/raid1/www/Hosts/bankrupt/TCRLA_Public/020813.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 13, 2002, Vol. 3, Issue 159
Headlines
A R G E N T I N A
ARGENTINE BANKS: Argentina Aims To Lift Restrictions By Sept 30
AUTOPISTAS DEL SOL: Magister/Bankwatch Gives Bonds "D" Rating
DISCO AHOLD: Ahold Assumes Full Ownership
METRORED: Brasil Telecom Considers Taking Over Control
REPSOL YPF: Protesters Disrupt Operations, Fuel Distribution
TRANSENER: 1H02 Net Loss Down To ARS345.8M
B E R M U D A
GLOBAL CROSSING: Reaches Definitive Agreement with Asian Firms
B R A Z I L
CSN: Analyst Sees 2Q02 Net Loss Reaching BRL258M
ELETROPAULO METROPOLITANA: Reports Bigger Net Loss In 1H02
ELETROPAULO METROPOLITANA: Proposes To Pay Bonds On Time
EMBRATEL: Obtains Approval To Operate In Local Calls Segment
C H I L E
AT&T LATIN AMERICA: Announces Plan to Regionalize Operations
TELEFONICA CTC: Predicts Serving 60% of Broadband Market by `04
C O L O M B I A
TELECOM: Pays Canada's Nortel COP150B
E C U A D O R
FILANBANCO: Employees Try to Stop Liquidation
M E X I C O
CFE: Bad Exchange Rates Translate to Poor 1H02 Results
FAR-BEN: Finds New Buyer
HAYES LEMMERZ: Announces Management Position Changes
PEGASO: Telefonica Moviles Gets Final Approval To Buy Stake
P E R U
BACKUS: Conasev Orders Cisneros To Halt Sale of Backus Shares
PAN AMERICAN SILVER CORP: Posts Better 2Q02 Results
T R I N I D A D & T O B A G O
BWIA: Mudslinging Continues, CEO Upsets Pilots
V E N E Z U E L A
SIDOR: To Invest $70M In Modernization Project
- - - - - - - - - -
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A R G E N T I N A
=================
ARGENTINE BANKS: Argentina Aims To Lift Restrictions By Sept 30
---------------------------------------------------------------
Struggling to end banking restrictions, Argentina will present a
new proposal to the IMF next week, Bloomberg reports. The plan
outlines lifting of all withdrawal limits by September 30 for
individuals with checking and savings accounts, and would affect
about ARS19.9 billion (US$5.5 billion).
Argentina has limited account withdrawals since December. The
country's Economy Minister, Roberto Lavagna, who has been
negotiating for an extension of IMF aid, said Argentina would
submit proposed monetary and budget targets to the Washington-
based lender early next week.
AUTOPISTAS DEL SOL: Magister/Bankwatch Gives Bonds "D" Rating
-------------------------------------------------------------
Magister/Bankwatch Calificadora de Riesgo S.A. assigned a "D"
rating to US$210 million worth of simple issue corporate bonds
issued by Autopistas del Sol S.A. The bonds mature August 1,
2009. The rating was based on the Company's financial standing
as of March 31, 2002.
In February, the Argentine-based company hired a bank to help
restructure its dollar-denominated debt, which was in default.
The company did not name the bank as of the reporting date.
Ausol missed interest payments of US$7.9 million on its series A
notes and US$10.8 million on its series B notes, both due on
February 1, 2002.
The company was not able to meet interest payments due to
unsettled currency devaluation, and the "pesofication" of tolls
in the country.
Ausol holds the concession to operate and collect tolls on the
Autopistas Highway System, one of the most important access roads
to the city of Buenos Aires. The concession includes 95
kilometers of the northern access road (Ruta Panamericana) and 24
kilometers of the General Paz Avenue (the Buenos Aires
metropolitan area beltway). The northern access road consists of
a toll road and parallel toll-free lanes. The General Paz Avenue
is toll free. The concession requires the operation and
maintenance of the toll road, the parallel toll-free lanes, and
the Avenida General Paz. The toll road provides an important link
with the suburbs northwest of downtown Buenos Aires, with average
daily traffic of about 250,000 vehicles.
DISCO AHOLD: Ahold Assumes Full Ownership
-----------------------------------------
Ahold (NYSE:AHO), the international food retailer and foodservice
operator, announced Friday it has assumed full control of Disco
Ahold International Holdings (DAIH), its former Latin American
joint venture company with Velox Retail Holdings (VRH).
Ahold announced its intention on July 17 to terminate its
shareholders' agreement with VRH. Following VRH's July 16 default
on outstanding indebtedness owed to certain banks, Ahold was
required to take over loans and purchase substantially all of
VRH's shares in DAIH for a total consideration of approximately
US$490 million. The aforementioned requirements have now been met
and the agreement between VRH and Ahold has been brought to a
formal close. As a consequence, Ahold's direct stake in DAIH has
increased from approximately 66% to 100%.
The takeover of loans and purchase of VRH's shares in DAIH will
generate a substantial charge in the second quarter of 2002 under
Dutch and U.S. GAAP estimated at Euro 350 450 million, as the
amount paid exceeds the fair value of the DAIH shares.
Disco Ahold International Holdings operates over 350 supermarkets
in four Latin American countries: Argentina, Chile, Peru and
Paraguay. Ahold now wholly owns 236 Disco supermarkets in
Argentina with 2001 sales of Euro 2.1 billion. In addition, Ahold
has a 70% stake in 117 Santa Isabel supermarkets in Chile (76),
Peru (30) and Paraguay (11) with 2001 sales of Euro 771 million.
CONTACTS: Ahold Public Relations
Phone: 31.75.659.5720
Annemiek Louwers
Phone: 31.6.53.98.16.06
Nick Gale
Phone: 31.6.55.77.22.83
METRORED: Brasil Telecom Considers Taking Over Control
------------------------------------------------------
Brazilian telephone services operator Brasil Telecom plans to buy
Metrored Telecomunicaciones, which was declared bankrupt by an
Argentine court in July, O Globo reveals.
However, according to the sector's regulation, Brasil Telecom
cannot become Metrored's controller because it did not advance
its 2003' goals.
Metrored was forced to file for bankruptcy protection after it
failed to restructure close to US$30 million in debt. The
bankruptcy filing was also attributed to the refusal of the
Company's largest creditor, U.S.-based Fleet Financial, to take
control of the struggling company.
Metrored launched operations in Argentina in 1997, offering data,
video and voice transmission services to corporate clients. The
company reportedly invested US$218 million to build a fiber-optic
network in the country, but only managed to generate revenues of
US$24 million in 2001.
Fidelity Investments and Boston Ventures own 89.5% of the telecom
firm, while another U.S.-based company, Metro Communications
Corp., owns 10.5%.
MetroRed also offers service in Sao Paulo, Rio de Janeiro, Belo
Horizonte and Mexico City.
CONTACT: METRORED TELECOMUNICACIONES
Paseo Col>n 746
Piso 4 (C1063ACU)
Buenos Aires
Argentina
Phone: (5411) 4876-7700
Fax: (5411) 4876-7767
Home Page: metrored@metrored.com.ar
REPSOL YPF: Protesters Disrupt Operations, Fuel Distribution
------------------------------------------------------------
About 100 Argentine protesters interrupted operations at Repsol
YPF by taking over the Spanish oil company's Las Heras treatment
plant. As a result, fuel supply in Argentina's Chubut and Santa
Cruz provinces was cut off, according to a Repsol source.
"[Protestors] blocked the entrance to the plant, forcing our
tankers to stop their activities - they can't get in or out of
the plant," the source said.
The disruption means fuel shortages are imminent in the north of
Santa Cruz province and in the city of Comodoro Rivadavia in
Chubut.
"There will not be enough fuel for public transport or cargo
shipments, and power generators will also be affected, along with
fishing boats in the area", the representative said.
Repsol YPF has already reported the occupation to Chubut province
courts, as well as informing the energy secretary and the
minister of the interior.
With unemployment soaring over 21% as Argentina's recession
enters its fifth year, the workers are demanding 700 jobs from
Repsol and the government. A standoff outside a Repsol plant in
the southern province of Santa Cruz ended earlier last week with
about 80 jobs being granted.
Repsol YPF is Argentina's largest energy company, employing close
to 8,500 workers and exporting US$1.83 billion worth of oil and
natural gas per year.
CONTACTS: REPSOL YPF
Alfonso Cortina De Alcocer, Chairman & CEO
Ramon Blanco Balin, Vice Chairman
Carmelo De Las Morenas Lopez, CFO
Their Address:
Paseo de la Castellana 278
28046 Madrid, Spain
Phone +34 91 348 81 00
Home Page: http://www.repsol.com
or
Av. Roque S enz Pe a, 777.
C.P 1364. Buenos Aires
Argentina
TRANSENER: 1H02 Net Loss Down To ARS345.8M
------------------------------------------
Argentine transmission company Transener, which is majority-owned
by Britain's National Grid Group PLC (NGG) and for the time
being, by the local company PeCom Energia until Petrobras
acquires this company, released first-half earnings last week.
The Company revealed that during the period, it had a
consolidated net loss of ARS345.8 million (US$94.5 million),
ARS403.2 million less than 1H01 and representing 0.96 peso losses
per share.
Non-operating losses were ARS387.4 million, of which exchange
rate differences on liabilities accounted for ARS285.2 million
after negatively affecting payments on US dollar-denominated
debt. Operating profits came in at ARS53 million, down 36% on the
first half of 2001.
Late in April, Transener, suspended all current and future loan
payments, pending the renegotiation of US$470 million in debts.
The Company has selected Morgan Stanley as financial advisor to
help in developing a restructuring plan for all its debts.
Carlos A. Gonzalez, Transener's finance and administration
manager, disclosed that about US$250 million of Transener's debt
is in corporate bonds. About US$100 million of the bonds mature
in 2003 and US$150 million mature in 2008, Gonzalez said.
The Company has US$180 million in bank debt due this year and
US$40 million worth of bank debt due in 2003, Gonzalez added.
CONTACT: COMPANIA DE TRANSPORTE DE ENERGIA ELECTRICA EN ALTA
TENSION (Transener S.A.)
Av. Paseo Colon 728, 6"Piso - (1063)
Buenos Aires, Argentina
Tel. (5411) 4342-6925
Business Development:
Carlos A. Jeifetz (jeifecar@transx.com.ar)
Gerardo Baseotto (baseoger@transx.com.ar)
Tel.: (54-11) 4334-0182 / 4342-6925
Fax: (54-11) 4342-4861
MORGAN STANLEY, DEAN WITTER & COMPANY
1585 Broadway
New York, New York 10036
United States
Phone: +1 212 761-4000
Home Page http://www.msdw.com
=============
B E R M U D A
=============
GLOBAL CROSSING: Reaches Definitive Agreement with Asian Firms
--------------------------------------------------------------
Global Crossing announced Friday that it has signed a definitive
agreement under which Hutchison Telecommunications Limited
(Hutchison), a wholly owned subsidiary of Hutchison Whampoa
Limited, and Singapore Technologies Telemedia Pte. Ltd. (ST
Telemedia) will invest a total of $250 million for a 61.5 percent
majority interest in a newly constituted Global Crossing on its
emergence from bankruptcy. Global Crossing's creditor groups
support the agreement.
The agreement was approved Friday in a hearing before the
Bankruptcy Court for the Southern District of New York.
Global Crossing is also preparing a formal plan of reorganization
through its Chapter 11 bankruptcy process. Global Crossing
expects to file its plan in September and to emerge from
bankruptcy in early 2003, subject to satisfying various
contractual closing conditions, including regulatory approvals
and confirmation of its plan of reorganization by the bankruptcy
court.
The terms of the Hutchison and ST Telemedia agreement provide
that Global Crossing's banks and creditors will receive 38.5
percent of the common equity in the newly constituted Global
Crossing, $300 million in cash and $200 million of new debt in
the form of senior notes. Existing common equity and preferred
shareholders of Global Crossing will not participate in the new
capital structure.
Under the agreement, Global Crossing will retain its UK national
business, its conferencing division, and Global Marine - three
businesses which it had previously considered selling in order to
maximize its cash position. Customers of these businesses, as
well as Global Crossing's other customers, can expect service to
continue without disruption.
The agreement with Hutchison and ST Telemedia follows several
months of discussions with a large number of bidders. After
reviewing and negotiating all the bids submitted, Global Crossing
and its creditors entered into separate negotiations with
Hutchison and ST Telemedia. These negotiations resulted in the
agreement announced Friday. As a result of the agreement, Global
Crossing has cancelled the auction scheduled for August 14, 2002.
"This is a textbook model for a successful strategic investment,"
said Mr. John Legere, CEO of Global Crossing. "Hutchison
Telecommunications and Singapore Technologies Telemedia are
highly respected telecom companies with assets and skills that
complement Global Crossing's unmatched global network. With our
turnaround well under way, and the support of strong new
strategic partners, Global Crossing is poised to become the
global leader providing networking services to enterprises and
carrier customers in more than 200 of the world's top cities."
Mr. Canning Fok, Group Managing Director of Hutchison Whampoa,
said, "We have confidence in the Global Crossing management team
and look forward to working with them. Global Crossing presents
an attractive business prospect for Hutchison and our investment
in the company, which owns substantial broadband network
capacity, is in line with our vision to be a leading global
telecommunications player."
"Customers will be the real winners in this agreement," said Mr.
Lee Theng Kiat, President and CEO of ST Telemedia. "Our three
companies will be able to provide continuity on Global Crossing's
international networks and expanded service offerings to benefit
all our customers. As the telecom market stabilizes, there will
be significant opportunities for the new Global Crossing, its
creditors and employees. This investment will accelerate ST
Telemedia's goal to become a significant global data and IP-
centric communications group."
The Blackstone Group, L.P. and Weil, Gotshal & Manges LLP
provided advice and counsel to Global Crossing regarding the
agreement announced Friday.
ABOUT GLOBAL CROSSING
Global Crossing provides telecommunications solutions over the
world's first integrated global IP-based network, which reaches
27 countries and more than 200 major cities around the globe.
Global Crossing serves many of the world's largest corporations,
providing a full range of managed data and voice products and
services. Global Crossing operates throughout the Americas and
Europe, and provides services in Asia through its subsidiary,
Asia Global Crossing.
On January 28, 2002, Global Crossing and certain of its
affiliates (excluding Asia Global Crossing and its subsidiaries)
commenced Chapter 11 cases in the United States Bankruptcy Court
for the Southern District of New York and coordinated proceedings
in the Supreme Court of Bermuda. On the same date, the Bermuda
Court granted an order appointing joint provisional liquidators
with the power to oversee the continuation and reorganization of
the Bermuda-incorporated companies' businesses under the control
of their boards of directors and under the supervision of the
U.S. Bankruptcy Court and the Supreme Court of Bermuda. On April
23, 2002, Global Crossing commenced a Chapter 11 case in the
United States Bankruptcy Court for the Southern District of New
York for its affiliate, GT UK, Ltd. Global Crossing does not
expect that any plan of reorganization, if and when approved by
the Bankruptcy Court, would include a capital structure in which
existing common or preferred equity would retain any value.
CONTACT: GLOBAL CROSSING
Press Contacts
Becky Yeamans
+ 1 973-410-5857
Rebecca.Yeamans@globalcrossing.com
Tisha Kresler
+ 1 973-410-8666
Tisha.Kresler@globalcrossing.com
Kevin Burgoyne
Latin America
+ 1 305-808-5925
Kevin.Burgoyne@globalcrossing.com
Mish Desmidt
Tel: +44 (0) 118 908 6788
Mobile: +44 (0) 7771 66 84 38
mish.desmidt@globalcrossing.com
Analysts/Investors Contact
Ken Simril
+ 1 310-385-3838
investors@globalcrossing.com
===========
B R A Z I L
===========
CSN: Analyst Sees 2Q02 Net Loss Reaching BRL258M
------------------------------------------------
Cristiane Viana, a sector analyst at Espirito Santo Securities,
said she expects Brazilian steelmaker CSN to post a net loss of
BRL258 million (US$86 million) in the second-quarter of 2002,
Business News Americas relates.
"The poor result stems from the company's heavy dollar-
denominated debt. Of its net debt of 4.8bn reais [US$1.6bn], 85%
is tied to the dollar," she said.
According to Viana, the market already works with the expectation
of a loss due to the Company's large financial expenditures. Not
even CSN's growing exports will be able to reduce its huge
liabilities.
Viana forecasts that second-quarter exports will account for 22%
of CSN's BRL2.2 billion (US$733mn) in revenue. By year-end, the
analyst predicts that exports will reach 35% of estimated net
revenue of BRL4.7 billion (US$1.6 billion) for the second quarter
of 2002. This translates into over US$500 million from export
receipts, up from the US$265 million posted the year before.
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
ELETROPAULO METROPOLITANA: Reports Bigger Net Loss In 1H02
----------------------------------------------------------
Eletropaulo Metropolitana, which is owned by AES Corp., saw its
net loss balloon to BRL146.3 million in the first half of 2002,
from BRL43.2 million it registered in the same year-ago period,
according to a report released by Dow Jones.
The Company registered an operating loss of BRL43.5 million
during the period, against an operating profit of BRL18.6 million
in the year-ago period.
Net revenue was BRL2.82 billion during the first half of 2002,
compared to BRL2.56 billion in the same period in the previous
year.
Eletropaulo has more than US$400 million in dollar-linked debt
maturing this month. Investors were worried it may default on its
debt amid concern about the nation's debt outlook as the real
lost value and exporters were having trouble tapping credit
lines.
However, such fears dissipated Thursday after the government
unveiled a US$30-billion aid package from the International
Monetary Fund that has averted a possible debt restructuring for
now.
CONTACT: ELETROPAULO METROPOLITANA
Avenida Alfredo Egidio de Souza Aranha 100-B,
13 andar 04726-270 San Paulo
Brazil
Phone: +55-11-548-9461, +55 11 5696 3595
Fax: +55-11-546-1933
URL: http://www.eletropaulo.com.br
Contacts:
Luiz D. Travesso, Chairman and President
Orestes Gonzalves Jr., VP Finance/Investor Relations
ELETROPAULO METROPOLITANA: Proposes To Pay Bonds On Time
--------------------------------------------------------
Creditors have until August 16 to approve a proposal by Brazil's
Sao Paulo city power company Eletropaulo to pay its maturing
bonds on time.
Business News Americas reports that Eletropaulo offered to pay on
time 15% of US$120 million in bonds expiring August 21 and US$30
million in September 5, and replace the remaining 85% with new
bonds due in one year's time. The new bonds would pay 17%
interest.
At least 80% of the bondholders must approve the proposal in
order for Eletropaulo to carry out the exchange.
Business News Americas also reports that Eletropaulo needs to
find ways to pay a US$200-million syndicated loan coming due this
month. The Company is reportedly negotiating a new local currency
loan to replace the foreign line of credit.
US investment bank Lazard and Germany's Dresdner Bank are
managing the negotiations.
Eletropaulo has debts of approximately US$753 million maturing
during the remainder of 2002. Since January 2002, the Company has
repaid more than US$200 million of maturities with cash generated
from operations and US$119 million in BNDES (Brazil's state-owned
national development bank) proceeds as part of the revenue
recovery agreement for 2001. The balance of 2002 maturities are
concentrated this month, August, (US$422 million), September
(US$99 million) and December (US$116 million).
CONTACT: DRESDNER BANK AG
Jrgen-Ponto-Platz 1
D-60301 Frankfurt/Main,
Germany
Phone: +49-(0) 69/2 63-0
Fax: General enquiries
+49-(0) 69/2 63-48 31
+49-(0) 69/2 63-40 04
Home Page: http://www.dresdner-bank.de/
Contact:
Dr. Jur. Henning Schulte-Noelle
Chairman of the Supervisory Board of Dresdner Bank AG
LAZARD (Chicago)
Suite 2200
200 West Madison Street
Chicago
Illinios, 60606
USA
Phone: +1 312 407 6600
Fax: +1 312 407 6620
URL: http://www.lazard.com/
EMBRATEL: Obtains Approval To Operate In Local Calls Segment
------------------------------------------------------------
Agencia Nacional de Telecomunicacoes (Anatel) gave long distance
call provider Embratel the go ahead to operate in the local calls
sector. The authorization is guided by universal access goals in
the Company's concession contract, according to Business News
Americas.
The Company has been testing network operability for the service
for four years. The service is to be launched in 4Q02, starting
in two cities and expanding into seven cities in 30 days. By next
year, 29 cities are expected to benefit from the service.
Embratel, the country's largest long distance provider, plans to
launch local services first in the cities of Brasilia, Curitiba,
Belo Horizonte, Fortaleza, Rio de Janeiro, Sao Paulo, Porto
Alegre, Salvador and Recife.
Consistent with its BRL1.1-billion (US$386mn) investment plan for
2002, the Company will cater initially to corporate clients,
around 80% of which has signed willingness to subscribe according
to a recent survey.
As Anatel has authorized Telemar to operate in local fixed
telephone in the country, Embratel will compete with Telemar and
Telefonica in the segment.
The Company does not expect significant proceeds from local
services for at least another two years.
CONTACT: EMBRATEL PARTICIPACOES S.A.
Investor Relations
Silvia Pereira
Tel. (55 21) 2519-9662
Fax: (55 21) 2519-6388
Email: Silvia.Pereira@embratel.com.br
invest@embratel.com.br
or
Press Relations:
Helena Duncan/Mariana Palmeira
Tel: (55 21) 2519-3653/3654
Fax: (55 21) 2519-8010
Email: hduncan@embratel.com.br
mpalm@embratel.com.br
=========
C H I L E
=========
AT&T LATIN AMERICA: Announces Plan to Regionalize Operations
------------------------------------------------------------
AT&T Latin America Corp. (Nasdaq: ATTL), a facilities-based
provider of integrated high-bandwidth business communications
services in five Latin American countries, announced Thursday
major changes designed to move it from a country-oriented model
to a regional, customer-centric organization.
The changes include:
* Creating a Regional Commercial Organization (RCO) based in
Washington, D.C., site of the company's new headquarters, to
develop product offers jointly with AT&T Corp., its majority
owner, allowing it to improve overall product development and
enhance its ability to serve multi-national accounts. The RCO
will give customers a consistent set of products, faster product
introductions and the ability to resolve issues with a single
phone call. Marco Northland, currently vice-president of product
and business services, has been named to the new position of
executive vice-president of business services to head the RCO and
lead the organization in support of in-country sales and
marketing activities.
* Establishing a Regional Service Center (RSC) in Chile, to
consolidate many of the business functions, including
engineering, operations, customer care, IT and human resources.
Centralizing operations will allow the company to better allocate
capital, since decisions will be made on a regional, not country-
by-country basis. Chile was chosen because of its accessibility
to facilities and skilled professionals as well as its favorable
conditions for foreign investment.
* Creating a new executive vice-president of operations position
responsible for managing the Regional Service Center. This
position will lead the deployment of the new RSC and oversee the
entire reorganization. Jose "Pepe" Gandullia, general manager of
AT&T Latin America -- Peru, will assist Patricio E. Northland,
president and CEO of AT&T Latin America, in leading the project
management group that will establish the foundation and processes
of the RSC. By consolidating customer care and other back-office
business operations in this position, individual country
managers will be able to devote more time to customers.
* Placing financial operations, which will be led from
Washington, D.C., under a regional structure -- the Regional
Finance Organization (RFO).
This will strengthen accountability and controls, reduce
purchasing and operational costs and allow for enhanced
allocation of capital across the business. The company's chief
financial officer will lead the RFO.
"My goal is to have a lean, efficient organization that operates
regionally, with standard processes, rather than a country-by-
country model," said Patricio E. Northland. "These changes will
get us there. We will cut costs and also be able to adapt to
future growth because our operations will be scalable and we'll
be able to adjust quickly to market changes. In addition, country
general managers will be able to devote more time to customers so
they can continue to generate profitable traffic on our network."
AT&T Latin America said the efficiencies gained by these changes
will result in significant savings in cost of sales and expenses
on the order of $8 million annually when fully implemented. The
company said some net headcount reductions in the areas of
operations, finance, and engineering will result as redundant
functions are eliminated; however, the company will be
strengthening its sales and marketing organization. Furthermore,
the company expects to realize additional growth in profitable
revenue from reductions in churn, improved service provisioning
and reduced billing cycles. The consolidation will begin early
next year and is expected to take a year to complete.
About AT&T Latin America Corp.
AT&T Latin America Corp. (Nasdaq: ATTL) is a U.S.-based,
autonomous facilities-based provider of integrated high-bandwidth
business communications services and solutions with operations in
Argentina, Brazil, Chile, Colombia and Peru. As of March 31, 2002
the company reported approximately 1,750 employees, providing
advanced last-mile voice and data connectivity in key business
markets in five countries. AT&T Latin America's high-speed fiber
network reached more than 7,650 total route kilometers or
approximately 230,100 fiber kilometers, covering 17 major
metropolitan areas. The company offers broadband communications
services including data, Internet, voice, video-conferencing and
electronic commerce services. AT&T Latin America is the first
Latin America-focused communications services provider to offer a
national, pan-regional and international, IP/ATM single-
architecture broadband network. For more information, visit AT&T
Latin America's website at http://www.attla.com.
CONTACT: A&T Latin America Corp.
Jim McGann
Phone: +1-202-457-3942
E-mail: jpmcgann@att.com
Lydia Rodriguez
Phone: +1-305-459-6323
E-mail: lydia.rodriguez@attla.com
Nancy Anderson
Phone: +1-305-459-6424
E-mail: nancy.anderson@attla.com
Catherine Castro
Phone: +1-305-459-6336
E-mail: catherine.castro@attla.com
TELEFONICA CTC: Predicts Serving 60% of Broadband Market by `04
---------------------------------------------------------------
Chilean telco Telefonica CTC Chile (NYSE:CTC) expects the number
of broadband Internet users in Chile to increase five-fold and
foresees to serve 60% of that in 2004, Business News Americas
reports.
According to CTC broadband services director Juan Pablo Karmy,
the number will reach 450,000 in 2004, although it may not be
under the current prices. CTC expects the current price of
20,000-30,000 pesos/month (US$29-42), to keep falling.
The Company currently has a 40% share of the broadband market--
40,000 out of the 90,000-95,000. Broadband market represents
about 10% of Chile's 1 million Internet users.
Pyramid Research senior analyst Carlos Rodriguez confirmed CTC's
number. The agency projects 442,000 broadband users in 2004. Out
of the total number 270,000 are expected to be using DSL
technology, 270,000 cable modem and the rest fixed wireless
technology.
The expansion of CTC's shares is dependent on "the
diversification of broadband technology and the increasing
prominence of dedicated access," the report says citing Karmy.
CTC offers broadband services over ADSL technology. Its
principal competitors in that segment are cable TV operators VTR
GlobalCom and Metropolis Intercom, rival telco Entel, and smaller
competitive exchange providers Manquehue Net and Telsur.
CTC is 44.6% owned by Spain's Telefonica (NYSE: TEF). It is the
country's largest telco with approximately 2.7 million fixed
lines in service.
CONTACT: Telefonica CTC (Corporacion Telefonica Chilena S.A.)
V. Providencia 111
Providencia - Santiago
(56)-Chile
Phone: (2) 2320511
(2) 6912020
Home Page: http://www.telefonicadechile.cl/
Contacts:
Mr. Bruno Philippi, President
Mr. Jacinto Daz, Vice President
Gisela Escobar, Head of Investor Relations
===============
C O L O M B I A
===============
TELECOM: Pays Canada's Nortel COP150B
-------------------------------------
Colombia's state-run Telecom paid Canadian equipment supplier
Nortel Networks COP150 billion pesos (US$56 million) to comply
with a court order issued by the country's highest appellate
court on June 6.
The same order cleared Telecom of its obligation to pay US$76
million in interest, as well as US$1 million by way of exchange
rate corrections, Telecom chairman Hernan Roman said.
Telecom was ordered to pay Nortel Networks the amount in
compensation for lower-than-expected revenues from a joint-
venture contract.
Telecom is also facing claims by other vendors, which it has
established similar ventures with, amounting to US$1.56 billion.
These companies are Siemens, Itochu, Alcatel, Ericsson and NEC.
The Company has already entered talks with these vendors, however
discussions are at a standstill.
What seriously aggravated Telecom's precarious financial status
is its outstanding US$900 million pension liability with
employees. Government intervention may just be the answer to the
Company's problems, Roman indicated.
CONTACT: EMPRESA NACIONAL DE TELECOMUNICACIONES (TELECOM)
Calle 23 No 13-49, Bogot
Colombia
Phone: 286-0077
282-8280
Home Page: http://www.telecom.com.co/
=============
E C U A D O R
=============
FILANBANCO: Employees Try to Stop Liquidation
---------------------------------------------
The former employees of Filanbanco have gone to court to protest
the bank's liquidation process, relates Business News Americas.
These employees, according to reports by the local press, are
having questioning two of the three trust funds the economy
ministry set up to ensure the return of US$350 million in
deposits to former clients. The workers object to having to
receive fund payments in the form of bonds rather than cash.
Miguel Davila, the chief of Ecuadorian banking regulator
Superban, said he believed the plaintiffs had misinterpreted the
nature of the funds, which represent deposits of US$130 million,
and that the problem should not be impossible to resolve.
Ecuador's banking board initiated the liquidation of Filanbanco
in the latter part of July. The bank, formerly the biggest in
Ecuador, fell into state hands in 1998 amid a widespread
financial crisis and closed its doors last year due to a lack of
liquidity.
Filanbanco's liquidation is a requirement with which Ecuador has
to comply in order for the Andean nation to sign a much-needed
US$240-million International Monetary Fund (IMF) loan deal. The
IMF loans would open the door to a series of other multilateral
credits to help pay about US$850 million in loan principal this
year and sustain investors' confidence in its economy, which is
recovering from a 1999 crisis.
CONTACT: FILANBANCO
Av. 9 of 203 October and Pichincha
Guayaquil, Ecuador
Phone: 322780 ext. 2885
Fax: 329451
E-mail: mailto:administrador@filanbanco.com
Home Page: http://www.filanbanco.com/
Contacts:
International Business Division
Germania Narv ez Brandon
E-mail: mailto:mgnarvaez@filanbanco.com
Legal Divison (Guayaquil)
Marks Arteaga Valenzuela, Departmental Manager
E-mail: mailto:mmarteaga@filanbanco.com
===========
M E X I C O
===========
CFE: Bad Exchange Rates Translate to Poor 1H02 Results
------------------------------------------------------
The Federal Electricity Commission (CFE), Mexico's state power
company, reported disappointing financial results in the first
half of 2002. According to a report by Business News Americas,
the Company posted a net loss of MXN5.34 billion (US$550 million)
during the period, compared to a profit of MXN3.37 billion in the
same year-ago period, due to unfavorable exchange rate movements.
The CFE reversed MXN2.09 billion first-half 2001 operating losses
to MXN1.96 billion (US$202mn) operating profits in the first half
of 2002, helped by lower fuel costs and lower domestic power
subsidies.
The Company said that its working capital position is sufficient
to cover all short-term commitments.
However, a recent TCR-LA report indicated that CFE is likely to
deal with worsening financial problems next year.
Senator Juan Jose Rodriguez Prats said that repayments of the
debt contracted under the Deferred Investment Projects in
Spending Registers (Pidiregas) will increase from MXN7 billion
(US$719 million) to MXN15 billion (US$1.54 billion).
After a meeting between National Action Party (PAN) senators and
the head of the CFE, Alfredo Elias Ayub, Rodrguez Prats said
that the state-owned company had financial requirements for
around US$5 billion per year.
FAR-BEN: Finds New Buyer
------------------------
After failing to secure minority shareholder consent for a
capitalization and takeover agreement with a group of local
investors headed by Fernando Chico Pardo and the Benavides
family, the Mexican drug store chain Farmacias Benavides SA
finally finds itself a new buyer in Chile's Farmacias Ahumada SA.
According to a report released by Dow Jones, Farmacias Ahumada
agreed to take control and capitalize the Monterrey-based chain.
Under the agreement, controlling shareholders from the Benavides
family and Farmacias Ahumada will jointly inject US$55 million to
Far-Ben to strengthen the Company and restructure its
obligations.
Citing the Company's regulatory filing, the report says that the
agreement also mandates that Ahumada provide management advice to
Far-Ben. The agreement also incorporates Far-Ben into the FASA
group, Latin America's leading drug store chain.
The Chilean company operates 210 pharmacies in Chile, 110 in
Brazil and 85 in Peru. Monterrey-based Far-Ben has 614 drug
stores across northern Mexico.
Far-Ben has seen its profits slump in the last five years as
grocery chains such as Wal-Mart de Mexico SA added in-store
pharmacies and offered medicines at discount prices. Sales fell
12% last year to MXN5.07 billion. Operating income at the chain
fell to MXN37 million last year from MXN214 million in 2000.
CONTACT: BENAVIDES (FAR-BEN S.A. DE C.V.)
Benavides (Far-Ben S.A. De C.V.)
602 Pino Suarez South Central
Monterrey Nuevo Leon
Mexico
Phone: +52 50 77 00
Fax: +52 89 99 31
Home Page: http://www.benavides.com.mx/
Contact:
Investor Relations
E-mail: inversionistas@benavides.com.mx
or
Enrique Javier Villarreal Bacco, CFO
Guillermo Benavides Arredondo, COO
Miguel Carlos Peinado Gonz lez, Purchasing and
Merchandising VP
Fernando Benavides Sauceda, Chief Information Officer
HAYES LEMMERZ: Announces Management Position Changes
----------------------------------------------------
Hayes Lemmerz International, Inc. (OTC Bulletin Board: HLMMQ)
announced Friday that Diane Zekind, currently Director of
Technical Services has been named Plant Manager for the Company's
Commercial Highway facility in Berea, Kentucky, effective
September 1, 2002. Ms. Zekind will have overall responsibility
for the Berea and Chattanooga, Tenn. facilities, and will report
directly to Business Unit President Fred Bentley. Ms. Zekind
replaces Bill Stacy who has opted for early retirement. Mr.
Stacy will stay on through the end of October 2002, to assist
with the transition.
Ms. Zekind began her career at General Motors Central Foundry
Division Saginaw Metal Casting Operations. She worked as a
Process Engineer, Industrial Engineer, and a Senior Manufacturing
Engineer. After almost nine years with General Motors, Ms.
Zekind joined CMI International, as Manager of Product Planning
at the Technical Center in Ferndale, Mich. She was promoted to
Director of Advance Planning and Administration, then to Vice
President. As a result of Hayes Lemmerz' acquisition of CMI in
1999, Ms. Zekind was named Director of Technical Services. Ms.
Zekind holds a bachelor of science degree in Industrial
Engineering and a master of science degree in Manufacturing
Management from General Motors Institute (now Kettering
University), in Flint, Mich.
In a related move, Greg Guilliams, currently Director of Advanced
Manufacturing Engineering for the Suspension Components Business
Unit has been named Director of Technical Services, effective
September 1, 2002. Mr. Guilliams will report directly to
Business Unit President Scott Harrison. Mr. Guilliams will
assume the overall responsibility of the Technical Center, in
Ferndale, Mich., which provides advanced engineering, design,
development and testing services to all of Hayes Lemmerz' North
American Operations. He'll also have responsibility of the
Center's facilities and maintenance functions. Additionally, Mr.
Guilliams will continue to fulfill the responsibilities of his
current position.
Mr. Guilliams began his career at General Motors Central Foundry
Operations in 1975. He worked as a Production Supervisor, Plant
Engineer, and Maintenance General Supervisor. Mr. Guilliams
joined CMI International's Cadillac Operations in 1993 as the
Manager of Engineering and Maintenance. In 1995, he was promoted
to Plant Manager of the Bristol Operations, and in 2000, Plant
Manager of the Petersburg Operations. Mr. Guilliams holds a
bachelor of science degree in Electrical Engineering from General
Motors Institute.
Hayes Lemmerz International, Inc. is one of the world's leading
global suppliers of automotive and commercial highway wheels,
brakes, powertrain, suspension, structural and other lightweight
components. The Company has 42 plants, 3 joint venture
facilities and approximately 12,000 employees worldwide.
On December 5, 2001, Hayes Lemmerz International, Inc., all of
its U.S. subsidiaries and one Mexican subsidiary filed for
reorganization under Chapter 11 of the U.S. Bankruptcy Code, to
reduce their debt and strengthen their competitive
position. These filings include 22 facilities in the United
States and one plant in Mexico.
To see latest financial statements:
http://bankrupt.com/misc/Hayes_Lemmerz.htm
CONTACT: HAYES LEMMERZ INTERNATIONAL, INC.
Marika P. Diamond
Tel: +1-734-737-5162
www.hayes-lemmerz.com
PEGASO: Telefonica Moviles Gets Final Approval To Buy Stake
-----------------------------------------------------------
Mexico's communications regulator gave Telefonica Moviles SA,
Spain's largest wireless company, the nod to buy 65% of mobile
phone company Pegaso PCS. The approval was the only hurdle that
prevented Moviles from concluding the purchase after it won
approval from Mexico's competition regulator and from the
country's foreign investment commission.
The communications regulator's approval would pave the way for a
merger between Moviles' Mexican business and Pegaso by the end of
December, creating the country's second-largest mobile phone
operator with as many as 2.7 million clients as indicated by
Pegaso chairman, Alejandro Burillo, in a previous TCR-LA report.
Telefonica Moviles agreed in May to buy the stake for US$884
million in cash and assumed debt, making it the second-largest
wireless company in Mexico.
Telefonica Moviles, is the wireless unit of Telefonica, the
largest telephone company in Spain and Latin America. Telefonica
owns more than 90% of Moviles.
CONTACT: PEGASO PCS, SA OF CV
Stroll of the Tamarinds 400A,
Floor 4, Forests of Hills
Mexico, DF 05120
Phone: (55) 5806,8700
Fax: (55) 5806.9080
E-mail: atencionclientes@pegasopcs.com.mx
Home Page: http://www.pegasopcs.com.mx/
Contact:
Roberta Lopez Negrete
Manager of Strategic Communication
Phone: 261 66 38 Fax: 261 66 98
Email: rlopez@pegasopcs.com.mx
Eduardo Jimenez Urias
Phone: 261 66 34
Fax: 261 66 91
E-mail: ejimenez@pegasopcs.com.mx
TELEFONICA MOVILES, S.A.
Goya 24
28001 Madrid, Spain
Phone: +34-91-423-4004
Fax: +34-91-423-4010
E-mail: webmaster@telefonicamoviles.com
Home Page: http://www.telefonicamoviles.com
Contact:
Maria Garcia-Legaz, Head of Investor Relations
Arantxa San Rom n Wong
Raimundo de los Reyes
Paseo de Recoletos, n 7-9 2Y Planta
28004 Madrid
Phone: +34 914 23 40 27
Fax: +34 914 23 44 12
E-mail: relaciones.inversores@telefonicamoviles
=======
P E R U
=======
BACKUS: Conasev Orders Cisneros To Halt Sale of Backus Shares
-------------------------------------------------------------
Peruvian market regulator Conasev ordered Venezuela's Cisneros
Group cease selling its stake in UCP Backus & Johnston SA, Peru's
biggest brewer, relates Bloomberg. The mandat comes as Conasev
investigates a complaint by Venezuela's Empresas Polar SA that
Cisneros and Colombia's Bavaria SA plan to illegally take over
UCP.
Cisneros may exercise its voting rights on shares it acquired and
use options to buy more, Conasev said.
The conflict began last month when Bavaria SA bought a 21.96%
stake of Backus "A" voting shares, or 18.23% of Backus' corporate
capital, for about US$420 million.
Cisneros Group then said it would pay US$200 million for options
to buy 16% of Backus "A" shares. The Venezuelan company
subsequently launched a bid for up to another 7.32% of the Backus
shares, aiming to keep its holdings under the 25% limit that
would spark a public offer on the Lima Stock Exchange. It has
been buying Backus "A" shares on the Lima Stock Exchange at an
offer price of PEN56 ($1=PEN3.5355) a share.
The battle deepened when Polar asked the Conasev to place an
injunction to stop the Cisneros Group from increasing its stake
in Backus.
Polar, which holds 22.1% of the Backus "A" voting shares, said
Cisneros' moves were aimed at taking control of Backus without
making a public offer.
The stock market regulator said it is also investigating a
complaint by Bavaria that Polar may have acquired more than 25%
in Backus without advising authorities.
The order against Cisneros can be appealed within 15 days.
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 Bentn, General Manager
PAN AMERICAN SILVER CORP: Posts Better 2Q02 Results
---------------------------------------------------
HIGHLIGHTS
- Unaudited second quarter net loss was $1.25 million, compared
to net loss of $2.85 million in the second quarter of 2001.
Consolidated revenue was $11.62 million, 44 percent higher than
in 2001.
- Silver production was 1.94 million ounces, 12 percent higher
than in 2001.
- Huaron mine generated strong operating results, producing 1.15
million ounces of silver at a cash cost of $3.64 per ounce,
despite weak by-product metal prices.
- La Colorada mine expansion approved after loan agreement signed
with International Finance Corporation, a member of the World
Bank Group. La Colorada mine royalty purchased and cancelled.
- Agreement reached to acquire Corner Bay Silver, owner of the 77
million ounce Alamo Dorado silver deposit, Mexico.
FINANCIAL (all amounts are expressed in US Dollars)
Pan American Silver Corp. (NASDAQ: PAAS; TSX: PAA) reported a net
loss for the second quarter of $1.25 million ($0.03 per share)
compared to a net loss of $2.85 million ($0.08 per share) for the
second quarter of 2001. The financial improvement during the
quarter is due primarily to a strong performance from the Huaron
mine in Peru, offset by a worse than expected performance from
the Quiruvilca mine, also in Peru. Although the silver price
increased during the quarter, by-product metal prices remained
very weak. Consolidated revenue for the quarter was $11.62
million, 44 percent greater than revenue in the second quarter of
2001 due to higher metal sales volumes, offset by lower metal
prices.
Consolidated silver production for the second quarter totaled
1,939,397 ounces, a 12 percent increase from the second quarter
of 2001. Zinc metal production of 9,472 tonnes was 32 percent
higher than in 2001. Lead production of 5,142 tonnes was 13
percent higher and copper production of 713 tonnes was 48 percent
higher. The increases in metal production are because of better
than planned production at Huaron, partially offset by lower than
expected production at Quiruvilca.
For the six months ended June 30, 2002 consolidated silver
production was 4,004,900 ounces, a 48 percent increase from the
first six months of 2001. Zinc production of 19,579 tonnes was 52
percent greater than in 2001. Lead production of 10,583 tonnes
was 55 percent higher and copper production of 1,382 tonnes was
75 percent higher.
During the second quarter, consolidated operations consumed $1.71
million in operating cash flow, principally due to a pay-down of
accounts payable. The Huaron mine contributed $1.37 million.
Lower than expected silver and ore production and higher
depreciation and reclamation expenses caused a $1.73 million net
loss at the Quiruvilca mine. At the La Colorada mine, operations
were affected by preparations for the pending mine expansion and
mining occurred during the quarter in a low-grade area resulting
in temporary below- budget operating results.
Working capital at June 30, including cash of $21.03 million, was
$17.48 million, an increase of $14.74 million from June 30, 2001.
Net debt repayments during the quarter were $1.03 million.
Capital spending totaled $1.36 million, which primarily consisted
of $1.05 million for La Colorada's mine expansion project.
HUARON MINE, PERU
Huaron had another good quarter, producing 1.15 million ounces of
silver at a total cash cost of $3.64 per ounce and 5,034 tonnes
of zinc from 150,565 tonnes of ore milled. These better than
expected results should continue through 2002. The improvement is
due to cost efficiencies, and to a new zone discovered in late
2001 that is contributing to ore production. Operating profit in
the second quarter was $0.86 million, up from a loss of $0.87
million last year when the mine began operations.
QUIRUVILCA MINE, PERU
The Quiruvilca mine treated 122,906 tonnes during the quarter
(2001- 141,054 tonnes) and produced 610,444 ounces of silver and
4,344 tonnes of zinc (2001 - 808,699 ounces of silver and 5,273
tonnes of zinc). The total cash cost per ounce of silver produced
increased to $5.62 in the second quarter (2001 - $4.29) due to
lower than expected silver grades and ore production. Zinc grades
were higher than expected. The very low present by-product zinc,
lead and copper prices and the narrow veins at the mine make
profitable operation today of the Quiruvilca mine very difficult.
All alternatives to reduce operating losses are being examined at
Quiruvilca.
On the positive front at Quiruvilca, Barrick Gold Corp. announced
an increase in gold resources to 7.3 million ounces at its nearby
Alto Chicama discovery. Barrick has informed Pan American that
further drilling would be carried out in 2002 on Pan American's
Los Angeles property, which forms part of Barrick's land package,
and negotiations are in progress to sell a parcel of Company land
for Barrick's infrastructure needs. In addition, Pan American
optioned its 50 percent holding in the adjacent Tres Cruces
property to its joint venture partner Oroperu Resources, and
Barrick is now completing a farm- in agreement on this land,
which will result in an aggressive exploration program at Tres
Cruces later in 2002. Terms of Pan American's option to Oroperu
and farm-in to Barrick are expected to have only minimal net
impact relative to Pan American's prior direct interest, but will
eliminate Pan American's need to fund all future exploration,
development and mine construction costs.
LA COLORADA MINE, MEXICO
In June, an agreement was signed with International Finance
Corporation, a member of the World Bank Group, for a $10 million
loan for construction of the La Colorada mine expansion. The loan
agreement does not require Pan American to hedge any silver
production. Total capital costs for the mine expansion are
projected at about $20 million and remaining funds will be
derived from Pan American's cash on hand. The mine produced
concentrates from about 200 tonnes per day of sulphide ore. The
expansion will add a 600 tonne per day leach circuit to process
oxide ore and will bring the mine's total production rate to 800
tonnes per day. Production from the expanded operation is
expected to average 3.2 million ounces of silver per year at a
total cash cost of less than $2.70 per ounce for a 13 year mine
life.
In May, the existing 5 percent net smelter returns royalty at La
Colorada was purchased for 390,117 shares and cancelled, which
will increase future cash flow from the mine.
The existing small-scale mine at La Colorada processed 15,210
tonnes of ore and produced 183,198 ounces of silver during the
quarter. Although total cash costs during the quarter were $5.01
per ounce of silver produced, this financial performance is not
meaningful as operating costs include high fixed costs incurred
in planning the imminent mine expansion. These costs will be
capitalized as from July 1. In addition, during the quarter the
mine plan accessed much lower grade ore than will be mined in the
balance of 2002. Mill operations will be suspended for about six
weeks during the third quarter to accommodate underground
development needed for the mine expansion.
Construction activities have now begun at La Colorada for the
mine expansion. A 600 tonne per day oxide mill has been purchased
and moved to site and underground mining equipment ordered.
Completion of construction is scheduled for the third quarter of
2003. Pan American also plans during August to drill an extension
of the known La Colorada vein system to increase the mine's
reserves.
EXPLORATION AND CORPORATE DEVELOPMENT
In May, Pan American announced plans to take over Corner Bay
Silver, a Toronto exploration company that owns the Alamo Dorado
silver deposit in Mexico. The Alamo Dorado deposit contains
proven and probable reserves (calculated at $4.60 silver and $300
gold; Qualified Person - Mintec, Inc.) of 35.5 million tonnes
grading 67 grams of silver and 0.26 grams of gold per tonne, or
77 million ounces of silver and 297,000 ounces of gold. A
bankable feasibility study by AMEC E&C Services, Inc was
completed in July 2002 and recommends construction of a heap
leach mine to produce an average of 6 million ounces of silver
and 29,000 ounces of gold per year at total cash costs of $3.25
per ounce of silver equivalent over an eight year mine life and
11 year project life. Additional silver resources exist that
could extend this life. Information concerning this acquisition
was mailed to shareholders in early August and an extraordinary
shareholders meeting will be held on September 5 to approve this
transaction, which will see issuance of about 8.0 million shares
and 4 million warrants to Corner Bay shareholders.
Elsewhere, Pan American is active in silver exploration at two
locations in Mexico, one in Peru and one in Argentina. In
Bolivia, limited scale mining operations continued at the San
Vicente project, under the operatorship of EMUSA, a Bolivian
mining company that is extracting ore from the mine under a lease
agreement with Pan American.
SILVER MARKETS
Silver prices in the quarter continued to be volatile, reaching a
high of $5.05 on June 5th and a low of $4.45 on April 17th. In
May, the annual World Silver Survey by Gold Fields Mineral
Services was published by the Silver Institute. It documents the
sharp decline in silver demand in 2001, led by a dramatic fall in
industrial demand, though investment demand increased for the
first time in over a decade. The silver supply deficit of about
90 million ounces was filled almost entirely by sales from
China's silver stockpile, though GFMS states that remaining
Chinese stocks are insufficient to keep up this rate of sales for
long. The prospect for 2002 is for a larger silver deficit caused
by higher silver industrial demand and lower silver mine supply.
New silver demand by investors seeking a refuge from the turmoil
of financial markets will increase this deficit, which should
result in a higher silver price. Finally, the US Mint announced
that the enormous US government silver stockpile, which reached
2.2 billion ounces in the 1950's, would be completely consumed in
2002 requiring further US Mint silver needs to be sourced from
the open market.
To see financial statement:
http://bankrupt.com/misc/PANAMERICAN.htm
CONTACT: Ross J. Beaty, Chairman
Rosie Moore, VP Corporate Relations
Phone: (604) 684-1175
=================================
T R I N I D A D & T O B A G O
=================================
BWIA: Mudslinging Continues, CEO Upsets Pilots
----------------------------------------------
Members of the Trinidad and Tobago Airline Pilots Association
(TTALPA) feel that BWIA CEO Conrad Aleong is not acting in good
faith towards the pilots and their grievances, reports the
Trinidad Guardian.
The charge comes after Aleong held discussions with the media
regarding the progress of the conciliatory talks between BWIA
officials, TTALPA and the Ministry of Labor. The press meeting
was in direct conflict with a request by the Ministry to refrain
from doing so until the talks are over.
"The Ministry requested TTALPA refrain, in the national interest,
from inflaming an already chaotic situation by holding a press
conference," the union stated.
The airline has been in talks with TTALPA for the last week
concerning scheduling and other problems affecting the pilots.
The Ministry of Labor has been acting as mediator.
Captain Edward Goddard, chairman of TTALPA, said the talks
haven't seen any progress so far. The association has not been
given any feedback from the airline, but they continue to wait,
he said.
The financial situation at BWIA is getting worse. After reporting
a loss of over US$8.4 million (TT51.8 million) since September
11, the airline is now being plagued by a series of cancellations
and delays, which led it to lose some TT$6 million in revenue to
competing airlines from July 12-31. In the first four days of
August alone, the airline lost another TT$2.2 million.
CONTACTS: BWIA West Indies Airways
Phone: + 868 627 2942
E-mail: mailto:mail@bwee.com
Home Page: http://www.bwee.com/
Contacts:
Conrad Aleong, President and CEO (Trinidad)
Beatrix Carrington, VP Marketing and Sales (Barbados)
Paul Schutz, Chief Financial Officer (Trinidad)
=================
V E N E Z U E L A
=================
SIDOR: To Invest $70M In Modernization Project
----------------------------------------------
Venezuelan steel producer Sidor (Siderurgica del Orinoco) is
embarking on a US$70-million investment that is expected to boost
production and expand its business into new markets, Business
News Americas reports. The plan is to be implemented between now
and next June.
Of the investment, 60% is allotted for purchasing and hiring
local services, while the remaining 40% (US$24 million) will be
provided for civil works using local labor.
The Company plans to modernize the C module of its Midrex II
plant, to bring production up to 125t/h. It also plans to invest
on facilities and equipment such as balling furnace, steel billet
mill, as well as on the automation of some processes.
The steel maker has set a new monthly production record of
266,074 t of slabs for July using four furnaces and three
continuous casting machines, according to Business News Americas,
citing a statement from the Company.
The Company is planning to increase the output of its still mill
to more than 3Mt/y from the designed capacity of 2.4Mt/y during
July 2002-June 2003. It also projects its steel slab production
to reach an annual rate of 3.2 Mt, with a plant efficiency
increasing from 80.6% to 87%.
Sidor increased its production from 240,391 tons in May to
252,593 t in June. The company expects to generate 272,000 t for
August.
For the past four years, Sidor has spent around US$400 million in
technological upgrading, and has cut production costs by 25%.
Sidor is 70% owned by the Amazonia consortium composed of
Hylsamex, Siderar of Argentina, Venezuela's Sivensa and Brazilian
steel maker Usiminas. Its remaining 30% is held by state heavy
industry holding CVG.
CONTACT: SIDERURGICA DEL ORINOCO, C.A. (SIDOR)
Edificio General, Piso 9
Avda. La Estancia
Chuao, Caracas 1060
Venezuela
Tel: (582) 902 3800/3917/3955
Fax: (582) 993 2930
Home Page: www.sidor.com.ve/
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter Latin American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Ma. Cristina Canson, Editors.
Copyright 2002. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.
Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.
The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are $25 each. For subscription information,
contact Christopher Beard at 240/629-3300.
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