/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/030814.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, August 14, 2003, Vol. 4, Issue 160 Headlines A R G E N T I N A ACINDAR: Advances In Debt Restructuring Proceedings AGROPECUARIA: Under Bankruptcy On Creditor's Request AVACA: Seeks Court's OK To Start Reorganization BANCO FRANCES: Announces Results for the 2Q03 CASA FONTANAZZI: Court Grants Creditor Request For Bankruptcy CONEXION: Nonpayment of Debt Results in Bankruptcy CONSTRUCCIONES CIVILES: Court Sets Deadline For Credit Check DIM: Receiver Verifying Claims For Bankruptcy Process EMAX: Credit Verification Process Starts FOCAR POOL: Starts Reorganization Process INFORMATION: Bankruptcy Proceeds With Credit Verification INSTALACIONES: Court Orders Bankruptcy INTENCION: Court Orders Bankruptcy INTERNATIONAL TRADE: Voluntarily Seeking Reorganization LOMA NEGRA: Creditor Banks Have Until Aug. 12 To Accept Offer MAGNETIC DREAMS: Enters Bankruptcy on Court's Order MERCADO INTERNACIONAL: Enters Bankruptcy MICROCORRUGADO: Court Designates Receiver MMP INTERNACIONAL: Bankruptcy Proceeds With Credit Verification NOVILLO: Court Orders Liquidation RAUL GARCIA: Files "Concurso Preventivo" Motion RODEL: Court Moves Deadline For Credit Verification ROSARIO PRODUCTOS: Receiver Starts Claims Verifications SANCAYET: To Undergo Bankruptcy Process SASETA HERMANOS: Assets To Be Liquidated After Bankruptcy Ruling V Y F: Court Assigns Receiver For Bankruptcy Process B R A Z I L CEMAR: Aneel Turns Cold Shoulder On GP's Takeover Bid CESP: Returns To Profitability After Local Currency Appreciation CMS ENERGY: To Sell Ownership in CPEE By Year-End CMS ENERGY: Announces Second Quarter Net Loss of $45M EMBRATEL: To Expedite Local Service Business SABESP: Condemns Creation Of Commission C H I L E TELEFONICA CTC: Seeks To Gain Foothold In WILL Market C O L O M B I A EMCALI: Administrator Aims To Reduce This Year's Deficit EMCALI: To Sign MofU With Govt. Sep. 1 To Participate In Fund C O S T A R I C A ICE: To Deploy Next-Generation Optical Systems From Lucent E C U A D O R PETROECUADOR: 17 Firms Pre-qualify For Insurance Contracts J A M A I C A AIR JAMAICA: Disgruntled Ex-Worker Sues Airline C&WJ: CAC To Look Into Customers' Complaints M E X I C O ISPAT MEXICANA: Announces End Of Strike At Cardenas Plant P E R U VOLCAN: Glencore Official Confirms Acquisition Talks - - - - - - - - ================= A R G E N T I N A ================= ACINDAR: Advances In Debt Restructuring Proceedings --------------------------------------------------- Argentine long steelmaker Acindar is making progress on its debt restructuring proceedings, reports Business News Americas. The steelmaker, which defaulted on its debt in November 2001, said that it has received notes of satisfaction from its creditors with respect to the progress of negotiations. "Banks have expressed that the proposal for the company's restructuring is in the position to be brought to their respective credit committees for approval, which if such approval is obtained, would allow the preparation, negotiation and execution of the definitive documentation to proceed," Acindar said in is first half statement. The agreement foresees repaying the debt of some US$220 million over nine years with 18 semi-annual installments at a rate of 4% a year until 2004, then Libor plus 2% for 2005, Libor plus 2.5% for 2006 and then Libor plus 3% from 2007, Acindar officials said previously. Meanwhile, Fernando Torres, an analyst from Fitch Ratings, said that Acindar has no deadline to complete the restructuring of its debt. "The steelmaker's debt restructuring is made under a new Argentine law called Acuerdo Preventivo Extrajudicial [a form of out of court settlement] for which there is no precedent," the analyst said. Buenos Aires-based Acindar, controlled by Brazilian steelmaker Belgo-Mineira and Argentina's Acevedo family, produces some 1.2Mt/y of long steel products. CONTACT: ACINDAR S.A. Jose I. Giraudo, Investor Relations Manager Phone: (5411) 4719 8674 Andrea Dala, Investor Relations Officer Phone: (5411) 4719 8672 AGROPECUARIA: Under Bankruptcy On Creditor's Request ---------------------------------------------------- Agropecuaria Holambra S.R.L. was declared bankrupt by insolvency judge Dr. Garibotto of Buenos Aires' Court No. 2. The ruling came after Rainaldo Campbell sought for the Company's bankruptcy for failure to pay its $48,367 in debt. The bankruptcy proceeds with the credit verification process, which ends on October 7, 2003. Creditors must submit their proofs of claim to the receiver, Mr. Jorge Gomez. CONTACT: Agropecuaria Holambra S.R.L. 5th Floor A Ave. Cordoba 1304 Buenos Aires Jorge Gomez 5th Floor Tte. Gral. Juan D. Peron 1558 Buenos Aires AVACA: Seeks Court's OK To Start Reorganization ----------------------------------------------- Avaca S.A., which is domiciled in Buenos Aires, is asking the city's Court No. 4 for permission to start its reorganization process. Local news source Infobae indicates that the Company has voluntarily submitted its motion for "Concurso Preventivo" to the Court. CONTACT: Avaca S.A. Ave. Gaona 1295 Buenos Aires BANCO FRANCES: Announces Results for the 2Q03 --------------------------------------------- BBVA Banco Frances SA, the holding company for Argentina's fourth-biggest bank, said Monday it had a loss of ARS7.2 million (US$2.5 million) in the second quarter, compared with a ARS324.7- million loss in the same period a year earlier, according to Dow Jones Business News. The Company, in a press statement announcing the results, said the loss was "mainly explained by a drop in Net financial income." Banco Frances reported net financial loss of ARS48.8 million, compared with a 206.0 million net income in the year earlier period. Meanwhile, deposits as of June 30, 2003 were ARS7.58 billion - a slight improvement on three months earlier, but below the ARS8.01 billion level of June 30, 2002, the report reveals. Banco Frances attributed this fall mainly to legal rulings against last year's government decision to convert dollar deposits into devalued pesos. Courts have ordered banks to return the original dollar value of a deposit to tens of thousands of savers over the past 18 months. At the end of the quarter Banco Frances said it had 7.8% market share in total deposits. The bank's total assets as of June 30 stood at ARS14.9 billion, compared to ARS16.5 billion a year earlier. More worrying, the bank's holding of government bonds rose to ARS1.13 billion at the end of the second quarter, compared with ARS284.8 million a year earlier. Despite that, Banco Frances is seen as one of the few private, foreign banks to have come through last year's financial crisis in reasonable shape. There is a remote possibility the bank could break even this year but it is more likely that losses will continue into next year, since lending recovery has been very slow, said Fitch Rating Argentina's banking analyst Ana Gavuzzo. BBVA Banco Frances is one of Argentina's three largest private banks and forms part of Spanish financial group BBVA's Latin American franchise. CONTACT: BBVA Banco Frances SA 199 Reconquista Buenos Aires Argentina 1003 Phone: +54 11 4346 4000 Home Page: http://www.frances.com.ar Contacts: Jaime Guardiola Romajaro, Chairman CASA FONTANAZZI: Court Grants Creditor Request For Bankruptcy ------------------------------------------------------------- Casa Fontanazzi S.A. was declared bankrupt by Dr. Gutierrez Cabello, insolvency judge of Buenos Aires Court No. 7, upon a request from Paulo Yahbes. The Company reportedly failed to meet its obligations on some US$42,700 it owes to Miss Yahbes. Creditors are required to submit their claims for verification to Mr. Manuel Cibeira, the court-designated receiver. CONTACT: Casa Fontanazzi S.A. 6th Floor B Tucuman 255 Buenos Aires Manuel Cibeira 5th Floor Ave. C¢rdoba 1247 CONEXION: Nonpayment of Debt Results in Bankruptcy -------------------------------------------------- Failure to pay $4871,12 of debt to Transporte Cruz del Sur SA resulted in the bankruptcy of Argentine courier Conexion Logistica Empresarial SRL. Transporte Cruz' request for the Company's bankruptcy was approved by Court No. 2 of Buenos Aires. The Court assigned Ms. Mirta Addario as receiver for the process. The credit verification process will end on October 14, after which the receiver will prepare the individual reports. Dr. Garibotto is the insolvency judge handling the case. The city's Clerk No. 4, Dr. Romeo, assists the court. CONTACT: Mirta Addario 10th Floor H Moreno 442 CONSTRUCCIONES CIVILES: Court Sets Deadline For Credit Check ------------------------------------------------------------ The credit verification period for the bankruptcy process Construcciones Civiles y Servicios Wen S.A. is undergoing will end on September 23, according to Argentine news portal Infobae. Creditors must submit their claims to the receiver, Ms. Adriana Raquel Esnaola, before the deadline. Court No. 1 of Buenos Aires decided that the Company is bankrupt and announced that it is "Quiebra Decretada". The City's Clerk No. 2 aids the court on the case. CONTACT: Adriana Raquel Esnaola Juncal 615 Buenos Aires DIM: Receiver Verifying Claims For Bankruptcy Process ----------------------------------------------------- Ms. Eva Mabel Bogado, the court-designated receiver for Buenos Aires-based company Dim S.A., is verifying creditors' claims until September 25, 2003. After the verification process, the receiver will proceed with preparations for the individual reports. The City's Court No. 17, which announced the Company's bankruptcy, expects the receiver to hand in the individual reports on November 6. Infobae relates that the general report should be filed on December 19. However, the report did not mention whether the Court has set the date for an informative assembly. CONTACT: Eva Mabel Bogado Paraguay 1465 Buenos Aires EMAX: Credit Verification Process Starts ---------------------------------------- Creditors of Emax Compania Argentina de Seguros Generales S.A., the Company, which is undergoing the bankruptcy process, are advised to submit their claims for verification to the receiver, Ms. Marcela Beatriz Bianchi. The credit verification process will end on October 22, according to Argentine news source Infobae. Court No. 20 of Buenos Aires, which handles the Company's case with assistance from Clerk No. 39, requires the receiver to submit the individual reports by December 3 this year. The general report will be filed on February 16 next year. CONTACT: Emax Compa¤¡a Argentina de Seguros Generales S.A. Piedras 784 Buenos Aires Marcela Beatriz Bianchi Bermudez 99 Buenos Aires FOCAR POOL: Starts Reorganization Process ----------------------------------------- Focar Pool S.R.L. begins its reorganization process after the Civil and Commercial Tribunal of San Isidro approved the Company's motion for "Concurso Preventivo". The Company's case is currently under the jurisdiction of the province's Court No. 2, relates Infobae. The receiver, Mr. Antonio Florencio Canada, will verify credit claims until September 3 this year. After that, he will prepare the individual reports, which must be submitted to the court by October 16. The court expects the general report to be turned in on November 27. Boletin Oficial indicates that the informative assembly will be on June 3 next year. CONTACT: Focar Pool S.R.L. Bernabe Marquez 855 San Isidro INFORMATION: Bankruptcy Proceeds With Credit Verification --------------------------------------------------------- The bankruptcy of Buenos Aires-based company Information S.A. proceeds with the verification of credit claims. The Company's creditor must submit their claims for verification to the receiver, Mr. Jorge Vilarino before October 7, 2003. The Company, whose assets will be liquidated, was announced "Quiebra Decretada" by the city's Court No. 24 recently. Buenos Aires Clerk No. 47 assists the court, relates Argentine news portal Infobae. CONTACT: Information S.A. Maipu 812 Buenos Aires Jorge Vilarino Fonrouge 1246 Buenos Aires INSTALACIONES: Court Orders Bankruptcy -------------------------------------- Instalaciones Especiales S.R.L., which is domiciled at Argentine province Salta, has entered bankruptcy. The Company's assets will be liquidated after the province's Court No. 1 ruled that the Company should be "Quiebra Descretada". The receiver, Maizzel Arrate y Asociados, will file the individual reports on August 21 this year, according to local news source Infobae. Individual reports are prepared after the verification of creditors' claims to determine the nature, existence and amount of each debt. CONTACT: Instalaciones Especiales S.R.L. Pable Aleman 2873 Salta Maizel Arrate y Asociados Los Mandarines 384 Salta INTENCION: Court Orders Bankruptcy ---------------------------------- Intencion S.A., which is domiciled in Buenos Aires, was declared bankrupt by the city's Court No. 1, reports local news source Infobae. Clerk No. 1 assists the court on the case. The designated receiver is Mr. Ruben Hugo Faure, a local accountant. Creditors are required to submit their claims for verification before September 26, 2003. CONTACT: Ruben Hugo Faure Ave. Rivadavia 1227 Buenos Aires INTERNATIONAL TRADE: Voluntarily Seeking Reorganization ------------------------------------------------------- International Trade & Investment S.A., which is based in Buenos Aires, has submitted a motion for "Concurso Preventivo" to the city's Court No. 4. The Company will start its reorganization process upon the court's approval of the filed petition. Infobae reports that the city's Clerk No. 7 assists the court on the case. CONTACT: International Trade & Investment S.A. Paraguay 419 Buenos Aires LOMA NEGRA: Creditor Banks Have Until Aug. 12 To Accept Offer ------------------------------------------------------------- Argentine cement company Loma Negra, which is owned by the country's richest woman, Amalia Lacroze de Fortabat, extended until Tuesday an offer to its creditor banks to accept a proposed restructuring of some US$400 million in debt. 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. Since the banks control the majority of Loma Negra's debt and thereby dominate the creditors committee charged with negotiating its restructuring, resolution of the bank-debt restructuring is being treated as a prerequisite for the successful renegotiation of some US$100 million in outstanding bonds. The Company, which defaulted on an estimated US$430-million in debt last year, has been negotiating the restructuring of its debt since September 2002 with Morgan Stanley as financial advisor. MAGNETIC DREAMS: Enters Bankruptcy on Court's Order --------------------------------------------------- Court No. 22 of Buenos Aires rules that Magnetic Dreams S.A., which is based in the city, is "Quiebra Decretada". Local news portal Infobae relates that the court assigned Mr. Federico Mansbach as receiver for the process. The credit verification process has started. The Company's creditors must submit their claims to the receiver before August 15. The receiver will prepare the individual reports following the completion of the credit verification. CONTACT: Magnetic Dreams Sulpacha 268 Buenos Aires Federico Mansbach Tucuman 1506 Buenos Aires MERCADO INTERNACIONAL: Enters Bankruptcy ---------------------------------------- The insolvency judge of the Civil and Commercial Court of La Rioja decided that local company Mercado Internacional is bankrupt. Information from Infobae reveals that the court has decreed the Company to be "Quiebra Decretada". The Company's creditors are required to submit their claims for verification to the court-designated receiver. Following the credit verification process, the receiver will file the individual reports, followed by the general report. However, the report did not mention whether the Court has assigned a receiver to the case or set the deadlines for the customary reports. MICROCORRUGADO: Court Designates Receiver ----------------------------------------- Buenos Aires Court No. 15 assigned Mr. Luis Abranzon as receiver for the bankruptcy of Microcurrugado Guardiani S.R.L., relates local source Infobae. Creditors must submit their claims to the receiver before the credit verification period ends on October 9. Infobae relates that the Court decided that the Company should be "Quiebra Decratada". Clerk No. 29 assists the Court on the case. CONTACT: Microcorrugado Guardiani S.R.L. Tucuman 834 Buenos Aires Luis Abranzon Pringles 835 Buenos Aires MMP INTERNACIONAL: Bankruptcy Proceeds With Credit Verification --------------------------------------------------------------- The bankruptcy process, which Buenos Aires-based company M.M.P. Internacional S.A. is undergoing, proceeds with the credit verification process. Creditors must submit their claims to the receiver, Ms. Maria del Carmen Amandule for verification before September 8 this year. The city's Court No. 5, which declared the Company's bankruptcy, requires the receiver to submit the individual reports on October 20. The general report, on the other hand, must be submitted before December 1, according to information from Infobae. CONTACT: Maria del Carmen Amandule 24 de Noviembre 1226 Buenos Aires NOVILLO: Court Orders Liquidation --------------------------------- The Civil and Commercial Tribunal of Salta ordered the liquidation of the assets of local company Novillo S.A., after it was declared bankrupt. Mr. Ricardo Carlos Sarmiento is the designated receiver for the case. The court requires the receiver to file the individual reports by August 14, while the general report is due on September 26, according to Infobae. However, the report did not mention whether the court has set a date for an informative assembly. CONTACT: Ricadro Carlos Sarmiento Las Palmeras 331 Salta RAUL GARCIA: Files "Concurso Preventivo" Motion ----------------------------------------------- Buenos Aires-based company Raul Garcia S.A. filed a motion for "Concurso Preventivo", voluntarily seeking the court's permission to start reorganization. A report from Infobae reveals that the city's Court No. 24, assisted by Clerk No. 48, handles the Company's case. If the motion is approved, the Company may then under reorganization. The court will have to assign a receiver to verify creditors' claims and prepare the necessary reports. CONTACT: Raul Garcia S.A. Ave. Cruz 6503 Buenos Aires RODEL: Court Moves Deadline For Credit Verification --------------------------------------------------- The Civil and Commercial Tribunal of Cordoba moved the deadline for credit verification concerning the reorganization of local company Rodel SA. A report by Argentine news source Infobae indicates that creditors now have until November 25 to have their claims verified. However, the report did not mention whether the court has assigned a receiver to the case nor the deadline for the individual reports. The deadline for the general report was indicated as December 26 this year. An informative assembly will be held on June 7, 2004. ROSARIO PRODUCTOS: Receiver Starts Claims Verifications ------------------------------------------------------- Creditors of Buenos Aires-based Rosario Productos Quimicos S.R.L. are required to submit their claims to the receiver, Ms. Noemi Zulema Vivares. Infobae relates that the claims verification process will end on September 22, this year. Buenos Aires Court No. 1 ruled that the Company is "Quiebra Decretada". The city's Clerk No. 1 assists the court on the case. CONTACT: Noemi Zulema Vivares Ave. Corrientes 2626 Buenos Aires SANCAYET: To Undergo Bankruptcy Process --------------------------------------- Sancayet S.A. will undergo the bankruptcy process after Court No. 24 of Buenos Aires declared it "Queibra Decretada". Infobae indicates that the city's Clerk No. 47 aids the court on the case. The designated receiver, Mr. Ernesto Borzone, will verify creditors' claims until October 8 this year. The report did not indicate whether the court has set the deadlines for the individual and general reports. CONTACT: Sancayet S.A. Ave. Directorio 4709 Buenos Aires Ernesto Borzone Cuenca 1464 Buenos Aires SASETA HERMANOS: Assets To Be Liquidated After Bankruptcy Ruling ---------------------------------------------------------------- Assets of Catamarca-based Saseta Hermanos S.R.L. will be liquidated following a ruling from the province's Court No. 1, which placed the Company under bankruptcy. Argentine news source Infobae reveals that the Civil and Commercial Tribunal of Catamarca decided that the Company is "Quiebra Decretada". The assigned receiver for the case is Mr. Hugo Rolando Pintos, an accountant from San Fernando del Valle. The individual reports, which are prepared after the verification of credit claims, is due for filing on September 24 this year. The general report must be filed by November 5. CONTACT: Saseta Hermanos S.R.L. No. 930 Ave. Virgen del Valle San Fernando del Valle Catamarca Hugo Rolando Pintos Eusebio Ruzo sin numero San Fernando del Valle Catamarca V Y F: Court Assigns Receiver For Bankruptcy Process ---------------------------------------------------- Court No. 22 of Buenos Aires designated Mr. Juan Enrique Reinhardt as receiver for the bankruptcy process of local company, V y F S.R.L., reports local news source Infobae. Creditors have until September 9 this year to have their claims verified. Infobae relates that the court requires the individual reports to be submitted by November 11 and the general report by December 23. CONTACT: Juan Enrique Reinhardt Viamonte 1348 Buenos Aires =========== B R A Z I L =========== CEMAR: Aneel Turns Cold Shoulder On GP's Takeover Bid ----------------------------------------------------- The bid by Brazilian private equity fund GP Investimentos to take control of Maranhao state distributor Cemar was ditched by the country's power regulator Aneel. Citing a statement released by the regulator, Business News Americas relates that GP failed to strike an agreement with Cemar's major creditors - Eletrobras and Eletronorte. Cemar has debts of around BRL806 million (US$264 million), over BRL350 million of which is owed to Eletrobras and Eletronorte. Late Tuesday, Aneel director general Jose Mario Abdo and mines and energy minister Dilma Rousseff held a press conference to present the future plans for Cemar, Business News Americas reports. One of the most immediate concerns will be to extend Aneel's intervention in Cemar, which was first authorized on August 21, 2002, renewed earlier this year and expires next week. CONTACT: COMPANHIA ENERGETICA DO MARANHAO Av. Colares Moreira, 477 65075-441 - Sao Luiz- MA PHONE: (98) 217-2119 FAX: (98) 235-3024 WEBSITE: http://www.cemar.com.br/ CREDITORS: CENTRAIS ELETRICAS BRASILEIRAS S.A. - ELETROBRAS Avenida Presidente Vargas 409, 13 Andar 20071-003 Rio de Janeiro Brazil Phone: (21) 2514-5151 Fax: +55-21-2242-2697 Home Page: http://www.eletrobras.gov.br Contacts: Cladio da Silva avila, President Jose Alexandre Nogueira de Resende, Director of Financial and Market Relations Investor Relations Division Phone: (0XX21) 2514-6207 / 2514-6333 Av. Presidente Vargas, 409 - 9 andar 20071-003 - Rio de Janeiro - RJ Email: arlindo@eletrobras.gov.br CENTRAIS ELETRICAS DO NORTH DO BRAZIL - ELETRONORTE Av. Presidente Vargas, 489 -13 andar. 20071-003- Rio do Janeiro RJ Phone: + (55+61) 429 5139 Fax: +(55+61) 328 1373 E-mail: elnweb@eln.gov.br Home Page: http://www.eln.gov.br/ Contact: Mr. Arlindo Soares Castanheira, Investor Relations Phone: 55 21 2514.6331 55 21 2514.6333 Fax: 55 21 2242.2694 E-mail: arlindo@eletrobras.gov.br CESP: Returns To Profitability After Local Currency Appreciation ---------------------------------------------------------------- The appreciation of the Brazilian real in the second quarter of the year helped Sao Paulo's state-owned generator Cesp to steer itself back to profitability during the period. According to a Business News Americas report, Cesp reported net profits of BRL794 million (today US$261mn) for the second quarter of the year, compared to a loss of BRL1.52 billion in the same year-ago quarter. Cesp said the real gained 14.3% against the US dollar in the second quarter of the current year, reducing the overall burden of its foreign denominated debt. Foreign debt as a percentage of total debt fell to 71% at the end of June from 84% at the beginning of the quarter, Cesp said. The Company's net revenues during the quarter fell 24% to BRL470 million, from that of 2Q02, as power production fell 21.5% due to the expiry of 25% of Cesp's initial contracts. Cesp posted an operating profit of BRL1.2 billion, compared to an operating loss of BRL1.54 billion in the 2Q02, the Company said. Cesp is preparing new issues of debentures and energy certificates (CTEEs). The report also reveals that the Company's creditors are due to meet on August 14 to vote on a proposal to reschedule US$520 million worth of bonds. CONTACT: Companhia Energetica De Sao Paulo (CESP) Rua da ConsolaO o, 1.875 CEP 01301 -100 S o Paulo, Brazil Phone: +55-11-234-6322 Fax: +55-11-287-0871 Home Page: http://www.CESP.com.br/ Contact: Mauro G. Jardim Arce, Chairman Ruy M. Altenfelder Silva, Vice Chairman Vicente Kazuhiro Okazaki, Finance Director CMS ENERGY: To Sell Ownership in CPEE By Year-End ------------------------------------------------- CMS Energy plans to sell its interest in Brazilian power distribution holding CPEE by the end of the year, Business News Americas reports, citing COO David Joos. CMS owns a 93.9% stake in the CPEE Group through subsidiary CMS Electric and Gas. The group consists of distributors Jaguari de Energia, Sul Paulista de Energia, Luz e Forca de Mococa and Equipame, whose concessions are primarily in Sao Paulo state. The planned sale comes as CMS continues to divest its Latin American operations as part of its US$900 million international asset divestment program for 2003, in order to focus on North American assets. The Company, according to spokesperson Jeff Hollyfield, plans to divest all of its Latin American assets in the long term, but it won't be a fire sale. "CMS Energy is going to be patient and when it makes financial sense to do an asset sale, it will be done, but if it doesn't make financial sense then we won't do it," Hollyfield said. CMS ENERGY: Announces Second Quarter Net Loss of $45M ----------------------------------------------------- CMS Energy (NYSE: CMS - News) announced a reported net loss of $45 million, or $0.31 per share, for the second quarter of 2003, an improvement over the same quarter of 2002, when it reported a net loss of $74 million, or $0.55 per share. Charges linked to the sale of the CMS Panhandle Companies made up the bulk of the reported quarterly loss. Ongoing (non-Generally Accepted Accounting Principles) net income for the second quarter was $1 million, or $0.01 per share, compared to ongoing net income of $17 million or $0.13 per share in the same period of 2002. Ongoing earnings provide a key measure of the Company's present operating financial performance, unaffected by discontinued operations, asset sales, accounting changes or other items detailed in the attached summary financial statements. Compared to last year, the 2003 second quarter ongoing results reflect benefits from favorable movement in foreign exchange rates and higher non-regulated business earnings, which were more than offset by higher financing costs and reduced electric sales at CMS Energy's principal subsidiary, Consumers Energy. Temperatures for the spring and early summer averaged about 2 degrees lower than the similar period last year and as a result electric sales were down 4 percent. The higher financing costs reflect the $925 million in bridge financing that CMS Energy completed in April. For the first six months of 2003, CMS Energy reported net income of $34 million, or $0.24 per share, up from a loss of $32 million, or $0.24 per share, for the first half of 2002. Ongoing income was $79 million, or $0.55 per share, compared to $96 million, or $0.72 per share, for the same period in 2002. Despite the continuing impact of cooler weather, the Company reaffirmed its full-year earnings guidance of $0.80 to $0.90 per share on an ongoing basis, citing continued aggressive cost management. The Company adjusted its guidance for full-year reported earnings from roughly break even to a loss of about $1 per share, principally because of changes in the timing of asset sales, the expected proceeds from those sales, pension expenses linked to the CMS Panhandle Companies sale, and increased financing costs. CMS Energy continues to make progress on its financial plan, reaching milestones during the second quarter and early July that include: * Closing more than $2 billion in asset sales -- CMS Panhandle for $1.8 billion, including $1.2 billion in assumed debt -- CMS Field Services for $113 million and a $50 million contingent note -- CMS's Guardian pipeline interest for $26 million -- Atacama transmission lines for $38 million * Completing $2.25 billion in financings at CMS Energy and Consumers Energy to extend maturities and reduce interest costs -- At CMS Energy * $925 million in bridge bank financing * $300 million of 7.75 percent, seven-year senior debt * $150 million of 3.375 percent convertible debt -- At Consumers Energy * $875 million in first mortgage bonds with five- to 10-year maturities and interest rates of 4 percent to 5.375 percent * Consumers Energy ranked second nationally in customer satisfaction for combined electric and gas utilities in an annual survey by the American Customer Satisfaction Index. Ken Whipple, CMS Energy's chairman and chief executive officer, said the latest financial statements show the Company is continuing to make progress in executing its back-to-basics strategy. "We've got a solid business plan and it continues to show results. We're doing what we said we were going to do: increase our financial flexibility and liquidity and implement our back- to-basics strategy," Whipple said. "Our $2.25 billion in recent financings are an important part of our financial plan. They allowed us to extend maturities and capitalize on some low- interest rate opportunities. There are still many challenges ahead, but we continue to make progress toward our goal of becoming a smaller, stronger company." CMS Energy is an integrated energy company, which has as its primary business operations an electric and natural gas utility, natural gas pipeline systems, and independent power generation. To see financial statements: http://bankrupt.com/misc/CMS_Energy.htm EMBRATEL: To Expedite Local Service Business -------------------------------------------- Embratel announced Tuesday the signature of a letter of intent for the acquisition of V‚sper Sao Paulo S.A. and V‚sper S.A., local service competitor companies of the following regions of Brazil: Sao Paulo (Region III) and North & Northeast (Region I). V‚sper provides its local services to 17 states covering 76% of the population. This acquisition will enable Embratel to enhance the scope of its local voice service business, including the competitive offer of broadband access through EV-DO technology to small-sized businesses, small offices and residential customers. In 2002 V‚sper's revenue came to R$388 million. The joint performance of Embratel and the two local mirror companies plays a part in the preservation of the competitive model in Brazil. The acquisition of V‚sper by Embratel emphasizes its commitment toward being the leading telecommunications company in Brazil with a complete array of services. Residential and corporate customers and broadband Internet users will be offered a solid alternative vis-…-vis the monopolistic local service carriers. The conclusion of such acquisition will be contingent upon final agreements, previous conditions and the necessary governmental authorizations. Acquisition details The letter of intent involves the acquisition by Embratel of 100% of the stocks of both V‚sper companies. The acquisition of V‚sper will involve no bank debt or disbursement by Embratel. Qualcomm and V‚sper will enter into an agreement for the sale followed by a sale/leaseback agreement covering the transmission towers, with the purpose of raising funds for the Company. These funds will be used to pay off the entire actual bank debt and to finance any short-term requirement. Additional fund requirements of V‚sper in 2003 will be provided by the synergy obtained with Embratel's joint operation and by the actual cash resources. Embratel will build up its competitive edge With the acquisition of V‚sper, Embratel will be able to expedite its business plan for local service and implement its broadband internet access competing with ADSL. Embratel will be in a position to economically enhance its local service scope by providing individual lines to small businesses and residential customers, adding these segments to the service currently provided to big-sized companies requiring multiple lines. V‚sper has around 500,000 residential and small business customers that use mostly prepaid service plans. V‚sper's revenue came to R$388 million in 2002, 34% of which coming from the provision of local telephone services using fiber optics technology, offered to 2,800 corporate customers. Additionally, V‚sper has implemented EV-DO technology in Sao Paulo, offering broadband internet access. This type of access can be provided along with the telephone line or on a separate basis, and is competitive with the existing ADSL technologies, offering an additional wireless solution edge. Embratel's solution will serve the residential market and offer broadband internet access as well. Today V‚sper is equipped with a network and switching center infrastructure that are more than adequate to double its customer base with no additional investment. V‚sper's network evolution will use CDMA technology. Synergy with Embratel The scope and range of Embratel's operations will provide the necessary scale - fixed costs reduction, call centers, network and interconnection for long distance calls to V‚sper. Furthermore, Embratel will enhance its trade name and its marketing power so as to increase the sale of services currently offered by V‚sper. Most of Embratel's 20 million customers will have a choice with respect to their local services. Embratel is of the opinion that the synergy obtained with the joint operation of the two companies will enable V‚sper to generate a positive EBITDA in 2004. Embratel is being advised by UBS Warburg to carry out this operation. About V‚sper: V‚sper was formed early in 1999, being licensed through an auction to operate local telephone services in Regions I and III covering 76% of the Brazilian population. The license also enables the use of wireless access in the 1,9Ghz frequency valid until 2019 and extendable for over 20 years. V‚sper has implemented the CDMA wireless technology in 87 cities, through which most of its residential and small-sized companies are served. In addition to offering services to residential and small business customers, V‚sper uses fiber optics to provide services to big-sized companies. About Embratel: Embratel is the premium telecommunications provider in Brazil, offering a wide range of advanced telecommunication services over its state-of-the-art network. The company is national leader in data and Internet services, in a strategic position to become the only local carrier providing national corporate coverage. Embratel provides the following services: advanced voice telephone, high-speed data, Internet, data communication via satellite, corporate networks and local corporate services. Embratel is in a privileged position to become the South American carrier with an all-distance network. Embratel network has national coverage with almost 17,500 miles of optic cables, representing around one million miles of fiber optics. EMBRATEL: Advertising, Press and Public Relations Department Tel: (02121) 2121 7837 / 2121 6291 Fax: (02121) 2121 7791 Mid-West- Phone: (02161) 242-9058 / 2845 / 916-9188 Attention: Fl vio Resende E-mail: cmsocial@embratel.net.br URL: www.embratel.com.br SABESP: Condemns Creation Of Commission --------------------------------------- The decision by the Sao Paulo's city council to create a commission to look into state water utility Sabesp's behavior angered the latter, says Business News Americas. Sabesp President Dalmo Nogueira criticized the move saying, in addition to not having legal or factual proof, the allegations that prompted the creation of a commission are "completely inappropriate" and demonstrate ignorance regarding Sabesp's work in Sao Paulo city, or the other 365 municipalities it serves throughout the state The city council created the commission following allegations that question service quality and investment levels. Sabesp is Brazil's largest water utility in terms of users, providing water to 25 million residents and sewerage services to 16.8 million residents. It plans to invest BRL656 million (US$279mn) this year, while capital expenditure for the 2003-2007 period will reach BRL3.9 billion. CONTACT: Helmut Bossert Phone: (5511) 3388-38664 Email: hbossert@sabesp.com.br Marisa Guimaraes Phone: (5511) 3388-9135 Email: marisag@sabesp.com.br ========= C H I L E ========= TELEFONICA CTC: Seeks To Gain Foothold In WILL Market ----------------------------------------------------- An official from Telefonica CTC Chile SA revealed that the country's largest telecommunications company is considering making a bid for a license to enter the wireless local loop, or WILL, Internet access market, relates Business News Americas. According to Rodrigo Torres, CTC executive in charge of network and services, major telecoms and the government industry regulator Subtel are currently in the initial stages of talks concerning a new auction. "We're interested but first we'll have to see whether the basic requirements will be attractive for CTC", he added. WILL offers broadband, or high-speed, Internet and telephone access. The only company which has the WILL license in Chile is CTC's rival, Entel SA. =============== C O L O M B I A =============== EMCALI: Administrator Aims To Reduce This Year's Deficit --------------------------------------------------------- In an effort to reduce Colombia's Cali-based multi-utility Emcali's deficit by COP640 billion (US$223mn) to COP60 billion this year, an austerity plan must be achieved. Evamaria Uribe, the head of Colombia's utilities regulator Supervicios, which has been running Emcali for more than three years now, revealed the plan to government news agency CNE, says Business News Americas. In addition, there must also be an improvement in the contracts system to be able to cut the deficit to the target amount. EMCALI: To Sign MofU With Govt. Sep. 1 To Participate In Fund ------------------------------------------------------------- Creditors of Emcali and the government are due to sign a memorandum of understanding (MOU) on September 1 to participate in the so-called Social Capitalization Fund, to which present creditors and the government would contribute all of their debt with Emcali, says Business News Americas. The fund, as Emcali's only creditor, would then restructure the Company's debt. Emcali, which has debts totaling some US$1 billion, is facing severe financial problems. =================== C O S T A R I C A =================== ICE: To Deploy Next-Generation Optical Systems From Lucent ---------------------------------------------------------- Lucent Technologies (NYSE: LU) announced Wednesday that Instituto Costarricense de Electricidad (ICE), the sole telecommunications provider in Costa Rica, will deploy next-generation optical solutions from Lucent. The systems will enable ICE to provide mobile and wireline services using a common transport network, which increases network capacity, reduces equipment and power costs, and saves space in the central office environment. Under the terms of the agreement, Lucent, through its Business Partner Coasin Costa Rica, will supply ICE with a variety of optical networking systems to expand its nationwide SDH/WDM transport network, including the Metropolisr ADM MultiService Mux, LambdaUniter MultiService Switch (MSS), and the WaveStarr ADM 16/1. COASIN Costa Rica, a Lucent Business Partner, is working with ICE and Lucent to supply and implement the Lucent solution. Lucent's end-to-end solution will allow ICE to expand its SDH network and offer new services outside the major metropolitan areas as it integrates seamlessly into ICE's existing infrastructure, avoiding the need for an overlay network built for new services. Mesh restoration capabilities on the LambdaUniter MSS will also help ICE to migrate to new mesh-based networks, while leveraging traditional protection architectures. "We're pleased to be working with ICE and Lucent Technologies to upgrade and expand this network," said Francisco Di Napoli, general manager COASIN Costa Rica. "LambdaUniter MSS is the best of the next generation of optical equipment, and it will keep ICE on the leading edge of telecommunications solutions. Our partnership with Lucent enables us to deliver these high-quality, next-generation solutions to our customers in the region." "We are pleased to address ICE's growing business needs through the deployment of Lucent's cutting-edge network transport equipment, setting the stage for future next-generation optical infrastructure expansion," said Osvaldo di Campli, Lucent Technologies' regional sales vice president for Central America and the Caribbean. "Our products will help ICE significantly upgrade its backbone transport network in terms of system capacity, technical advantage, reliability, security as well as operational flexibility, and our partnership with COASIN ensures that ICE will receive top quality service and installation." COASIN Costa Rica led the sales process through the presales cycle and will manage the implementation and deployment of the solution. "As our Business Partners program is gaining traction in Latin America, our partners are helping us gain critical projects and penetrate new market segments", said Francisco Berrueta, sales director Lucent BusinessPartners organization Latin America. The LambdaUnite MSS brings together switching capacity, functionality, density and flexibility into one small piece of equipment and its standards-compliant technology enables customers to seamlessly integrate with existing backbone and metro optical networks. Sold for the first time in the Latin America region, the product provides a bridge between data- intense metro networks and high-speed optical core networks, connecting cities, campuses and corporate networks to larger, long-haul public networks. For more information on LambdaUniter MSS visit http://www.lucent.com/lambdaunite.Metropolisr ADM serves as an integrated Ethernet-over-SDH multiplexer, enabling service providers to migrate from existing time-division multiplexed (TDM) networks to data-aware packet networks. With a deployed base of more than 25,000 systems worldwide, the WaveStarr ADM 16/1 product is Lucent's successful optical multiplexer for the SDH market, and can be used for interoffice, access or regional applications. About ICE ICE is the sole supplier of telecommunications and energy services in Costa Rica. It is a state entity that has distinguished itself in Central America as a leader in the development and implementation of new technologies. It offers a wide variety of services in Costa Rica and has several technological platforms that allow it to diversify the service options for its customers, both residential and corporate. About COASIN Founded in Chile on 1966, COASIN is now a multinational operation focused on integrating Information Technology solutions for carriers and corporate customers. Its operations in Costa Rica started in 1994 and since then it has supplied major transport networks for the largest corporations and other institutions in the government, banking and industrial segments in Costa Rica. About Lucent Technologies The Lucent Advantage Business Partner program includes resellers, systems integrators and distributors who deliver Lucent products to enterprises, ISPs and service providers worldwide. For more information on the Advantage Business Partner program, visit its website at http://www.lucent.com/partner/advantage. Lucent Technologies, headquartered in Murray Hill, N.J., USA, designs and delivers networks for the world's largest communications service providers. Backed by Bell Labs research and development, Lucent relies on its strengths in mobility, optical, data and voice networking technologies as well as software and services to develop next-generation networks. The company's systems, services and software are designed to help customers quickly deploy and better manage their networks and create new, revenue-generating services that help businesses and consumers. For more information on Lucent Technologies, visit its Web site at http://www.lucent.com. ============= E C U A D O R ============= PETROECUADOR: 17 Firms Pre-qualify For Insurance Contracts ---------------------------------------------------------- Twelve companies made it to Petroecuador's pre-qualification list to bid for the Ecuadorian state oil company's insurance policies by the August 27 deadline, says Business News Americas. These are Petroecuador's current main insurer Colonial, as well as Asegurador del Sur, Atlas, Condor, Coopseguros del Ecuador, El Fenix, Integral, Interoceanica, La Union, Panamericana del Ecuador, Seguros Rocafuerte, and Ecuatoriano-Suiza. Petroecuador plans to pre-qualify at least five more. The companies still being processed by the Company's insurance unit, are Olympus, Alianza, Sudamerica, AIG and Sulamerica. Petroecuador will declare a winner by September 27, which is the date when the policy must take effect. The Company is seeking coverage of up to US$500 million. Petroecuador's assets are now valued at US$3.2 billion. The Company paid US$28 million in insurance premiums in 2002- 2003, but has increased its budget this year to US$30 million to provide some cushion if bids come in higher than last year. The Company will call for bids on 15 other policies in October, the estimated cost of which is US$1.5 million - 2 million. ============= J A M A I C A ============= AIR JAMAICA: Disgruntled Ex-Worker Sues Airline ----------------------------------------------- Jamaican national airline Air Jamaica is now facing a lawsuit lodged against it by a former employee, reveals RJRNews.Com. Miguel Gallimore, who worked for Air Jamaica between April 1997 and March of the current year, filed a suit against the airline alleging, that the latter breached his contract of employment when he was dismissed in March. In addition, Mr. Gallimore is seeking damages in his US$3-million (200 million Jamaican dollars) suit for what he alleges is the airline's use of his image in a promotion campaign without his permission. According to court documents obtained by RJR News, Mr. Gallimore is also claiming that he has not been paid commission for business secured for Air Jamaica, in keeping with his contract. Meanwhile, Air Jamaica claims no knowledge about the lawsuit, which was filed in the Dade County Circuit Court. C&WJ: CAC To Look Into Customers' Complaints -------------------------------------------- The Consumer Affairs Commission (CAC) said it has received several complaints from customers of both Digicel, and Cable & Wireless Jamaica that they are being cheated out of talk time by the companies, says the Jamaica Observer. With regards to Digicel, its customers are complaining that they have not quite benefitted from the savings that Digicel promised in its recently introduced 'talk-for-ten minutes and pay-for- three minutes' promotion. "We have got calls from Digicel customers....we are investigating whether in fact Digicel customers do save...some saying that it worked, and also calls that it does not work," says Raymond Pryce, director of research and communication at the CAC. With regards to Cable & Wireless Jamaica, the consumer watchdog agency is also investigating whether C&WJ was unreasonable in its recent decision to reduce the expiry dates on its new GSM phone cards. C&WJ decided to cut the expiration time on its $100 cards from 30 days to 21 days. The $500 cards now expire within 45 days, down from 60 days. "We have gotten consumer complaints about C&W expiry dates," Pryce said. "The CAC will make its finding by month-end and is currently compiling information about both systems." Digicel and C&W could each be fined a maximum of $5 million if found to have committed the offences claimed by their consumers. However, before reaching this stage, the companies would be given opportunities to rectify the situation. The telecom operators have been given until August 15 to respond to the issue. =========== M E X I C O =========== ISPAT MEXICANA: Announces End Of Strike At Cardenas Plant --------------------------------------------------------- Ispat Mexicana S.A. de C.V., ("Imexsa") the Mexican subsidiary of Ispat International N.V. (NYSE:IST US; AEX: IST NA), is pleased to announce that the strike at its Lazaro Cardenas plant has ended, and that production will resume Tuesday. Workers of Sindicato Nacional de Trabajadores Mineros, Metalurgicos y similares de la Republica Mexicana (the National Mining, Mineral and similar workers Union of Mexico) Section 271, declared the strike at Imexsa's Lazaro Cardenas plant and at three other companies on August 1, 2003 at 12:01 AM. The strike was the result of a disagreement between the Union and one of the other three companies. The company in disagreement with the workers' union is not related to Ispat Mexicana or any other subsidiary of Ispat International N.V. CONTACT: ISPAT INTERNATIONAL N.V. T. N. Ramaswamy, Director, Finance Tel: +44 20 7543 1174 ISPAT INTERNATIONAL N.V. Paul Weigh, Corporate Communications Tel: +44 20 7543 1172 ======= P E R U ======= VOLCAN: Glencore Official Confirms Acquisition Talks ---------------------------------------------------- An official from Glencore International confirmed that the Switzerland-based company is indeed in talks with Peru's cash- strapped zinc miner Volcan Compania Minera to buy the latter's assets, relates Reuters. But "financial issues" remain, the Glencore official, who asked to remain anonymous, said, adding that negotiations did not mean that Volcan had ruled out other suitors. "Our organization is talking and negotiating with Volcan," although it (Volcan) has not ruled out the proposals of other companies, which are still valid," the official said. "I understand there are series of financial issues involved in the operation that until now are not allowing the operation to conclude," the official said. Some of Volcan's bank creditors hold shares in the Company as a guarantee for a part of Volcan's US$240-million debt. Volcan is looking for a buyer in order to address its financial woes, which stemmed from the purchase of the mining unit Mahr Tunel at a privatization sale and later the Paragsha mine, formerly Cerro de Pasco. These acquisitions from state-owned Centromin helped Volcan rack up heavy debt. Earlier, Brazil's Paribuna de Metais, part of Brazil's industrial conglomerate Votorantim, U.S.-based BHL Resources and tin miner Minsur have expressed interest in the cash-strapped zinc miner. *********** 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- published by Bankruptcy Creditors' Service, Inc., Trenton, NJ, and Beard Group, Inc., Washington, DC. John D. Resnick, Edem Psamathe P. Alfeche and Oona G. Oyangoren, Editors. Copyright 2003. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is $575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *