/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/020912.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 Thursday, September 12, 2002, Vol. 3, Issue 181 Headlines A R G E N T I N A ARGENTINE BANKS: Government Considers Bankruptcy Protection GRUPO GALICIA: Transfering To Nasdaq SmallCap REPSOL YPF: Petrobras To Appeal Court's Injunction On Asset Swap REPSOL YPF: Partners With Petrobras To Export Gas To Brazil B E R M U D A TYCO INTERNATIONAL: Names New Executive Vice President, CFO B R A Z I L CELG: Eletrobras Delays Purchase As Elections Loom CELG: Eager To See Changes In Annual Rates CSN: Claims Adequate Liquidity To Cover Maturing Debts CSN: Corus Maintains Stance In Planned Takeover ELETROPAULO METROPOLITANA: Gets Two-Week Extension On Debt Talks ELETROPAULO METROPOLITANA: Seals Debt Agreement With Bondholders INTESABCI: S&P Applauds Latin American Exit C H I L E ENAMI: Government Seeks State Guarantees To Restructure Debts MANQUEHUE NET: Foreign Owners May Exit Before Year-end M E X I C O GRUPO MEXICO: May Use Inbursa Credit To Pay Unit's Debt GRUPO TMM: Changes Ticker Symbol, Reorganization's Final Step ISPAT INTERNATIONAL: Concludes Swap, Imexsa Credit Amendments V E N E Z U E L A SIDOR: Braces For Another Union Strike - - - - - - - - - - ================= A R G E N T I N A ================= ARGENTINE BANKS: Government Considers Bankruptcy Protection ----------------------------------------------------------- In a new bid to prevent banking clients from withdrawing cash from the ailing financial system, the Argentine government is considering filing a form of bankruptcy protection for its banks, reports Dow Jones. The report details a plan by Economy Minister Roberto Lavagna to shelter the country's entire financial system by initiating bankruptcy procedures, a move that would protect banks from being forced to return deposits to savers. Meanwhile, the government on Tuesday offered Argentines the chance to swap frozen bank deposits in exchange for government bonds. Lavagna said up to 60% of savings in higher-rate, longer- term bank accounts, known as "term deposits," could be freed under the move. Since December, Argentines have been prohibited from withdrawing money from term deposits and restricted in taking funds from other accounts as the government sought to prop up a banking system that bled US$20 billion in deposits in the first 11 months of last year. Under the new plan, savers will be able to use up to ARS7,000 (US$1,944) from their term deposits to buy government bonds that will mature in 2013. The savers will receive dollars when the debt matures at a rate of one greenback for every ARS1.8 invested. Savers also will be permitted to buy private bank debt using up to ARS10,000 (US$3,000) of the cash they have placed in higher- rate accounts. They will receive pesos back when the bonds mature, also in 2013. However, it was unclear whether depositors would be enticed by the voluntary new offer. GRUPO GALICIA: Transfering To Nasdaq SmallCap --------------------------------------------- The Nasdaq Stock Market delayed delisting Grupo Financiero Galicia SA, the holding company for Argentina's largest publicly traded bank, until December, relates Bloomberg. The U.S. exchange, which threatened to delist the Company after it failed to post required information in July due to Argentina's ongoing political, economic and legal uncertainties, decided to transfer the stock to the Nasdaq SmallCap Market from the Nasdaq National Market leading to a change in the Company's U.S. ticker to GGAEC from GGALE. Galicia's American Depositary Receipts (ADR's) will list on the Nasdaq SmallCap Market beginning Friday thanks to an exception from the SmallCap public disclosure filing requirements, the Company said. The exception is due to expire on December 2. The Buenos Aires-based bank said it expected to provide a signed audit opinion and financial results in accordance with U.S. generally accepted accounting principles by the deadline. "The Company believes that it can meet these conditions, there can be no assurance that it will do so," Galicia said. Grupo Galicia's biggest borrower is the Argentine government, which defaulted on $95 billion of bonds in December and devalued the peso. The company's inability to produce financial statements for U.S. regulators underscores the difficulties it faces in gauging losses as the South American nation slips deeper into recession. CONTACT: GRUPO FINANCIERO GALICIA S.A. Teniente General Juan D. Per>n 456, Piso 3 1038 Buenos Aires, Argentina Phone: (54 11) 4343 7528 / 9475 Home Page: http://www.gfgsa.com Contacts: Eduardo J. Escasany, Chairman and CEO Sergio Grinenco, CFO, Banco de Galicia y Buenos Aires REPSOL YPF: Petrobras To Appeal Court's Injunction On Asset Swap ---------------------------------------------------------------- Brazil's federal energy company Petrobras won't quietly accept an injunction recently handed down by a regional court in southern Brazil. The ruling would lead to a suspension of the US$2-billion asset swap with Spain's Repsol-YPF, suggests Business News Americas. Petrobras said it would make an appeal against the injunction, which came after five Petrobras employees challenged the asset swap, saying the Brazilian company's assets were undervalued by about US$384 million. The official valuation was carried out by US investment bank, Morgan Stanley Dean Witter. "Petrobras will study the presentation of an appeal, but clarifies that this decision does not affect what has happened up to this moment," a spokesperson said, explaining that the assets were formally exchanged at the time the contract was signed in December 2001. Any compensation as a result of devaluation of the Argentine peso was included in the original contract the spokesperson said. However, local papers have it that the court said the final sale agreement cannot be signed until oil regulator ANP and anti-trust authority Cade publish their final decision. Early this week, ANP said it has approved the deal and informed its decision to the justice ministry's Economic Defense Department (SDE). Cade has not yet presented its own decision. CONTACT: 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 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 REPSOL YPF: Partners With Petrobras To Export Gas To Brazil ----------------------------------------------------------- Repsol YPF SA, Europe's fifth-largest oil company, finalized a partnership agreement with Petrobras to export natural gas it produces in Bolivia to Brazil, Expansion reports. Under the agreement, Repsol will produce the gas from its San Antonio and San Alberto fields in Bolivia to be sold in Brazil by Petrobras, Expansion said, without saying how much gas will be exported or where it got the information. ============= B E R M U D A ============= TYCO INTERNATIONAL: Names New Executive Vice President, CFO ----------------------------------------------------------- Tyco International Ltd. (NYSE: TYC, BSX: TTYI) announced Wednesday that David J. FitzPatrick has been appointed Executive Vice President and Chief Financial Officer for the company. Mr. FitzPatrick joins Tyco from United Technologies Corporation, where he has been Senior Vice President and Chief Financial Officer since 1998. Edward D. Breen, Chairman and Chief Executive Officer of Tyco, said, "One of my highest priorities is building an exceptionally capable management team that will bring top talent and experience to the challenges and opportunities we face at Tyco. Dave FitzPatrick is a world-class executive with exceptional credibility in the financial community and I am extremely pleased that he is joining the new team at Tyco. His experience and accomplishments at United Technologies and earlier at Kodak and General Motors are right on target for the needs here. Dave's respect and reputation among the financial community for uncompromising integrity, and his overall grasp of financial and business issues, are strengths that I value highly. He is a perfect fit for Tyco." Mr. FitzPatrick said, "Tyco represents a tremendous opportunity for me. The company's operating businesses are familiar to me and playing a role in maximizing value with Ed Breen and his management team is a great professional challenge. Ed's commitment to building a strong management team dedicated to the highest standards of corporate governance was a prerequisite. Tyco faces significant challenges, yet I am confident we will meet them while serving the interests of investors, customers and employees." Mr. FitzPatrick's appointment is effective immediately. He succeeds Mark Swartz, who, as previously reported, has resigned from the company. Mr. FitzPatrick has served as Senior Vice President and Chief Financial Officer for United Technologies Corp. since June 1998. United Technologies Corp. (UTC) is a global leader of building systems and aerospace products. Carrier, Otis, Pratt & Whitney, Hamilton Sundstrand, and Sikorsky are among its well-known subsidiaries. Earlier, Mr. FitzPatrick was Vice President and Corporate Controller for Eastman Kodak Company. He also enjoyed an 18-year career with the General Motors Corporation, culminating with his responsibilities as Chief Financial Officer, Cadillac Luxury Car Division. Mr. FitzPatrick graduated from the J. L. Kellogg School at Northwestern University with a master's degree in management. He also holds a bachelor's degree in accounting from the University of Illinois, where he graduated with high honors. ABOUT TYCO INTERNATIONAL LTD. Tyco International Ltd. is a diversified manufacturing and service company. Tyco is the world's largest manufacturer and servicer of electrical and electronic components; the world's largest designer, manufacturer, installer and servicer of undersea telecommunications systems; the world's largest manufacturer, installer and provider of fire protection systems and electronic security services and the world's largest manufacturer of specialty valves. Tyco also holds strong leadership positions in medical device products, and plastics and adhesives. Tyco operates in more than 100 countries and had fiscal 2001 revenues from continuing operations of approximately $34 billion. CONTACT: Gary Holmes (Media) 212-424-1314 Kathy Manning (Investors) 603-775-2159 =========== B R A Z I L =========== CELG: Eletrobras Delays Purchase As Elections Loom -------------------------------------------------- Brazil's federal power company Eletrobras' purchase of shares in Companhia Energetica de Goias (CELG) may wait until after presidential elections in October, says Business News Americas. Under the initial agreement, Eletrobras would pay the Goias state government about US$127 million for a 49% stake in CELG. Eletrobras' board of directors is now questioning the validity of the US$127 figure. CELG is struggling with debts of about US$52 million and Eletrobras seeks to step in to revive the Company before putting it on the block for privatization. However, all four leading presidential candidates have expressly opposed any more privatizations once they take office. Should Eletrobras not be allowed to sell CELG, the latter would join the list of five state power companies that Eletrobras took control of in 1996. These companies were also slated for a rapid turnaround and subsequent privatization, but economic and political circumstances prevented a quick sale. Now, Eletrobras may find itself burdened with these companies for a while. CONTACT: COMPANHIA ENERGETICA DE GOIAS (CELG) Rua 2 - Qd. A-37 - Edificio Gileno Godoi Jardim Goias - Goiania - Goias Brazil CEP: 74805-180 Phone: (0XX62) 243-2222 Fax: (0XX62) 243-2100 Email: celg@celg.com.br Home Page: www.celg.com.br/ Contact: Jose Walter Vazquez Filho, President Phone: (0XX62) 243-1001 Samuel Albernaz, Administrative Director Phone: (0XX62) 243-1031 Javahe de Lima, Economic-Financial Dir./Investor Relations Phone: (0XX62) 243-1041 CELG: Eager To See Changes In Annual Rates ------------------------------------------ CELG anxiously awaits the annual rates adjustment undertaken by power regulator Aneel, reports Business News Americas. The Company's concession contract completes another year on September 12, and CELG hopes to have the adjustment settled before that date. However, Brazil's power regulator Aneel has said that it cannot authorize any price adjustments as long as CELG has overdue debts. CSN: Claims Adequate Liquidity To Cover Maturing Debts ------------------------------------------------------ CSN will be able to pay US$140 million in promissory notes coming due in the second week of October as it has still enough cash reserves to cover the said payment, business daily Valor Economico suggests. According to the report, the steelmaker has US$450 million in its treasury and continues to negotiate new credit lines. CSN recently obtained US$70 million in trade finance, says the report. CSN expected to obtain US$100 million but ended up with a two-year loan paying 3.75% on top of Libor, the report adds. Apprehensions among investors over the country's debt situation and the upcoming presidential elections have tightened credit accessibility for many Brazilian firms. To reduce risk, many Brazilian companies are opting to pay off their debts before the new president assumes office in January 2003 instead of rolling them over. 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 CSN: Corus Maintains Stance In Planned Takeover ----------------------------------------------- Corus Group PLC reiterated its commitment to buy CSN for US$4.3 billion in stock and debt despite the political and economic turmoil in Brazil. The statement comes after the Financial Times released a report suggesting that the Anglo-Dutch steel producer was preparing an "escape" plan to scrap its planned takeover of CSN. The disengagement was said to be based on belief that a left-wing government possibly taking power in Brazil in next month's elections could jeopardize a potential ownership in the Rio de Janeiro-based flat steel. Concern is that it may lead to the nationalization of important industrial plants, the newspaper said. However, according to Corus spokesman Mike Hitchcock, the transaction doesn't include withdrawal penalties and Corus therefore doesn't need an "escape" plan should either side walk away from the purchase. "We're not working on a get-out plan," Hitchcock said. "We're keen to do this merger and we hope to bring this to a successful completion during the first quarter of next year." ELETROPAULO METROPOLITANA: Gets Two-Week Extension On Debt Talks ---------------------------------------------------------------- A group of banks led by J.P. Morgan Chase & Co. granted Eletropaulo Metropolitana SA a two-week extension on talks regarding the payment of $191 million in debt. According to Bloomberg, the banks agreed to continue talks until Sept. 23. Eletropaulo, in a statement, said it hopes "to finalize negotiations and the documentation to renew the balance in the mount of US$191 million for a period of 24 months and have its biggest part converted into reais." The Company's failure to reach an agreement with banks underscores its struggles to pay about US$280 million in debt maturing through the end of the year. Brazil's currency has tumbled 26% so far this year, making it more expensive for companies with large dollar-denominated debt to meet obligations. Eletropaulo, which last month paid US$34 million of the US$225 million loan, had until September 9 to complete the discussions over terms of the debt extension. 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 J.P. MORGAN CHASE & CO. 270 Park Avenue New York, NY 10017 Phone: (212) 270-6000 Fax: (212) 270-1648 Home Page: http://www.jpmorganchase.com/ Contact: William Harrison, Jr., Chairman and CEO Dina Dublon, Chief Financial Officer Geoffrey Boisi, Co-CEO of the Investment Bank Investor Relations Phone: (1-212) 270-6000 ELETROPAULO METROPOLITANA: Seals Debt Agreement With Bondholders ---------------------------------------------------------------- Eletropaulo Metropolitana SA struck a deal Friday with the holders of BRL350 million worth of local debt maturing Oct. 1, Dow Jones reports, citing local financial newspaper Valor Economico. Terms of the deal include Eletropaulo paying 23% interest on the bonds. Holders will receive the interest on the debentures Oct. 1, while the principal will be paid in 23 monthly installments. The agreement doesn't include the BRL350 million in debentures coming due in April 1 2003, the local daily said, adding that bondholders preferred to wait until early next year to see how the Company fares with its debt renegotiations. The Brazilian power utility, which is a unit of AES Corp., is struggling under the weight of its debt burden amidst a chaotic financial environment. The Company has been in negotiations with creditors in recent weeks for the extension of maturities on payments on hundreds of millions in foreign currency debt. Eletropaulo is the largest electricity distributor in Latin America in terms of revenues, with a sales volume of 32,563 GWh in 2001. Since privatization on April 15, 1998, Eletropaulo has been owned by LightGas, now known as AES ELPA. AES ELPA is 88.21% owned and controlled by AES. AES ELPA owns 77.81% of Eletropaulo's voting shares and 30.97% of total capital. INTESABCI: S&P Applauds Latin American Exit ------------------------------------------- Bernard De Delonjevialle, a Standard & Poor's Milan-based banking analyst, heartily approved of a decision by Italian financial group IntesaBci to pull out of Latin America completely. In a Business News Americas report, the analyst deemed the move positive for IntesaBci, adding it could contribute to a future change in the group's long-term foreign currency outlook from negative to stable. IntesaBci's original plan was to sell only its Brazilian subsidiary Banco Sudameris Brazil to local bank Itau. The deal is expected to go forward next year. However, the increasingly volatile Latin American markets continued to deteriorate the Italian group's asset quality and risk profile. The difficulties are prompting it to sell the entire Sudameris franchise, which has been the group's banking arm in Latin America. Perhaps the biggest surprise in IntesaBci's announcement was the fact that it has decided to offload its Peruvian subsidiary, Banco Wiese Sudameris. The bank, the second-largest in Peru, has had some difficult years and the Italians have injected hundreds of millions of dollars to improve its balance sheet. Exposure to Latin America has "weighed heavily" on IntesaBci during the last couple of years as the Sudameris franchise has reported mainly losses to the consolidated balance sheet, De Delonjevialle said. Latin American exposure was one of two factors that prompted a change in IntesaBci's long-term foreign currency outlook in February from stable to negative. The other factor was the group's exposure to large international corporations. CONTACT: IntesaBci Investor Relations: Piazza della Scala, 6 20121 - Milano Fax: (39) 02 8850 2587 E-mail: investorelations@intesabci.it Contacts: Andrea Tamagnini, Tel: (39) 02 8850 3180 Marco Delfrate, Tel: (39) 02 8850 2622 Cristina Paltrinieri, Tel: (39) 02 8850 3571 Carla De Alberti, Tel: (39) 02 8850 3159 Giorgio Grossi, Tel: (39) 02 8850 3189 Anna Gervasoni, Tel: (39) 02 8850 3466 Maria Vittoria Buscicchio, Tel: (39) 02 8850 7114 Manuela Banfi, Tel: (39) 02 8850 3273 BANCO WIESE SUDAMERIS Dionisio Derteano, 102 Esquina con Miguel Seminario Lima 27, Peru Phone: +51-1-211-6000 Fax: +51-1-440-7945 Website: http://www.bws.com.pe Luis F. Wiese de Osma, Chairman Eugenio Bertini, CEO Carlos Palacios Rey, President, Executive Committee ========= C H I L E ========= ENAMI: Government Seeks State Guarantees To Restructure Debts ------------------------------------------------------------- As part of an effort to restructure debt of Enami, the Chilean government submitted a bill to congress that would provide state guarantees for US$160 million in debts held by the state-owned minerals company. The legislation is tagged "extra urgent," -- meaning each chamber has a maximum of 10 days to vote on the bill that would provide state guarantees for US$1.5 billion in total. Enami reportedly has debts totaling US$480 million and must reach an agreement with creditor banks to renegotiate some US$240 million of short-term debts in September. The new legislation, which is also seen benefiting other companies such as state subway operator Metro, for its US$1 billion line 4, Valparaiso urban rail network Merval, for its stage IV upgrade, and state railroad company EFE, for its Metrotren services, is necessary because the state-guaranteed debt would mature after the end of the current government, led by President Ricardo Lagos, which is due to leave office early 2006. CONTACT: ENAMI (Empresa Nacional de Mineria) MacIver 459, Santiago, Chile Phone: 637 52 78 637 50 00 Fax: 637 54 52 Email: webmaster@enami.cl Home Page: www.enami.cl/ Contact: Jorge Rodriguez Grossi, President MANQUEHUE NET: Foreign Owners May Exit Before Year-end ------------------------------------------------------ Embattled Chilean local exchange provider Manquehue Net may see its foreign shareholders leave before year-end, according to a report released by Business News Americas. A company source said: "The internal order [of the company] is going to change, but that should not be looked at as different shareholders than the ones already present," implying that local shareholders would assume the foreign shareholders' stakes. Manquehue's foreign shareholders are US-based Williams Communications and the UK's National Grid. These two shareholders' commitment has been put in doubt as they themselves are having problems of their own. Williams is currently undergoing bankruptcy proceedings in the US, while National Grid has said it wants to withdraw from all its South American telecoms operations. Recently, Manquehue sources confirmed that local shareholders will be the only ones contributing to the Company's expected CLP2-billion capital increase. Morever, the source also said that while Manquehue would not be closed to the prospect of a new shareholder, they are no longer actively looking for buyers. Manquehue's four primary shareholders are Chilean gas company Metrogas (25.6%), local group Rabat (21.2%), Williams Communications (16.4%), and UK National Grid (30%). The Company has 96,000 lines in service across 22 boroughs of the capital city Santiago. CONTACT: MANQUEHUE NET S.A. Av. Condor 796, Enterprise City, Huechuraba Santiago Chile Phone: 00 562 243 8800 Fax: 00 562 248 7292 EMAIL: info@manquehue.netl Home Page: http://www.manquehue.net/ http://www.manquehue.cl Contact: Mr. Miller Williams, President Sr.Jos, Luis Rabat Vilaplana, Vice President =========== M E X I C O =========== GRUPO MEXICO: May Use Inbursa Credit To Pay Unit's Debt ------------------------------------------------------- Angelo Garcia, a Vector stock broker analyst, suggested that the ailing copper producer Grupo Mexico will use a US$250 million credit from the Inbursa bank to pay debts of its mining subsidiary Grupo Minero Mexico, says Business News Americas. The move follows a downgrade on the ratings of the world's third largest copper producer to "selective default" by Standard & Poor's for failing to pay principal worth US$26 million on another debt. Simultanously, Banamex Citgroup analysts revealed that Asarco, another Grupo Mexico subsidiary, is facing environmental commitments with the US government amounting to US$500 million. The Company will continue negotiating with US authorities for authorization to sell the 54% stake that Asarco holds in Southern Peru Copper Corporation to American Mining Company, another Grupo Mexico unit. "With these resources they'll clean up Asarco's debts. In case the permission to sell is denied, it will obtain a credit through American Mining Company to backup its US subsidiary," Garcia said. CONTACTS: 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 SOUTHERN PERU COPPER CORPORATION Ave. Caminos del Inca 171 Urb. Chacarilla del Estanque Santiago de Surco Lima 33, Peru Tel: +51 1 372 1414 Fax: +51 1 372 0238 Home Page: http://www.southernperu.com Contacts: German Larrea Mota-Velasco, Chairman & CEO Oscar Gonzalez Rocha, President & Director General Daniel Tellechea Salido, VP - Finance ASARCO, INC. 2575 E. Camelback Rd., Ste. 500 Phoenix, AZ 85016 Phone: 602-977-6500 Fax: 602-977-6701 Home Page: http://www.asarco.com Contacts: German Larea Mota-Velasco, Chairman & CEO Genaro Larrea Mota-Velasco, President Daniel Tellechea Salido, VP & CFO GRUPO TMM: Changes Ticker Symbol, Reorganization's Final Step ------------------------------------------------------------- Mexico City, September 10 2002 - Grupo TMM (NYSE: TMM and TMM/L), the largest Latin American multi-modal transportation and logistics company, and owner of the controlling interest in Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. (Grupo TFM), announced Tuesday that "TMM" will replace the current "TMM/L" stock symbol on the New York Stock Exchange effective Friday, September 13, 2002. Pursuant to shareholder approval of a reclassification of the company's shares at a special meeting held on August 28, 2002, each of the company's Series "L" shares will be exchanged for Series "A" shares on a one-for-one basis effective Friday, September 13, 2002. The company's "A" shares currently trade under the ticker "TMM". "We reclassified our two stock series into one for operational simplicity and ease of communication within the investment community," explained Javier Segovia, the company's president. "Our new organizational structure is a publicly traded corporation with all operations conducted through individually branded and focused subsidiary corporations. We believe that this reorganization has streamlined Grupo TMM's corporate structure and aligned the interests of all shareholders more closely." Headquartered in Mexico City, Grupo TMM is the premier Mexican multimodal transportation company and logistics provider. Through its branch offices and network of subsidiary companies, Grupo TMM provides a dynamic combination of ocean and land transportation services within Mexico. Grupo TMM also has the controlling interest in Transportaci�n Ferroviaria Mexicana (TFM), which operates Mexico's Northeast railway and carries over 40 percent of the country's rail cargo. Visit Grupo TMM's web site at http://www.grupotmm.com,TFM's web site at http://www.tfm.com.mx. Both sites offer Spanish/English language options. To see financial statements: http://bankrupt.com/misc/Grupo_TMM.htm CONTACT: Grupo TMM Javier Segovia or Jacinto Marina Tel. 011-525-55-629-8866 or TFM Mario Mohar, 011-525-55-447-5811 Investor Relations: Brad Skinner, 011-525-629-8725 ISPAT INTERNATIONAL: Concludes Swap, Imexsa Credit Amendments ------------------------------------------------------------- Ispat International N.V. ("Ispat"), (NYSE: IST; AEX: IST), announced Monday that Ispat Mexicana, S.A. de C.V. ("Imexsa"), Ispat's Mexican operating subsidiary, has completed its exchange offer for all outstanding 10-1/8% Senior Structured Export Certificates due 2003 of Imexsa Export Trust No. 96-1 (the "Senior Certificates"). When the exchange offer expired at 5:00 p.m., New York City time, on September 4, 2002, 100% of the Senior Certificates had been tendered. Under the terms of the exchange offer, Imexsa exchanged 10-5/8% Senior Structured Export Certificates due 2005 to be issued by Imexsa Export Trust No. 96- 1 (the "New Senior Certificates") for Senior Certificates validly tendered and accepted for exchange. The New Senior Certificates are fully and unconditionally guaranteed by Ispat, Grupo Ispat International S.A. de C.V. ("Grupo") and certain of the subsidiaries of Imexsa on a senior basis. The New Senior Certificates are also secured on a pro rata basis with Imexsa's bank loans by liens on certain assets of Imexsa and by a pledge of the stock of Imexsa and Grupo. Imexsa also reported that it has completed amendments to each of its bank loans providing for, among other things, deferral of a substantial majority of its amortization obligations through 2005. Dresdner Kleinwort Wasserstein served as financial advisor to Imexsa. This announcement is not an offer to purchase or a solicitation of consents with respect to any Senior Certificates or an offer of Senior Notes for sale. Securities may not be offered and sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States must be made by means of a prospectus that may be obtained from the issuer or selling security holder and will contain detailed information about the company and management, as well as financial statements. CONTACT: ISPAT INTERNATIONAL N.V. T. N. Ramaswamy, Director Finance +44-20-7543-1174 Annanya Sarin, Head of Communications +44-20-7543-1162, or +31-10-404-6738 John McInerney, Investor Relations Citigate Dewe Rogerson, +1-212-419-4219 ================= V E N E Z U E L A ================= SIDOR: Braces For Another Union Strike -------------------------------------- The head of Sutiss labor union warned Siderurgica del Orinoco (Sidor) that the largest union may go on strike as early as next week if the Venezuelan steelmaker fails to respond to their demands at the end of the week, relates Bloomberg. "If there is no agreement, we will take more drastic actions," Sutiss head, Ramon Machuca, said. "We are hoping there will be an agreement." The warning came while Sidor is trying to overcome the effects of a 22-day strike last year that cost it US$60 million. That strike led to the company's second debt restructuring in two years. In December, the company defaulted, and in July said it had reached a preliminary agreement with banks and the government to restructure US$1.45 billion in debt. The union also held a 15-hour strike Monday. The two groups are involved in a conflict revolving around benefits such as holidays. "The Company made some unilateral changes to the contract," he said. The two sides signed a new agreement in May 2001. It expires in 18 months, Machuca said. Sidor has lost money every year since it was sold by the government in 1997. Venezuela's government last month capitalized US$350 million of a US$700-million debt Sidor had with the state- owned Bandes investment bank, raising the country's stake to 42% from 30%. 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. 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