/raid1/www/Hosts/bankrupt/TCRLA_Public/030828.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, August 28, 2003, Vol. 4, Issue 170
Headlines
A R G E N T I N A
AACMSA: Court Assigns Receiver For Reorganization
ANTON HERMANOS: Claims Check Ends Today
BANCO RIO: Ratings Raised to 'CCC+' From 'SD'; Outlook Stable
CAVAN: Court Orders "Concurso Mercantile Liquidatorio"
ENVIO EXPRESS: Receiver Verifies Claims
FIOUGGI: Creditors Required To Present Claims For Verification
FLEXOGRAFICA: Court Approves "Concurso Preventivo" Motion
FRANCISCO L PADILLA: Credit Check For Reorganization Ends
FRODI: Credit Verification Deadling Set for October 6
FRUTICOLA TALCAHUANO: Creditor Files Involuntary Bankruptcy
GRISCAN ILUMINACION: Receives Court's Nod For Reorganization
GRUTTI: Receiver Closes Verification Process
HAVANNA: Group Signs Letter of Intent With Exxel
IMPORCAB: Court Declares "Quiebra Decretada"
INSTITUTO DE ENSENANZA: Gets Courts Permission to Reorganize
INSTITUTO RADIOLOGICO: Cordoba Tribunal OK's Reorganization Plan
LAPA: Chilean Airline Sets Eyes on Lafsa
LUIS ROMERO: Receiver Ends Credit Check
MARIA DE BUENOS AIRES: Court Assigns Receiver For Bankruptcy
PETROBRAS ENERGIA: Reports Sharp Rise In Average Daily Production
PINAR: Court Approves Creditor's Petition For Bankruptcy
SUITES DE VACACIONES: Court Assigns Receiver For Bankruptcy
TELECOM ARGENTINA: US Investment Fund Buys 5% Stake
TELEFONICA DE ARGENTINA: May Collapse Without Rates Hike
TODO SANO: Receiver Verifies Creditors' Claims
B R A Z I L
ELETROPAULO METROPOLITANA: AES Names Eduardo Jose Bernini CEO
EMBRATEL: Wins Unibanco's Local Telephone Bid
VARIG: Hopes To Sign This Week Sure Deal To Merge With TAM
C O L O M B I A
BANCAFE: 55% Stake To Go On Auction Block By Year-End
BAVARIA: To Sell Bonds As Part of Debt Refinancing
J A M A I C A
KAISER ALUMINUM: Nears Sale of Jamaican Operations
PIL: Chambers Begins Liquidation Process
M E X I C O
GRUPO TMM: Provides More Info About Judgment On TFM's VAT Claim
SINGER MEXICO: May File Request For Concurso Mercantil
U R U G U A Y
UTE: Gets Court's Okay To Tender Thermo Plant Contract
V E N E Z U E L A
PDVSA: Oil Chamber Exec. Asks To Halt Retaliation
SIDOR: Most of Last Year's Purchases Came From Domestic Market
- - - - - - - -
=================
A R G E N T I N A
=================
AACMSA: Court Assigns Receiver For Reorganization
-------------------------------------------------
Carlos Ferreyra y Reisin is appointed as receiver for Armando A
Cargnelutti Minerales S.A., which is domiciled in Cordoba,
Argentina, relates local news source Infobae. The Company's
creditors must present their proofs of claim for verification
before October 3 this year, the report adds.
The Civil and Commercial Tribunal of Cordoba recently approved
the Company's motion for "Concurso Preventivo". The province's
Court No. 33 handles the case.
CONTACT: Carlos Ferreyra y R Reisin
Luis Tejada 3933
Cordoba
ANTON HERMANOS: Claims Check Ends Today
---------------------------------------
The credit verification process for the bankruptcy of Argentine
company Anton Hermanos S.R.L. ends today. The receiver, Ms. Maria
Cenatiempo, who verified creditors' claims, will prepare the
individual reports.
Buenos Aires' Court No. 3 holds jurisdiction over the Company's
case, according to an earlier report released by local news
source Infobae. The court requires the receiver to file the
individual reports on October 9. The general report must be
submitted on November 20.
CONTACT: Maria Cenatiempo
Ave. de Mayo 1365
Buenos Aires
BANCO RIO: Ratings Raised to 'CCC+' From 'SD'; Outlook Stable
-------------------------------------------------------------
Standard & Poor's Ratings Services said Tuesday that it raised
its ratings on Banco Ro de la Plata S.A. to 'CCC+' from 'SD',
reflecting the successful completion of its comprehensive foreign
debt-restructuring process. The outlook is stable.
The ratings on all Argentine banks had been placed in 'SD'
following the government's decision to impose limitations on cash
withdrawals, an indication that banks had failed to return
deposits under the conditions originally contracted. The
subsequent restructuring of frozen deposits that took place
during 2002 (conversion into pesos, indexation to inflation, and
extension of maturities) also conveyed the default of Argentine
financial entities.
Since restrictions on cash withdrawals from sight accounts were
lifted in December 2002 and the restructuring of deposits can be
considered as final, however, the reasons to maintain the 'SD'
rating on all Argentine banks have disappeared. Additionally,
Banco Rio recently completed a comprehensive foreign debt-
restructuring process and is current in all its outstanding
liabilities.
In November 2002, Banco Rio started the debt restructuring
process with an exchange offer on the $250 million, 8.75% senior
notes maturing in December 2003, which at the time were rated 'D'
as Standard & Poor's considered that the proposal affected the
net present value of the bonds.
Bondholders representing 73% of the total issue accepted the
bank's exchange offer at closing in April 2003 while interests
due were met.
Additionally, liabilities with Correspondent Banks totaling
$553.5 million were subsequently refinanced and last June,
despite being one of the institutions with the highest level of
external financing in Argentina, Banco Rio became the first bank
to successfully complete a debt restructuring process by which
the amount of the bank's liabilities was reduced, interest rates
were lowered, and maturities were extended to an average life of
four years.
"In combination with a significant expense reduction and the
lower cost of liabilities after the bank's successful
restructuring, Banco Rio is in an excellent position to start
soon achieving positive margins, which is not the case for most
of the banks in the Argentine financial system," said credit
analyst Carina Lopez.
The stable outlook reflects the improvement in the Argentine
operating environment, where banks now enjoy ample liquidity and
the cost of funding through deposits has notably declined. In
this relatively more benign environment, the improved confidence
in the Argentine financial system is leading most depositors to
maintain their funds in local banks.
ANALYST: Carina Lopez, Buenos Aires (54) 11-4891-2118
CAVAN: Court Orders "Concurso Mercantile Liquidatorio"
------------------------------------------------------
Cavan S.A. which is undergoing reorganization, is placed under
"Concurso Mercantil Liquidatorio", by Buenos Aires Court No. 8.
According to local news source Infobae, the court has appointed
Mr. Sergio Leonardo Novick as the Company's receiver.
The verification of creditor claims will end on September 26 this
year. Following that date, the receiver will prepare the
individual reports, which must be presented to the court on
November 10. The general report will follow on December 23.
CONTACT: Sergio Leonardo Novick
Libertad 359
Buenos Aires
ENVIO EXPRESS: Receiver Verifies Claims
---------------------------------------
Susana Ines Santorsola, receiver for Buenos Aires-based Envio
Express S.R.L., will verify creditors' claims until October 13
this year. A report by Infobae says that the city's Court No. 12
handles the Company's case with assistance from Clerk No. 23.
The Court requires the receiver to file the individual reports,
which are to be prepared after the verification of credit claims,
on November 24. The general report must be submitted on February
5 next year.
CONTACT: Susana Ines Santorsola
Marcelo T. de Alvear 1363
Buenos Aires
FIOUGGI: Creditors Required To Present Claims For Verification
--------------------------------------------------------------
Creditors of bankrupt company Fiouggi S.A. are required to
present their claims to Ms. Patricia Narduzzi, the court-
appointed receiver for verification. According to an article
released by Argentine newspaper La Nacion, the credit
authentication process will end on February 11 next year.
Buenos Aires' Court No. 21, which is under Dr. Paez Castaneda
earlier declared the Company bankrupt. The city's Clerk No. 42,
Dr. Barreiro, aids the court on the case.
The ruling came after the Company's creditor, Etiquetas Zalaquett
S.A. filed a bankruptcy petition to the court. The Company, which
makes ready-to-wear garments, failed to meet its obligations on
some $5028 of debt to Etiquitas.
CONTACT: Fiouggi S.A.
Ave. de los Incas 4552
Buenos Aires
Patricia Narduzzi
1st Floor
Rivadavia 666
Buenos Aires
FLEXOGRAFICA: Court Approves "Concurso Preventivo" Motion
---------------------------------------------------------
Flexografica del Centro S.R.L., which is domiciled in Buenos
Aires, filed a motion for "Concurso Preventivo", seeking court
permission to undergo reorganization. A report by Infobae earlier
said that the Cordoba's Court No. 52 handles the Company's case.
The Civil and Commercial Tribunal of Cordoba assigned Ms. Ester
Catalina Tuninetti as the Company's receiver. However, the report
did not mention whether the court has set the deadlines for the
verification of credit claims, as well as the individual and
general reports.
CONTACT: Ester Catalina Tuninetti
9 de Julio 183
Cordoba
FRANCISCO L PADILLA: Credit Check For Reorganization Ends
---------------------------------------------------------
The reorganization of Argentine company Francisco L. Padilla e
Hijos S.A. proceeds with the preparation of the individual
reports as the deadline for the credit verification process
expires. The court requires the receiver, Mr. Roberto Maglio to
prepare the reports.
An earlier report by the Troubled Company Reporter - Latin
America indicated that the Company stopped making debt payments
on February 2 last year. The Company received permission to
undergo reorganization from Buenos Aires Court No. 15.
CONTACT: Francisco L. Padilla e Hijos S.A.
French 2251
Buenos Aires Province
Roberto Maglio
Ave. Corrientes 1396
Buenos Aires
Phone: (005411) 4383 7586
FRODI: Credit Verification Deadling Set for October 6
-----------------------------------------------------
The credit verification process for the bankruptcy of Buenos
Aires-based company Frodi S.A. will end on October 6 this year.
Infobae reports that creditors must submit their claims to the
receiver, Mr. Gustavo Manay for authentication.
The report also reveals that the city's Court No. 17 handles the
bankruptcy case with assistance from Clerk No. 33. However, the
report fails to indicate the deadlines for the individual and
general reports.
CONTACT: Frodi S.A.
Ave. Rivadavia 2986
Buenos Aires
Gustavo Manay
Montevideo 666
Buenos Aires
FRUTICOLA TALCAHUANO: Creditor Files Involuntary Bankruptcy
-----------------------------------------------------------
A creditor of Fruticola Talcahuano sought the Company's
bankruptcy, according to Argentine newspaper La Nacion. Mr. Mario
Sobol, to whom the Company owes some $1500 filed a petition for
bankruptcy, which was approved by Buenos Aires' Court No. 20,
said the report.
Dr. Taillade, the insolvency judge handling the case, is assisted
by Dr. Amaya. Buenos Aires' Clerk No. 39. Local news portal
Infobae earlier revealed that the court has appointed Mr. Jacobo
Shalum as the Company's receiver.
Mr. Shalum will verify creditors' claims until November 12 this
year, said La Nacion. The receiver is also required to prepare
the individual and general repots, which are to be prepared after
the verification process is completed. However, both sources did
not mention whether the court has set the deadline for the
individual and general reports.
CONTACT: Fruticola Talcahuano S.A.
6th Floor Room 62
Ave. Corrientes 3169
Buenos Aires
Jacobo Shalum
5th Floor
Lavalle 1672
Buenos Aires
GRISCAN ILUMINACION: Receives Court's Nod For Reorganization
------------------------------------------------------------
Court No. 25 of Buenos Aires approved a "Concurso Preventivo"
motion filed by local company Griscan Iluminacion S.H., reports
Infobae. The court, which is assisted by the city's Clerk No. 50,
gives the Company the go signal to undergo reorganization.
Mr. Raul Brener is chosen as the Company's receiver, who will
verify creditors' claims. The verification period ends on October
1 this year. The court instructed the receiver to prepare the
individual reports after the said date. However, the report does
not indicate whether the court has set the deadline for the
individual and general reports.
CONTACT: Raul Brener
Lambare 1140
Buenos Aires
GRUTTI: Receiver Closes Verification Process
--------------------------------------------
Mr. Oscar Luis Serventich, receiver of Buenos Aires-based Grutti
S.A., will close the credit verification process today. The court
has instructed the receiver to prepare the individual reports
after the deadline for checking credit claims expires today,
August 28, 2003.
The city's Court No. 1 earlier declared the Company bankrupt,
according to a previous report by the Troubled Company Reporter -
Latin America. The court orders the receiver to file the
individual reports on October 9. The general reports must be
filed on November 20.
CONTACT: Oscar Luis Serventich
Piedras 1319
Buenos Aires
HAVANNA: Group Signs Letter of Intent With Exxel
------------------------------------------------
Desarrollo y Gestion, an investment holding owned by Carlos
Giovanelli; Guillermo Stanley, Citibank Argentina's former
president and vice-president; and Chrystian Colombo, a member of
Fernando de la Ruas government, have signed a letter of intention
with The Exxel Group for the acquisition of Argentina's
traditional confectionery firm Havanna.
The 70% of Havanna belongs to Exxel and the other 30% is in hands
of the Deutsche Bank, as a result of a debt with the entity.
Havanna owes Sudameris, Deutsche Bank, Citibank and others US$32
million. The deal will take place only if Desarrollo y Gestion
manages to reach an agreement with creditor banks and the judge
in charge of Havanna's formal restructuring proceeding approves
it. However, market sources said banks would have given green
light to the sale.
Giovanelli, Stanley and Colombo would not keep Havanna, but would
only act as intermediaries for another group of businessmen from
the food industry and the financial sector.
Havanna bills over ARS35 million annually, has 110 outlets and is
carrying out an expansion plan. It is also expanding its exports
of alfajoresto non-traditional destinations such as Israel,
Venezuela, Italy and Spain and the government of China is trying
to convince it to produce there.
IMPORCAB: Court Declares "Quiebra Decretada"
--------------------------------------------
Court No. 12 of Buenos Aires ruled that local company Imporcab
S.A. is "Quiebra Decretada", placing the Company under
bankruptcy. Argentine news portal Infobae reports that the city's
Clerk No. 23 aids the court on the case.
The court appointed Mr. Juan Jose Colace as the Company's
receiver, the report adds. Creditors have until September 8 to
present their claims to the receiver for verification. After
that, the receiver will prepare the individual reports, which
must be submitted to the court on October 20. The court requires
the receiver to file the general report on November 1.
CONTACT: Juan Jose Colace
Presidente Peron 1509
Buenos Aires
INSTITUTO DE ENSENANZA: Gets Courts Permission to Reorganize
------------------------------------------------------------
Instituto de Enseanza Privada Pedro Goyena S.A., a private
school in Buenos Aires, received court permission to undergo
reorganization recently. Dr. Ottolenghi, the insolvency judge in
Buenos Aires Court No. 4, approved the Company's motion for
"Concurso Preventivo", relates local newspaper La Nacion. The
city's Clerk No. 8, Dr. Anta works with the court on the case.
Creditors have until October 21 this year to have their claims
verified by the receiver, Ms. Maria Leizerow. After the
verification period, the receiver will prepare the individual and
general reports. However, the report did not mention whether the
court has set the deadline for these reports.
An informative audience will be held on September 8 next year,
the report says, without revealing the intended time and venue.
CONTACT: Instituto de Enseanza Privada Pedro Goyena S.A.
4th Floor, Room B
Viamonte 2043
Buenos Aires
Maria Leizerow
7th Floor, Room 713
Lavalle 1290
Buenos Aires
INSTITUTO RADIOLOGICO: Cordoba Tribunal OK's Reorganization Plan
----------------------------------------------------------------
The Civil and Commercial Tribunal of Cordoba approved a motion
for "Concurso Preventivo" filed by local company Instituto
Radiologico Privado Dr. Di Reinzo S.R.L., relates local news
portal Infobae. The Company will now undergo reorganization.
Without naming the designated receiver, the report says that the
deadline for the verification of credit claims is September 9
this year. After that, the receiver will file the individual
reports on October 27. The province's Court No. 52, which holds
jurisdiction over the case requires the receiver to hand in the
general report on February 9, 2004.
CONTACT: Instituto Radiologico Privado Dr. Di Rienzo S.R.L.
Ave. General Paz 147
Cordoba
LAPA: Chilean Airline Sets Eyes on Lafsa
----------------------------------------
Chiles airline LanChile confirmed it is interested in taking part
in the tender process for the acquisition of Argentina's Lineas
Aereas Federales (Lafsa), the new carrier being set up by the
local government in order to absorb businesses and staff of
bankrupt Lapa.
LanChile has been planning to expand operations in Argentina and
one of the alternatives under analysis is the acquisition of
Lafsa. Enrique Cueto, LanChile's executive vice-president, said
the Company has already held meetings with Argentine authorities
to discuss this possibility.
Meanwhile, Argentine president, Nestor Kirchner and the Minister
of Planning, Julio De Vido, are working on a decree that will
establish an alliance between Southern Winds (SW) and Lafsa. SW
and governmental authorities believe that this association will
imply lower costs than the alternative of launching Lafsa on its
own. In particular, they estimate savings of US$10 million.
LUIS ROMERO: Receiver Ends Credit Check
---------------------------------------
Mr. Mario Eduardo Guimpel, the court-appointed bankruptcy
receiver for Luis Romero S.R.L., ends the credit verification
process today, as instructed by the court. The receiver will now
prepare the individual reports, which must be presented to the
court on October 9.
An earlier report by the Troubled Company Reporter - Latin
America indicated that Buenos Aires' Court No. 9 holds
jurisdiction over the Company's case. The Court requires the
receiver to hand in the general report on November 25 this year.
CONTACT: Mario Eduardo Guimpel
Parana 768
Buenos Aires
MARIA DE BUENOS AIRES: Court Assigns Receiver For Bankruptcy
------------------------------------------------------------
Buenos Aires' Court No. 19, which is under Dr. Fernandez,
assigned Mr. Eduardo Aquinaga as receiver for the bankruptcy of
local textile company Maria de Buenos Aires S.A. recently. The
receiver will verify creditors' claims until October 3 this year,
Argentine newspaper La Nacion reports.
Dr. Fernandez, the insolvency judge handling the case, is
assisted by the city's Clerk No. 38, Dr. Johnson. The court
declared the Company bankrupt upon a request Ms. Rosa Garcia. The
Company reportedly failed to make payments on some $6158 in debt
to Ms. Garcia.
The report did not mention, however, whether the court has set
the deadline for the individual and general reports. These
reports are prepared upon completion of the credit verification
process.
CONTACT: Maria de Buenos Aires S.A.
Ave. Independencia 584
Buenos Aires
Eduardo Aquinaga
Pergamino 331
Buenos Aires
PETROBRAS ENERGIA: Reports Sharp Rise In Average Daily Production
-----------------------------------------------------------------
Petrobras Energia Participaciones S.A. registered total oil and
gas production of 163,800 equivalent oil barrels per day in July,
the Argentine energy company disclosed in a filing with the
Buenos Aires Stock Exchange.
The figure is a sharp rise from the average in the first half of
2003, according to Dow Jones.
In the first half of 2003, the Company, which is controlled by
Brazilian energy giant Petroleo Brasileiro S.A, saw its oil and
gas production go down to 155,400 equivalent oil barrels per day,
because of the strike in Venezuela and reduced investments in
Argentina last year.
Earlier this month, company officials said they hoped the
Argentine firm would be producing 170,000 equivalent oil barrels
per day by year's end.
Petrobras Energia Participaciones, formerly known as Perez
Companc S.A., said in the filing that around half of its oil
production and three quarters of its gas production came from
Argentina.
Venezuela was the second biggest production source, accounting
for 41,400 barrels of oil per day and 3,600 daily equivalent oil
barrels of natural gas.
PINAR: Court Approves Creditor's Petition For Bankruptcy
--------------------------------------------------------
Dr. Gutierrez Cabello, insolvency judge of Buenos Aires' Court
No. 7, approved a motion for the bankruptcy of local company
Pinar S.R.L., relates La Nacion. The Company's creditor, Cuyo
Placas S.A., filed the bankruptcy petition, the report adds.
Dr. Cabello, who works with the city's Clerk No. 14, Dr.
Giardinieri, assigned Mr. Roberto L. Sapollnik as receiver for
the Company. The receiver will verify creditors' claims until
October 14 this year.
The Company is involved in marketing construction materials. The
Company's failure to meet its financial obligations to Cuyo
Placas prompted it to file the bankruptcy petition.
CONTACT: Pinar S.R.L.
6th Floor, Room A
Zapata 100
Buenos Aires
Roberto Sapollnik
10th Floor, Room 41
Parana 851
Buenos Aires
SUITES DE VACACIONES: Court Assigns Receiver For Bankruptcy
-----------------------------------------------------------
Mr. Marcelo Edgardo Mirasso has been assigned as receiver for the
bankruptcy of Suites de Vacaciones S.A.. According to a report by
Infobae, the court instructed the receiver to verify creditors'
claims until October 1 this year.
The receiver will prepare the individual reports after the credit
verification process. These reports must be presented to the
court on November 12 this year. The court also requires the
receiver to have the general report ready by December 29.
CONTACT: Marcelo Edgardo Mirasso
Ave. Rivadavia 666
Buenos Aires
TELECOM ARGENTINA: US Investment Fund Buys 5% Stake
---------------------------------------------------
The Capital Group Cos. Inc., a U.S.-based investment fund, bought
a 5% stake in Argentine fixed-line company Telecom Argentina
Stet-France Telecom SA, Dow Jones reports.
Telecom Argentina, in a filing with the Buenos Aires stock
exchange late Tuesday, revealed that The Capital Group bought a
5% stake of Telecom's capital and votes via two of its
subsidiaries, Capital Research and Management Co. and Capital
Group International. These subsidiaries are also investment
funds, which manage investments for third parties, the filing
said.
The Capital Group's purchase of the stake comes while Telecom
Argentina is trying to restructure a massive debt burden and is
also battling with the consequences of an 18-month utility rate
freeze in Argentina.
But on the positive side, Telecom Argentina's shares, which have
plunged during Argentina's economic crisis of recent years, have
recovered over the past 12 months, lifting from around 80
centavos ($1=ARS2.935) a share last September to its close of
ARS3.31 on Tuesday.
In addition, Telecom Argentina announced a net income of ARS381
million in the second quarter, against a net loss of ARS897
million a year earlier.
TELEFONICA DE ARGENTINA: May Collapse Without Rates Hike
--------------------------------------------------------
Telefonica de Argentina SA's auditor, Deloitte & Touche LLP,
indicated that the country's biggest phone company needs to raise
tariffs or get new financing in order to avert a financial
meltdown, relates Bloomberg.
"There are substantial doubts" about the viability of Telefonica
de Argentina SA, said the auditor.
The auditor's comment adds more pressure on the Argentine
government to end a rate freeze, which brought ARS3.4 billion
(US$1.2 billion) in losses to Telefonica de Argentina.
The government has said it would only consider a price increase
after it reviews all contracts of Argentine utilities to
determine if companies met investment commitments. The government
set a December 2004 deadline for that process.
TODO SANO: Receiver Verifies Creditors' Claims
----------------------------------------------
Mr. Daniel Alfredo Erdocia, the court-appointed receiver for
Argentine food company Todo Sano S.A., will verify creditors'
claims until October 10 this year. The credit verification
process is done to establish the existence, nature and amount of
the Company's debt.
Argentine newspaper La Nacion recalls that the Company was
recently declared bankrupt by Buenos Aires' Court No. 5, which is
under Dr. Vasallo. Dr. Perez Casado, the city's Clerk No. 9 also
works on the case.
The bankruptcy came after the court approved a motion filed by
the Company's creditor, Mr. Samuel Turmanski. The Company's
failure to meet its financial obligations to Mr. Turmanski
prompted him to file the petition.
CONTACT: Todo Sano S.A.
Bargain 1053
Buenos Aires
Daniel Alfredo Erdocia
7th Floor
Paraguay 610
Buenos Aires
===========
B R A Z I L
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ELETROPAULO METROPOLITANA: AES Names Eduardo Jose Bernini CEO
-------------------------------------------------------------
The AES Corporation (NYSE: AES) announced Tuesday that Eduardo
Jose Bernini has been appointed Vice President of AES and Chief
Executive Officer of Eletropaulo, the electric distribution
company serving 4.6 million customers in Sao Paulo, Brazil. Mr.
Bernini's appointments are effective as of September 1, 2003.
Prior to joining AES and Eletropaulo, Mr. Bernini was Chief
Executive Officer of EDP Brasil S.A., the Brazilian electricity
holding company of Eletricidade de Portugal S.A. He is Vice-
President of the Brazilian Association for Infrastructure
Development and in 1995-1996 was Deputy Secretary of Energy of
the State of Sao Paulo.
"I am extremely pleased to welcome Eduardo to AES as Vice
President of our Brazilian businesses and as CEO of Eletropaulo,"
stated Joseph C. Brandt, Chief Operating Officer for Integrated
Utilities. "With over twenty years of public and private sector
experience in the electricity market, Eduardo is uniquely suited
to lead our businesses in Brazil. He brings well-honed regulatory
skills, a commitment to operational excellence and a reputation
for integrity to these significant and promising investments."
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: This news release may contain "forward-
looking statements" regarding The AES Corporation's business.
These statements are not historical facts, but statements that
involve risks and uncertainties. Actual results could differ
materially from those projected in these forward-looking
statements. For a discussion of such risks and uncertainties, see
"Risk Factors" in the Company's Annual Report on Form 10-K for
the most recently ended fiscal year.
AES is a leading global power company comprised of contract
generation, competitive supply, large utilities and growth
distribution businesses.
The company's generating assets include interests in 157
facilities totaling over 52 gigawatts of capacity, in 29
countries. AES's electricity distribution network sells 108,000
gigawatt hours per year to over 16 million end-use customers.
For more general information visit our web site at www.aes.com or
contact investor relations at investing@aes.com.
CONTACT: AES Corporation
Kenneth R. Woodcock, 703-522-1315
EMBRATEL: Wins Unibanco's Local Telephone Bid
---------------------------------------------
Unibanco chose Embratel to provide local telephone services to
many of its administrative units in Brazil, which will bring
about significant savings with telecommunications costs for the
Bank.
Embratel's local telephone service - VipLine - is designed for
the corporate market and offers competitive rates with
progressive discounts in accordance with the customer's profile.
VipLine edges are the following: identification of local calls
and their duration on the customer's phone bill, thus enabling a
closer control of all phone call expenses. Through this rating
system, calls are charged by conversation minutes rather than
pulses, as charged by the other carriers; as a consequence,
customers will pay for the use they effectively make of the
service.
Local market - Embratel entered the local telephone market with
the purpose of meeting the telephone needs of its corporate
customers, offering more competitive edges like the rating per
minute feature. "Customers gain more control and management of
their costs with local phone calls, and obtain the commercial
benefits arising from this type of rating " - pointed out Sergio
Coutinho, Embratel's Corporate Sales Director.
Embratel has entered into over 1,200 local service agreements.
VipLine is available in more than 1,400 localities in seventy
cities. Since its launch in 2002, its availability has increased
78%.
Embratel is the premium telecommunications provider in Brazil,
offering a wide range of telecommunication services, such as
advanced voice, high-speed data transmission, internet, data
communication by satellite and corporate networks. The company is
national leader in data and internet services, in a privileged
position to become the Latin American carrier with an all-
distance network. Embratel network has national coverage with
almost 17,500 miles of optic cables, representing around one
million miles of fiber optics.
CONTACT: EMBRATEL
Advertising, Press and Public Relations Department
Further information: (02121) 2121 7837 / 2121 6291
Fax: (02121) 2121 7791
Mid-West- Phone: (02161) 242-9058 / 2845 / 916-9188
Attention: Flavio Resende
E-mail: cmsocial@embratel.net.br
Embratel on the internet: www.embratel.com.br
VARIG: Hopes To Sign This Week Sure Deal To Merge With TAM
----------------------------------------------------------
Financially embattled Brazilian carrier Varig hopes to sign this
week an "irreversible" intention to merge with domestic rival
TAM, in order to avoid being grounded, Reuters reports, citing
Varig executive vice president for trade, Alberto Fajerman.
Once the deal is signed, the companies will have up to six months
to begin carrying out the merger itself.
According to Fajerman, BNDES (the state-owned National Economic
and Social Development Bank) already had a business plan worked
out for the new company and added that there would be talks with
creditors on Varig's debt.
"There will be talks with creditors, the state and private
entities to see if they are interested in taking part of the debt
and turning it into shares. That way we'll know how much BNDES
will have to invest," Fajerman said.
TAM would have more shares in the new company than Varig, but
neither would have more than 50%, Fajerman said, adding, the name
Varig would still be used for international flights.
===============
C O L O M B I A
===============
BANCAFE: 55% Stake To Go On Auction Block By Year-End
-----------------------------------------------------
The president of the Financial Institutions Security Fund
(FOGOFIN), Juan Pablo Cordoba, revealed Tuesday that 55% of state
bank BanCafe would be sold to an outside partner by end 2003.
According to Dow Jones Business News, the sale was mandated by
the International Monetary Fund in January as part of an
agreement to a US$1.2-billion standby loan to Colombia. The IMF
said that Colombia should sell at least half of BanCafe by year-
end.
Meanwhile, Cordoba revealed that FOGOFIN would begin to cut down
on the capital it has invested in BanCafe. The institution's
investment in the bank, which was founded to support coffee
growers but has since broadened its portfolio, totals COP250
million.
Cordoba added that he is hopeful that a "strategic investor,"
whether from inside or outside the country, would put up capital
worth 55% of the bank by year-end. Such a partner would have to
present its offer before Dec. 5.
On Dec. 10, shares in BanCafe will first be offered to its
employees and associates and then to the general public.
CONTACT: BANCAFE
Street 28 Not 13 To 15
Bogota District of Colombia
Phone: 5600999 EXT. 4338
E-mail: ma.pulido@bancafe.com.co
Fax: 336 76 77
Home Page: www.bancafe.com
Contact:
Pedro Nel Ospina Santamaria, Legal Representative
BAVARIA: To Sell Bonds As Part of Debt Refinancing
--------------------------------------------------
Bavaria SA, Colombia's biggest brewer, is seeking approval from
the Colombian stock exchange regulators to sell US$500 million of
bonds, reports Bloomberg.
The upcoming operation, deemed by regulators as the biggest
dollar-denominated bond offering ever by a Colombian company, is
part of Bavaria's plans to lower the cost of servicing US$1.9
billion of debt, according to President Ricardo Obregon.
Bavaria, which is majority owned by the Grupo Santo Domingo, said
it hasn't set a maturity or interest rate for the bonds, which it
plans to sell in the U.S. and Europe.
The brewer has US$642 million of debt maturing this year. Obregon
said the Company already has refinanced US$343 million of that
debt -- part of it with the Andean Development Bank.
=============
J A M A I C A
=============
KAISER ALUMINUM: Nears Sale of Jamaican Operations
--------------------------------------------------
Kaiser Aluminum Company is moving closer to selling its
facilities in Jamaica, where it has operated for more than half a
century now.
According to Gene Miller, Kaiser Aluminum's vice president for
the United States and Jamaica, six unnamed companies had
expressed interest in acquiring the assets. They will, by next
week, begin a six-week due diligence study of the companies
before making a firm offer to Kaiser, the executive said.
Houston-based Kaiser Aluminum filed for protection from creditors
in February 2002. At that time, the Company said its Jamaican
operations would not be affected by the Chapter 11 filing. But
just recently, Kaiser announced it was seeking a buyer for the
said operations.
Miller stressed the American company was not in the process of
liquidation, and was only selling those assets "that may not fit
into its going forward strategy".
Kaiser owns 65% of Alpart alumina refinery in Nain, St Elizabeth,
in which a Norwegian firm, Norsk Hydro is minority partner. It
also owns 49% of Kaiser Jamaica Bauxite Company in which the
Jamaican government has 51%. Kaiser manages the operation, which
largely exports raw bauxite to the Kaiser Gulf port alumina
refinery of Gramercy.
PIL: Chambers Begins Liquidation Process
----------------------------------------
Douglas Chambers, the appointed liquidator for Premium
Investments Limited (PIL), has kicked off the liquidation of the
Company owned by Opposition Leader Edward Seaga, reports
RadioJamaica.
Chambers has set an October 3 deadline for PIL's creditors to
submit their names and addresses along with particulars of their
debts or claims to his Kingston office. Creditors who can't make
it to the deadline will be excluded from any payout by the
liquidator, the report says.
Seaga placed PIL into voluntary liquidation this month to raise
funds to pay off tax liabilities of about $120 million and other
debts owed by Town and Country Resorts Limited (TCRL), another of
his companies, which managed Enchanted Garden.
According to Seaga, Premium Investments' estimated surplus after
paying its debts is in excess of $200 million.
===========
M E X I C O
===========
GRUPO TMM: Provides More Info About Judgment On TFM's VAT Claim
---------------------------------------------------------------
Grupo TMM, S.A. (NYSE:TMM)(BMV:TMM A; "TMM") announced that TFM
was formally notified by the Mexican Federal Tribunal of Fiscal
and Administrative Justice (the "Fiscal Court") of its resolution
regarding TFM's Value Added Tax (VAT) Lawsuit initiated by TFM in
1997 (valued at $2,111 million pesos as of December 1996). The
resolution is the result of the unanimous vote of the nine
magistrates present at the public session, and was issued in
compliance with the June 11, 2003, ruling (amparo) of the Court
of the First Circuit (the "Federal Court"). With this new
resolution, the Fiscal Court has resolved to vacate its previous
resolution of December 6, 2002, considering the "ficta denial"
(negativa ficta) claimed by TFM, and has also resolved that TFM
proved its claim. The Fiscal Court has ordered the issuance of
the VAT Certificate to TFM under the terms established by article
22 of the Mexican Fiscal Code in effect in 1997.
TFM is unable to predict when the certificate will be issued.
Moreover, although TFM does not believe that a third party claim
or legal action could be brought against TFM as a consequence of
the new resolution of the Fiscal Court, TFM believes it would
have sufficient legal defenses.
Grupo TMM and TFM appreciate and value the Fiscal Court's
resolution as it strengthens the rule of law in Mexico.
Headquartered in Mexico City, Grupo TMM is a Latin American
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.
CONTACT: Grupo TMM
Jacinto Marina, Chief Financial Officer
011-525-55-629-8790
(jacinto.marina@tmm.com.mx)
or
Brad Skinner, Senior Vice President
Investor Relations
011-525-55-629-8725 or 203-247-2420
(brad.skinner@tmm.com.mx)
or
Marco Provencio
Media Relations, Proa/StructurA
011-525-55-629-8708 and 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)
SINGER MEXICO: May File Request For Concurso Mercantil
------------------------------------------------------
Singer N.V. ("Singer" or the "Company") announced today its
results for the second quarter of 2003 and for the first six
months ended June 30, 2003.
2003 Second Quarter Results
The second quarter results were severely negatively impacted by
the economic, liquidity, operational and management problems that
developed in the Company's Mexican subsidiary during the second
half of 2002 and which intensified in the first quarter of 2003
and continued in the second quarter of 2003. Management expects
Singer Mexico to file a request for Concurso Mercantil, an
insolvency petition under the Mexican bankruptcy laws, during the
third quarter. Once the court accepts the insolvency petition, it
will appoint an insolvency specialist who will assess the
Company's financial situation. Management expects an ultimate
determination that Singer Mexico is insolvent and not the proper
subject for reorganization and that a liquidation proceeding be
commenced. Management expects no further Singer Mexico losses
will be recorded once the liquidation proceeding is commenced, or
Singer otherwise loses control of Singer Mexico and the operation
is no longer consolidated. At that time, approximately $4.6
million of the loss already recorded for Mexico will be reversed
reflecting the fact that the loss already recorded exceeds the
Company's investment and exposure in Mexico by that amount.
Singer has established a new company in Mexico to carry on the
profitable sewing business.
Excluding the loss in Mexico, Singer's results for the second
quarter of 2003 were improved over the results for the
corresponding quarter of 2002. The net income improvement was
primarily attributable to a $4.1 million gain due to an increase
in the estimated recovery on receivables from a former subsidiary
that is in liquidation. Highlights of the results, including and
excluding Mexico, are shown in the table below:
Three Months
(US$ millions) Ended June 30,
2003 2002
Increase/(Decrease)
Revenue:
Mexico $12.7 $30.9 $(18.2)
All other operating units 82.5 76.1 6.4
Consolidated total $95.2 $107.0 $(11.8)
Operating Income (Loss):
Mexico $(4.5) $2.8 $(7.3)
All other operating units 7.2 6.4 0.8
Consolidated total $2.7 $9.2 $(6.5)
Net Income (Loss):
Mexico $(6.3) $1.3 $(7.6)
All other operating units 7.7 3.4 4.3
Consolidated total $1.4 $4.7 $(3.3)
For the second quarter of 2003 ended June 30, 2003, the Company
reported consolidated revenues of $95.2 million as compared to
$107.0 million for the second quarter of 2002, a decline of $11.8
million or 11.0%. The decrease was due to the $18.2 million
decline in revenues in Mexico as illustrated in the table above.
Revenues of Singer's 48 percent-owned Thailand affiliate amounted
to $27.5 million for the 2003 quarter, a 14.6% increase over the
$24.0 million recorded in the second quarter of 2002; these sales
are not included in consolidated revenues. The Company's revenues
for the second quarter of 2003 included $6.7 million of finance
charges on consumer credit sales and $1.5 million of royalty and
licensing income; the corresponding amounts for the second
quarter of 2002 were $8.5 million and $1.3 million, respectively.
The decline in finance charges is due to the decrease in retail
sales in Mexico, with finance charges in Mexico declining by $2.3
million.
Gross profit for the three months ended June 30, 2003 was $36.4
million, representing a gross margin of 38.3%, as compared to
$41.7 million and a gross margin of 39.0% for the same period in
2002. The decline in gross margin was due primarily to a shift in
sales mix towards the Sewing marketing segment due the decline in
retail sales in Mexico, and lower margins in U.S. Sewing due to a
shift in sales mix between dealers and mass merchants.
Selling and administrative expenses for the three months ended
June 30, 2003 were $33.7 million, representing 35.4% of revenues,
as compared to $32.4 million and 30.3% of revenues for the same
period in 2002. The increase in selling and administrative
expenses was due to Mexico, which had a significantly higher
provision for bad debts. Excluding Mexico, selling and
administrative expenses as a percentage of revenue would have
been 27.6% for the 2003 second quarter as compared to 29.5% in
the 2002 second quarter. This improvement was due to a decrease
in Corporate expenses along with tighter controls over selling
and administrative expenses at operating units.
Operating income for the 2003 and 2002 quarters was $2.7 million
and $9.2 million, respectively. The Mexican operations were
responsible for the decline in operating income.
Interest expense for the three-month period ended June 30, 2003
was $5.9 million as compared to $5.3 million for the three months
ended June 30, 2002. The increase in interest expense from the
prior year's quarter was due to higher interest expenses incurred
in Mexico and the manufacturing operations.
Equity in earnings from Operating Affiliates totaled $1.7 million
during the three-month period ended June 30, 2003 as compared to
$1.1 million for the same period in 2002. The increase is due to
higher profitability from an Operating Affiliate in Sri Lanka.
Miscellaneous other income was $4.6 million in the three-month
period ended June 30, 2003 as compared to $1.6 million in 2002.
The $3.0 million increase in other income is primarily due to an
increase in the estimated recovery on receivables from a former
subsidiary that is in liquidation. This was partially offset by
$0.6 million unfavorable variance in foreign exchange.
Provision for income taxes amounted to $1.3 million in the three-
month period ended June 30, 2003, as compared to $1.6 million for
the same period in 2002. The high effective tax rate of 42.1% in
the 2003 second quarter as compared to the 24.5% effective tax
rate in the 2002 second quarter is due to the $6.3 million loss
incurred in the Mexican operations with no corresponding tax
benefit as Mexico already had significant loss carry forwards.
The Company's net income for the 2003 second quarter was $1.4
million as compared to net income of $4.7 million for the second
quarter of 2002. The $3.3 million decline from prior year is due
to the $7.6 million decline in Mexico's net income which was
offset by a $4.3 million net income improvement in all the other
business units.
Dividends on Preferred Shares equal to 4% per annum, calculated
on the shares' $20 million liquidation preference, amounted to
$0.2 million for the three-month periods ended June 30, 2003 and
2002. This dividend is cumulative and has been accrued but not
paid; no dividend may be paid on the Company's Common Shares
until all accrued dividends on the Preferred Shares have been
paid. An additional amount of $0.1 million for the three-month
period ended June 30, 2003 and 2002 has been accrued representing
the accretion in the value of the Preferred Shares. During the
first quarter, a subsidiary of the Company entered into an
agreement with the Pension Benefit Guaranty Corporation to
purchase all of the Preferred Shares of the Company for $3.8
million.
The net income applicable to Common Shares in the second quarter
of 2003 was $1.1 million resulting in a basic income per common
share of $0.14, as compared to net income to Common Shares of
$4.4 million and basic earnings per common share of $0.55 for the
prior year period.
The Retail operations (including Thailand) accounted for 60% of
Singer's revenues in the 2003 second quarter. These operations
had operating earnings, before corporate expenses and
eliminations, of $0.9 million. The Company's consolidated results
and the results for the Retail segment in the second quarter of
2003 were negatively impacted by poor performance in Mexico,
which was partially offset by strong contributions from the
Retail businesses in Thailand and Sri Lanka. The comparable
figures for the second quarter of 2002 were 65% of Singer's
revenue, and operating earnings of $8.2 million, before corporate
expenses and eliminations.
The Sewing business accounted for 40% of Singer's revenues in the
2003 second quarter and had operating earnings, before corporate
expenses and eliminations, of $5.8 million. The Sewing marketing
operations in the United States and Italy were major contributors
to this segment. The comparable figures for the second quarter of
2002 were 35% of Singer's revenue with operating earnings, before
corporate expenses and eliminations, of $5.7 million.
2003 Six Month Results
The first half results were severely negatively impacted by the
economic, liquidity, operational and management problems that
developed in the Company's Mexican subsidiary during the second
half of 2002 and which intensified in the first quarter of 2003
and continued in the second quarter of 2003. Management expects
Singer Mexico to file a request for Consurso Mercantil, an
insolvency petition under the Mexican bankruptcy laws, during the
third quarter. Once the Court accepts the insolvency petition, it
will appoint an insolvency specialist who will assess the
Company's financial situation. Management expects an ultimate
determination that Singer Mexico is insolvent and not the proper
subject for reorganization and that a liquidation proceeding be
commenced. Management expects no further Singer Mexico losses
will be recorded once the liquidation proceeding is commenced, or
Singer otherwise loses control of Singer Mexico and the operation
is no longer consolidated. At that time, approximately $4.6
million of the loss already recorded for Mexico will be reversed
reflecting the fact that the loss already recorded exceeds the
Company's investment and exposure in Mexico by that amount.
Singer has established a new company in Mexico to carry on the
profitable sewing business.
Excluding the loss in Mexico, Singer's results for the first half
of 2003 were improved over the results for the first half of
2002. The improvement in net income was primarily attributable to
a $4.1 million gain due to an increase in the estimated recovery
on receivables from a former subsidiary that is in liquidation,
and a $2.7 million gain realized by the U.S. Sewing operations as
a result of the successful refinancing of the operations' debt.
Highlights of the results, including and excluding Mexico, are
shown in the table below:
Six Months
(US$ millions) Ended June 30,
2003 2002
Increase/(Decrease)
Revenue:
Mexico $27.4 $58.5 $(31.1)
All other operating units 160.5 151.9 8.6
Consolidated total $187.9 $210.4 $(22.5)
Operating Income (Loss):
Mexico $(22.0) $3.6 $(25.6)
All other operating units 15.2 12.9 2.3
Consolidated total $(6.8) $16.5 $(23.3)
Net Income (Loss):
Mexico $(25.3) $1.8 $(27.1)
All other operating units 12.7 3.5 9.2
Consolidated total $(12.6) $5.3 $(17.9)
For the six months ended June 30, 2003, the Company reported
consolidated revenues of $187.9 million as compared to $210.4
million for the first half of 2002, a decline of $22.5 million or
10.7%. The decrease was due to the $31.1 million decline in
revenues in Mexico as illustrated in the table above. Revenue in
all other operating units increased 5.7% for the six months ended
June 30, 2003 compared to the corresponding six months in 2002.
Revenues of Singer's 48 percent-owned Thailand affiliate amounted
to $55.4 million for the 2003 first half, a 16.4% increase over
the $47.6 million recorded in the first half of 2002; these sales
are not included in consolidated revenues. The Company's revenues
for the first half of 2003 included $13.7 million of finance
charges on consumer credit sales and $2.9 million of royalty and
licensing income; the corresponding amounts for the first half of
2002 were $16.8 million and $2.9 million, respectively. The
decline in finance charges is due to the decrease in retail sales
in Mexico, with finance charges in Mexico declining by $4.2
million.
Gross profit for the six months ended June 30, 2003 was $69.1
million, representing a gross margin of 36.8%, as compared to
$80.6 million and a gross margin of 38.3% for the same period in
2002. The decline in gross margin was due primarily to lower
margins in the Mexico operations as a result of changes in the
sales mix and an increase in inventory reserves, which was
partially offset by improved margins in the Company's
manufacturing segment.
Selling and administrative expenses for the six months ended June
30, 2003 were $75.9 million, representing 40.4% of revenues, as
compared to $64.1 million and 30.5% of revenues for the same
period in 2002. The increase in selling and administrative
expenses was due to Mexico, which had selling and administrative
expenses of $31.1 million for the first half of 2003, as compared
to $20.2 million for the same period in 2002, reflecting
significantly higher provisions for bad debts and increased
advertising expense. Excluding Mexico, selling and administrative
expenses as a percentage of revenue would have been 27.9% for the
2003 first half as compared to 28.9% in the 2002 first half. This
improvement was due to a decrease in Corporate expenses along
with tighter controls over selling and administrative expenses at
the operating units.
Operating income (loss) for the 2003 and 2002 first half was
($6.8) million and $16.5 million, respectively. The Mexican
operations were responsible for the decline in operating income.
Interest expense for the six-month period ended June 30, 2003 was
$11.1 million as compared to $10.5 million for the six-month
period ended June 30, 2002. The increase in interest expense
incurred by the Operating Companies from the prior year's first
half was due to higher interest expenses incurred in Mexico.
Equity in earnings from Operating Affiliates totaled $2.6 million
during the six-month period ended June 30, 2003 as compared to
$1.7 million for the same period in 2002. The increase is due to
higher profitability from an Operating Affiliate in Sri Lanka.
Miscellaneous other income was $6.3 million in the six-month
period ended June 30, 2003 as compared to $1.4 million in 2002.
The $4.9 million increase in other income is primarily due to a
$4.1 million increase in the estimated recovery on receivables
from a former subsidiary that is in liquidation and a $2.7
million gain recognized by U.S. Sewing as a result of their
successful refinancing of their debt. This was partially offset
by $1.0 million unfavorable variance in foreign exchange and $1.0
million of other expenses incurred in first half 2003.
Provision for income taxes amounted to $2.6 million in the six-
month period ended June 30, 2003, as compared to $2.7 million for
the same period in 2002. The high income tax expense in the 2003
first half as compared to the pre-tax loss is due to the large
loss incurred in the Mexican operations with no corresponding tax
benefit as Mexico already had significant loss carry forwards.
The Company's net loss for the 2003 first half was $12.6 million
as compared to net income of $5.3 million for the first half of
2002. The $17.9 million decline from prior year is due to the
$27.1 million decline in Mexico's net income which was offset by
a $9.2 million net income improvement in all the other business
units.
Dividends on Preferred Shares equal to 4% per annum, calculated
on the shares' $20 million liquidation preference, amounted to
$0.4 million for the six-month periods ended June 30, 2003 and
2002. This dividend is cumulative and has been accrued but not
paid; no dividend may be paid on the Company's Common Shares
until all accrued dividends on the Preferred Shares have been
paid. An additional amount of $0.2 million for the six-month
period ended June 30, 2003 and 2002 has been accrued representing
the accretion in the value of the Preferred Shares. During the
first quarter, a subsidiary of the Company entered into an
agreement with the Pension Benefit Guaranty Corporation to
purchase all of the Preferred Shares of the Company for $3.8
million.
The net loss applicable to Common Shares for the first half of
2003 was $13.1 million resulting in a basic loss per common share
of $1.64, as compared to net income to Common Shares of $4.7
million and basic earnings per common share of $0.58 for the
prior year period.
The Retail operations (including Thailand) accounted for 61% of
Singer's revenues in the 2003 first half. These operations had an
operating loss, before corporate expenses and eliminations, of
$10.6 million. The Company's consolidated results and the results
for the Retail segment in the first half of 2003 were negatively
impacted by poor performance in Mexico, which was partially
offset by strong contributions from the Retail businesses in
Thailand and Sri Lanka. The comparable figures for the first half
of 2002 were 66% of Singer's revenue, and operating earnings of
$15.1 million, before corporate expenses and eliminations.
The Sewing business accounted for 39% of Singer's revenues in the
2003 first half and had operating earnings, before corporate
expenses and eliminations, of $11.5 million. The Sewing marketing
operations in the United States and Italy were major contributors
to this segment. The comparable figures for the first half of
2002 were 34% of Singer's revenue with operating earnings, before
corporate expenses and eliminations, of $10.0 million.
Profit Despite Mexico Loss
Mr. Stephen H. Goodman, Singer's Chairman, President and Chief
Executive Officer noted, "We are extremely disappointed by the
second quarter and first half year loss in Mexico. Losses will
continue to be incurred in Mexico until Singer is able to
deconsolidate that operation. At the time of deconsolidation,
approximately $4.6 million of the loss already recorded in Mexico
and any future loss incurred will be reversed, reflecting the
fact that the loss already recorded exceeds the Company's
investment and exposure in Mexico by that amount. For the full
year 2003, it is anticipated that the net Mexico loss will be
approximately $21.0 million."
"We are heartened, however, by the continued and increasing
profitability of the rest of Singer, especially the strong
revenue and earnings performance in Sri Lanka and Thailand and in
the Sewing segment generally. Consequently, despite the Mexico
loss, Singer was profitable in the second quarter of 2003 and
anticipates that it will be profitable for the full year 2003."
Share Distribution
On or about April 15, 2003, the Singer Creditor Trust made the
final distribution of the Common Shares of Singer N.V. to the
holders of allowed, general unsecured claims against Singer's
predecessor company.
It is not anticipated that the Company's Common Shares will be
listed on any U.S. or overseas securities exchange, the NASDAQ
National Market System, the NASDAQ Small Cap Market, the OTC
Bulletin Board or a similar trading system in the near future.
Price quotations for the Company's Common Shares became available
on the "Pink Sheets" quotation service under the symbol "SNGR" in
March 2002. It is anticipated that brokers should be able to
continue to trade Singer's Common Shares using the "Pink Sheets"
quotation service as long as the Company is current in submitting
to the Securities and Exchange Commission ("SEC") the materials
that it makes available to its shareholders or is required to
file under its own country jurisdiction. If the Common Shares
cease to be traded, shareholders seeking to sell or buy shares
will only be able to do so with considerable difficulty and at
prices that may not reflect the shares' theoretical inherent
value. Even to the extent that quotations on the "Pink Sheets"
service continue, there is no assurance that there will be
adequate liquidity or that there will not be wide swings in
prices and significant differences between "bid" and "asked"
prices, which will make trading difficult and could cause prices
for the Company's shares to deviate substantially from their
theoretical inherent value.
About Singer N.V.
Singer N.V. was incorporated under the laws of the Netherlands
Antilles on December 21, 1999. Effective September 2000, as a
result of a successful Chapter 11 reorganization, Singer became
the parent company of several Operating Companies formerly owned
by The Singer Company N.V. ("Old Singer"), as well as acquiring
ownership of the SINGERr brand name, one of the most widely
recognized and respected trademarks in the world. Through its
operating companies, Singer is engaged in two principal
businesses, Retail and Sewing.
The Retail business consists primarily of the distribution
through company-owned retail stores and direct selling of a wide
variety of consumer durable products for the home in selected
emerging markets, primarily in Asia, Mexico and the Caribbean.
Retail sales activities in these markets are strengthened by the
offer of consumer credit services provided by the Company to its
customers. In some of the markets where it operates, Singer is
recognized as a leading retailer of products for the home.
The Sewing business consists primarily of the distribution of
consumer and artisan sewing machines and accessories, produced by
Singer and certain third-party manufacturers, through
distribution channels operated by its Sewing Operating Companies
and through third-party distributors and dealers, as well as
through the Operating Companies which operate Singer's Retail
business. Singer is one of the world's leading sellers of
consumer and artisan sewing machines, with an estimated worldwide
unit market share of 26% (excluding China, the former Soviet
Republics and Eastern European countries).
Additional financial and other information about the Company,
including: a copy of Singer's audited consolidated financial
statements for the twelve months ending December 31, 2002 and
2001 and for the three months ending December 31, 2000, together
with the Auditor's Report thereon; the 2002 Disclosure Statement
and Report dated April 2003, and the prior Disclosure Statements
and Reports dated May 2002 and September 2001; and copies of all
quarterly reports and press releases since the conclusion of the
Chapter 11 proceedings in September 2000 may be found at the
investor section of the Company's financial website
www.singer.com.
Statements made herein with respect to Singer's current plans,
estimates, strategies and beliefs and other statements that are
not historical facts are forward-looking statements about the
future performance of the Company. Forward-looking statements
include but are not limited to those using words such as believe,
expect, anticipate, plans, strategy, prospects, forecast,
estimate, project, may or might, and words of similar meaning in
connection with a discussion of future operations, financial
performance, financial position, capital resources and strategy
and plans and objectives of management. From time to time, oral
or written forward-looking statements may also be included in
other materials released to the public. These statements are
based on management's assumptions and beliefs, which are
expressed in light of the information currently available to
management. The ultimate outcome in many cases is outside of the
Company's control. The Company cautions you that no assurance can
be given that expectations reflected in such forward-looking
statements will prove to have been correct, that a number of
important risks and uncertainties could cause actual results to
differ materially from those discussed in the forward-looking
statements, and therefore, you should not place undue reliance on
such forward-looking statements. You should not rely on any
obligation of the Company to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. The Company disclaims any such obligation. Risks
and uncertainties that might affect the Company include, but are
not limited to: general economic conditions in the Company's
markets worldwide, particularly in Asia, Brazil, the United
States and the Caribbean, including levels of consumer spending;
exchange rates, particularly between the U.S. dollar and other
currencies in which the Company makes significant sales or in
which the Company's assets and liabilities are denominated; the
Company's ability to continue to win acceptance of its products
and services, which are offered in highly competitive markets;
the Company's ability to implement successfully the ongoing
restructuring of its businesses; the success of the Company in
improving liquidity and obtaining access to capital resources,
including compliance with required financial and other covenants
under its secured credit facilities; improving efficiency in its
manufacturing and marketing operations; continuing relationships
with financial institutions, suppliers and other creditors; and
the outcome of contingencies.
To see parent company's financial statements:
http://bankrupt.com/misc/SINGER.htm
=============
U R U G U A Y
=============
UTE: Gets Court's Okay To Tender Thermo Plant Contract
------------------------------------------------------
Uruguayan state-owned power company UTE gained the approval of
the government accounts court on its plan to tender a contract to
build a 370MW thermoelectric power plant. The court warned that
the contract could not be changed at all once the winner was
selected, according to a report released by Business News
Americas.
UTE has been in discussions over the plan with six engineering
firms: US-based GE, Germany's Siemens, Japan's Mitsubishi and
Mitsui, Italy's Fiat Engineering and France's Alstom. The report
says that UTE plans to invite these companies to participate in
the bidding.
UTE expects the total cost to be around US$150 million. President
Jorge Batlle recently published a decree authorizing UTE to tag
the cost on to consumer bills for 15 years, reports Business News
Americas.
=================
V E N E Z U E L A
=================
PDVSA: Oil Chamber Exec. Asks To Halt Retaliation
-------------------------------------------------
Jose Antonio Perez, oil chamber executive and president of oil
services company Energy Dynamics, claims that the new managers at
Venezuela's state oil company PDVSA are getting back at private
companies allegedly involved in the national oil strike at the
end of last year.
In an interview with Business News Americas, Perez said that the
PDVSA managers are denying these companies new contracts and
refusing to extend their existing ones. The Company has even
denied its own unit, Energy Dynamics de Venezuela, contracts in
recent weeks, Perez said.
"Nobody says it's true, but it's happening and it's damaging the
national private sector, which has been trying to develop the oil
industry in parallel with PDVSA," said Perez, who is president of
the oil chamber's Anzoategui state chapter.
Perez is calling PDVSA to stop retaliation immediately if it
wants to be successful in its plans to attract private investment
in the oil industry.
SIDOR: Most of Last Year's Purchases Came From Domestic Market
--------------------------------------------------------------
Venezuelan steelmaker Sidor purchased most of its goods and
services requirements last year from the domestic market as part
of its buy national policy, which coincides with the government
campaign - Buy Venezuelan.
Citing an unnamed company spokesperson, Business News Americas
reports that the Company made domestic purchases last year worth
more than VEB700 billion (about US$438mn at current exchange
rates).
"Some 79% of purchases in value terms were acquired within the
country," the spokesperson said.
Meanwhile, the report reveals that Sidor is to invest US$300
million in a technological update, environmental concerns, and
improvements in processes to take production to 4Mt/y from its
present 3.5Mt/y.
Following a restructuring completed in June this year, 59.7% of
Sidor belongs to the Amazonia consortium, made up of Mexico's
Hylsamex of the Alfa group and Tamsa of the Techint group;
Argentina's Siderar, also of Techint; Brazil's Usiminas and
Venezuela's Sivensa. The other 40.3% belongs to the Venezuelan
state.
CONTACT: SIDERURGICA DEL ORINOCO, C.A. (SIDOR)
Edificio General, Piso 9
Avda. La Estancia
Chuao, Caracas 1060
Venezuela
Tel: (582) 902 3800/3917/3955
Fax: (582) 993 2930
Home Page: www.sidor.com.ve/
***********
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
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