/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/021203.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, December 3, 2002, Vol. 3, Issue 239 Headlines A R G E N T I N A BANCO RIO/FRANCES/BANKBOSTON: Strike Deal To Swap Branches * Argentina Raises Utility Rates To Satisfy IMF B A H A M A S BAHAMASAIR: Minister Disappointed at Union Head Remarks BAHAMASAIR: Government Official Lashes At Management B E R M U D A MRM: Fight For Legion Companies Continues SEA CONTAINERS: Files Offering for 2 Million Class A Shares TRENWICK GROUP: Suspends Preferred Share Dividends TYCO INTERNATIONAL: Ex-Exec's Flat Goes Up For Sale B R A Z I L CEMAR: Extends Deadline For Bidders To Present Proposals EMBRATEL: Court Orders $3.3M Fees Payment to Telemar BANCO FIAT: Sale To Fiat To Be Announced Soon LIGHT: Moody's Downgrades Parent's Ratings LIGHT: EdF Amends Loan Agreement With German Bank SABESP: Board of Directors Appoints New Executive Committee C H I L E ENAMI: Renews Contract With Pucobre C O L O M B I A EDT: Liquidation Deadline Passes Without Regulator's Decision J A M A I C A CARIBBEAN AIRLINES: Gilmore Urges Governments To Transfer Shares M E X I C O EXCELSIOR: Owners Agree To Sell To Group Of Investors For $150M ROHN: Selling Substantially All Assets, Including Mexican Ops T R I N I D A D & T O B A G O BWIA: Reorganization May Include Managerial Job Cuts U R U G U A Y UTE: Eletrobras To Repay $2.6M Debt With Electricity - - - - - - - - - - ================= A R G E N T I N A ================= BANCO RIO/FRANCES/BANKBOSTON: Strike Deal To Swap Branches ---------------------------------------------------------- As part of a measure to reduce costs by eliminating branches with low commercial business volumes, Banco Rio, Banco Frances and BankBoston signed an accord to "swap branches" at 15 provincial locations. According to a report released by Internet Securities, the project has been discussed since last April but only began to take shape in recent weeks. For those banks -- all backed with foreign capital -- the idea is to carry out an "orderly exit." The mechanism consists of bank A ceding its portfolio to bank B in a determined location. In exchange, bank A receives a portfolio from bank B in another part of the country. Thus, each bank closes a branch and maintains another with better perspectives, the report suggests. The plan allows banks to downsize their structures without losing operating volume since the exchange is balanced. Banco Rio, the Argentine subsidiary of Spanish group Santander Central Hispano, is one of the local banks that posted the largest losses during the first half of this year due to the massive devaluation of the Argentine peso. According to reports, the bank reported losses of ARS97.5 million during the period. Meanwhile, Banco Frances, which is owned by Spain's BBVA, accrued ARS81.7 million in losses during the first half of the year. CONTACTS: BANCO RIO Bartolome Mitre 480 1036 Buenos Aires, Argentina Phone: +54-14-341-1081-1580 Fax: +54-14-341-1074-1084 Home Page: http://www.bancorio.com.ar Contacts: Ana Patricia B. S. de Sautuola y O'Shea, Chairman Jose L. E. Cristofani, Exec. Vice Chairman and CEO Pablo Caride, Corporate Finance BANCO FRANCES Maria Elena Siburu de Lopez Oliva Investor Relations Manager, in Argentina Tel. 5411-4341-5035 E-mail: mesiburu@bancofrances.com.ar Maria Adriana Arbelbide Investor Relations Tel. 5411-4341-5036 E-mail: marbelbide@bancofrances.com.ar * Argentina Raises Utility Rates To Satisfy IMF ----------------------------------------------- Argentine President Eduardo Duhalde has signed a decree that raised prices of natural gas by 7.2 percent and electricity by 9 percent as part of the preconditions to a new loan from the International Monetary Fund, reported local daily La Nacion. However, lower-income consumers, about 47.5 percent of electricity users and 35 percent of gas customers will be exempted from the price hikes. The decree, which was signed last Saturday, would increase rates, which had been frozen since January. Utility companies with dollar-denominated debts had encountered terrible losses as the local currency lost about 72 percent of its value to the dollar. The increase is in compliance with the demands of the IMF in order for the country to take advantage of a new loan agreement from the lender. The IMF had been asking for price increases of 30 percent. Argentina has been requesting a new loan from the IMF after defaulting on US$95 billion of bonds last December. Negotiations have been ongoing for several months without success thus far for the country. ============= B A H A M A S ============= BAHAMASAIR: Minister Disappointed at Union Head Remarks ------------------------------------------------------- The Board of Bahamasair is still studying whether the present management team would remain at the carrier, said Minister of Public Works and Utilities Bradley Roberts. A report from the Nassau Guardian's Saturday edition revealed that Roberts' statements were made in response to the remarks by the president of the Airport Airline Workers Union, Frank Carter. "I am also somewhat surprised that Mr. Carter would suggest that the Board start the process of downsizing at management level. Clearly, Mr. Carter must have heard the Prime Minister state publicly at the introduction of the new Board, that the Board was empowered to decide if the present management team should remain at Bahamasair. That decision too is currently under consideration by the Board as a part of doing what is necessary to turn Bahamasair around," said Roberts. Mr. Roberts also expressed disappointment that Carter chose to negotiate the matter with the press, saying that he had personally invited Carter, before the pronouncement of the board's recommendations for downsizing to submit recommendations for the revival of Bahamasair. He also said that he is surprised by Carter's reaction as what is happening to Bahamasair is happening worldwide - major airlines are having ay-offs and readjustments. He added that not all of the surviving airlines are on the borderline of bankruptcy. Roberts explained that, under normal conditions, retirement at 55 is voluntary. However, under the present financial condition of the carrier, retirement would be manditory. Meanwhile, some of those who are below 55 at the time of the job cuts may be realigned into government positions. The Minister added that it would be counter-productive to go on with the exercise without considering the people and the unions who will be affected. However, decisions are due to be made. "To this end, it would behoove the AAAWU to join the Board in the process of moving Bahamasair forward, while keeping in mind that those persons that Mr. Carter represents, inclusive of himself, are taxpayers also", according to Roberts, as quoted by the report. CONTACT: Bahamasair Holdings Limited P.O.Box N 4881 Nassau, Bahamas Tel: (242) 377-8451 Fax: (242) 377-7409 BAHAMASAIR: Government Official Lashes At Management ---------------------------------------------------- Bahamas Parliamentary Secretary for the Ministry John Carey is calling for Bahamasair management to "put up or shut up", according to a report from the Nassau Guardian. Mr. Carey said that Bahamasair is using much of the government's revenue while failing to satisfy expectations. According to the Secretary, the airline is becoming an economic burden to the country's taxpayers, using approximately US$125,000 per day. He added that employees are continually complaining of the poor leadership in the management. "Bahamasair's management has had years to perfect the desired solutions that are needed. It is evident that they have run out of workable ideas; they are running out of time and the old recycled ideas are simply a waste of taxpayer's money. The results we have received so far are not acceptable to the people," said Carey. Last year, the Free National Movement Government injected almost US$45 million dollars into Bahamasair to keep it alive. Mr. Carey said that the management team at Bahamasair must do its part as the government had proposed many initiatives to help the airline achieve economic prosperity. He revealed that the government had come up with a comprehensive business plan aimed at the development of Bahamasair. The plan would provide the airline with all the support necessary for stability and viability. He added that the government would retain its part ownership of the airline because of its potential and the intricate role played in the tourist industry. The government is also planning to enter into agreements with local commuter carriers to service low-density routes that are not profitable to Bahamasair. ============= B E R M U D A ============= MRM: Fight For Legion Companies Continues ----------------------------------------- Commonwealth Court Judge Mary Hannah Leavitt heard the case between Pennsylvania Insurance Commissioner Diane Koken and Bermuda-based Mutual Risk Management, Ltd. MRM's Legion Insurance Co. and Villanova Insurance Co. were put into rehabilitation after facing difficulties in recovering insurance money due to them. Ms. Koken declared the two companies as insolvent and ordered the liquidation of their assets. However, MRM is fighting the order saying that they hope to recover tens of millions of dollars from reinsurers. MRM contends that this would enable the two companies to pay outstanding workers' compensation and commercial claims and allow it emerge from rehabilitation. A report from the Philadelphia Inquirer said that a ruling is expected by January. CONTACT: MUTUAL RISK MANAGEMENT INC. P.O. Box HM 2064 44 Church Street Hamilton HM HX Bermuda Tel: (800) 772-0849 or (441) 295-5688 Contacts: Angus H. Ayliffe, Chief Financial Officer Fran Tucker, Investor Relations Legion Insurance Company (In Rehabilitation) Villanova Insurance Company (In Rehabilitation) Legion Indemnity Company One Logan Square Suite 1400 Philadelphia, PA 19103 Tel: 215.979.7879 Fax: 215.963.1205 Contacts: Joseph M. Boyle, Acting President Paul Forbes, Senior Vice President - Underwriting Andrew Walsh, General Counsel Steve Zielinski, Senior Vice President - Claims Gregg Frederick, Senior Vice President - Reinsurance SEA CONTAINERS: Files Offering for 2 Million Class A Shares ----------------------------------------------------------- Sea Containers Ltd., a Bermuda-based leisure and marine cargo company, plans to periodically sell up to 2,000,000 Class A common shares, reports Reuters. Citing a company filing with the U.S. Securities and Exchange Commission, Reuters reports that the Company plans to use the proceeds for general corporate purposes, which may include debt reduction, capital expenditures, possible acquisitions and working capital. Sea Containers recently reported higher quarterly earnings but said that it would have to sell assets in order to meet heavy debt repayments in 2003, including US$158 million of senior notes falling due on July 1. The Company said it had intended to sell part of its stake in Orient-Express Hotels Ltd. to meet this obligation but that company's share price has declined since May to about US$13 from US$20, making the planned sale of US$100 million worth of shares unattractive. Instead, it will raise funds by reducing its shareholding in Orient-Express to only slightly less than 50% from 57% in order to deconsolidate Orient-Express Hotels from Sea Containers' balance sheet. It will also increase borrowings at its Silja Oyj Abp shipping unit and suspend payment of common share dividends. Sea Containers reported third-quarter net income of US$17.9 million, or 84 cents per share, up from net income of US$6.6 million, or 35 cents per share. CONTACT: Sea Containers Ltd 41 Cedar Avenue P.O. Box HM 1179 Hamilton HM EX, Bermuda Phone: + 1 (441) 295 2244 Fax: + 1 (441) 292 8666 Email: investorinfo@seacontainers.com Website: www.seacontainers.com TRENWICK GROUP: Suspends Preferred Share Dividends -------------------------------------------------- Trenwick Group Ltd. ("Trenwick") announced Friday that, in accordance with the terms of Trenwick's current credit facility and forbearance agreement with its letter of credit providers, Trenwick has elected to suspend, with immediate effect and for an indefinite period, dividends or distributions payable on the outstanding Trenwick Group Ltd. Series B Cumulative Convertible Perpetual Preferred Shares, LaSalle Re Holdings Limited's Series A Preferred Shares and Trenwick Capital Trust I 8.82% Exchange Subordinated Capital Income Securities. The suspension on the payment of dividends on LaSalle Re Holdings Limited's includes a suspension of the dividend payable on December 2, 2002 to holders of record on October 31, 2002. Background Information Trenwick is a Bermuda-based specialty insurance and reinsurance underwriting organization with two principal businesses operating through its subsidiaries located in the United States, the United Kingdom and Bermuda. Trenwick's reinsurance business provides treaty reinsurance to insurers of property and casualty risks from offices in the United States and Bermuda. Trenwick's international operations underwrite specialty insurance as well as treaty and facultative reinsurance on a worldwide basis through its London-based operations. CONTACT: TRENWICK GROUP Alan L. Hunte, 441/298-8082 TYCO INTERNATIONAL: Ex-Exec's Flat Goes Up For Sale --------------------------------------------------------- Tyco International, Inc. has received permission to sell the apartment formerly occupied by its former finance chief Mark Swartz. According to a report from the Associated Press, the Upper East Side apartment would be sold to the head of Sony music group, Tommy Mottola, for US$9.25 million. The asking price was US$15.9 million. The proceeds will go to an escrow account because the Company wants to make sure Swartz did not own the apartment, according to the report. New York Supreme Court Judge Martin Shulman gave the permission to sell the 5000 square-foot apartment. The Company also plans to sell another apartment used by Swartz. In addition, Tyco also hopes to sell the apartment used by former CEO Dennis Kozlowski. Both Swartz and Kozlowski face charges of grand larceny and enterprise corruption for allegedly looting company coffers. Both former officers are currently out on bail. CONTACT: TYCO INTERNATIONAL LTD. Corporate Office The Zurich Centre, Second Floor 90 Pitts Bay Road Pembroke HM 08, Bermuda Phone: 441-292-8674 Home Page: http://www.tyco.com =========== B R A Z I L =========== CEMAR: Extends Deadline For Bidders To Present Proposals -------------------------------------------------------- Qualified bidders for Maranhao state distributor Cemar now have until Dec. 11, instead of Nov. 29, to present their bids to take control of Maranhao state distributor Cemar, says Business News Americas. Sinval Zaidan Gama, the Cemar trustee appointed by Aneel, explained that the Brazilian power regulator extended the deadline to grant a request by federal power company Eletrobras, one of Cemar's main creditors. Eletrobras is reportedly analyzing new alternatives for paying off the debt to be presented to its own board of directors on December 9. The qualified bidders of Cemar are SVM Participacoes e Empreendimentos, part of the GP Capital group of GP Investimentos; Docas Investimentos; and Canada's Brascan Participacoes Financeiras. Rather than offering cash for the shares, the bidders are being asked to provide the best solution to resolve Cemar's outstanding debt problem. In a statement, Aneel said that the successful bidder will be announced on December 16 as planned. Aneel intervened Cemar on August 21, after its parent company, US-based PPL Global, forced Cemar to file for protection from creditors. At the time, PPL said creditors had forced it to abandon talks to sell the Company to Franklin Park. Cemar, which distributes electricity to about 1 million people in Maranhao state, has been hurt by declining power demand and losses triggered by nine months of power rationing that ended in March. The drop in revenue forced the Company to miss payments on its BRL560 million (US$180 million) debt and forced PPL Corp. to write off all of its US$317 million investment in the unit. CONTACT: COMPANHIA ENERGETICA DO MARANHAO Av. Colares Moreira, 477 65075-441 - Sao Luiz- MA PHONE: (98) 217-2119 FAX: (98) 235-3024 WEBSITE: http://www.cemar.com.br/ CREDITORS: CENTRAIS ELETRICAS BRASILEIRAS S.A. - ELETROBRAS Avenida Presidente Vargas 409, 13 Andar 20071-003 Rio de Janeiro Brazil Phone: (21) 2514-5151 Fax: +55-21-2242-2697 Home Page: http://www.eletrobras.gov.br Contacts: Cladio da Silva avila, President Jose Alexandre Nogueira de Resende, Director of Financial and Market Relations Investor Relations Division Phone: (0XX21) 2514-6207 / 2514-6333 Av. Presidente Vargas, 409 - 9 andar 20071-003 - Rio de Janeiro - RJ Email: arlindo@eletrobras.gov.br CENTRAIS ELETRICAS DO NORTH DO BRAZIL - ELETRONORTE Av. Presidente Vargas, 489 -13 andar. 20071-003- Rio do Janeiro RJ Phone: + (55+61) 429 5139 Fax: +(55+61) 328 1373 E-mail: elnweb@eln.gov.br Home Page: http://www.eln.gov.br/ Contact: Mr. Arlindo Soares Castanheira, Investor Relations Phone: 55 21 2514.6331 55 21 2514.6333 Fax: 55 21 2242.2694 E-mail: arlindo@eletrobras.gov.br FLEETBOSTON FINANCIAL CORP. 100 Federal Street Boston, MA 02110 Phone: (617) 434-2200 Fax: (617) 434-6943 URL: http://www.fleet.com/home.asp MAJOR SHAREHOLDERS: PPL GLOBAL (90%) 11350 Random Hills Road Suite 400 Fairfax, VA 22030 Phone: 703-293-2600 Fax: 703-293-2659 William F. HechtChairman, President/CEO John R. Biggar, Executive Vice President/CFO EMBRATEL: Court Orders $3.3M Fees Payment to Telemar ---------------------------------------------------- A Rio de Janeiro justice tribunal ordered long distance operator Embratel to pay Telemar BRL12 million (US$3.3mn) in interconnection fees the long distance operator has withheld since August. According to Business News Americas, Embratel is liable for a 300,000-reais fine each day it does not pay the fees. Concurrently, Embratel, along with Intelig, lost in their battle against Telemar, Telesp and Brasil Telecom after the country's regulator Anatel ruled that the three fixed line operators are not guilty of charging Embratel and Intelig excessive interconnection fees. The ruling came in response to accusations filed by the long distance operators in April. Anatel has given the fixed line operators five days from November 27 to comment on its findings, before passing the case over to the antitrust authority Cade. The legal action coincides with the fixed line operators' entry into the long distance market earlier this year, which Embratel has contested in various other lawsuits. Cade in fact ruled in favor of Telesp in a similar case in May. 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 BANCO FIAT: Sale To Fiat To Be Announced Soon --------------------------------------------- Brazil's second largest private bank Banco Itau is expected to officially announce its acquisition of the Brazilian banking unit of Italian carmaker Fiat in the coming days. According to local daily Jornal do Commercio, sources close to the process said that the deal is already closed and that parties are just putting the finishing touches to the contract. The value of the operation is still not known, but related reports indicate that Banco Fiat is worth an estimated US$97.4 million. The sale of the bank is part of Fiat's effort to sell assets to raise US$1.12 billion by the end of this year. Fiat is facing total debts of US$3.5 billion and is struggling to honor agreements with creditors. Itau would take over Banco Fiat's retail operations and the carmaker would maintain the bank's wholesale operations. LIGHT: Moody's Downgrades Parent's Ratings ------------------------------------------ Electricite de France, the French-based parent of Brazilian electricity distributor Light Servicos de Eletricidade S.A., had its rating downgraded by Moody's Investors Service. The ratings agency downgraded EdF's rating to Aa3 from Aaa, concluding a five-month examination of the Company's prospects once it ceases to be part of the French state some time next year. Giving up its status as an "etablissement public a caractere industriel et commercial" (EPIC), or part of the French state, paves the way for a partial privatization that France hopes to undertake in or after 2004. Friday's three-notch downgrade is "pretty harsh," said Adrien Fourcade, utilities credit analyst at BNP Paribas. But he said it is the logical step. "Moody's had to take a look at the company's rating without the EPIC status" and it is in line with the agency's downgrade of fellow EPIC Gaz de France (F.GAF) Nov. 12 to Aa3 from Aa1. Moody's said it believes EdF will "remain a company of high national importance," with France expected to keep a long-term majority stake, but that its financial profile has weakened over the last few years. In its review, Moody's also mentioned EdF's investments in Latin America, which showed poor performance. EdF has put billions of euros into its operations in Argentina, Mexico and Brazil, but political instability and currency falls have wiped out rewards. "EdF's investments in Latin America have not yielded expected results and this has significantly impacted the company's profitability and debt protection measures," said Fourcade. EDF has injected more than US$1.2 billion into Light this year alone, the latest being a US$204-million loan issued in October, to help the company meet its obligations. CONTACT: ELECTRICITE DE FRANCE (EDF) Rue Louis-Murat 75384 Paris Cedex 08, France Phone: +33-1-40-42-54-30 Fax: +33-1-40-42-79-40 Home Page: http://www.edf.fr Contact: Francois Roussely, Chairman and CEO Yannick d'Escatha, COO, Industry Branch Jacques Chauvin, Chief Financial Officer LIGHT: EdF Amends Loan Agreement With German Bank ------------------------------------------------- After renegotiating a loan taken out by its Brazilian subsidiary Light from Germany's Deutsche Bank between March and June 2000, French parent Electricite de France successfully amended the loan agreement. According to Business News Americas, the re-negotiated loan agreement eliminates a US$64-million payment that was due last October but was not paid. The US$175 million principal will be paid off in two tranches: the first for US$15 million in 2003 and the second for the remaining US$160 million in 2007. Deutsche Bank in turn transferred the risk to investors by issuing credit-linked notes. Income from the Light debt payments is used to remunerate the owners of the credit linked notes. Light is paying Libor plus 435 basis points on the loan. CONTACT: LIGHT SERVICOS DE ELETRICIDADE S.A. Avenida Marechal Floriano, 168 20080-002 Rio de Janeiro, Brazil Phone: +55-21-2211-2794 Fax: +55-21-2211-2993 Home Page: http://www.lightrio.com.br Contact: Bo Gosta Kallstrand, Chairman Michel Gaillard, President and CEO Joel Nicolas, Executive Director, Operation Paulo Roberto Ribeiro Pinto, Executive Director, Investor Relations and CFO SABESP: Board of Directors Appoints New Executive Committee ----------------------------------------------------------- Cia. de Saneamento Basico do Estado de Sao Paulo (NYSE:SBS) (Bovespa:SBSP3), the largest water and sewage utility company in the Americas and the third-largest in the world (in terms of number of customers), announced Friday that a new Executive Committee was appointed in a Board of Directors meeting held on Nov. 28, 2002, which has the following composition: President and Chief Executive Officer: Mauro Guilherme Jardim Arce; Economic and Financial Officer and Investor Relations Officer: Sandra Maria de Sao Thiago Lopes Piccardi; And the following Executive Officers: Reinaldo Jose Rodriguez de Campos; Antonio Marsiglia Neto; Sergio Pinto Parreira; and Jose Everaldo Vanzo. CONTACT: SABESP, Sao Paulo Helmut Bossert, 011/5511-3388-8664 hbossert@sabesp.com.br or Marisa Guimaraes, 011/5511-3388-9135 marisag@sabesp.com.br www.sabesp.com.br ========= C H I L E ========= ENAMI: Renews Contract With Pucobre ----------------------------------- Chilean mid-sized copper miner Punta del Cobre (Pucobre) is due to resume Dec. 1 deliveries of 45,000t/m of sulfide minerals to state minerals company Enami's Matta concentrator plant for processing, Business News Americas indicates. The announcement comes after the two parties decided to renew a contract, obliging Pucobre to resume shipments even though copper prices have not remained above US$0.70/lb for three months. In January 2001, Pucobre and Enami signed a contract in which the former agreed to supply Enami's Matta concentrator with 1.65Mt of mineral over four years. Under the contract, Pucobre was entitled to halt deliveries of the material if the price of copper remains below US$0.70/lb for three months. So when copper prices dropped down to US$0.70/lb for three months, Pucobre halted contractual deliveries in October. But in a statement, Enami revealed that Pucobre never stopped delivering the sulfides, but they were supplied for the last two months under a separate agreement whereby Enami gave Pucobre oxide ores from small-scale miners in exchange for the sulfides. Even so, Enami said it was satisfied with this "important" agreement, which will allow operations to return to normal at its Matta plant, in northern Chile's Region III. Enami struggling to deal with debts of some US$480 million. Late last year, in an effort to help resolve its debt problems, Enami attempted to issue some US$140 million in bonds. However, the issue flopped because the bonds did not receive an explicit state guarantee and as a result were rated AA by ratings agencies as opposed to AAA. Enami's debts mounted substantially in the 1990s with a US$164- million "advanced profits" payment to the state, supplied with loans from Lyonnaise and Dresdner banks. 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 =============== C O L O M B I A =============== EDT: Liquidation Deadline Passes Without Regulator's Decision ------------------------------------------------------------- Colombia's public services regulator Superservicios only had until Thursday to decide on the liquidation of the financially choked Barranquilla municipal telco EDT, which it intervened in May 2000. However, the regulator failed to come up with a decision by the deadline, saying it was still working on the issue and that it expected to make a statement on Monday. Business News Americas suggests that lack of funds may be delaying the decision, noting that the regulator said in August that liquidating EDT would require a capital injection of about COL461 billion (US$165mn). The telco's pension fund requires COL196 billion, while laid off workers would require COL70 million in severance, and other debts add up to COL194 million. EDT has 199,936 telephone lines, assets of COL485 billion, and COL255 billion in liabilities. ============= J A M A I C A ============= CARIBBEAN AIRLINES: Gilmore Urges Governments To Transfer Shares ---------------------------------------------------------------- John P.T. Gilmore wrote a letter proposing a solution to all the woes of the airlines in the Caribbean. Below is the letter published by The Antigua Sun: Dear Editor: In the context of the current debate within the Caribbean over the future of the region's three semi-privatised loss making airlines, Air Jamaica, BWIA and LIAT and the two 100 per cent government owned, similarly loss making airlines, Bahamasair and Cayman Airways, the recently announced alliance between Quantas and Air New Zealand to create a strong Australasian regional airline group may be of interest. Under the proposed Australasian airline alliance both airlines would maintain their separate corporate and marketing identities with rationalised scheduling and planning in the initial stages. This would be followed by integration in other areas such as purchasing, aircraft, maintenance specialisation etc. to enhance efficiency and profitability, with the option for complete integration left for a later decision based on the success of the initial stages. Few now question the need for a strong Caribbean regional airline group with the network, size and scale to be profitable in today's competitive airline environment. One relatively modest practical step towards a regional airline solution for the Caribbean could be for the governments of Jamaica and Trinidad to transfer their airline shares (in Air Jamaica, Air Jamaica Express, BWIA and LIAT) to a jointly owned holding company ("Airlines of the Caribbean".) This could be established and owned by them with a specific mandate to work towards regional airline integration. Other regional governments including those with a shareholding in LIAT could be invited to participate. The actual ownership percentage is probably not all that material in economic terms (although no doubt it will be politically) as all the airlines have a negative net worth. The Cayman Islands and the Bahamas, which own their loss making airlines, could also, be included within the proposed structure. The "Airlines of the Caribbean" holding company would function as a private company working with the other shareholders of the airlines to achieve its objective. The airlines involved would continue to operate as individual airlines with joint scheduling, planning, purchasing etc. developing through agreements fostered by the holding company and backed by its shareholding powers. An agreement between the shareholder governments could be that all future financial assistance for any of the airlines involved would be made through the holding company. This would give it significantly enhanced influence among the semi-privatised airlines that have come to rely on their government rather than their private sector shareholders for financial support when losses have been incurred. I suggest this as a practical and painless initial step that the regional governments could make to underline their commitment to an integrated regional airline system, which would give the proposed airline holding company considerable influence to move the airlines through agreement to greater integration and efficiency. The integration of the three major semi-privatised airlines (Air Jamaica, BWIA and LIAT), either alone or with the addition of Cayman Airways and Bahamasair, has the potential to provide an integrated, efficient and profitable air transport system for intra and extra regional travel with the scale to compete effectively. Competition intra-regionally will continue to exist from the likes of Caribbean Star/Caribbean Sun and the newly independent American Eagle, while extra regional competition will continue to be provided by the major US, Canadian and UK carriers. Without some degree of integration the airlines of the Caribbean will continue to sustain losses that can only be covered by the taxpayers in a regime that if history tells us anything, will involve a predictable cycle of increasing, not diminishing, losses. John P.T. Gilmore Scotland =========== M E X I C O =========== EXCELSIOR: Owners Agree To Sell To Group Of Investors For $150M --------------------------------------------------------------- Excelsior newspaper is to become a private business soon after members of an employee cooperative agreed to sell the ailing newspaper. The cooperative, which it has owned for 70 years now, will sell the business to a group of U.S. and Canadian investors for US$150 million. The newspaper made the announcement in a front-page story Saturday, without revealing details about the investors, except that they were led by Mexican Miguel Aldana Ibarra. According to an AP report, the paper's employee cooperative has struggled to unite since October 2000, when its members ousted director Regino Diaz Redondo. The workers voted to fire another cooperative leader two months later. The newspaper is mired in debt, and employees have often worked without pay. Excelsior, which was once one of Mexico's most influential newspapers, began to experience troubles in 1976 when the government of then-President Luis Echeverria organized an internal coup within the cooperative to silence its criticism. Excelsior became a faithful supporter of the governing party -- an editorial line that continued until July 2000, when Vicente Fox became the first opposition party candidate elected president. CONTACT: DIARIO EXCELSIOR (MEXICO) Ecuador 3650, Of. 804 Ciudad Santiago Zona Region Metropolitana Phone: 7787583 Fax: 7791110, 2753169 E-mail: juribe@lauca.usach.cl Contact: Sir Jorge Uribe Navarrete, Credited Correspondent ROHN: Selling Substantially All Assets, Including Mexican Ops ------------------------------------------------------------- ROHN Industries (Nasdaq: ROHN), a provider of infrastructure equipment for the telecommunications industry, announced Friday that it has agreed to sell substantially all its assets to an affiliate of Platinum Equity LLC, a Los Angeles-based private equity firm, for approximately $8.75 million, plus the assumption of certain liabilities. Platinum Equity has agreed to purchase the assets relating to ROHN's towers division, enclosures division, accessories division and construction services division as well as the Company's operations in Mexico. This includes the Company's facilities located in Peoria, Illinois; Frankfort, Indiana and Bessemer, Alabama. The transaction has been approved by the Company's Board of Directors. The transaction is subject to the approval of ROHN's stockholders. ROHN's majority stockholder, the UNR Asbestos- Disease Claims Trust, has indicated it will not support the transaction based on its current terms. The transaction also requires the approval of the lenders under ROHN's credit facility, who have indicated they will support the transaction. The Company, the Trust and the Company's bank lenders are currently in negotiations regarding the transaction. The transaction is also subject to a number of other conditions, including Platinum Equity's satisfaction with the results of its ongoing due diligence investigation of the purchased assets and the Company's ability to comply with applicable federal securities laws. If the Trust does not approve the transaction promptly, it cannot be consummated by year-end in compliance with the federal securities laws. If ROHN does not consummate a sale of substantially all its assets by year-end, it will lose a significant tax benefit. Accordingly, if the Trust does not approve the transaction promptly, ROHN intends to terminate its agreement with Platinum Equity and pursue alternative transactions. The proceeds from the sale will be used to repay the lenders under ROHN's credit facility. The transaction is not expected to result in any dividend or other distribution to the Company's stockholders. ROHN Industries, Inc. is a manufacturer and installer of telecommunications infrastructure equipment for the wireless industry. Its products are used in cellular, PCS, radio and television broadcast markets. The Company's products and services include towers, design and construction, poles and antennae mounts. ROHN has ongoing manufacturing locations in Peoria, Illinois and Frankfort, Indiana along with a sales office in Mexico City, Mexico. CONTACT: ROHN Industries, Inc. Al Dix, Chief Financial Officer Tel. +1-309-633-6809 Email: al--dix@rohnnet.com URL: http://www.rohnnet.com ================================= T R I N I D A D & T O B A G O ================================= BWIA: Reorganization May Include Managerial Job Cuts ---------------------------------------------------- The staff rationalization at Trinidad and Tobago's national airline may involve the removal of as many as eight managers, according to a report from the Trinidad Express. According to the report, one manager received information from the airline's human resource department that his position is being made redundant, and was offered a compensation package. BWIA's director of Corporate Communications, Clint Williams could not confirm whether managerial cuts are part of the plan. Other employees are also complaining that salaries due Nov. 29 are yet to be received this Monday, December 2. The airline continues to lose money despite and all-out marketing thrust, said the report. For the first three quarters of this year, the airline made some US$521,000, while it made about US$5.8 million for the same period last year. The airline's management indicates that it needs about US$13 million in financing to keep the airline on the air. BWIA seeks to save at least US$1.4 million in operational expenses each month to satisfy the requirements of a loan granted by the government. To date, bookings at BWIA have shown improvement particularly in routes from London, New York and Toronto, according to the airline. CONTACT: British 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, CFO (Trinidad) ============= U R U G U A Y ============= UTE: Eletrobras To Repay $2.6M Debt With Electricity ---------------------------------------------------- Brazil's federal power company Eletrobras, which incurred debt with Uruguay's state power company UTE amounting to US$2.6 million when it imported power during rationing in 2001, agreed to repay the debt with the equivalent amount of electricity, El Pais reports, citing UTE chairman Ricardo Scaglia. Under the agreement, Eletrobras will begin repaying the debt through electric power delivered through the substation at the border towns of Rivera (Uruguay) and Santana do Livramento (Brazil). The cost of the power will be equal to the Brazilian spot price, which is currently around BRL4/MWh. As such, Uruguay will receive considerably more power than it dispatched to Brazil last year, when prices were higher, Scaglia said. Scaglia also revealed that UTE is renegotiating its agreements with Argentine suppliers Central Puerto, Central San Nicolas and Piedra del Aguila, which had planned to convert into dollars the purchase contracts denominated in Argentine pesos. *********** 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 Oona G. Oyangoren, 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. * * * End of Transmission * * *