/raid1/www/Hosts/bankrupt/TCRLA_Public/030808.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
Friday, August 8, 2003, Vol. 4, Issue 156
Headlines
A R G E N T I N A
AUTOPISTAS DEL SOL: S&P Rates $380M of Bonds `raD'
BANCO FRANCES: $1B of Bonds Rated `B(arg)+' by Local Fitch
EASA: Fitch Confirms Category D(arg) Rating On $200M Debentures
ECCO: Swiss Medical Assigns Preliminary Contract For Acquisition
EDICIONES AZTECA: Court Orders Bankruptcy
FAZIP: Receiver Chosen For Bankruptcy Process
GRIMOLDI: Expands Business Plan Pending Debt Accord
INTEGRALCO: Seeks To Restructure $8.16M Debt
JHR CONSTRUCCIONES: Bankruptcy Made Official on Court Decision
JUAN MINETTI: Okays $5.14M Bond Issue
LAFSA: Investors Have Until August 22 To Present Offers
LEDESMA PINTURAS: Nonpayment of Debt Ends in Bankruptcy
LOMA NEGRA: Creditor Banks Have Until Friday To Accept Proposal
METROGAS: Reports 1H03 Financial Results
PIONEER NATURAL: Production Prompts Fitch Rating Upgrade
PUNTO B: Court Sets Deadline For Creditor Claims Verification
SAMIR: Court Sets Date For Individual, General Reports
VINTAGE PETROLEUM: Reports Mixed 2Q03 Results
VINTAGE PETROLEUM: Announces 2Q03 Operations Update
B E R M U D A
GLOBAL CROSSING: Consolidated Net Loss for June Tops $99M
B O L I V I A
COTEL: To Offer Internet Access After Launching LD Service
COTEL: Administrators Assign Members of Electoral Board
B R A Z I L
BANCO VOTORANTIM: Notes Get Fairly Stable 'B' Rating
BCP: Telemar, America Movil Begin Due Diligence
ELETROPAULO METROPOLITANA: Spends $570,000 For Fuel Cell Research
NET SERVICOS: 2Q03 Financial Results Show Improvement
C H I L E
EDELNOR: Gets B3 Issuer Rating From Moody's
ENERSIS: Financial Performance Significantly Improves, Says S&P
NEXTEL CHILE: Awaits Decision on Interconnection Authorization
D O M I N I C A N R E P U B L I C
*IMF Official Issues Statement on the Dominican Republic
E C U A D O R
PACIFICTEL: Removes Canadian Firm As Candidate To Run Telco
*Ecuador Struggles To Keep Up With IMF Commitments
E L S A L V A D O R
MILLICOM INT'L: Announces Quarter Ended June 30, 2003 Results
J A M A I C A
CABLE & WIRELESS: New Mobile Director To Run Caribbean Ops
JUTC: Reclassification, Retroactive Wages to Cost $100M
M E X I C O
AEROMEXICO: Enters Alliance With LanChile, Mobility Electronics
SATMEX: Interest Payment Missed, Credit Rating Lowered
T R I N I D A D & T O B A G O
CARONI: VSEP For Staff Employees Stalled at BIR
V E N E Z U E L A
CANTV: S&P Analyst Forecasts No Default In The Short-term
HARVEST NATURAL: Ratings Raised to 'B-'; Outlook Stable
- - - - - - - - - -
=================
A R G E N T I N A
=================
AUTOPISTAS DEL SOL: S&P Rates $380M of Bonds `raD'
--------------------------------------------------
Standard & Poor's International Ratings, Ltd. assigned an `raD'
to corporate bonds issued by Autopistas del Sol S.A., relates the
National Securities Commission of Argentina. The rating applies
to a total of US$380 million of bonds, which the NSC described as
"Obligaciones Negociables simples, autorizadas por AGO de fecha
16.5.97."
According to the ratings agency, an obligation is rating `raD'
when it is in payment default, or the obligor has filed for
bankruptcy. The `raD' rating is used when interest or principal
payments are not made on the date due, even if the applicable
grace period has not expired, unless the ratings agency believes
that such payment will be made during such grace period.
The rating issued on Monday was based on the Company's finances
as of March 31, 2003. It applies to US$170 million of bonds,
which mature on August 2 next year. The rest of the issue matures
on August 3, 2009.
CONTACT: Autopistas del Sol S.A.
Phone: (54 11) 5789-8700.
BANCO FRANCES: $1B of Bonds Rated `B(arg)+' by Local Fitch
----------------------------------------------------------
Fitch Argentina Calificadora de Reisgo S.A. rated corporate bonds
issued by BBVA Banco Frances S.A. `B(arg)+' last Friday. The
National Securities Commission of Argentina describes that
affected bonds, worth a total of US$1 billion, as "Programa de
Obligaciones Negociables".
The rating was based on the Company's financial position as of
the end of March this year. Fitch said that the rating denotes a
significantly weak credit risk relative to other issues in
Argentina. Financial commitments are currently being met but a
limited margin of safety remains and capacity for continued
timely payments is contingent upon a sustained, favorable
business and economic environment.
EASA: Fitch Confirms Category D(arg) Rating On $200M Debentures
---------------------------------------------------------------
The Argentine arm of credit ratings agency Fitch Ratings
confirmed the category D(arg) rating it assigned to US$200
million worth of debentures issued by Argentine energy holding
company Easa, Business News Americas relates, citing a statement.
Easa is struggling to meet debt obligations because Edenor, upon
which it derives its sole income, has seen its ability to
generate funds deteriorate due to regulatory changes. Both Easa
and Edenor are currently negotiating with creditors to
restructure their respective debts.
A recovery in Edenor's financial flexibility and the restoration
of a regulatory framework will determine Easa's creditworthiness
in the short-term, said the ratings agency in the statement.
ECCO: Swiss Medical Assigns Preliminary Contract For Acquisition
----------------------------------------------------------------
Argentine healthcare services holding Swiss Medical Group has
signed a preliminary contract for the acquisition of the Cordoba
province-based emergency services company Emergencias Cardio
Coronarias, or Ecco. The Company is the largest ambulance
services provider in the provinces (excluding Buenos Aires).
Although both companies refused to reveal information to El
Cronista, market sources confirmed Swiss Medical is carrying out
a due diligence process in order to get to know Ecco's figures in
detail. Ecco is about to finish a formal restructuring proceeding
started in December 2002.
If the operation takes place, Swiss Medical Group will cover all
the areas of healthcare. It already owns the prepaid medicine
firms Swiss Medical, Qualitas, Medicien and Nuvial, as well as
the clinics Maternidad Suizo Argentina, Sanatorio Agote and San
Luis. The holding has 270,000 customers and holds a 12% share in
the private healthcare business.
Ecco started operations back in 1984 in Rosario (province of
Santa Fe). In March 1998, it was taken over by US firm
Rural/Metro Corporation. At that time, the company used to bill
some US$45 million a year and had 700,000 customers. A few years
later, in October 2002, Metro Corporation decided to withdraw
from Argentina due to the crisis that hit the country and gave
its stake to the local management of the company, in exchange for
the assumption of a US$ 3 million debt. But things did not go as
expected and Ecco decided to file for protection under the
bankruptcy law in December 2002.
EDICIONES AZTECA: Court Orders Bankruptcy
-----------------------------------------
Court No. 10 of Buenos Aires ruled that Ediciones Axteca S.R.L.
be placed under bankruptcy. A report by local news source Infobae
reveals that the court is assisted by the city's Clerk No. 19.
The bankruptcy proceeds with the credit verification process. The
company's creditors have until October 16 this year to have the
claims verified by the designated receiver, Mr. Jacobo Beker.
CONTACT: Ediciones Azteca S.R.L.
Scalabrini Ortiz 95
Buenos Aires
Jacobo Beker
Salguero 2244
Buenos Aires
FAZIP: Receiver Chosen For Bankruptcy Process
---------------------------------------------
A receiver has been chosen for the bankruptcy process Buenos
Aires-based company Fazip S.C.A. is undergoing. The city's court
no. 24 designated Mr. Hector Fracisco Presta to act as receiver
for the bankrupt company.
Argentine news source Infobae said that the court set September 1
this year as the deadline for the authentication of credit
claims. After that period, the receiver is instructed to prepare
the individual reports, which must be submitted by October 13.
The Court expects the receiver to file the general report on
November 24.
CONTACT: Hector Francisco Presta
Avenida Belgrano 1705
Buenos Aires
GRIMOLDI: Expands Business Plan Pending Debt Accord
---------------------------------------------------
Argentine footwear maker and retailer, Grimoldi, which is about
to reach a debt restructuring agreement with its creditors, is
expanding its business plan. Thanks to the current debt
restructuring process, Grimoldi has substantially improved its
liquidity ratio. Furthermore, the substitution of imports by
locally produced goods being carried out by Argentina has also
favored the company, which is expected to close 2003 with a
billing of ARS80 million (US$ 32.65 million), almost doubling the
ARS46 million it billed in 2002.
Grimoldi is developing two new formats related to outdoor
activities: Out-venture and Merrell Shops. The first Out-venture
shop, located in Unicenter Shopping, has already been
inaugurated. In these outlets, Grimoldi sells brands such as
Timberland, Nike, Merrel, Hush Puppies and ACG. Alberto Grimoldi,
CEO of the firm, said he plans to open 15 out-venture outlets
throughout Argentina until 2004.
The company has also opened the first Merrel shop in Buenos Aires
and plans to open two or three more during 2003.
INTEGRALCO: Seeks To Restructure $8.16M Debt
--------------------------------------------
The Exxel Group's catering firm, Integralco, which recently
requested the opening of a formal restructuring proceeding
(Concurso Preventivo), is seeking to restructure ARS20 million
(US$8.16 million) in debt, mainly with suppliers and the local
tax bureau.
The Company declared it started to default in payments on August
1st, 2003. According to sources from Integralco, the Company's
payment troubles were caused by an increase in delayed payments
by customers, higher costs of inputs and lack of financing for
the payment of its debts with suppliers.
They explained that, after the peso lost value against the US
dollar; the company was forced to cancel its purchases cash,
while it had to continue selling on credit terms. They also said
they saw their costs grow by 200% in comparison with 2001 and
they could not transfer this increase to their prices. They added
the fixed ARS200 pay rise ruled by the government was another
issue that affected the company's financial status. Finally, they
mentioned the increase in logistics costs and robberies in local
routes as other negative aspects.
According to Integralco, it is paying salaries regularly, its
current billing level reaches ARS20 million and it has invested
US$2 million to keep the firm operating. Some of its most
important customers are Citibank, EDS, Banco Nacion, Bayer, Baesa
and Sanatorio de la Trinidad.
Exxel acquired an 80% stake in Integralco in 1998 and it became
its sole shareholder in 2001, when it purchased the remnant 20%.
The Company's Concuros is overseen by commercial court 23,
secretariat 46 of Buenos Aires, led by Judge Julia Villanueva.
CONTACT: Integralco S.A.
Avenida del Libertador 774
Buenos Aires
JHR CONSTRUCCIONES: Bankruptcy Made Official on Court Decision
--------------------------------------------------------------
JHR Construcciones S.R.L., which is based in Mar del Plata,
enters bankruptcy following a decision from the province's Court
no. 10, relates local news source Infobae. Clerk No. 10 of Mar
del Plata assists the court on the case, the report adds.
The designated receiver for the case is Mr. Hector Mario Hardoy.
The deadline for the individual reports, which are to be prepared
by the receiver after the credit verification process, is
September 30 this year. The general report must be submitted by
November 28 this year.
CONTACT: JHR Construcciones S.R.L.
Vieytes 3536
Mar del Plata
Hector Maria Hardoy
Garay 2635
Mar del Plata
JUAN MINETTI: Okays $5.14M Bond Issue
-------------------------------------
Argentine cement company Minetti approved an up-to US$5.14-
million bond issue with a variable interest rate and a special
mortgage, as part of the debt restructuring process being carried
out by the firm. This issue in particular has to do with the
framework refinancing accord subscribed between Minetti and the
International Finance Corporation.
LAFSA: Investors Have Until August 22 To Present Offers
-------------------------------------------------------
The director of Argentine airline L¡neas A‚reas Federales
Sociedad An¢nima (LAFSA), Mr. Albero Bidart, announced that
potential investors have until August 22 to present their
negotiation plans. The initial operation requires ARS20 million.
LAFSA directors think that the Company will have to operate,
initially, with at least between 5 and 6 planes, and are planning
as well to integrate the nearly 850 employers that the bankrupted
LAPA has left unemployed.
In recent weeks, different national and international investors
have already been contacted. International investors include TAM,
Mexicana de Aviaci¢n and LanChile. National investors include
Southern Winds, Cata and American Falcon.
LEDESMA PINTURAS: Nonpayment of Debt Ends in Bankruptcy
-------------------------------------------------------
Court No. 24 of Buenos Aires has set the deadlines for the
reports to be prepared by the receiver concerning the bankruptcy
of Ledesma Pinturas S.A. Local news portal Infobae reveals that
the deadline for the individual reports is October 20, while the
general report is due on December 1 this year.
The receiver, Ms. Alicia Gloria Zurron will authenticate credit
claims until September 8 this year. She is required to file the
individual reports following the completion of the verification
of creditors' claims. In the general report, the receiver may
voice out his opinions on the reasons behind the Company's
financial woes.
The Company was declared bankrupt by force of a petition filed by
Ana Ortigoza, which was approved by the court. The Company
reportedly owes the complainant some $26,270.
CONTACT: Ledesma Pinturas S.A.
6th Floor 53
Esmeralda St. No. 1075
Buenos Aires
Alicia Zurron
Corrientes Ave. 2963
Buenos Aires
LOMA NEGRA: Creditor Banks Have Until Friday To Accept Proposal
---------------------------------------------------------------
Argentine cement company Loma Negra announced that the invitation
to creditor banks to accept its proposed unsecured debt
restructuring was extended until August 8, 2003. Loma Negra owes
banks some US$400 million.
The proposal involves an up-to-US$70 million initial cash payment
destined to repurchase part of the debt and the issue of new
bonds for up to US$250 million, which will settle part of the
owing capital with a certain write-off that will be fixed after a
tender process.
Loma Negra also announced its board of directors had approved a
US$45 million bond issue. The company has been negotiating the
restructuring of its debt since September 2002 with Morgan
Stanley as financial advisor.
METROGAS: Reports 1H03 Financial Results
----------------------------------------
Argentine natural gas distributor MetroGAS SA (MGS) informed the
Buenos Aires Stock Exchange that it registered a net income of
ARS98.9 million ($1=ARS2.935) for the first half period ended
June 30, 2003. Dow Jones Business News suggests that the second
quarter profit is minimal since the Company already recorded net
income of ARS98.6 million in the first quarter of the year.
MetroGAS, in the statement to the bourse, attributed the first
half profit largely to exchange rate gains of ARS199.8 million on
its outstanding foreign debt. In the first quarter, an exchange
rate gain of ARS138.9 million was cited as the most important
factor.
Net sales for the half were ARS281.9 million, while gross profit
was ARS52.72 million. Operating profit came in at ARS6.9 million.
In its statement, MetroGAS said its interest expenses rose to
US$51.2 million in the first half once the positive impact of the
exchange rate movements was eliminated. It didn't say what that
figure rose from.
The Company also noted that its adjusted net loss for the full
year 2002 now stands at ARS513.4 million.
CONTACT: METROGAS, S.A.
Gregorio Araoz de Lamadrid 1360
Buenos Aires
Argentina
CPA C 1267
Phone: +54 11 4309 1010
Fax: +54 11 4309 1025
Home Page; http://www.metrogas.com.ar
Contact:
William Harvey Alvarez, President
PIONEER NATURAL: Production Prompts Fitch Rating Upgrade
--------------------------------------------------------
Fitch Ratings has upgraded Pioneer Natural Resources' (Pioneer)
senior unsecured debt to 'BB+' from 'BB'. The Rating Outlook
remains Positive reflecting potential for another upgrade over
the course of the next six to eighteen months.
The upgrade is a result of Pioneer's achievement of higher
production levels and generation of increased cash flow over the
last several quarters. In the quarter just ended, the company
reported production volumes were up some 24% sequentially over
the first quarter's levels. Compared to last year's second
quarter, volumes are up 45%. The increased production is being
primarily driven by two projects in the Gulf of Mexico, namely
the Canyon Express and Falcon projects. Additionally, Pioneer's
volumes are expected to increase going forward as three more
projects are expected to commence production in the near-to-
intermediate term. First oil sales for Pioneer's Sable project
offshore of South Africa should begin early in the fourth quarter
of this year and production from the company's Devil's Tower and
Harrier projects should begin in early 2004. With all of these
projects on full production, Pioneer's daily production is
anticipated to be approximately 20% above the second quarter's
level of 159,000 boe/d.
Going forward, the increase in production should allow Pioneer to
reduce its debt load. For the remainder of 2003, Fitch expects
that Pioneer will reduce debt by $100 million. The anticipated
increase of production levels in 2004 should also enable the
company to be free cash flow positive and pay down additional
debt. This should be the case even in a lower or 'mid-cycle'
hydrocarbon price environment. In such an environment in 2004
($21/bbl. (WTI) & $3.50/Mcf (Henry Hub)), Fitch believes that
Pioneer should achieve robust credit metrics. Interest coverage,
as measured by EBITDAX/interest, should be above 5 times (x) and
debt/EBITDAX should be approximately 2.5x.
The Positive Rating Outlook is reflective of Fitch's belief that
Pioneer will successfully complete its remaining near-term
projects. To achieve a further upgrade, Fitch will look for
Pioneer to attain its production targets as well as further pay
down debt in 2004 with anticipated free cash flow. Additionally,
Pioneer will need to continue to replace reserves at economic
costs for the upgrade.
Pioneer is a large independent oil and gas exploration and
production company with operations in the United States, Canada,
Argentina, South Africa, Gabon, and Tunisia. Proved reserves at
year-end 2002 were 735 million barrels of oil equivalent.
PUNTO B: Court Sets Deadline For Creditor Claims Verification
-------------------------------------------------------------
Court No. 2 of Buenos Aires set September 30 this year as the
deadline for the credit authentication process concerning the
bankruptcy of Punto B S.R.L., relates Infobae.
The Court assigned Mr. Antonio Garguilo as receiver for the
process. The report, however, did not indicate whether the court
has set the deadline for the individual and general reports.
CONTACT: Punto B S.R.L.
Cramer 3956
Buenos Aires
Antonio Garguilo
Uruguay 385
Buenos Aires
SAMIR: Court Sets Date For Individual, General Reports
------------------------------------------------------
The receiver for the bankruptcy of Samir S.A. is required to file
the individual reports by October 20 this year, reports Argentine
news portal Infobae. The source adds that the general report must
also be filed by December 1.
An earlier report by the Troubled Company Reporter - Latin
America relates that Buenos Aires Court No. 4 declared the
Company bankrupt upon the request of Graciela Gramajo, to whom
the Company owes some $67,824.
Mr. Pozzi Angel Romano was assigned receiver for the proceedings.
Creditors are advised to submit their claims for authentication
before 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
VINTAGE PETROLEUM: Reports Mixed 2Q03 Results
---------------------------------------------
Vintage Petroleum, Inc. (NYSE: VPI - News) announced Wednesday a
net loss of $8.7 million, or $0.14 per share, for the second
quarter of 2003 driven by non-cash charges of $41.6 million
($24.3 million after tax) related primarily to the impairment of
certain unproved and producing properties in Canada. These
results compare to net income of $22.4 million, or $0.35 per
share, in the same quarter last year. Major items impacting the
comparison of quarterly results include the after- tax effects of
non-cash charges for property impairments, gains and losses on
property sales, foreign currency exchange gains and losses,
losses on the early extinguishment of debt and income from
discontinued operations.
Excluding the major items described above, the company earned
$17.7 million, or $0.28 per diluted share, for the second quarter
of 2003 compared to $17.3 million, or $0.27 per diluted share in
the year-earlier quarter. (See the attached table for a
reconciliation of this non-GAAP measure).
Included in the non-cash charges for the second quarter were
$12.6 million ($7.3 million after tax) for the impairment of
certain producing oil and gas properties in Canada and $29.0
million ($17.0 million after tax) for the impairment of certain
of the company's exploration acreage, most of which is related to
its Northwest Territories project. The company recently completed
its review of the exploration potential of its Northwest
Territories project and, while it believes this project may
contain significant exploration potential, it has determined that
the project no longer fits within the company's current
investment portfolio. No additional capital expenditures are
planned and the company is initiating efforts to farm-out its
position in this project. The impairments to the Canadian
producing properties were driven by negative reserve revisions as
a result of unsuccessful workover operations and additional
technical evaluation of other non-producing projects.
Cash flow from continuing operations (before all exploration
costs, changes in working capital and current taxes on property
sales and loss on early extinguishment of debt) was $64.2 million
for the second quarter of 2003 compared to $61.0 million in the
year-ago quarter, reflecting the increase in oil and gas prices
from the year-ago levels. See the attached table for Vintage's
calculation of cash flow from continuing operations, a non-GAAP
financial measure. Cash provided by operating activities for the
second quarter of 2003 was $13.3 million compared to $66.4
million in the year- earlier quarter.
Oil and gas production from continuing operations for the quarter
was 6.9 million equivalent barrels (BOE) raising first half
production to 13.9 million BOE, in line with the company's
expectations included in its annual production targets. Oil
production during the second quarter of 2003 totaled 4.5 million
barrels and natural gas production was 14.6 Bcf. The anticipated
decline from the year-earlier quarter's 8.2 million BOE was
attributable to U.S. property divestitures in June 2002 and March
2003, natural production declines and the effects of
substantially curtailed capital expenditures in 2002 which
resulted in significantly lower production levels at the start of
2003. Capital expenditures in 2002 were limited to $129.7
million, or approximately 54 percent of cash flow provided by
operating activities, as a result of management's decisions to
use a portion of cash flow and proceeds from asset sales to
execute its debt reduction program during 2002.
The average price received for gas (including the impact of
hedges) was dramatically higher than the average price received
in the year-ago quarter, rising 43 percent to $3.28 per Mcf in
the current quarter compared to $2.29 per Mcf in the second
quarter of last year. The average realized price for oil
(including the impact of hedges) also rose 17 percent to $24.95
per barrel compared to $21.39 per barrel in last year's quarter.
Oil and gas sales rose four percent to $159.5 million from $152.7
million in last year's quarter as the effect of higher prices
more than offset the decline in production. Total revenues for
the quarter were $186.8 million, compared to $191.0 million in
the year-ago quarter which included $17.6 million of gains from
asset sales.
Lease operating expenses per BOE for the quarter increased 20
percent to $7.86 per BOE compared to $6.53 per BOE in last year's
second quarter. Over 30 percent of the per BOE increase was
attributable to higher costs (expressed in U.S. dollars) in
Argentina and Canada resulting from Argentina peso inflation and
the strengthening of the Argentine peso and Canadian dollar.
Removing the impact of Argentina inflation and foreign currency
fluctuations, lease operating expenses declined but did not keep
pace with the declines in production, resulting in the remaining
increase on a per BOE basis.
Total general and administrative costs of $15.9 million increased
from $12.5 million in the year-earlier quarter primarily due to
non-cash expenses related to restricted stock awards, cash
bonuses and Argentina asset taxes included in this year's quarter
with no comparable amounts in the year-earlier period. Interest
expense decreased 13 percent, or $2.7 million, to $18.0 million
as a result of the company's lower outstanding debt level.
Exploration expense during the second quarter of 2003 of $32.4
million included $2.9 million in seismic, geological and
geophysical costs and $29.5 million in lease impairments and dry
hole costs. This compares to a total of $7.0 million during the
second quarter of 2002 which included $1.4 million in seismic,
geological and geophysical costs and $5.6 million in lease
impairments and dry hole costs.
Six Month Results
Net income for the six months ended June 30, 2003, of $32.0
million, or $0.49 per diluted share, compares to a net loss of
$43.7 million, or $0.68 per share, in the first half of 2002.
Income for the six months ended June 30, 2003, before the $7.1
million positive impact of the cumulative effect of the
accounting change regarding asset retirement obligations, was
$24.9 million, or $0.38 per diluted share, compared to the year-
earlier period's income of $16.8 million, or $0.27 per diluted
share, before the $60.5 million negative impact of the cumulative
effect of the accounting change regarding impairment assessments
of goodwill.
Cash flow from continuing operations (before all exploration
costs, changes in working capital and current taxes on property
sales and loss on early extinguishment of debt) was $148.7
million for the six months ended June 30, 2003, up 47 percent
compared to $101.3 million in the year-ago period, reflecting the
increase in oil and gas prices from the year-ago levels. See the
attached table for Vintage's calculation of cash flow from
continuing operations, a non-GAAP financial measure. Cash
provided by operating activities for the six months ended June
30, 2003, was $94.1 million compared to $89.2 million in the
year-earlier period.
"Our cash flow was very strong in the first half of this year,
leading to increased cash flow expectations for the year," said
S. Craig George, CEO. "Despite the strength in cash flow, we are
disappointed with the loss in the quarter due to non-cash
charges.
"The plan to restrict capital spending in 2002, in addition to
the impact from asset sales, has temporarily affected our oil and
gas volumes. However, it has also had the desired effect of
strengthening our balance sheet and positions us for future
growth. In addition to the $107 million of cash on hand, we have
nearly $300 million of availability under our bank revolving
credit facility. With this liquidity and our commitment to
maintain a healthy balance sheet, we are actively pursuing
acquisition opportunities in our return to production growth,
while adding to our portfolio of projects with upside potential."
2003 Revised Targets
As a result of the strong cash flow in the first half and
expectations of continued strong product prices, the company has
increased its annual target for cash flow from continuing
operations (before all exploration expenses, current taxes on any
property sales and working capital changes) in 2003 to $265
million from $250 million and its target for EBITDAX to $385
million from $350 million. These revised targets and others are
enumerated in the accompanying table, "Vintage Petroleum, Inc.,
Revised 2003 Targets" and are based on assumed average NYMEX
prices for 2003 of $29.00 per barrel of oil and $5.25 per MMBtu
of gas versus its previously assumed NYMEX prices of $27.00 per
barrel of oil and $5.00 per MMBtu of gas. Net realized prices for
the year (before the impact of hedging) as a percent of NYMEX are
expected to be 86 percent for oil and 69 percent for gas. In
addition, as a result of weaker than anticipated market
conditions in Bolivia, non-strategic property sales in Canada and
the expectation that higher royalty rates in Canada will continue
(the Canadian sliding-scale royalty increases as commodity prices
increase) the company has reduced its 2003 production target
three percent to 28.3 million BOE.
To see financial statements:
http://bankrupt.com/misc/VINTAGE_PETROLEUM.htm
VINTAGE PETROLEUM: Announces 2Q03 Operations Update
---------------------------------------------------
Vintage Petroleum, Inc. (NYSE: VPI) updated Wednesday its
operational activities and plans for 2003. During the second
quarter, $33.9 million of the company's 2003 planned non-
acquisition capital budget of $185 million was spent drilling a
total of 27.8 net (30 gross) exploitation wells and performing 50
workovers. The company is on track to drill approximately 130 net
wells and undertake a variety of lower-risk exploitation projects
with approximately 70 percent of the budget during 2003. The
remaining 30 percent of the budget continues to be allocated to
potentially higher-impact exploration programs in the United
States, Canada, Italy and the frontier areas.
United States
During the quarter, eight net (eight gross) exploitation wells
were drilled with a 75 percent success rate. Year-to-date 16 net
(18 gross) wells have been drilled with an 89 percent success
rate. Exploitation drilling year-to-date in the West Ranch,
Luling and Darst Creek fields in south central Texas resulted in
14 net (14 gross) horizontal completions with an initial
production buildup of just over 2,000 net barrels of oil per day.
The 2003 exploitation budget of $49 million set for the United
States is on track to drill a total of 35 net (39 gross) wells by
year-end. Vintage will drill approximately seven horizontal oil
wells during the second half of the year in these same fields as
well as test horizontal drilling concepts in one or more
California fields. Additionally, several tight gas wells are
planned in the Gilmer and Loma Blanca fields in Texas. Based on
the results of these various exploitation drilling programs,
several additional locations could be generated in these fields.
Using an established play concept in the Permian Basin of west
Texas and eastern New Mexico, Vintage has generated three multi-
well, lower-risk gas prospects based on horizontal drilling and
fracture stimulation technology to significantly improve
production and economics compared to the historical results
encountered through the use of vertical drilling alone. Vintage
has an interest in over 19,500 gross acres encompassing these
three exploration prospects.
Vintage has a 33 percent working interest in its first tight-
carbonate well, the Muleskinner #1, located in the Leatherwood
prospect in Terrell County, Texas. This well is currently
cleaning up following the completion of the fracture stimulation
of the Devonian formation. If the results from this well confirm
the commercial viability, several additional wells can be drilled
on acreage currently under lease in this prospect.
The first well in the Austin prospect in Lea County, New Mexico,
the Hannah 17 State #2, targets a similar play concept in the
Mississippian formation. The pilot hole has been drilled into the
formation at a depth of 13,671 feet, and operations have
commenced to drill a 3,500 foot horizontal section in the
formation. If successful, several additional wells could be
drilled on this prospect.
The first well on the Rosehill prospect in Martin County, Texas,
is anticipated to begin drilling during the third quarter and
targets the Mississippian formation as well. Vintage has a 100
percent working interest in both the Rosehill and Austin wells.
The company estimates total net unrisked reserve potential for
these three prospects to be approximately 145 Bcfe.
Vintage is pursuing company-generated Oligocene and Miocene
prospects in the Texas Gulf Coast based on 3-D seismic and
geochemical surveys. Within these targeted play concepts Vintage
has acquired five state leases covering three shallow Texas state
water prospects this year. Vintage has two tracts covering 1,440
acres (High Island 55-L) in its Tres prospect and a 720 acre
tract (Mustang Island 860-L) in the Tankster prospect. Vintage
acquired two additional tracts (Mustang Island 775-L and 771-L)
covering 1,440 acres in the Wesson prospect in early July.
The Tres prospect is based on a Miocene gas exploration target
coupled with the redevelopment of lower Miocene oil and gas
sands. Vintage will operate and begin drilling its first well to
an approximate depth of 8,200 feet during the fourth quarter.
Vintage has a 65 percent working interest in this prospect; and
if successful, production could commence as early as mid-year
2004. The total net unrisked reserve potential on the Tres
prospect is 15 Bcfe. The Wesson prospect targets lower Frio gas
sands at depths of 17,500 to 18,500 feet, and Vintage anticipates
spudding the first well in early 2004.
Argentina
Eighteen gross (17.4 net) exploitation wells were drilled on
several concessions of the San Jorge Basin and the Cuyo Basin
during the second quarter with a success rate of 89 percent. In
addition, 25 net (25 gross) workovers were performed during the
second quarter. Twenty-four net (25 gross) wells have been
drilled and workovers have been performed on 39 net (39 gross)
wells during the first half of this year. Four drilling rigs are
currently operating, and plans are to add a fifth workover rig
during the third quarter. Vintage plans to drill 63 net (64
gross) wells this year.
Canada
Vintage has drilled 7.7 net (15 gross) exploitation and
exploration wells with a 74 percent success rate year-to-date.
For the year, Vintage plans 25 net (40 gross) exploitation and
exploration wells with most of the activity occurring in the
Sturgeon Lake and West Central areas of Alberta and in
northeastern British Columbia. In the Sturgeon Lake area,
regulatory approval was received late during the second quarter
for the infill drilling program in the Cretaceous Badheart gas
pool, and four to five wells are scheduled for drilling during
the third and fourth quarters.
As the result of its ongoing exploration initiative, Vintage and
its partners have embarked on an exploratory program targeting
gas in Triassic formations in the Foothills trend of northeastern
British Columbia where 8,400 net (21,000 gross) acres have been
acquired in the Cypress prospect area. Drilling operations began
in late July and five wells ranging in depths from 4,200 to 8,500
feet are scheduled for drilling during the second half of this
year. Prospect size for the targeted plays range from 20 to 150
Bcfe. Vintage's net unrisked reserve potential for this program
is approximately 90 Bcfe. Vintage has a 40 percent, non-operated
interest in these prospects that are located near marketing
infrastructure.
Italy
Vintage has a 70 percent working interest in two exploration
blocks situated in the Po Valley, an industrial region of
northern Italy which has a long-established production history
and well-developed pipeline infrastructure serving a highly
developed gas market. Using seismic attributes analysis from
reprocessed 2-D seismic combined with newly acquired geochemical
surveys, Vintage is targeting shallow Pliocene gas sands in
structural-stratigraphic traps. The process of well permitting is
underway and the company plans to begin drilling the first of two
exploration wells in early 2004. If successful, Vintage believes
that numerous similar prospects can be drilled using the same
technology-driven exploration concept. Vintage is the operator of
the Bastiglia and Cento blocks covering approximately 275,000
gross acres.
Frontier Exploration
The company's frontier exploration strategy exposes Vintage to a
handful of high impact exploration plays in various stages of
development using a small portion of the non-acquisition capital
budget. In Yemen, the An Nagyah #2 initial discovery well was
flow tested at rates as high as 1,000 barrels of oil and 500
thousand cubic feet of gas per day during the fourth quarter of
2002. The second appraisal well in this prospect, the An Nagyah #
4, initially tested at rates of 1,300 barrels of oil and 800
thousand cubic feet of gas per day during May of 2003. Results
from a recently completed longer- term test of this well were
encouraging as the well produced at rates of approximately 1,200
barrels of oil and 620 thousand cubic feet of gas per day during
the 27 continuous days of longer-term production testing. These
results are being incorporated into the technical and economic
evaluation that is being performed to determine commercial
viability. If the results of this evaluation support development,
Vintage will pursue the declaration of commerciality and approval
of a plan of development before year-end; and production could
begin from existing wells in early 2004. Vintage has a 75 percent
working interest in the S-1 Damis block.
During early 2003, Vintage entered into an agreement to conduct
exploration activities as operator on four onshore blocks in the
province of Nova Scotia in Canada. Vintage initiated drilling
during mid-July on the Beech Hill #1 prospect located
approximately three miles (five kilometers) south and east of
Antigonish, Nova Scotia in the Antigonish block. The prospect
targets potential oil accumulation in a Carboniferous reef
structure. It is estimated that it will take approximately four
weeks to drill the well to the proposed depth of 4,900 feet and
evaluate. Nearby infrastructure exists that could accommodate
additional production. Vintage will acquire 49 miles (79
kilometers) of 2-D seismic and will conduct a geochemical survey
on the Bras D'Or, Sydney and Pictou blocks during the third
quarter of 2003. The Antigonish, Bras D'Or, Sydney and Pictou
blocks cover approximately 1.5 million gross acres and Vintage
has the opportunity to earn up to an 80 percent working interest
in the Antigonish block and a 75 percent working interest in the
other three blocks.
Vintage is processing 1,070 miles (1,725 kilometers) of 2-D
seismic data recorded during the second quarter on the Bourgas-
Deep Sea block in the western Black Sea off the coast of the
Republic of Bulgaria as part of its work program on this
unexplored block covering nearly two million acres (7,958 square
kilometers). This work program also includes geologic studies of
the two targeted play concepts: large Eocene anticlines and deep-
water Oligocene and Miocene fan deposits. The permit's initial
term expires in December 2005 and has provisions for extension.
Vintage Petroleum, Inc. is an independent energy company engaged
in the acquisition, exploitation, exploration and development of
oil and gas properties and the marketing of natural gas and crude
oil. Company headquarters are in Tulsa, Oklahoma, and its common
shares are traded on the New York Stock Exchange under the symbol
VPI. For additional information, visit the company's website at
www.vintagepetroleum.com .
=============
B E R M U D A
=============
GLOBAL CROSSING: Consolidated Net Loss for June Tops $99M
---------------------------------------------------------
Global Crossing filed a Monthly Operating Report with the U.S.
Bankruptcy Court for the Southern District of New York, as
required by its Chapter 11 reorganization process. Results
reported in the June 2003 MOR are unaudited.
In June 2003, Global Crossing reported consolidated revenue of
approximately $252 million. Consolidated access and maintenance
costs were reported as $168 million, while other operating
expenses were $81 million.
"Our business showed steady growth in several areas during June,
including gains in revenue and EBITDA. Additionally, June was a
strong month for cash performance, with healthy cash collections.
We ended June with $559 million in consolidated cash, a $22
million increase from the previous month," noted John Legere,
Global Crossing's CEO. "Our company remains strong, our customers
and employees have stayed loyal, and we continue to look
positively toward our emergence from Chapter 11 as a bright new
beginning for Global Crossing."
Global Crossing's consolidated cash balance of approximately $559
million as of June 30, 2003 was comprised of approximately $222
million in unrestricted cash (including $67 million of cash held
by Global Marine) and $337 million in restricted cash.
Consolidated EBITDA was reported at $3 million. The consolidated
net loss for June 2003 was $99 million. The net loss increase
from May is in part due to higher professional fees and one-time
restructuring costs. As discussed below, the reported June 2003
depreciation and amortization of $95 million, and therefore the
June operating loss and net loss, would have been reduced
substantially if the financial statements in the June MOR had
reflected the tangible asset impairment anticipated by Global
Crossing.
As previously reported, in connection with the independent audits
being conducted for 2001 and 2002, Global Crossing concluded that
its Global Marine subsidiary should no longer be classified as a
discontinued operation since the newly emerged Global Crossing
expects to retain this business. As a result, Global Marine was
reclassified into Global Crossing's continuing operations
beginning with the May MOR. When historical financial statements
are filed for 2001 and 2002 Global Marine will be presented as
continuing operations for all periods presented. The April
financial information in the tables below have been amended from
previous press releases to include Global Marine as part of
continuing operations to enhance comparability with June
financial results.
Global Crossing provides telecommunications solutions over the
world's first integrated global IP-based network, which reaches
27 countries and more than 200 major cities around the globe.
Global Crossing serves many of the world's largest corporations,
providing a full range of managed data and voice products and
services.
On January 28, 2002, Global Crossing Ltd. and certain of its
subsidiaries (excluding Asia Global Crossing and its
subsidiaries) commenced Chapter 11 cases in the United States
Bankruptcy Court for the Southern District of New York
(Bankruptcy Court) and coordinated proceedings in the Supreme
Court of Bermuda (Bermuda Court). On the same date, the Bermuda
Court granted an order appointing joint provisional liquidators
with the power to oversee the continuation and reorganization of
the Bermuda-incorporated companies' businesses under the control
of their boards of directors and under the supervision of the
Bankruptcy Court and the Bermuda Court. Additional Global
Crossing subsidiaries commenced Chapter 11 cases on April 23,
August 4 and August 30, 2002, with the Bermuda incorporated
subsidiaries filing coordinated insolvency proceedings in the
Bermuda Court. The administration of all the cases filed
subsequent to Global Crossing's initial filing on January 28,
2002 has been consolidated with that of the cases commenced on
January 28, 2002. Global Crossing's Plan of Reorganization, which
was confirmed by the Bankruptcy Court on December 26, 2002, does
not include a capital structure in which existing common or
preferred equity will retain any value.
On November 18, 2002, Asia Global Crossing Ltd., a majority-owned
subsidiary of Global Crossing, and its subsidiary, Asia Global
Crossing Development Co., commenced Chapter 11 cases in the
United States Bankruptcy Court for the Southern District of New
York and coordinated proceedings in the Supreme Court of Bermuda,
both of which are separate from the cases of Global Crossing.
Asia Global Crossing has announced that no recovery is expected
for Asia Global Crossing's shareholders. Asia Netcom, a company
organized by China Netcom Corporation (Hong Kong) on behalf of a
consortium of investors, has acquired substantially all of Asia
Global Crossing's operating subsidiaries except Pacific Crossing
Ltd., a majority-owned subsidiary of Asia Global Crossing that
filed separate bankruptcy proceedings on July 19, 2002. Global
Crossing no longer has control of or effective ownership in any
of the assets formerly operated by Asia Global Crossing.
(Troubled Company Reporter, August 6, 2003, Vol. 7, Issue 154)
=============
B O L I V I A
=============
COTEL: To Offer Internet Access After Launching LD Service
----------------------------------------------------------
Bolivian telephony cooperative Cotel expects to launch its
Internet access service early next week, reports Business News
Americas citing the Company's deputy manager Jose Kuhn. However,
the report adds, the officer has declined to name the
connectivity providers the Company has teamed up with.
Mr. Kuhn said that the Company has made agreements with one of
the national partner for local telephony access and an
international operator. The Company is bound to receive 51% of
revenues from this project, based on the agreements made.
The Internet service is seen as an offshoot of the long distance
service the Company launched late June.
COTEL: Administrators Assign Members of Electoral Board
-------------------------------------------------------
Administrators in charge of La Paz-based telephony cooperative
Cotel expect to elect new administrative and oversight boards in
September, Bolivian daily La Razon reports. The administrators
have chosen people to man the electoral committee, the report
adds. Representatives from various local NGOs and neighborhood
watch groups were appointed to the six-member committee. Another
three were chosen as reserve members.
Cotel was under the administration of Detecon until April this
year, when the German consultancy firm decided to annul the
contract due to power grabbing reportedly done by the cooperative
board members.
Last month, the country's telecoms regulator Sittel extended for
another 90 days the term of Cotel's intervener, Javier Tapia. Mr.
Tapia's first 90 days as the company's intervener ended last July
3.
===========
B R A Z I L
===========
BANCO VOTORANTIM: Notes Get Fairly Stable 'B' Rating
----------------------------------------------------
Standard & Poor's Ratings Services said Wednesday that it
assigned its 'B' foreign currency short-term credit rating to
Banco Votorantim S.A.'s $50 million notes expected to be issued
on Aug. 6, 2003, and maturing on Aug. 4, 2004, with a coupon of
3.375%. The local currency credit ratings on the bank are
'BB/Stable/B' and the foreign currency credit ratings are
'B+/Stable/B'.
The ratings on Banco Votorantim S.A. benefit from the implicit
support of the Votorantim Group (local currency, BBB-/Stable/-;
foreign currency, B+/Stable/-); the group's strong brand-name
recognition; the bank's experienced management team; and
efficient decision-making processes.
The ratings also consider the potential risks associated with the
bank's treasury business, with its considerable exposure to
sovereign risk through its securities portfolio, a common issue
for Brazilian banks; a relatively short operating track record on
its consumer finance business; and the risks related to the
economic environment in Brazil.
"The Votorantim Group is one of the largest and most influential
industrial conglomerates in Brazil. Its brand-name recognition
has helped the bank to leverage on its business, and the images
of both organizations are closely linked," said credit analyst
Tamara Berenholc. The conglomerate supervises the bank's
activities and operations, and its conservatism permeates the
bank's activities. In Standard & Poor's opinion, the Group would
provide support to the bank if needed.
The stable outlook on Banco Votorantim reflects the sovereign
outlook on the Federative Republic of Brazil and incorporates the
balance between its financial profile and profitability and the
risks of a potential deterioration in asset quality.
ANALYSTS: Tamara Berenholc, Sao Paulo (55) 11-5501-8950
Daniel Araujo, Sao Paulo (55) 11-5501-8939
BCP: Telemar, America Movil Begin Due Diligence
-----------------------------------------------
Mexican mobile group America Movil and Brazilian fixed line
operator Telemar have begun due diligence studies of BellSouth
mobile operator BCP, according to a report by local paper Gazeta
Mercantil. BCP proves to be an attractive buy with its 1.7
million subscribers.
The report adds that executives believe that a sale should be
started within a couple of months.
Among the two prospective buyers, America Movil is said to be in
favor to acquiring the Sao Paolo-based company as it has bought
BCP's sister company in the northeast, BSE. American Movil is
part of a consortium, Telecom Americas, which has five operations
in Brazil.
Rio de Janeiro-based Telemar, on the other hand, is Brazil's
largest fixed line operator. Acquiring BCP means that it would
expand its operations to include Sao Paulo, which is the
wealthiest state in the country.
BCP is presently controlled by its creditors after its parent
companies Bellsouth and Banco Safra defaulted on US$375 million
of debt.
CONTACT: BCP S.A.
Rua Fl>rida, 1970 4o andar
Sao Paulo - SP
Tel: 55 11 5509-6428
Fax: 55 11 5509-6257
Home Page: http://www.bcp.com.br
ELETROPAULO METROPOLITANA: Spends $570,000 For Fuel Cell Research
-----------------------------------------------------------------
Eletropaulo business analyst Mara Ellern revealed that the Sao
Paulo distributor is investing BRL1.7 million (US$570,000) to
produce a prototype fuel cell using hydrogen to produce electric
power, relates Business News Americas. Financing comes from
Eletropaulo's research and development fund, into which,
according to concession rules, Eletropaulo must pay 0.75% of net
annual revenues.
According to the analyst, the fuel cell is being produced in
partnership with Brazilian research firm Eletrocell and Sao Paulo
state university USP.
The 30kW prototype should be ready for field tests by the end of
this year, and a definitive conclusion on the feasibility of the
cell should be available within 2 years, Ellern said.
CONTACT: ELETROPAULO METROPOLITANA
Avenida Alfredo Egidio de Souza Aranha 100-B,
13 andar 04726-270 San Paulo
Brazil
Phone: +55-11-548-9461, +55 11 5696 3595
Fax: +55-11-546-1933
URL: http://www.eletropaulo.com.br
Contacts:
Luiz D. Travesso, Chairman and President
Orestes Gonzalves Jr., VP Finance/Investor Relations
NET SERVICOS: 2Q03 Financial Results Show Improvement
-----------------------------------------------------
Net Servicos de Comunicacao S.A., (Bovespa:PLIM4) (Bovespa:PLIM3)
(Nasdaq:NETC) (Latibex:XNET), the largest Pay-TV multi-service
operator in Latin America, an important provider of bi-
directional broadband Internet access (Virtua) and multimedia and
data communication services for corporate networks, announced
Wednesday its earnings results for the second quarter of 2003
(2Q03). The following financial and operating information, except
where otherwise stated, is unaudited and presented in U.S. GAAP
on a consolidated basis.
Net revenues totaled US$ 100.1 million, a 21.3% increase from US$
82.6 million in 1Q03. This result is a consequence of higher
sales of Advanced package and the impact in June of regular
monthly fees readjustments. Besides that, higher pay-per-view
revenues from the Brazilian Soccer Championship and the
consistent growth in Virtua's client base also influenced this
result.
EBITDA in the quarter totaled US$ 24.2 million, 25.0% higher than
the US$ 19.4 million registered in 1Q03. EBITDA margin also grew
from 25.3% to 24.2% in the quarter.
Operating Income (EBIT) was US$ 8.0 million in 2Q03 compared to
US$ 4.7 million recorded in the previous quarter. EBIT totaled
US$ 12.7 million in the semester, 11.8% higher than the US$ 11.4
million registered in the first semester of 2002. The Company's
determination to implement activities in order to secure
operating improvement, such as the renegotiation of programming
contracts, higher marketing efforts, improvement of sales
channels focusing on subscribers' loyalty and new sales, the
latest developments in churn management by adopting the best
retention and reversion practices in all operations and
rationalization in cost reduction, explain accumulated result in
the first semester. The Company believes that its operating
performance should maintain this improving trend and therefore
EBIT may remain positive for the next quarters.
Net Income was US$ 20.4 million (US$ 0.01 per share), against a
net loss of US$ 12.0 million (US$ 0.01 per share) registered in
1Q03.
=========
C H I L E
=========
EDELNOR: Gets B3 Issuer Rating From Moody's
-------------------------------------------
Moody's assigned an Issuer Rating of B3 with a stable outlook to
Chile's electricity utility Empresa Electrica del Norte Grande
S.A. (Edelnor). The rating assigned reflects the company's
current organizational structure and post-bankruptcy status, says
Moody's
The company filed for bankruptcy on September 17, 2002 in the
U.S. Bankruptcy Court for the Southern District of New York. A
Plan of Reorganization was approved by 99% of the company's
debtholders and a Final Decree was issued on January 7, 2003. The
Plan of Reorganization reduced the amount of senior unsecured
bank debt by about 30% from US $340 million to US $217.6 million.
More importantly, the Plan alleviated some short-term liquidity
pressures by providing a 5-year grace period with debt maturities
from 2008 to 2017. Gradually increasing interest rates, beginning
at 4% until 2005, up to 8.5 % from 2012 onwards, provide some
cash-flow relief. The company's current capitalization is
relatively straightforward. The US$ 217.6 million of Novation
Certificates resulting from the Plan or Reorganization represent
the only long-term debt outstanding. Debt to stockholders equity
is currently 48%.
Current majority owners are CODELCO (rated A2 with a stable
outlook) and Tractebel. CODELCO - 100% owned by the government of
Chile (rated Baa1 with a stable outlook) - is the worlds largest
copper producer, holding 20% of global copper reserves, and
representing about 17% of Chilean exports. Since the Sistema
Interconectado del Norte Grande (the SING) - the transmission
system or grid in which Edelnor operates - is dominated by the
copper mining industry, it is beneficial to Edelnor to have
CODELCO as a majority owner.
Empresa Electrica del Norte Grande S.A. is a utility engaged in
electricity generation and transmission in northern Chile's First
and Second Regions. The company's headquarters are in Santiago,
Chile.
ENERSIS: Financial Performance Significantly Improves, Says S&P
---------------------------------------------------------------
The financial performance of Chile-based electricity provider
Enersis S.A. has shown a significant improvement on both a
consolidated and individual basis, according to a report
published by Standard & Poor's Ratings Services Wednesday.
"This improvement is the result of the successful implementation
of a financial strengthening plan at both Enersis and 60%-owned
subsidiary Endesa Chile during the first half of 2003," said
credit analyst Sergio Fuentes. "However, we have already
incorporated a certain measure of success of this plan into the
current senior secured and senior unsecured ratings assigned to
Enersis," Fuentes continued.
Any improvement in Enersis' outlook or rating would require
further improvements of Endesa Chile's performance and a more
consolidated stabilization of the economic environment in
Argentina and Brazil, which would allow Enersis to improve
financial ratios well above what was previously projected.
The full report, "Enersis' Financial Performance Shows
Significant Improvement in 2003," is available on RatingsDirect,
Standard & Poor's web-based credit analysis system, at
www.ratingsdirect.com. Media copies of the full report may be
obtained by contacting Gregg Stein at (1) 212-438-1730 or by e-
mail at gregg_stein@standardandpoors.com.
ANALYST: Sergio Fuentes, Buenos Aires (54) 114-891-2131
NEXTEL CHILE: Awaits Decision on Interconnection Authorization
--------------------------------------------------------------
Chilean trunking operator Nextel Chile awaits announcement by the
appeals court of its verdict regarding the appeals filed by four
local mobile operators against definitive authorization for
Nextel Chile to interconnect with their networks. Business News
Americas suggests that the verdict may be announced before the
end of the month.
Nextel has provisional interconnection authorization, which is
enough for the Company to insist on interconnection tests with
established operators, with testing launched in April.
However, the Company still awaits a definitive ruling by the
appeals court on the legality of its digital trunking
concessions, which a lower court annulled in November 2002.
===================================
D O M I N I C A N R E P U B L I C
===================================
*IMF Official Issues Statement on the Dominican Republic
--------------------------------------------------------
Mr. Agust¡n Carstens, Deputy Managing Director of the
International Monetary Fund (IMF), announced Wednesday that the
management of the IMF will recommend to the Executive Board that
it approve the Dominican Republic's request for support of its
economic and financial program through a 24-month, Stand-By
Arrangement amounting to SDR 437.8 million (US$618 million). It
is anticipated that the Executive Board will take up this request
in late August 2003.
In announcing this decision, Mr. Carstens said:
"The program proposed by the authorities reflects their strong
commitment to address current macroeconomic pressures and
problems in the banking system. These developments have weakened
the economy after years of rapid economic growth and
macroeconomic stability. The program envisages comprehensive
measures to strengthen the banking system, including improved
prudential regulation and supervision. The program also contains
measures to improve public finances and ensure debt
sustainability, and prudent monetary policy in the context of a
flexible exchange rate. These policies will help restore
confidence and reduce inflation, which-together with efforts to
strengthen the social safety net-should alleviate the social
impact of the recent disruption to the country's impressive
economic record."
CONTACT: INTERNATIONAL MONETARY FUND
700 19th Street, NW
Washington, D.C. 20431 U
IMF EXTERNAL RELATIONS DEPARTMENT
Public Affairs: 202-623-7300 - Fax: 202-623-6278
Media Relations: 202-623-7100 - Fax: 202-623-6772
=============
E C U A D O R
=============
PACIFICTEL: Removes Canadian Firm As Candidate To Run Telco
-----------------------------------------------------------
Canada's government-run international trade and export
facilitating corporation Canadian Commercial Corporation (CCC)
has been eliminated from the race for a 3.5-year administration
contract to administrate Ecuadorian state-run fixed line operator
Pacifictel.
According to Business News Americas, talks between the two
companies were already at an advanced stage when Pacifictel
decided to remove CCC as a potential candidate to run the telco.
Pacifictel's decision came after it discovered that CCC had a
prior or ongoing relationship with Ecuadorian citizens, which
directly contravened a clause in the contract aimed at keeping
the administrator bias-free.
Pacifictel will now put the contract up for auction, most likely
publishing the bidding rules this month and naming the winner on
September 17.
*Ecuador Struggles To Keep Up With IMF Commitments
--------------------------------------------------
The Ecuadorian government suffered a setback in its efforts to
pass a labor reform bill by the end of August in order to keep up
with the US$205-million loan agreement with the International
Monetary Fund signed in March.
According to Reuters, Congress rejected Wednesday the proposed
labor bill, which aims to set rules for public employees to help
keep track of workers and control government spending.
Lawmakers suggested that President Lucio Gutierrez revise the
labor bill to include plans to simplify a complex salary plan and
control nepotism. Gutierrez could then return the revamped bill
to the 100-member Congress for a new debate.
But such delays could disrupt the IMF program's timeframe, says
Reuters. Gutierrez's government is also supposed to send a tax
reform bill to Congress by the month's end under its IMF deal but
can only send one "urgent" bill -- which takes priority -- at a
time.
According to Finance Minister Mauricio Pozo, he had spoken with
the IMF before the vote about the possibility that the bill might
fail. He now hopes to resend the labor reform marked "urgent" for
approval by Aug. 30 and send the tax bill a day later.
=====================
E L S A L V A D O R
=====================
MILLICOM INT'L: Announces Quarter Ended June 30, 2003 Results
-------------------------------------------------------------
Millicom International Cellular SA (NasdaqNM:MICC - News), the
global telecommunications investor, announced Wednesday results
for the quarter ended June 30, 2003. Financial summary for the
quarters ended June 30, 2003 and 2002
June 30, June 30, Change
2003 2002
Worldwide subscribers (i) *
- proportional cellular 3,083,955 2,472,960 25%
- gross cellular 4,471,835 3,483,573 28%
US$ '000
Revenues* 143,862 127,750 13%
Operating profit before
depreciation and 73,403 56,763 29%
amortization, EBITDA(ii)*
EBITDA margin* 51% 44% -
Profit before financing, taxes
and other 103,821 55,566 -
income
Profit (loss) for the quarter 176,035 (14,038) -
Basic and diluted earnings (loss) per -
common share (US$) 10.81 (0.86)
Weighted average number of shares and
diluted potential shares
(thousands) 16,284 16,305
(i) Subscriber figures represent the worldwide total number of
subscribers of cellular systems in which MIC has an ownership
interest. Subscriber figures do not include divested operations
or the subscribers of Tele2 AB, in which MIC has a 6.0% interest
at August 6,2003.
(ii) EBITDA; operating profit before interest, taxation,
depreciation and amortization, is derived by deducting cost of
revenues, sales and marketing costs, and general and
administrative costs from revenues.
* Due to local issues in El Salvador, MIC has discontinued
consolidating El Salvador on a proportional basis with effect
from May2001. All comparatives in this press release, other than
those noted in the appendices, exclude divested operations and El
Salvador in respect to subscribers and for financial results, up
to and including EBITDA.
Marc Beuls, MIC's President and Chief Executive Officer stated:
``The second quarter of 2003 has been positive for MIC and I am
pleased to report a 29% increase in EBITDA for the quarter from
the same period in 2002, the highest increase for over two years.
MIC Africa was the best performer in terms of EBITDA, producing
growth of 98%, which is a record result representing a turnaround
for the region. Group revenues increased by 13% from the second
quarter of 2002 and the EBITDA margin rose to 51%, evidencing the
benefit of our recent cost cutting exercise and the renewed focus
on our core businesses.
Millicom has taken several steps in the first half of 2003 to
reduce total net debt on the balance sheet and at June 30, 2003,
this figure stood at $875.1 million, a 35% reduction from the
same time last year, and interest payments are now 41% lower.
These and subsequent initiatives to retire high-yield debt will
result in an increase in free cash flow going forward, allowing
MIC to grow its mobile businesses faster and deliver increased
value to shareholders.``
FINANCIAL AND OPERATING SUMMARY
Subscriber growth:
OE An annual increase in worldwide gross cellular subscribers of
28%to 4,471,835 as at June 30, 2003
OE An annual increase in worldwide proportional cellular
subscribersof 25% to 3,083,955 as at June 30, 2003
OE In the second quarter of 2003 MIC added 223,121 net new gross
cellular subscribers
OE An annual increase in proportional prepaid subscribers of 31%
to2,764,099 as at June 30, 2003
- Financial highlights:
OE Revenue for the second quarter of 2003 was $143.9 million, an
increase of 13% from the second quarter of 2002
OE EBITDA increased by 29% in the second quarter of 2003 to
$73.4million, from $56.8 million for the second quarter of 2002
OE The Group EBITDA margin was 51% in the second quarter of
2003increasing from 44% in the second quarter of 2002
- Total cellular minutes increased by 32% for the three months
ended June 30, 2003 from the same quarter in 2002, with prepaid
minutes increasing by 62% in the same period
- In April 2003 MIC launched GSM services in the Lao People's
Democratic Republic (Laos) under the Tango brand name.
- On May 5, 2003 MIC announced that approximately $781 million or
85%of the outstanding amount of Millicom's 13-1/2% Senior
Subordinated discount Notes due 2006 or the ``Old Notes'' had
been tendered in Millicom's private exchange offer and consented
to certain amendments to the existing indenture covering the Old
Notes.
- Upon closing of the exchange offer on May 7, 2003, Millicom
issued approximately $562 million of Millicom's 11% Senior Notes
due 2006 and approximately $64 million of Millicom's 2% Senior
Convertible PIK(payment in kind) Notes due 2006 in exchange for
the $781 million of Old Notes tendered. In addition Millicom also
paid to holders of Old Notes, who consented to the amendments of
the Old Notes indenture, $50 per$1,000 of Old Notes so consenting
(excluding affiliates of Millicom) or approximately $38 million
in the aggregate. Millicom's 2% Senior Convertible PIK Notes due
2006 are convertible into Millicom common stock at a conversion
price of $10.75 per share. If the original principal amount of
approximately $64 million of the new 2% Senior Convertible Notes
were converted into Millicom's common stock, the 2%Notes would
convert into approximately 5.93 million shares of Millicom's
common stock (which, when issued, would constitute approximately
26.7%of the then issued and outstanding common stock).
- As at June 30, 2003, MIC reports total net debt, after cash and
time deposits, of $875.1 million, a reduction of 23% compared
with totalnet debt of $1,141.9 million as at December 31, 2002,
and a reduction of35% compared with total net debt of $1,356.1
million as at June 30,2002. Of this debt, $49.7 million is in
respect of PIK Notes convertibleat any time into MIC shares at a
price of $10.75.
- In the second quarter of 2003, MIC sold 1,000,000 B shares in
Tele2AB realizing a gain of $2.0 million.
Subsequent events:
OE On July 18, 2003 MIC launched a mandatory exchangeable bond
offering of approximately SEK 2,556 million (US$310 million). The
bonds will be convertible into MIC's total current holding of
8,968,400 Tele2AB Series B shares. The bonds, which will mature
in August 2006, carry a coupon of 5% and the exchange premium has
been set at 30% with a reference price of SEK 285.
REVIEW OF OPERATIONS
SUBSCRIBER GROWTH*
At June 30, 2003 MIC's worldwide gross cellular subscriber base
increased by 28% to 4,471,835 cellular subscribers, from
3,483,573 as at June 30, 2002. Particularly significant
percentage increases were recorded in Cambodia, Vietnam, Ghana,
and Senegal.
MIC's proportional cellular subscriber base increased by 25% to
3,083,955 at June 30, 2003, from 2,472,960 at June 30, 2002.
Within the 3,083,955 proportional cellular subscribers reported
at the end of the second quarter 2003, 2,764,099 were pre-paid
customers, representing a 31% increase on the 2,110,002
proportional prepaid subscribers recorded at the end of June
2002. Pre-paid subscribers currently represent 90% of gross
reported proportional cellular subscribers.
FINANCIAL RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2003*
Total revenues for the three months ended June 30, 2003 were
$143.9 million, an increase of 13% from the second quarter of
2002. This increase, following two successive quarters with
growth of 11%, reflect the increasing trend of growth in MIC's
operations. MIC recorded revenue growth in Asia of 24% in the
second quarter of 2003 compared with the same period in 2002,
with Pakcom in Pakistan producing growth of 38%, and revenues for
Africa for the second quarter of 2003, increased by 30% to $18.5
million from the same period last year.
Second quarter revenues for Latin America decreased by just over
2% from the second quarter of 2002 as a result of currency
devaluations in South America in the second half of 2002,
although the Central American market continued to perform
strongly with Guatemala producing a revenue increase of 17% from
the second quarter of 2002. Against the first quarter of 2003,
revenues in Latin America increased by over 2% reflecting
increased stabilization in the region.
EBITDA for the three months ended June 30, 2003 was $73.4
million, an increase of 29% from the quarter ended June 30, 2002.
EBITDA for Asia increased by 38% from the second quarter of 2002
to $38.2 million, with a particularly strong increase produced by
Cambodia, which recorded growth from the second quarter of 2002
of 164%. The strong EBITDA growth in the region as a whole
reflects the buoyancy of this market and the impact of stringent
cost cutting measures. MIC Africa produced impressive EBITDA
growth of 98% from the second quarter of 2002 to $8.3 million, a
record for the region. The EBITDA margin in Africa increased from
30% in the second quarter of 2002 to 45% in 2003.
The positive impact of cost cutting in Latin America was
reflected in the EBITDA for the region, which increased by 7%
from the second quarter of 2002 to $26 million, with margins
increasing from 43% to 48%. The main contributors to EBITDA
increase were Guatemala and Honduras, which recorded increases of
36% and 16% respectively from the second quarter of 2002. Against
the first quarter of 2003, EBITDA in Latin America increased by
over 4%.
As a result of the debt exchange in May 2003, MIC recorded a book
gain of $97.1 million.
FINANCIAL RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2003*
Total revenues for the first half of 2003 were $282.6 million
with revenues for Asia and Africa increasing by 24% and 28% to
$131.7 million and $36.5 million respectively, relative to the
first half of 2002. Revenues for Latin America for the first half
of the year decreased by 4% to $107.9 million, due significantly
to currency devaluations and an economic slow-down in South
America.
EBITDA for the first half of 2003 was $142.4 million, an increase
of 25% over the first half of 2002. Most notably Africa recorded
a 67% increase in EBITDA for the six months ended June 30, 2003.
The respective increases for Asia and Latin America were 36% and
4%. The EBITDA margin for the six months to June 30, 2003 was
50%, an increase over the 45% recorded for the same period in
2002, with a notable increase from 32% to 42% in Africa.
Total cellular minutes increased by 31% for the first half of
2003 compared with the same period in 2002.
In the first six months of 2003, MIC reduced its interest expense
by 41% to $55.7 million from $94.1 million as at June 30, 2002 as
a result of debt restructuring and the divestment of certain
highly leveraged operations.
In the first half of 2003, the market value of MIC's holding in
Tele2 AB has increased by $99.9 million.
During the second quarter of 2003, MIC cancelled the circular
stock that had previously been disclosed as treasury stock in
equity.
CORPORATE LIQUIDITY AND DEBT INDICATORS
At June 30, 2003
Cash at the corporate level $22.1m
Cash upstreamed from operations $48.1m
Toronto Dominion debt outstanding $60.2m
13.5% $136.4m
11% $562.2m
2% $49.7m
Subsidiary debt $155.2m
Total Tele2 shares 8,968,414
Millicom International Cellular S.A. is a global
telecommunications investor with cellular operations in Asia,
Latin America and Africa. It currently has a total of 16 cellular
operations and licenses in 15 countries. The Group's cellular
operations have a combined population under license (excluding
Tele2) of approximately 382 million people. In addition, MIC
provides high-speed wireless data services in five countries. MIC
also has a 6.0% interest in Tele2 AB, the leading alternative
pan-European telecommunications company offering fixed and mobile
telephony, data network and Internet services to 18.7 million
customers in 22 countries. The Company's shares are traded on the
Luxembourg Bourse and the Nasdaq Stock Market under the symbol
MICC.
CONTACT: Millicom International Cellular S.A., Luxembourg
Marc Beuls, President and Chief Executive Officer
Telephone: +352 27 759 101
Shared Value Ltd, London
Andrew Best
Telephone: +44 (0) 20 7321 5022
MIC's homepage: http://www.millicom.com
=============
J A M A I C A
=============
CABLE & WIRELESS: New Mobile Director To Run Caribbean Ops
----------------------------------------------------------
Barbara Polyalli is to become Mobile Director for the Caribbean
operations of Cable & Wireless from September 1. Citing industry
analysts, RadioJamaica.Com reports that Polyalli's appointment is
part of the measures introduced by the Company to fight off a
growing competitive threat to its Caribbean operations.
Since the arrival of competitors such as Irish company Digicel
and US operator AT&T Wireless, the Company has seen a declining
mobile market share in countries where Cable and Wireless once
dominated the market.
Already, Digicel has overtaken Cable and Wireless in the cellular
market in Jamaica and is aggressively eyeing other markets in the
Caribbean.
JUTC: Reclassification, Retroactive Wages to Cost $100M
-------------------------------------------------------
Jamaica Urban Transit Company (JUTC) vice president of human
resources and public relations Keith Goodison said that the
recent reclassification exercise and the proposal to pay
retroactive wages will cost the cash-strapped about $100 million.
A report by the Jamaica Gleaner Tuesday indicates that almost
2,000 workers who were reclassified would benefit from the pay
hike. Most of the reclassified employees were conductors and
drivers, which make up roughly 80 percent of the Company's
workforce.
The Company has also proposed to start paying payments for the
period April 1 to July 9. The Company aims to start making
payments by August 27 this year.
"We wanted to look at the whole structure of how you recruit,
train and promote people within the categories and it was felt
that we had to move away from a system where you can't use
performance evaluation to determine people's suitability," said
Mr. Goodison on the reclassification.
Presently, the Company is looking for alternative sources of
funds after losing millions of dollars in the last few years.
In related news, the Company is set to meet with unions
representing its workers to discuss adjustments on the new system
of employment at the Company.
===========
M E X I C O
===========
AEROMEXICO: Enters Alliance With LanChile, Mobility Electronics
---------------------------------------------------------------
Mobility Electronics, Inc. (Nasdaq: MOBE), a leading provider of
innovative portable computing solutions for the mobile computer
user, announced marketing alliances with Aeromexico and LanChile
(NYSE: LFL), both leading Latin American airlines. The two
airlines, innovators in the airline industry, will offer business
travelers access to Mobility Electronics' in-flight power
products.
Through this marketing relationship, both Aeromexico and LanChile
will promote and sell Mobility Electronics' iGo(R) Juice(TM)
auto/in-flight power adapter on flights, as well as through
LanChile's frequent flier program, LanPass.
"Our relationship with these two leading Latin American airlines
helps further our mission to provide travelers worldwide with a
source for the mobile computing products they need," said Charlie
Mollo, CEO of Mobility Electronics. "These two airline agreements
significantly strengthen our presence in the international
market."
While on board duty free flights on either airline, customers may
purchase iGo Juice for use with in-seat power sources to power
and recharge notebook computers. Additionally, members of
LanChile's LanPass can preorder the unit and pick it up in the
airport before boarding.
"We are constantly seeking ways to improve and expand our
services for business travelers," said Marisol Palominos,
director of in-flight services for LanChile. "This relationship
with Mobility Electronics provides another way for our business
customers to maintain their productivity while flying on our
aircraft."
LanChile S.A., (NYSE: LFL) is Chile's largest domestic and
international airline and is the largest cargo carrier in Latin
America. It was named the best airline in Latin America for 2002
by Skytrax. Aeromexico serves 43 cities in Mexico, 80
destinations in the United States and Canada, and six countries
in Europe and South America.
About Mobility Electronics, Inc.
Mobility Electronics, Inc., based in Scottsdale, Ariz., is a
leader in the mobile computing industry, designing, developing
and marketing products that allow users to get more from their
mobile computing devices. The company's innovative solutions
include power devices, software and accessories for handheld and
notebook computers, as well as docking stations, connectivity,
expansion and video products for portable computers.
Mobility Electronics' brands include both the iGo and MAGMA(TM)
product lines. iGo's flagship products include the industry's
first combination AC/DC power adapter, Juice as well as first-to-
market handheld software and accessory products such as Pitch(TM)
and Quickoffice(TM). The company's MAGMA line of patented
expansion products enables the industry's only PCI expansion
solutions for servers, desktop and mobile computing users.
Mobility Electronics' products are available to mobile
professionals directly via the company's award-winning Web site (
www.igo.com ) as well as through the company's global
distribution base of leading resellers, retailers and OEM
partners. For additional information on Mobility Electronics'
products and services, call 480-596-0061, or visit its Web site
at www.mobilityelectronics.com .
iGo is a registered trademark and Juice, Quickoffice, Pitch and
MAGMA are trademarks of Mobility Electronic, Inc. All other
trademarks or registered trademarks are the property of their
respective owners.
CONTACT: Mobility Electronics, Inc.
Jennifer Dulles Jansky of Metzger Associates
Phone: +1-303-786-7000, ext. 212
Email: jennifer@metzger.com
Julia Kroner of Mobility Electronics, Inc.
Phone: +1-480-596-0061, ext. 386
Email: jkroner@mobl.com
Home Page: http://www.mobilityelectronics.com
SATMEX: Interest Payment Missed, Credit Rating Lowered
------------------------------------------------------
Standard & Poor's Ratings Services said Wednesday it lowered its
local and foreign currency corporate credit ratings on Mexican
fixed satellite services provider Sat‚lites Mexicanos S.A. de
C.V. (Satmex) to 'D' from 'CCC+' following a missed interest
payment on Aug. 1, 2003 on the company's US$320 million 10.125%
senior notes due Nov. 1, 2004.
The rating on the notes was lowered to 'D' from 'CCC-'. The
rating on the company's Senior Secured Floating Rate Notes due
June 29, 2004 was lowered to 'CC' from 'CCC+'. The company's debt
totaled US$524 million as of June 30, 2003.
"According to the original terms of the indentures, Satmex has 30
days to make the interest payments," said credit analyst Patricia
Calvo. "Still, Standard & Poor's does not expect that the company
will make the payments in the grace period."
ANALYST: Patricia Calvo, Mexico City (52) 55-5279-2073
=================================
T R I N I D A D & T O B A G O
=================================
CARONI: VSEP For Staff Employees Stalled at BIR
-----------------------------------------------
Cheques for daily paid workers of Trinidad and Tobago state sugar
company Caroni (1975) Ltd who accepted the Voluntary Separation
of Employment Plan (VSEP) have been prepared, reports the
Trinidad Guardian. However, only about 5% of the Company's former
staff employees are to receive their full VSEP payments pending
approval from the Board of Inland Revenue (BIR).
The remaining staff at the Company's Brechin Castle office said
that they are making daily runs to the BIR to have the issue
corrected as soon as possible. A number of the Company's staff is
asked to remain until their job was complete, which according to
one employee, could take up to four months.
Issues on outstanding unused sick and vacation leave owed to the
Company's daily paid workers, and limited number of employees
working in Caroni's Wages and Fringes Section and at its computer
department all add to the delay. Less than 50 people remain at
the said offices.
=================
V E N E Z U E L A
=================
CANTV: S&P Analyst Forecasts No Default In The Short-term
---------------------------------------------------------
Patricia Calvo, an analyst at Standard & Poor's, said she doesn't
see an imminent default on CA Nacional Telefonos de Venezuela,
the country's largest telephone company, relates Bloomberg.
Calvo's comments follows a statement by CANTV that it may default
on some of its international debt because it can't guarantee that
it will receive dollars from the government to make payments.
Venezuela imposed restrictions on dollar sales in January to
protect foreign reserves after a nationwide strike slashed sales
of oil, the country's largest dollar earner.
"Access to foreign exchange is still severely restricted," the
Company said in a statement.
But Ms. Calvo said: "We see some risk, especially in the long-
term if they can't receive dollars. In the short-term, no."
Gustavo Antonetti, the head of investment relations, revealed the
Company has to make debt payments of US$19.4 million through the
end of the year. The Company has about $230 million in overall
debt, most of it dollar- denominated.
HARVEST NATURAL: Ratings Raised to 'B-'; Outlook Stable
-------------------------------------------------------
Standard & Poor's Ratings Services said Wednesday that it raised
its corporate credit rating on independent petroleum company
Harvest Natural Resources Inc. to 'B-' from 'CCC+'. The outlook
remains stable. Houston, Texas-based Harvest has about $90
million of debt.
"The rating upgrades reflect the upgrade of the foreign currency
rating on the Bolivarian Republic of Venezuela and its state oil
company Petroleos de Venezuela S.A. (PDVSA) to 'B-' from 'CCC+',"
said Standard & Poor's credit analyst Daniel Volpi.
Harvest relies on its operations in Venezuela and its service
agreement with PDVSA for essentially all of its operating cash
flow. The ratings on the company are constrained by the political
risk attendant to its Venezuela operations. Harvest's production
sales to PDVSA were interrupted from Dec. 14, 2002 to Feb. 6,
2003 due to political turmoil in Venezuela.
The stable outlook reflects Standard & Poor's expectations that
Harvest will maintain normal production sales to PDVSA. Until the
company becomes less reliant on its Venezuela operations, its
ratings will track those of PDVSA and Venezuela.
ANALYST: Daniel Volpi, New York (1) 212-438-7688
***********
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 America is a daily newsletter co-
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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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