/raid1/www/Hosts/bankrupt/TCRLA_Public/030403.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, April 3, 2003, Vol. 4, Issue 66
Headlines
A R G E N T I N A
ARGENTINE BANKS: Government Lifts All Remaining Bank Restrictions
CISA: Suppliers, Creditors Seek Bankruptcy For Controllers
B E R M U D A
ANNUITY & LIFE: Delays Fourth Quarter Filing
COMMERCIAL RISK: SCOR Group Announces 2002 Results
B R A Z I L
CFLCL: 2002 Net Loss Soars to BRL72.9 Million
ELETRONET: Eletrobras Blames AES For Financial Troubles
EMBRATEL: Gets Favorable Ruling on Network Leasing Spat
C H I L E
ENERSIS: Announces Sale of Rio Maipo, $2B Capital Increase
ENERSIS: To Spend $525M This Year To Consolidate LatAm Interests
INVERLINK: Massad Resigns as Central Bank President
SANTA ISABEL: Earnings Filing Delayed, Bourse Halts Trading
C O L O M B I A
AVIANCA: US Trustee Names 7-Member Official Creditors' Committee
AVIANCA: Moves To Reject Master Trust Agreement
AVIANCA: Narrows Losses To $35M Last Year
E C U A D O R
PETROECUADOR: Past Due Debts Face Thursday Deadline
G U A T E M A L A
INTERNATIONAL THUNDERBIRD: Updates Operational Results
M E X I C O
ALESTRA: Bondholders Seek Better Terms From Bond Exchange Offer
AZTECA HOLDINGS: Extends Exchange Offer Deadline
GRUPO MEXICO: Signs $200M Loan Deal With International Banks
PEMEX: Guarantees Availability of Energy Products Supply
T R I N I D A D & T O B A G O
BWIA: Dismissed Workers March As BWIA Over Severance Pay Fight
U R U G U A Y
ANCAP: Losses In Argentina Remain Uncalculated
BANCO DE CREDITO: To Sell Best Assets In May
- - - - - - - - - -
=================
A R G E N T I N A
=================
ARGENTINE BANKS: Government Lifts All Remaining Bank Restrictions
-----------------------------------------------------------------
The government of Argentina finally removed all remaining
restrictions on banks deposits on Tuesday, reports Dow Jones
Newswires. The restrictions, which took effect about a year ago,
had been gradually lifted over the past months until the
government's announcement on Tuesday ended all remaining
controls.
Limits on certificate of deposit (CD) accounts up to a maximum of
US$30,000 in terms of their initial deposit value were lifted.
Dow Jones said that the CDs were converted based on the exchange
rate, which is US$1=ARS1.40, at which they were converted to
devalued pesos after the freeze declaration last year.
Meanwhile, other amounts will be released on a staggered basis.
Accounts up to ARS100,000, upon request, will be placed in 90-day
CD accounts to be released after the period. Accounts of more
than ARS 100,000 will be placed in 120-day CD accounts, with a 2
percent annual interest.
According to the report, depositors will get their funds in pesos
at the ARS1.40 rate based on their initial dollar deposits plus
an accumulated interest payment tied to an inflation-indexing
formula established under the "pesification" decree of February
2002. Officials said that depositors may receive about US$2.05
per U.S. dollar on their deposit.
However, not all deposits will be released in cash. The
government will reportedly release 10-year bonds to cover the
difference between the accumulated amount in pesos and the
equivalent value in U.S. dollars, according to current exchange
rates. The report added that the closing price on Tuesday's
trading will be used as a base reference rate for the said bond
offer.
On the other hand, the decree said that CD accounts that were
originally in pesos will immediately be freed up, regardless of
the amount. Furthermore, banks may return larger deposits early,
upon their discretion.
Depositors are given five working days on decide on their
deposits, and ten working days to ask their banks to convert
their savings from long-term bonds, which were given to savers
when the freeze took effect, into savings, checking or CD
amounts. But the government may allow them to go beyond the 10-
day period indefinitely, if it sees fit, said the report.
Having been published in the Official Bulletin, the decree,
signed last Friday, also turned into law a new mechanism for
local banks to repay about ARS20 billion in discount loans from
the central bank, which were granted during the crisis period.
However, the report said, the decree did not indicate whether
this is the last chance for depositors to free up deposits
trapped in reprogrammed certificate of deposit, or CEDROS, bonds.
Some savers may decide to keep their cash in CEDROS, in the hope
of winning court cases ordering the banks to return the original
dollar amount in cash immediately, said the report.
CISA: Suppliers, Creditors Seek Bankruptcy For Controllers
----------------------------------------------------------
Argentine holding Compania de Indumentaria (CISA), which
controlled 78 shops and reported turnover of US$60 million
annually, is now bankrupt, reports NewsEdge.
CISA was founded in 1999 by the investment fund AVP (Argentina
Venture Partners) to administrate the clothing brands Vitamina
and John L. Cook. In 2000, AVP sold its shares in the Company. At
the moment, insurance company AIG (American International Group)
and Bank of America control more than 92% of CISA, while the
other 8% is still in the hands of Claudio Drescher and Ramiro
Fita, founders of Vitamina and John L. Cook, respectively.
Now, 3 of the suppliers and creditors of CISA, the companies
Tejidos Raquel, Neila Hermanos and Concutel, seek to extend
CISA's bankruptcy to AIG and to Bank of America.
CISA has debts totaling ARS40 million.
=============
B E R M U D A
=============
ANNUITY & LIFE: Delays Fourth Quarter Filing
--------------------------------------------
Annuity and Life Re (Holdings), Ltd. (NYSE: ANR) announced
Tuesday that it expects to release its operating results and
earnings for the year ended December 31, 2002 by April 7, 2003
and to file its Annual Report on Form 10-K for the year ended
December 31, 2002 by April 15, 2003. Given the significant time
and effort required from the Company's management and outside
auditors in connection with the recent filing of the Company's
Form 10-K/A-1 for the fiscal year ended December 31, 2001 and its
Forms 10-Q/A-1 for the quarterly periods ended March 31, 2002,
June 30, 2002 and September 30, 2002, the Company requires
additional time to finalize its financial statements and Form 10-
K for the year ended December 31, 2002.
The Company has previously announced that it expects to report
significant losses for the quarter and year ended December 31,
2002. The Company now estimates such losses to be approximately
$103 million for the quarter and approximately $132 million for
the year ended December 31, 2002. A number of significant factors
contributed to these expected losses, including adverse mortality
experience driven by an unexpected increase in the number and
size of reported claims during December 2002 and January 2003,
losses incurred in connection with the innovation of certain life
reinsurance contracts to XL Life and the retrocession back to the
Company of a portion of certain of those contracts, deferred
acquisition cost write downs associated with the Company's
largest annuity reinsurance agreement, losses associated with the
termination or recapture of certain of the Company's reinsurance
agreements and increases in the Company's reserves for guarantees
associated with variable annuity contracts.
In addition, the Company incurred losses of approximately $9.2
million and $20.2 million for the quarter and year ended December
31, 2002 in connection with the net change in the fair value of
the embedded derivatives recognized in certain of its annuity
reinsurance agreements pursuant to FAS 133-Accounting for
Derivative Instruments and Hedging Activities (net of the related
change in the amortization of deferred acquisition costs). The
expected losses are subject to change pending the completion of
the Company's financial statements for the year ended December
31, 2002.
Annuity and Life Re (Holdings), Ltd. provides annuity and life
reinsurance to insurers through its wholly owned subsidiaries,
Annuity and Life Reassurance, Ltd. and Annuity and Life
Reassurance America, Inc.
COMMERCIAL RISK: SCOR Group Announces 2002 Results
--------------------------------------------------
SCOR Group 2002 Results:
Premium income: EUR 5,016 million (+2.6%)
Group net loss: EUR - 455 million
Life reinsurance Embedded Value after tax
at December 31, 2002 - EUR 578 million
-- Despite unusually difficult operating conditions, toward the
end of the year SCOR charted a course for recovery and began to
implement appropriate measures.
-- Premium income in 2002 totaled EUR 5,016 million, a rise of
2.6%. At constant exchange rates, the increase would have been +
13%.
-- The Group's net loss of EUR - 455 million reflects the impact
of the stock market crisis and additions to prior-year reserves.
-- SCOR Group has signed on March 28, 2003 a letter of intent for
the disposal of Commercial Risk Partners.
-- B&W Deloitte has appraised SCOR's life division's Embedded
Value. Embedded Value after tax increased by EUR 120 million to
EUR 578 million at December 31, 2002.
The Board of Directors of SCOR met on March 31, 2002, with Denis
Kessler in the Chair, to close the financial statements for
fiscal 2002.
1. 2002 Results
The Group registered a net loss of EUR 455 million for 2002.
The loss for the first three quarters amounted to EUR 425
million.
At the time of announcement of the "Back on Track" plan it was
estimated that SCOR would report a full-year 2002 loss of EUR 400
million.
The following factors account for the difference between the loss
at the end of the first three quarters (EUR - 425 million) and
the final loss of EUR - 455 million for full-year 2002:
-- the write-down in full (EUR 18 millions) of goodwill on the
Bermuda subsidiary Commercial Risk Partners (CRP),
-- the addition of EUR 51 million to CRP's reserves prior to its
disposal,
-- a positive Group net income of EUR 39 million (excluding
the goodwill write-off on CRP and excluding replenishment of
CRP's reserves) for the fourth quarter of 2002.
Fourth quarter 2002 results (excluding CRP) exceeded the forecast
made in November 2002 by EUR 14 million. It was decided in
January 2003 to dispose of CRP or transfer it to a run off
account. A letter of intent providing for the disposal of CRP was
signed on March 28, 2003. CRP is disposed of at its net book
value at December 31, 2002, coupled with a clause providing for
the share-out between the purchaser and SCOR of any improvement
or deterioration in reserves up to a ceiling of EUR 100 million,
to be assessed in 2007 and in 2009. Closure of the transaction is
scheduled to take place by June 30, 2003
2. Review of Operations in 2002
Premium income rose by + 2.6% in 2002 to EUR 5,016 million. The
increase in premium income, at constant exchange rates, would
have been + 13%.
- Property and Casualty (P&C) reinsurance writings increased by
7% (17% at constant exchange rates) to EUR 2,069 million. Rate
increases, especially in short to medium-tail classes, helped to
lift Group premium income in this sector. The share of short to
medium-tail writings increased in 2002, representing 48% of total
activity in 2002, against 41% in 2001. P&C reinsurance began to
pick up in 2002, with a technical operating loss of EUR - 271
million, compared with EUR - 440 million in 2001.
- Life and Accident Reinsurance held steady in 2002. Premium
income rose 2% (10% at constant exchange rates) to EUR 1,530
million. This sector registered a technical operating profit of
EUR 26 million despite falling investment income.
- Large Corporate Accounts business rose 56% (75% at constant
exchange rates) to EUR 874 million. Rates increased
substantially. The technical operating loss of EUR - 4 million in
2002 represented a very marked improvement relative to the 2001
loss of EUR - 216 million.
- Credit and Bond Activity was down 33% relative to the previous
year, to EUR 117 million. This line of business registered a
technical operating loss of EUR - 111 million in 2002 due to
losses on the credit derivatives portfolio. The Group has
withdrawn from the latter activity entirely since November 2001.
- Premium Income on Alternative Risk Transfer (Art) Reinsurance
written by CRP fell by 41% in 2002 to EUR 426 million. The
technical operating result fell to a negative EUR 172 million in
2002, compared with a profit of EUR 4 million in 2001.
3. Group Key Figures
Consolidated Key Figures
in EUR million 31/12/2001 31/12/2002 Change
------------------------------ ----------- ----------- ----------
Gross written premiums 4,890 5,016 + 2.6%
------------------------------ ----------- ----------- ----------
Group net income not
- 278 - 455 material.
------------------------------ ----------- ----------- ----------
Net technical reserves not
10,438 10,381 material.
------------------------------ ----------- ----------- ----------
Investments (market to market) 9,606 9,717 + 1.2%
------------------------------ ----------- ----------- ----------
Group shareholders' equity 1,318 1,070 - 18.8%
------------------------------ ----------- ----------- ----------
Group shareholders' equity,
fully-diluted 1,369 1,289 - 5.8%
------------------------------ ----------- ----------- ----------
The combined ratios (measuring coverage of losses and expenses by
premiums) in each Group line of business, based on accounting
data for the year (all underwriting years combined), work out to:
Combined ratios
(net of retrocessions) 2001 2002
---------------------------------- -------------- --------------
P&C 131.70 % 117.68 %
---------------------------------- -------------- --------------
Life and accident 108.30 % 105.27 %
---------------------------------- -------------- --------------
Large Corporate Accounts 190.61 % 105.92 %
---------------------------------- -------------- --------------
Credit and Bond 104.12 % 181.22 %
---------------------------------- -------------- --------------
Alternative Risk Transfer (CRP) 111.28 % 147.95 %
---------------------------------- -------------- --------------
Total 123.85 % 118.30 %
---------------------------------- -------------- --------------
Combined ratios have improved, particularly in P&C reinsurance
and Large Corporate Accounts.
4. Review of Investment Policy in 2002
The outstanding features of 2002 were the continuing equity
markets slide and falling interest rates on bonds. SCOR Group
registered a decline in investment income in 2002, while capital
gains on bonds increased. At the same time, operating cash flow
rose, debt was reduced, and shareholders' equity increased.
- Total Investment Income fell by 28%, from EUR 450 million in
2001 to EUR 326 million in 2002. Losses from disposals of equity
securities, net of recoveries from allowances for long-lived
impairment, amounted to EUR 250 million in 2002. In addition, the
Group realized a capital gain of EUR 89 million on the disposal
of its equity interest in COFACE.
- Aggregate Unrealized Capital Gains at December 31, 2002 totaled
EUR 303 million, versus EUR 66 million at end-2001. The equity
portfolio at December 31, 2002 registered a loss of EUR 31
million, the bond portfolio a capital gain of EUR 222 million,
while capital gains on real estate amounted to EUR 112 million.
- Investments (marked to market) amounted to EUR 9,717 million at
December 31, 2002, a rise of 1.2% (7.7% at constant exchange
rates). These were split between bonds (64.5%), cash and
equivalents (20%), cash deposits (8%), real estate (5%), and
equity securities (2.5%).
- Operating Cash Flow increased sharply, from EUR 10 million in
2001 to EUR 345 million in 2002. The capital increase also
contributed to the increase in cash holdings. Aggregate Group
cash and equivalent totaled EUR 1,788 million at the end of 2002,
while free cash -- unencumbered and excluding trust funds --
amounted to EUR 1,436 million.
- Group Debt has been reduced from EUR 1,030 million at December
31, 2001 to EUR 892 million at end-2002. The debt maturity
profile has been lengthened as commercial paper and negotiable
medium-term notes outstanding declined from EUR 366 million at
end-2001 to EUR 62 million at end-2002.
- Long-Term Capital (fully-diluted shareholders' equity plus
quasi-equity and long-term borrowings) rose from EUR 2,085
million at end-2001 to EUR 2,183 million at end-2002.
5. Life Reinsurance Embedded Value at December 31, 2002
Embedded value at December 31, 2002, in the Group's life
reinsurance division (responsible for life, accident and health
reinsurance), has been appraised by B&W Deloitte.
Life reinsurance Embedded Value before tax increased from EUR 622
million at December 31, 2002 to EUR 750 at the end of 2002, at
constant method and perimeter. Embedded value after tax increased
from EUR 458 million at end-2001 to EUR 578 million at the end of
2002. It thus increased by EUR 120 million in 2002.
Inclusion of Embedded Value items not recognized in the
consolidated balance sheet would increase the value of SCOR's
consolidated net assets from EUR 1,070 million to EUR 1,299
million.
These figures, combined with the division's positive results in
2002, reflect the quality of SCOR's life business and its
positive contribution to the value of the SCOR Group.
6. Outlook
As called for in the "Back on Track" plan, the Group has
strengthened its control systems at all echelons. A new Board of
Directors will be elected by the General Meeting of Shareholders
on May 15, 2003. The management team has been renewed and
strengthened. The new control systems are now in place, a Chief
Reserving Actuary and a Head of Internal Audit having been named
in January, while a Chief Claims Strategist was appointed in
March. The internal underwriting planning and monitoring
procedures will be reviewed between now and the end of April
2003.
Respecting the "Back on Track" plan, the 2003 renewals campaign
may be considered satisfactory. The Group is deliberately
restricting its writings, selecting its risks, and rigorously
applying its underwriting ratios. It is benefiting from rate
increases in all its business segments. It is re-balancing its
portfolio toward Europe, short-tail risks, and life and accident
reinsurance.
At the end of the Board meeting, Denis Kessler, Chairman and
Chief Executive Officer, stated:
"The year 2002 was an exceptionally tough one for the SCOR Group,
culminating in a loss of EUR 455 million. We have had to make
hefty additional reserves on prior years to meet long-tail
claims. The sharp fall in the stock markets has affected the
Group. SCOR responded with the adoption of its "Back on Track"
recovery plan in November 2002, designed to restore confidence,
increase its solvency and recover its profitability. SCOR Group
ought to be in a position to start profiting in 2003 both from
improving prices in the reinsurance market and from the results
of recovery measures already implemented, thanks to a combination
of the Group's recapitalization, the adoption of a rigorous
underwriting plan implemented from the start of the renewals, a
very conservative investment policy, a radical reorganization
from top to bottom, which has left the Group free to refocus on
its profitable businesses."
Financial Disclosure Timetable
Annual Shareholders' Meeting: May 15, 2003
1St Quarter 2003 Results: May 16, 2003
CONTACT: SCOR
Delphine Deleval, +33 (0)1 46 98 71 64
Valentine Semet, +33 (0)1 46 98 72 32
===========
B R A Z I L
===========
CFLCL: 2002 Net Loss Soars to BRL72.9 Million
---------------------------------------------
Brazilian electric power company Companhia Forca e Luz
Cataguazes-Leopoldina (CFLCL) posted a net loss of BRL72.9
million for 2002. An article from NewEdge relates that the figure
skyrocketed from 2001 net loss of BRL736,000 only.
The Company's EBITDA went up to BRL255.9 million, compared to
BRL188.9 million in 2001. Power consumption also went up 4.9
percent, said the report.
CFLCL serves 1.7 million consumers in Minas Gerais state, Rio de
Janeiro, Sergipe, and Paraiba, through its power generation and
transmission companies.
ELETRONET: Eletrobras Blames AES For Financial Troubles
-------------------------------------------------------
Brazil's federal electricity holding company Centrais Eletricas
Brasileiras (Eletrobras) is now blaming AES Corp. for Eletronet's
financial difficulties. Eletronet is a telecommunications venture
between AES and Eletrobras. The board of the venture recommended
filing for bankruptcy protection because Eletronet is losing
BRL4.1 million (US$1.2 million) a month and can't find a buyer
for the Company, said Eletrobras President Luiz Pinguelli.
Eletronet owes suppliers BRL550 million, and AES, which controls
the company, is responsible for paying.
"Eletrobras won't assume this debt. This is not our
responsibility," Pinguelli said Tuesday at a press conference.
Eletronet was created in 1999 by LightPar, a unit of Eletrobras.
Eletrobras, via LightPar, took a 49% stake in Eletronet and
auctioned off the majority interest to sole bidder AES in August
of that year. AES offered the US$155 million minimum price for
its stake and committed to make its purchase payment in several
installments over four years, with the funds treated as paid-in
capital to Eletronet to help fund construction of the network.
The carrier, with a 16,000 kilometer-broadband network over
Brazil's electricity transmission grid, will likely file for
bankruptcy later this month as its cash-flow is dwindling.
Eletronet's board of directors indicated Monday the company
should file for bankruptcy, but the decision will only be made on
April 14 at an extraordinary shareholders' meeting.
The potential bankruptcy of Eletronet may add to AES's problems
in Brazil, where it already risks having Latin America's largest
power distributor seized by the government in lieu of unpaid
debts.
AES failed to make a required payment of US$3 million to boost
Eletronet's capital in August, leading it to give up day-to-day
management of the company, Pinguelli said. Even so, AES is still
responsible for the debt, he said.
"When we took control of Eletronet's management, we didn't take
control of the company. Its debt still belongs to AES, and they
are the ones who have to negotiate payment with their creditors,"
Pinguelli said.
Eletronet owes nearly 90% of its debt to suppliers Lucent
Technologies Inc. and Furukawa Cabos de Energia, a unit of
Japan's Furukawa Electric Co.
Jose Eudes, president of LightPar, said there is still a light at
the end of the tunnel as three interested players are looking
into the possibility of buying AES's stake in Eletronet.
EMBRATEL: Gets Favorable Ruling on Network Leasing Spat
-------------------------------------------------------
Brazilian long distance incumbent Embratel successfully won a
favorable ruling on a network leasing rates dispute from the
country's telecoms regulator Anatel.
A report by Business News Americas said that Anatel ordered
Embratel competition Brasil Telecom to justify giving discounts
to governmental clients for using its data communications
network, if it wished to continue granting the discounts. If the
discounts are to continue, Brasil Telecom will have to pay
BRL106,000 (US$31,000) daily. Otherwise, the Company will have to
charge standard rates to clients.
Embratel acknowledged Anatel's ruling in a press release saying
the decision recognized "irreparable damage to competition in the
data communication services market."
BBVA analyst Roger Oey said that other operators being
discriminated against through unjustifiably high network leasing
rates will now use the ruling as a precedent for their cases.
A source from Brasil Telecom said that the Company did not
participate in the legal proceedings, but it will conduct a legal
analysis to determine what stand it should take.
Although the ruling is good news for Embratel, it is only a small
part of unbundling and leasing reforms the Company is imploring
Anatel to implement, said Mr. Oey, adding that the Company's key
issue is getting the incumbents to unbundle local networks for
long distance operators.
CONTACT: Embratel Participacoes S.A.
Silvia Pereira, Investor Relations Manager
Tel: 55 21 2121-6474/9662 (messages)
Email: Silvia.Pereira@embratel.com.br
invest@embratel.com.br
=========
C H I L E
=========
ENERSIS: Announces Sale of Rio Maipo, $2B Capital Increase
----------------------------------------------------------
Chile's largest electricity provider, Enersis S.A. (Enersis; BBB-
/Negative), announced Monday that the Extraordinary Shareholders
Meeting held on March 31st has approved a US$203 million offer
made by Compa¤Ħa General de Electricidad (CGE) for its 98.7%
equity stake in Rio Maipo. Enersis is expected to receive US$170
million in cash and the remaining US$33 million is debt at the
level of Rio Maipo that will be assumed by the new owners.
With respect to the capital increase, Enersis' by-laws did not
allow any individual shareholder to own more than 65% of the
company at any given moment. However, this limit was removed by
the Extraordinary Shareholders Meeting, which also approved a
US$2 billion capital increase. This would allow Enersis' 65%
parent, Spain's Endesa S.A., to capitalize its US$1.3 billion
outstanding loan with Enersis. This capitalization would allow
Enersis to reduce its annual interest expenses by between US$40
million and US$60 million.
Enersis and its 60% owned power generator, Empresa Nacional de
Electricidad S.A. (Endesa Chile; BBB-/Negative), are undergoing a
financial strengthening plan involving the refinancing of US$2.3
billion of bank debt, the repayment of US$701 million in bonds in
2003, asset sales, and a capital increase. Standard & Poor's
believes that the sale of Rio Maipo is another positive step that
enhances the group's liquidity and strongly reduces the risk of
repayment of the US$701 million bond maturities that are due in
2003. Enersis and Endesa Chile will improve their liquidity
levels by US$344 million cash inflows to be received in the short
term as a result of the sales of Central Canutillar and Rio
Maipo.
Standard & Poor's will continue to closely monitor the evolution
of Enersis and Endesa Chile's bank refinancing that should be
completed in May 2003, and evolution of the companies' liquidity
level.
ANALYSTS: Sergio Fuentes, Buenos Aires (54) 114-891-2131
Marta Castelli, Buenos Aires (54) 114-891-2128
ENERSIS: To Spend $525M This Year To Consolidate LatAm Interests
----------------------------------------------------------------
Enersis said it would invest US$525 million in 2003 to
consolidate its interests in Latin America, reports Reuters.
"Our investment plan is to consolidate the interests of the
company. We don't intend to expand in the region. It isn't the
time for that," Rafael Miranda, a spokesperson for an Endesa
delegation in Santiago, told Reuters.
"It's hard to imagine in the next 10 years that we could have
another year that was as bad as 2002, with currencies
depreciating almost 70 percent and the difficulties seen in some
countries," said Miranda.
A large part of the investment will be destined for strengthening
the Company's energy generation, distribution and transmission
units in Argentina, Peru, Colombia, Chile and Brazil.
Of the US$525 million, US$130 million will be used for finishing
the Ralco hydroelectric plant in southern Chile that is due to
come onstream in 2004.
INVERLINK: Massad Resigns as Central Bank President
---------------------------------------------------
Chilean Central Bank president Carlos Massad, who is now in hot
water for his alleged involvement in the scandal surrounding
bankrupt Chilean financial services group Inverlink, quit his
post Monday. According to EFE, Massad went to the Moneda Palace
to personally inform Chilean President Ricardo Lagos of his
decision to resign.
Inverlink was recently declared bankrupt following intervention
by the authorities on March 7 after a series of financial
irregularities were discovered at its subsidiaries.
Although the Chilean Central Bank is autonomous and Massad was
not required to resign, he had been questioned for failing to
maintain stringent security measures at the bank, which allowed
one of his personal secretaries to send proprietary bank
information from Massad's own computer to the head of Inverlink,
a financial holding company.
The congressional committee investigating the scandal ordered
Massad to appear before it last week, but Massad didn't testify.
Meanwhile, bank officials said Massad's decision was personal and
not based on any deal with the committee.
SANTA ISABEL: Earnings Filing Delayed, Bourse Halts Trading
-----------------------------------------------------------
Santa Isabel, controlled by scandal-wracked Dutch group Royal
Ahold, failed to post 2002 earnings at the Chilean Stock and
Securities Superintendency on Monday midnight, the deadline
established by the bourse. As a result, Santiago's electronic
bourse stopped trading in the supermarket chain's shares. It
wasn't clear why Santa Isabel missed the deadline.
Ahold is currently in the process of selling Santa Isabel to
Chilean group Cencosud, owner of Chile's Jumbo supermarket chain
and Easy home-improvement stores. The Dutch group says it has a
book value of about US$220 million. Cencosud has said it expects
to complete the acquisition of Santa Isabel's Chilean assets in
April.
Ahold and its Argentine unit Disco SA have been caught up in a
scandal after the Dutch company revealed accounting
irregularities of at least US$500 million at its U.S. Foodservice
unit. There have also been suggestions of illegal transaction at
the Argentina unit.
Disco's earlier problems late last year prompted Ahold to launch
a largely successful bid for outstanding Santa Isabel shares,
which the two previously jointly controlled.
The Chilean supermarket operator's shares have since been largely
illiquid in the market.
CONTACT: Royal Ahold
Investor Relations:
Huibert Wurfbain, 011-31-75-659-5813
or
Media Relations:
Annemiek Louwers, 011-31-75-659-5720
or
Taylor Rafferty New York
Media Relations:
Ethan Sack, 212/889-4350
or
Taylor Rafferty London
Media Relations:
Matthew Nardella, + 44 20 7936 0400
===============
C O L O M B I A
===============
AVIANCA: US Trustee Names 7-Member Official Creditors' Committee
----------------------------------------------------------------
Carolyn S. Schwartz, the United States Trustee for Region 2
appointed 7 members to an Official Committee of Unsecured
Creditors in Aerovias Nacionales De Colombia S.A. Avianca and
Avianca, Inc.'s Chapter 11 cases:
1. debis AirFinance B.V.
Attn: Martin Wills
Evert van de Beekstraat 312
1118 Cx Schipol Airport
Amsterdam, The Netherlands
Telephone No.: 011-3120-655-9655
2. Banco De Bogota-Colombia
Attn: Alejandro Figueroa, President
Calle 36 No. 7-47 Piso 14
Bogota, Colombia
Telephone No.: 011-057-1-3383405
3. United Aerospace Corporation, Inc.
Attn: John P. Yurgealitis, President
9800 Premier Parkway
Miramar, Florida 33025
Telephone No.: (954) 364-0085
4. Caja de Auxilios y Prestaciones de Acdac
Attn: Monica Romero, President CAXDAC
Carrera 10A No. 90-35
Bogota, Colombia
Telephone No.: 011-57-1-6180287
5. Monumental Life Insurance Company
(f/k/a Peoples Security Life Insurance Company)
Attn: Mary T. Pech, Vice-President
4333 Edgewood Rd., N.E.
Cedar Rapids, Iowa 52499-5335
Telephone No.:(319) 398-8062
6. Pegasus Aviation Inc.
4 Embarcadero Center
Suite 3550
San Francisco, CA 94111
Telephone No.: (415) 743-0257
7. Asociacion Colombiana de Aviadores Civiles
Attn: Capitan Alberto Padilla Henao
Calle 94 No. 23-16
Bogota D.C. - Colombia
Telephone No.: 011-57-1-621-6380 or 011-57-1-621-6398
Official creditors' committees have the right to employ legal and
accounting professionals and financial advisors, at the Debtors'
expense. They may investigate the Debtors' business and financial
affairs. Importantly, official committees serve as fiduciaries to
the general population of creditors they represent. Those
committees will also attempt to negotiate the terms of a
consensual chapter 11 plan -- almost always subject to the terms
of strict confidentiality agreements with the Debtors and other
core parties-in-interest. If negotiations break down, the
Committee may ask the Bankruptcy Court to replace management with
an independent trustee. If the Committee concludes reorganization
of the Debtors is impossible, the Committee will urge the
Bankruptcy Court to convert the Chapter 11 cases to a liquidation
proceeding.
Aerovias Nacionales de Colombia S.A. Avianca, the oldest airline
in the Western Hemisphere, operates a domestic (Colombia) and
international airline passenger business, but it also carries
mail and freight cargo on its domestic and international routes,
filed for chapter 11 protection on March 21, 2003 (Bankr.
S.D.N.Y. Case No. 03-11678). Ronald E. Barab, Esq., at Smith,
Gambrell & Russell, LLP and Howard D. Ressler, Esq., at Anderson,
Kill & Olick, P.C., represents the Debtors in their restructuring
efforts. When the Company filed for protection from its
creditors, it listed estimated debts and assets of more than $100
million each.
AVIANCA: Moves To Reject Master Trust Agreement
-----------------------------------------------
PLEASE TAKE NOTICE that upon the annexed Motion to Reject Master
Trust Agreement filed in the above-referenced bankruptcy case on
March 21, 2003 (the "Motion"), on behalf of the above referenced
debtors and debtors- in-possession, the undersigned will move
before the Honorable Allan Gropper, United States Bankruptcy
Judge, United States Bankruptcy Court for the Southern District
of New York (the "Bankruptcy Court"), Alexander Hamilton Custom
House, One Bowling Green, New York, New York, 10004-1408, on the
11th day of April, 2003, at 10:00 o'clock a.m. (the "Hearing"),
or as soon thereafter as counsel may be heard, for the entry of
an order authorizing and approving rejection of that certain
master trust agreement described in the Motion.
PLEASE TAKE FURTHER NOTICE that you need not appear at the
Hearing if you do not object to the relief requested in the
Motion.
PLEASE TAKE FURTHER NOTICE that the Bankruptcy Court shall retain
jurisdiction to determine all matters arising out of or relating
to the making of an objection to the relief requested in the
Motion and each person by making such objection shall subject
itself to the jurisdiction of the court with reference to all
matters arising out of its objection and all matters relating
thereto.
PLEASE TAKE FURTHER NOTICE that objections to the relief
requested, if any,
(i) must be in writing,
(ii) must state the name of the objecting party, its status as a
party- in- interest, and nature and basis of its objection(s),
(iii) must comply with the Bankruptcy Code, the Federal Rules of
Bankruptcy Procedure and the Local Rules of the United States
Bankruptcy Court, and
(iv) must be:
(a) served upon the undersigned attorneys for the Debtors,
Smith, Gambrell & Russell, LLP, Suite 3100, Promenade
II, 1230 Peachtree Street, N.E., Atlanta, Georgia
30309-3592, Attention: Ronald E. Barab, Esq., and
Anderson, Kill & Olick, P.C., 1251 Avenue of the
Americas, New York, New York 10020 ATTN: Howard D.
Ressler; and
(b) filed with the Bankruptcy Court (with a courtesy
copy delivered to chambers), at least three (3) days
prior to the Hearing.
Dated: Atlanta, Georgia
April 1, 2003
Respectfully submitted,
/s/Ronald E. Barab
Ronald E. Barab (RB4876)
Of Counsel:
SMITH, GAMBRELL & RUSSELL, LLP
Suite 3100, Promenade II
1230 Peachtree Street, N.E.
Atlanta, Georgia 30309
(404) 815-3500
ANDERSON, KILL & OLICK, P.C.
1251 Avenue of the Americas
New York, New York 10020
(212) 278-1000
Attorneys for the Debtors
AVIANCA: Narrows Losses To $35M Last Year
-----------------------------------------
Colombian airline Avianca, which is controlled by the newly-
created Alianza Summa, posted a 63% decrease in losses to
COP102.5 billion ($34.6 million) in 2002, against losses of
COP278.5 billion in the previous year. The improvement, according
to Reuters, was due in part to a 13.9% rise in postal traffic
compared with 2001. The airline filed for Chapter 11 bankruptcy
protection in the United States last month.
=============
E C U A D O R
=============
PETROECUADOR: Past Due Debts Face Thursday Deadline
---------------------------------------------------
Ecuador state oil company Petroecuador's production arm
Petroproduccion has until Thursday to pay US$65 million in
overdue debts, local paper El Universo reported, citing the
country's Association Of Oil Service Companies (Asemser)
President Fernando Pareja.
If the Company fails to meet the financial obligation on time, at
least ten oil service companies will stop crude production, said
Business News Americas. French oil services company Schlumberger
is reportedly one of the companies that threatened to suspend
services if payment is not made.
However, the Company's future seems bleak. A source close to
Petroecuador told BNAmericas, "The economy ministry simply does
not have the resources to pay the national debt and meet all its
other financial obligations."
According to the report, Petroecuador president Guillermo Rosero
has two options left. One is to raid the US$100 million oil
stabilization fund, or force four thermo power companies to pay
US$100 million in outstanding debts for diesel sales.
But the said thermo generators claim that they cannot pay, as
they have not received payments from the distributors who, in
turn, have not been paid by their clients.
The source emphasized the importance of crude exports to the
country.
"Ecuador relies on crude exports for the majority of our income,
and if production is cut it could have dire consequences for the
government," said the source.
Petroecuador is controlled by the economy ministry, which gives
the Company US$7 million weekly to cover operating and
maintenance costs. However, said the source, the amount is only
one-half of what the Company needs.
The source also denied rumors that Petroecuador's debt is due to
mismanagement by the previous administration.
=================
G U A T E M A L A
=================
INTERNATIONAL THUNDERBIRD: Updates Operational Results
------------------------------------------------------
International Thunderbird Gaming Corporation (TSX - INB)
announces the following update:
Guatemala Contract: The Company entered into a seven-year
agreement with ILAC to continue operations of its video lottery
terminals at the Camino Real Hotel in Guatemala City. The Company
will be entitled to 65% of revenue and will be responsible for
all operating expenses while ILAC and the Pediatric Foundation
share the remaining 35% of revenue. The Company has leased
additional space in the Hotel and is currently improving the
space for the addition of a bar and additional video lottery
machines. The Company is assessing an expansion of video lottery
locations and is confident that the Guatemala operation will
continue to be a steady profitable business.
Workout on Fiesta Casino Guayana Lease: The Company previously
reported that the Fiesta Casino in Puerto Ordaz, Venezuela
continues to meet its debt service and monthly operational
expenses in spite of major political and civil unrest. A
successful renegotiation of the lease has been accomplished with
the Intercontinental Hotel, wherein they agreed to tie rent
charges to a percentage of gross revenue determined on the basis
of the bolivar. This will significantly reduce the operations
risk with respect to devaluation.
NAFTA: A three-member arbitration panel has been appointed and is
now set to move forward. The three-member panel of arbitrators is
set to convene a "preparatory conference" in late April to set
forth the schedule to present the case. The NAFTA process is slow
and tedious but the Company will make every attempt to bring the
matter to hearing before year-end. The Company remains confident
of its ultimate success primarily because Mexico continues to
allow other identical operations to remain open.
Trading: The Company continues to pursue a listing on the United
States OTCBB and is seeking market makers, which are a pre-
requisite to the listing. The Company is conducting due diligence
in assessing various market makers to best serve our
shareholders. The Company remains confident that a listing will
be in place within the next 60 days. The Company also intends to
file its application with the soon to be formed "BBXchange",
which intends to accept applications this July. The BBXchange is
proceeding through regulatory approval and expects to be opened
for trading by January, 2004.
Nicaragua: The merger has been completed and the two casinos are
integrating operations and systems. Initial results are
encouraging and ahead of expectations. The merged operation is
expected to be profitable this year.
Annual General Meeting: The Company's Annual General Meeting is
scheduled for June 27, 2003.
International Thunderbird Gaming Corporation is an owner and
manager of international gaming facilities. Additional
information about the Company is available on its World Wide Web
site at www.thunderbirdgaming.com. The Company moved its
corporate offices to a new location just north of San Diego,
California.
On behalf of the Board of Directors,
Jack R. Mitchell, President and CEO
Cautionary Notice: This release contains certain forward-looking
statements within the meaning of section 21E of the United States
Securities Exchange Act of 1934, as amended. All statements,
other than statements of historical fact, included herein,
including without limitation, statements regarding potential
revenue and future plans and objectives of the Company are
forward-looking statements that involve risk and uncertainties.
There can be no assurances that such statements will prove to be
accurate and actual results could differ materially from those
anticipated in such statements. Important factors that could
cause actual results to differ materially from the Company's
forward-looking statements include competitive pressures,
unfavorable changes in regulatory structures, and general risks
associated with business, all of which are disclosed under the
heading "Risk Factors" and elsewhere in the Company's documents
filed from time-to-time with the TSE and other regulatory
authorities.
CONTACT: International Thunderbird Gaming Corporation
Albert W. Atallah
Tel: (858) 668-1808 ext. 206
Email: info@thunderbirdgaming.com
===========
M E X I C O
===========
ALESTRA: Bondholders Seek Better Terms From Bond Exchange Offer
---------------------------------------------------------------
Bondholders in Alestra, the Mexican telephone affiliate of AT&T
Corp that defaulted on its debt last year, are seeking for an
improvement in the terms of the Company's outstanding bond-
exchange offer, reports Reuters.
"We asked for more of everything. We asked them to improve (the
exchange offer) in every respect," said one bondholder who is
part of the group in negotiations with Alestra.
Bondholders said additional cash, equity participation, or
enhancements to the restructured bonds could all make the offer
more attractive.
Alestra, 49%-owned by AT&T, made an initial exchange offer
earlier this year, but only about 42% of bonds were tendered, so
the Company extended the deadline until April 15. The Company has
set a threshold of 90% of bonds tendered in order to go ahead
with the exchange.
Alestra is asking holders of its outstanding 2006 notes, which
have a 12-1/8 coupon and its 2009 notes, which carry a 12-5/8
coupon, to accept a combination of cash and new bonds in
exchange.
Some bondholders feel that Alestra's plans for annual capital
spending of US$40 million could be trimmed in order to offer more
cash to bondholders in the exchange offer.
Alestra's three shareholders -- AT&T, Mexico's Grupo Alfa
industrial conglomerate and Mexico's BBVA Bancomer bank -- have
pledged to inject US$80 million into the Company if bondholders
accept the exchange offer.
Headquartered in San Pedro Garza Garcia, Mexico, Alestra is a
leading provider of competitive telecommunications services in
Mexico that it markets under the AT&T brand name and carries on
its own network. Alestra offers domestic and international long
distance services, data and internet services and local services.
CONTACT: ALESTRA, S. DE R.L. DE C.V.
Sergio Bravo
Phone: (52-818) 625-2269
E-mail: sbravo@alestra.com.mx
Alberto Guajardo
Phone: (52-818) 625-2219
E-mail: aguajard@alestra.com.mx
or
MORGAN STANLEY & CO. INCORPORATED
Heather Hammond
Phone: 800/624-1808 (domestic US)
11 212 761-1893 (international callers call
collect)
AZTECA HOLDINGS: Extends Exchange Offer Deadline
------------------------------------------------
Azteca Holdings, S.A. de C.V., the controlling shareholder of TV
Azteca, S.A. de C.V., one of the two largest producers of Spanish
language television programming in the world, announced Tuesday
that it is extending the expiration date of the offer to
exchange, subject to market and other conditions, its new 103/4%
Senior Secured Amortizing Notes due 2008 for its existing 101/2%
Senior Secured Notes due 2003. As of the original expiration
date, March 31, 2003, US$41,993,000 in principal amount of the
101/2% notes were tendered for exchange. The exchange offer also
includes a consent solicitation for amendments to the terms and
conditions of the indenture governing the 101/2% notes. The
completion of the exchange offer will also include the approval
of these amendments. The new expiration date for the exchange
offer and the consent solicitation is 5:00 p.m., New York City
time, on April 7, 2003.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the new 103/4% notes, nor shall
there be any sale of the new 103/4% notes in any state in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any
such state.
The exchange offer and consent solicitation are being made
pursuant to an Offering Memorandum and Consent Solicitation
Statement dated March 3, 2003 and the related Letter of
Transmittal and Consent, which more fully set forth the terms and
conditions of the exchange offer and consent solicitation. The
exchange offer and consent solicitation may be terminated or
amended at any time prior to the new expiration date, and the new
expiration date may be extended at the option of Azteca Holdings.
Company Profile
Azteca Holdings, S.A. de C.V. is a holding company whose
principal asset is 55.5% of the capital stock of TV Azteca, S.A.
de C.V.
TV Azteca is one of the two largest producers of Spanish language
television programming in the world, operating two national
television networks in Mexico, Azteca 13 and Azteca 7, through
more than 300 owned and operated stations across the country. TV
Azteca's affiliates include Azteca America Network, a broadcast
television network focused on the rapidly growing United States
Hispanic market; Unefon, a Mexican mobile telephony operator
focused on the mass market; and Todito.com, an Internet portal
for North American Spanish speakers.
The matters discussed in this press release are forward-looking
statements and are subject to certain risks and uncertainties
that could cause actual results to differ materially from those
projected. Completion of any of the transactions discussed in
this press release are subject to (i) the closing conditions for
the exchange offer and consent solicitation and Azteca Holdings'
right to terminate, modify or amend the exchange offer and
consent solicitation, (ii) United States and Mexican market
conditions and their impact on the exchange offer and consent
solicitation, (iii) Azteca Holdings' ability and the ability of
TV Azteca to service Azteca Holdings' debt and its debt, (iv) the
outcome of pending disputes and legal proceedings involving TV
Azteca and its affiliates, (v) competitive factors affecting TV
Azteca and its affiliates in Mexico and the United States, (vi)
cancellations of significant advertising contracts of TV Azteca,
(vii) limitations on Azteca Holdings' access to sources of
financing on competitive terms, (viii) significant economic or
political developments in Mexico and globally which affect
Mexico, (ix) changes in the Mexican regulatory environment, (x)
commencement of war or armed hostilities directly or indirectly
involving or affecting Mexico or the United States and (xi)
terrorist attacks initiated against the United States or its
allies in the United States or elsewhere. Other risks that may
affect Azteca Holdings or TV Azteca are identified in Azteca
Holdings' Form 20-F, TV Azteca's Form 20-F and other filings with
the United States Securities and Exchange Commission. Azteca
Holdings undertakes no obligation to update forward-looking
statements to reflect subsequently occurring events or
circumstances.
CONTACT: Azteca Holdings, S.A. de C.V.
Bruno Rangel
Phone: +5255-30-99-9167/
Home Page: http://www.tvazteca.com.mx
GRUPO MEXICO: Signs $200M Loan Deal With International Banks
------------------------------------------------------------
Grupo Mexico, the world's third-largest copper mining company,
signed a US$200-million credit deal with a group of international
banks, a company official said on Monday.
The loan will help the Company's subsidiary Americas Mining Corp.
buy Peruvian miner Southern Peru Copper Corp. from another unit,
Phoenix-based Asarco Inc., for US$765 million in cash and assumed
debt, Grupo Mexico said in a statement. The cash from the
acquisition will help save Asarco from bankruptcy after copper
prices fell to 14-year lows, the Company has said.
The syndicated loan was led by J.P. Morgan Chase & Co. Inc, a
Grupo Mexico official said. "This credit replaces the original
agreement with Barclays."
Grupo Mexico had originally been in talks with British bank,
Barclays Plc, for a US$225-million loan. However, Barclays
retracted its offer on concern the Company's plan may not be
enough to prevent another default, analysts said. Grupo Mexico is
depending on the loans to continue operating while paying its
US$2.9 billion in debt after falling copper prices forced it to
miss payments on more than US$1.3 billion in bank loans this year
and last.
"Barclays signed before the January default occurred," said Jim
Harper, a distressed-debt analyst with BCP Securities in
Greenwich, Connecticut. "It's a very different thing to lend to a
company prior to a default than it is post-default."
Grupo Mexico reported a fourth-quarter loss of US$96.8 million,
compared with the US$282 million loss it reported for the same
quarter a year earlier. It recently announced a US$310 million
loan contract with Mexican bank Inbursa for Americas Mining Corp.
"With the completion of these joint operations, Asarco reduces
its net debt to US$226 million, which represents a reduction of
77% of its overall debt, canceling 100% of short-term debt," the
official said.
Grupo Mexico, which has operations in Mexico, Peru and the United
States, recently began to show signs of a turnaround after
several years of low copper prices made it difficult to handle
the mountainous debt load it took on to buy Asarco Inc. in 1999
in a leveraged buyout worth US$2.25 billion.
Since last November, the Company has been assuring investors it
is getting its books back in order, although analysts became
skeptical as payment dates came and went. The company has been
promising a financial restructuring for over a year.
The banks issuing the loan also include Bank of America Corp.,
the Bank of Nova Scotia, BNP Paribas SA, Citigroup Inc.'s Banamex
unit and Dresdner Bank AG. The terms of the loan weren't
disclosed.
To see financial statements:
http://bankrupt.com/misc/Grupo_Mexico.pdf
CONTACT: GRUPO MEXICO S.A. DE C.V.
Avenida Baja California 200,
Colonia Roma Sur
06760 Mexico, D.F., Mexico
Phone: +52-55-5264-7775
Fax: +52-55-5264-7769
Home Page: http://www.gmexico.com
Contacts:
Germ n Larrea Mota-Velasco, Chairman and CEO
Xavier Garca de Quevedo Topete, President and COO
Alfredo Casar Perez, COO, Ferrocarril Mexicano
Daniel Chavez Carre, COO, Industrial Minera Mexico
Daniel Tellechea Salido, VP and Administration and
Finance President
PEMEX: Guarantees Availability of Energy Products Supply
--------------------------------------------------------
Petroleos de Mexicanos director Raul Munoz Leos assured that the
supply of energy products throughout Mexico is guaranteed,
according to a report by NewsEdge. Mr. Leos added that they are
prepared to increase oil production, if necessary. More oil may
be required, depending on the market, or if the war in Iraq is
extended.
Last month, the Company announced the discovery of 2,700 new oil
locations. Pemex's upstream unit (PEP) director Luis Ramirez
Corso said that the new locations potentially hold between 17
billion and 24.4 billion barrels.
Recently, the Company increased its average daily production goal
to 3.343 million barrels a day. Aside from increasing petroleum
products and petrochemicals, the Company also sees sales this
year rising to MXP526 billion from MXP495 billion last year.
=================================
T R I N I D A D & T O B A G O
=================================
BWIA: Dismissed Workers March As BWIA Over Severance Pay Fight
--------------------------------------------------------------
Dismissed workers from Trinidad and Tobago flag carrier BWIA
protested at the airline's headquarters at Piarco on Tuesday,
complaining that the airline has failed to meet its obligations
to them.
RJRNews.Com quoted Heston Mitchell, a spokeswoman for the workers
saying they have not received severance wages. She added that
BWIA has not indicated when it will pay them.
Meanwhile, BWIA's management is yet to respond to the workers'
accusations. The picketing workers were dismissed in January,
when BWIA was completing its restructuring process.
But recently, the airline is reportedly having more financial
difficulties as the military conflict in the Middle East is
adversely affecting bookings.
A previous report from the Trinidad Express indicated that the
airline has asked for financial assistance from the government.
However, local press said that Prime Minister Patrick Manning is
unlikely to grant aid to the ailing carrier.
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
=============
ANCAP: Losses In Argentina Remain Uncalculated
----------------------------------------------
Exactly how much Uruguayan state oil company ANCAP lost in its
expansion in Argentina is still unclear. Some people say the
Company lost more than US$250 million, while others say it is
less than US$50 million. According to a report released by
NewsEdge, the Company's board informed the Senate that it is
still investigating the matter. The board admits that it might
take 10-12 years to recover Argentine investments. In Argentina,
ANCAP owns 83.4% of Petrolera Conosur and 6.13% of Sol Petroleo.
BANCO DE CREDITO: To Sell Best Assets In May
--------------------------------------------
Uruguay's government will stage a public auction in May to sell
the best assets of liquidated bank Banco de Credito, reports
local daily El Pais.
"The idea is to sell or hand over for administration Banco de
Credito's assets in the most open way possible and through an
auction process," Julio de Brun, President of the Central Bank of
Uruguay, said.
The government intervened and suspended Banco de Credito and four
other banks in July and August last year due to capital and
liquidity problems. It then negotiated with minority shareholder
St George to re-open the bank. However, the talks were called off
after St. George, an investment company that belongs to the
controversial South Korean Moon group, rejected a proposal to buy
back a majority stake in the ailing bank, forcing the central
bank to liquidate Banco de Credito.
De Brun ruled out as unfeasible the direct transfer of Banco de
Credito deposits and assets to state bank Banco Republica, which
many clients of the liquidated bank have demanded.
Banking union AEBU chairman Juan Jose Ramos suggested that the
government will need to provide more details regarding the asset
sale and how it will affect Banco de Credito's employees.
At the beginning of March, Banco de Credito employees fearing for
their jobs took over the bank's head office and several branches.
The standoff ended after it was announced that Banco de Credito's
assets would be sold to other banks.
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter Latin American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Oona G. Oyangoren, Editors.
Copyright 2003. 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 * * *