/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/030820.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 Wednesday, August 20, 2003, Vol. 4, Issue 164 Headlines A R G E N T I N A ACCION BURSATIL: Court Orders Bankruptcy AGONOR: To Hold Informative Assembly Soon ALIANZA ESTRATEGICA: Gets Court OK To Reorganize BAITEX: Court Assigns Receiver For Bankruptcy Proceedings BANCO SUQUIA: Former French Parent Buys Back Substantial Stake CHOCHA: Credit Verification Deadline Expires Today CLINICA Y SANATORIO: Enters Bankruptcy on Court Ruling COMERCIAL GNC: Court Issues Bankruptcy Order CP DEL PLATA: Court Assigns Receiver For Reorganization CP 25 DE MAYO: Court Orders Bankruptcy DIRECTV LA: 2ND Motion To Extend Lease Decision Period EDESUR: Shareholders Approve Bond Program Extension FARGO: Bimbo's Acquisition of Minority Stake Spurs Controversy FOLOPOLIMEROS DEL SUR: Bankruptcy Proceeds With Claims Check H Y L GERMIGNIANI: Civil, Commercial Tribunal Orders Bankruptcy INTERINDUMENTARIA: Court Authorizes Bankruptcy JETAFE: Court Approves Creditor's Bankruptcy Petition LAPA: Court Sets Deadline For Creditor Claims In Bankruptcy PETROBRAS ENERGIA: Anounces Forward-looking 2Q03 Results Info SANCOR: Moody's Latin America Rates US$300M of Bonds `D' SECURITY CONSULTANTS: Court Assigns Receiver To Reorganization SIMCORD: Court Initiates Bankruptcy Process TATANCA: Court Sets Deadlines For Individual, General Reports TEAM PRODUCCIONES: Bankruptcy Proceeds With Claims Verification THALIA S.A.: Enters Bankruptcy On Court Order THUNDER: Receiver Assigned For Bankruptcy TOKIO FOOD: Voluntarily Files For Reorganization B E R M U D A GLOBAL CROSSING: Pulling Plug on MFS Cable Capacity Sales Pact B R A Z I L AES SUL: Bank Lending Syndicate May Call In $300M Debt CESP: To Place $107M of CTEEs On Brazilian Futures Exchange COSIPA: Reports 2Q03 Results ELETROPAULO METROPOLITANA: BankBoston Calls In $305M Loan MRS LOGISTICA: Ratings Unaffected by Second-Quarter Results C H I L E D&S: Implements Debt Restructuring Program D O M I N I C A CENTENNIAL COMMUNICATIONS: Signs Agreement With Nortel J A M A I C A BLAISE MERCHANT/CENTURY FINANCIAL: Payout Efforts Underway M E X I C O ALESTRA: Shareholders Advance Better Restructuring Terms ALESTRA: Reduces Net Loss in the 1H03 GRUPO TFM: Announces LPG Transport For Pemex International GRUPO TMM: Stockholders Disapprove Grupo TFM Sale T R I N I D A D & T O B A G O BWIA: Chairman Blames Conflict of Interest For Board Exodus V E N E Z U E L A CITGO: 2Q03 Results Show Modest Improvement - - - - - - - - - - ================= A R G E N T I N A ================= ACCION BURSATIL: Court Orders Bankruptcy ---------------------------------------- The Civil and Commercial Tribunal of La Plata ruled that local company Accion Bursatil S.A. is "Quiebra Decretada", relates local news source Infobae. The Company's assets will be liquidated upon completion of the bankruptcy process. Mr. Jorge Mauricio Gobbi is assigned as receiver who will authenticate creditors' claims. The report says that the verification process will proceed in its normal course. CONTACT: Accion Bursatil S.A. No. 535 Calle 48 La Plata AGONOR: To Hold Informative Assembly Soon ----------------------------------------- The informative assembly for the reorganization of Argentine company Agonor S.A. will be held on Friday, August 22, according to a local source, adding that the meeting will start at 10 o'clock in the morning. However, the report did not reveal the where the meeting would be held. Dr. Alicia Gloria Zurron was appointed by Buenos Aires' Court No. 24 as the Company's receiver. The city's Clerk No. 48 assists the court on the case. The credit verification process has been completed and the individual and general reports have been submitted to the court. CONTACT: Dr. Alicia Gloria Zurron Phone: 4247-9409 Email: zurronalicia@cponline.org.ar ALIANZA ESTRATEGICA: Gets Court OK To Reorganize ------------------------------------------------ Argentine company Alianza Estrategica Argentina S.A. received court permission to undergo reorganization relates local news source, Infobae. The company's motion for "Concurso Preventivo" was approved by Buenos Aires' Court No. 2. The city's Clerk No. 4 works with the court on the case. The report adds that the deadline for the verification of credit claims is September 22 this year. The receiver is instructed to have the individual reports ready by November 3, while the general report must be submitted on December 15. An informative assembly will be held on May 21 next year. CONTACT: Jorge Feito San Martin 662 Buenos Aires BAITEX: Court Assigns Receiver For Bankruptcy Proceedings --------------------------------------------------------- Ms. Silvia Alejandra Requejo, the receiver for bankrupt Argentine company Baitex will close the credit verification process today, August 20. The receiver will now prepare the individual reports as required by the court. The Company's case is handled by Buenos Aires' Court No. 14, accorinding to an earlier report from the Troubled Company Reporter - Latin America. The Court requires the receiver to have the individual reports filed by October 1 this year. The receiver is also required to prepare the general report, which must be submitted by November 12. CONTACT: Silvia Alejandra Requejo Tucuman 2430 Buenos Aires BANCO SUQUIA: Former French Parent Buys Back Substantial Stake -------------------------------------------------------------- Credit Agricole returns to Banco Suquia with some 22% participation in the Argentine unit, reports Business News Americas. Suquia is one of the three Argentine subsidiaries the French bank left last year amid the country's deep economic crisis. The other two are Banco Bisel and Bersa. Federally owned Banco Nacion took over the three banks and put them up for sale. Suquia was auctioned earlier this month resulting in the submission of technical and financial bids from three Argentine groups - Roggio, Banex, Dinosaurio. Nacion was slated to announce the winner on August 15 and has also said it will begin the sales processes for Bisel and Bersa on August 26. Credit Agricole, one of Europe's largest banks, said it had gradually acquired shares in Suquia between August 14 last year and July 31 this year. CONTACT: BANCO SUQUIA S.A 25 de Mayo 160 Cordoba 5000 Cordoba Argentina Phone: 0351-422-2048 Fax: 0351-420-0279 E-mail: relacioninversores@bancosuquia.com.ar Home Page: http://www.bancosuquia.com.ar/ Contact: Bernard Pierre Jean Brousse, Vice-President Nestor Jose Belgrano, Director BANCO DE ENTRE RIOS S.A. (BERSA) Monte Caseros 128 Parana 3100 Entre Rios Argentina Phone: 0343-4201200 Fax: 0343-4213869 Contact: Alberto Roque Ferrero, Vice-President BANCO BISEL S.A. Mitre 602 Rosario 2000 Santa Fe Argentina Phone: 0341-4200300 Home Page: http://www.bancobisel.com.ar/ Contact: Guillermo Harteneck, President Jean Luc Perron, Vice President Bernard Brousse, Vice President CHOCHA: Credit Verification Deadline Expires Today -------------------------------------------------- The credit verification period for the bankruptcy of Argentina- based shoe producer Chocha S.A. ends today, August 20. The receiver, Mr. Dante Giampolo, who verifies proofs of claims will proceed with the preparation of the required individual reports. The Troubled Company Reporter - Latin America earlier reported that the Company was declared bankrupt upon the request of its creditor, Ramiro Ferrer. The Company reportedly failed to meet its obligations on $41,038 in debt to Mr. Ferrer. The case is under the jurisdiction of Dr. Carlos Villar, insolvency judge from Buenos Aires' Court No. 23. CONTACT: Chocha S.A. 6th Floor D Bartolome Mitre Street No. 1738 Buenos Aires Mr. Dante Giampolo 5th Floor C Anchorena St. No. 627 Buenos Aires Phone: 48629266 CLINICA Y SANATORIO: Enters Bankruptcy on Court Ruling ------------------------------------------------------ Court No. 8 of Buenos Aires ruled that Clinica y Sanatorio Cordoba S.A. is "Quiebra Decretada", reports Infobae. The Company's assets will be liquidated upon completion of the bankruptcy process. The designated receiver is Ms. Maria del Carmen Lence, to whom creditors must present their claims for verification. The authentication process ends on September 18, the report adds. CONTACT: Maria del Carmen Lence Sarmiento 1179 Buenos Aires COMERCIAL GNC: Court Issues Bankruptcy Order -------------------------------------------- Argentine company Comercial GNC S.A. is declared bankrupt by Buenos Aires Court No. 4, according to local news portal Infobae. The source adds that the city's Clerk No. 8 works with the court on the case. Creditors must submit their claims for verification to the designated receiver, Ms. Elba Gabriela Hirigoity, before October 6 this year. Following that period, the receiver will prepare the necessary reports. CONTACT: Elba Gabriela Hirigoity Ave. Cordoba 1388 Buenos Aires CP DEL PLATA: Court Assigns Receiver For Reorganization ------------------------------------------------------- Clinica Privada del Plata S.A. is placed in the hands of Buenos Aires accountant Ana Maria Varela, who is designated as the Company's receiver. Creditors are required to present their claims for verification before September 15. The city's Court No. 3 ruled that the Company undergo the bankruptcy process. The court, which works with Clerk No. 6 on the case, instructed the receiver to file the individual reports on October 28. The general report must be submitted by December 9 this year, relates Infobae. CONTACT: Ana Maria Varela Talcahuano 768 Buenos Aires CP 25 DE MAYO: Court Orders Bankruptcy -------------------------------------- Clinica Privada 25 de Mayo S.A. was declared bankrupt by the Civil and Commercial Tribunal de Rio Tercero. A report from local news source Infobae relates that Court No. 2 of Rio Tercero handles the case. Ms. Estela Viviana Scatolini was assigned receiver for the bankruptcy. Creditors must hand in their claims for verification before August 29 this year. The individual reports must be filed by October 13, Infobae adds. CONTACT: Estela Viviana Scatolini 12 de Octubre 60 Rio Tercero Cordoba DIRECTV LA: 2ND Motion To Extend Lease Decision Period ------------------------------------------------------ DirecTV asks the Court to extend the time by which it must assume or reject its unexpired non-residential property leases through and including November 17, 2003. M. Blake Cleary, Esq., at Young Conaway Stargatt & Taylor, LLP, in Delaware, reminds the Court that DirecTV is a party to two unexpired non-residential real property leases: Lease Premises Lessor -------------- ------ 2400 East Commercial Blvd. CB Richard Ellis Fort Lauderdale, Florida 2400 East Commercial Blvd. 33308 Suite 708 Fort Lauderdale, Florida 33308 New Town Commerce Center Iron Mountain 3821 SW 47th Avenue New Town Commerce Center Fort Lauderdale, Florida 3821 SW 47th Avenue 33314 Fort Lauderdale, Florida 33314 Attn: Daniel Melendez Mr. Cleary asserts that the Unexpired Leases are valuable assets of DirecTV's estate and are integral to its continued operations and plan of reorganization. DirecTV does not want to assume the Unexpired Leases until it determines a confirmable plan of reorganization since, without the plan, the result would be the imposition of potentially substantial administrative expenses to its estate. However, if DirecTV is unable to come up with a plan of reorganization, it is then required to reject the Unexpired Leases. DirecTV is presently considering and assessing various options regarding the formulation of a reorganization plan. Forcing DirecTV to assume the Unexpired Leases would subject the estate to unnecessary administrative expense. Then again, forcing DirecTV to reject and seek new office and storage space would disrupt its operations and reorganization efforts. Mr. Cleary assures the Court that DirecTV continues to perform in a timely manner its postpetition obligations under the Unexpired Leases. Furthermore, the requested extension will promote the Debtor's ability to maximize the value of its estate, avoid the incurrence of needless administrative expenses and other claims on the estate by minimizing the likelihood of an inadvertent rejection of a valuable lease, or alternatively, the premature assumption of a burdensome one. The Court will convene a hearing on September 8, 2003 to consider DirecTV's request. By application of Del.Bankr.LR 9006-2, the lease decision deadline is automatically extended through the conclusion of that hearing. (DirecTV Latin America Bankruptcy News, Issue No. 11; Bankruptcy Creditors' Service, Inc., 609/392- 0900) EDESUR: Shareholders Approve Bond Program Extension --------------------------------------------------- Argentine power distributor Edesur, which is controlled by Chilean power sector holding Enersis, informed the Buenos Aires bourse that it has obtained approval from shareholders to extend a US$450-million bond program by another five years until October 2008. According to Business News Americas, the utility, which serves over two million clients in the south of Buenos Aires, has not issued any bonds under the program so far. Currently, the Company has a total of US$200 million debts with commercial banks, 85% of which is in US dollars, and all of which matures within the next 12 months. Last month, Edesur's financial manager Ignacio Uranga commented that extending the life of the bond program would give the Company another financing alternative should it need one. He also revealed that the Company planned to offer US$10mn-20mn of bonds to local pension funds before the end of the year. The amount will be relatively small and the due date relatively short because the issue would be Edesur's first since Argentina's financial crisis, and it wants an issue that is straightforward to pay off. CONTACT: EDESUR S.A. Gte. Gral.: Ing. Rafael Fernandez Morande San Jos, 140, 3o P Capital Federal 1076 Argentina Phone: 4370-3700/4370-3370 Fax: 4381-0708 Home Page: www.edesur.com.ar FARGO: Bimbo's Acquisition of Minority Stake Spurs Controversy -------------------------------------------------------------- The acquisition of a minority stake in Argentina's major bakery company, Fargo, by Mexican Grupo Bimbo is raising controversy. Some legislators and members of the government are warning that an eventual increase in the Mexican group's interest in Fargo would immediately activate the regulatory mechanisms established by the Competition Defense Law regarding dominant position and market monopoly. They say they are not willing to let a foreign group take 80% of the Argentine packaged bread market. The local antitrust bureau, CNDC, has already started to analyze the operation and will soon start asking the companies involved in the deal for additional information. Such worries come from the letter sent by Bimbo to the Buenos Aires Stock Exchange, in which the holding informed of the acquisition of a 30% stake in Fargo and said it might decide to increase its interest to a majority position in the future. Fargo has a debt of some US$200 million. Its most outstanding creditors are a group of banks and Cargill. Mexican businessman Fernando Chico Pardo is now the majority owner of Fargo, but in case he decided to withdraw from the firm, Bimbo would take his 70% stake and add it to its 30%. FOLOPOLIMEROS DEL SUR: Bankruptcy Proceeds With Claims Check ------------------------------------------------------------ Creditors of Buenos Aires-based company Fotopolimeros del Sur S.A. must submit their claims for verification to the receiver, Ms. Elba Bengoechea before December 19 this year. After that, the receiver will prepare the required individual and general reports. Local news portal Infobae relates that city's Court No. 18 ruled that the Company is "Quiebra Decretada". This means that the Company's assets will be liquidated upon completion of the bankruptcy process. CONTACT: Fotopolimeros del Sur S.A. Senillosa 560 Buenos Aires Elba Bengoechea Uriburo 1010 Buenos Aires H Y L GERMIGNIANI: Civil, Commercial Tribunal Orders Bankruptcy --------------------------------------------------------------- The Civil and Commercial Tribunal of Cordoba orders the bankruptcy of local company Hugo y Leandro Germigniani S.H., according to a report from Argentine news source Infobae. The province's Court No. 26 holds jurisdiction over the case, the source adds. Ms. Maria Luisa Benitez is designated receiver, who is given the task of verifying creditors' claims. The court set September 19 as the deadline for the verification process. The individual reports, which are to be prepared after the credit verification process is due for submission on November 7 this year, while the general report must be submitted by February 27 next year. CONTACT: Hugo y Leandro Germigniani S.H. Lavalleja 1633 Barrio Alta Cordoba INTERINDUMENTARIA: Court Authorizes Bankruptcy ---------------------------------------------- Buenos Aires-based company Interindumentaria S.R.L. is declared bankrupt by the city's Court No. 18. Local news portal Infobae relates that the city's Clerk No. 15 assists the court on the case. The bankruptcy process continues with the verification of credit claims. Creditors must submit their proofs of claims to the receiver, Ms. Julia Rapazzo Cesio before December 17. The court also instructed the receiver to file the individual reports, which are prepared after the verification is done, on March 2 next year. The general report, on the other hand, is due for submission on April 13. CONTACT: Julia Rapazzo Cesio Ave. Corrientes 3169 Buenos Aires JETAFE: Court Approves Creditor's Bankruptcy Petition ----------------------------------------------------- Dr. Vasallo, insolvency judge for Court No. 5 of Buenos Aires declared local company Jetafe S.R.L. bankrupt, according to a report from local newspaper La Nacion. The city's Clerk No. 9, Dr. Perez Casado assists the court on the case. The ruling comes after the Company's creditor, HSBC Bank Argentina S.A. filed a petition to have the Company declared bankrupt. Jetafe reportedly failed to pay its debt of $14,035 to the bank. Creditors have until October 2, 2003 to have their claims verified by the receiver, Ms. Susana Manrique. CONTACT: Jetafe S.R.L. 3rd Floor B Ave. Pueyrredon 524 Buenos Aires Susana Manrique; Room 9 & 10 12th Floor Lavalle 1675 Buenos Aires LAPA: Court Sets Deadline For Creditor Claims In Bankruptcy ----------------------------------------------------------- Creditors of bankrupt airline Lineas Aereas Privadas Argentinas S.A. (L.A.P.A.) have until September 26 to have their claims verified, relates local news source Infobae. The designated receiver is Estudio Oliveto Papratto Asociados from Buenos Aires. The city's Court No. 22 and Clerk No. 44 handle the case. The receiver is instructed to have the individual reports, which are prepared after the credit verification process, filed by November 7 this year. The general report will be presented by December 9. CONTACT: Estudio Oliveto Paparatto Asociados Blanco Encalada 3202 Buenos Aires PETROBRAS ENERGIA: Anounces Forward-looking 2Q03 Results Info ------------------------------------------------------------- Petrobras Energ�a Participaciones S.A. (MERVAL: PBE, NYSE: PZE) announced that Thursday the Company have participated in a conference with financial analysts, to discuss 2003 second quarter results. The contents of the press release published on August 11, 2003 were discussed and in addition, the following statements were made on the Company's future outlook: - Investments anticipated for the year 2003 for the Company's businesses as a whole will total approximately 300 million dollars, about 87% of which are focused on the Oil and Gas Exploration and Production business segment. - Based on preliminary estimates, investments for the year 2004 might reach 400 million dollars. - Combined oil and gas production would amount to 165 thousand average boe for 2003, and to 170 thousand boe by the end of this year. SANCOR: Moody's Latin America Rates US$300M of Bonds `D' -------------------------------------------------------- Moody's Latin America Calificadora de Reisgo S.A. assigned default ratings to corporate bonds issued by Argentine company Sacnor Coop. Unidas Ltda. recently. The `D' rating, which is assigned to issues that are in payment default, was based on the Company's finances as of the end of March this year. The National Securities Commission of Argentina described the affected bonds as "T�tulos de Deuda de Mediano Plazo". The bonds, worth a total of US$300 million, were classified under "Program". No maturity date was given, however. SECURITY CONSULTANTS: Court Assigns Receiver To Reorganization -------------------------------------------------------------- Court No. 10 of Buenos Aires assigns Ms. Marta Polistina as receiver for the reorganization of Security Consultants Office S.R.L., relates local news portal Infobae. The city's Clerk No. 9 assists the court on the case. Creditors must submit their claims for verification before October 6 this year. The report, however, did not mention the deadlines for the individual and general reports. CONTACT: Marta Politina Ave. Corrientes 745 Buenos Aires SIMCORD: Court Initiates Bankruptcy Process ------------------------------------------- The Civil and Commercial Tribunal of Cordoba announces the bankruptcy of local company Sociedad Induatrial Mecanica Cordobesa S.R.L. (SIMCORD). Argentine news portal Infobae relates that the Company's case is handled by the province's Court No. 39. Creditors are required to submit their proofs of claims for verification before September 10 this year. The Court requires the individual and general reports to be filed by October 22 and December 29, respectively. However, the report did not reveal the name of the receiver assigned to the case. CONTACT: Sociedad Industrial Mecanica Cordobesa S.R.L. Bv O Higgins 6115 Ex Camino San Carlos km 6,5 Cordoba TATANCA: Court Sets Deadlines For Individual, General Reports ------------------------------------------------------------- Buenos Aires' Court No. 6, under Dr. Ferrario, set the deadlines for the individual and general reports regarding the bankruptcy of local company Tatanca S.R.L., reports Infobae. The individual reports, which are prepared after the verification of credit claims, must be submitted by December 12 this year. The general report, on the other hand is due for filing on February 27, 2004. Recently, the Troubled Company Reporter - Latin America reported that the Company was decreed bankrupt upon the request of its creditor, Cooperativa de Consumo, Credito y Vivienda Dinamica Limitada. Dr. Mendez Sarmiento, the city's Clerk No. 12, assists the court on the case. Creditors are required to submit their proofs of claim to the receiver, Mr. Angel Visco before October 30 this year. CONTACT: Tatanca S.R.L. 11th Floor Uruguay 651 Buenos Aires Miguel Visco 3rd Floor 3 de Febrero 4683 Buenos Aires TEAM PRODUCCIONES: Bankruptcy Proceeds With Claims Verification --------------------------------------------------------------- The credit verification process for the bankruptcy of Buenos Aires-based company Team Producciones S.A. will end on September 10 this year. Creditors are required to submit their proofs of claims to the receiver, Alberto Jorge Rotenberg. Argentine news source Infobae relates that the Company was declared bankrupt by the city's Court No. 14. Assisted by the city's Clerk No. 28, the court set October 22 as the deadline for the individual reports, which are to be prepared after the credit verification process. The general report comes due on December 3 this year. CONTACT: Alberto Jorge Rotenberg Ave. Cordoba 1336 Buenos Aires THALIA S.A.: Enters Bankruptcy On Court Order --------------------------------------------- Court No. 3 of Buenos Aires orders the bankruptcy of local company Thalia S.A., said local news source Infobae. The Company was placed in the hands of its receiver, Fabian Zanperl. Creditors must submit their proofs of claim to the receiver before October 6 this year. The individual reports, which are to be made after the credit authentication process, must be submitted by November 17. The court also requires the receiver to file the general report by February 2 next year. CONTACT: Fabian Zanperl Ave. Cordoba 3515 Buenos Aires THUNDER: Receiver Assigned For Bankruptcy ----------------------------------------- Adalberto Abel Corbelleri takes control of Argentine company Thunder Group S.R.L. as receiver for its bankruptcy. Infobae relates that the court requires the Company's creditors to have their claims verified by the receiver before September 24 this year. Buenos Aires' Court No. 15 holds jurisdiction over the Company's case, with the assistance of Clerk No. 19. The report, however, did not mention whether the court has set the deadlines for the individual and general reports. CONTACT: Adalberto Abel Corbelleri Carabobo 237 Buenos Aires TOKIO FOOD: Voluntarily Files For Reorganization ------------------------------------------------ Buenos Aires-based company Tokio Food S.A. is voluntarily seeking court permission to undergo reorganization. Argentine news portal Infobae relates that the Company has filed a motion for "Concurso Preventivo" to the city's Court No. 12. La Nacio reports that the Company stopped making debt payments on July 28 this year. The case is currently under insolvency judge Ojea Quintana. Buenos Aires Clerk No. 24, Medici Garrot works with the court on the case. CONTACT: TOKIO FOOD S.A. Luis Maria Campos 8 Buenos Aires ============= B E R M U D A ============= GLOBAL CROSSING: Pulling Plug on MFS Cable Capacity Sales Pact -------------------------------------------------------------- Global Crossing Ltd., and its debtor-affiliates seek the Court's authority, pursuant to Section 365(a) of the Bankruptcy Code and Rules 6006 and 9014 of the Federal Rules of Bankruptcy Procedure, to reject a Capacity Sales Agreement between Debtor International Exchange Networks, Ltd. and MFS Cable Company (Bermuda) Ltd., a subsidiary or affiliate of WorldCom, Inc., dated July 13, 1999. Robert N. H. Christmas, Esq., at Nixon Peabody LLP, in New York, explains that the Contract relates to an indefeasible right of use in a unit of capacity MFS owned, on the transatlantic fiber optic submarine and terrestrial cable network operated by Gemini Submarine Cable System Ltd. between London and New York. While the $3,600,000 IRU purchase price has been fully paid, the Contract obligates IXNET to pay significant annual operation, maintenance and repair charges. For example, the current O&M Cost for 2003 is $414,690, due on December 20, 2003. The O&M Costs increase at a rate of 3.5% per annum for the useful life of the Gemini network, which according to the Contract is expected to be another 20 years from now. Mr. Christmas discloses that the Debtors' obligations under the contract are more burdensome than beneficial. The downturn in the market for telecommunications services and the Debtors' businesses eliminated the need for the capacity the Contract provides. Thus, the IRU capacity under the contract is now unnecessary to the operation of the Debtors' business. Mr. Christmas notes that the O&M Cost obligations that remain to be performed by the Debtors under the contract are substantial -- potentially more than $11,000,000 -- and would constitute a drain on the Debtors' estates with no corresponding incremental value. However, rejecting the Contract will not harm the Debtors' capacity to service their ongoing operations. Moreover, the Debtors are not interested in marketing the Contract's IRU capacity for resale because the O&M Costs under the Contract are significantly greater than the Contract's current market value. * * * Judge Gerber authorizes the Debtors to reject the MFS Cable Capacity Sales Agreement effective July 30, 2003. (Global Crossing Bankruptcy News, Issue No. 45; Bankruptcy Creditors' Service, Inc., 609/392-0900) =========== B R A Z I L =========== AES SUL: Bank Lending Syndicate May Call In $300M Debt ------------------------------------------------------ A syndicate of banks that lent US$300 million to AES Cayman Guaiba, which indirectly controls southern Brazil's distributor AES Sul, may call in a US$300-million debt, Business News Americas indicates. This, after AES Cayman failed to make a US$60.2-million payment of interest and principal earlier this month, AES Sul said in a statement. So far, the call has not been made, AES Sul said, adding that it is studying its options. CESP: To Place $107M of CTEEs On Brazilian Futures Exchange ----------------------------------------------------------- Brazilian utility Companhia Energetica de Sao Paulo (Cesp) planned to auction BRL321 million (US$107 million) of debt certificates, known as CTEEs, on the Brazilian futures exchange Tuesday, Banco ABC Brasil, the issue organizer, revealed. Business News Americas says that CTEEs are similar to debentures but are paid according to the interbank depositary index (DI) and energy prices. Cesp's CTEEs will pay the DI - currently just over 24% a year - plus a spread of two percentage points. Payment will also be adjusted inline with the B3 regulated tariff of Sao Paulo distributor Bandeirante, Business News Americas reports. Banco ABC Brazil advisor Rodrigo Fittipaldi suggested that by linking the payment on the debentures, the CTEEs provide a hedge against any variations in the B3 customer tariff for electric power consumers of Bandeirante. The CTEEs can also be used to pay up to 90% of electric power bills with Bandeirante, Fittipaldi said, adding that both these factors make them attractive to Bandeirante customers. Proceeds will be used to complete construction of the Sergio Motta hydro plant (also known as Porto Primavera), and will not be used in the debt restructuring that the Company is currently undertaking, Fittipaldi said. Cesp failed to sell BRL350 million of debentures in June, and these are now being placed gradually through the expiry date in four months, Fittipaldi said. Cesp managers have previously said they are using the debentures to pay suppliers, recalls Business News Americas. CONTACT: Companhia Energetica De Sao Paulo (CESP) Rua da ConsolaO o, 1.875 CEP 01301 -100 S o Paulo, Brazil Phone: +55-11-234-6322 Fax: +55-11-287-0871 Home Page: http://www.CESP.com.br/ Contact: Mauro G. Jardim Arce, Chairman Ruy M. Altenfelder Silva, Vice Chairman Vicente Kazuhiro Okazaki, Finance Director COSIPA: Reports 2Q03 Results ---------------------------- EBITDA Grows 140% And Reaches R$ 562 Million In The 1h03 Accumulated Net Income Is R$ 323 Million Companhia Sider�rgica Paulista - COSIPA - (Register CVM 01.831-7 - BOVESPA CSPC3, CSPC4), released its financial and operational figures for the 2Q03. Financial and operational information in this release, except when specified to the contrary, are presented on consolidated basis in Brazilian Reais (R$), in accordance with existing Corporate Law. All comparisons made in this release refer to the same period in 2002, except when otherwise stated. HIGHLIGHTS Production - The production of liquid steel and finished products were 1,069.7 and 972.1 tonnes, being respectively 9.7% and 15.4% above when compared to the same period of last fiscal year. Sales and Revenue - Favored by production increase, the sales grew 7.3% and reached 935.2 thousand tonnes in 2Q03, totaling 1,744.5 thousand tonnes in 1H03. Net Revenues totaled R$ 906 million in the quarter, 60% above the same period last year, due to the increase in volume, sustained domestic and international prices and the positive impact of the exchange variation on the exports. EBITDA - Cash generation grew 116% reaching R$ 260 million in 2Q03, totaling R$ 562 million in 1H03. EBITDA margin went from 21.2% in 2Q02 to 28.6% in the 2Q03. Net Income - Cosipa recorded a net income of R$ 191 million in 2Q03 (the same period of 2002 recorded a net loss of R$ 344 million), totaling R$ 323 million in 1H03. Production grows 10% In 2Q03, production reached 1,069.7 million tonnes of liquid steel, against 975.2 thousand tonnes produced in the same period of last year. This growth is basically from the production increases once Cosipa started to operate at full capacity of 4.5 million of tonnes per year in September 2002 with the installation of new equipment in its Steelworks. Demand The domestic demand for flat steel in 1H03 grew 5.5% and the supply of products from Cosipa in the market was 6% above the same period of last year. Sales grows 7% Sales volume grew 7% when compared to 2Q02, totaling 935.2 thousand tonnes. In 1H03 the total volume sold was 1,744.5 thousand tonnes, a growth of 10% in relation to 2002, being 65% sold to domestic market. In 2Q03, domestic market sales presented a good performance due to the recovering in the inventories and the orders from sectors with vigorous export program. Cosipa reached a market share of 30%. Exports The exports represented 38% of the total sales in 2Q03 totaling 350.8 thousand tonnes, 5.3% lower than the 2Q02. However, in 1H03 the sales to export market were14.6% above 1H02 totaling 612 thousand tonnes. FINANCIAL PERFORMANCE Gross Profit Gross profit was R$ 247 million in 2Q03, accumulating R$ 525 million in 1H03, with growth of 119% and 152%, respectively, over the same period in 2002. This was possible mainly due to the company's new level of production and sales besides the production costs increases in function of the readjustments in the prices of imported raw materials like coke and coal, which are directly affected by the exchange variation. Gross margin advanced from 20% to 27.4% in 2Q03. In 1H03 this increase is even more representative reaching 30.3% when compared to 20.1% in 1H02. Analyzing quarter over quarter, the gross margin decreased in 2Q03, as a consequence of greater expenses with coke imports due to the revamping of coke oven batteries and also increases in the price of energy. Operational Results Operating income before financial results (EBIT) grew 181% and reached R$ 211 million in 2Q03. In 1H03, the EBIT was R$ 465 million, 214% above in relation to 1H02. The EBIT margin grew 88% in 1H03, reaching 26.8% (14.3% in 1H02). The EBITDA reached R$ 260 million in 2Q03 and totaled R$ 562 million in 1H03, a significant increase of 140% when compared to R$ 234 million totaled in 1H02. Analyzing quarter over quarter, EBITDA margin went from 36.5% in 1Q03 to 28.6% in 2Q03, as a consequence of production cost increase and reduction of export revenue due to the appreciation of the real. Financial Results / Net Income In 2Q03, the Brazilian Real appreciated 14.3% totaling 19% in 1H03. With this appreciation, the net financial results was R$ 86 million, and generated a positive exchange gains (R$ 183 million, net of hedging transactions), reverting part of the negative exchange variation accounted in 2002. In the same period of last year, the net financial result was a loss of R$ 593 million. Cosipa recorded a net income of R$ 191 million in 2Q03, totaling R$ 323 million in 1H03. This result was favored by good operational performance due to its new level of production and sales after investments made in its Plant located in Cubatao. Investments Resources destined for investments totaled R$ 32 million in 2Q03. The amount was destined basically to maintenance of equipment and revamping of the coke oven batteries once the significant investments in environmental protection and technological updating are already concluded. CONTACT: Investor Relations Dept: Gilson Rodrigues Bentes CFO's Assistant Tel: 55- 11 5070-8980 Fax: 5070-8895 Leandro Cappa Financial Analyst Tel: (11)5070-8887 E-mail: investidores@cosipa.com.br ELETROPAULO METROPOLITANA: BankBoston Calls In $305M Loan --------------------------------------------------------- Brazilian distributor Eletropaulo, a subsidiary of US-based AES Corp., informed the country's Bovespa stock exchange that BankBoston Brazil has called in a US$305-million loan to the Company, relates Business News Americas. "Eletropaulo...has been formally notified by BankBoston that...it is considering, based on contractual arrangements, the entirety of a debt of US$305 million as expired ahead of schedule, corresponding to obligations from financing secured from the bank on (December 12, 2000)," Eletropaulo said. Eletropaulo said it wants to continue talks with BankBoston to restructure the debts as part of its global restructuring package. The Company said it would "restructure and suspend" payments of principal but would maintain interest payments. 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 MRS LOGISTICA: Ratings Unaffected by Second-Quarter Results ----------------------------------------------------------- Standard & Poor's Ratings Services said Monday that its ratings and outlook on MRS Log�stica S.A. will not be affected by the company's results in second-quarter 2003. MRS reported adjusted EBITDA margin of 56% in first-half 2003, strengthening its credit measure ratios further. The company managed cost increases with a combination of higher tariffs and volumes. More importantly, MRS has been able to generate free operating cash flow to face significant debt maturities in the period. Volume transported remained strong, reaching 40 million tons in the first-half 2003 (up 19% compared with the same period in 2002), leveraging on higher export iron ore transportation from Companhia Vale do Rio Doce (CVRD) and its subsidiaries Caemi and Ferteco, and increasing soybean shipments. New contracts in market pulp, chemicals, and steel are also positives. Standard & Poor's expects that MRS will continue sustaining sound operating results to cope with debt maturities, including debentures amortization and new leases contracted in the past few years. ANALYST: Reginaldo Takara, Sao Paulo (55) 11-5501-8932 ========= C H I L E ========= D&S: Implements Debt Restructuring Program ------------------------------------------ Chilean retail group D&S is embarking on a debt-restructuring program, reports South American Business Information. Part of the program is a plan to sell US$70 million worth of bonds in the domestic market between October and December this year. The Company also plans to sell US$30 million of commercial papers and refinance US$60 million of debt, the report says, without giving out details about the transactions. Finance director Miguel Nunez said part of the proceeds will be used to pay off debts of US$80 million. Meanwhile, the Company vows to make Ahold, the Dutch supermarket group, pay the US$90 million debt it assumed after acquiring its Ekono supermarket chain in Argentina. =============== D O M I N I C A =============== CENTENNIAL COMMUNICATIONS: Signs Agreement With Nortel ------------------------------------------------------ Centennial Communications Corp. (Nasdaq:CYCL) has selected Nortel Networks (NYSE:NT)(TSX:NT) to supply a third generation (3G) wireless data network for Centennial's Dominican Republic operations, Centennial Dominicana, a leading telecom service provider in the Dominican Republic. Expected to be fully operational by the end of 2003, the new network will provide leading-edge wireless voice and data services throughout the island. Under an agreement announced Monday, Nortel Networks will replace Centennial Dominicana's existing CDMA 3G network with a complete CDMA2000 1X 3G solution including access and core networking equipment. The new network is expected to significantly increase capacity and improve coverage and delivery of wireless data services. The agreement also includes Nortel Networks wireline switching solutions. "We are very excited about this deal, which will enable all of our cell sites to support 3G and maintain the most modern, technologically advanced, and highest capacity wireless network in the Dominican Republic," said Michael Small, chief executive officer, Centennial Communications. "These improvements to our wireless network will allow us to accommodate rapid subscriber growth, position us to double our switch capacity, and allow us to further expand our 3G service availability throughout the Dominican Republic. "Once our wireless network is operating fully on 3G technology, our individual and business customers on the Island can expect improved coverage areas offering superior service experiences," Small said. "We are working closely with Centennial, one of the region's most innovative operators, to help them evolve and expand their wireless network to meet growing subscriber demand and to deliver the latest data services," said Dion Joannou, president, Caribbean and Latin America, Nortel Networks. "This agreement further strengthens our leadership position in providing advanced telecommunications solutions for the Caribbean region." "Leading wireless operators around the world continue to turn to Nortel Networks to meet their 3G networking needs," said Steve Slattery, vice president and general manager, CDMA/TDMA, Wireless Networks, Nortel Networks. "Our wireless infrastructure technology is designed to help operators boost capacity, reduce costs, and deliver new data offerings." A CDMA leader since 1995, Nortel Networks has designed, installed and launched networks - including more than 35,000 '3G-ready' base stations as of March 31, 2003 - for more than 65 CDMA customers in 17 countries. Nortel Networks is implementing CDMA2000 1X networks for leading customers around the world, including: Verizon Wireless and Sprint PCS in the United States; Bell Mobility and TELUS Mobility in Canada; and SMARTCOM PCS in Chile. Nortel Networks is the only supplier with Wireless Data Networks operating in all three advanced technologies - GPRS, CDMA2000 and UMTS. In the Caribbean, Nortel Networks is providing Wireless Data Networks for customers like Cable & Wireless, Bahamas Telecommunications Company and TSTT (Trinidad and Tobago). Centennial is one of the largest independent wireless telecommunications service providers in the United States and the Caribbean with approximately 17.3 million Net Pops and approximately 939,500 wireless subscribers. Centennial's U.S. operations have approximately 6.1 million Net Pops in small cities and rural areas. Centennial's Caribbean integrated communications operation owns and operates wireless licenses for approximately 11.2 million Net Pops in Puerto Rico, the Dominican Republic and the U.S. Virgin Islands, and provides voice, data, video and Internet services on broadband networks in the region. Welsh, Carson Anderson & Stowe and an affiliate of the Blackstone Group are controlling shareholders of Centennial. For more information regarding Centennial, please visit our websites at www.centennialwireless.com, www.centennialpr.com and www.centennialrd.com. Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com. CONTACT: NORTEL NETWORKS Ferngene Kook, 954-858-7101 fkook@nortelnetworks.com or Nortel Networks Jay Barta, 972-685-2381 jbarta@nortelnetworks.com or Centennial Communications Corp. Thomas J. Fitzpatrick, 732-556-2220 tfitzpatrick@centennialcorp.com ============= J A M A I C A ============= BLAISE MERCHANT/CENTURY FINANCIAL: Payout Efforts Underway ---------------------------------------------------------- Depositors of two failed Jamaican banks - Blaise Merchant Bank and Century Financial Entities - have until October 17 to make their claims. According to RJRNews.Com, government-owned company Financial Institutions Services Limited, which owns all the assets and rights to Blaise Merchant and Century Financial Entities, is currently preparing to make payouts to the banks' depositors. The Minister of Finance took control of Blaise in December 1995 and the Century Financial Entities in July 1996. Subsequently, the Government made payouts to depositors. However, some depositors did not take up the offers. =========== M E X I C O =========== ALESTRA: Shareholders Advance Better Restructuring Terms -------------------------------------------------------- Mexican long distance operator Alestra's shareholders, AT&T and Onexa - a 50:50 joint venture between local bank BBVA Bancomer and Mexican industrial group Alfa, presented new and improved debt restructuring terms to creditors. Citing an Alestra registration with the SEC, Business News Americas relates that the shareholders are now offering US$1,060 in principal of Alestra's unissued senior notes due 2010, a cash payment of US$550, or a combination of the two for each US$1,000 in principal of the company's 12 1/8% notes due 2006 and 12 5/8% notes due 2009. If the creditors decline the offer, the shareholders threaten to take Alestra into US Chapter 11 bankruptcy to restructure US$570 million in senior notes. The latest offer, which expires September 14, is the third put forward by the shareholders. Alestra said its existing notes require annual debt service payments of US$74.3 million and that the Company does not have the cash to make the payments. CONTACT: Alestra, S. de R.L. de C.V. Sergio Bravo Phone: 011 528 18 625 2269 Email: sbravo@alestra.com.mx ALESTRA: Reduces Net Loss in the 1H03 ------------------------------------- Alestra posted a net loss of MXN342 million (US$32mn) for the first half, a sharp decrease from the MXN921-million loss in the comparable period of last year. The Company reported operating profit of MXN152 million, compared to a loss of MXN144 million the year before. Consolidated revenues were up 36% year on year at MXN2.76 billion. While domestic long distance revenues fell 18% to MXN628 million, international long distances sales rose 83.4% to MXN1.54 billion. Internet, data and local services contributed MXN597 million to sales, a 42% increase over the first half of 2002. GRUPO TFM: Announces LPG Transport For Pemex International ---------------------------------------------------------- Grupo Transportacion Ferroviaria Mexicana, SA. de C.V (TFM), operators of Mexico's busiest railway and majority-owned by Grupo TMM, S.A. (NYSE:TMM) and (BMV:TMM A) and Kansas City Southern (NYSE:KSU), announced the transportation of liquid petroleum gas (LPG) for Pemex International (PMI, an affiliate of Petroleos Mexicanos) by TFM tanker cars. The imports began in August from an LPG terminal in Mont Belvieu, Texas, to the PEMEX Cadereyta refinery, just outside of Monterrey, Mexico. In the first phase of the evergreen contract, TFM will transport one million gallons of LPG per month. Based on market conditions, the volume of LPG moved by TFM's tankers is anticipated to grow up to five times, as other destinations throughout Mexico are added. This contract also substantially reduces PEMEX's imports and distribution costs. The contract forms part of PMI's strategy to integrate infrastructure along the U.S.-Mexico border. Headquartered in Mexico City, Grupo TFM operates Mexico's busiest railway, which carries over 40 percent of the country's rail cargo. Grupo TFM's controlling interest is owned by Grupo TMM, S.A. (NYSE:TMM)and (BMV:TMM A) and Kansas City Southern (NYSE:KSU). Grupo TFM's web site is www.tfm.com.mx. CONTACT: Grupo TFM Mario Mohar or Jacinto Marina Phone: 011-525-55-629-8866 Leon Ortiz Phone: 011-525-55-447-5836 GRUPO TMM: Stockholders Disapprove Grupo TFM Sale ------------------------------------------------- Grupo TMM, S.A. (NYSE:TMM) and (BMV:TMM A)("Grupo TMM" or the "Company") announced that, at the Company's General Ordinary Shareholders' meeting held Monday, its shareholders unanimously did not approve the sale of TMM's interests in Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. (Grupo TFM) to Kansas City Southern (KCS). As was made public, approval of the Company's stockholders was required under the terms of the Acquisition Agreement for the sale to proceed. As a result of the shareholder vote, Grupo TMM's board of directors intends to meet as soon as possible to review the company's options. The company is proceeding to inform to the authorities at the Ministry of Communications and Transportation, the Ministry of Finance, other relevant authorities and stakeholders of TMM and its subsidiaries as to the shareholders' decision. Headquartered in Mexico City, Grupo TMM is Latin America's largest multimodal transportation company. Through its branch offices and network of subsidiary companies, Grupo TMM provides a dynamic combination of ocean and land transportation services. Grupo TMM also has a significant interest in TFM, which operates Mexico's Northeast railway and carries over 40 percent of the country's rail cargo. Grupo TMM's web site address is www.grupotmm.com and TFM's web site is www.tfm.com.mx. Grupo TMM is listed on the New York Stock Exchange under the symbol TMM and Mexico's Bolsa Mexicana de Valores under the symbol TMM A. CONTACT: Grupo TMM Jacinto Marina, 011-525-55-629-8790 jacinto.marina@tmm.com.mx or Grupo TMM Investor Relations: Brad Skinner, 011-525-55-629-8725 or 203-247-2420 brad.skinner@tmm.com.mx or Proa/Structura Press Relations: Marco Provencio, 011-525-55-629-8708 or 011-525-55-442-4948 mp@proa.structura.com.mx or Dresner Corporate Services General Investors, Analysts and Media: Kristine Walczak, 312-726-3600 kwalczak@dresnerco.com ================================= T R I N I D A D & T O B A G O ================================= BWIA: Chairman Blames Conflict of Interest For Board Exodus ----------------------------------------------------------- BWIA Chairman Lawrence Duprey suggested that the resignations of three members of the Board of directors might have been due to a conflict of interest, the Trinidad Guardian relates. "I couldn't tell you exactly but there may have been some conflicts of interest," Duprey told reporters after BWIA's annual general meeting. Earlier, the Trinidad Guardian reported that Gordon Deane, who was appointed the new chairman of the Integrity Commission by President Maxwell Richards on Wednesday, tendered his resignation as a BWIA board director on June 6. Former BWIA board members Rajveer Ranawat and Michael Stanfield tendered their resignations on May 30 and May 27, respectively. All three represented major private investors in BWIA. Deane is the vice-chairman of Algico and its parent company American International Group Inc (AIG) is one of BWIA's major private investors. AIG also owns the International Leasing Finance Corporation, which owns six of the aircraft in BWIA's fleet. Mr. Ranawat was AIG's representative on the Board. Mr. Stanfield represented Barbados-based Leob Partners, another BWIA private investor. "They are members of different groups that we were doing business with and maybe there were people who were overseas that didn't see the value of their presence on the board," Duprey said. CONTACT: British West Indies Airways Phone: + 868 627 2942 E-mail: mailto:mail@bwee.com Home Page: http://www.bwee.com/ ================= V E N E Z U E L A ================= CITGO: 2Q03 Results Show Modest Improvement ------------------------------------------- CITGO Petroleum Corporation reported Monday net income of $109 million for the second quarter of 2003 compared with $96 million for the second quarter of 2002. For the six month period ending June 30, 2003, CITGO reported net income of $249 million compared with $81 million in 2002. Operating income (income before interest and income taxes) for the second quarter of 2003 was $204 million, which includes depreciation and amortization expenses totaling $84 million. In comparison, 2002 second quarter operating income was $170 million, which includes depreciation and amortization expenses totaling $73 million. Second quarter market conditions and outstanding operating performance contributed to CITGO's favorable financial results relative to the same quarter of 2002. Crack spreads were 21- percent higher in Chicago and relatively constant in the Gulf Coast when compared with the same time period in 2002. Additionally, crude differentials for both sour and Canadian crudes were improved relative to last year. "CITGO capitalized on the market conditions by optimizing its refineries' production as well as increasing its product sales," stated Luis Marin, President and Chief Executive Officer. "Our refinery utilization rate for the second quarter averaged 97- percent, continuing our excellent operational performance from the first quarter and exceeding the industry's utilization rate of slightly under 95-percent," said Marin. "In addition, our heavy-sour crude runs in the second quarter were up 137,000 barrels per day (bpd) compared with the same time period in 2002. We are also very pleased with the start up and production rates from the new mixed xylene unit at our Lake Charles, La. refinery," Marin said. "Another bright spot during the quarter was a 15-percent increase in our total refined product sales volumes, led primarily by a 33-percent increase in diesel and #2 fuel sales. When taken together, these factors generated a very good second quarter for CITGO," said Marin. Additional second quarter highlights include: Second quarter wholesale refined product sales increased by five- percent to 3.6 billion gallons, with gasoline sales to existing branded marketers comprising the largest increase. Lubricant sales volumes were relatively flat for the first six months of 2003 when compared with the same time period in 2002; however, industry sales volumes were down eight-percent compared with the same period in 2002. "CITGO's corporate debt ratings were upgraded during the second quarter, recognizing continued excellent operations and reflecting the company's improved financial condition," said Marin. "In fact, after the quarter ended CITGO paid a $500 million dividend to its direct parent company, PDV America, Inc. CITGO's liquidity (cash plus available borrowing capacity) was $526 million after the dividend payment," Marin concluded. CITGO's capital expenditures for the second quarter of 2003 were $118 million compared with $229 million for same quarter in 2002. Capital expenditures for the first six months of 2003 were $209 million compared with $350 million for the first six months of 2002. This decrease reflects CITGO's commitment to reduce 2003 planned capital spending by approximately $250 million. For the six months ending June 30, 2003, CITGO reported operating income of $447 million, including depreciation and amortization expenses totaling $163 million. In comparison, in the first six months of 2002, CITGO's operating income was $163 million, including depreciation and amortization expenses totaling $145 million. ABOUT CITGO CITGO Petroleum Corporation is a leading energy company based in Tulsa, Okla., with approximately 4,300 employees and annual revenues of nearly $20 billion. CITGO is a direct, wholly-owned subsidiary of PDV America, Inc., a wholly-owned subsidiary of PDV Holding, Inc. CITGO's ultimate parent is Petroleos de Venezuela, S.A. (PDVSA), the national oil company of the Bolivarian Republic of Venezuela and its largest supplier of crude oil. CITGO operates fuels refineries in Lake Charles, La., Corpus Christi, Texas, and Lemont, Ill., and asphalt refineries in Paulsboro, NJ and Savannah, Ga. The company has long-term crude oil supply agreements with PDVSA for a portion of the crude oil requirements at these facilities. CITGO is also a 41-percent participant in LYONDELL-CITGO Refining LP, a joint venture fuels refinery located in Houston, Texas. CITGO's interests in these refineries result in a total crude oil capacity of approximately 865,000 barrels per day. With more than 13,000 branded, independently owned and operated retail locations, CITGO is also one of the five largest branded gasoline suppliers within the United States. To see financial statements: http://bankrupt.com/misc/CITGO.htm *********** 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 * * *