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/raid1/www/Hosts/bankrupt/TCRLA_Public/021223.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 Monday, December 23, 2002, Vol. 3, Issue 253 Headlines A R G E N T I N A AES: Keeping Argentine Businesses To Recoup Investments REPSOL YPF: Presents Its First Social Report TGS: Negotiaties 90-Day Extension For A $100M FRN * Leaders, Lenders Urge IMF To Agree To Argentine Accord B E R M U D A ANNUITY AND LIFE: Caldwell & Associates Files Class Action Suit TYCO INTERNATIONAL: Ex Outside Director Pleads Guilty of Fraud B R A Z I L ACESITA: Sells BRL400 Mln In Debentures CSN: To Expand In US Thru Acquisition of Hot-Rolling Mill ELETROPAULO METROPOLITANA: Defers Payment of $85M ELETROPAULO METROPOLITANA: Exchange Offer Falls Short Total OK NET SERVICOS: Elects To Default On $6M In Interest Payments NEXTEL: To Expand To Rio Next Year C H I L E AGF ALLIANZ: Unloading Cash-Strapped Life Insurance Unit RADIO CHILE: Claxson Renegotiates Syndicated Debt D O M I N I C A N R E P U B L I C TRICOM: Hires Bear, Stearns For Exchange Offer, Constent Deal J A M A I C A S&P Revises Outlook on Jamaica to Negative M E X I C O DESC: Fitch Lowers Ratings to 'BB+', Credit Strength Disappoints DESC: S&P Lowers Corporate Credit Rating to 'BB' GRUPO TMM: Resates Net Profit For 3Q, Nine Months Ended Sep 30 GRUPO TMM: Closes Additional $35M Receivables Securitization ROHN: Announces Majority Stockholder's Consent to Asset Sales VITRO: Fitch Assigns 'BB' Ratings P A R A G U A Y * Lack of Budge Cuts Thwarts IMF Discussion V E N E Z U E L A PDVSA: Japanese Lenders Dubious About Extending Loans PDVSA FINANCE: Fitch Maintains 'BBB' Despite Continued Turmoil SIDOR: Resumes Production As Gas Supplies Returned To Normal - - - - - - - - - - - - ================= A R G E N T I N A ================= AES: Keeping Argentine Businesses To Recoup Investments ------------------------------------------------------- AES Corporation has decided to keep its Argentinian presence in an effort to recover US$1 billion in investments made since 1993, reports local financial daily El Cronista. The report added that AES' Latin American assets would be handled by AES Andes. The assets on which AES confirmed its position were the power plants San Nicolas and AES Parana, the power distributors Edelap, Eden, and Edes, which were estimated at US$376 million last year. However, AES decision not to pull out from Argentina does not prevent the Company from filing charges in the international settlement court, Ciadi against the government of Argentina. The case would be aimed at protecting AES' investments against sudden changes in the prices policy in the country. In other news, AES' plant in Salta province, TermoAndes had received authorization to connect to the power transportation network. As of the moment, TermoAndes is running 50 percent of its capacity and is exporting power to Chile. CONTACT: AES CORP Investor Relations Kenneth R. Woodcock Tel: 703/522-1315 Homepage: www.investing@aes.com AES ARGENTINA SECTION Talcahuano 141 Buenos Aires, Argentina Tel./Fax +5411 4 375 0116 E-mail: mailto:.argentina@aes.org Contacts: Maria Mercedes Onorato, Chairman Andres Mayo, Vice Chairman REPSOL YPF: Presents Its First Social Report -------------------------------------------- Alfonso Cortina, Chairman and CEO of Repsol YPF, presented Thursday the first Social Report to be published by Repsol YPF, in which are described the ethical framework to governance and the activities undertaken in the company's relations with employees and the society in general. The presentation was attended by Justo Villafa e, Professor of Audiovisual Communications and Advertising at the Complutense University, and Felipe Oriol, President of the Fundaci>n Empresa y Sociedad. During his speech, Alfonso Cortina pointed out that this new publication is in response to the company's commitment to transparency, materialised in several publications and reports, including the Annual and Environmental Reports, and other undertakings. The Chairman and CEO of Repsol YPF declared that business culture is changing greatly and that, apart from generating profit, "business may contribute to meeting social and environmental goals, integrating social responsibility in corporate strategy, management tools and activities." The Repsol YPF Social Report is divided into a series of chapters referring to social responsibility in issues such as human capital, social activities, education, culture and sports, and underlines the activities carried out by the Group Foundations, which are important tools for managing resources allotted to many of these areas. It mentions the activities conducted by the Instituto Superior de la Energ-a (Higher Energy Institute), through which grants are awarded to the best postgraduate students from Spain, Latin America and North Africa, and the organisation of the Formentor Forum, and the Repsol YPF-Harvard Seminar. Furthermore, this publication includes the Repsol YPF Mission and Vision and Corporate Governance directives, for the company has always been at the forefront in the fulfilment of good governance practices. The next steps to be taken are also outlined, so that social activities may be aligned with the company's strategic priorities, and there is a definition of lines of action in the medium term in relation to dialogue with the stakeholders. Regarding Human Capital, the new management model RYS XXI is mentioned, explaining that this has been synonymous of a change in corporate culture, placing the emphasis on customer service; and there is an analysis of the Repsol YPF labour force, and workers' professional development, specially focusing on training, which has received an investment of 16.5 million euros. Repsol YPF human resources policy is guided by the Principles of Excellence set out on the Quality Norms, internationally known as EFQM and FUNDIBEQ. This section also describes the labour negotiations, health and retirement coverage, in-house communications, and there is a whole chapter on health and safety. In relation to the company's social activities, new ventures are identified as a starting point for the preparation of a management system which guarantees the efficient use of human, technical and financial resources. To this end, Repsol YPF has for many years worked on several projects for community relations, education, professional training and employment, health and cooperation with employees. One of the most recent of these has been the Volunteer Programme in Argentina, under which members of the company presented numerous proposals on how to meet specific needs in their particular areas of residence. In Education, Culture and Sport, the Report lists several projects of this nature in the company's area of influence. Repsol YPF sponsorship and support is given in fields such as research, the plastic arts, music and the restoration of the historical and artistic heritage. In his conclusion when presenting this Social Report, Mr. Cortina emphasised that, "Social responsibility is a priority value in our culture and structure, integrated in the company's strategy, for which the horizon is inspired on the principles of sustainable development." TGS: Negotiaties 90-Day Extension For A $100M FRN ------------------------------------------------- Transportadora de Gas del Sur S.A. (TGS) announced Wednesday that it had reached an agreement with its creditors related to its US$100 million series 3 floating rate notes, originally due on December 18, 2002, by which the maturity is extended until March 18, 2003, but the coupon is increased, thus compensating creditors for the extended period. The company complied with the US$1.4 million interest payment, also due on December 18. The notes had been issued under the company's US$500 million Euro Medium-Term Note Program. ANALYSTS: Luciano Gremone, Buenos Aires (54) 11-4891-2143 Pablo Lutereau, Buenos Aires (54) 114-891-2125 * Leaders, Lenders Urge IMF To Agree To Argentine Accord -------------------------------------------------------- Inter-American Development Bank president Enrique Iglesias and Spanish Prime Minister Jose Maria Aznar are urging the International Monetary Fund to come to a new loan accord with Argentina. According to a report from Bloomberg News, an IADB official who asked to remain anonymous revealed that Iglesias flew to Buenos Aires on Wednesday to help the two parties reach an agreement. Aznar discussed IMF Managing Director Horst Koehler the importance of granting aid to the cash-strapped country, said the report, citing embassy spokesman Florentino Sotomayor. According to the World Bank, the two parties would need to make a "great push" in order for them to come to terms. However, the IMF said on Thursday that no new aid to Argentina is imminent. The lender had cut off Argentina's credit line after the country defaulted on US$95 billion of debt last year. Meanwhile, a team from the IMF is in Buenos Aired to continue negotiations. "I don't expect anything imminent at this point to announce," IMF spokesman Thomas Dawson told reporters. "But it certainly is good that we continue to discuss." The country faced a severe economic slump, and unemployment rose to a record 22 percent. The economy had shrunk by more than 13 percent since the country's default last December, according to the report. IADB and World Bank stakes had risen weeks in recent weeks after Argentina defaulted on a total of US$1.8 billion of debt. Meanwhile, Argentine officials have turned to the United States and Europe for help with the IMF. Argentina seeks to roll over the US$8billion it owes to Washington lenders. Argentina's ambassador to the U.S. said that IMF officials lack the political awareness to forge an accord with the country. In the past, Argentine officials had complained about the lender's tough tactics. ============= B E R M U D A ============= ANNUITY AND LIFE: Caldwell & Associates Files Class Action Suit --------------------------------------------------------------- Caldwell & Associates LLC announced Thursday that a class action lawsuit was filed in the United States District Court, District of Connecticut against Annuity and Life Re (Holdings), Ltd. (NYSE: ANR) ("Annuity and Life" or "the Company"), and certain of its Officers and Directors, on behalf of all persons who purchased the securities of Annuity and Life during the period from February 12, 2001 through November 19, 2002, inclusive (the "Class Period"). The Complaint alleges that defendants violated the federal securities laws by issuing a series of materially false and misleading statements and/or concealing material adverse facts throughout the Class Period, thereby artificially inflating the price of the Company's securities. Throughout the Class Period, the Company reported strong revenue growth and stable projected earnings. The Complaint alleges, however, that defendants failed to disclose and/or misrepresented the following adverse facts, among others: (i) that the Company had failed to properly account for embedded derivatives contained in its annuity reinsurance contracts in 2001; (ii) that, since at least 2001, the Company had understated a portion of its liabilities and expenses; (iii) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (iv) that as a result, the value of the Company's balance sheet and financial results were materially overstated at all relevant times. On November 19, 2002, the last day of the Class Period, the Company announced that it would be restating its financial results for 2000, 2001 and the first and second quarters of 2002 due to the Company having improperly accounted for embedded derivatives contained it its annuity reinsurance contracts during those years. The Company's stock plummeted 44% upon this revelation. If you are a member of the class described above, you may move the Court to serve as lead plaintiff no later than Monday, February 3, 2003. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any member of the purported class may move the Court to serve as lead plaintiff through Caldwell & Associates LLC or through counsel of their choice, or may choose to do nothing and remain an absent class member. In order to be appointed lead plaintiff, you must meet certain legal requirements. If you have any questions concerning this notice or your rights, or if you wish to discuss this action, please contact: Ann M. Caldwell CALDWELL & ASSOCIATES LLC 159 Old Belmont Avenue Bala Cynwyd, PA 19004 Phone: (888) 255-5455 or (610) 668-8600 E-mail: acaldwell@classactlaw.com TYCO INTERNATIONAL: Ex Outside Director Pleads Guilty of Fraud -------------------------------------------------------------- A former outside director of Bermuda-based Tyco Internatinal Ltd. entered a guilty plea on charges of committing fraud regarding a company acquisition, reports Times of India. The report also indicated that this is the first time an outside director has been charged for malfeasance, said Manhattan District Attorney Robert Mortgenthau. Aside from his guilty plea, Frank E. Walsh, Jr. had agreed to pat US$22.5 million in restitution and fines. Walsh had admitted to having arranged a Tyco acquisition and not disclosing his earnings of about US$20 million to fellow board members. Walsh had also settled civil charges filed by the Securities and Exchange Commission, which had effectively barred him from serving as officer or director of a public company, ever, according to a Wall Street Journal report. In June last year, Walsh had paid a total of US$2.25 million to the state of New York and New York City in lieu of fines. On top of that, he paid the Manhattan District Attorney's office US$250,000 to cover costs of his prosecution. However, Walsh was released without prison time, in accordance with a recommendation from the lead prosecutor in the Tyco investigation, Assistant District Attorney John Moscow. Walsh is the fourth person to be charged in connection with Morganthau's investigation of Tyco. The others are former chief executive Denis Kozlowski and ex-finance chief Mark Swartz, both facing charges of enterprise corruption and grand larceny, while Tyco's former legal counsel Mark Belnick was charged for allegedly covering up illegal loans to himself. 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 Contacts: Gary Holmes (Media) Tel +1-212-424-1314 or Kathy Manning (Investors) Tel +1-603-778-9700 =========== B R A Z I L =========== ACESITA: Sells BRL400 Mln In Debentures --------------------------------------- Brazilian stainless steelmaker Acesita successfully sold half of the BRL800-million debenture issue in an offer scheduled to end Friday [December 20], says Business News Americas. The debentures - the Company's fifth issue of its type - were made available December 9 and according to CFO Fabio Schettino, the minimum 50% threshold was achieved December 13. A total of 80,000 non-convertible debentures were put on sale at BRL10,000 each and will be adjusted by the IGP-M (Indice Geral de Precos - Mercado) inflation index with a four-year bullet maturity, yielding a maximum spread of up to 12.0% annually. "We decided on this mechanism to give investors more space," Schettino said, declining to give the names of the investors concerned. As a result of the issuance, 78% of the Company's debt will be long term, according to the reports, and Acesita will have 180 days to issue more debentures. Fitch rated the issue BBB-. The proceeds of the issue will be used to roll over upcoming maturities, including BRL300 million in debentures and US$237 million in export and import financing. At the end of September 2002, Acesita's total gross debt was BRL2.8 billion while cash and marketable securities totaled BRL31 million. Approximately 58% or BRL1.6 billion of the total debt was short-term debt. Acesita, whose owners include Luxembourg-based steel group Arcelor, is is Latin America's sole integrated producer of flat- rolled stainless and silicon steels with an annual production capacity of 850,000 tons of liquid steel. Depending on market demand, Acesita has the flexibility to use its plant's entire capacity for stainless steel production. With 800,000 tons of stainless steel capacity, Acesita would rank among the top 10 flat stainless steel producers, representing approximately 4.7% of world flat stainless steel production. Arcelor's total stainless steel production capacity of about 2.6 million tons represents approximately 15% of world stainless steel production. In 2001, Acesita sold 704,000 tons of steel, of which 17% was exported, primarily to Asia, Europe, and the Americas. CONTACT: Acesita SA Registered Office Av Joao Pinheiro, 580 Centro 30130-180 Belo Horizonte - MG Brazil Tel +55 31 3235-4211 Fax +55 31 3235-4300 Web http://www.acesita.com.br Contacts: Valmir Marques Camilo, Chairman Bruno Le Forestier, Vice Chairman CSN: To Expand In US Thru Acquisition of Hot-Rolling Mill --------------------------------------------------------- Brazilian flat steelmaker CSN is betting on the acquisition of a hot-rolling mill to increase margins at its North American operations and expand production at its current plant, a cold- rolling mill in Terre Haute, Indiana, Business News Americas indicates. The Rio de Janeiro-based steelmaker has been bidding for hot- rolling mills in the US but has not yet managed to snap one up. "We do not have a specific budget to acquire a mill. The price we would be willing to pay depends on factors including the type of asset, age and location," said Elton de Campos Passaro, administrative and finance director of the company's sole plant in the United States, CSN-LLC. "It would be better if we could buy an existing mill rather than have to construct one from scratch, which would cost some US$200mn," Passaro said. Currently, the CSN must export slabs from its mill in Brazil to be processed into hot bands (hot-rolled coils) at sub-contracted plants in the US. Passaro said the idea would be for CSN to export hot-bands directly to the US, but trade barriers prohibit this option. "The US imposes a minimum price on Brazilian hot-bands that makes their entrance into the market impossible," he said. About half of CSN-LLC's steel inputs (hot bands) derive from CSN slabs that are rolled in the US with the other half purchased on the local market. "The goal is to use 100% of our slabs in production," Passaro said. If CSN had its own hot-rolling mill in the US, the steelmaker could insure product control and supplies to its cold-rolling mill. According to Passaro and Kevin Young, operations director at CSN-LLC, the target would be a plant with installed capacity of 2.7-3.2Mt. Such capacity would be more than enough to satisfy the needs of the cold-rolling mill and excess output not used at CSN-LLC could be sold on the local market. With insured supply of its own hot- bands, output at the Terre Haute plant could be expanded. "CSN-LLC has room for another galvanizing line," Passaro said. CONTACT: Luciana Paulo Ferreira, CSN - Investor Relations Tel. 021 2586 1442 luferreira@csn.com.br www.csn.com.br ELETROPAULO METROPOLITANA: Defers Payment of $85M ------------------------------------------------- The AES Corporation (NYSE:AES) announced Thursday that the Brazil National Bank for Economic Development (BNDES) had agreed to defer until January 30, 2003 an $85 million payment due by an AES subsidiary related to the acquisition of common shares of Eletropaulo Metropolitana Electricidade de Sao Paulo S.A., the electricity distribution company serving Sao Paulo, Brazil. As previously announced, AES has been in discussions with BNDES to reschedule payments due by its subsidiaries in respect of Eletropaulo common and preferred shares. In connection with the deferral, BNDES has proposed terms and conditions for that rescheduling, which BNDES has stated must be accepted not later than January 30, 2003 and fulfilled by April 15, 2003 in order to avoid acceleration. AES is reviewing the feasibility of the terms and conditions and whether acceptance would be in the best interests of AES and its subsidiaries. On similar terms and conditions, BNDES also agreed to defer interest payments in respect of the Eletropaulo preferred shares. There can be no assurance that an agreement will be reached with respect to the rescheduling. As previously reported, Eletropaulo is also in discussions with its lenders to restructure its debt. AES is a leading global power company comprised of contract generation, competitive supply, large utilities and growth distribution businesses. The company's generating assets include interests in 176 facilities totaling over 60 gigawatts of capacity, in 33 countries. AES's electricity distribution network sells 108,000 gigawatt hours per year to over 16 million end-use customers. CONTACT: AES Corporation Kenneth R. Woodcock, 703/522-1315 investing@aes.com ELETROPAULO METROPOLITANA: Exchange Offer Falls Short Total OK -------------------------------------------------------------- Eletropaulo Metropolitana, which missed payments on US$100 million on a tranche of euro commercial papers that matured December 4, made three exchange offers to extend the payment. However, Wednesday's deadline saw only 81% of the euro paper owners accepting the offers, all of which would pay about 15% of the principal up front and reschedule the remaining 85% to be paid back in 2003 and 2004. In a statement, the Company said that within the next few days, it would begin making preliminary payments and issuing new notes to those creditors, in line with the exchange offer. As for those holders of the debt that did not accept the three existing proposals by the deadline, Eletropaulo is still evaluating what it can offer to them. "The company is evaluating the alternatives to resolve the situation of the creditors of the commercial papers that did not accept the exchange offer, and in the meantime, they will not be receiving partial payment and the issue of new notes for the exchange," Eletropaulo CFO Andrea Ruschmann said in the statement. 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 NET SERVICOS: Elects To Default On $6M In Interest Payments ----------------------------------------------------------- Debt-ridden Brazilian pay TV and broadband services provider Net Servicos de Comunicacao opted to miss BRL23.5 million (US$6mn) in interest payments maturing this month, reports Business News Americas, citing local daily Agencia Estado. The notes were issued in 1996 by cable TV operator Multicanal, before it was taken over by Globo Cabo, now Net Servicos de Comunicacao. Net Servicos recently had its ratings downgraded by both Standard & Poor's and Moody's Investors Service due to mounting liquidity crisis. As of September 2002, the Company has a total outstanding debt of US$354 million. Early this month, Net Servicos announced that it expects to present a new debt-restructuring proposal to creditors during the second half of January 2003. To see financial statements: http://bankrupt.com/misc/Net_Servicos.pdf CONTACTS: Marcio Minoru Miyakava (5511) 5186-2811 minoru@netservicos.com.br Lu Yuan Fang (5511) 5186-2637 lfang@netservicos.com.br NEXTEL: To Expand To Rio Next Year ---------------------------------- Nextel Brazil country manager Milton Longobardi said that his company plans to start expanding coverage and network capacity in Rio de Janeiro next month, reports local daily Agencia Estado, adding that the dompany would probably invest another BRL10 million in the market next year. The move is part of the plans of NII Holding's Brazilian arm to fend off increasing competition from mobile operators. Nextel Brazil's client base fell to 420,000 this year, down by 30,000. Longobardi was quoted by Business News Americas saying, "Some 'rebels' left us, but they will return." He added that other mobile operators cannot compete with Nextel's special services like one-button dialing or dialing up multiple users. According to Longobardi, the Company's mostly corporate clients generate monthly ARPU of BRL90 reais, while the best ARPU among mobile operators is BRL51 reais, at Sao Paulo-based BellSouth (NYSE: BLS) subsidiary BCP. Longobardi had declined to divulge the investment figures for the Company's expansion in Rio. CONTACT: NEXTEL COMMUNICATIONS INC Head Office 2001 Edmund Halley Drive Reston VIRGINIA United States 20191 Tel +1 703 433-4000 Fax +1 703 433-4343 Web http://www.nextel.com/ Contacts: William E. Conway Jr., Chairman Timothy M. Donahue, President and CEO Morgan E. O'Brien, Vice Chairman NII HOLDINGS, INC. 10700 Parkridge Blvd., Ste. 600 Reston, VA 20191 Phone: 703-390-5100 Fax: 703-390-5149 Homepage: http://www.nextelinternational.com ========= C H I L E ========= AGF ALLIANZ: Unloading Cash-Strapped Life Insurance Unit --------------------------------------------------------- AGF Allianz Chile is considering divesting its money-losing life insurance unit but is awaiting a final decision from its employees. The employees were due to make a decision Friday [Dec. 20]. The company wants to get rid of AGF Allianz Vida, which has accumulated losses over the last few years, and is looking at Bice Vida as the most likely buyer given the two firms' 1993-1999 affiliation. For this year, AGF Allianz is expected to post an operating loss of CLP3.3 billion owing to poor returns on its annuity business, which concentrates 97% of AGF Allianz Vida's life insurance portfolio. This year, the German parent fired the Chilean subsidiary's senior executives except the sales director, who eventually left the Company. The dismissals were rumored to be as punishment for AGF Allianz Chile's poor financial results. The company's general insurance business, AFG Allianz Generales, is also making losses. At the end of the third quarter, the unit recorded losses of CLP702 million but even so, AFG Allianz is keeping the unit. RADIO CHILE: Claxson Renegotiates Syndicated Debt ------------------------------------------------- Claxson Interactive Group Inc. ("Claxson" or the "Company") announced Thursday it has completed negotiations with a syndicate of Chilean banks under its Chilean syndicated credit facility ("Syndicated Credit Facility.") As of this date, the long-term portion of this debt will no longer be classified as short-term debt on Claxson's balance sheet. On October 26, 2000, Iberoamerican Radio Holdings Uno Chile S.A. ("Radio Chile"), a Claxson subsidiary, obtained the Syndicated Credit Facility for a total amount of US$35.0 million, denominated in Chilean Pesos, of which US$18.2 million was outstanding as of September 30, 2002. As of the first quarter of 2002, Radio Chile was not in compliance with certain financial ratios required under the Syndicated Credit Facility, primarily due to the decrease in the value of the Chilean Peso against the U.S. Dollar in 2001. The amended terms for the Syndicated Credit Facility include (i) modification of financial covenant ratios, (ii) extension of the term of the loan by one year to mature on May 5th 2006 and, as a result, a reduction of the quarterly amortization, (iii) increase in the interest rate by 25 basis points to the Tasa Activa Bancaria ("TAB" -- the local Prime Rate) plus 2.75%. In addition, Claxson will be required to maintain a US$1.5 million deposit in a Chilean bank, and Chilevision, Claxson's broadcast television operation in Chile, will guarantee the Syndicated Credit Facility. "This negotiation is one more step in meeting our commitment to improve Claxson's financial position. Back in early November, we completed the exchange offer and consent solicitation related to Imagen Satelital's Senior Notes, and today [Thursday] we regained compliance and negotiated new terms for our Chilean debt," said Jose Antonio Ituarte, Chief Financial Officer, Claxson. "These steps are certainly in the right direction and we could have not achieved them without the support Radio Chile had from its bank syndicate." About Claxson Claxson Interactive Group Inc. is a multimedia company providing branded entertainment content targeted to Spanish and Portuguese speakers around the world. Claxson has a portfolio of popular entertainment brands that are distributed over multiple platforms through its assets in pay television, broadcast television, radio and the Internet. Claxson was formed on September 21, 2001 in a merger transaction, which combined El Sitio, Inc. and other media assets contributed by funds affiliated with Hicks, Muse, Tate & Furst Inc. and members of the Cisneros Group of Companies. Headquartered in Buenos Aires, Argentina, and Miami Beach, Florida, Claxson has a presence in all key Ibero-American countries, including without limitation, Argentina, Mexico, Chile, Brazil, Spain, Portugal and the United States. CONTACT: CLAXSON INTERACTIVE GROUP INC. Media - Alfredo Richard, SVP, Communications +1-305-894-3588 Investors - Jose Antonio Ituarte, CFO +5411-4339-3700 =================================== D O M I N I C A N R E P U B L I C =================================== TRICOM: Hires Bear, Stearns For Exchange Offer, Constent Deal ------------------------------------------------------------- TRICOM (NYSE: TDR), a regional integrated telecommunications provider in the U.S., Caribbean and Central America, announced Thursday that it has appointed Bear, Stearns & Co. Inc. to act as dealer manager for the proposed exchange offer and consent solicitation with respect to the $200 million aggregate outstanding principal amount of its 11-3/8% Senior Notes due 2004. A registration statement relating to the exchange offer and consent solicitation has been filed with the Securities and Exchange Commission, but has not yet become effective. Questions regarding the exchange offer can be directed to Bear, Stearns & Co. Inc., at (877) 696-BEAR (2327) toll free in the United States or internationally at (212) 272-5112. This press release is not an offer to sell or the solicitation of an offer to buy any of the securities to be issued in the exchange offer described above. The company expects to commence the exchange offer promptly after the registration statement is declared effective by the Securities and Exchange Commission. About TRICOM TRICOM, S.A. is a regional integrated telecommunications provider in the U.S., Caribbean and Central America. In the Dominican Republic we offer local, long distance, cable television entertainment, mobile telephony, as well as broadband data transmission services. Through TRICOM USA, we own switching facilities in New York, Miami and Puerto Rico, providing us with end-to-end connectivity, and are one of the few Latin American long distance carriers that have a United States licensed subsidiary. Through TCN Dominicana, we are the largest cable television operator in the Dominican Republic based on our number of subscribers and homes passed. TRICOM is deploying the first integrated digital wireless communication network based on iDEN(R) technology across Central America. For more information about TRICOM, please visit http://www.tricom.net CONTACT: TRICOM, S.A. Miguel Guerrero of Tricom Investor Relations +1-809-476-4044 +1-809-476-4012 investor.relations@tricom.net URL: http://www.tricom.net ============= J A M A I C A ============= S&P Revises Outlook on Jamaica to Negative ------------------------------------------ Standard & Poor's Ratings Service said Thursday that it has lowered the outlook assigned to Jamaica's 'BB-' long-term local and 'B+' long-term foreign currency sovereign credit ratings to negative from stable. Standard & Poor's also affirmed Jamaica's 'B' short-term local and foreign currency sovereign credit ratings. The negative outlooks reflect the deterioration of Jamaica's financial position for fiscal year (FY) 2002 (ending March 31, 2003) and the government's continued fiscal inflexibility, which will make trimming the deficit and lowering the high debt levels difficult going forward. "Jamaica's projected fiscal deficit is about 8% of GDP for FY2002, which greatly exceeds the 4.5% budgeted deficit," said Sovereign Analyst Jane Eddy. "This slippage occurred during a parliamentary election year, when the government eased its traditional tight fiscal control, but also stemmed from some external shocks, such as a drop in revenue due to a fall in tourism receipts and to unforeseen expenditure associated with several episodes of flooding," she added. Ms. Eddy explained that, as a result, the general government's heavy debt burden will climb to an estimated 139% of GDP for FY2002, reversing the recent gradual downward trend. "Legislation adopted by the Parliament this month, which includes some tax and fee hikes as well as expenditure cuts, could, combined with an expected mild economic recovery, allow for a modest fiscal adjustment going forward," she noted. "However, these measures may prove insufficient to lower the government's significant debt level over the medium term, thus tilting the risks to the rating to the downside," Ms. Eddy concluded. ANALYSTS: Jane Eddy, New York (1) 212-438-7996 Richard Francis, New York (1)-212-438-7348 =========== M E X I C O =========== DESC: Fitch Lowers Ratings to 'BB+', Credit Strength Disappoints ---------------------------------------------------------------- Fitch Ratings has downgraded its senior unsecured foreign and local currency ratings of Desc S.A. de C.V. (Desc) to 'BB+' from 'BBB-'. Fitch has also downgraded Desc's national scale ratings to 'AA-'(mex) from 'AA'(mex). The ratings remain on Negative Outlook. The prolonged delay in the recovery of the U.S. and Mexican economies has impaired the improvement of Desc's credit protection measures, which are weak for the prior rating category. Although Desc has made important efforts to repay debt and reduce costs, Total Debt to EBITDA has deteriorated to 3.9x at September 30, 2002 from 3.5x for the year ended December 31, 2001. For the nine months ended September 30, 2002, the ratio of EBITDA to Interest Expense reached 3.3x compared to 2.8x for the prior comparable period, as a result of the refinancing in 2002 of short term debt at lower interest costs. Desc's operating environment remains extremely challenging, with the revenue base under continued global demand pressure. For the first nine months of 2002, total sales declined by 10% from the first nine months of 2001 and EBITDA also declined by 10%. Automobile production in the U.S. remains weak. The closure in August 2002 of the DaimlerChrysler plant in Mexico City represented approximately US$130 million of annual loss contracts for Desc that would only be partially compensated by new contracts from Dana Corp. The chemical business is also affected by weak demand, volatile fuel prices, lower worldwide capacity utilization rates, and inability to transfer higher raw material costs to sale prices. Low capacity utilization rates have also hurt profit margins at the automotive parts and chemical business, which together account for approximately 80% of total revenues and 87% of EBITDA at Desc. The ratings are supported by Desc's diversified revenue stream, strong business position in the autoparts and chemical sectors, joint ventures and strategic alliances with international industry leaders and the generation of a majority of revenues in U.S. dollars or U.S. dollar-indexed terms. Desc is a diversified holding company and one of Mexico's largest industrial conglomerates, with operations in the automotive parts, chemical, food and real state businesses. CONTACT: Fitch Ratings Giovanna Caccialanza, 212/908-0898, New York Guido A. Chamorro, 312/368-5473, Chicago Victor Villarreal, 528-18-335-7239, Monterrey, Mexico Media Relations: James Jockle, 212/908-0547, New York DESC: S&P Lowers Corporate Credit Rating to 'BB' ------------------------------------------------ Standard & Poor's Ratings Services said Thursday it lowered its local and foreign currency corporate credit ratings on Desc S.A. de C.V. to 'BB' from 'BBB-'. Desc is a Mexico-based diversified holding company whose subsidiaries operate in the autoparts, chemical, food, and real estate sectors. At the same time, the local and foreign currency corporate credit ratings of its subsidiary Unik S.A. de C.V., were lowered to 'BB' from 'BBB' and BBB-, respectively. The rating on Dine S.A. de C.V.'s 8.75% notes due in 2007, which are now a direct obligation of Desc, was lowered to 'B+' from 'BB+' and reflects the structural subordination of the issue. All ratings were placed on CreditWatch with negative implications. "The downgrade and CreditWatch placement follow Desc's announcement that it will post an operating loss during the fourth quarter as the company's autoparts business has suffered a significant fall in sales during the period," stated Standard & Poor's credit analyst Jose Coballasi. The rating actions also reflect the challenges faced by Desc to recover the revenues and profitability lost in recent quarters given the general weakness in its core businesses, particularly autoparts. The company's performance during the year reflects the impact of lower sales in the Mexican replacement market and the loss of market share experienced by the Big Three auto original equipment manufacturers (OEMs). Additionally, the company's chemical, real estate and food business segments remain negatively affected by low demand and consequently low prices. The ratings on Unik have been equalized with those assigned to Desc given the consolidation of administrative and cash management functions at the parent company. Standard & Poor's estimates that Desc's liquidity is sufficient to meet its operating and capital expenditure needs over the next six months. The company has around $75 million in debt maturities and its interest expenses should be about $40 million during the aforementioned period. As of the third quarter, the company held around $167 million in cash, and had about $226 million available under uncommitted lines of credit. Nevertheless, continued weakness at the operating level could reduce the company's financial flexibility. The CreditWatch listing will be resolved upon an evaluation of Desc's operating performance and a review of its plans to bolster its financial flexibility. ANALYSTS: Jose Coballasi, Mexico City (52) 55-5279-2014 Manuel Guerena, Mexico City (52) 55-5279-2011 GRUPO TMM: Resates Net Profit For 3Q, Nine Months Ended Sep 30 -------------------------------------------------------------- Restatement Has No Effect On Grupo TMM's Cash Flow or Liquidity In light of the potential additional judicial processes created by the upper chamber of the Federal Tribunal of Fiscal and Administrative Justice's (the "Fiscal Court's") December 6, 2002, decision, which may extend the timing of the value added tax ("VAT") recovery, and in accordance with International Accounting Standards (IAS), Grupo TMM, S.A. (NYSE: TMM and BMV: TMM A) has restated the company's unaudited, interim financial statements for the three- and nine-month periods ended September 30, 2002, reversing the previously recorded receivable from the government related to the VAT refund. As previously reported, on September 25, 2002, the Mexican Magistrates Court of the First District (the "Federal Court") issued its judgment in favor of TFM on a VAT claim, which has been pending in the Mexican courts since 1997. The claim arose out of the Mexican Treasury's delivery of a VAT certificate to a Mexican governmental agency, rather than to TFM. By a unanimous decision, the Federal Court vacated a prior judgment of the Fiscal Court and remanded the case to the Fiscal Court with specific instructions to enter a new decision consistent with the guidance provided by the Federal Court's ruling. The Federal Court's ruling requires the fiscal authorities to issue the VAT credit certificate only in the name of the beneficiary (TFM in this case). On December 6, 2002, the upper chamber of the Fiscal Court voted in the same manner as its earlier ruling against TFM. TFM has not yet been served with the written decision of the Fiscal Court and therefore, has based its analysis on the oral decision of the Fiscal Court announced on December 6, 2002. The Fiscal Court's new decision may be challenged by either of the parties if such party believes that the new ruling does not comply with the order of the Federal Court. TFM intends to challenge the ruling of the Fiscal Court through all appropriate legal means and remains confident that it will prevail. The face value of the VAT certificate at issue is approximately 2,111 million pesos ($206 million based on exchange rates in effect at September 30, 2002), and any recovery will reflect adjustments for inflation and accruals of interest at statutory rates since 1997, in accordance with the legal codes applicable from time to time since that date. Based upon the September 25, 2002, decision of the Federal Court, which in the opinion from TFM's legal counsel is a judged matter, Grupo TFM's unaudited, interim financial statements for the quarter ended September 30, 2002, reflected a $534.4 million after tax gain related to the VAT refund, and recorded a net account receivable of $822 million. In light of the potential additional judicial processes created by the Fiscal Court's December 6, 2002, decision, which may extend the timing of the recovery, and in accordance with International Accounting Standards (IAS), Grupo TMM has determined to restate its unaudited, interim financial statements for the three- and nine-month periods ended September 30, 2002, to reverse the previously recorded receivable from the government related to the VAT refund. TFM will continue to evaluate future developments in this case to determine when it would be appropriate to recognize the VAT refund. The effect of the restatement is to reduce Grupo TMM's net profit for the three- and nine-month periods ended September 30, 2002, from a net profit of $167.4 million and $175.7 million, respectively, to a net loss of $42.1 million and $33.7 million, respectively. Earnings per share for the periods were restated from $2.94 and $3.08 dollars per share, respectively, to ($0.74) and ($0.59) dollar per share, respectively. The restatement has no effect on TMM's cash flow or liquidity position. Headquartered in Mexico City, Grupo TMM is Latin America's largest multimodal transportation company. Through its branch offices and network of subsidiary companies, Grupo TMM provides a dynamic combination of ocean and land transportation services. Grupo TMM also has a significant interest in 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 www.grupotmm.com and TFM's web site at 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 Jacinto Marina, 011-525-55-629-8790 jacinto.marina@tmm.com.mx Brad Skinner (IR), 011-525-55-629-8725 brad.skinner@tmm.com.mx Luis Calvillo (MR), 011-525-55-629-8758 luis.calvillo@tmm.com.mx Dresner Corporate Services Kristine Walczak (MR, IR), 312/726-3600 kwalczak@dresnerco.com GRUPO TMM: Closes Additional $35M Receivables Securitization ------------------------------------------------------------ Grupo TMM, S.A. (NYSE: TMM)), the largest Latin American multi- modal transportation and logistics company and owner of the controlling interest in Mexico's busiest railway, TFM, announced the closing of an additional $35 million under its receivables securitization program and expects the transaction to be funded early next week. The net balance under the facility now amounts to $78.8 million. The proceeds from the funding will be primarily used by the Company to repay outstanding Euro Commercial Paper. Additionally, consistent with its announcement on August 29, 2002, Grupo TMM intends to offer to exchange new debt securities for all of the outstanding 9 1/2 percent Senior Notes due 2003 and 10 1/4 percent Senior Notes due 2006. The company expects to commence the offers as soon as practical after the registration statement is declared effective and it has obtained the necessary authorizations. THE FOREGOING DOES NOT CONSTITUTE AN OFFER TO SELL SECURITIES OR THE SOLICITATION OF AN OFFER TO BUY SECURITIES. ROHN: Announces Majority Stockholder's Consent to Asset Sales ------------------------------------------------------------- ROHN Industries (Nasdaq: ROHN), a provider of infrastructure equipment for the telecommunications industry, announced Thursday that its majority stockholder, the UNR Asbestos-Disease Claims Trust, has executed a written consent to the previously announced sale of substantially all of the Company's assets to an affiliate of Platinum Equity LLC, a Los Angeles-based private equity firm. The Trust's consent is subject to the satisfaction of various conditions, including the execution of documentation providing for the payment to ROHN's stockholders of an aggregate of $3.5 million, or approximately 8 cents per share, of the proceeds from the sale of assets to Platinum Equity and the tax refund the Company expects to receive as a result of the transaction. Although the Company expects that this condition, as well as the other conditions to the Trust's consent, will be satisfied, there can be no assurance that the transaction will be consummated. Even if the transaction is consummated, there can be no assurance as to the total amount and timing of any payments to the Company's stockholders. There are ongoing discussions among the Company, the Trust and the Company's bank lenders regarding these matters. ROHN also announced Thursday that it has entered into an amendment to its bank credit facility. Under this amendment, the bank lenders have increased the availability under the revolving portion of the credit facility from $18 million to $21 million for the period from December 17, 2002 through December 31, 2002. In addition, the bank lenders have agreed to permit $750,000 of the proceeds from the expected sale of the Company's facilities located in Casa Grande, Arizona to be used to repay outstanding revolving loans rather than term loans, which will have the effect of preserving that amount of availability under the revolving portion of the credit facility. The bank lenders have also agreed to defer until December 31, 2002 a $1.5 million principal payment that would have been due on December 1, 2002. 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 +1-309-633-6809 al--dix@rohnnet.com VITRO: Fitch Assigns 'BB' Ratings --------------------------------- Fitch Ratings has assigned senior unsecured foreign currency and local currency ratings of 'BB' to Vitro, S.A. de C.V. (Vitro). The Outlook for both ratings is Stable. Fitch Ratings has also affirmed Vitro's national scale rating at 'AA-(mex)'. Vitro's ratings reflect its strong business position as the leading producer of glass in Mexico. The company's glass business is well diversified between flat glass (47% of total revenues for the first nine months of 2002), glass containers (42%), and glassware (11%). The company exports glass products to more than 70 countries, which generates approximately 26% of revenues. In addition, Vitro has foreign subsidiaries located in the U.S., Spain, Central America and Bolivia that represent approximately 27% of consolidated revenues. Vitro generates approximately 75% of revenues in either U.S. dollars or U.S. dollar-indexed terms, which provide a natural hedge to its dollar-denominated debt. Vitro's debt levels are high, but are gradually improving. Since 2001, Vitro has renewed its focus on its core glass businesses, i.e. flat glass, glass containers and glassware, and has begun to divest non-strategic assets and use cash proceeds to repay debt. Year to date, the company has reduced debt by approximately US$210 million, primarily from the sale of its 51% stake in Vitromatic, a home appliances manufacturer, and of its 51% stake in Ampolletas, S.A., a manufacturer of tubing glass packaging for the pharmaceutical industry. Total net sales proceeds were US$161.7 million. The investments were sold to Vitro's respective partners in each joint venture. Vitro has indicated that it intends to sell its aluminum cans and plastic containers businesses and use proceeds to repay debt. Vitro's liquidity and debt maturity profile have recently improved. In May, 2002, the company was able to meet a US$175 million bullet maturity and subsequently accessed the local bond market with a US$36 million peso-equivalent bond issue due 2008 to refinance short-term debt. Vitro continues to seek to refinance short-term debt to lengthen the maturity profile and reduce the average cost of debt. Vitro has also lowered its dividend payout and reduced capital expenditures from historical annual levels to support debt repayment goals with cash preservation measures. At September 30, 2002 Vitro had approximately $132 million in cash and marketable securities and total debt was $1.37 billion, of which 72% was dollar-denominated and 36% was classified as short-term. Vitro's profitability has been under pressure since 2001 due to weak demand from domestic and U.S. construction and automotive sectors, pricing pressures from OEMs, a strong local currency, and increased competition from Asian imports of glassware and flat glass. These pressures have been partially offset by cost- cutting measures, corporate downsizing and debt reduction, which have helped sustain credit protection measures despite lower EBITDA generation. For the nine-month period ended September 30, 2002, the ratio of EBITDA to interest expense improved to 2.9x from 2.5x for the comparable period in 2001 and the ratio of Net Debt to EBITDA also improved to 3.0x from 3.2x for the comparable period in 2001. The near-term outlook remains challenging, due to economic weakness in the U.S. and Mexico. However, in the medium to longer term, Vitro is well positioned for growth opportunities in both the domestic and foreign markets because of its competitive advantages in the production of glass, its leading market position in Mexico, and its manufacturing and distribution assets abroad. Vitro is the leading producer of flat glass, glass containers and glassware in Mexico. The company is an exporter of glass products to more than 70 countries for the construction, automotive, beverage, retail and service industries. In 2001, Vitro had sales of US$3.0 billion, EBITDA of US$513 million, exports of US$801 million and foreign sales by subsidiaries of US$619 million. Vitro is headquartered in Monterrey, Mexico. CONTACT: Giovanna Caccialanza 1-212-908-0898, New York, Guido Chamorro 1-312-368-5473, Chicago, or Victor Villarreal 52-818- 335-7239, Monterrey, Mexico. Media Relations: James Jockle 1-212-908-0547, New York =============== P A R A G U A Y =============== * Lack of Budge Cuts Thwarts IMF Discussion ------------------------------------------- Paraguay had shelved negotiations with the International Monetary Fund after its legislature failed to make the required budget cuts. A report from Bloomberg News said that the country was seeking a loan of over US$200 million from the lender to help revive its economy. Economy Minister Alcides Gimenez halted the negotiations, but palns to review the attempt next month, according to Marcial Bobadilla, charge d'affairs at the Paraguayan Embassy in Washington. The country also failed to meet other requirements from the IMF including a streamlining of the banking industry and reductions in this year's budget deficit. Last month, Economy Minister James Spalding and central bank governor Raul Vera resigned, after failing attain the congress' approval to approve the IMF's demands. Gimenez then succeeded Spalding. The local currency, the guarani, had lost 52 percent of its value against the dollar this year, largely due to Argentina's default on US$95 million of debt last year, said the report. Paraguay president Luiz Gonzales Macchi, facing five charges of corruption, was impeached by a unanimous vote from congress last December 5. The report indicated that lawmakers allege that Macchi diverted to a bank account in Miami US$16 million collected by the central bank from the sale of two insolvent banks. Presidential elections will be on April, and a new presidential term begins in August. Paraguay is among the South American countries whose economic growth is stunted by political strife, like Venezuela and Argentina. Efforts to aid recovery are futile despite leaders' attempts to secure capital from private and international lenders. Because of this, the IMF had projected that Latin America's regional economy will contract this year, for the first time in two decades. According to the IMF, the country's economy shrank by 4.5 percent this year largely due to the economic slump in neighboring Argentina and Brazil. The lender added that Paraguay's economy may further shrink by 1 percent next year. Meanwhile, the IMF continues to offer advice on management to the Paraguayan government, when asked, said Jeffery Franks, head of the IMF mission to Paraguay. ``The IMF is learning that unhealthy politics make it very hard for some Latin American countries to implement the terms of IMF aid,'' said Peter Hakim, president of Inter-American Dialogue, a Washington research organization. ================= V E N E Z U E L A ================= PDVSA: Japanese Lenders Dubious About Extending Loans ----------------------------------------------------- Japanese lenders are beginning to show signs of apprehension regarding extending loan assistance to Petroleos de Venezuela due to the uncertainty ongoing national strike and because of management changes at the state oil company, sector sources indicated to Venezuelan newspaper El Nacional. According to the sources, the Japan Bank for International Cooperation (JBIC) and another Japanese bank decided to freeze a package of US$6 billion financing for PDVSA. The loans were for the Anaco, east-west interconnection, the ICO east-west interconnection, the WCC cryogenic project and Monagas nitrogen injection gas projects. PDVSA has earmarked US$2.9 billion for Anaco, US$430 million for ICO, and US$700 million for the WCC cryogenic project. Investment in the nitrogen injection project in Monagas state is estimated at US$2 billion. These projects were scheduled for preliminary signing by year-end, with first disbursements due in 2003. PDVSA FINANCE: Fitch Maintains 'BBB' Despite Continued Turmoil -------------------------------------------------------------- Fitch does not perceive the current disruptions in oil exports caused by the general strike in Venezuela to significantly increase the risks to PDVSA Finance. Therefore, Fitch maintains its 'BBB' rating on the company's $3.5 billion oil export future flow securitization. The securitization's resiliency to the current crisis is based on its historically strong debt service coverage levels and the belief that the interruption to oil exports is unlikely to last for an extended period of time. While Fitch believes a prolonged strike might trigger a0 breach in PDVSA Finance's financial covenants, Fitch believes the transaction benefits from adequate amounts of liquidity to sufficiently protect investors during this stressed period. The transaction benefits from export receipts already collected in the collection account sufficient to make the debt service payment in February 2003, a three-month debt service reserve account which can be used for an additional debt service payment, and excess collections which have historically exceeded 12 times. While a lag in collections will occur, Fitch estimates once exports resume, the excess coverage levels will contribute to additional collections to meet debt service payments. Fitch views the various potential outcomes to the crisis - including a resignation by President Chavez coupled with new elections, or a militarization of oil related assets coupled with an increased potential for civil unrest - as scenarios for which the securitization is relatively well protected. Each of the likely scenarios contemplates the resumption of production and export of oil, in which case the legal structure of the securitization should allow for payments on debt service to continue unencumbered. Given the importance of oil exports to Venezuela, Fitch expects at least partial resolution to the general strike to occur in a relatively short period. Approximately $50 million in export revenue is lost per day as a result of the strike, and Venezuela relies on oil exports for about 50% of its total revenue. The greatest challenge to the short-term credit profile of the securitization is not the direct effect of production interruptions. The concern is the indirect consequence of deterioration in the government's ability and willingness to meet its own obligations. A prolonged strike could lead to a downgrade of the sovereign ratings. A downgrade in the sovereign rating would imply a less stable legal and political environment and consequently increased potential for attempts by the sovereign to interfere with the securitization. This in turn could result in a downgrade to the securitization. CONTACT: Gregory Kabance 1-312-368-2052, Chicago or Alejandro Bertuol 1-212-908-0543, New York. Media Relations: James Jockle 1-212-908-0547, New York. SIDOR: Resumes Production As Gas Supplies Returned To Normal ------------------------------------------------------------ Gas supplies to Venezuelan steelmaker Siderurgica del Orinoco have resumed normal levels, or some 200 million cubic feet a day, reports Business News Americas. While restoration of the gas supply will allow some production to resume, the Ciudad Guyana plant won't be able to operate at capacity as it requires some 300 million cubic feet a day of natural gas. Sidor, as the Company is known, was forced to curtail operations after state oil company PDVSA cut supplies to just 3 million cubic feet last Monday, or 1.5% of the normal level, because of the country's general strike. The protest, which is now on its third week, is aimed at toppling the leader of the oil-rich nation, President Hugo Chavez. Sidor was privatized in 1990 when the Amazonia consortium - made up of Mexico's Hylsamex, Argentina's Techint group (including its Mexican unit Tamsa), Venezuela's Sivensa and Brazil's Usiminas - acquired 70% of the company. State heavy industry holding company CVG held on to 30% but its stake is due to rise to 42% under a refinancing package announced in August that involves capitalizing part of Sidor's debt. 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 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 * * *