/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/020716.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, July 16, 2002, Vol. 3, Issue 139 Headlines A N T I G U A & B A R B U D A LIAT: Another Engine Failure Grounds Plane A R G E N T I N A EDEMSA: Suspends Debt Payments Over Peso Devaluation IMPSAT FIBER: Turns to Houlihan Lokey for Restructuring Advice IMPSAT FIBER: Schedules, Statements To Be Filed By July 26 IMPSAT FIBER: U.S. Trustee Names Unsecured Creditors' Committee B A H A M A S GLOBE-X: Cinar Demands Liquidation Over Debt Dispute B E R M U D A TYCO INTERNATIONAL: Johnson & Perkinson Expands Class Period TYCO INTERNATIONAL: Reviews All Top Executives' Retention Deals B R A Z I L BELL CANADA: Shareholders Approve Plan of Arrangement BELL CANADA: Put Option, Warrants Cancelled Over Comcel Deal BELL CANADA: Shareholders Criticize Directors For Windup Plan BELL CANADA: Moody's Downgrades Ratings On Debt Concern CEMIG: Government Offers Bonds As Debt Payment Aid CESP: Debt Level Surpasses Annual Turnover CSN: Bethlehem Steel Persistent On JV Plans H O N D U R A S CHIQUITA BRANDS: Warns of Honduran Exit On Workers' Absenteeism M E X I C O AVANTEL: CEO On Spin Control Road Trip Over WorldCom Fears BANCA MIFEL: Disagreement Over Sale Price Leads To Impasse CINTRA: To Define Base Price By September GRUPO BITAL: Needs $550M Minimum In New Money Provisions GRUPO MASECA: Improves Debt Profile After Making Early Payment ISPAT INTERNATIONAL: Extends Exchange, Consent Solicitation Time - - - - - - - - - - ================================= A N T I G U A & B A R B U D A ================================= LIAT: Another Engine Failure Grounds Plane ------------------------------------------ A LIAT aircraft, which bears the registration number V2 LDU, has been grounded for several days now since it encountered mechanical problems, Caribbean Airnews reports, citing LIAT Commercial Director Daniel Oliver. This is the fifth engine failure that has plagued the airline in three months. "As a result of the setback we had to reorganize our schedule and make arrangements with Carib Aviation to service our passengers," Oliver said. According to Oliver, efforts are being made to get the plane up and running by this weekend. LIAT has been short of cash for the last couple of years but got a shot in the arm in March after it received an EC$31-million (US$11 million) loan to replace aging planes, finance its voluntary severance program and boost marketing initiatives. ================= A R G E N T I N A ================= EDEMSA: Suspends Debt Payments Over Peso Devaluation ---------------------------------------------------- Argentine distributor Edemsa has decided to suspend payments on all financial obligations as a result of the devaluation of the peso, reports Business News Americas, citing company accountant Horacio Marchessi. In a statement to the Buenos Aires stock market, the Company said it is delaying payments of the series II debentures capital (US$9.8 million) that expired Friday and the series III interest (US$2.2 million). With half of its total US$120 million in debt denominated in dollars, Edemsa admitted that its peso-denominated income cannot match dollar-denominated expenses. Furthermore, the outcome of negotiations with the provincial government over rates are far from certain. The company did say it will continue day-to-day operations, and honor commercial debts. Edemsa is controlled by the French EDF through direct and indirect holdings. The Argentine province of Mendoza also holds a stake in the utility. IMPSAT FIBER: Turns to Houlihan Lokey for Restructuring Advice -------------------------------------------------------------- Impsat Fiber Networks, Inc. received authority from the U.S. Bankruptcy Court for the Southern District of New York to employ Houlihan Lokey Howard & Zukin Capital as its financial advisor. On or about August 31, 2001, the Debtor retained Houlihan Lokey to serve as its financial advisor in connection with its restructuring efforts. Since then Houlihan Lokey has developed extensive knowledge of the Debtor's businesses, operations and financial condition. Under the terms of its engagement, Houlihan Lokey will continue to: A. Advise the Debtor generally of available capital restructuring and financing alternatives, including recommendations of specific courses of action and assist the Debtor with the design of alternative transaction structures and any debt and equity securities to be issued; B. Assist the Debtor with the development, negotiation and implementation of a transaction, including participation as a representative of the Debtor in negotiations with creditors and other parties involved in a transaction; C. Assist the Debtor in valuing the Debtor and/or, as appropriate, valuing the Debtor's assets or operations; provided that any real estate or fixed asset appraisals needed will be performed by outside appraisers retained directly by the Debtor; D. Provide expert advice and testimony, in any legal proceeding occurring prior to consummating a transaction, or prior to any termination of the Engagement Letter, related to a transaction, including the feasibility of any transaction, the valuation of any securities issued in connection with a transaction, and any other matter as to which Houlihan Lokey is rendering services under the Engagement Letter; E. Advise the Debtor with respect to certain potential debt or equity financings; F. Prepare proposals to creditors, employees, shareholders and other parties-in-interest in connection with any transaction; G. Provide a fairness opinion to the Debtor in connection with any out-of court transaction; and H. Render such other financial advisory and investment banking services as may be mutually agreed upon by the Debtor and Houlihan Lokey. Houlihan Lokey will be entitled to receive: a. a Monthly Fee of $200,000; b. a Transaction Fee payable in cash and equal to the sum of i) 1% of $650,000,000 (being the aggregate face amount of the 2003 Notes, the 2005 Notes and the 2008 Notes) and ii) .50% of any and all vendor financing principal and accrued interest of the Debtor's Non-debtor Subsidiaries outstanding as of the date of the consummation of the Transaction that is either reduced, retired, satisfied, extended or converted to equity or as to which the debt service requirements are reduced or extended, less iii) 100% of all Monthly Fees paid to Houlihan Lokey up to and including the date of the consummation of the Transaction; and c. the reimbursement of reasonable out-of-pocket expenses. 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. To see Financial Statement: http://bankrupt.com/misc/IMPSAT.htm CONTACT: IMPSAT Fiber Networks, Inc. Home Page: http://www.impsat.com Hector Alonso Gonzalo Alende Serra Phone: 54.11.5170.3700 DEBTORS' COUNSEL: Anthony D. Boccanfuso, Esq. Michael J. Canning, Esq. Arnold & Porter 399 Park Avenue New York, New York 10022 (212) 715-1315 Fax : (212) 715-1399 FINANCIAL ADVISOR: Houlihan Lokey Howard & Zukin Capital John McKenna Lily Chu Phone: 212/497-4100 IMPSAT FIBER: Schedules, Statements To Be Filed By July 26 ---------------------------------------------------------- By order of the U.S. Bankruptcy Court for the Southern District of New York, Impsat Fiber Networks, Inc. obtained an extension on its time period to file its schedules and statement of financial affairs to the Court. The Court gives the Debtor until July 26, 2002 to file a list of creditors, a list of equity security holders, schedules of assets and liabilities, a schedule of current income and expenditure, schedules of executory contracts and unexpired leases, and a statement of financial affairs. IMPSAT FIBER: U.S. Trustee Names Unsecured Creditors' Committee --------------------------------------------------------------- The United States Trustee appointed creditors to serve at the Official Unsecured Creditors' Committee of the chapter 11 case of Impsat Fiber Networks, Inc. The appointed creditors are: 1) The Bank of New York, as Indenture Trustee 6 Pennsylvannia Plaza New York, NY 10001 Attn: Irene Siegel, 13th Floor Tel No.: 212 896 7258 Fax No.: 212 328 7302 2) Nortel Networks, Ltd. c/o Nortel Networks de Argentina, S.A. Larrea 1079 (C1117 ABE) Buenos Aires, Argentina Attn: Ramiro Angle, Sr. Manager Customer Finance Tel No.: 5411 4827 7275 Fax No.: 5411 4827 7272 or Piper & Rudnick LLP 1200 19th Street N.W. Washington, DC 20036 Attn: Mitchelle S. Mardner, Esq. Eric B. Miller, Esq. Tel No.: 202 861 3970 Fax No.: 202 689 7670 3) Sirti Argentina SA Av. Presidente Hipolito Yrigoyen 4848 (B1604CMV) Florida Provinca de Buenos Aires, Argentina Tel No.: 0054 11 8800 Fax No.: 4730 881707 8818 or Solomon, Eavderer, Ellenhorn, Frischer & Sharp 45 Rockefeller Plaza New York, NY 10111 Attn: Harry Frischer, Esq. Tel No.: 212 956 3700 Fax No.: 212 956 4068 4) Harris Canada Inc. 3 Holet de Ville Dollard ded Ormeuvx, Quebec Canada H913 3G4 Tel No.: 514 421 8400 Fax No.: 514 421 2952 or Marie Wilson, Esq. 350 Twin Dolphin Drive Redwood Shoes, CA 94065 Tel No.: 650 594 32106 5) UBS Warburg (UBS AG) 677 Washington Blvd. Starnford, CT 06901 Attn: Michael Gelhard, Exe Director Tel No.: 203 719 7444 Fax No.: 203 719 4836 6) WRH Partners Global Securities, LP 1776 On the Green 67 park Place Morristown, NJ 07960 Attn: Joe Thornton, Esq. Tel No.: 973 984 1233 Fax No.: 973 984 1196 7) Vision Advisors Isidora Goyemechea 3642, 2nd Floor Las Condez, Santiago, Chile Attn: Boris Garafulich Tel No.: 56 2 290 9999 Fax No.: 56 2 290 9900 ============= B A H A M A S ============= GLOBE-X: Cinar Demands Liquidation Over Debt Dispute ---------------------------------------------------- CINAR Corporation has petitioned the Supreme Court of the Bahamas for permission to wind-up Globe-X Canadiana Limited and Globe-X Management Limited and to appoint PricewaterhouseCoopers as liquidator. This action is being taken due to the failure by Globe-X to pay the balance of US $39,368,000 plus interest of US $4,700,000 still outstanding from an original principal amount of US $122,000,000 invested with Globe-X. Under an Agreement dated October 20, 2000, Globe-X had committed to make weekly payments until August 17, 2001 at which time the entire amount was required to be paid. Since October 24, 2000, a total of US $11,600,000 has been repaid, however, as has been previously announced, Globe-X defaulted in making the agreed weekly payments and failed to make the final payment called for in August 2001. In addition, despite repeated representations from Globe-X representatives that they were attempting to raise funds or to monetize assets to cure the situation, Globe-X has failed to effect full repayment to CINAR or to make any repayment of principal during the past two months. CINAR Corporation is an integrated entertainment and education company involved in the development, production, post-production and worldwide distribution of non-violent, quality programming and educational products for children and families. CINAR's web site is www.cinar.com. CONTACT: CINAR Corporation Louise Sansregret, VP Corp. affairs & Corp. Sec. TEL: (514) 843-7070 ============= B E R M U D A ============= TYCO INTERNATIONAL: Johnson & Perkinson Expands Class Period ------------------------------------------------------------ Johnson & Perkinson gave official notice that the Class Period in its Tyco Fraud Suit is being expanded. The revised dates are: April 25, 2002 through June 12, 2002. The Class consists of all those who purchased Tyco common stock, call options, or debt investments and who sold Tyco put options during the period. The complaint asserts claims against Tyco; its former CEO, Kozlowski; and its former Chief Counsel, Belnick, for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Plaintiffs allege: 1) Tyco's financial results announced on April 25, 2002 overstated the value of CIT Group, a wholly owned Tyco subsidiary, by $4.5 to $6.5 billion, thereby materially inflating the reported financial results of Tyco; 2) Defendants failed to reveal the material risk that the public offering of CIT stock by Tyco would not be able to be competed once the criminal investigation of Kozlowski became public or, if it were, would only occur at a value far below that represented Defendants; and 3) Defendants failed to reveal the ongoing criminal investigations of Kozlowski. As a result, Tyco's securities were artificially inflated throughout the Class Period, causing plaintiff and other members of the Class to purchase or sell such securities at prices skewed by Defendants' conduct. At the end of the Class Period, Tyco announced the need to restate its financial results to write down $4.5 billion of CIT's goodwill. Purchasers or sellers of the designated securities during the redefined Class Period may, no later than August 5, 2002, move to be appointed as Lead Plaintiff. CONTACT: JOHNSON & PERKINSON 1690 Williston Road South Burlington, Vermont 05403 Toll free: 1-888-459-7855 E-mail: JPLAW@adelphia.net Contacts: Dennis J. Johnson, Esquire Jacob B. Perkinson, Esquire TYCO INTERNATIONAL: Reviews All Top Executives' Retention Deals --------------------------------------------------------------- Tyco International Ltd. is scrutinizing employment agreements of all senior executives as part of its ongoing internal investigation, company spokesman Gary Holmes said in a Reuters report. One particular top executive under investigation is Richard Meelia, who is involved in a deal that grants him an equivalent of nearly 90 US cross-country flights on company jets in case of resignation from the Company. In his retention agreement, Meelia, who received total direct compensation of US$21.5 million in 2001, was granted a severance package potentially worth several million dollars, as well as up to 150 hours a year access to company planes for three years should he be fired without cause or should he resign for a good reason before Feb. 28, 2005. According to Reuters, Meelia's retention agreement could be controversial, as the Company probes undisclosed transactions done under ex-CEO Dennis Kozlowski's term. A month ago, the industrial conglomerate dismissed chief corporate counsel Mark Belnick on grounds of conspiracy with Kozlowski to hide retention deals that would have paid him US$10.6 million. A suit followed on improper compensation of US$35 million for Belnick. Tyco lost more than US$90 billion in market capitalization this year on the controversy involving use of company funds for real estates and costly paintings. CONTACT: Tyco International Ltd. The Zurich Centre, Second Floor 90 Pitts Bay Road Pembroke HM 08, Bermuda Phone: 441-292-8674 Headquarters Tyco International (U.S.) Inc. One Tyco Park Exeter, NH 03833 Phone: 603-778-9700 Home Page: http://www.tyco.com =========== B R A Z I L =========== BELL CANADA: Shareholders Approve Plan of Arrangement ----------------------------------------------------- Bell Canada International Inc. ("BCI") announced Friday that BCI shareholders approved BCI's Plan of Arrangement at a special meeting of shareholders held Friday afternoon in Montreal. The Plan of Arrangement was approved by in excess of 99% of the votes cast in person or by proxy by BCI shareholders at the special meeting. As announced earlier on the same day by BCI, holders of BCI's 11% senior unsecured notes approved the Plan of Arrangement at a meeting of noteholders held that morning. A hearing on the matter is set July 17, 2002 at 10:00 a.m. before the Ontario Superior Court of Justice at which time BCI will seek court approval of the Plan of Arrangement. If court approval is obtained, BCI intends to complete the sale of its interest in Telecom Americas on July 24, 2002; thereafter, BCI will proceed with the disposition of its remaining assets in an orderly fashion and seek expeditious resolution of claims against BCI in order to accelerate final distributions to BCI stakeholders. In addition, shortly after court approval of the Arrangement, BCI will effect the consolidation of its outstanding common shares such that, following the consolidation, BCI would have 40 million common shares outstanding. BCI confirms that the proposed consolidation ratio will be approximately one to 120. BCI, through Telecom Americas, owns and operates 4 Brazilian B Band cellular companies serving more than 4.3 million subscribers in territories of Brazil with a population of approximately 60 million. BCI is a subsidiary of BCE Inc., Canada's largest communications company. BCI is listed on the Toronto Stock Exchange under the symbol BI and on the NASDAQ National Market under the symbol BCICF. CONTACT: BELL CANADA INTERNATIONAL INC. Marie-Lise Gauthier, 514/392-2318 Email: marie-lise.gauthier@bci.ca Web site: www.bci.ca BELL CANADA: Put Option, Warrants Cancelled Over Comcel Deal ------------------------------------------------------------ Bell Canada International Inc. ("BCI") announced Friday that it had received notice from American International Underwriters Overseas, Ltd. and American International Reinsurance Company, Ltd. (collectively the "Holders") that the Holders have sold their indirect interest in Comunicacion Celular - Comcel S.A. ("Comcel") to a wholly owned subsidiary of America Movil S.A. de C.V. Details of the transaction were not disclosed. Accordingly, the Holders' right to put this interest in Comcel to BCI pursuant to a December 10, 1998 Put Option Agreement, an obligation BCI has previously announced it would settle through the issuance of BCI common shares, has terminated pursuant to its terms. As a result, no BCI common shares will be issued to the Holders. As a further consequence of the termination of the Put Option, the secondary warrants issued on January 11, 2002 in connection with BCI's Recapitalization Plan have automatically expired. The termination of both the Put Option and the secondary warrants eliminates the risk of significant dilution facing BCI's shareholders, which would have resulted from the Put Option being exercised. As of the date hereof, BCI has 4,797,313,658 outstanding common shares. As announced on June 10, 2002, BCI is proposing, as part of a Plan of Arrangement, a share consolidation that will result in BCI having 40 million common shares outstanding following the consolidation. BCI confirms that the proposed consolidation ratio will be approximately one to 120. The share consolidation is subject to required shareholder and court approvals. BELL CANADA: Shareholders Criticize Directors For Windup Plan ------------------------------------------------------------- Elderly shareholders of Bell Canada International (BCI) were enraged about a plan to wind up the BCE Inc. subsidiary, claiming they have been treated unfairly. At a meeting held Friday, noteholders owed millions of dollars voted by the same margin -- 99% -- to approve a plan, which, among other things, would approve the sale of BCI's assets so the proceeds could be distributed to its creditors and shareholders. "This meeting is a farce because BCE holds more than 50% of the shares," said shareholder Morton Cherad. BCE, which owns 62% of BCI's shares has earlier indicated it would vote in favor of the plan. Another shareholder, Roland Sperlich, described BCI's directors as "a bunch of yes men to the whims of the BCE board," and accused them of being in a conflict of interest because some board members had ties to BCE at one time. Mr. Sperlich contemptuously called the plan a "giveaway" and a "scandal." BCI president William Anderson however said he was sympathetic to the shareholders' anger. "But as a practical matter, I think when they look at the circumstances as they exist, they recognize in fact that this is the right thing for the Company to do and the best opportunity -- if not the only opportunity -- that they have to recover some of their investment." BELL CANADA: Moody's Downgrades Ratings On Debt Concern ------------------------------------------------------- Moody's Investors Service downgraded the ratings of BCE Inc. and Bell Canada, citing concerns about BCE's increased debt load following its decision to re-purchase 20% of Bell Canada. Moody's said it lowered BCE's senior unsecured rating to A3 to Baa1 while confirming its commercial paper at P2. Bell Canada's issuer and senior unsecured debt was dropped to A3 from A2, while its subordinate debt was dropped to Baa1 from A3. Its commercial paper was also lowered to P2 from P1. "The outlook for all ratings is negative due to the potential inability of Bell and BCE, combined, to repay debt within a reasonable number of years from free cash flow. The ratings may be subject to future downgrades over time unless Bell and BCE can demonstrate a strong improvement in combined free cash flow generating ability and also reduce their combined debt level. The outlook reflects the potential for additional downgrades should BCE fail to execute on its planned equity issue, bond issue and sale/monetization of Bell's directories business," said Moody's. Despite Bell's efforts to reduce capital spending, Moody's said the country's largest telephone carrier will continue to incur negative free cash flow owing to the high dividend payout level to BCE. BCE has reduced its own negative free cash flow through recent decisions to stop funding Teleglobe and Bell Canada International. Moody's also believes that other investments should not require funding other than Expressvu in manageable amounts. Moody's believes however that BCE's decision to maintain its dividend at current levels for its equity stakeholders weakens the position of its credit stakeholders at both Bell and BCE. CEMIG: Government Offers Bonds As Debt Payment Aid -------------------------------------------------- The Brazilian government is expected to give Cia. Energetica de Minas Gerais, the country's largest power generator and distributor, government bonds in the coming weeks. In a Bloomberg report, Cristiano Correa de Barros, Cemig's chief financial officer, said Brazil will give the utility government bonds to make up for limits on power rate increases in recent years. The Company is expecting to get the bonds at the end of July or early next month. Cemig will then sell these bonds to pay BRL1.1 billion to BRL1.2 billion it owed to power distributors and generators when nine months of power rationing, which ended in March, reduced its own energy output, forcing it to buy electricity from the utilities. Cemig expects to raise BRL1.5 billion ($527 million) from the sale of the bonds. Correa de Barros said he expects Cemig's net income to increase this year over 2001, though earnings will depend on demand for energy and the exchange rate. The real has plunged 19% this year against the dollar but Cemig is forecasting a rebound in the currency to BRL2.6 to the dollar by year-end. Every 1% decline in the real adds BRL15 million to Cemig's costs of paying its almost US$700 million in dollar debt, Correa de Barros said. "We think the dollar is overvalued," said Correa de Barros. "We expect more calm in the markets in coming months." Cemig has about a quarter of its dollar debt protected against declines in the real. The Company has the right to raise that hedging to cover all of the debt, though it has no plans to do so because of the cost, he said. "Hedging is very expensive right now," Correa de Barros said. CONTACT: CEMIG Avenida Barbacena, 1200 Sto Agostinho 30123-970 Belo Horizonte - MG Brazil Phone +55 31 299 4900 Home Page http://www.cemig.com.br Contacts: Djalma Bastos De Morais, Chairman Geraldo De Oliveira Faria, Vice Chairman Cristiano Correa De Barros, Finance Director CESP: Debt Level Surpasses Annual Turnover ------------------------------------------ Worries are mounting at Cia. Energetica de Sao Paulo (Cesp), Brazil's third-largest power generator. According to a report by O Estado de Sao Paulo, the Brazilian utility has liabilities greater than its total revenues. In 2001, the Company posted gross sales of BRL2.3 billion, but has to pay off a BRL2.5-billion debt, which expires within 6 months. This year, the debt maturity stands at BRL955 million. The largest part of the Company's short-term (2002) maturities were already rolled-over. Cesp is negotiating a guarantee resource with BNDES (Banco Nacional de Desenvolvimento Economico e Social) for the next maturity. Cesp ended 2001 with net losses of BRL813.3 million, up by 196% from the BRL414.3 million recorded in the previous year. Operating cost also widened to BRL1.49 billion from BRL739.5 million. Results were hurt by the energy-rationing program introduced in June last year to help replenish depleted reservoir levels, and by its dollar-denominated debt, which totaled BRL6.53 billion at the end of 2001. 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 CSN: Bethlehem Steel Persistent On JV Plans -------------------------------------------- US steel company Bethlehem Steel Corporation is not giving up on its plan to form a joint venture between its Sparrow Points unit and Brazilian steel firm Cia. Siderurgica Nacional (CSN), financial daily Gazeta Mercantil reports, citing Bethlehem Steel Chairman Robert Miller. The announcement comes amid talks that are ongoing between CSN and Corus Group PLC. CSN and English-Dutch company Corus confirmed last week that they were both in negotiations, which market sources speculated involved a share swap between the companies. CSN would have 10% less than the 20% stake that Corus would have in the Brazilian company and Corus would take over part of CSN debt. Corus would also have access to CSN raw material and would compete with the European group Arcelor, which owns Acesita in Brazil and makes part of controller group of CST (Companhia Siderurgica de Tubarao). CSN, which production reaches 5mil m tons of steel per year, would penetrate Europe easier through the agreement. However, state-owned national development bank BNDES, is unsure whether to allow the Vincunha group swap its shares in CSN for Corus shares. BNDES and other creditors lent US$600 million to Vincunha group, which used its 46.5% stake in CSN as collateral. According to a BNDES source, BNDES and the other lenders want to make sure they do not lose out in the exchange. Bethlehem, headquartered in Bethlehem, Pennsylvania, is the nation's second largest integrated steel producer with revenues of about US$4.2 billion and shipments of 8.5 million tons of steel products in 2000. Bethlehem, which filed for bankruptcy protection in October, has been in negotiations with CSN since the end of last year. CONTACT: CIA SIDERURGICA NACIONAL (CSN) Rua Lauro Muller 116-36 Andar, PO Box 2736 Rio De Janeiro, Brazil, 22299-900 Phone: 55 21 5451707 Fax: 5521 5451529 Home Page: http://www.csn.com.br/english/index.htm Contact: Benjamin Steinbruch, CEO (interim basis) Antonio Mary Ulrich, Exec. Officer - Investors Relations BETHLEHEM STEEL CORPORATION 1170 Eighth Avenue Bethlehem, PA 18016 Phone: 610-694-2424 Home Page: http://www.bethsteel.com/ Contact: Robert S. Miller, Jr., Chairman/CEO Leonard M. Anthony, Senior VP/CFO SPARROWS POINT COMMERCIAL Main Office Building Sparrows Point, MD 21219-1014 Phone: 1-800-521-4789 Fax: 1-800-626-1279 City Phone: (410) 477-8484 City Fax: (410)388-3611 =============== H O N D U R A S =============== CHIQUITA BRANDS: Warns of Honduran Exit On Workers' Absenteeism --------------------------------------------------------------- Chiquita Brands International, which emerged from bankruptcy reorganization in March, could be forced to leave its banana plantations in Honduras. However, the impending exit is not attributed to financial problems or strikes that have plagued the Company before, but to a new problem: employee absenteeism. About 20% of the employees of Tela Railroad Company, the Honduran subsidiary of Chiquita Brands, were failing to show up for work on an average day, revealed the unit's vice president, Fernando Sanchez. "We're worn out, because a large portion of our 2,200 employees don't show up for work," said Sanchez. "The situation is creating a drop in banana production, which could force us to close the business." Leonel Ortiz, spokesman for the union that represent the Company's workers, blamed the absenteeism on allergies, headaches, and circulation problems he claimed were caused by the Company's use of pesticides. Chiquita Brands emerged from Chapter 11 bankruptcy protection in March and began a restructuring plan that would reduce its debt by US$700 million. The Company filed its case last November. CONTACT: CHIQUITA BRANDS INTERNATIONAL, INC. James B. Riley, Senior Vice-President/CFO Tel. +1-513-784-6307 or William T. Sandstrom, Director of Investor Relations Tel. +1-513-784-6366 URL: http://www.chiquita.com =========== M E X I C O =========== AVANTEL: CEO On Spin Control Road Trip Over WorldCom Fears ---------------------------------------------------------- Avantel CEO Oscar Rodriguez has busied himself over the past two weeks visiting the telecom company's most important clients in an effort to allay their fears spurred by the recent scandal of WorldCom Inc., reports Mexico City columnist Eduardo Torreblanca. Avantel, which is 49% owned by WorldCom has 250 very large clients, of which Rodriguez has visited 60. Avantel also lists 3,000 medium-sized clients and 1 million residential customers. WorldCom is currently mired in an accounting scandal stemming from a $3.8-billion earnings restatement. The company is working frantically to raise up to US$1 billion by selling its assets world-wide that could include its stake in privately held Avantel. Avantel for its part has repeatedly insisted that the accounting woes of WorldCom will not affect the unit's services, operations and investments, saying it is a Mexico-based corporation with autonomous administrative, financial and accounting structures. Avantel said its financial reports complied with U.S. and Mexican generally accepted accounting standards and had been audited by PriceWaterhouseCoopers. Avantel operates an 8,000 kilometer fiber optic network in Mexico through which provides long distance and broadband services to corporate and residential customers in the country. CONTACT: WORLDCOM 500 Clinton Center Drive Clinton, MS 39056 1-877-624-9266 Phone: (601) 460-5600 Fax: (601) 460-8350 E-mail: http://www.worldcom.com/ Contact: John Sidgmore, President and CEO AVANTEL SERVICIOS LOCALES, S.A. (AVANTEL LOCAL) Reforma No. 265, 6o piso, Col. Cuauhtemoc, 06500, M,xico, D.F. Tel: 5242-1004 Fax: 5242-1060 Home Page: www.avantel.com.mx/ PRICEWATERHOUSECOOPERS LLP 1301 Avenue of the Americas New York, NY 10019 Phone: 646-471-4000 Fax: 646-394-1301 Home Page: http://www.pwcglobal.com BANCA MIFEL: Disagreement Over Sale Price Leads To Impasse ---------------------------------------------------------- Talks between Banca Mifel and the Del Valle family over the latter's purchase of the control of the bank were expected to end last June after the results of the audits were released. But a conflict over the final price has created an impasse on the negotiations, raising speculations that the talks could be broken off. However, Antonio del Valle said that the talks would resume this week. "The interest in associating is still there. The problem is that we have not been able to agree a price, because in due diligence the accounts were fine and everything is very clear, but neither of the two parties find it easy to put figures on the matter," the banker said. Although Del Valle refused to discuss detailed figures, the Del Valle family is thought at first to have offered around MXN600 million (US$61.71 million) for 80% of Banca Mifel. The bank's book value currently stands at approximately MXN484 million (US$49.8 million). CINTRA: To Define Base Price By September ----------------------------------------- The base price for the proposed sale of Cintra, the holding Company for Mexicana and Aeromexico airlines, will be established by September, says Mexico City daily el Economista. Still unclear is the date at whick further details of the sale will be released. Transparencia Mexicana, the Mexican division of Transparencia Internacional which will oversee the sale process, will be the one to decide on the matter in collaboration with Cintra. The final decision, however, must come within the previously stipulated timeframe. Cintra, which is 65%-owned by the Mexican government, has seen its value plunge 42.06% since the September 11 terrorist attacks. Its "A" series shares quoted on the BMV have declined since August 31, 2001, when they were at MXN6.80 (US$0.68) each, to just MXN3.94 (US$0.39) by June this year. In August 2001, the value of Cintra's stock was MXN6.74 billion (US$677 million), but now, it's only worth MXN3.91 billion (US$393 million), reflecting a loss of MXN2.83 billion (US$283 million) in just 10 months. Cintra's stock price has been dropping since September, reaching MXN6.09 in October, MXN5.50 in December, MXN3.00 in January, MXN4.00 in February, March and April and slipped to MXN3.94 in June. Luis Gutierrez Ruvalcaba, president of Cintra, vowed that although there have been several missed opportunities to sell over the last seven years, the Company will not be sold cheaply. Cintra is coveted by major airlines as Delta and Continental, as well as by Mexican investors, for its strategic significance. Since 1995, around 85% of Cintra's shares are in the hands of the bank deposits safety institute IPAB. Merrill Lynch is the financial agent for the sale of Cintra. To see Cintra's financial statements: http://bankrupt.com/misc/Cintra.pdf CONTACT: AEROMEXICO Mayte Sera Weitzman of AeroMexico, +1-713-744-8446, or mweitzman@aeromexico.com MEXICANA DE AVIACION Jenny Jenks, Marketing Director, International Division of Mexicana Airlines, +1-210-491-9764, or ennyjenks@mexicana.com CINTRA Xola 535, Piso 16, Col. del Valle 03100 M,xico, D.F., Mexico Phone: +52-5-448-8050 Fax: +52-5-448-8055 Contacts: Jaime Corredor Esnaola, Chairman Juan Dez-Canedo Ruiz, CEO Rodrigo Ocejo Rojo, CFO OR C.P. Francisco Cuevas Feliu, Investor Relations Xola 535, Piso 16 Col. del Valle 03100 M,xico, D.F. Tel. (52) 5 448 80 50 Fax (52) 5 448 80 55 infocintra@cintra.com.mx MERRILL LYNCH & CO., INC. World Financial Center, North Tower, 250 Vesey St. New York, NY 10281 Phone: 212-449-1000 Toll Free: 800-637-7455 Home Page: http://www.merrilllynch.com Contact: David H. Komansky, Chairman and CEO E. Stanley O'Neal, President, COO, and Director Thomas H. Patrick, EVP and CFO MERRILL LYNCH MEXICO Paseo de las Palmas No. 405 Piso 8 Col. Lomas de Chapultepec 11000 Mexico City, Mexico Phone: 5255-5201-3200 Fax: 5255-5201-3222 TRANSPARENCIA MEXICANA Dulce Olivia 71 Colonia Villa Coyoac n DF, 04000 Contact: Federico Reyes Heroles, President Eduardo A. Boh>rquez, Executive Secretary National Chapter Phone/Fax: +52-5-5668 0955 Email: tmexican@data.net.mx Home Page: www.transparenciamexicana.org.mx GRUPO BITAL: Needs $550M Minimum In New Money Provisions -------------------------------------------------------- A recently-concluded revision of Grupo Financiero Bital's commercial credits portfolio by the National Banking and Securities Commission (CNBV) showed that the Mexican institution needs an equity injection of between US$550 million and US$600 million. CNBV does this kind of analysis every year for all banks. The agency was able to evaluate 51% of Bital's commercial portfolio, which gave it a good overview of the bank's needs for provision. According to CNBV Vice President Patricio Bustamante, the amount that Bital needs significantly goes beyond US$400 million, which the authorities and the bank itself estimated a few months back. After boosting its stake stake in Bital to 30% of voting rights in a surprise move in April, Banco Santander Central Hispano (BSCH) had its auditors examine the Mexican bank's loan portfolio to decide whether to attempt to buy the bank or withdraw. Directors of BSCH and its Mexican subsidiaries Santander Mexicano and Serfin were due to meet in Spain over the weekend to decide whether to increase its share or pull out of Bital. 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 SANTANDER CENTRAL HISPANO S.A. (BSCH) Plaza de Canalejas,1 28014 Madrid, Spain Phone: +34-91-558-10-31 Fax: +34-91-552-66-70 Email: investor@grupo.bsch.es Home Page: http://www.bsch.es Contacts: Ana P. Botin, Chairman, Banesto Emilio Botin-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 GRUPO MASECA: Improves Debt Profile After Making Early Payment -------------------------------------------------------------- Grupo Industrial Maseca SA (Gruma SA), the largest producer of tortillas in the U.S., reduced its debt by 7% after it made an early payment of US$50 million. The debt paid is part of the US$100-million liability coming due in February 2003, which is also part of a syndicated credit for US$400 million the group obtained in February. The debt expires in February 2004. All of the funds obtained through that credit line were used to refinance short- and medium-term liabilities, which allowed the Company to improve its debt profile. Gruma revealed that reductions in investment have improved the firm's generation of cash and that any portion of the debt that was not covered by the generation of cash would be covered with money coming from the sale of non-strategic assets. CONTACTS: Rogelio S nchez Email: rogelio_sanchez@gruma.com Tel. (52)81 8399-33-11 Lilia G�mez Email: lilia_gomez@gruma.com Tel. (52)81 8399-33-24 Cecilia Rodr�guez Email: cecilia_rodriguez@gruma.com Tel. (52)81 8399-33-49 CORPORATE HEADQUARTERS Gruma S.A. de C.V. y Subsidiarias Calzada del Valle 407 Ote. San Pedro, Garza Garc�a, N.L. M,xico CP 66220 (52)81 8399-33-00 DEPOSITARY & REGISTRAR OF AMERICAN DEPOSITARY RECEIPTS Citibank N.A., A member of Citigroup Depositary Receipts Department 111 Wall Street, 20th Floor/ Zone 7 New York, New York 10043 Tel. (212) 657.4665 Fax. (212) 825.5398/2103 E-mail: miguel.perez-lafaurie@citicorp.com Website: http://www.citibank.com/adr ISPAT INTERNATIONAL: Extends Exchange, Consent Solicitation Time ---------------------------------------------------------------- Ispat International N.V. ("Ispat"), announced Friday that Ispat Mexicana, S.A. de C.V. ("Imexsa"), Ispat's Mexican operating subsidiary, has extended its exchange offer for all outstanding 10-1/8% Senior Structured Export Certificates due 2003 of Imexsa Export Trust No. 96-1 (the "Senior Certificates"). The exchange offer will now expire at 5:00 p.m., New York City time, on July 29, 2002, unless otherwise extended or terminated by Imexsa (the "Expiration Date"). The exchange offer had been scheduled to expire at 5:00 p.m., New York City time, on July 12, 2002. The exchange offer is being extended to allow for additional time to complete documentation required under the agreed upon terms of the exchange. Under the terms of the exchange offer, Imexsa will offer to exchange 10- 5/8% Senior Structured Export Certificates due 2005 to be issued by Imexsa Export Trust No. 96-1 (the "New Senior Certificates") for Senior Certificates validly tendered and accepted for exchange. The New Senior Certificates will be fully and unconditionally guaranteed by Ispat, Grupo Ispat International S.A. de C.V. ("Grupo") and certain of the subsidiaries of Imexsa on a senior basis. The New Senior Certificates will also be secured on a pro rata basis with Imexsa's bank loans by liens on certain assets of Imexsa and by a pledge of the stock of Imexsa and Grupo. The exchange offer is conditioned upon the holders of not less than 96% of the outstanding principal amount of Senior Certificates having validly tendered and not withdrawn their Senior Certificates prior to the Expiration Date and upon the other terms and conditions set forth in Imexsa's Supplemental Offering Memorandum and Consent Solicitation Statement dated June 17, 2002, which is supplemental to the Offering Memorandum and Consent Solicitation Statement dated January 24, 2002. In connection with the exchange offer, Imexsa is also soliciting consents from holders of Senior Certificates to, among other things, amend certain agreements governing the Senior Certificates. Holders tendering their Senior Certificates in the exchange offer must also deliver consents. Consents may not be following the Expiration Date, unless the exchange offer is terminated. Requests for documentation should be made to the Information Agent for the exchange offer, D.K. King & Co., Inc., at (800) 847-4870. Questions regarding the transaction should be directed to financial advisor to Imexsa, Dresdner Kleinwort Wasserstein at (212) 969-2700. This announcement is not an offer to purchase or a solicitation of consents with respect to any Senior Certificates or an offer of New Senior Certificates for sale. Securities may not be offered and sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States must be made by means of a prospectus that may be obtained from the issuer or selling security holder and will contain detailed information about the company and management, as well as financial statements. To see latest financial statements: http://bankrupt.com/misc/Ispat_International.txt CONTACT: ISPAT INTERNATIONAL N.V. Annanya Sarin, Head of Communications Tel.: + 44-20-7543-1162 / +31-10-404-6738 T.N Ramaswamy, Director - Finance Tel.: + 44 20 7543 1147 CITIGATE DEWE ROGERSON John McInerney, Investor Relations Tel.: +1 212 419 4219 *********** 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. 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