/raid1/www/Hosts/bankrupt/TCRLA_Public/030710.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, July 10, 2003, Vol. 4, Issue 135
Headlines
A R G E N T I N A
BANCO SUQUIA/BISEL/ENTRE RIOS: Open Tender Offer Planned
CORREO ARGENTINO: Owner Reveals Plan To Sell Companies
CTG: Evaluadora Assigns `C' Rating To US$54 Million in Bonds
CTI MOVIL: Reaches Debt Accord With Bondholders
DECUNTO MATERIALES: Creditor's Request Leads to Bankruptcy
DIRECTV LA: Files First Motion To Extend Removal Period
DROGUERIA CADORNA: Voluntarily Seeks Bankruptcy
EDIFICIO LA NACION: Gets `CCC(arg)' From Fitch Argentina
GEMAR PLATIC: Declared Bankrupt by Court
IMAGEN SATELITAL: Strikes Debt Agreement With Noteholder
JOAPI: Court Declares Distributor Bankrupt
LAPA: Judge Closes Offices
MASTELLONE HERMANOS: Moody's Assigns Default Ratings To Bonds
METROGAS: Corporate Bonds Get Default Ratings From Moody's
RIBEIRO: US$25 Million of Bonds Rated 'C' by Moody's
SAMIR: Deemed Bankrupt By Local Court
TARJETA NARANJA: Moody's Assigns Default Rating To Bonds
TELEFONICA DE ARGENTINA: Announces Results of Exchange Offers
B E R M U D A
ALPHASTAR: Announces Adverse Decision In London Litigation
COMMERCIAL RISK: SCOR Signs Letter of Intent Concerning Sale
COMMERCIAL RISK: S&P Lowers Parent's Ratings
COMMERCIAL RISK: SCOR Regrets Standard & Poor's Decision
FOSTER WHEELER: S&P Cuts Corporate Credit Rating
FOSTER WHEELER: Issues Comments on S&P Downgrade
MRM: Fitch Withdraws Debt Ratings
C O L O M B I A
* COLOMBIA: To Sell Bonds To Buy Back Debt
D O M I N I C A N R E P U B L I C
BANINTER: Scotiabank Signs Agreement To Buy Assets
E C U A D O R
PACIFICTEL: Conatel Expects To Make Intervention Decision Soon
J A M A I C A
C&WJ: Offers Caribtel Reconnection For Dropping Lawsuit
M E X I C O
BUFETE INDUSTRIAL: Liquidates Labor Contracts
COPAMEX: IFC Approves $75M Loan To Aid Debt Refinancing
GRUPO IUSACELL: Movil Access To Name New General Director
GRUPO IUSACELL: Gustavo Guzman to Be Appointed CEO
TV AZTECA: Analyst Reiterates "Buy" Recommendation on Shares
P E R U
ESSALUD: Manager Moves To Assuage Insurers' Doubts
T R I N I D A D & T O B A G O
BWIA: Finally Submits 2002 Financial Report To SEC
U R U G U A Y
BANCO DE CREDITO: Savers To Meet CenBank Chief on Reimbursement
V E N E Z U E L A
PETROBRAS ENERGIA: Loan Agreement Subscribed With The IFC
- - - - - - - -
=================
A R G E N T I N A
=================
BANCO SUQUIA/BISEL/ENTRE RIOS: Open Tender Offer Planned
--------------------------------------------------------
Argentina's government plans to set up an open tender process to
sell off Banco Suquia S.A, Nuevo Banco Bisel and Nuevo Banco de
Entre Rios S.A., reports Dow Jones.
The sales will be overseen by the central bank, the Economy
Ministry, Banco de la Nacion - which currently runs the three
banks - and a trust fund, known as FFRE.
The three small provincial banks went into receivership over a
year ago when its French parent, Credit Agricole, quit Argentina
amid a sharp financial crisis.
The government gave bidders until Aug. 11 to make an offer for
the banks. Offers will be opened on that same day. The government
hopes to wrap up the sales and hand over control of the banks in
late October.
The offer is open to any bidder that has registered on a list of
institutions interested in participating in Argentina's financial
system. The bidder can be local or foreign.
Preference will be given to institutions that offer a higher
price and which don't request assistance from the central bank.
The bidder must have assets of at least ARS50 million to buy
Suquia and Bisel and ARS30 million for the Entre Rios bank. The
bank will have to put down ARS2 million for the first two banks
and ARS1.2 million for Entre Rios.
CORREO ARGENTINO: Owner Reveals Plan To Sell Companies
------------------------------------------------------
Franco Macri, owner of one of the major family holdings in
Argentina, announced a plan to sell all his companies in 2004 and
retire. The businessman manages a holding firm that owns fifteen
companies in Argentina, including postal concessionaire Correo
Argentino and construction firm Sideco, plus seven in Brazil, and
bills some Ps. 2 billion a year.
Macri said that if one of his children would like to keep some of
the companies, they could buy them. He has five children:
Mauricio, who has abandoned the businesses and is running for the
government of Buenos Aires city; Gianfranco, who handles the
operations of the holding in Argentina; Mariano, in charge of the
operations in Brazil; and daughters Sandra and Florencia.
The businessman said he would sell his businesses in Brazil
first, so as to settle debts and balance out his companies in
Argentina.
Macri named Correo Argentino, currently carrying out a debt
restructuring proceeding and experiencing conflicts with the
state, as one of the firms he is willing to sell. Correo owes the
state some ARS450 million in unpaid fees and at the same claims
ARS1 billion due to alleged contract breaches made by the state.
Macri also said he was willing to create a mixed company with him
and the state as shareholders.
CTG: Evaluadora Assigns `C' Rating To US$54 Million in Bonds
------------------------------------------------------------
Local ratings agency Evaluadora Latinoamericana S.A. Calificadora
de Reisgo assigned junk ratings to US$54 million of corporate
bonds issued by Central Termica Guemes (CTG).
Evaluadora assigned a `C' rating to CTG bonds, which the National
Securities Commission of Argentina describes as "obligaciones
negociables simples". The bonds, which come due on September 25,
2010, were classified under "Simple Issue."
The rating, based on the Company's finances as of the end of
March this year, denotes that the issue has a high risk of
nonpayment.
CTI MOVIL: Reaches Debt Accord With Bondholders
-----------------------------------------------
Through an out of court agreement (APE), Argentine mobile
telephony operator CTI Movil, controlled by Coinvest, has agreed
with 53% of the holders of US$250 million in bonds to apply an
87% cut on the face value of the notes. The accord involves the
payment of US$0.13125 per US$1 principal amount, plus an 11.5%
annual interest from June 30, 2003, until the payment date, but
with a maximum limit of US$0.141 per US$1 of nominal value. By
implementing this reduction, CTI's debt would fall from the
current US$1.05 billion to US$936 million.
DECUNTO MATERIALES: Creditor's Request Leads to Bankruptcy
----------------------------------------------------------
Decunto Materiales S.R.L. is now in the hands of receiver Gustavo
Manay following the Court's declaration of its bankruptcy. The
bankruptcy declaration follows a request filed by Mr. Pedro
Gavilan, to whom the Company owes US$5,000. The deadline for
verification of credit claims is September 16 this year.
CONTACT: Decunto Materiales S.R.L.
Fitz Roy 201
Buenos Aires
Mr. Gustavo Manay
10th Floor 1006
Montevideo Street No. 666
Buenos Aires
DIRECTV LA: Files First Motion To Extend Removal Period
-------------------------------------------------------
DirecTV may be party to actions pending in courts of various
jurisdictions, Joel A. Waite, Esq., at Young Conaway Stargatt &
Taylor LLP, in Wilmington, Delaware, says. During the initial
stage of this case, DirecTV has been focused on various matters
including finalizing the DIP Financing and meeting with and
providing information to the Committee. Thus, DirecTV did not
have the opportunity to fully investigate and determine whether
there are any pending matters that should be removed.
Rule 9027 of the Federal Rules of Bankruptcy Procedure and
Section 1452 of the Judiciary Procedures Code govern the removal
of pending civil actions. Specifically, Section 1452(a)
provides:
"A party may remove any claim or cause of action in a civil
action other than a proceeding before the United States Tax
Court or a civil action by a governmental unit to enforce
Such governmental unit's police or regulatory power, to the
district court for the district where such civil action is
pending, if such district court has jurisdiction of such
claim or cause of action under Section 1334 of this title."
Bankruptcy Rule 9027(a)(2) further provides, in pertinent part:
"If the claim or cause of action in a civil action is pending
when a case under the [Bankruptcy] Code is commenced, a
notice of removal may be filed in the bankruptcy court only
within the longest of (A) 90 days after the order for relief
in the case under the Code, (B) 30 days after entry of an
order terminating a stay, if the claim or cause of action in
a civil action has been stayed, under Section 362 of the
code, or (C) 30 days after a trustee qualifies in a chapter
11 reorganization case but not later than 180 days after the
order for relief."
By this motion, DirecTV asks the Court to extend the time for it
to file notices of removal of related proceedings under
Bankruptcy Rule 9027(a) to and including the latest to occur of:
(a) September 15, 2003; or
(b) 30 days after the order terminating the automatic stay
with respect to the particular actions sought to be
removed.
Mr. Waite asserts that the requested extension should be granted
because:
(a) it will afford DirecTV an additional opportunity to make
fully informed decisions concerning removal of any
pending actions and will assure that it does not forfeit
valuable rights under Section 1542 of the Judiciary
Procedures Code; and
(b) the rights of the parties-in-interests will not be
prejudiced by the extension for they may seek to remand a
pending action to the state court.
The Court will convene a hearing on August 6, 2003 to consider
the Debtor's request. By application of Del.Bankr.LR 9006-2, the
current removal period is automatically extended through the
conclusion of that hearing. (DirecTV Latin America Bankruptcy
News, Issue No. 9; Bankruptcy Creditors' Service, Inc., 609/392-
0900)
DROGUERIA CADORNA: Voluntarily Seeks Bankruptcy
-----------------------------------------------
Argentine company Drogueria Cadorna S.A. voluntarily filed for
its own bankruptcy, according to a local source. The Company
ceased making debt payments since June 27 this year.
The case is at Buenos Aires Court No. 17, under Dr. Bavastro
Modet. Dr. Vanoli of Secretary No. 34 assists the Court on the
matter. The source did not indicate whether a receiver has been
assigned to the case.
CONTACT: Drogueria Cadorna S.A.
Tomas A. Le Breton 5873
Buenos Aires
EDIFICIO LA NACION: Gets `CCC(arg)' From Fitch Argentina
--------------------------------------------------------
A total of US$21.784 million worth of participation certificates
from financial trust Edificio La Nacion was rated `CCC(arg)' by
Fitch Argentina Calificadora de Riesgo S.A. The ratings agency
said that the given rating denotes an extremely weak credit risk
relative to other issues in Argentina.
Some US$18 million worth certificates, described as "Certificados
de participacion subordinados", and US$3.784 million of
"Certificados de Participacion Subordinados Clase 2", both with
undisclosed maturity date, received the junk ratings, according
to the National Securities Commission of Argentina.
GEMAR PLATIC: Declared Bankrupt by Court
----------------------------------------
Court No. 5 of Buenos Aires declared Gemar Platic S.A. bankrupt,
granting a request filed by the Company's creditor, Obra Social
del Personal de la industria del Plastico. The Company owes Obra
about $39,871.
The receiver is Ms. Flora Marcela Pasos. Creditors are advised to
have their claims verified by September 5 this year.
CONTACT: Gemar Platic S.A.
Crisostomo Alvarez St. No. 3758
Buenos Aires
Ms. Flora Marcela Pasos
1st Floor
Montevideo 527
Buenos Aires
IMAGEN SATELITAL: Strikes Debt Agreement With Noteholder
--------------------------------------------------------
Imagen Satelital (IS), a unit of Claxson Interactive Group,
reached a debt restructuring and bond exchange agreement with
Orlando Salvestrini, president of the payment collection firm
Pago Facil. IS will exchange the US$300,000 notes in hands of
Salvestrini, which are part of an US$80 million issue due 2005,
for a payment in cash and a debt recognition organized by Claxson
Interactive Group for US$210,000.
JOAPI: Court Declares Distributor Bankrupt
------------------------------------------
A request for the bankruptcy of fruit and vegetable distributor
Joapi S.A., filed by Buenos Aires System S.R.L. was granted by
Court No. 24 of Buenos Aires, according to a local source. The
Company reportedly owes some $12,600 to the S.R.L.
The Court, under Dr. Ballerini, assigned Ms. Lydia Podliszwski as
receiver. Credit claims must be verified by August 26.
CONTACT: Joapi S.A.
10th Floor C
Viamonte St. No. 1526
Buenos Aires
Ms. Lydia Podliszwski
8h Floor 1
Rivadavia Ave. No, 3356
Buenos Aires
LAPA: Judge Closes Offices
--------------------------
Employees of Argentine airline LAPA said Friday that Judge
Margarita Braga, who is in charge of the Company's formal
restructuring proceeding, closed the offices of the firm and
prevented them from working.
In addition, the airline is currently without an administrator,
since the last one named by court remained only one day with the
Company, while the former lasted for four days.
Meanwhile, the decree for the creation of a state-owned airline
that would replace LAPA and hire its staff is yet to come out.
MASTELLONE HERMANOS: Moody's Assigns Default Ratings To Bonds
-------------------------------------------------------------
Corporate bonds issued by Mastellone Hermanos S.A. received
default ratings (`D') from Moody's Latin America Calificadora de
Reisgo S.A., according to the National Securities Commission of
Argentina. The ratings given were based on the Company's
financial situation as of the end of March 2003.
The affected bonds are US$150 million worth of "Programa de
Obligaciones Negociables autorizado por AGE de fechas y 23.6.99"
and US$225 million worth of "Obligaciones Negociables,
autorizadas por AGE de fecha 28.8.97". The latter set matures on
April 1, 2008.
METROGAS: Corporate Bonds Get Default Ratings From Moody's
----------------------------------------------------------
Moody's Latin America Calificadora de Reisgo S.A. assigned 'D'
ratings to corporate bonds issued by Metrogas S.A. last week,
based on the Company's financial position as of March 31, 2003.
According to the National Securities Commission of Argentina, the
rating applies to US$600 million worth of "obligaciones
negociables simples", classified under "program."
The rating also applies to "Serie A por U$S 100.000.000 dentro
del Programa Global de U$S 600 millones", worth US$100 million.
These bonds, under "series and/or class", matured in April this
year.
Also under "series and/or class", bonds called "serie B por euros
110 millones", which matured in September last year, and is worth
EUR110 million, received the default ratings. Another US$130
million of "Serie C por U$S 130.000.000 dentro del Programa
Global de U$S 600 millones" received the ratings. These mature on
May 7 next year.
RIBEIRO: US$25 Million of Bonds Rated 'C' by Moody's
----------------------------------------------------
A total of US$25 million of corporate bonds issued by Ribeiro
S.A.C.I.F.A. e I., which the National Securities Commision of
Argentina described as "Obligacione Negociable Simple", were
rated 'C' by Moody's Latin America Calificadora de Reisgo S.A.
The rating, based on the Company's March 2003 financials, denotes
the issue's high risk of nonpayment.
SAMIR: Deemed Bankrupt By Local Court
-------------------------------------
Court No. 24 of Buenos Aires, which is under Dr. Ballerini,
granted a request filed by Graciela Gramajo to declare the
bankruptcy of local textile company Samir S.A. The request was
made due to unpaid debts amounting to $67,824. The Court assigned
Mr. Angel Pozzi as receiver, who will verify credit claims until
September 8.
CONTACT: Samir S.A.
2nd Floor
Moreno St. No. 1389
Buenos Aires
Angel Pozzi
1st Floor C
Combate de loz Pozos St. No. 129
Buenos Aires
TARJETA NARANJA: Moody's Assigns Default Rating To Bonds
--------------------------------------------------------
Tarjeta Naranja S.A.'s corporate bonds, which the National
Securities Commission of Argentina described as "Programa de
Obligaciones Negociables de Corto y Mediano Plazo", were assigned
a `D' rating by Moody's Latin America Calificafora de Riesgo S.A.
last week. The default rating applies to US$200 million of the
bonds classified under "program". The bonds' maturity date,
however, was not indicated.
TELEFONICA DE ARGENTINA: Announces Results of Exchange Offers
-------------------------------------------------------------
Telefonica de Argentina S.A. ("TASA") announced Tuesday the
partial results of its offers to exchange two series of existing
TASA notes (the 11.875% TASA Notes due 2004 (the "TASA 2004
Notes") and the 9.125% TASA Notes due 2008 (the "TASA 2008
Notes")) for two new series of TASA notes plus a cash payment
(the "TASA Exchange Offers"), and its offers to exchange two
series of existing notes issued by TASA's holding company,
Compania Internacional de Telecomunicaciones S.A. ("Cointel"),
(the 8.85% Cointel Series A Notes due 2004 (the "Cointel Series A
Notes") and the 10.375% Cointel Series B Notes due 2004 (the
"Cointel Series B Notes")) for two new series of TASA notes plus
a cash payment (the "Cointel Exchange Offers" and together with
the TASA Exchange Offers, the "Exchange Offers").
The Company has received, as of 5:00 p.m., New York City time, on
July 7, 2003, the following percentages tendered of existing
notes:
-- U.S.$171 million, representing 57% of aggregate principal
amount of the U.S.$300 million TASA 2004 Notes,
-- U.S.$213 million, representing 58% of aggregate principal
amount of the U.S.$368.5 million TASA 2008 Notes,
-- U.S.$159 million, representing 71% of aggregate principal
amount of the U.S.$225 million Cointel Series A Notes, and
-- Ps.31 million, representing 18% of aggregate principal amount
of the Ps.175 million Cointel Series B Notes.
On July 4, 2003, a noteholders' meeting of the Cointel Series A
Notes approved the proposed amendments to the terms and
conditions of those notes in order to delete substantially all of
the restrictive covenants and events of default, subject to
consummation of such exchange offer.
Because quorum was not achieved for the first call noteholders'
meetings, the Company announced that for the TASA 2004 Notes, the
TASA 2008 Notes and the Cointel Series B Notes, second call
noteholders' meetings for the TASA 2004 Notes, the TASA 2008
Notes and the Cointel Series B Notes will be held on July 22,
2003. The Company and Cointel are publishing notice of the call
for such second call noteholders' meetings as required by law.
The quorum requirement for each second call noteholders' meeting
is 30% of the outstanding principal amount of such series of
notes. Given that the Company has received to date more than 30%
of the TASA 2004 Notes and TASA 2008 Notes in the TASA Exchange
Offers, the Company has a sufficient number of proxies to conduct
the second call noteholders' meetings for such existing notes on
July 22, 2003.
The second call noteholders' meeting for the TASA 2004 Notes will
be held at 11:00 a.m., Buenos Aires time, on July 22, 2003, the
second call noteholders' meeting for the TASA 2008 Notes will be
held at 11:30 a.m., Buenos Aires time, on July 22, 2003 and the
second call noteholders' meeting for the Cointel Series B Notes
will be held at 12:30 p.m., Buenos Aires time, on July 22, 2003.
The location of each such noteholders' meeting will be the
Company's offices located at Avenida Ingeniero Huergo 723, 21st
Floor, City of Buenos Aires, Argentina.
As a result of having to conduct such second call noteholders'
meetings, the Company also announced that it has extended the
expiration date of each of the Exchange Offers to 11:59 p.m., New
York City time, on July 22, 2003.
Furthermore, the Company announced that the proxy delivery
deadline expired at 5:00 p.m., New York City time, on July 1,
2003. As a result, holders of existing notes that participate in
the exchange offers after July 1, 2003 and before the expiration
date of the exchange offers at 11:59 p.m., New York City time, on
July 22, 2003, (unless extended) will receive the following:
-- For each U.S.$1,000 principal amount of TASA 2004 Notes,
participating holders will receive U.S.$925 principal amount of
new TASA 11.875% Notes due 2007 and U.S.$75 in cash.
-- For each U.S.$1,000 principal amount of TASA 2008 Notes,
participating holders will receive U.S.$950 principal amount of
new TASA 9.125% Notes due 2010 and U.S.$50 in cash.
-- For each U.S.$1,000 principal amount of Cointel Series A
Notes, participating holders will receive U.S.$925 principal
amount of new TASA 8.85% Notes due 2011 and U.S.$75 in cash.
-- For each Ps.1,000 principal amount of Cointel Series B Notes,
participating holders will receive either:
-- the U.S. dollar equivalent of Ps.925 principal amount of new
TASA 8.85% Notes due 2011, calculated using the forward exchange
rate described in the prospectus and proxy solicitation dated
June 17, 2003 relating to the Cointel exchange offers, and Ps.75
in cash, or
-- Ps.925 principal amount of new TASA peso-denominated
Conversion Notes due 2011 and Ps.75 in cash.
The Company has received approval from the New York Stock
Exchange, subject to notice of issuance, for the listing of its
new 11.875% Notes due 2007, new 9.125% Notes due 2010 and new
8.85% Notes due 2011. With respect to the TASA Exchange Offers,
the Company has waived the general condition to such Exchange
Offers that its new 11.875% Notes due 2007 and new 9.125% Notes
due 2010 be approved for listing on the Luxembourg Stock Exchange
prior to the expiration date of the TASA Exchange Offers. The
Company intends to continue seeking such listing approval through
the expiration date of the TASA Exchange Offers; however, the
Company may accept tenders of the TASA 2004 Notes and TASA 2008
Notes without having obtained such listing approval from the
Luxembourg Stock Exchange.
Also, TASA announced that it has obtained the required
authorization from the Argentine Central Bank to access the
foreign exchange market in order to make the cash and accrued
interest payments contemplated in the Exchange Offers.
All other terms of the Exchange Offers remain in effect as set
forth in the relevant prospectus and proxy solicitation, each
dated June 17, 2003, included in TASA's registration statement
filed with the Securities and Exchange Commission on June 17,
2003.
Copies of the relevant prospectus and proxy solicitation may be
obtained by calling D.F. King & Co., Inc., at +1-800-549-6697 or
+1-212-269-5550, or by mail at 48 Wall Street, 22nd Floor, New
York, NY 10005, Attention: Thomas A. Long.
Morgan Stanley & Co., Incorporated (including its affiliates) is
acting as dealer manager for the exchange offers. BBVA Banco
Frances S.A. (Reconquista 199, (C1003ABE) Buenos Aires,
Argentina; Attention: Santiago Barros Moss, Tel. 5411 4346-4311)
is acting as solicitation agent in Argentina.
CONTACT: Morgan Stanley, New York
Simon Morgan
Phone: 212/761-2219
Heather Hammond
Phone: 212/761-1893
=============
B E R M U D A
=============
ALPHASTAR: Announces Adverse Decision In London Litigation
----------------------------------------------------------
AlphaStar Insurance Group Limited (Nasdaq: ASIGE) reported that
the Commercial Court in London Tuesday handed down a decision in
the litigation brought by Sphere Insurance Limited ("Sphere
Drake"), finding that two of the Company's London subsidiaries,
and two of their former officers, had participated in a scheme to
defraud Sphere Drake.
Sphere Drake's underwriting manager, Euro International
Underwriting Limited, and two of its principals also were found
to have participated in the scheme. The writ in the case, which
was filed in February 2000, had alleged that Sphere Drake was
defrauded by the defendants into writing millions of dollars of
unprofitable excess-of-loss reinsurance covering workers
compensation risks.
Following a year-long trial which ended in December, 2002, Mr.
Justice Thomas of London's Commercial Court, handed down Tuesday
a 1,600 page opinion which, in substance, accepted those
allegations, finding that the two subsidiaries, through the two
former officers, dishonestly assisted Euro International in its
breach of its duties to Sphere Drake by causing Euro
International to underwrite business that was known at the time
of placement to be loss-making on a gross basis; and that the two
former officers knew that Sphere Drake did not know of the nature
of the business that was being underwritten in their name.
Stephen A. Crane, the Company's Chairman, President and Chief
Executive Officer, stated "Needless to say, we are very
disappointed with the Judge's decision, which obviously has
serious negative ramifications for our Company. The Company is
currently evaluating the decision and attempting to determine the
effect of this development on the Company's future operations."
The Company also indicated that it was considering the
possibility of an appeal, but needed more time to review the
Court's ruling before reaching a final decision.
AlphaStar Insurance Group Limited is a Bermuda-domiciled holding
company with subsidiaries in the United States and United
Kingdom. Among its subsidiaries are a property-casualty insurance
company, managing general agencies, and reinsurance
intermediaries.
COMMERCIAL RISK: SCOR Signs Letter of Intent Concerning Sale
------------------------------------------------------------
SCOR Group signed a letter of intent concerning the sale of
Commercial Risks Partners (CRP) on March 28, 2003. Bermuda based,
CRP was underwriting alternative risk transfer reinsurance.
The letter of intent granted to the potential buyer an exclusive
right of preemption until June 30, 2003. By common agreement, the
deadline has been extended until July 31, 2003.
COMMERCIAL RISK: S&P Lowers Parent's Ratings
--------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
counterparty credit and insurer financial strength ratings on
France-based reinsurer SCOR and subsidiaries to 'BBB+' from 'A-'.
At the same time, Standard & Poor's revised the implications on
the long-term ratings, which had been placed on CreditWatch on
June 17, 2003, to developing from negative. In addition, the
short-term 'A-2' counterparty credit and commercial paper ratings
on SCOR were affirmed.
"The downgrade reflects SCOR's disappointing absolute and
relative first-quarter 2003 results, indications of a weakened
although still strong business position, and the potential
Standard & Poor's sees for reported capital to be materially
affected by further reserve strengthening," said Standard &
Poor's credit analyst Marcus Rivaldi. This potential
strengthening relates particularly to SCOR's credit derivatives
portfolio and its CRP subgroup (comprising Commercial Risk
Reinsurance Co. Ltd. and Commercial Risk Re-Insurance Co.).
The CreditWatch revision reflects the possibility of a material
improvement in SCOR's balance sheet before year-end 2003.
"Should the balance sheet improvement occur, Standard & Poor's
may raise the counterparty credit and insurer financial strength
ratings on SCOR and related entities into the 'A' (strong)
range," said Mr. Rivaldi. "In the event that the improvement does
not materialize, Standard & Poor's may lower the ratings on SCOR
to 'BBB' (good)."
CONTACT: STANDARD & POOR'S
Marcus Rivaldi, London
Phone: (44) 20-7847-7056
Email: marcus_rivaldi@standardandpoors.com
David Anthony, London
Phone: (44) 20-7847-7010
Email: david_anthony@standardandpoors.com
Yann Le Pallec, Paris
Phone: (33) 1-4420-6725
Email: yann_lepallec@standardandpoors.com
InsuranceInteractive_Europe@standardandpoors.com
COMMERCIAL RISK: SCOR Regrets Standard & Poor's Decision
--------------------------------------------------------
SCOR regrets the decision of Standard & Poor's to downgrade the
Group. This decision does not reflect the improvement in the
Group's financial condition following reserves booked and
recapitalization at the end of 2002. Nor does it reflect the
impact of the recovery measures introduced since that time. The
"Back on Track" plan adopted in November 2002 is being
implemented rigorously and is starting to bear fruit.
Regarding CRP, it was decided that this subsidiary would cease
writing all further business with effect from January 2003.
Commutations are now in progress, as are talks with a potential
buyer.
Concerning the credit derivatives portfolio, SCOR wishes to make
clear that no new business has been written in this specialty
since October 2001, and that reserving policy on this portfolio
is closely linked to observed loss trends.
SCOR intends to maintain its prudent underwriting policy and to
strengthen its balance sheet in order to ensure optimum security
for its customers. The decision to spin-off its life reinsurance
activities to a newly-created subsidiary will help to further
this policy.
CONTACT: SCOR
Delphine Deleval, +33 (0)1 46 98 71 64
Valentine Semet, +33 (0)1 46 98 72 32
FOSTER WHEELER: S&P Cuts Corporate Credit Rating
------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Foster Wheeler Ltd. FWC.N to 'CCC-' from 'B' and
removed the rating from CreditWatch, where it was placed on May
30, 2003. Other ratings were also lowered. At March 28, 2003,
Perryville, N.J.-based Foster Wheeler had approximately $1.2
billion of debt securities outstanding. The outlook is negative.
"We expect that Foster Wheeler's modest domestic liquidity will
further diminish in the next few quarters because construction
activities will use working capital at a faster pace than new
awards will provide cash sources," said Standard & Poor's credit
analyst Joel Levington. "Diminishing liquidity, within the
context of an onerous debt burden, weak end-market fundamentals,
virtually no access to the capital markets, rising asbestos
claims, and a significantly underfunded pension may force the
company to pursue a financial restructuring or file for
bankruptcy protection."
Foster Wheeler's current management has taken several steps to
implement more rigorous controls, has reduced overhead costs, and
has written down more than $1 billion of assets in the past five
quarters. Still, changing a global corporate culture amid weak
market fundamentals has proven quite challenging.
The company's backlog is not expected to grow in the next few
quarters, the negative working capital position on the projects
that have created these liabilities will start to reverse as
construction activities begin, which will further deplete Foster
Wheeler's cash balances. With the majority of the firm's cash
located oversees, only a portion of which can be easily
repatriated, and a meaningful amount of construction-related
liabilities tied to domestic projects, the company may soon find
itself in a liquidity crunch.
Ratings could be lowered shortly should the company pursue a
financial restructuring to help alleviate its distressed
financial position.
FOSTER WHEELER: Issues Comments on S&P Downgrade
------------------------------------------------
Foster Wheeler Ltd. (NYSE: FWC) announced that Tuesday's change
of Standard & Poor's (S&P) rating on the company's corporate
credit to 'CCC-' from 'B' does not trigger any defaults under
Foster Wheeler's existing credit facility and the company will
continue to conduct its business as usual.
"We remain focused on managing liquidity, reducing debt and
improving the company's balance sheet," said Ken Hiltz, Chief
Financial Officer of Foster Wheeler. "We are well aware of the
issues cited by S&P and are working aggressively to complete our
restructuring in early 2004, if not sooner. We believe that our
current liquidity is adequate and while liquidity will become
more challenging in the fourth quarter, we have plans in place
and believe we are taking appropriate steps to deal with our
liquidity issues going forward."
Mr. Hiltz added, "Contrary to the information contained in the
S&P release, Foster Wheeler continues to have access to its
domestic revolving credit facility. Additionally, our foreign
business units are stand-alone operations with access to their
own credit facilities. They have adequate liquidity and capital
to continue to operate without support from the parent company or
our operations in North America. During the past 18 months, we
have made significant progress in restructuring the company's
operations. We still have work to do and believe we are taking
the appropriate actions to position Foster Wheeler for a return
to profitable growth and financial health."
MRM: Fitch Withdraws Debt Ratings
---------------------------------
Fitch Ratings has withdrawn Mutual Risk Management Ltd.'s (MRM)
long-term issuer rating and MRM's convertible exchangeable
subordinated debt rating.
The subordinated debt securities were restructured in a
distressed debt exchange. Fitch previously downgraded the ratings
to 'D' on May 5, 2003 following creditor and judicial approval of
MRM's plan to restructure its debt. Fitch had indicated at that
time that it intended to withdraw the ratings and no longer
follow the company.
The following ratings are affected:
Entity/Issue/Type Action Rating/Watch
Mutual Risk Management Ltd. -- Long-term issuer Withdraw 'D'; --
Conv. Exch. Sub. Debt Withdraw 'D'.
CONTACT: Donald F. Thorpe CPA, CFA, +1-312-606-2353
James B. Auden CFA, +1-312-368-3146, Chicago
MEDIA RELATIONS: James Jockle +1-212-908-0547, New York
===============
C O L O M B I A
===============
* COLOMBIA: To Sell Bonds To Buy Back Debt
------------------------------------------
Colombia offered to sell as much as US$160 million of six-year
bonds in New York Tuesday and hired Credit Suisse First Boston to
manage the sale.
According to Bloomberg, Colombia planned to sell the floating-
rate notes at a yield of 3.85 percentage points above the three-
month London interbank offered rate, which paid 1.11% Tuesday.
The government planned to use the proceeds to buy back as much as
US$300 million of its floating rate notes due 2005 in a tender
that was due to close Tuesday to lower debt servicing costs.
Last week Colombia sold US$135 million of 30-year notes to raise
cash to buy back the 2005 notes.
Holders of the 2005 notes had until Tuesday to sell the
securities, which pay an interest rate of 4.75 percentage points
above the London interbank offered rate. The government said it
would pay a price equal to $1,051.25, plus unpaid interest, for
each $1,000 in principal of the 2005 notes.
===================================
D O M I N I C A N R E P U B L I C
===================================
BANINTER: Scotiabank Signs Agreement To Buy Assets
--------------------------------------------------
Scotiabank announced Tuesday that it has signed a Memorandum of
Understanding with financial authorities that will enable it to
more than double its presence in the Dominican Republic. The
transactions covered by the agreement include Scotiabank
acquiring up to 35 branches and hiring up to 460 employees of the
dissolved Banco Intercontinental (Baninter) as well as purchasing
select financial assets including credit card, personal and
commercial loans which meet quality and other loan criteria
acceptable to Scotiabank.
"As an international bank with more than 170 years experience, we
are very pleased to have reached this agreement in the Dominican
Republic. We have a long history in the country and have worked
with generations of customers, giving us a deep commitment to the
people and communities we serve," said Rick Waugh, President,
Scotiabank. "Today's [Tuesday's] announcement underscores our
commitment to continue the growth that we have been seeing in the
Dominican Republic, and will give us a major presence right
across the country."
Completion of the various transactions specified in the
Memorandum of Understanding are subject to a number of
conditions, including finalizing and signing definitive
documents. The transactions will occur in two steps. The first,
which is expected to occur in the next 10-15 days is the purchase
of a select portion of the credit card portfolio. The second,
which involves acquiring up to 35 branches and select personal
and commercial loans, is expected to commence in 30 days and will
be completed over a three-month period. Scotiabank is not
assuming any liabilities of Baninter, but will be working with
customers who hold deposits to enable them to open a Scotiabank
account if they choose to do so. Full details of the agreement
were not disclosed, but the transaction is to include the
purchase of real estate of approximately US $25 million plus an
option to purchase financial assets. With the completion of this
agreement, Scotiabank will be the 5th largest private bank in the
Dominican Republic in terms of branches.
"We continue to see tremendous potential in this market," said
Peter Cardinal, Scotiabank Executive Vice-President, Latin
America. "Having been in the Dominican Republic for 83 years,
Scotiabank is the oldest bank in the country, and we have the
experience and expertise to ensure that our customers receive the
products and services to meet their individual needs. Providing a
superior level of service to our customers is a priority for
Scotiabank."
In the last year alone Scotiabank has added five new branches in
the Dominican Republic, and will be opening another one in Santo
Domingo this fall. At the same time, the Bank continues to build
on products and services, having introduced a new customer
contact center, telephone banking, and having made changes within
branches to give staff more time to spend directly with
customers.
"Our employees look forward to welcoming new customers to
Scotiabank and reaching out to new communities as a result of
this agreement," said Mr. Cardinal. "In every country where we
operate, we are proud to be a local bank given our commitment to
our employees, our customers, and our communities. From
scholarships and training programs to dental care and education
for disadvantaged children, Scotiabank supports a wide range of
very important local initiatives and we look forward to
continuing to support our communities."
Scotiabank is one of North America's premier financial
institutions, Canada's most international bank and the leading
bank in the Caribbean. For more than 110 years, Scotiabank has
been contributing to the lives of people in communities across 25
countries in the Caribbean and Central America. With
approximately 48,000 employees, Scotiabank Group and its
affiliates serve about 10 million customers in some 50 countries
around the world. Scotiabank offers a diverse range of products
and services including personal, commercial, corporate and
investment banking. With C$292 billion in assets (as at April 30,
2003), Scotiabank trades on the Toronto (BNS), New York (BNS) and
London (BNV) Stock Exchanges.
CONTACT: Toronto - Ann Wales
SCOTIABANK PUBLIC AFFAIRS
Tel: (416) 866-3703
Email: ann_wales@scotiabank.com
Santo Domingo - Yocasta de la Cruz
SCOTIABANK SALES AND MARKETING
Tel: (809) 735-2714
Email: yocasta.delacruz@scotiabank.com
=============
E C U A D O R
=============
PACIFICTEL: Conatel Expects To Make Intervention Decision Soon
--------------------------------------------------------------
Conatel, Ecuador's telecoms regulator believes it will soon
decide on whether to intervene in state-run fixed line operator
Pacifictel, Business News Americas reports, citing a Conatel
spokesperson.
Earlier, telecoms regulatory enforcement agency Suptel
recommended the intervention of Pacifictel for failing to meet
buildout goals as agreed on in a 2001 concession modification.
Meanwhile, members of the Guayaquil city council criticized
Pacifictel sister company Andinatel's proposition that Pacifictel
puts up its 50 percent share in Telecsa as guarantee for its
share in the cost of Telecsa's mobile license.
=============
J A M A I C A
=============
C&WJ: Offers Caribtel Reconnection For Dropping Lawsuit
--------------------------------------------------------
Cable & Wireless Jamaica will resume international toll free
services to Caribtel if the latter drops a lawsuit it filed
against the former, The Jamaica Observer reports.
However, Caribtel seems adamant on prosecuting its case, saying
it wants to recover lost revenue.
Caribtel is claiming $21 million in lost revenue after C&WJ
blocked Caribtel customers from gaining access to the 1-800
international toll free system through their calling cards.
The report quotes C&WJ as saying, "In an effort to assist
Caribtel to resume its business in a manner which would be in-
keeping with contractual obligations and also to settle the
pending litigation, C&WJ went ahead in good faith and developed a
new product which would suit Caribtel's purposes."
However, Caribtel chief Courtney Betty commented, "Cable &
Wireless has stated that toll free access will not be provided to
Caribtel until the legal action involving the international voice
service provider product is withdrawn, dropping the case would be
foregoing our constitutional right for damages."
In the meantime Caribtel customers can still use their cards
without the toll free service, says the report.
The country's telecoms regulator declined to comment on the
issue, as it is not a regulatory matter.
===========
M E X I C O
===========
BUFETE INDUSTRIAL: Liquidates Labor Contracts
---------------------------------------------
Mexican engineering company Bufete Industrial has reached the end
of the liquidation of its labor contracts after signing an accord
with its former employees, reports Business News Americas.
Bufete Industrial is being liquidated after it failed to reach an
agreement with its creditors. The Company has 1,500 creditors to
whom it owes more than MXN7 billion. Bufete's assets, estimated
to be around MXN300 million, are not even sufficient to pay the
MXN800 million it owes to its workers.
Bufete Industrial has been in a pre-bankruptcy process since
2001. The liquidation process completion is expected this year.
COPAMEX: IFC Approves $75M Loan To Aid Debt Refinancing
-------------------------------------------------------
The International Finance Corporation (IFC), the World Bank body
created to promote the development of the private sector, granted
Mexican company Copamex a loan of US$75 million to help it
refinance and reduce debts, according to an article released by
the Internet Securities.
The US$75-million loan consists of an ICF loan of US$50 million
at eight years and an investment of US$25 million in quasi-
capital, said the institution.
IFC will help Copamex refinance US$141 million of its current
debt, and will coordinate a US$60-million loan and a parallel
credit of US$81 million. It will also provide Copamex with a swap
of debt from dollars to pesos. Copamex will use a small part of
the financing for a modernization program needed to remain
competitive.
GRUPO IUSACELL: Movil Access To Name New General Director
---------------------------------------------------------
Movil Access, S.A. de C.V., a Mexican telecommunications service
provider, subsidiary of Biper, S.A. de C.V. (BMV: MOVILAB), a
Grupo Salinas company, announced Tuesday that it intends to name
Jose Ignacio Morales Elcoro to act as general director of
administration of Grupo Iusacell. The general director will
oversee the departments of Human Resources, Accounting,
Comptroller, Legal, and Information Technology. The appointment
will become effective upon closing of the tender offers commenced
by Movil@ccess, which is currently scheduled to occur on July 29,
2003.
Mr. Morales Elcoro, currently a Senior Advisor to the Office of
the Chairman of Grupo Salinas has been with the Grupo Salinas
companies for almost 15 years. He started at Grupo Elektra as CFO
in 1989. In 1993 Mr. Morales Elcoro joined TV Azteca with
responsibilities over the areas of Human Resources, Accounting,
Comptroller, Legal and Information Technology.
In 1995 he was appointed COO of TV Azteca, a position he held
until last year. In that role Mr. Morales was credited with the
design of the various cost and expense control systems that are
today in place at the broadcaster. As a result of the successful
implementation of such systems, TV Azteca is one of the most
profitable integrated television companies in the world. Mr.
Morales Elcoro has also been a member of the team responsible for
the transition at Grupo Iusacell.
Prior to joining the Salinas companies, Mr. Morales was Manager
in charge of financial information systems at Cydsa, a northern
Mexico industrial company. He holds a MBA (1979) from the
University of Illinois with a focus on accounting and finance, as
well as a BA (1977) from the Instituto Tecnologico y de Estudios
de Monterrey (ITESM). He is also a graduate of the upper
management program at the Instituto Panamericano de Alta
Direccion de Empresas (IPADE).
Company Profile
Grupo Salinas is a group of Mexican companies owned or controlled
by the family of Ricardo Salinas Pliego. Grupo Salinas includes
TV Azteca, Elektra, Unefon, Biper, Todito.com, Telecosmos and
Movil Access. Movil Access provides personal communication
services of narrow band, or "two-way paging," commercially known
as the "portable e-mail service," and the marketing and/or sale
of personal interactive communication terminals. Biper is in the
telecommunication service provider business.
GRUPO IUSACELL: Gustavo Guzman to Be Appointed CEO
--------------------------------------------------
TV Azteca, S.A. de C.V. (NYSE: TZA; BMV: TVAZTCA), one of the two
largest producers of Spanish language television programming in
the world announced Tuesday that Gustavo Guzman, senior vice
president of sales, is expected to take over the position of CEO
of Grupo Iusacell upon closing of the tender offers previously
announced by Movil@ccess.
With more than 12 years in key positions at different Grupo
Salinas companies, Gustavo Guzman has been credited with
streamlining TV Azteca's sales structure, bringing a more
productive, efficient and incentive-compatible operation.
His responsibilities will be assumed by Mario San Roman, company
COO, who together with Mr. Guzman will secure a smooth transition
until a permanent replacement has been appointed by management.
"Gustavo has built a team of over two hundred, highly motivated,
and dynamic sales people. They have developed strong and long
term oriented relationships with advertisers," said Pedro
Padilla, company CEO. "Gustavo leaves in place a very solid, and
highly systemized sales structure. I wish Gustavo the best in his
new responsibilities."
"I have worked closely with the extraordinary sales team that
Gustavo has built, and within that team we will select a strong
leader to continue with his success," said Mr. San Roman. "It is
a priority of Pedro's and mine to work together with Gustavo to
ensure a very smooth and successful transition until a permanent
head of sales is named, before year end."
Company Profile
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 affiliates include Azteca America Network, a new broadcast
television network focused on the rapidly growing US Hispanic
market; Unefon, a Mexican mobile telephony operator focused on
the mass market; and Todito.com, an Internet portal for North
American Spanish speakers.
TV AZTECA: Analyst Reiterates "Buy" Recommendation on Shares
------------------------------------------------------------
Whitney Johnson, a telecommunications analyst at Merrill Lynch &
Co., reiterated her "buy" recommendation on shares of Mexico's
second-largest broadcaster. Bloomberg reports that the stock rose
19 centavos, or 4.6%, to MXN4.34 on Monday, the second-biggest
gain on the Bolsa that day.
Azteca Holdings SA Chief Financial Officer Diego Foyo, which owns
the broadcaster, said a week ago that the Company won an
agreement with J.P. Morgan Chase & Co. to extend debt payments,
resolving a four- month standoff that threatened to trigger a
default. The share has risen 42% this year, the fourth-best
performance on the Bolsa.
=======
P E R U
=======
ESSALUD: Manager Moves To Assuage Insurers' Doubts
--------------------------------------------------
EsSalud manager Jose Luis Chirinos tried to alleviate healthcare
insurers' fears that Peru's public health agency is likely to go
belly up in the face of excessive administrative costs, relates
Business News Americas.
According to Chirinos, EsSalud has emergency funds totaling
PEN800 million to avoid a collapse. Apart from the contingency
cash, there are also other measures designed to restore EsSalud's
economic stability and enhance healthcare insurance services.
The agency forecasts a 20%, or PEN600 million, reduction in
expenditure, with plans to trim PEN3 billion in the coming years.
EsSalud lost PEN215 million (US$61.5mn) in April, almost matching
its first quarter loss of PEN256 million.
=================================
T R I N I D A D & T O B A G O
=================================
BWIA: Finally Submits 2002 Financial Report To SEC
--------------------------------------------------
Beleaguered Trinidad and Tobago airline BWIA finally submitted
its 2002 financial report to the Securities & Exchange
Commission, three months after it was supposed to submit the said
report, according to The Trinidad Guardian.
A source at the SEC said BWIA, which has been enduring a review
of its finances by Canadian firm Zwaig Consultancy Inc, handed in
its 2002 audited financial statements to the SEC on June 19 and
its annual report on June 27. Under the Securities Industries
Act, BWIA was required to submit its audited reports by March 30.
"BWIA did request an extension, technically, and diplomatically,
in truth and in fact, we did not refuse," the source said. "The
Commission requested an explanation as to why they did not file
on March 30. They gave an explanation and indicated they would
submit the financial authorised statement by the end of June."
"We handed in the reports to the SEC on time," said BWIA
spokesperson Clint Williams. "Within the next few days the annual
report will be sent out to the shareholders."
Meanwhile, the Trinidad & Tobago Stock Exchange also granted BWIA
two separate one-month filing extensions. BWIA was scheduled to
file its audited financial statements by April 30.
On April 30, the Guardian reported the Stock Exchange announced
BWIA failed to meet its April 30 filing deadline and requested a
month extension. BWIA received the extension but on June 6, the
Stock Exchange said it had given the airline a further extension
to June 30.
CONTACT: British West Indies Airways
Phone: + 868 627 2942
E-mail: mailto:mail@bwee.com
Home Page: http://www.bwee.com/
=============
U R U G U A Y
=============
BANCO DE CREDITO: Savers To Meet CenBank Chief on Reimbursement
---------------------------------------------------------------
A committee representing creditors of intervened Uruguayan bank
Banco de Credito is scheduled to meet with central bank chief
Miguel Vieytez to seek an upfront payment of US$2,000 for all
frozen accounts in the bank, reports Business News Americas.
The Uruguayan government received a statement from the depositors
urging it to unfreeze their deposits, as stipulated in the
agreement outlined by the government. Local paper La Republica
reports that the savers' statement suggests that there is a lack
of clear information on the part of the government with respect
to dates and figures involved in the reimbursement of funds.
Banco de Credito was intervened and suspended, along with four
other banks last year, due to capital and liquidity problems.
Government attempts to sell the bank have failed, so far. In the
meantime, the government also refuses to transfer the bank's
assets to state bank Banco Republica.
=================
V E N E Z U E L A
=================
PETROBRAS ENERGIA: Loan Agreement Subscribed With The IFC
---------------------------------------------------------
Perez Companc S.A. (Buenos Aires: PC NYSE: PC) announced Tuesday
that Petrobras EnergĦa Venezuela S.A., a subsidiary wholly owned
by Pecom EnergĦa S.A., subscribed loan agreements in the amount
of US$ 105 million with the International Finance Corporation,
the financial branch of the World Bank.
The financing consists of loans with terms of up to nine years
that will be used for the investment plan related to the oil
reserve development in the four fields in which the Company
operates in Venezuela through Petrobras Energia Venezuela S.A.:
Acema, Mata, La Concepci˘n and Oritupano Leona.
Disbursements under the beforementioned loans are estimated to be
made mostly during this year.
Such financing highlights the significance of the projects
conducted by the Company in Venezuela.
***********
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
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or balance thereof are $25 each. For subscription information,
contact Christopher Beard at 240/629-3300.
* * * End of Transmission * * *