paul Hanrahan, formerly one of four chief
operating officers, as his replacement as neutral for the credit.
Mr. Hanrahan outlined a number of priorities in a conference call
this morning that are credit-focused, including increasing
liquidity, deleveraging the company through asset sales and
equity issuances, and possibly selling or spinning off businesses
in Latin America that are currently detracting from shareholder
value. While the increased credit focus is encouraging, the
future of the credit is dependant less upon plans and goals and
more upon execution.
AES CORP: May Sell South American Assets to Help Boost Liquidity
----------------------------------------------------------------
Paul Hanrahan, the new president and chief executive of AES Corp.
said Wednesday that the U.S. giant firm will likely sell some of
its troubled plants in South America as part of a plan to
increase liquidity by US$1 billion by the end of 2003, relates
AP.
The electric company has struggled recently along with other
power companies and has seen its stock down 90% in the last year.
However, AES' main problem is its significant exposure in South
America, which in the past has accounted for 40% of its revenue.
In Brazil, regulatory restrictions like power rationing have
taken a chunk out of profits, and political and monetary
uncertainties in Argentina and Venezuela, where AES also has a
strong presence, have spooked investors.
Hanrahan promised to address the Cmpany's South American problems
quickly, including selling or spinning off assets there.
But he acknowledged the fundamental problem the Company will face
in trying to raise money by selling power plants: In a depressed
market, the AES plants that are a drain on profits will be
unattractive to buyers, while the plants that could catch a good
price are reliable moneymakers for the Company.
CONTACT: AES Corporation
Home Page: www.aes.com
or
Kenneth R. Woodcock
Phone: 703/522-1315
or
Investor relations
E-mail: investing@aes.com
AES CORP.: Analyst Urges Investors to Shun Stock
------------------------------------------------
Shares of embattled global power company AES Corp. gained 8.6% to
US$5.43 after announcing Chief Executive Dennis Bakke has
abdicated and has been replaced by one of AES' four chief
operating officers, Paul Hanrahan.
Bakke will remain at the Company as a board member.
Though AES' stock gained on the news, investors should avoid it
at any price, no matter who is at the helm, said Morningstar
stock analyst Rob Plaza.
AES is undergoing a massive restructuring to cope with its high
debt load and dependence on electricity prices, and it's too soon
to say what the Company will look like when the plan is complete,
or how successful the turnaround will be, Plaza said.
BRAZILIAN COMPANIES: Facing Difficult Financing Environment
-----------------------------------------------------------
Some Brazilian companies may find it hard to refinance
international bonds maturing in the coming months amid
difficulties by the federal government to seek bond buyers ahead
of the country's October presidential elections, predicts Dow
Jones.
"Right now the financing environment isn't very good," said Bank
of America corporate bond analyst Roberto Kadlac in Sao Paulo,
"but many people thought this (volatility) would occur, so some
companies prepared by borrowing on the local market earlier this
year."
Doubts point to companies, which belong to the power sector.
These companies are being squeezed by hefty dollar-denominated
debt loads, tariffs that they say are too low and losses stemming
from last year's energy rationing program.
According to the Brazilian association of investment banks, or
Anbid, about US$721 million in international corporate bonds will
mature in June, compared with US$510 million in May. Another
US$1.06 billion in put and call options on bonds will expire, up
from US$515 million in May. Roughly similar levels of external
corporate debt are expected to mature each month through January.
Of the debt with put and call options expiring in June, Compahhia
Energetica de Sao Paulo SA (Cesp) has US$300 million up for
refinancing, Companhia Petroquimica do Nordeste SA (Copene) has
US$150 million falling due, along with US$400 million for
unlisted industrial conglomerate Votorantim.
Petrochemical maker Copene is seen using cash reserves to cover
nearly all of the US$150-million payment. Votorantim has already
exercised a call option on its bond and refinanced it with a
syndicated loan led by ABN Amro, sources say.
With capital markets mostly closed, Vinicius de Queiroz, fixed-
income investment banking director for Salomon Smith Barney in
Brazil, says companies that have yet to secure financing to roll
over debts coming due may pursue alternatives like bank loans or
accounts receivables financing.
Cesp may need to look for these types of loans, analysts say, as
the company is cash poor and so far has only refinanced about
US$150 million of the US$300 million coming due.
Other power companies facing a squeeze include AES Corp's unit
Eletropaulo Metropolitana SA, which has BRL1.8 billion in local
and international debt coming due this year. In August and
September alone, Eletropaulo must refinance about US$400 million
in debt and Moody's last week put it on review for a possible
downgrade.
"Power firms are going to have to find ways to raise cash by the
end of the year," said Oswaldo Telles, a power sector analyst at
BBV Securities in Sao Paulo. "The load is heavy and the
conditions are difficult."
Light Servicos de Eletricidade has about US$450 million in debt
servicing obligations in 2002. It may try to look to its parent
company again after escaping insolvency earlier this year by
taking out a US$550 million inter-company loan from parent
Electricite de France (EDF).
Though the power sector is expected to see the most financing
trouble, there may be an escape hatch. Brazil's national
development bank has said it will offer about BRL7.5 billion in
financing to the sector to reimburse companies for losses accrued
during the country's 2001 energy rationing program.
Outside of the power sector, many local heavyweights appear well
prepared to meet their financing obligations.
Though net debts at Tele Norte Leste Participacoes SA (Telemar)
are expected to rise this year on a change in how supplier debt
is accounted for, the telecom giant says it is focused on paying
down debt and that it isn't looking to borrow on the bond markets
anytime soon. Cash reserves of about BRL1.0 billion and lots of
cash generation provide it with plenty of resources to pay off
the roughly BRL1.1 billion in short-term debt maturing through
the end of the year.
Though struggling cable television provider Globo Cabo SA is
seeing revenue fall and has a massive debt load, proceeds from a
pending BRL1.0-billion share offering are expected to cover the
company's debt payments for the rest of 2002.
CONTACT: CESP-COMPANHIA ENERGETICA DE SAO PAULO
Rua da Consolacao, 1.875
CEP 01301 -100 Sao Paulo, Brazil
Phone: +55-11-234-6322
Fax: +55-11-287-0871
Home Page: http://www.cesp.com.br/
Contact:
Mauro G. Jardim Arce, Chairman
Ruy M. Altenfelder Silva, Vice Chairman
Vicente Kazuhiro Okazaki, Finance Director
COPENE PETROQUIMICA DO NORDESTE S.A.
Carlos Augusto de Oliveira Freitas
Tel: +55-71-632-5847
Fax: +55-71-632-5047
E-mail: caof@copene.com.br
or
Breakstone & Ruth International
Luca Biondolillo
Tel: 646-536-7012
Fax: 646-536-7100
E-mail: Lbiondolillo@breakstoneruth.com
ELETROPAULO METROPOLITANA
Avenida Alfredo Egidio de Souza Aranha 100-B,
13 andar 04726-270 San Paulo
Brazil
Phone: +55-11-548-9461, +55 11 5696 3595
Fax: +55-11-546-1933
URL: http://www.eletropaulo.com.br
Contacts:
Luiz D. Travesso, Chairman and President
Orestes GonOalves Jr., VP Finance/Investor Relations
LIGHT SERVICOS DE ELETRICIDADE S.A.
Avenida Marechal Floriano, 168
20080-002 Rio de Janeiro, Brazil
Phone: +55-21-2211-2794
Fax: +55-21-2211-2993
Home Page: http://www.lightrio.com.br
Contact:
Bo Gosta Kallstrand, Chairman
Michel Gaillard, President and CEO
Joel Nicolas, Executive Director, Operation
Paulo Roberto Ribeiro Pinto, Executive Director,
Investor Relations and CFO
GLOBO CABO
Luis Henrique Martinez, Investor Relations
Phone: +5511-5186-2684,
E-mail: lmartinez@globocabo.com.br
Marcio Minoru, Investor Relations
Phone: +5511-5186-2811,
E-mail: minoru@globocabo.com.br
Home Page: http://www.globocabo.com.br
ORGANIZACOES GLOBO: To Sell Shares to Investors to Pay Down Debt
----------------------------------------------------------------
Organizacoes Globo, Latin America's largest media group, will
join television, radio, printing, newspaper and other media
investments under a single company called Globo SA, reports
Bloomberg.
The reorganization is expected to be concluded by year-end. After
that, the group, controlled by the Marinho family based in Rio de
Janeiro, will consider the sale of stock to the public, said
Roberto Irineu Marinho, head of Organizacoes Globo and chairman
of the new Globo SA.
Organizacoes Globo is planning to sell shares to investors to pay
down debt and finance expansion.
"As a public company, we will have more liberty to finance
expansion," said Philippe Reichstul, chief executive and
president of Globo SA, who was president of Petroleo Brasileiro
SA until last December.
"This will also help the Marinho family maintain the value of
their assets, said Reichstul. He didn't say how much of the
control might be sold.
Globo SA and its subsidiaries have about US$2 billion in debt,
said Ronnie Vaz Moreira, chief financial officer of the new Globo
company.
Organizacoes Globo controls Globo television, Brazil's largest
network, Net Servicos de Comunicacao SA, the country's biggest
cable television operation, radio stations, O Globo daily
newspaper, Net Sat Servicos Ltda. and radio stations.
Preferred shares of Net Servicos, which have shed 72% this year,
dropped 13% to BRL2.27 Tuesday. Net Servicos' financing costs are
large, said analysts. The cable company has US$692 million in
debt, one and a half times its equity.
CONTACT: GLOBO COMUNICACOES E PARTICIPACOES - GLOBOPAR
Rua Afranio de Melo Franco
135/4 andar- Leblon
Rio de Janeiro - RJ
CEP: 22430-060
Phone: (21) 240.2000
Fax: (21) 259.6586
Home Page: www.globopar.com.br
Contacts:
Mr. Roberto Marinho, President - Board of Directors
Mauro Molchansky, Executive Director
Marcos Carneiro, Director - Corporate Relations
TELEFONICA SA: May Need More Money to Finance Brazilian Debt
------------------------------------------------------------
The speedy plunge of the Brazilian currency may require
Telefonica SA, the biggest phone company in Spain and Latin
America, to pay more to finance its debts in the country.
According to a Bloomberg report, Telefonica had currency
contracts that protected US$582 million at the end of last year
against a decline of the real to between BRL2.57 and BRL2.95 to
the dollar, based on documents sent to Spanish market regulators.
The real traded at BRL2.718 to the dollar Tuesday, and has fallen
15% this year.
If the real weakens beyond this hedging range, Telefonica will
have to pay more to finance the US$5.7 billion debt from Brazil,
and will see revenue and earnings from the country fall, analysts
said. Brazil accounts for a quarter of the Company's earnings
before interest, tax, depreciation and amortization.
"Telefonica has to manage the currency risk in Brazil," said
Antonio Hormigos, who helps manage EUR9 billion (US$8.6 billion)
at Ahorro Corporacion Gestion, including Telefonica shares.
Telefonica shares have fallen 19% this month, almost double the
decline of the Bloomberg Europe Telecommunication Services Index
amid investor concern that Brazil may add to the Company's losses
in South America, where it has invested more than US$60 billion.
Telefonica owns Telecomunicacoes de Sao Paulo SA, the fixed-
phone operator in Sao Paulo, Brazil's richest and most populous
state. It has about 18 million fixed and wireless phone lines in
Brazil, almost half its number in Spain.
CONTACT: TELEFONICA S.A.
Gran Via, 283o Planta
28013 Madrid
Phone: +3491 584 4713
Fax: +3491 531 9347
E-mail: inversor.relations@telefonica.es
Home Page:
http://www.telefonica.com/home_eng.html
Contact:
Ezequiel Nieto, Investor Relations Manager
TELECOMUNICACOES DE SAO PAULO S.A.
Av. Brigadeiro Faria Lima 3729 - 9 andar
Itaim Bibi 04538-133 Sao Paulo - SP
Brazil
Phone: +55 11 3047 1524
+55 11 3047 1525
Contact:
Fernando X. Ferreira, Chairman
Antonio Viana-Baptista, Vice-Chairman
Manoel L. Ferrao de Amorim, General Manager
Leonardo De Paiva Rocha, Finance Director
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C H I L E
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ENERSIS: Reveals US$600M LatAm Investment Plan for 2002
-------------------------------------------------------
Enersis SA, a Chilean electricity holding controlled by Endesa
Espana, announced plans to invest US$600 million in Latin America
during 2002, says South American Business Information.
The utility will spend US$400 million in power distribution, the
main projects under which include a thermal plant at Fortaleza
(Brazil), and the hydroelectric Ralco (Chile). The remaining
US$200 million will be spent in power generation.
Enersis is also to complete the 2nd power transportation line
connecting Argentina - Brazil.
Meanwhile, Enersis executives are on a road show in the US and
Europe to inform investors of its plans to tackle the Latin
American risks. Enersis has seen its share price buffeted this
year as investors are becoming increasingly worried about the
markets in which the Company operates.
CONTACT: EDESUR S.A.
Gte. Gral.: Ing. Rafael Fernandez Morande
San Jos, 140, 3o P
Capital Federal 1076
Argentina
Home Page: www.edesur.com.ar
Tel.: 4370-3700/4370-3370
Fax:4381-0708
ENERSIS S.A.
Santo Domingo 789
Santiago, Chile
Phone: (562) 688-6840
www.enersis.cl
Contacts:
Alfredo Llorente, Chairman
Enrique Garcia, CEO
Rafael Miranda, Vice Chairman
Mauricio Balbontin, CFO
Domingo Valdes, Gen. Counsel
MADECO: To Boost Capital Pending Shareholders' Approval
-------------------------------------------------------
Chilean industrial conglomerate Madeco SA will call an
extraordinary shareholders' meeting soon to obtain an approval of
a plan to boost capital by US$70 million.
The approval will pave the way for the Company to restructure its
debts, which amount to US$325 million - US$231 million of which
is held by creditor banks, US$8 million with Quinenco SA
(Madeco's controlling shareholder), and US$105 million with bond
holders.
The proposed scheme, which follows an advise by Salomon Smith
Barney, will see Madeco paying off half of its debts with banks,
with the remainder to be restructured by taking on a longer-term
loan.
The banks have reportedly accepted the proposal.
Madeco posted a first quarter loss of US$15.3 million after the
already financially-trouble company closed down part of its
Argentina-based operations in an attempt to minimize further
damage from the deepening of that country's economic crisis.
To see financial statements and exhibits:
http://bankrupt.com/misc/Madeco.doc
CONTANCT: Marisol Fern ndez
Investor Relations
Voice: (56 2) 520-1380
Fax: (56 2) 520-1545
E-mail : mfl@madeco.cl
Web Site: www.madeco.cl
ADVISER: SALOMON SMITH BARNEY
In New York:
767 Fifth Avenue
New York City
New York
Phone: 212-230-3500
Home Page: http://www.salomonsmithbarney.com/
===========
M E X I C O
===========
HYLSAMEX: Parent to Reduce Ownership
------------------------------------
Monterrey-based steel and industrial conglomerate Grupo Alfa is
to see its ownership in Hylsamex, and its steel unit Hylsa,
reduced to 64% from 82%, reports Business News Americas.
This after the conglomerate embarks on a plan to dilute its stake
in the steelmaker via a MXN3.5-billion (US$360 million) stock
offer on the Mexico City bourse.
Of the total, Alfa will contribute US$191 million, which will go
toward debt payments and restructuring.
The new shares will be issued for MXN9.83 pesos each, but
according to Mexico City-based analyst Angelo Garcia, from
brokerage Casa Vector, they have the potential to reach MXN15.
The Company's stock price has picked up from lows of below MXN4
last October to almost MXN12 recently, and on Wednesday, Hylsamex
was trading at MXN10.30 on the Mexico exchange.
Hylsamex, Mexico's second largest steelmaker after Ahmsa, is in
the process of finalizing a deal on its debts with creditor
banks. It reached an agreement to restructure a US$300-million
Eurobond issue in April following a default.
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
ALFA, S.A. de C.V.
Ave. Gomez Morin 1111 Sur, Col. Carrizalejo
Garza Garcia, N. L. Mexico C.P. 66254
Tel: 52 8748-1111
Fax: 52 8748-2552
SANLUIS CORPORACION: Closes Sale of Mining Unit to Canadian Firm
----------------------------------------------------------------
SANLUIS Corporacion, S.A. de C.V., a Mexican industrial company
that manufactures autoparts and mines gold and silver, finalized
the sale of its mining unit, Minas Luismin, S.A. de C.V. to
Canada-based Wheaton River Minerals Ltd., relates Dow Jones.
In a filing with the Mexican Stock Exchange, Sanluis said that
the recently concluded deal fetched the Company US$75 million in
cash and US$15 million in shares, as anticipated when it first
signed the agreement in April. Rothschild Inc. was the advisor on
the transaction.
The sale is part of Sanluis' decision to concentrate on its auto
parts business, which accounts for 88% of the Company's sales.
In May, Sanluis managed to head-off bankruptcy after it signed
US$415 million worth in refinancing agreements. Company
officials, at that time, said that after negotiating with bank
creditors, they negotiated with the bondholders. However, the
officials have yet to see a concrete agreement regarding the
matter. They denied they would use the proceeds from the sale of
Luismin to pay off bondholders.
The Company has a total debt of US$600 million, of which US$285
million are in euro bonds, the interest of which went unpaid
since last September.
CONTACT:
SANLUIS Corporacion
Hector Amador
Email: hamador@sanluiscorp.com.mx
N M ROTHSCHILD & SONS LIMITED
New Court, St. Swithin's Lane
London EC4P 4DU, United Kingdom
Phone: +44-20-7280-5000
Fax: +44-20-7929-1643
E-mail: infouk@rothschildco.uk
Home Page: http://www.nmrothschild.com
Contacts:
Sir Evelyn de Rothschild, Chairman
Andrew Didham, Executive Director, Finance Director Holdings
N M ROTHSCHILD & SONS (MEXICO) SA DE CV
Campos Eliseos 345-8o Piso
CP 11550 Mexico, DF Mexico
Phone: 52 5 327 1450
Fax: 52 5 327 1485
Home Page: www.rothschild.com.mx
===============
P A R A G U A Y
===============
BANCO ALEMAN: Operations Return to Normal
-----------------------------------------
The Paraguayan central bank got back US$5 million of the US$14
million emergency credit line it granted for a 60-day period to
Banco Aleman to help the bank stem a run on deposits in mid-May,
reports Business News Americas.
Aleman, which is owned by the South American business group
Velox, put up US$30 million worth of first-rate loans as
guarantee for the emergency line. The owner capitalized the bank
with US$7.5 million on June 3 and will further inject US$7.5
million in early July.
Aleman experienced a deposits run amid widespread rumors
suggesting financial distress. The rumors, which surrounded the
bank stemmed from problems at local financial group Grupo
Inversiones Guarani, whose name is similar to that of Aleman
subsidiary Cambio Guarani.
When Aleman and the Paraguayan authorities finally managed to
kill the rumors, the bank's situation quickly normalized.
Despite the temporary run on Aleman's deposits, the banking
regulator's financial strength ranking shows that it is the
healthiest of Paraguayan banks - ahead of the local units of
international banks such as Citibank, ABN Amro and BBVA.
CONTACT: BANCO ALEMAN PARAGUAYO S.A.
Estrella Esquina 14 de Mayo
Asuncion, PARAGUAY
Tel: (59521) 418 3000
Fax: (59521) 447 645
Home Page: http://www.bancoaleman.com.py/
Contact:
Juan Peirano, Presidente
Ricardo Castillo Fracchia, Vice President
GRUPO VELOX
Burgos 80, piso 5, Of. 501
Las Condes
Santiago, chile
Phone: 208-8380
Fax: 208-8332
Home Page: http://www.finambras.com.br/grupo_velox.html
=======
P E R U
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SIMSA: To Submit Restructuring Plan to Creditors for Approval
-------------------------------------------------------------
Peruvian lead-zinc miner San Ignacio de Morococha (Simsa), which
entered into a form of bankruptcy protection late last year,
moves a step higher in its efforts to restructure a US$18-million
debt.
According to a report by Business News Americas, the Company will
now submit to its creditors for approval its restructuring plan
after shareholders agreed to the scheme.
Simsa's debt is divided among suppliers with US$9.71 million,
banks US$3 million, workers US$2.46 million, tax authorities
US$460,000 and others US$2.6 million.
The Company's biggest single shareholder is the world's number
two copper miner, Phoenix-based Phelps Dodge, which, at the time
of the bankruptcy filing, recommended shareholders declare Simsa
insolvent.
Simsa mines at San Vicente in the Chanchamayo area of Junin
department in central Peru and ranks as a medium-sized Peruvian
mining company.
CONTACT:
COMPANIA MINERA SAN IGNACIO DE MOROCOCHA S.A.- SIMSA
Calle Uno 795 - Urb.
Corpac
San Isidro - Lima 27
Phone: 224-3432
Fax: 224-1321
E-Mail: simsa@simsa.com.pe
***********
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
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Information contained herein is obtained from sources believed to
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