/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/030825.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 Monday, August 25, 2003, Vol. 4, Issue 167 Headlines A R G E N T I N A ALAMO: Court Declares Company Bankrupt ARMASHIELD: Enters Bankruptcy on Court Order ASOCIACION ISRAELITA: Credit Check For Reorganization Ends ATLANTIC GAS: Creditor's Petition for Bankruptcy Approved BANCO FRANCES: S&P Rates US$1B of Bonds `raBB+' BISELLACH: Presents APE To Court BRONI: Court Approves Reorganization CERRO EL POLVORIN: Deadline For Credit Check Expires Today DISCO: Uruguayan Court Paves Way for Sale of Ahold's Stake EDENOR: Argentine S&P Rates Bonds `raD' EDESUR: Corporate Bonds Rated `raCCC' by Argentine S&P EL DESTINO: Last Day For Claims Authentication HELCONST: Court Declares "Quiebra Decretada" MASTELLONE HERMANOS: US$225M of Bonds Get `raD' from S&P MEGASOCKS: Seeks Court's Nod to Undergo Reorganization METROVIAS: First-half Net Loss Down to ARS100,000 from ARS15 Mln MOXOTO: Receiver Must Submit Individual Reports Today OROFRUTAL: Receiver Closes Credit Check Process PAN'S COMPANY: Court Calls Creditors To Formal Meeting PILDAN ROQUE: Court Requires Receiver To File Individual Reports PL SUAREZ: Court Grants Creditor's Bankruptcy Petition POST TOUR: Court Assigns Local Accountant as Receiver RAMON CASTINEIRA: Cordoba Tribunal Orders Bankruptcy SANCAYET: Creditors Sought For Bankruptcy SOINCO: Credit Verification Ends Today SOLD ENERGY: Creditors Must Submit Claims before October 14 SUSHI EXPRESS: Receiver Ends Credit Verifications B E R M U D A TRENWICK GROUP: To Sell Trenwick International Limited B O L I V I A BANCO MERCANTIL: S&P Affirms Ratings, Revises Outlook To Negative B R A Z I L COPEL: Parana Governor Vetoes Decision to Hike Power Rates SABESP: Secures $200 Mln Loan to Fund Water Treatment Expansion C H I L E D&S: Announces Second Quarter 2003 Results INVERLINK: Creditors to Pick Insurance Biz Buyer Wednesday MADECO: Public Offer Spurs Sharp Rally in Santiago, New York MANQUEHUE: Plans Massive Expansion of Wi-Fi Service this Year C O L O M B I A ALIANZA SUMMA: Shareholders Vote to Liquidate Firm FERTICOL: Seeks COP1 Billion in Fresh Capital D O M I N I C A N R E P U B L I C EDE-ESTE: Legal Struggle With CDEE Begins M E X I C O GRUPO TMM: Kansas City Southern Reacts to TMM Shareholder Vote PEMEX: Posts 30% Increase in First-half Sales P E R U MINERA VOLCAN: BCP Ratings Downgrade Cites Worsening Condition *Peru: S&P Affirms Ratings, Outlook Stable T R I N I D A D & T O B A G O CARONI: Injunction on VSEPs Payments Extended to September 17 - - - - - - - - ================= A R G E N T I N A ================= ALAMO: Court Declares Company Bankrupt -------------------------------------- Buenos Aires' Court No. 21 declared local company Alamo Group S.A. bankrupt, relates Infobae. Clerk No. 41 works with the court on the case. The bankruptcy process starts with the verification of credit claims. The receiver, Ms. Cristina Gravier, will verify claims until December 15, said Infobae. Individual reports will be prepared after the verification process. CONTACT: Alamo Group S.A. Pichincha 649 Buenos Aires Cristina Gravier Piedras 172 Buenos Aires ARMASHIELD: Enters Bankruptcy on Court Order -------------------------------------------- Armashield Argentina S.A., which is domiciled in Buenos Aires, enters bankruptcy upon the order of the city's Court No. 2. Local news portal Infobae relates that the city's Clerk No. 3 assists the court on the case. The designated receiver is Mr. Mario Norberto Aragon, a local accountant. The credit verification process ended on August 22. The receiver is preparing the individual reports, which will be submitted to the court on October 9. The general report, on the other hand must be presented to the court on November 24 this year. CONTACT: Armashield Argentina S.A. Tucuman 2362 Buenos Aires Mario Norberto Aragon A Alsina 1535 Buenos Aires ASOCIACION ISRAELITA: Credit Check For Reorganization Ends ---------------------------------------------------------- The credit verification process for the reorganization of Asociacion Israelita de Beneficiencia, Educacion y Culto David Wolfsohn ends today. August 25. The receiver, Estudio Moyano Guelman y Asociados, which is tasked with verifying creditors' claims, will proceed with the preparations for the individual reports. Argentine newspaper Clarin earlier reported that the Company received approval to undergo reorganization from the National Commercial Court of First Instance. The report said that the Company filed its motion for "Concurso Preventivo" to the said court. Dr. Eduardo Favier Dubois, insolvency judge for the court requires the receiver to hand in the individual reports on October 3 this year. The judge also instructed the receiver to have the general report ready by November 14. An informative audience will be held on June 7 next year. CONTACT: Estudio Moyano Guelman y Asoc. Riobamba 1224/34 6 Piso 'D' Buenos Aires Phone: (005411) 4813 7140 ATLANTIC GAS: Creditor's Petition for Bankruptcy Approved --------------------------------------------------------- Dr. Paez Castaneda, insolvency judge in Buenos Aires' Court No. 21 grants a petition filed by Eduardo Montes to declare Argentine oil company Atlantic Gas Oil S.A. bankrupt. La Nacion reports that the Company failed to meet its obligations on some $2676 of debt to Mr. Montes. The receiver for the case is Mr. Jorge Sahade, a local accountant. The court instructed him to verify creditors' claims until March 23 next year. CONTACT: Atlantic Gas Oil S.A. Ground Floor Cramer 3815 Buenos Aires Jorge Sahade Ave. de Mayo 1324 Buenos Aires BANCO FRANCES: S&P Rates US$1B of Bonds `raBB+' ----------------------------------------------- Standard & Poor's International Ratings, Ltd. Sucursal Argentina assigned a `raBB+' rating to corporate bonds issued by BBVA Banco Frances S.A., on Tuesday. The ratings, which were based on the Company's finances as of the end of June this year, denotes that the obligation has a weak somewhat weak protection parameters relative to other issues in the country. The National Securities Commission of Argentina described the affected bonds as "Programa de Obligaciones Negociables" worth a total of US$1 billion. These were classified as "Program", but the maturity date was not disclosed. BISELLACH: Presents APE To Court -------------------------------- The Civil and Commercial Tribunal of Rasario, Santa Fe received a "Acuerdo Preventivo Extrajudicial" (APE) motion from Bisellach S.A., relates Argentine news source Infobae. Another source revealed that an APE is an out-of-court agreement with creditors. Infobae adds that the province's Court No. 4 holds jurisdiction over the Company's case. However, it did not reveal the details of the APE. BRONI: Court Approves Reorganization ------------------------------------ Argentine news portal Infobae relates that local company Broni S.A. received court permission to undergo reorganization from Buenos Aires' Court No. 16. The Court is assisted by the city's Clerk No. 32, the report adds. After approving the Company's motion for "Concurso Preventivo", the court designated Mr. Alberto Leon Surijon as receiver for the case. The receiver is tasked with the verification of credit claims until October 1 this year. The court instructed the receiver to file the individual and general reports on November 12 and December 29, respectively. An informative assembly will be held on August 25 next year. CONTACT: Alberto Leon Surijon Palestina 906 Buenos Aires CERRO EL POLVORIN: Deadline For Credit Check Expires Today ---------------------------------------------------------- The bankruptcy of Olavarria-based company Cerro El Polvorin proceeds with the preparation of the individual reports, as its receiver, Mr. Ruben Adolfo Vasquez closes the credit verification process today. Infobae earlier revealed that Olavarria's Court No. 2, which holds jurisdiction over the case, ruled that the Company is bankrupt. The same court also assigned Mr. Vasquez as the Company's receiver. CONTACT: Cerro el Polvorin S.R.L. A Barros 2825 Olavarria Ruben Adolfo Vazquez Vicente Lopez 3387 Olavarria DISCO: Uruguayan Court Paves Way for Sale of Ahold's Stake ---------------------------------------------------------- The ban on Royal Ahold's plan to sell interests in Argentine Disco unit is expected to be lifted soon after the Uruguayan court handling a local civil action refused to open a criminal investigation into the Argentine assets. The suit in Uruguay was filed on June 5 by some depositors of Banco Montevideo of Uruguay, which is owned by the Velox Group -- Ahold's former partner in Disco that went bankrupt last year after defaulting on loans. Pending resolution by the local court, Ahold was enjoined from selling any of its interest in Disco. "We are very happy with this decision as it will pave the way to lift the embargo on Disco shares," Ahold spokesman Walter Samuels told Dow Jones. Ahold is currently in the process of selling assets in Argentina, Brazil and Paraguay to cut its EUR12 billion debt load. CONTACT: Royal Ahold N.V. P.O. Box 3050 1500 HB Zaandam Netherlands Phone: +31 (0)75 659 57 20 Fax: +31 (0)75 659 83 02 Home Page: http://www.ahold.com Corporate Communications: Phone: +31 75 659 57 20 EDENOR: Argentine S&P Rates Bonds `raD' --------------------------------------- Corporate bonds issued by Edenor S.A. received junk ratings from Standard & Poor's International Ratings, Ltd. according to the National Securities Commission of Argentina (CNV). The affected bonds were described as "Programa Global del Obligaciones Negociables". The ratings agency said that an obligation is rated `raD' when it is in payment default, or the obligor has filed for bankruptcy. The `raD' rating is used when interest or principal payments are not made on the date due, even if the applicable grace period has not expired, unless Standard & Poor's believes that such payments will be made during such grace period. The CNV revealed that the ratings affect some US$600 million of bonds that mature on November 5, 2006. These bonds were classified under "Program". However, its CUSIP was not revealed. EDESUR: Corporate Bonds Rated `raCCC' by Argentine S&P ------------------------------------------------------ Some US$450 million of bonds issued by Edesur S.A. were rated `raCCC' by the Argentine branch Standard & Poor's International Ratings, Ltd. on Tuesday. The rating, which is based on the Company's finances as of June 30, 2003, means that the bonds are currently vulnerable to non-payment. The bonds were described as "Programa de Obligaciones Negociables" by the National Securities Commission of Argentina. These bonds were classified under "Program". However, its maturity date was not revealed. EL DESTINO: Last Day For Claims Authentication ---------------------------------------------- Creditors of El Destino de Olavarria S.R.L. are required to have their claims verified by the Company's receiver, as the verification process ends today. The receiver, Mr. Ruben Vazquez will start preparations for the individual reports. Court No. 2 of Olavarria ruled that the Company should undergo the bankruptcy process, said Infobae earlier, without indicating whether the court has set the deadlines for the individual and general reports. CONTACT: El Destino de Olavarria S.R.L. A Barros 2825 Olavarria Ruben Adolfo Vazquez Vicente Lopez 3387 Olavarria HELCONST: Court Declares "Quiebra Decretada" -------------------------------------------- Helcost S.A., which is domiciled in Buenos Aires, will undergo the bankruptcy process. Argentine news portal Infobae relates that the city's Court No. 23 ruled that the Company is "Quiebra Decretada". Clerk No. 46 of Buenos Aires works with the court on the bankruptcy case, the report adds. However, Infobae did not mention whether the court has assigned a receiver to the case. MASTELLONE HERMANOS: US$225M of Bonds Get `raD' from S&P -------------------------------------------------------- Mastellone Hermanos S.A.'s corporate bonds were rated `raD' by Standard & Poor's International Ratings, Ltd. Sucursal Argentina on Tuesday. The country's National Securities Commission said that the ratings issued were based on the Company's finances as of the end of June this year. The ratings agency said that an obligation is rated `raD' when it is in payment default, or the obligor has filed for bankruptcy. The `raD' rating is used when payments are not made on the date due, even if the applicable grace period has not expired, unless Standard & Poor's believes that such payments will be made during such grace period. The rating applies to US$225 million of bonds called, "Obligaciones Negociables, autorizadas por AGE de fecha 28.8.97". These bonds were classified under "simple issue", and come due on April 1, 2008. MEGASOCKS: Seeks Court's Nod to Undergo Reorganization ------------------------------------------------------ Argentine sports socks manufacturer Megasocks S.R.L. is seeking court permission to undergo reorganization. Infobae reports that the Company has submitted a motion for "Concurso Preventivo" to Court No. 15 of Buenos Aires. Local newspaper La Nacion reports that the Company stopped making debt payments on July 30 this year. Dr. Di Noto is the insolvency judge handling the case. Dr. Vitale, the city's Clerk No. 30 aids the court. CONTACT: Megasocks S.R.L. San Blas 3069 Buenos Aires METROVIAS: First-half Net Loss Down to ARS100,000 from ARS15 Mln ---------------------------------------------------------------- The first semester net loss of subway system operator, Metrovias, improved substantially this year, according to Business News Americas, citing financial statements posted submitted to the securities regulator, CNV, last week. Compared to last year's ARS15.1 million, this year's first semester net loss only amounted ARS100,000 and overall, first- half operating loss dropped to ARS2.85 million compared to ARS15.3 million in the same period last year. According to the company, these improved results are due to the procedural and cost adjustments that have substantially increased efficiency. The company said it will continue to look for ways to better its financial standing and this include renegotiating the terms of its exclusive 24-year concession contract with the government. Last month, credit rating agency Fitch maintained its Category 3 rating on Metrovias shares. Category 3 is for low-liquidity shares whose issuers have a good capacity to generate profits. Fitch, however, pointed out that a government-dictated fare freeze in the face of increasing costs and dollar-denominated supplies has created pressure on Metrovias' cash flow, while the country's economic situation has led to a drop in passengers. Metrovias is a division of local infrastructure and services company CLISA, which in turn is the infrastructure holding for Argentina's Grupo Roggio. MOXOTO: Receiver Must Submit Individual Reports Today ----------------------------------------------------- Buenos Aires' Court No. 18 requires the receiver for local furniture dealer Moxoto S.A. to submit the individual reports today. The reports will focus on the results of the credit verification process, which ended on June 26. A recent report from local news portal Infobae said that the Company is undergoing reorganization with Buenos Aires accountant, Mr. Mario Galanti Podesta, as receiver. The court has approved the Company's motion for "Concurso Preventivo", flashing the go signal for reorganization. The court also instructed the receiver to have the general report ready by October 6. An informative assembly will be held on April 9, 2004. CONTACT: Moxoto S.A. Lavalle 1494 Buenos Aires Mr. Mario Galanti Podesta Cramer 2175 Buenos Aires OROFRUTAL: Receiver Closes Credit Check Process ----------------------------------------------- The receiver for Buenos Aires-based company Orofrutal S.A. will close the credit verification process for the Company's bankruptcy today. Mr. Raul Jose Abella, the court-designated receiver, is instructed to prepare the individual reports. The city's Court No. 9, which handles the Company's case, ruled that the Company is bankrupt, according to a recent report from local news source Infobae. Clerk No. 17 aids the court on the case. The court ordered the receiver to file the individual reports by October 6 this year. The general report, on the other hand, must be submitted to the court by November 19. CONTACT: Raul Jose Abella Uruguay 660 Buenos Aires PAN'S COMPANY: Court Calls Creditors To Formal Meeting ------------------------------------------------------ Creditors of Pan's Company S.A. must have their credit claims verified by the Company's receiver as the deadline for authentication expires today. The receiver, Estudio Cordeo, Rojas, Nunez y Asociados will now start preparations for the individual reports, as instructed by the court. Buenos Aires' court No. 20, under Dr. Taillade handles the Company's case. The city's Clerk No. 39 aids the court. The report did not mention the deadline for the individual and general reports, however, it revealed that the informative assembly will be held on May 19 next year. The Company declared assets of at least ARS2.72 million, and liabilities of ARS697,886 at the time of filing its "Concurso Preventivo" motion, according to Infobae. CONTACT: PAN'S COMPANY S.A. Pedro Lozano Street No. 5760 Buenos Aires Estudio Cordeo, Rojas, Nunez y Asociados Doblas 631 Buenos Aires PILDAN ROQUE: Court Requires Receiver To File Individual Reports ---------------------------------------------------------------- The Civil and Commercial Court of the province of Buenos Aires requires the receiver of Pildan Roque Vicente Pildan Marcelo Osvaldo S.H. to submit the individual reports regarding the Company's bankruptcy today, August 25. The receiver, Juan Carlos Bianchi completed the credit verification process on June 17 this year. The province's Court No. 4 holds jurisdiction over the case, according to a local source. The court also requires the receiver to file the general report on October 6 this year. CONTACT: Juan Carlos Bianchi, receiver Leandro N. Alem Street No. 37 San Nicholas Province of Buenos Aires PL SUAREZ: Court Grants Creditor's Bankruptcy Petition ------------------------------------------------------ Argentine computer science company PL Suarez S.R.L. enters bankruptcy after Buenos Aires Court No. 4 granted a petition filed by its creditor. Local newspaper La Nacion reports that the Company's failure to pay its $26,532 of debt to Acron S.A. prompted the latter to file a petition seeking its bankruptcy. Buenos Aires accountant Maria Paula Alva is assigned as the Company's receiver throughout the bankruptcy process. Creditors are required to present their proofs of claim to the receiver for authentication before October 10 this year. CONTACT: PL Suarez S.R.L. Emilio Lamarca 4662 Buenos Aires Maria Paulina Alva; 7th Floor Montevideo 536 Buenos Aires POST TOUR: Court Assigns Local Accountant as Receiver ----------------------------------------------------- Alfredo Rodriguez, an accountant from Buenos Aires was assigned receiver for the bankruptcy of local company Post Tour S.A., according to a report from Infobae. He is required by the court to verify creditors' claims until September 15 this year. The source said that the city's Court No. 18 declared the Company bankrupt recently. The court set the deadlines for the individual and general reports as October 27 and December 9, respectively. CONTACT: Alfredo Rodriguez MT de Alvear 1775 Buenos Aires RAMON CASTINEIRA: Cordoba Tribunal Orders Bankruptcy ---------------------------------------------------- The Civil and Commercial Tribunal of Cordoba ruled that Ramon Castineira S.R.L. is "Quiebra Decretada", relates Infobae. The Company will undergo the bankruptcy process with Mr. Luis Antonio Lamborghini as receiver. Creditors must present their proofs of claim to the receiver for verification. After that, the receiver will prepare the individual and general reports, as required by the court. CONTACT: Luis Antonio Lamborghini Juan J Paso 1339 Barrio General Paz Juniors Cordoba SANCAYET: Creditors Sought For Bankruptcy ----------------------------------------- A request from Proveedores Hospitalarios S.A. resulted in the bankruptcy of Argentine company Sancayet S.A., relates La Nacion. Dr. Ballerini, insolvency judge of Buenos Aires' Court No. 24 approved Proveedores' request for the Company's bankruptcy. The Company's creditors have until October 8 to have their claims verified by the receiver, Mr. Ernesto Borzone, who is also tasked with the preparation of the individual and general reports. However, La Nacion did not indicate whether the court has set the deadlines for these reports. CONTACT: Sancayet S.A. Ave. Dierctorio 4709 Buenos Aires Ernesto Borzome Cuenca 1464 Buenos Aires SOINCO: Credit Verification Ends Today -------------------------------------- The credit verification process for the bankruptcy of Argentine company Soinco S.A.C.I. ends today, August 25, 2003. The receiver, Ms. Alejandra Aureli, will prepare the individual reports on creditors' claims. These reports are to be submitted to the court on October 7 this year. The Company was declared bankrupt by the Civil and Commercial Tribunal of Cordoba recently, according to a report from local news source Infobae. The province's Court No. 7, which holds jurisdiction over the case, requires the receiver to have the general report submitted on November 28. CONTACT: Soinco S.A. Avenida Estrada 230 Cordoba Alejandra Aureli Colon 172 Cordoba SOLD ENERGY: Creditors Must Submit Claims before October 14 ----------------------------------------------------------- Creditor of Sold Energy S.A. have until October 14 this year to have their claims verified by the receiver, Ms. Maria Moccia. The receiver will prepare individual reports after the verification process is completed. A report from Infobae indicates that the Company was declared bankrupt recently. Buenos Aires' Court No. 17 holds jurisdiction over the Company's case, while Clerk No. 34 assists the court. However, the report did not mention whether the court has set the deadlines for the individual and general reports. CONTACT: Sold Energy S.A. Ave. Roque Saenz Pena 730 Buenos Aires Maria Moccia Superi 1423 Buenos Aires SUSHI EXPRESS: Receiver Ends Credit Verifications ------------------------------------------------- Ms. Gloria Leonor Della Sala, the receiver for Sushi Express S.R.L. will close the credit verification process today, August 25, 2003. The court has instructed Ms. Sala to prepare the individual reports after the said date, and submit them on October 6 this year. Meanwhile, the general report, which is to be prepared after the individual reports have been presented to the court, must be filed by November 17. The decision for the Company's bankruptcy was from Buenos Aires Court No. 23. CONTACT: Sushi Express S.R.L. 25 de Mayo 432 Buenos Aires Gloria Leonor Della Sala Uruguay 662 Buenos Aires ============= B E R M U D A ============= TRENWICK GROUP: To Sell Trenwick International Limited ------------------------------------------------------ Trenwick Group Ltd. ("Trenwick") announced on Thursday that its subsidiary Trenwick Holdings Limited has entered into a definitive agreement with Bestpark Limited ("Bestpark"), an affiliate of Litigation Control Group Limited ("LCL"), to sell to Bestpark all of the capital stock of Trenwick International Limited ("Trenwick International"), Trenwick's London-based specialty insurance and reinsurance subsidiary, currently in runoff, as well as all of the capital stock of Trenwick Management Services Ltd ("TMS") and Specialist Risk Underwriters Limited ("SRU"). TMS is Trenwick International's management services company. SRU is a company that has carried out underwriting agency services for Trenwick International and other entities. Upon completion of the acquisition, LCL will manage the runoff of Trenwick International. It is anticipated that substantially all of the initial consideration to be paid by Bestpark will be used to pay transactional fees and expenses. The remaining consideration, if any, will be contingent upon a successful runoff of the Trenwick International business. Completion of the sale is subject to the fulfillment of customary closing conditions, including the approval of the Financial Services Authority of the United Kingdom. Background Information Trenwick is a Bermuda-based specialty insurance and reinsurance underwriting organization with subsidiaries located in the United States, the United Kingdom and Bermuda. Trenwick's operations at Lloyd's, London underwrite specialty insurance as well as treaty and facultative reinsurance on a worldwide basis. Trenwick's United States specialty program business, specialty London market insurance company, Trenwick International Limited, and its United States reinsurance business through Trenwick America Reinsurance Corporation are now in runoff. In 2002, Trenwick sold the in- force business of LaSalle Re Limited, its Bermuda based subsidiary. On August 20, 2003, Trenwick and its affiliates LaSalle Re Holdings Limited ("LaSalle Re Holdings") and Trenwick America Corporation ("Trenwick America," and collectively with LaSalle Re Holdings and Trenwick, the "Debtors"), as a step in its previously announced restructuring and in accordance with its August 6, 2003 letter of intent with creditors (the "Letter of Intent"), filed for protection under chapter 11 of the United States Bankruptcy Code (the "Bankruptcy Code") with the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"). Additionally, Trenwick and LaSalle Re Holdings filed proceedings in the Supreme Court of Bermuda, known under Bermudian law as "winding up", as a further step in the restructuring and in accordance with the previously announced Letter of Intent. Trenwick's insurance company subsidiaries, Trenwick America Reinsurance Corporation, The Insurance Corporation of New York, Dakota Specialty Insurance Company and LaSalle Re Limited, all of which are in runoff, and its Lloyd's operations are not subject to the proceedings in the Bankruptcy Court or the Supreme Court of Bermuda and their operations continue. CONTACT: Trenwick Group Ltd. Alan L. Hunte Phone: 441-292-4985 ============= B O L I V I A ============= BANCO MERCANTIL: S&P Affirms Ratings, Revises Outlook To Negative ----------------------------------------------------------------- Standard & Poor's Ratings Services said today that it affirmed its 'B' long-term local and foreign currency credit rating and its 'C' short-term credit rating on Banco Mercantil S.A. The outlook was revised to stable from negative, following a similar rating action on Bolivia's sovereign ratings. The outlook on the sovereign ratings was revised to stable as a result of the improvements in Bolivia's political environment. "In the context of a still frail operating environment, Banco Mercantil has a relatively consistent performance, and at this point, its ratings remain constrained by the sovereign creditworthiness," said credit analyst Carina Lopez. Complete ratings information is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar, select Credit Ratings Actions. CONTACT: Carina Lopez Buenos Aires Phone: (54) 11-4891-2118 Ursula M Wilhelm Mexico City Phone: (52) 55-5279-2007 =========== B R A Z I L =========== COPEL: Parana Governor Vetoes Decision to Hike Power Rates ---------------------------------------------------------- Roberto Requiao, governor of the State of Parana, reversed Wednesday the decision by state-run power firm, Copel, to hike rates by 15.3%, triggering a sharp dive in New York, according to Business News Americas. Mr. Requiao, who vetoed the hike while in official business in the U.S., surprised many including Copel's management team, which announced the hike earlier in the day. This because the state government had earlier said it was amenable to a hike, but only up to 15.3%. In June, Brazil's power regulator Aneel authorized an average price hike of up to 25.3%. On Tuesday, Copel's board said the company would begin to apply the 15.3% increase for customers who did not pay their bills on time. The full increase would be introduced over three months starting in October. "It is a precipitate declaration by the board of directors that does not have the agreement of the government of Parana," Mr. Requiao said in a statement. Mr. Requiao said the money saved on power bills would be injected into the Parana state economy, which is suffering the effects of the Brazilian economic slowdown. Marcos Paulo Pereira, an analyst at Sao Paulo investment bank Socopa, said the decision is a step backwards for the state. "This decision took the market by surprise. This is a very populist attitude by the governor, who doesn't want to pass the price adjustment on to the consumer. It seems he's still on the election trail." "This decision increases the political uncertainty about the governor's plans for Copel. It scares off investors," Mr. Pereira told Business News Americas in an interview. Copel's ADRs in New York lost all of Wednesday's gains following the original announcement. At lunchtime Thursday the ADRs were trading down 5.57% at US$2.88 apiece. SABESP: Secures $200 Mln Loan to Fund Water Treatment Expansion --------------------------------------------------------------- The Japan Bank for International Cooperation agreed to fund the expansion of the water treatment services of Companhia de Saneamento Basico do Estado de Sao Paulo (SABESP). The US$200 million financing will become available next year, according to Gazeta Mercantil, and is payable within 25 years at interests of 1.8% and 2.5% a year, depending on the phase of the project. Japanese ambassador to Brazil, Tadashi Ikeda, and Brazil's Foreign Affairs Minister Celso Amorim signed the agreement earlier last week, the report said. The money will also be used to implement environmental protection programs in the Santos area, a popular tourist spot on the coast of Sao Paulo. CONTACT: SABESP Investor Relations: Helmut Bossert Phone: 5511 3388-8664 E-mail: hbossert@sabesp.com.br Marisa Guimaraes Phone: 5511 3388-9135 E-mail: marisag@sabesp.com.br Home Page: www.sabesp.com.br ========= C H I L E ========= D&S: Announces Second Quarter 2003 Results ------------------------------------------ Distribucion y Servicio D&S S.A. (NYSE:DYS) (Latibex: XDYS) announces second quarter 2003 results. Increase in Net Revenues and Gross Income Net revenues increased by 8.3% compared to the same period last year. Despite a difficult economic environment, which has not shown consistent signs of a rebound in consumption, the Company achieved a 7.7% increase in total sales and gross income of US$95.3 million, equivalent to 23.9% of net revenues, 10.9% more than the US$85.9 million (23.3% of net revenues) last year. Marked Improvement in Operating Income and EBITDA Operating income in the second quarter of 2003 was US$20.9 million, corresponding to 5.2% of net revenues, compared to US$13.0 million, or 3.5% of net revenues, in the same period last year, an increase of 60.2%. EBITDA in the first quarter of 2003 totaled US$34.2 million, corresponding to 8.6% of net revenues, compared to US$25.1 million, or 6.8% of net revenues, last year, an increase of 36.3%. Such a significant improvement in relation to the same period last year is due to the essentially unchanged position of total operating expenses (0.5% increase). Operating profit and EBITDA growth are driven, therefore, by increases in sales and gross income, along with expense adjustment. Non-Operating Income and Net Income Net income for the second quarter 2003 was US$10.3 million, 2.6% of net revenues, a 4.0% increase over the same period in 2002. Despite a major improvement in terms of operating results, it has not resulted in any sizeable improvements in net income given unfavorable non-operating results showing a 542.6% of loss increase generated mainly by a large loss originating in an exchange difference (applied on US$90 million of accounts receivable from Ahold). Decrease in Inventory Days Inventory Days on a consolidated basis decreased by 3.9, from 36.5 days in the second quarter 2002 to 32.6 in 2003. The decrease was particularly noticeable in the grocery area (33.4 days in 2002 compared to 22.8 days in 2003), followed by a reduction in the non-food business areas (from 109.2 days in 2002 to 79.3 days in 2003). Figures reflect greater efficiency both at the distribution center and in stores as a result of specific policies aimed at better inventory management, strict controls and implementation of sell-out campaigns in Non-Food areas. Financial Debt Reduction Financial debt as of June 30 was US$386.4 million, comparing favorably with financial debt at the close of first quarter 2003 of US$397.1 million. The US$10.7 million reduction was attributable to a greater availability of cash flow generated by the Company. CAPEX The Company is rolling out its investment program as planned, including the construction of a hypermarket in the Metropolitan Region (municipality of Huechuraba) that will open by October; several store remodelings and transformations intended to re- brand stores, uniting all formats under the LIDER brand (LIDER Vecino Los Dominicos, La Dehesa and Estoril; LIDER Express Pedro de Valdivia, Irarrazaval and Plaza Egana); investment in logistics (cold supply-chain); and the purchase of land for new projects. Additionally, three recently leased stores in Regions (2 in Rancagua-VI Region, one in Valparaiso- V Region) are being remodeled and are expected to open by the end of August and September. As of June 30, 2003, the Company has made US$19.3 million in investments out of a total budget of US$50 million approved for the current year. Priorities: Improving Efficiency and Implementing EDLP Even though priorities continue to be increasing our national coverage, growing core businesses and promoting further development in non-traditional business areas, thus increasing share of family spending ("share of wallet"), daily operations are mainly focused on improving efficiency standards Company-wide and implementing a new EDLP commercial strategy to improve profitability and returns on businesses. An EDLP pilot was launched in Rancagua on May 29 with promising results as of this date. The roll-out of this program is on schedule. To see the Company's Income Statement, click: http://bankrupt.com/misc/DYS.htm CONTACT: Distribucion y Servicio D&S S.A. Cristobal Lira, CEO Phone: 56-2-200 5211 Email: clira@dys.cl Miguel Nunez, CFO Phone: 56-2-200 5735 Email: mnunez@dys.cl Loreto Bradford, IRO Phone: 56-2-200 5363 Email: lbradford@dys.cl INVERLINK: Creditors to Pick Insurance Biz Buyer Wednesday ---------------------------------------------------------- The winning bidder for the health insurance business of Inverlink, the financial services group undergoing liquidation proceedings, will be known Wednesday, Business News Americas says. Inverlink trustee, Marcos Sanchez, was quoted last week saying creditors will choose the winning bid at a meeting Wednesday. The report said the company received at least two concrete offers by the August 18 deadline. Accordingly, the potential buyers include local medical association La Perva, the same company that purchased health clinic, Las Lilas, from Inverlink in May for CLP414 million. Its bid is estimated to be US$3.5 million. VidaPlena, the health insurance unit up for grabs, has 74,000 contributors, of which 68% are in capital Santiago with the majority under 44 years of age. At end-January the company had a 6.8% share of Chile's private health insurance market. Inverlink, which is being liquidated as part of the process to reimburse creditors, is also undergoing legal proceedings for corporate theft and corruption. MADECO: Public Offer Spurs Sharp Rally in Santiago, New York ------------------------------------------------------------ A day after Madeco auctioned US$32.5 million worth of stocks, shares of the Chilean copper and aluminum products manufacturer rose sharply in both Santiago and New York, said Business News Americas. A key part of the company's financial restructuring, the shares offered to the public last week represented about 22% of the firm. Around 816 million shares were sold at 28 pesos a piece on Wednesday, according to the report. The following day, Madeco shares were up around 8% in Santiago, where they closed at 31.2 pesos, and New York, where the company's ADRs ended the day at US$4.41. Controlled by Chile's Luksic group through its Quinenco holding company, the company operates in Chile, Argentina, Brazil and Peru. CONTACT: Marisol Fernandez Investor Relations Voice: (56 2) 520-1380 Fax: (56 2) 520-1545 E-mail: mfl@madeco.cl Web Site : www.madeco.cl MANQUEHUE: Plans Massive Expansion of Wi-Fi Service this Year ------------------------------------------------------------- Manquehue CEO Jorge Troncoso expects at least 30 Wi-Fi hotspots to be up and running by year's end, disclosing last week that he is in talks with a number of corporate clients interested in making this happen. Speaking during the launch of the service at the Atton Hotel -- which is offering the service as an extension of the 2Mbps broadband connection it has with Manquehue -- Mr. Troncoso said demand for the service has been more than the company had originally expected. The company said broadband clients at the end of the first-half numbered 8,000. Manquehue is implementing Nokia 802.11 b and g solutions and for the time being is offering the service only in the capital Santiago. Mr. Troncoso, meanwhile, said performance in the first-half this year was far superior to last year's. Full results will be published at the end of the month. CONTACT: MANQUEHUE NET S.A. Av. Condor 796, Enterprise City, Huechuraba Santiago Chile Phone: 00 562 243 8800 Fax: 00 562 248 7292 EMAIL: info@manquehue.netl Home Page: http://www.manquehue.net/ http://www.manquehue.cl Contact: Mr. Miller Williams, President Sr.Jos, Luis Rabat Vilaplana, Vice President =============== C O L O M B I A =============== ALIANZA SUMMA: Shareholders Vote to Liquidate Firm -------------------------------------------------- A decision on the fate of some 3,000 Alianza Summa employees will be known before the end of the month, local daily Ingles said Thursday. The paper said Alianza Summa, the parent of now-defunct ACES airlines, submitted the request to fire the said employees about two months ago and Social Protection Minister Diego Palacio had promised to decide on the matter sometime this month. Alianza cites mounting operating costs, a drop in revenue and the need to restructure the company as reasons for the hefty job-cut. Last Thursday, shareholders opted to liquidate the company after reviewing its financial situation. Founded in 1972 as a domestic carrier, the airline started flying international routes to Miami, the Dominican Republic, Panama and Puerto Rico two years ago. FERTICOL: Seeks COP1 Billion in Fresh Capital --------------------------------------------- Fertilizantes Colombianos (Fericol), a key state-owned company that emerged from bankruptcy eight months ago, is now seeking a capital injection of COP2 billion, according to South American Business Information. The report did not specify how the money will be raised, but the plan has the blessings of creditors. Emerging from bankruptcy, the company secured an agreement from creditors, under Colombia's Law 550 (the equivalent of the U.S. Chapter 11), allowing it to restructure debt of COP22 billion in five years. Creditors of the company include Caja Agraria, which holds 49% of total debt; Ecopetrol, 26%; UIS, 16%; and a number of smaller creditors, 9%. The company produces around 2,400 metric tons of fertilizers per month of ammonium nitrate, 750 metric tons of urea, 3,400 metric tons of nitric acid, nitrates and nitrate solution for the domestic and international markets, the report said. Currently, it has monthly sales of COP1.3 billion and ended the first half of this year with profits of COP1 billion. =================================== D O M I N I C A N R E P U B L I C =================================== EDE-ESTE: Legal Struggle With CDEE Begins ----------------------------------------- The legal tussle between AES Distribuidora del Este (Ede-Este) and state power company, CDEEE, began Friday at a court based in capital city Santo Domingo. According to Business News Americas, which at the time of this writing had yet to gather hearing details, said Ede-Este was expected to anchor its argument on a compensation mechanism the two companies had agreed on previously. The suit, filed by Ede-Este, is an upshot to the freezing of its account by CDEEE, which resorted to this measure after the former failed to pay DOP1.3 billion in June. Of the amount DOP700 million were capitalized, leaving DOP600 million outstanding, the report said. But Ede-Este questioned the haste at which CDEEE froze its accounts, claiming it should have followed the compensation mechanisms agreed by the two companies before resorting to such drastic action. This mechanism, according to the report, includes deducting bills from government institutions considered "vital services" from Ede-Este's debt. Business News Americas said Ede-Este has supplied DOP90 million worth of power to these institutions over the last few months, and the CDEEE has received partial payment of DOP30 million from the finance ministry corresponding to those bills. "[CDEEE] has not reduced Ede-Este's debt proportionally," said the paper, citing Ede-Este, which cites this as one of the basis in claiming that CDEEE breached the so-called compensation mechanism. =========== M E X I C O =========== GRUPO TMM: Kansas City Southern Reacts to TMM Shareholder Vote -------------------------------------------------------------- Kansas City Southern (NYSE:KSU) has reacted further to the unexpected Grupo TMM, S.A. ("TMM") shareholder vote on Monday, August 18, 2003, which did not approve the transaction to sell TMM's interests in Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. to Kansas City Southern. These reactions were contained in a letter from its counsel to TMM's counsel, which has been filed with the U.S. Securities and Exchange Commission ("SEC"). To see a copy of the said letter, click: http://bankrupt.com/misc/KCS.htm. CONTACT: Kansas City Southern William H. Galligan Phone: 816-983-1551 Email: william.h.galligan@kcsr.com Gabriel Guerra Phone: 011-5255-5273-5359 Email: Gguerra@gcya.net PEMEX: Posts 30% Increase in First-half Sales --------------------------------------------- Sales of state-owned oil monopoly, Petroleos Mexicanos (Pemex) jumped 30% in the first-half, as increased export volumes and domestic sales connived with the price hike in petroleum products. The huge sales rebound substantially lowered the net loss for the first-half, according to the Associated Press. Pre-tax income was up 36 percent in real terms from the year-ago period. Export sales rose 47 percent, while domestic sales grew 22 percent. Costs rose 34 percent, the report added. In the first half of this year, Pemex produced an average of 3.33 million barrels a day of crude oil, of which it exported 1.86 million billion at an average price of $24.64 a barrel. In the year-ago period the company only produced 3.17 million barrels per day, exporting 1.64 million billion at $19.70 a barrel. The report did not indicate when the company will release the official figures. ======= P E R U ======= MINERA VOLCAN: BCP Ratings Downgrade Cites Worsening Condition -------------------------------------------------------------- The uncertainty of Volcan's future plans forced Peru's Banco de Credito (BCP) to maintain its "reduce" stock recommendation on the company's series B shares, Business News Americas said. The bank said aside from the fact that the shares are overvalued at .33 soles, the company's worsening financial condition coupled by depressed international zinc prices necessitated the adverse recommendation. Prior to the downgrade, BCP had a "hold" rating on the shares until February this year. A rally in the Volcan B share price of 60.3% in the second quarter of 2003 failed to lift the "reduce" recommendation because it was mainly due to expectations of a new strategic partner joining forces with the cash-strapped company, the bank explained. Formerly Peru's largest zinc producer, the company attracted offers from Brazil's Paraibuna de Metais (part of the Votorantim group), Peru's tin miner Minsur and Swiss natural resource group Glencore. Of the three, it is thought that Glencore's offer is the "most attractive" but the final result of talks has not yet been made public. Volcan posted a US$8.1 million- loss in the second quarter of 2003, compared to a loss of US$5.5 million in the same period last year. Revenue dropped 5.6% year on year due to lower volumes sold and weaker zinc prices, the bank said. Volcan operates the Yauli and Cerro de Pasco units in central Junin and Pasco departments respectively. It also has the Chungar unit in Pasco. *Peru: S&P Affirms Ratings, Outlook Stable ------------------------------------------ NEW YORK (Standard & Poor's) Aug. 21, 2003--Standard and Poor's Rating Services said today it affirmed its 'BB+' long-term local, its 'BB-' long-term foreign, and its 'B' short-term currency sovereign credit ratings on the Republic of Peru. The outlook remains stable. According to sovereign analyst Sebastian Briozzo, Peru's still- evolving political institutions and high external debt continue to constrain its creditworthiness, although economic stability and moderate fiscal imbalances somewhat mitigate these vulnerabilities. "In this regard, Peru's external liquidity position has also strengthened recently," Mr. Briozzo said. "GDP grew by 5.2% in 2002 after four years of only minor economic growth, and growth rates of about 4% are expected over the next two years, reducing near-term risk," he added. Attempts by President Alejandro Toledo to regain public support have resulted in a sequence of cabinet reshuffles over the last two years. "While these changes did not lead to shifts in economic policy, they limited the government's ability to implement its reform agenda," Mr. Briozzo explained. "Further broadening of the tax base and continued improvements in tax compliance are key to the government's medium-term fiscal consolidation strategy," he said. Mr. Briozzo said that a narrow tax base, along with the lack of flexibility on the expenditure side, has slowed progress in fiscal consolidation. Heavy use of the U.S. dollar in domestic markets, with 72% of bank deposits denominated in foreign currency, constrains monetary policy options. "Peru's stable outlooks reflects Standard & Poor's expectation that the government will continue to pursue its economic agenda, although at a pace that is hampered by president's low popularity and weak support in Congress," said Mr. Briozzo. "While the risks of policy reversal are low, no major advances are expected on the privatization agenda over the near term," he concluded. ANALYST: Sebastian Briozzo New York Phone: 212-438-7342 Lisa M Schineller New York Phone: (1) 212-438-7352 ================================= T R I N I D A D & T O B A G O ================================= CARONI: Injunction on VSEPs Payments Extended to September 17 ------------------------------------------------------------- The order enjoining Caroni (1975) Ltd. from further paying dismissed employees VSEPs was sustained by a San Fernando Civil Court late last week. Justice Amrika Tiwary first issued the injunction after the Caroni (Brechin Castle) Credit Union Cooperative Society Ltd filed a TT$5 million claim against the company. Through lawyer, Dave Persad, the credit union alleged it is owed TT$4,165,343.50 and TT$832,551.82, representing money collected by Caroni from employees on the credit union's behalf and money that was supposed to be deducted upon the termination of their employment. Justice Maureen Rajnauth-Lee sustained the order and extended its effectivity to September 17, according to The Trinidad Express. About 9,000 Caroni workers have been offered VSEPs earlier this year. There are about 1,000 daily paid workers set to claim their VSEPs. Attorney for Caroni Devish Maharaj told the court the parties were in discussions with a view to resolving the dispute amicably. He claims some money had been paid to the credit union, but he could not say how much. *********** 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 * * *