/raid1/www/Hosts/bankrupt/TCRLA_Public/030529.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, May 29, 2003, Vol. 4, Issue 105
Headlines
A R G E N T I N A
AEROLINEAS ARGENTINAS: Officers Restricted from Leaving Country
BANCO SUDAMERIS: New Owner Steps In
DIRECTV LA: Seeks To Fix August 30, 2003 As Claims Bar Date
DIRECTV LA: Parent Gets Favorable Ruling On Pegasus Case
DIRECTV LA: Monthly Operating Report -- Ended April 30, 2003
HAVANNA: To Launch Buyback Offer By June
JULIAN ALVAREZ: Court Orders "Concurso Preventivo"
LAPA/DINAR: New Company To Absorb Former Employees
LYTTONWEST S.A.: Placed Under Receivership
TURISUR: Court Orders "Concurso Preventivo"
B R A Z I L
CANBRAS COMMUNICATIONS: Announces Successful Debt Refinancing
ELETRONET: Judge Blocks Brazilian Govt.'s Auction Attempt
FIBERCORE: Nasdaq Delisting Hearing Seeks Further Information
VARIG: Must Sign Letter of Commitment To Get BNDES Funds
C H I L E
ENERSIS: Receives 17 Bids For PLC Technology
D O M I N I C A N R E P U B L I C
BANCO INTERCONTINENTAL: Assets to Be Auctioned Soon
BANCO INTERCONTINENTAL: CB Orders Freeze On Exchange Rates
J A M A I C A
* Moody's Cuts Jamaica's Credit Rating To B1
M E X I C O
GRUPO IUSACELL: Pending Payment Concern Prompts S&P Downgrade
GRUPO TMM: Bourse Seeks Clarification on Televisa Report
T R I N I D A D & T O B A G O
BWIA: Trouble Clouds Passengers Willingness to Book Flights
BWIA: Management Accused of Misleading Government
BWIA: CEO Aleong Ready To Give Up Post To Save Airline
V E N E Z U E L A
PDVSA: Oil Production Back To Meeting Customer Commitments
* Moody's Ups Venezuela's Sovereign Ratings To Stable
- - - - - - - - - -
=================
A R G E N T I N A
=================
AEROLINEAS ARGENTINAS: Officers Restricted from Leaving Country
---------------------------------------------------------------
An Argentine judge banned officials from Aerolineas Argentinas
from leaving the country following allegations of fraud leveled
against them by one of the airline's creditors, reports EFE.
On Monday, Judge Alberto Ba¤os summoned Antonio Mata, the
chairman of the Spanish-run airline, and another 13 airline
officials to testify in court and banned them from leaving the
country after being accused of fraud by one of Aerolineas
Argentinas' creditors. The judge also froze the airline's assets,
as well as those of officials under suspicion.
Court spokesmen related that creditor Luis Rizzi has accused
Aerolineas of committing fraud during bankruptcy proceedings
initiated by the Company in mid-2001, a process which ended in
December.
He charged that the Company had diverted funds to its
subsidiaries and overstated the actual number of its creditors to
gain advantages during the process.
Aerolineas Argentinas was sold to Spanish tourism group Viajes
Marsans in October 2001, when it agreed to take over the
airline's colossal debt from SEPI, Spain's state-owned holding
company.
Aerolineas Argentinas publicly complained Tuesday that it has
been the target of a smear campaign. Mata said the Company had
"learned (about the investigation) from the press."
"You cannot defend yourself if you don't know what you are being
accused of," he told a news conference, adding that he hoped the
airline would be informed of the investigation.
"We believe that we are the target of a smear campaign ... to
destabilize the company at a time when it's better then ever," he
said.
CONTACT: AEROLINEAS ARGENTINAS
Torre Bouchard 547, 1106 Buenos Aires, ARGENTINA
Phone: (54-11) 4310-3000
Fax: (54-11) 4310-3585
E-mail: volar@aerolineas.com.ar
Home Page: www.aerolineas.com.ar
Contact:
Patricio Zabalia Lagos, President
BANCO SUDAMERIS: New Owner Steps In
-----------------------------------
The sale of Italian bank Banca Intesa SpA's unit in Argentina to
Banco Patagonia SA, a provincial lender in southern Argentina, is
now complete. Citing a joint statement from Banca Intesa and
Banco Patagonia, Bloomberg reports that the unit, Banco Sudameris
Argentina SA, will be absorbed into Banco Patagonia to form a new
bank called Banco Patagonia-Sudameris.
Milan-based Banca Intesa will own one-fifth of the bank, which
will have more than 100 branches. The sale of Banco Sudameris
Argentina is part of the Italian Intesa's plan to sell assets to
boost profitability.
In October 2002, Intesa revealed plans to spend US$150 million to
recapitalize its Argentine unit and then give up control of it in
its merger with Banco Patagonia.
Banco Patagonia-Sudameris "has been strengthened by the capital
injection," the lenders said in the statement. The bank "fully
complies with the new regulations issued by the Argentine
authorities in order to cope with severe damages suffered by the
local banking system during the 2001-2002 financial crisis."
DIRECTV LA: Seeks To Fix August 30, 2003 As Claims Bar Date
-----------------------------------------------------------
Rule 3003(c)(3) of the Federal Rules of Bankruptcy Procedure
provides that the Court will fix the time within which proofs of
claim must be filed in a Chapter 11 case, pursuant to Section 501
of the Bankruptcy Code. Moreover, Bankruptcy Rule 3003(c)(2)
provides that a creditor whose claim is not scheduled or is
scheduled as disputed, contingent or unliquidated must file a
proof of claim.
Accordingly, DirecTV asks the Court to establish:
(a) August 30, 2003 at 4:00 p.m. EDT as the last date and
time by which proofs of claim based on prepetition
liability against DirecTV must be filed by creditors
other than governmental units; and
(b) September 18, 2003 at 4:00 p.m. EDT as the last date and
time by which proofs of claim based on prepetition
liabilities against DirecTV must be filed by governmental
units.
Joel A. Waite, Esq., at Young Conaway Stargatt & Taylor LLP, in
Wilmington, Delaware, contends that fixing the Bar Dates will
enable DirecTV to begin the analysis of prepetition claims in a
timely and efficient manner. Accordingly, based on these
proposed procedures, the Bar Dates will give all creditors ample
opportunity to file proofs of claims:
A. Each person or entity that asserts a "claim" against DirecTV
that arose prepetition must file an original, written proof
of claim on or before the applicable Bar Dates and in
accordance with the Bar Date Order;
B. All Proofs of Claims must be filed with Bankruptcy Services,
LLC, which has been authorized by the Court to serve as
DirecTV's official Claims Agent;
C. These persons or entities are not required to file a proof of
claim on or before the applicable Bar Dates:
-- any person or entity that already has properly filed, with
the Clerk of the U.S. Bankruptcy Court for the District of
Delaware a proof of claim against Delaware utilizing a
claim form, which substantially conforms to Official Form
No. 10;
-- any person or entity having a claim under Sections 503(b)
or 507(a) of the Bankruptcy Code as an administrative
expense of DirecTV's case;
-- any person or entity whose claim has been paid by DirecTV
in full;
-- any person or entity whose claim is listed on the
Schedules, whose claim is not described as disputed,
contingent or unliquidated, and whose claim does not
dispute the amount or nature of the claim, as set forth
in the Schedules;
-- any person or entity holding a claim that has been allowed
by an order of the Court entered on or before the General
Bar Date or the Governmental Bar Date, as applicable;
-- any DirecTV employee whose claim arises under DirecTV's
workers' compensation policies and programs; or
-- any person or entity that is a party to an executory
contract or unexpired lease with DirecTV that is not
rejected pursuant to a Court Order dated on or before the
Court enters the Bar Date Order;
D. Any person or entity that holds a claim arising from the
rejection of an executory contract or unexpired lease as to
which the order authorizing the rejection is dated after the
Bar Date Order must file a proof of claim on or before the
date the Court may fix in the applicable order authorizing
the rejection of that contract or lease;
E. Persons holding claims against any of DirecTV's Local
Operating Companies should not file a proof of claim in this
Case on account of that claim;
F. Each proof of claim must:
-- be written in English;
-- be denominated in lawful U.S. currency;
-- conform substantially with Official Form No. 10; and
-- be signed by the claimant or its authorized agent;
G. Any holder of a claim against DirecTV who is required but
failed to file a proof of claim in accordance with the Bar
Date Order will be forever barred, estopped and enjoined from
asserting a claim against DirecTV and DirecTV and its
property will be forever discharged from any and all
indebtedness or liability with respect to the claim;
H. Any claimant who failed to file a proof of claim is
prohibited from voting with respect to any plan of
reorganization or from participating in any distribution in
this Chapter 11 case on account of that claim;
I. DirecTV will mail a notice of the Bar Date Order to:
-- the U.S. Trustee,
-- the Committee's counsel,
-- all known claim holders listed on the Schedules at the
addresses stated therein;
-- all known holders of equity interests in DirecTV listed on
the Schedules;
-- all DirecTV employees;
-- all Counterparties to DirecTV's executory contracts and
unexpired leases;
-- all persons or entities with whom DirecTV has transacted
business in the last 18 months;
-- the District Director for Internal Revenue for the
District of Delaware;
-- counsel for DirecTV's postpetition lender;
-- the U.S. Attorney for the District of Delaware; and
-- all parties who have filed notices of appearances pursuant
to Rule 2002 of the Federal Rules of Bankruptcy Procedure;
J. The Bar Date Notice will be published at least 20 days prior
to the General Bar Date once in each of:
-- The Wall Street Journal,
-- The New York Times,
-- The Miami Herald, and
-- American Economica.
Mr. Waite asserts that the Notice Procedure is reasonable and
adequate since:
(a) each creditor whose claim is listed in the Schedules and
those identified by this motion will receive in the mail
the Bar Date Order, a proof of claim form and
instructions for filing a proof of claim; and
(b) by establishing the proposed General Bar Date, all
creditors will have approximately 88 days notice of the
Bar Date for filing proofs so claim; (DirecTV Latin
America Bankruptcy News, Issue No. 7, Bankruptcy
Creditors' Service, Inc., 609-392-0900)
DIRECTV LA: Parent Gets Favorable Ruling On Pegasus Case
--------------------------------------------------------
A federal court judge in Los Angeles late this afternoon granted
significant aspects of the summary judgment relief requested last
fall by DIRECTV, Inc. in its litigation with Pegasus and the
National Rural Telecommunications Cooperative (NRTC).
In her ruling, Federal District Court Judge Lourdes G. Baird
rejected the tort claims of Pegasus and the Class of NRTC
Members, establishing that these parties have no right to
compensatory or punitive damages from DIRECTV.
"We are pleased that the court has eliminated the damages claims
asserted by Pegasus and the Class," said Robert M. Hall, senior
vice president and General Counsel, DIRECTV, Inc. "There has been
speculation that Pegasus and the Class could recover more than
$150 million in damages from DIRECTV on their tort claims.
DIRECTV has always believed these claims lacked merit. The court
ruling vindicates that view."
The ruling does not affect DIRECTV's claim for approximately $50
million in damages against Pegasus arising out of Pegasus' breach
of a joint marketing agreement. That case is still scheduled for
trial on June 3, 2003.
In a related ruling, the court also granted DIRECTV summary
judgment on its declaratory relief claim that "neither Pegasus
nor the Class have a right of first refusal to have DIRECTV
provide them with any services after their Member Agreements
expire." The court held that "it is undisputed that the NRTC
members, including Pegasus and the Class, are not named third
party beneficiaries to the DBS Agreement between NRTC and
DIRECTV."
"While we have always maintained that there is no ambiguity, this
ruling makes clear that DIRECTV has no contractual obligation to
provide Pegasus or the Class with any services once their
contracts end," said Hall.
The court also limited Pegasus' and the Class' claims under the
unfair business practices statute, California Business &
Professions Code section 17200, and reaffirmed that damages are
not an available remedy under the statute. The court rejected
Pegasus' and the Class' attempt to obtain monetary relief under
that statute with respect to premium programming and advanced
services.
In addition, the court narrowed the NRTC's damage claims in the
litigation, holding that the NRTC cannot collect damages even if
it proves a breach by DIRECTV, unless it also establishes that
the breach was willful and intentional, and the product of a
decision by the Board of Directors or a senior officer empowered
to take such action. The court also rejected the NRTC's claims
under California Business & Professions Code section 17200 in
their entirety.
"We have acted in good faith, in accordance with our
interpretation of the contract," said Hall, "and we are confident
that the evidence at trial will demonstrate that we have not
breached our contract with the NRTC, intentionally or otherwise."
Trial on the issues remaining in the cases is still scheduled to
begin June 3, 2003, although the court has vacated all pretrial
dates.
The litigation began in 1999, and consists of a number of
separate lawsuits between DIRECTV, the NRTC, Pegasus, and a Class
of NRTC Members. The lawsuits involve disputes over the nature
and extent of rights stemming from a 1992 contract between
DIRECTV and the NRTC that permits the NRTC to distribute certain
services in specified, mostly rural, areas of the United States.
DIRECTV is the nation's leading digital multichannel television
service provider with more than 11.4 million customers. DIRECTV
and the Cyclone Design logo are registered trademarks of DIRECTV,
Inc., a unit of Hughes Electronics Corp. HUGHES is the world's
leading provider of digital television entertainment, broadband
services, satellite-based private business networks, and global
video and data broadcasting. The earnings of HUGHES, a unit of
General Motors Corporation, are used to calculate the earnings
attributable to the General Motors Class H common stock
(NYSE:GMH). For more information, visit http://www.directv.com
DIRECTV LA: Monthly Operating Report -- Ended April 30, 2003
------------------------------------------------------------
DirecTV Latin America, LLC
Unaudited Balance Sheet
As of April 30, 2003
ASSETS
Cash and Cash equivalents $5,833,795
Accounts receivable - unconsolidated companies 209,539,426
Accounts receivable - consolidated companies 455,736,205
Allowance for doubtful accounts (17,183,294)
---------------
Total Receivables, net 648,092,337
Property and Equipment 61,705,795
Intangible Assets 80,265,306
Prepaid expenses and other assets 13,368,038
---------------
TOTAL ASSETS $809,265,271
===============
LIABILITIES AND OWNERS' DEFICIT
Postpetition Liabilities:
Accounts Payable $14,847,971
Accrued Liabilities 21,720,788
Local Programming to be offset 18,392,049
Long-term debt 11,043,699
---------------
Total Postpetition Liabilities 66,004,507
Prepetition Liabilities:
Accounts Payable 144,972,468
Accrued Liabilities 15,692,446
Unsecured Notes 1,381,335,582
---------------
Total Prepetition Liabilities 1,542,000,496
Net Losses in consolidated subsidiaries 395,270,577
Owners' deficit (1,194,010,309)
---------------
Total Liabilities and Owners' Deficit $809,265,271
===============
DirecTV Latin America, LLC
Unaudited Statement of Operation
For the period from April 1 to 30, 2003
Net Revenues $28,260,442
Costs and Expenses:
Programming and other direct costs 22,340,258
Selling, general and admin expenses 1,914,891
Depreciation and amortization 4,067,898
---------------
Total costs and expenses 28,323,047
---------------
Operating Loss (62,605)
---------------
Other Income:
Interest Income 71,806
Interest expense (156,903)
Other income 500
---------------
Total other income (84,597)
---------------
Reorganization Items:
Asset Impairment 100,000
Chapter 11 retention programs 391,399
Chapter 11 professional fees 804,930
---------------
Total Reorganization items 1,296,329
Loss from subsidiaries (14,415,243)
Withholding taxes (3,820,111)
---------------
Net Loss ($19,678,885)
===============
DirecTV Latin America, LLC
Unaudited Statement of Cash Flow
For the period from April 1 to 30, 2003
Receipts:
Royalty Receipts $5,472,054
DIP Funding 11,000,000
Other Inflows 28,139
---------------
Total Receipts 16,500,192
Disbursements:
Capital Contributions 2,000,000
Programming 4,087,778
Satellite 9,180,036
Taxes (non-payroll) 250,474
Equipment and hardware 561,679
Wages, Payroll Taxes and Benefits 1,181,579
Communication Expenses 88,795
Equipment/Services/Other Rental 14,268
Freight and Warehouse 2,077
Marketing 44,478
Office Supplies/Equipment 3,997
Outsourcing 94,888
Professional Fees 15,267
Rent 92,352
Travel Expense 44,950
Health Insurance 114,636
Others 0
---------------
Total Disbursements 17,777,253
---------------
Net Cash Flow ($1,277,061)
===============
(DirecTV Latin America Bankruptcy News, Issue No. 7, Bankruptcy
Creditors' Service, Inc., 609-392-0900)
HAVANNA: To Launch Buyback Offer By June
----------------------------------------
Havanna SA, the famous company which produces the traditional
Argentinean type of biscuit, 'alfajores', is expected to launch
an offer to buy back US$31.5 million in debt from a group of
creditor banks before the end of the month, reports Infobae.
The banks include Deutsche Bank, Citi, Santander Central Hispano,
Creditanstalt and Sudameris.
A group of private investors and Mr. Juan Navarro, who runs Exxel
Group that bought Havannah last November in a transaction worth
US$85 million, are likely to offer to pay the debt between 55% -
60% of its nominal value, says Infobae.
Creditors had once decided to put in public sale (remate) Exxel's
shares. Originally, the sale was going to take place by the end
of last year. However, the sale didn't go through after 800 of
its employees presented a 'recurso de amparo' to the Justice.
Navarro and the private investors would be keeping 70% of
Havanna, while the other 30% would remain with Deutsche Bank.
The Company, located at the famous summer Argentinean city of Mar
del Plata and led by Mr. Victor Pereyra, registers annual income
of US$30 million.
Recently, various names have appeared as potential keepers of the
famous biscuit company. These companies are Coinvest, Pegasus
Venture Capital, Dolphin, Cabrales and a North American fund,
which has got as an assessor a local manager from the food
industry.
It's widely expected though that Mr. Navarro will ultimately
emerge as the owner.
CONTACT: HAVANNA S.A.
Brandsen 3298
Mar del Plata, Buenos Aires 7600
Argentina
Phone: (54223) 4748323
Fax: (54223) 4748327
THE EXXEL GROUP
Caledonian House, Jennet Street,
George Town, Grand Cayman, Cayman Islands.
Phone: (10 345 949 0050
Fax: (1) 345 949 8062
Av del Libertador 602 Piso 27 (1001)
Buenos Aires
Argentina
Phone: (54 11) 4815-2001
E-mail: info@exxel-group.com
Home Page: http://www.exxel-group.com/
JULIAN ALVAREZ: Court Orders "Concurso Preventivo"
--------------------------------------------------
Buenos Aires Court No. 15 ordered that Julian Alvarez Automotores
S.A. be put under "concurso preventivo". The motor maintenance
and repair company's case no. is 30602676419, according to a
report by Infoabae.
Deadline for verification of claims is July 11, 2003, while an
informative assembly will be held on April 4, 2004.
The assigned receiver is Mr. Adalberto Abel Corberelli. He may be
reached at Carabobo 237, Buenos Aires.
LAPA/DINAR: New Company To Absorb Former Employees
--------------------------------------------------
The new company created by the Estate in order to replace Lapa,
and totally dependent on Intercargo, will be absorbing Lapa's
former employees, as well as the former employees of Dinar,
resulting in a total of 1,100 workers.
According to a report by Infobae, the decision was made in order
to prevent competition between it and Aerolineas Argentinas or
with any other company within the sector. The new company would
be able to carry passengers, mail and other goods. The newly
organized firm is set to start out with 5 100-seater planes.
In other news, La Nacion reports that Lapa and Dinar employees
will ask the Government this week to cover unpaid salaries via
`unemployment secures.' The request though, is quite complicated.
According to La Nacion, the `secure' only pays if the company is
closed, and this is not the case for Lapa and Dinar, which have
not formally closed, but are not flying due to financial
problems.
With regards to Lapa employees, they will ask Lapa to pay the
other half of the unpaid salaries, a measure that will be
analyzed by the 'Sindicos' in charge of the 'Concurso' of the
company.
LYTTONWEST S.A.: Placed Under Receivership
------------------------------------------
Court No. 2 of Buenos Aires ruled that Lyttonwest S.A., with case
no. 33707598129, be put under "concurso preventivo". This means
that the travel company is under receivership.
Mr. Mauricio Mudric is assigned receiver for this case. Claims
must be verified before July 4, 2003. The Company's informational
hearing is set for February 02, 2004.
CONTACT: Mr. Mauricio Mudric, Receiver
Tucuman 893
Buenos Aires
TURISUR: Court Orders "Concurso Preventivo"
-------------------------------------------
The Commercial Court of First Instance No. 1 put Turisur S.R.L.
under "concurso preventivo", says local newspaper El Clarin.
Mr. Tito Jorge Gargaglione is assigned as receiver. He may be
reached at the following address:
Medrano 833
1er Piso,
Depot. `C'
Capital Federal
The deadline for verification of claims is June 27, 2003. The
informative assembly will be on April 09, 2004.
===========
B R A Z I L
===========
CANBRAS COMMUNICATIONS: Announces Successful Debt Refinancing
-------------------------------------------------------------
Canbras Communications Corp. (TSX:CBC) ("Canbras" or the
"Corporation") announced Tuesday that its subsidiary, Canbras
TVA, has entered into a new Reais-denominated credit facility
with a group of Brazil-based banks, the proceeds of which will be
used exclusively to refinance Canbras TVA's existing US$18.5
million Floating Rate Note facility.
Renato Ferreira, President and CEO of the Canbras Group, stated,
"Canbras is very pleased with the new credit facility, which is
designed to refinance the existing US-dollar denominated credit
facility. The new loan will enable Canbras TVA to repay in a
timely manner the US$9.25 million principal repayment due on May
14, 2003, and provides for a further loan in May 2004 for the
purpose of repaying the balance of the US-dollar denominated
facility due at that time. In addition, the new facility is based
on a business plan which has been agreed with Canbras' partner in
Canbras TVA, and which management believes will enable the
Canbras Group to continue in operation for 2003 and beyond."
The new Reais-denominated credit facility, which has a four-year
term, is subject to monthly amortization of principal and
interest as well as certain mandatory prepayment terms, and bears
interest at a floating rate equal to 110% of the Brazilian
Interbank Certificate of Deposit ("CDI") rate. Subject to
customary closing conditions, the funds will be disbursed in two
tranches, the first on May 14, 2003 in an amount sufficient to
repay the Series B Floating Rate Notes in the principal amount of
US$9.25 million plus accrued interest, and the second on May 14,
2004 in an amount sufficient to repay the Series C Floating Rate
Notes in the principal amount of US$9.25 million plus accrued
interest. The new credit facility and the existing Floating Rate
Note facility will rank pari passu and are secured by a first
priority pledge on substantially all assets of Canbras TVA. In
addition, within thirty days after signing of the new credit
facility, Canbras and its partner in Canbras TVA are required to
pledge to the lenders under both facilities their capital stock
of Canbras TVA.
Although Canbras believes that the new credit facility, together
with the related business plan agreed with Canbras' partner in
Canbras TVA, will enable the Canbras Group to continue in
operation for 2003 and beyond, the new credit facility contains
certain strict financial and other covenants and obligations
which, if not maintained or complied with, would result in an
event of default under both the new credit facility and the
existing credit facility. In addition, if the required pledge of
the capital stock of Canbras TVA is not timely completed, an
event of default would occur under both credit facilities. Upon
an event of default, the lenders under both facilities would be
entitled to demand immediate repayment of the entire amounts of
the indebtedness outstanding under such facilities. Canbras TVA's
ability to comply with all financial and other covenants and
obligations contained in its credit facilities is dependent upon
the results of its operations which can be significantly impacted
by economic, political, competitive and other conditions
prevailing in Brazil, and therefore, there can be no assurance
that Canbras TVA will be able to comply with all financial and
other covenants and obligations contained in its credit
facilities, or that the Canbras Group will be able to continue in
operation for 2003 and beyond.
General
Canbras, through the Canbras Group of companies, is a leading
broadband communications services provider in Brazil, offering
cable television, high speed Internet access and data
transmission services in Greater Sao Paulo and surrounding areas
and the State of Paran . Canbras Communications Corp.'s common
shares are listed on the Toronto Stock Exchange under the trading
symbol CBC. Visit our web site at www.canbras.ca.
ELETRONET: Judge Blocks Brazilian Govt.'s Auction Attempt
---------------------------------------------------------
The Brazilian government failed in its attempt to auction off
shares in AES Bandeirante Empreendimentos, a unit of U.S. energy
firm AES Corp.. Brazil had threatened to auction of shares in AES
Bandeirante to recover BRL548 million (US$181 million) in debt
held by its fiber optic cable unit Eletronet, which was declared
bankrupt last month.
However, according to a Reuters report, a Rio de Janeiro state
judge prevented the planned auction. AES Bandeirante is a company
created by AES to hold a 51% stake in Eletronet.
FIBERCORE: Nasdaq Delisting Hearing Seeks Further Information
-------------------------------------------------------------
FiberCore, Inc. (Nasdaq: FBCEE), a leading manufacturer and
global supplier of optical fiber and preform for the
telecommunications and data communications markets, announced
Tuesday that the hearing it requested to contest the delisting of
its securities from the Nasdaq Smallcap Market was held on May
22, 2003. The Hearing Panel has requested additional information
from the Company. It expects to make a determination as to
continued listing or delisting after receipt of that information.
The delisting action continues to be stayed pending the decision
of the panel.
If the Company should eventually be delisted, it would suffer
material adverse consequences as set forth in the press release
dated April 23, 2003 and no assurances can be given that such
delisting will not occur. If the Company should be delisted, the
Company will endeavor to facilitate the trading of its stock on
the OTC Bulletin Board, but no assurance can be given that such a
trading market will be available. FiberCore previously traded on
the OTC Bulletin Board before moving to the Nasdaq Smallcap
Market in November 2000.
FiberCore, Inc. develops, manufactures, and markets single-mode
and multimode optical fiber preforms and optical fiber for the
telecommunications and data communications markets. In addition
to its standard multimode and single-mode fiber, FiberCore also
offers various grades of fiber for use in laser-based systems up
to 10 gigabits/sec, to help guarantee high bandwidths and to suit
the needs of Feeder Loop (also known as Metropolitan Area
Network), Fiber-to-the Curb, Fiber-to-the Home and Fiber-to- the
Desk applications. Manufacturing facilities are presently located
in Jena, Germany and Campinas, Brazil.
CONTACT: Phone: 508-248-3900
FAX: 508-248-5588
E-Mail: sales@FiberCoreUSA.com
investor_relations@FiberCoreUSA.com
Web site: www.FiberCoreUSA.com
VARIG: Must Sign Letter of Commitment To Get BNDES Funds
--------------------------------------------------------
Struggling to stay afloat while awaiting a merger with its rival,
Brazil's Viacao Aerea Rio-Grandense SA, Latin America's largest
airline, asked Brazil's BNDES state- development bank for a
US$120-million credit. Varig needs the money to meet immediate
payments to suppliers such as BR Distribuidora, the Petrobr s
subsidiary, which provides aviation fuel.
BNDES has indicated that it is willing to provide the credit, but
on one condition: Varig must sign a letter of commitment making
the proposed merger with TAM Linhas Aereas SA irreversible.
Varig, however, refused to sign the letter until TAM's stake in
the merged carrier is negotiated.
Varig and TAM, Brazil's two biggest airlines, in February agreed
to a merger to cut costs following a surge in dollar-linked
expenses for fuel, parts and aircraft leases.
Just recently, the proposed merger took a step forward following
the replacement of the board of directors of the Ruben Berta
Foundation, the charity that controls Varig.
At an emergency meeting on Saturday, the 228 members of the
foundation's deliberative council, who are also Varig employees,
voted by a large majority to replace all seven members of the
board including Yutaka Imagawa, the board's president, who has
resisted the proposed merger and fought to keep Varig
independent.
The foundation's council voted on April 30 to accept the broad
terms of the merger. Under the proposal, Varig, which has not
made a profit since 1997 and has debts of about US$1.2 billion,
would receive just 5% of the new company, of which 2.7% would be
held by the Ruben Berta Foundation and the rest by minority
shareholders.
The remainder of the new company would be split between TAM,
Varig creditors, whose holdings are to be determined. TAM, which
is also losing money, has given broad support to the proposal,
but is resisting a clause, which would give exclusive seven year
contracts for maintenance and other services to Varig group
companies not included in the merger. Several such companies,
including VEM (maintenance), SATA (ground handling) and Varig Log
(cargo) would remain under the control of the Ruben Berta
Foundation.
CONTACT: VARIG (Viacao Aerea Rio-Grandense, S.A.)
Rua 18 de Novembro No. 800, Sao Joao
90240-040 Porto Alegre,
Rio Grande do Sul, Brazil
Phone: (51) 358-7039/7040
(51) 358-7010/7042
Fax: +55-51-358-7001
Home Page: www.varig.com.br/english/
Contacts:
Dorival Ramos Schultz, EVP Finance and CFO
E-mail: dorival.schultz@varig.com.br
Investor Relations:
Av. Almirante Silvio de Noronha,
n 365-Bloco "B" - s/458 / Centro
Rio de Janeiro, Brazil
TAM
Daniel Mandelli Martin, President
Buenos Aires
Tel. (54) (11) 4816-0001
URL: www.tam.com.br
=========
C H I L E
=========
ENERSIS: Receives 17 Bids For PLC Technology
--------------------------------------------
Enersis, which launched an open season Monday for its power line
communication (PLC) technology, received 17 bids from telecom
companies, among which were local telcos Entel, VTR and
Telefonica CTC Chile. The carriers have until June 27 to submit
their official offers.
Business News Americas recalls that Enersis subsidiary CAM has
been conducting a PLC pilot project in capital city Santiago
since March 2002, using power distribution grid of sister company
Chilectra to provide broadband Internet access and voice over IP
service.
US-based Ambient Corporation has provided CAM with couplers
necessary to convert a portion of the overhead power distribution
network into a broadband data pipeline.
The two companies will conduct a trial deployment in Santiago via
a 12kV circuit serving about 180 homes, small business and stores
that are already part of CAM's trial.
Enersis plans to start commercial operations of the service by
year-end. The Company has subsidiaries in Argentina, Colombia,
Peru, and Brazil, and serves more than 10 million customers. The
group is 65% owned by Spanish utility Endesa.
CONTACT: Enersis SA
Avenida Kennedy Vitacura No
5454
Santiago
Chile 1557
Phone: +56 2 353 4400
Fax: +56 2 378 4768
Home Page: http://www.enersis.cl
Contacts:
Engr Alfredo Llorente Legaz, Chairman
Engr Rafael Miranda Robredo, Vice Chairman
===================================
D O M I N I C A N R E P U B L I C
===================================
BANCO INTERCONTINENTAL: Assets to Be Auctioned Soon
---------------------------------------------------
Jos‚ Lois Malkum, Governor of the Dominican Republic Central
Bank, said that the properties of Banco Intercontinental
(Baninter), the country's second-largest bank currently mired in
a fraud scandal, will be sold off before they lose value in the
marketplace, DR1 Daily News relates.
Malcum made the statement after he left the Seventh Instructional
Court of the National District, where he faced judge Eduardo
S nchez Ortiz for nearly four hours.
Among the properties expected to go under the hammer are the
Listˇn Diario, Ultima Hora and Financiero newspapers, a radio
network of over 50 stations and several television channels.
Also up for grabs is an insurance company, a photography sales
and processing firm, a loan service, and a cable company.
Malkum was firm in saying that he would extract every possible
cent from each sale.
"May they cut my arm before I sign the sale of an asset of that
group, if they do not repay the last cent to close the gap we
have," he said.
The Central Bank governor quantified the gaping void left by the
Baninter fiasco at RD$55 billion last week in a press conference.
BANCO INTERCONTINENTAL: CB Orders Freeze On Exchange Rates
----------------------------------------------------------
The Dominican Republic Central Bank ordered local banks and
exchange houses to temporarily freeze the exchange rate of the
country's currency Tuesday to halt a slide in the peso's value,
the AP reports, citing industry executives.
The peso has lost 61% of its value since January 2002, when it
traded at 17 to the dollar. The currency devaluation, according
to economists, was caused in part by financial uncertainty
stemming from a 55 billion peso (US$2.2 billion) bank fraud
scandal that led to the recent collapse of Banco Intercontinental
SA.
In a meeting with Central Bank officials Monday, private-sector
officials agreed to freeze the exchange rate for the rest of the
week at 27.40 pesos to the dollar, said Freddy Ortiz, president
of the country's association of wire transfer businesses.
The government's official rate is 27.20 to the dollar.
Last week, authorities also ordered commercial banks to transfer
an additional 5% of the money deposited daily in their accounts
to the Central Bank in order to strengthen the currency.
The government hopes to restrict the circulation of 12.3 billion
pesos ($447 million) in the following weeks.
The government also has limited commercial banks and exchange
houses to trading a maximum of 5% of their reserves daily.
=============
J A M A I C A
=============
* Moody's Cuts Jamaica's Credit Rating To B1
--------------------------------------------
Moody's Investors Service downgraded Jamaica's credit rating due
to civil unrest and several natural disasters that have
heightened credit risk, reports Bloomberg.
The ratings agency lowered Jamaica's long-term foreign currency
rating to B1 from Ba3 or four levels below investment grade.
In February, Jamaica dropped plans to sell euro-denominated bonds
amid a lack of investor demand. According to Siobhan Manning,
chief emerging market strategist based for the Caboto New York
investment-banking unit of Italy's Banca Intesa SpA, lower credit
rating may increase borrowing costs and make it more difficult
for the country to tap international markets.
"This move confirms their financing constraints, including an
inability to tap capital markets and higher rates in secondary
markets," Manning said.
Moody's said Jamaica increased its already high public debt
burden as travel concerns following the Sept. 11, 2001 terrorist
attacks in the U.S. hurt tourism. The country has posted a budget
deficit since the 1996-97 fiscal year, according to the central
bank Web site.
"Moody's cautions that this response has increased the fiscal and
financial vulnerability of the country to future shocks," Moody's
said in a statement. The spread of severe acute respiratory
syndrome, or SARS, also is hurting tourism in Jamaica, Manning
said.
Jamaica has a total of US$4.2 billion in external debt and 366.2
billion Jamaican dollars (US$6.3 billion) in domestic debt,
according to the Ministry of Finance and Planning web site.
Moody's cut the local-currency denominated bond rating two levels
to Ba2 from Baa3.
===========
M E X I C O
===========
GRUPO IUSACELL: Pending Payment Concern Prompts S&P Downgrade
-------------------------------------------------------------
Standard & Poor's Ratings Services said Tuesday that it lowered
its long-term corporate credit rating on Mexican wireless service
provider Grupo Iusacell S.A. de C.V. to 'CC' from 'CCC+'. The
downgrade reflects continued concerns regarding Iusacell's
ability to arrange funding by June 1, 2003, to pay its
approximately $25 million coupon, and the expectation that the
public debt at Iusacell will be restructured under distressed
terms.
The senior secured rating on Grupo Iusacell Celular S.A. de C.V.
was lowered to 'CC' from 'CCC+', and the senior unsecured debt
rating was lowered to 'C' from 'CCC-'. All ratings were removed
from CreditWatch, where they had been placed on Nov. 5, 2002. The
outlook is negative. The company had $805 million of debt
outstanding at March 31, 2003.
The company indicated last November that it had hired a financial
advisor for the restructuring of its debt and up to now has not
given any indication of the terms. Iusacell exhausted its debt
service escrow account in December 2002, and its tight liquidity
position, limited financial flexibility, and uncertainty on its
ability to obtain further financing from its shareholders,
increases the likelihood of default. The company has received an
extension of its temporary amendment and waiver of certain
provisions and technical defaults under its $266 million secured
bank loan. "Upon failure to make its next coupon payment, or
completion of such a restructuring, the corporate credit rating,
senior unsecured debt rating, and senior secured debt rating
would be lowered to 'D'," said Standard & Poor's credit analyst
Patricia Calvo.
Standard & Poor's expects Iusacell's restructuring to be
distressed and that creditors will receive less than full
recovery given the company's negative cash flow and depressed
valuations for telecommunications assets.
Iusacell's financial profile has been adversely affected by weak
economic conditions and increased competition. Although the
company has implemented measures aimed at retaining and
attracting higher-end postpaid and prepaid customers that could
have a positive impact on its cash flow generation in the future,
its ability to service its overall debt is unlikely given
Iusacell's tight liquidity, comprised of about $5 million in cash
and limited credit line availability at the end of the first
quarter.
Analyst: Patricia Calvo
Mexico City
Phone: (52) 55-5279-2073
GRUPO TMM: Bourse Seeks Clarification on Televisa Report
--------------------------------------------------------
Mexico's stock market ordered embattled transportation company
Transportacion Maritima Mexicana (TMM) to confirm or deny a
report that a court order shielding it from creditors is invalid,
says Reuters. TMM, which is in default on US$177 million of
bonds, obtained a one-year grace period to block any legal
actions from creditors. However, Televisa, the country's leading
broadcaster, reported that the Mexico City judge, who granted the
grace period, had no power to make such an order.
Sources cited by Televisa said that only a federal judge could
make such a protection order because TMM had sought protection
under commercial laws and not via the equivalent of Chapter 11
bankruptcy protection, known as "concurso mercantil."
"This stock exchange requires the company to confirm or deny the
information divulged by third parties," the bourse said in a
statement.
The bourse suspended trading of TMM on Tuesday following the
Televisa report.
TMM has previously argued the complete opposite of Televisa's
sources, saying that a Mexico City court does have legal validity
over commercial business legislation. TMM believes it has valid
creditor protection from the holders of the bonds in default,
those holding its 10.25% senior notes due 2006 and those holding
its receivable securitization trust certificates.
CONTACT: Grupo TMM Company
Jacinto Marina
Phone: 011-525-55-629-8790
E-mail: jacinto.marina@tmm.com.mx
Brad Skinner
Phone: 011-525-55-629-8725
E-mail: brad.skinner@tmm.com.mx
Luis Calvillo
Phone: 011-525-55-629-8758
E-mail: luis.calvillo@tmm.com.mx
=================================
T R I N I D A D & T O B A G O
=================================
BWIA: Trouble Clouds Passengers Willingness to Book Flights
-----------------------------------------------------------
Passengers are having doubts whether to book with troubled
Trinidad & Tobago flag carrier BWIA after two of its aircrafts
were seized last week. The International Leasing Finance
Corporation seized the planes in an effort to persuade the
airline to pay its debts to the leasing company.
Deosaran Maharaj, president of the Travel Agents Association of
T&T said, "Travellers are expressing serious concerns regarding
bookings with BWIA."
He added that although other airlines were also financially
unstable, "the general impression is that BWIA is not being
managed properly."
Some of the passengers are worried that there might be no plane
to take them home, or to reach their destinations.
The airline industry's woes piled up since the September 11
attacks on the United States. Regional airlines are feeling the
crunch as the dreaded Severe Acute Respiratory Syndrome has
reduced the number of passengers.
Fortunately though, said one travel agent, those who have booked
in BWIA have not cancelled.
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)
BWIA: Management Accused of Misleading Government
-------------------------------------------------
Trinidad and Tobago Prime Minister Patrick Manning complains that
the country's flagship air carrier British West Indies Airways
(BWIA) has not been forthright with the government on its actual
financial conditions. The government official warns that the
government is "fast coming to the position where we believe that
enough is enough," the Antigua Sun reports.
Mr. Manning's comments came after creditors seized a second BWIA
aircraft last week. The ILFC seized the aircraft despite a US$5
million letter of comfort the government issued for the release
of a Boeing 747 also seized by the ILFC.
BWIA is in dire need of new funds as it faces the possibility of
ending up in the hands of its creditors. The airline has been
posting losses year after year, despite its many attempts at
cutting costs and restructuring its operations.
BWIA: Government Seeks CEO Aleong's Ouster
------------------------------------------
The government of Trinidad and Tobago is reportedly seeking for
the resignation of BWIA chief executive Conrad Aleong before it
provides the money needed to keep the airline alive, the Trinidad
Express reports, citing sources close to the matter.
Cash-strapped BWIA needs funds to keep it from ending in the
hands of its creditors. As of the moment, the airline has
received a US$5 million letter of comfort from the government to
help it recover two aircraft impounded by the International
Leasing Finance Corporation last Thursday.
The government has promised $116.8 million available for the
airline of certain conditions are met. In the meantime,
government officials are asking BWIA's directors to explain the
airline's financial situation at a meeting yesterday.
The government would also inform the airline's private sector
shareholders of its decisions in a separate meeting set for
yesterday.
BWIA: CEO Aleong Ready To Give Up Post To Save Airline
------------------------------------------------------
BWIA chief executive Conrad Aleong said he is prepared to leave
the airline if his staying in position hinders the airline's
chances of getting bailout funds from the government. Mr. Aleong
has sent a letter to BWIA's board at around 1 p.m. on Monday,
sources privy the matter revealed.
A report by the Trinidad Express said that Mr. Aleong may have to
pay his wages until January next year, when his contract ends.
However, the government has not made any official statements it
wants the management team to step down. Prime Minister Patrick
Manning said that the decision would be reached during a meeting
set for yesterday.
=================
V E N E Z U E L A
=================
PDVSA: Oil Production Back To Meeting Customer Commitments
----------------------------------------------------------
Venezuelan state oil company PDVSA is now meeting all of its
obligations to its clients, with production at 3.3 million
barrels a day (mb/d) of oil, according to PDVSA president Ali
Rodriguez. Mines and energy minister Rafael Ramirez is scheduled
to meet with the new members of the national assembly's permanent
commission on mines and energy Wednesday to discuss on the
current state of PDVSA and the oil industry as a whole, Business
News Americas reports, citing commission president Roger Rondon.
PDVSA has rehired 900 of the 18,000 workers sacked during the
December 2002-February 2003 strike, Rodriguez said. To cover the
shortage of specialists, the Company has hired retirees and
foreigners, he added.
Managers will not be rehired, as they cannot be forgiven for
having attacked the state by striking and sabotaging oil
installations, PDVSA's loss control and prevention head Gustavo
Perez Issa said in a TV interview.
* Moody's Ups Venezuela's Sovereign Ratings To Stable
-----------------------------------------------------
Moody's changed the outlook for Venezuela's sovereign ratings to
stable from developing, as a recovery in oil production lessens
the likelihood of a debt default, the ratings agency said in a
statement Tuesday.
Moody's also said it changed the outlook to stable for
Venezuela's foreign currency country ceiling, which stands at
Caa1 - seven notches below investment grade. It also revised the
outlook to stable for the local currency rating.
"The end of the strike, when combined with the initiation of
widespread capital controls, has meant that the central
government is in a stronger political position than was true
prior to the December strike," said Moody's.
***********
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.
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