/raid1/www/Hosts/bankrupt/TCRLA_Public/020806.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, August 6, 2002, Vol. 3, Issue 154
Headlines
A R G E N T I N A
DINAR LINEAS: Recession Forces to the Auction Block
PEREZ COMPANC: Argentine Leader Likely To Halt Petrobras Buy
PEREZ COMPANC: Fitch Ratings Downgrades Pecom Energia To 'DD'
TECPETROL: To Issue $400M In Oil-Backed Bonds
B E R M U D A
GLOBAL CROSSING: Preferred Shareholders Commence Class Action
B R A Z I L
BANCO ALFA: Fitch Reviews Debt Ratings for Possible Downgrade
BANCO BCN: Debt Ratings Now On Rating Watch Negative
BANCO BRADESCO: Fitch Puts Debt Ratings on Rating Watch Negative
BANCO BRASCAN: Long-term Currency Ratings on Negative Watch
BANCO DO BRASIL: Fitch Moves to Watch Negative on Market Woes
BANCO FIBRA: Market, Currency Prompt Fitch Watch Downgrade
BANCO ITAU: Debt Ratings on Rating Watch Negative
BANCO SAFRA: Sovereign Ratings Prompt Fitch Watch Downgrade
BANCO SANTOS: Foreign Currency Debt Ratings on Rating Watch Neg.
BANCO SUL AMERICA: Fitch Lowers Rating Watch as Market Worsens
BANCO VOTORANTIM: Watch Negative Called as Sovereign Rates Drop
BBV BANCO: Fitch Places Debt Ratings on Rating Watch Negative
BRADESCO SEGUROS: Fitch Affirms IFS Rating at `B+'
CSN: Minority Investors To Question CEO On Metalic Buy
GLOBOPAR: Moody's Downgrades Ratings to `B3'
LOJAS ARAPUA: Brazilian Court Declares Company Bankrupt
UNIBANCO: Fitch Puts Debt Ratings on Rating Watch Negative
C H I L E
AES GENER: Seeks Maturity Extension on $476M Bonds
ENERSIS: $1.4B Debt Refinancing Likely To Increase Costs
C O L O M B I A
COLOR SIETE: To Restructure Debt Under Ley 550
E L S A L V A D O R
MAI: Lack of Contracts Prompts Factory Closure
M E X I C O
EMPRESAS ICA: S&P Downgrades Credit Rating to `CCC'
EMPRESAS ICA: Reports Second Quarter 2002 Results
GRUPO MEXICO: Copper Market Crisis Keeps Mines Closed
P E R U
BACKUS: Cisneros Acquires 14% Stake
U R U G U A Y
ANCAP: Moody's Lowers Issuer Rating to `B3'
URUGUAYAN BANKS: Legislation Could Freeze $2.2B in Deposits
- - - - - - - - - -
=================
A R G E N T I N A
=================
DINAR LINEAS: Recession Forces to the Auction Block
---------------------------------------------------
Dinar Lineas Aereas is heading to the auction block, as its
owners, Argentina's Desimone family, begin to crumble under the
weight of the recession, relates Dow Jones Newswires.
The Desimone family was forced to sell its air travel business,
which it once counted on for earnings growth, to rival American
Falcon due to the devaluation of the peso, a labor dispute and
inability to get affordable credit from banks.
"We just couldn't survive anymore in this business environment,"
Dinar Chief Executive Officer Alberto Desimone said in an
interview. "We were forced into taking the best offer on the
table."
Dinar officials declined to say how much American Falcon will pay
for its airline business. But Argentine media reported the deal
includes American Falcon's assumption of Dinar's US$30-million
debt. American Falcon officials couldn't be reached for comment.
The Desimone family decided to sell its airline business Thursday
after the Labor Ministry ordered management and employees into
compulsory conciliation, the result of a gridlock between
managers and workers after Dinar cuts its payroll to shore up its
finances.
Cost-cutting measures, according to Desimone, came after its air
travel business turned unprofitable after President Eduardo
Duhalde in January unfettered the peso from an 11-year peg to the
U.S. dollar at a 1:1 ratio. The peso's fast deterioration - it
has lost more than 70% of its value since - has made dollar-debt
financing increasingly difficult.
CONTACT: DINAR LINEAS AEREAS
Av. R. S. Pe¤a 933, Capital Federal, Buenos Aires
Argentina
Phone: (+54)(11) 53711111
Fax: 43260134
PEREZ COMPANC: Argentine Leader Likely To Halt Petrobras Buy
------------------------------------------------------------
Petroleo Brasileiro SA's (Petrobras) bid to acquired Argentine
energy company Perez Companc is likely to suffer a setback.
A Despues de Hora news program report says that Argentine
President Eduardo Duhalde may try to block Petrobras' US$1.13-
billion takeover bid of Perez Companc SA over concerns that much
of the country's strategic energy reserves would fall into the
hands of an oil company controlled by a foreign economic power.
In a related story, the Buenos Aires Economico newspaper said in
its Friday edition that Duhalde would call Brazilian President
Fernando Henrique Cardoso to explain his administration's
opposition to the deal.
Petrobras announced in July that it is seeking a 58.6% stake in
Perez Companc for US$754.6 million in cash and US$370.5 million
in seven-year bonds. Petrobras also said it wants a 47.1% stake
in Petrolera Perez Companc, a smaller oil company which is wholly
owned by the Perez Companc family, for US$56.7 million in cash.
Perez Companc is controlled by a family of the same name. The
Company, an integrated energy firm based in Buenos Aires, has oil
and natural gas fields scattered throughout Argentina and Latin
America.
The company also owns roadside gasoline retailers, refineries,
power-generating assets, and has a stake in the country's largest
natural gas transportation line, TGS SA.
To see financial statements:
http://bankrupt.com/misc/Perez_Companc.pdf
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: Fitch Ratings Downgrades Pecom Energia To 'DD'
-------------------------------------------------------------
Fitch Ratings has lowered Pecom Energia S.A.'s (Pecom) senior
unsecured foreign and local currency ratings to 'DD' from 'C'.
The rating actions reflect completion of Pecom's distressed debt
exchange involving US$997.5 million of existing notes.
Pecom's exchange offer involved its outstanding 7 7/8% notes due
August 2002; 9.0% notes due January 2004; 9.0% notes due May
2006; and 8 1/8% notes due July 2007. The company accepted
tenders from existing note holders equal to an estimated 91.8% of
the total aggregate principal amount of the existing notes
outstanding. Pecom offered four series of new notes carrying the
same interest rate of each series of existing notes but extending
their corresponding maturity by three years. An estimated US$845
million in new securities were issued as part of the exchange.
Fitch will maintain Pecom's ratings at 'DD' for a period of 30
calendar days. The ratings will then be reviewed to reflect the
company's financial flexibility and credit profile following the
distressed exchange.
Pecom Energia is one of the most vertically integrated energy
conglomerates in Latin America. Core business activities include
oil and gas exploration, production and transportation; refining
and marketing; petrochemicals; and electricity. Other businesses
include small investments in agriculture, forestry and mining.
Pecom is controlled (98.21%) by Perez Companc S.A., an Argentine
holding company. On July 22, 2002, Petroleo Brasileiro S.A.
(Petrobras) announced an agreement in principle to acquire a
58.6% controlling interest in Pecom.
CONTACT: FITCH RATINGS
Alejandro Bertuol, 212/908-0393 (New York)
Ana Paula Ares, +54-11-4327-2444 (Buenos Aires)
James Jockle, 212/908-0547 (New York, Media Relations)
TECPETROL: To Issue $400M In Oil-Backed Bonds
---------------------------------------------
As part of an effort to lengthen maturities on its debt,
Tecpetrol, the Argentine upstream investment unit of the
industrial group Techint, plans to issue up to US$400 million
oil-revenue backed securities this week, Dow Jones Newswires
reports, citing El Cronista newspaper.
Tecpetrol, which is the seventh-largest oil producer in
Argentina, has up to US$230 million in debt held by banks and
bondholders.
The Company pledged to share part of the estimated US$70 million
to US$80 million in revenue it nets yearly from overseas oil
sales to creditors who accept the new debt.
The Company said last week that the Argentine Central Bank
approved letting the Company cache export dollars offshore to
refinance its debt.
If creditors accept the Company's proposal, it would allow
Tecpetrol to plow working capital into its operations and keep
its wells pumping and drilling for new petrolium reserves.
Under the type of structuring the Argentine energy company has
proposed, Tecpetrol's overseas customers would deposit what they
owe the oil producer in an offshore escrow account, officials
have said. Investors who agree to the debt restructuring deal
would be paid from that account.
CONTACT: TECPETROL
Carlos M. Della Paolera 299
floor (20 C1001ADA) Buenos Aires
Argentina
Phone: (54-11) 4018-5900
Fax: (54-11) 4018-5939
Home Page: http://www.tecpetrol.com/
=============
B E R M U D A
=============
GLOBAL CROSSING: Preferred Shareholders Commence Class Action
-------------------------------------------------------------
On July 26, 2002, Global Crossing preferred shareholders,
represented by the law firms of Wolf Haldenstein Adler Freeman &
Herz LLP and Greenfield & Goodman LLC, commenced a class action
on behalf of a class (the "Class") of persons who purchased the
Preferred stock of Global Crossing ("Global Crossing" or the
"Company") (OTC Bulletin Board: GBLXQ.PK) between July 23, 1999
and November 10, 2001, inclusive (the "Class Period"), seeking to
pursue remedies under the Securities Exchange Act of 1934. The
complaint filed in the actions names as defendants Salomon and
its star telecommunication analyst Jack Grubman. The action is
pending in the United States District Court for the Southern
District of New York.
The case name is Shuster v. Salomon Smith Barney, et al. A copy
of the complaint filed in this action is available from the
Court, or can be viewed on the Wolf Haldenstein Adler Freeman &
Herz LLP website at www.whafh.com.
This action arises as a result of the issuance by the Defendants
of analyst reports regarding Global Crossing, which recommended
the purchase of Global Crossing securities while failing 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.
Purchasers of Global Crossing Preferred Stock during the Class
Period may request to be appointed by the Court as lead plaintiff
no later than October 1, 2002. A lead plaintiff is a
representative party that acts on behalf of other class members
in directing the litigation. In order to be appointed lead
plaintiff, the Court must determine that the class member's claim
is typical of the claims of other class members, and that the
class member will adequately represent the class. Under certain
circumstances, one or more class members may together serve as
"lead plaintiff."
For more information, contact:
Robert Abrams, Esq.
George Peters
Derek Behnke
Wolf Haldenstein Adler Freeman & Herz LLP
270 Madison Avenue
New York, NY 10016
Phone: 800-575-0735
Fax: 212-545-4677
Website: www.whafh.com
E-mail: classmember@whafh.com
Richard D. Greenfield, Esq.
Greenfield & Goodman LLC
24579 Deep Neck Road
Royal Oak, MD 21662
Telephone: 410-745-4149
Fax: 419-745-4158
E-mail: whitehatrdg@earthlink.net
===========
B R A Z I L
===========
BANCO ALFA: Fitch Reviews Debt Ratings for Possible Downgrade
-------------------------------------------------------------
Fitch Ratings placed Friday the `B+' long-term foreign currency
debt ratings of Banco Alfa de Investimento on Rating Watch
Negative; all other ratings of the bank remain unchanged.
The Rating Watch follows a similar action taken by Fitch Thursday
with Brazil's sovereign rating. Fitch Ratings has placed Brazil's
sovereign ratings on Rating Watch Negative status in light of
continued unfavorable market conditions facing the country and
the consequent impact on credit fundamentals. The ratings remain
at 'B+' for both foreign and local currency (Brazilian real)
denominated obligations.
CONTACT: Fitch Ratings
Peter Shaw, 212/908-0553
Rafael Guedes, +55 11 287 3177
James Jockle, 212/908-0547 (Media Relations)
BANCO BCN: Debt Ratings Now On Rating Watch Negative
----------------------------------------------------
Fitch Ratings placed Friday the `B+' long-term foreign and local
currency debt ratings of Banco BCN on Rating Watch Negative; all
other ratings of the bank remain unchanged.
The Rating Watch follows a similar action taken by Fitch Thursday
with Brazil's sovereign rating. Fitch Ratings has placed Brazil's
sovereign ratings on Rating Watch Negative status in light of
continued unfavorable market conditions facing the country and
the consequent impact on credit fundamentals. The ratings remain
at 'B+' for both foreign and local currency (Brazilian real)
denominated obligations.
CONTACT: Fitch Ratings
Peter Shaw, 212/908-0553
Rafael Guedes, +55 11 287 3177
James Jockle, 212/908-0547 (Media Relations)
BANCO BRADESCO: Fitch Puts Debt Ratings on Rating Watch Negative
----------------------------------------------------------------
Fitch Ratings placed Friday the `B+' long-term foreign currency
debt ratings of Banco Bradesco on Rating Watch Negative; all
other ratings of the bank remain unchanged.
The Rating Watch follows a similar action taken by Fitch Thursday
with Brazil's sovereign rating. Fitch Ratings has placed Brazil's
sovereign ratings on Rating Watch Negative status in light of
continued unfavorable market conditions facing the country and
the consequent impact on credit fundamentals. The ratings remain
at 'B+' for both foreign and local currency (Brazilian real)
denominated obligations.
CONTACT: Fitch Ratings
Peter Shaw, 212/908-0553
Rafael Guedes, +55 11 287 3177
James Jockle, 212/908-0547 (Media Relations)
BANCO BRASCAN: Long-term Currency Ratings on Negative Watch
-----------------------------------------------------------
Fitch Ratings puts Banco Brascan's `B+' long-term foreign and
local currency debt ratings on Rating Watch Negative; all other
ratings of the bank remain unchanged.
The Rating Watch follows a similar action taken by Fitch Thursday
with Brazil's sovereign rating. Fitch Ratings has placed Brazil's
sovereign ratings on Rating Watch Negative status in light of
continued unfavorable market conditions facing the country and
the consequent impact on credit fundamentals. The ratings remain
at 'B+' for both foreign and local currency (Brazilian real)
denominated obligations.
CONTACT: Fitch Ratings
Peter Shaw, 212/908-0553
Rafael Guedes, +55 11 287 3177
James Jockle, 212/908-0547 (Media Relations)
BANCO DO BRASIL: Fitch Moves to Watch Negative on Market Woes
-------------------------------------------------------------
Banco do Brasil had its `B+' long-term foreign currency debt
ratings placed by Fitch Ratings on Rating Watch Negative. All
other ratings of the bank remain unchanged.
The Rating Watch follows a similar action taken by Fitch Thursday
with Brazil's sovereign rating. Fitch Ratings has placed Brazil's
sovereign ratings on Rating Watch Negative status in light of
continued unfavorable market conditions facing the country and
the consequent impact on credit fundamentals. The ratings remain
at 'B+' for both foreign and local currency (Brazilian real)
denominated obligations.
CONTACT: Fitch Ratings
Peter Shaw, 212/908-0553
Rafael Guedes, +55 11 287 3177
James Jockle, 212/908-0547 (Media Relations)
BANCO FIBRA: Market, Currency Prompt Fitch Watch Downgrade
----------------------------------------------------------
Fitch Ratings put Banco Fibra's `B+' long-term foreign currency
debt ratings on Rating Watch Negative. All other ratings of the
bank remain unchanged.
The Rating Watch follows a similar action taken by Fitch Thursday
with Brazil's sovereign rating. Fitch Ratings has placed Brazil's
sovereign ratings on Rating Watch Negative status in light of
continued unfavorable market conditions facing the country and
the consequent impact on credit fundamentals. The ratings remain
at 'B+' for both foreign and local currency (Brazilian real)
denominated obligations.
CONTACT: Fitch Ratings
Peter Shaw, 212/908-0553
Rafael Guedes, +55 11 287 3177
James Jockle, 212/908-0547 (Media Relations)
BANCO ITAU: Debt Ratings on Rating Watch Negative
-------------------------------------------------
Fitch Ratings placed the `B+' long-term foreign and local
currency debt ratings of Banco Itau on Rating Watch Negative. All
other ratings of the bank remain unchanged.
The Rating Watch follows a similar action taken by Fitch Thursday
with Brazil's sovereign rating. Fitch Ratings has placed Brazil's
sovereign ratings on Rating Watch Negative status in light of
continued unfavorable market conditions facing the country and
the consequent impact on credit fundamentals. The ratings remain
at 'B+' for both foreign and local currency (Brazilian real)
denominated obligations.
CONTACT: Fitch Ratings
Peter Shaw, 212/908-0553
Rafael Guedes, +55 11 287 3177
James Jockle, 212/908-0547 (Media Relations)
BANCO SAFRA: Sovereign Ratings Prompt Fitch Watch Downgrade
-----------------------------------------------------------
Fitch Ratings placed Banco Safra's `B+' long-term foreign and
local currency debt ratings on Rating Watch Negative. All other
ratings of the bank remain unchanged.
The Rating Watch follows a similar action taken by Fitch Thursday
with Brazil's sovereign rating. Fitch Ratings has placed Brazil's
sovereign ratings on Rating Watch Negative status in light of
continued unfavorable market conditions facing the country and
the consequent impact on credit fundamentals. The ratings remain
at 'B+' for both foreign and local currency (Brazilian real)
denominated obligations.
CONTACT: Fitch Ratings
Peter Shaw, 212/908-0553
Rafael Guedes, +55 11 287 3177
James Jockle, 212/908-0547 (Media Relations)
BANCO SANTOS: Foreign Currency Debt Ratings on Rating Watch Neg.
----------------------------------------------------------------
Banco Santos' `B+' long-term foreign currency debt ratings were
placed by Fitch Ratings on Rating Watch Negative. All other
ratings of the bank remain unchanged.
The Rating Watch follows a similar action taken by Fitch Thursday
with Brazil's sovereign rating. Fitch Ratings has placed Brazil's
sovereign ratings on Rating Watch Negative status in light of
continued unfavorable market conditions facing the country and
the consequent impact on credit fundamentals. The ratings remain
at 'B+' for both foreign and local currency (Brazilian real)
denominated obligations.
CONTACT: Fitch Ratings
Peter Shaw, 212/908-0553
Rafael Guedes, +55 11 287 3177
James Jockle, 212/908-0547 (Media Relations)
BANCO SUL AMERICA: Fitch Lowers Rating Watch as Market Worsens
--------------------------------------------------------------
Fitch Ratings placed the `B+' long-term foreign currency debt
ratings of Banco Sul America on Rating Watch Negative. All other
ratings of the bank remain unchanged.
The Rating Watch follows a similar action taken by Fitch Thursday
with Brazil's sovereign rating. Fitch Ratings has placed Brazil's
sovereign ratings on Rating Watch Negative status in light of
continued unfavorable market conditions facing the country and
the consequent impact on credit fundamentals. The ratings remain
at 'B+' for both foreign and local currency (Brazilian real)
denominated obligations.
CONTACT: Fitch Ratings
Peter Shaw, 212/908-0553
Rafael Guedes, +55 11 287 3177
James Jockle, 212/908-0547 (Media Relations)
BANCO VOTORANTIM: Watch Negative Called as Sovereign Rates Drop
---------------------------------------------------------------
Fitch Ratings placed the `B+' long-term foreign currency debt
ratings of Banco Votorantim on Rating Watch Negative. All other
ratings of the bank remain unchanged.
The Rating Watch follows a similar action taken by Fitch Thursday
with Brazil's sovereign rating. Fitch Ratings has placed Brazil's
sovereign ratings on Rating Watch Negative status in light of
continued unfavorable market conditions facing the country and
the consequent impact on credit fundamentals. The ratings remain
at 'B+' for both foreign and local currency (Brazilian real)
denominated obligations.
CONTACT: Fitch Ratings
Peter Shaw, 212/908-0553
Rafael Guedes, +55 11 287 3177
James Jockle, 212/908-0547 (Media Relations)
BBV BANCO: Fitch Places Debt Ratings on Rating Watch Negative
-------------------------------------------------------------
BBV Banco had its `B+' long-term foreign currency debt ratings
placed on Rating Watch Negative by Fitch Ratings. All other
ratings of the bank remain unchanged.
The Rating Watch follows a similar action taken by Fitch Thursday
with Brazil's sovereign rating. Fitch Ratings has placed Brazil's
sovereign ratings on Rating Watch Negative status in light of
continued unfavorable market conditions facing the country and
the consequent impact on credit fundamentals. The ratings remain
at 'B+' for both foreign and local currency (Brazilian real)
denominated obligations.
CONTACT: Fitch Ratings
Peter Shaw, 212/908-0553
Rafael Guedes, +55 11 287 3177
James Jockle, 212/908-0547 (Media Relations)
BRADESCO SEGUROS: Fitch Affirms IFS Rating at `B+'
--------------------------------------------------
Fitch Ratings affirmed Friday Bradesco Seguros' IFS (Insurance
Financial Strength) rating at 'B+'. In line with the Rating Watch
Negative assigned to Brazil's sovereign ratings, the IFS rating
for Bradesco Seguros' have been placed on Rating Watch Negative.
Fitch placed Thursday Brazil's sovereign rating on Rating Watch
Negative status in light of continued unfavorable market
conditions facing the country and the consequent impact on credit
fundamentals. The ratings remain at 'B+' for both foreign and
local currency (Brazilian real) denominated obligations.
CONTACT: Fitch Ratings
Peter Shaw, 212/908-0553
Rafael Guedes, +55 11 287 3177
James Jockle, 212/908-0547 (Media Relations)
CSN: Minority Investors To Question CEO On Metalic Buy
------------------------------------------------------
Benjamin Steinbruch, the CEO and chairman of CSN, will be
subjected to scrutiny following the Rio de Janeiro-based flat
steel maker's recent acquisition of fellow Brazilian firm soda
can maker Metalic.
According to Business News Americas, the national association of
capital market investors, Animec, which represents small
investors, plan to question Steinbruch. The group wants to know
if the acquisition will add value to CSN's operations, whether
there was a conflict of interest since Steinbruch owns both
companies and if due diligence was carried out to determine
Metalic's value.
CSN acquired the metal can maker in July for a price of BRL109
million (US$34 million) plus BRL107 million (US$33 million) in
debt.
At the same time, Animec is waiting for the conclusion of legal
opinions on the planned merger between CSN and Anglo-Dutch steel
group Corus.
"One of the main doubts is if this merger is not a sale in
disguise. We want Steinbruch to explain to us why there was not a
public tender offer for the shares," Animec president Valdir
Correa was quoted as saying.
To see latest financial statements:
http://bankrupt.com/misc/CSN.pdf
CONTACT: CIA SIDERURGICA NACIONAL (CSN)
Rua Lauro Muller 116-36 Andar, PO Box 2736
Rio De Janeiro, Brazil, 22299-900
Phone: +011-55-21-2586-1442
+011-55-21-2586-1347
Home Page: http://www.csn.com.br/english/index.htm
Contact:
Antonio Mary Ulrich, Exec. Officer - Investor Relations
GLOBOPAR: Moody's Downgrades Ratings to `B3'
--------------------------------------------
Moody's Investors Service lowered the ratings of Globo
Comunicacoes e Participacoes S.A. ("Globopar") to B3 from B1. The
ratings downgraded are Globopar's US$860 million of Euro medium
term notes, senior unsecured issuer rating, and senior implied
rating. The rating outlook is negative.
The cut on Globopar's ratings reflect the decline in the
performance of its most important subsidiary, TV Globo, during
2001, the impact of the devaluation of the Real on the Company's
ability to service its sizable foreign debt obligations, the
investment requirements of the Company's other subsidiaries, and
its diminishing liquidity.
Further, Globopar's financial flexibility is constrained by its
Real-based revenue generation versus certain foreign currency
denominated expenses and debt. As of March 31, 2002, the
Company's financial leverage (debt-to-EBITDA) remains very high
at about 11 times after adjusting for the US$135 million
contributed by the Marinho family for debt reduction. Moreover,
as a Brazilian operator, Globopar remains vulnerable to the
inherent economic and currency volatility.
The negative outlook considers the limitations on Globopar's
ability to grow (due to its already dominant position),
particularly during an economic downturn. Despite the meaningful
equity contribution by the Marinho family, the outlook also
incorporates Moody's concerns regarding the Company's liquidity,
given the country's economic volatility, which is particularly
intense in anticipation of the October presidential elections and
the challenge that remains to rebuild the cash balances that the
Company has historically maintained, Moody's said.
Meaningful debt reduction, stabilization of the Brazilian
currency and evidence of the financial independence of its pay TV
asset, Net Servicos, as well as the increasing independence of
its other subsidiaries would be necessary before the outlook
would become stable.
Anticipated regulatory changes allowing foreign ownership in
Brazilian media companies could lead to improved valuations and
interest in Globopar's assets over the long-term and thus a more
positive outlook.
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
LOJAS ARAPUA: Brazilian Court Declares Company Bankrupt
-------------------------------------------------------
The Brazilian Court declared Lojas Arapua and its subsidiaries
bankrupt after the local retail chain failed to pay any of the
installments relating to its bankruptcy filing in June 1998.
The court also ordered the closure of the group's 100 outlets.
Evadin, the group's major creditor with almost BRL120 million in
credits (12% of the total liabilities), will be the trustee.
Arapua has a monthly turnover of BRL40 million. It has debts of
BRL1.2 billion.
UNIBANCO: Fitch Puts Debt Ratings on Rating Watch Negative
----------------------------------------------------------
Fitch Ratings placed the `B+' long-term foreign currency debt
ratings of Unibanco on Rating Watch Negative. All other ratings
of the bank remain unchanged.
The Rating Watch follows a similar action taken by Fitch Thursday
with Brazil's sovereign rating. Fitch Ratings has placed Brazil's
sovereign ratings on Rating Watch Negative status in light of
continued unfavorable market conditions facing the country and
the consequent impact on credit fundamentals. The ratings remain
at 'B+' for both foreign and local currency (Brazilian real)
denominated obligations.
CONTACT: Fitch Ratings
Peter Shaw, 212/908-0553
Rafael Guedes, +55 11 287 3177
James Jockle, 212/908-0547 (Media Relations)
=========
C H I L E
=========
AES GENER: Seeks Maturity Extension on $476M Bonds
--------------------------------------------------
Chilean generator AES Gener is looking to postpone the maturity
date of US$476 million in bonds coming due in March 1, 2005.
Failure to push back the deadline may hinder AES Gener's planned
investments.
As part of the effort, the Company has called on the holders of
the bonds to discuss the issue. Chile's private pension funds
(AFPs) are the primary owners of the bonds.
Earlier last week, AES Gener announced it had refinanced a US$40-
million debt with ABN Amro. Other obligations include a US$2000-
million Yankee bond issue due 2006.
AES Gener is the second largest electricity generation group in
Chile in terms of operating revenue and generating capacity with
an installed capacity of 1,757 MW composed of 1,512 MW of thermal
and 245 MW of hydro generating capacity. The company operates
most of the thermal electric power plants in the country. AES
Gener serves both the Central Interconnection System (SIC) and
Northern Interconnection System (SING) through various
subsidiaries and related companies. Gener is 98.65%-owned by AES.
AES has invested about $7 billion in Latin America, including its
purchase of AES Gener at end 2000.
AES Gener has about US$1.5 billion in debt, according to ratings
company Moody's Investors Service.
CONTACT: AES GENER S.A.
Mariano Sanchez Fontecilla 310 Piso 3
Santiago de Chile
Phone: (56-2) 6868900
Fax: (56-2) 6868991
Home Page: www.gener.com
Contact:
Robert Morgan, Chief Executive
Laurence Golborne Riveros, Chief Financial Officer
ENERSIS: $1.4B Debt Refinancing Likely To Increase Costs
--------------------------------------------------------
Enersis SA, South America's second-biggest energy company, may
just have to find itself dealing with increasing costs and
pressure on its earnings, as it seeks to refinance maturing debt,
analysts suggest.
According to a Bloomberg report, the Latin American unit of
Spain's Endesa SA plans to roll over US$1.4 billion of debt due
in less than a year. Such a move, according to analysts, may
increase its financing costs.
"Their financing costs will end up higher," said Mariela
Iturriaga, head of research at BBVA Corredores de Bolsa BHIF. She
said the Company will make about US$500 million in interest
payments on debt this year.
Enersis, which has US$9.3 billion of debt, is already
renegotiating part of US$250 million of its Argentine units'
debt, some of which is overdue, said Juan Ignacio Dominguez, the
Company's deputy chief executive, on a conference call with
analysts. The Company also has US$341 million in debt in Brazil
and US$561 million in Chile coming due in less than a year.
Enersis needs to cut spending and costs after revenue fell
because of economic slowdowns and declining currencies in Brazil,
Argentina and other Latin American countries in which it has
investments.
Second-quarter revenue at Enersis fell 26% to CLP548.4 billion
pesos from CLP745 billion a year ago after currency declines in
the countries in which it has businesses. Net income rose 14% to
CLP7.7 billion from CLP6.7 billion a year earlier because of one-
time gains related to changes in Chilean accounting rules.
A bankruptcy or government takeover at the Company's Argentine
units Hidroelectrica El Chocon SA and Edesur SA could trigger
early repayment of debt by Enersis. A failure to pay debt at the
two units wouldn't trigger repayment.
A default at Argentine unit Central Costanera SA could trigger
early repayment of Enersis' debt, though such a situation isn't
expected to happen according to the company's CEO. Central
Costanera is already negotiating with lenders, Dominguez said.
To see financial statements:
http://bankrupt.com/misc/Enersis.pdf
CONTACT: ENERSIS
Investor Relations:
Ricardo Alvial
Chief Investments & Risks Officer of Enersis
Email: ram@e.enersis.cl
Phone: (562) 353-4682
Susana Rey, srm@e.enersis.cl
Ximena Rivas, mxra@e.enersis.cl
Pablo Lanyi-Grunfeldt, pll@e.enersis.cl
===============
C O L O M B I A
===============
COLOR SIETE: To Restructure Debt Under Ley 550
----------------------------------------------
Comercializadora Internacional Color Siete, a Colombian
manufacturer of men's and women's clothing, got approval from the
Superintendencia de Sociedades to seek an agreement with its
creditors and restructure its finances under the parameters of
the Ley 550 bankruptcy law, reports Portafolio.
Authorities however are still seeking a qualified person to
oversee the process since the person it initially appointed
declined to accept the position.
Color Siete was one of the more successful companies in the
sector, with ten outlets in Colombia and 22 in total in Latin
America, through a franchise system. It exports to Mexico, Puerto
Rico, Venezuela, Panama, Ecuador, Honduras and the US through a
partnership with the Graj and Gustavsend company.
In 2001, the Company had sales of COP9.423 billion and losses of
COP797 million.
=====================
E L S A L V A D O R
=====================
MAI: Lack of Contracts Prompts Factory Closure
----------------------------------------------
Taiwanese-owned garment factory Merchants Apparel Industrial of
El Salvador (MAI) last week shuttered its business located in the
International Free Zone of the town of Olocuilta, in La Paz
province, due to lack of contracts, reports EFE. The closure,
confirmed by El Salvadoran Economy Minister Miguel Lacayo, left
400 women jobless.
"Unfortunately, the Company simply does not have the contracts to
continue operating in the U.S. market, which remains in a low-
growth phase, practically in recession," Lacayo said.
MAI is the third Taiwanese-owned company to shut its business in
El Salvador this year, said legislator Calixto Mejia of the
leftist Farabundo Marti National Liberation Front (FMLN), the
country's largest opposition party.
The Company was still under investigation relating to July's
massive poisoning due to chlorine leaks that affected hundreds of
workers when it exited its business.
The Labor Ministry insists that the incident wasn't just chlorine
leak but a case of "criminal sabotage with tear gas."
===========
M E X I C O
===========
EMPRESAS ICA: S&P Downgrades Credit Rating to `CCC'
---------------------------------------------------
Standard & Poor's lowered the corporate credit rating of Empresas
ICA Sociedad Controladora SA to `CCC' from `B.' The rating
action, which is the third downgrade for Empresas ICA this year,
came after the largest construction company in Mexico fell behind
on payments to suppliers.
Empresas ICA, whose credit rating is now eight rating levels
below investment grade, has reported operating losses for the
last three consecutive years, raising investor concern it may not
be able to meet payments on its US$531 million of debt.
Moreover, the weak economy hindered the projected pick up in home
construction expected when President Vicente Fox was inaugurated
in 2000, the ratings company noted.
To see financial statements:
http://bankrupt.com/misc/Empresas_ICA.pdf
CONTACTS: EMPRESAS ICA SOCIEDAD CONTROLADORA S.A. DE C.V.
Bernardo Quintana Isaac, Chairman/Pres/CEO
Jos, L. Guerrero Alvarez, EVP Finance and CFO
THEIR ADDRESS:
Mineria No. 145, Colonia Escand>n
11800 Mexico, D.F., Mexico
Phone: +52-55-5272-9991
Fax: +52-55-5227-5012
URL: http://www.ica.com.mx
EMPRESAS ICA: Reports Second Quarter 2002 Results
-------------------------------------------------
Empresas ICA Sociedad Controladora, S.A. de C.V. (BMV and NYSE:
ICA), the largest engineering, construction, and procurement
company in Mexico, announced its results for the second quarter
of 2002. ICA recorded second quarter revenue of Ps. 1,758 million
and an operating profit of Ps. 35 million, which represents an
operating margin of 2.0 percent.
ICA noted the following highlights:
- As of June 30, 2002, total debt fell Ps. 1,269 million compared
to total debt as of June 30, 2001.
- During the second quarter 2002, ICA recorded net new contracts
and project enlargements in backlog worth Ps. 1,012 million.
- ICA generated Ps. 76.8 million from divestments in the second
quarter.
Net loss of majority interest for the second quarter of 2002 was
Ps. 426 million, compared to a net loss of majority interest of
Ps. 86 million in the same quarter of 2001.
CONSOLIDATED RESULTS
ICA recorded second quarter revenue of Ps. 1,758 million, 25
percent below the second quarter of 2001. The overall reduction
in revenue resulted primarily from the conclusion of projects in
Civil Construction, which have not been replaced by new
contracts. Civil Construction has not contracted significant new
projects as a result of delays in the bidding process for federal
and state infrastructure projects in Mexico. Revenues generated
outside of Mexico represented 36.9 percent of total revenue, and
revenues denominated in foreign currency were 70.6 percent of the
total during the second quarter.
General and administrative expenses decreased 35 percent from the
same period of 2001 primarily as a result of personnel reduction
efforts and the austerity policy implemented in 1999.
Operating income in the second quarter of 2002 was Ps. 35 million
with a margin of 2.0 percent. In the prior year period, operating
income was Ps. 23 million. EBITDA generated in the second quarter
of 2002 was Ps. 129 million, equivalent to a margin of 7.3
percent, compared to EBITDA of Ps. 169 million and a margin of
7.2 percent in the second quarter of 2001. The reduction in
EBITDA is principally the result of lower depreciation and
amortization charges. The integral cost of financing in the
second quarter was Ps. 197 million, compared to Ps. 127 million
recorded in the second quarter of last year, and consisted of the
following:
The increased integral cost of financing in the second quarter of
2002, compared to the same period one year ago, resulted
primarily from the devaluation of the Mexican peso and the
Argentine peso during the quarter, as well as the mix between
peso-denominated and foreign currency debt, a lower level of
debt, and a decrease in interest rates. The weighted average
interest rate in the second quarter of 2002 was 8.8 percent.
ICA recorded a loss of Ps. 71 million in other income in the
second quarter primarily as a result of severance payments and
other costs incurred for services.
The provision for taxes in the second quarter of 2002 was Ps. 112
million, of which Ps. 105 million was for income taxes and Ps. 7
million was for employee statutory profit sharing. ICA recorded a
loss of Ps. 50 million from its participation in unconsolidated
affiliates in the second quarter, due primarily to the effect of
the 69 percent devaluation of the Venezuelan bolivar against the
US dollar and the Mexican peso's devaluation relative to the
dollar. These affiliates include the Caruachi hydroelectric
project in Venezuela, OMA, which operates airport concessions,
and the environmental infrastructure operations company CIMA.
The result was a net loss of majority interest of Ps. 426 million
in the second quarter of 2002, equivalent to a loss of Ps. 0.69
per share (US$ 0.41 per ADS) based on 621.56 million weighted
average shares outstanding. This compares with a net loss of
majority interest of Ps. 86 million, or Ps. 0.14 per share (US$
0.08 per ADS) recorded in the second quarter of 2001, based on a
weighted average of 621.56 million shares outstanding.
SEGMENT RESULTS
The projects that contributed most to construction revenues were:
the Mexicali power plant in Baja California, the Altamira III and
IV IPP Plants in Tamaulipas, and the Andr‚s power plant in the
Dominican Republic (Industrial Construction); the San Juan
Coliseum in Puerto Rico, the CA-10 highway in Guatemala, and the
parking facility for the Mexico City Attorney General's Office in
Mexico City (Civil Construction); and Rodio's projects in
Portugal and Spain (CPC-Rodio).
CIVIL CONSTRUCTION revenues fell primarily as a result of the
completion of contracted projects and the decrease in new public
sector projects. The decrease in public sector projects primarily
reflects the lack of public infrastructure spending in Mexico and
the delay in the bidding program. The Mexican government has not
held any significant bids in the first half of 2002.
INDUSTRIAL CONSTRUCTION revenues decreased 6 percent during the
second quarter compared to the same period of 2001. The projects
which made up the largest share of the segment's revenues are the
Mexicali and Altamira III and IV power plants. The lower
operating margin was primarily due to the mix of projects and the
greater concentration of private sector projects, as well as an
adjustment in the expected margin for the Andr‚s project in the
Dominican
Republic.
CPC-RODIO's results during the quarter primarily reflect the
results of Rodio and Kronsa, which contributed revenue of Ps. 359
million with a margin of 5 percent. Given the situation in
Argentina, CPC reported practically no activity during the
quarter.
OTHER SEGMENTS, in total, accounted for 15.5 percent of total
revenues during the quarter.
In REAL ESTATE AND HOUSING, Real Estate continued its divestment
process, recording sales primarily in Quer‚taro and Canc£n.
Housing revised its strategic plan in order to improve the
business; the unit concluded its first capitalization phase for
the purchase of land reserves.
INFRASTRUCTURE OPERATIONS revenue includes Ps. 32 million from
the sale of land in Panama. The operating result reflects the
operations of the Acapulco Tunnel, Corredor Sur, and the parking
facilities.
ALSUR results reflect an increase in the Veracruz grain
terminal's operations and in capacity usage levels, particularly
of sugar in some warehouses in Veracruz.
CONSTRUCTION BACKLOG
ICA's backlog as of June 30, 2002 fell 11 percent compared to the
level as of March 31, 2002. New projects included in backlog are:
Rodio projects in Portugal and Spain, the repaving of the Mexico
City-Pachuca highway, and the engineering contracts for the
Minatitl n catalytic plant and Tuxpan units 5 and 6. As of the
end of the second quarter, projects outside Mexico represented 19
percent of ICA's backlog, and private sector projects were 81
percent of the total.
BALANCE SHEET
Debt
ICA's total debt at the end of the second quarter of 2002 was Ps.
5,137 million, a decline of Ps. 1,269 million, or 20 percent,
compared to the second quarter of 2001.
As of June 30, 2002, 29 percent of ICA's debt matures in less
than one year. Sixty percent of debt is denominated in foreign
currency, principally dollars, and 36 percent is securities debt.
In the second quarter, ICA concluded negotiations to refinance
Ps. 31 million of short term debt to long term debt.
Liquidity and Financial Ratios
As of June 30, 2002, ICA recorded Ps. 3,033 million in cash, an
increase of Ps. 706 million from Ps. 2,327 million reported in
the same period of 2001. Eightyseven percent of cash is held by
ICA Fluor Daniel, our Industrial Construction subsidiary. The
payment of dividends by this subsidiary requires the consent of
Fluor Daniel, our partner in this joint venture. Forty-five
percent of the total available cash represents client advances.
The current ratio as of the end of the second quarter of 2002 was
1.07, and the interest coverage ratio (EBITDA/interest expense)
was 1.36. ICA's leverage ratio (total debt/equity) was 1.10 in
the second quarter.
Capital Expenditures
The Company made capital investments in the quarter totaling Ps.
79 million, principally for investments in machinery and
equipment for Rodio and the Veracruz grain terminal.
Divestments
During the second quarter of 2002, ICA carried out divestments of
Ps. 76.8 million, composed principally of the sale of machinery,
buildings, and land.
For more information contact:
Dr. Jose Luis Guerrero
(5255) 5272-9991 x2060
Email: guerrerj@ica.com.mx
Lic. Paloma Grediaga
(5255) 5272-9991 x3470
Email: grediagp@ica.com.mx
In the United States:
Zemi Communications
Daniel Oehl
(212) 689-9560
Email: djoehl@zemi.com
GRUPO MEXICO: Copper Market Crisis Keeps Mines Closed
-----------------------------------------------------
Two of Grupo Mexico's mines, the Cananea in Sonora and Nueva
Rosita in Coahuila, will remain closed for two years as the
Mexican firm grapples with the global crisis that has hit the
copper market.
Executives from the world's third-largest copper miner said that
conditions in the market were very difficult for the companies
because for each cent that the price of copper drops costs them
US$25 million. The Company said that it expected prices to
improve by the end of the year, though that would depend on the
recovery of the U.S. economy.
The slump in the copper prices has led Grupo Mexico to default on
part of its US$1.3 billion in debt, the Company said in a filing
with the U.S. Securities and Exchange Commission. The Company is
now in talks with a group of creditors led by Bank of America
Corp. to renegotiate US$574 million of debt following the
default.
Grupo Mexico, which reported US$2.8 billion of revenue last year,
has a total US$2.8 billion of debt.
CONTACT: GRUPO MEXICO S.A. DE C.V
Avenida Baja California 200,
Colonia Roma Sur
06760 Mexico, D.F.
Mexico
Phone: +52-55-5264-7775
Fax: +52-55-5264-7769
http://www.gmexico.com
Contacts:
German Larrea Mota-Velasco, Chairman & CEO
Xavier Garcia de Quevedo Topete, President & COO
BANK OF AMERICA - Corporate Headquarters
Bank of America Corporate Center
100 North Tryon Street
Charlotte, North Carolina 28255
www.BankofAmerica.com
Contacts: Ken Lewis, Chairman & CEO
=======
P E R U
=======
BACKUS: Cisneros Acquires 14% Stake
-----------------------------------
Venezuela's Cisneros Group acquired a 14% stake in Peru's Union
DE Cervecerias Peruanas Backus & Johnston S.A. (Backus) for
US$176 million, Bloomberg reported. The Group has plans of
controlling almost one-fourth of the brewer.
The Venezuelan company had intended to spend as much as $300
million to purchase 24.8% of Backus voting shares and in the
middle of July offered to buy 7.3 of the Class A voting stock.
Cisneros acquired an option to purchase 16% of the voting shares
from a group of investors that included the Company's chief
executive and chairman, after offering to buy the stock at a 26%
premium of July 22's closing price.
The offer, which was tendered a week after the Brescia family
sold a 22% stake to Bavaria SA, Colombia's biggest brewer, has
intensified rivalry for control of the brewer.
The company's legal director, Luis Emilio Gomez, denied rumors
that his company and Bavaria had agreements to jointly control
Peru's largest brewer. He also declared the company's objective
of being just minority shareholders.
Cisneros bought 5% of the Peruvian brewer's Class A voting stock
from small shareholders, and bought 9% more as it began to
exercise its options. It paid 56 soles ($16) a share for 11
million shares for the stake, Gomez said.
The shareholders of Backus include Venezuela's biggest brewer,
Polar SA (22%), JP Morgan Chase & Co. (6%), and Bentin Montori
families.
Backus Class A voting shares remained traded at 56 soles.
CONTACT: UNION DE CERVECERIAS PERUANAS BACKUS & JOHNSTON S.A.
Jr. Chiclayo 594, Rimac
Lima 25.
Phone: +511-4810570
Fax: +511-3820008
Email: cobackus@backus.com.pe
Home Page: http://www.backus.com.pe/INDEX-I.HTM
Contact: Mr. Carlos Bent¡n, General Manager
=============
U R U G U A Y
=============
ANCAP: Moody's Lowers Issuer Rating to `B3'
-------------------------------------------
Moody's Investors Service downgraded the foreign currency issuer
rating of Administraci¢n Nacional de Combustibles, Alcohol y
Portland (ANCAP) to B3 from B1 following Moody's earlier
announcement that it had downgraded Uruguay's long-term foreign
currency ceiling to B1 from Ba2 and maintained a negative
outlook. The rating outlook for ANCAP is negative.
ANCAP is upgrading its La Teja refinery, a move requiring US$120
million, of which approximately 75% had been incurred as of June
30. Ancap is looking to raise some US$62 million from the
securitization of future sales from the refinery, to complete the
upgrading project. The initial response has been very positive,
according to local reports.
Ancap had drawn US$50 million from a US$115 million committed
credit facility, which was cancelled following the country's
ratings downgrade to junk status.
Headquartered in Montevideo, Uruguay, the state-owned oil,
alcohol and cement company ended 2001 with US$70 million in debt,
representing 16% of the Company's capitalization
CONTACT: ANCAP
Central Administration Paysando
s/n esq. Avenida del Libertador
Montevideo, 11100 Uruguay
P.O. Box 1090
Phones: +598(2) 902 0608
902 3892
902 4192
Fax +598(2) 902 1136 902 1642
Telex ANCAP UY 23168
E-mail: info@ancap.com.uy
Home Page: www.ancap.com.uy
Contact:
Benito E. Pi eiro, Chief Executive Officer
Phone +598(2) 900 2945
+598(2) 902 0608 Ext. 2253
Fax +598(2) 908 9188
URUGUAYAN BANKS: Legislation Could Freeze $2.2B in Deposits
-----------------------------------------------------------
Uruguay's Congress approved an emergency legislation that,
according to analysts' estimates, would freeze approximately
US$2.2 billion of deposits in the country's two state banks. The
legislation was submitted to President Jorge Batlle for approval.
"This will be difficult medicine, but it's the only possible
solution," Economy Minister Alejandro Atchugarry told lawmakers.
The legislation suspended withdrawal of long-term deposits in the
state banks for three years. The account, which is similar to
certificates of deposit in the United State will gain higher
interest than normal deposits during the freeze.
The accounts exclude checking and savings accounts, and deposits
at private banks.
The country's private and state banks were closed Tuesday after
massive withdrawals from panicked depositors.
Uruguay has been affected by financial troubles in neighboring
Argentina, whose four-year recession culminated to a debt default
and currency devaluation. The country is also slowly ambling
through a fourth year of recession.
Reserves in Uruguayan banks had fallen from around US$13 billion
last year to US$9 billion at present. The Central Bank's dollar
reserves had also fallen from US$3 billion to US$725 million.
Meanwhile, the International Monetary Fund (IMF), World Bank (WB)
and Inter-American Development Bank (IDB) had approved the $1.5
billion emergency loan that the country needs for the reopening
of the country's banks.
***********
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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