/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/030912.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, September 12, 2003, Vol. 4, Issue 181 Headlines A R G E N T I N A ALCOMAR: Court Authorizes Reorganization Process COMERCIAL ZOMA: Court Approves Motion For "Concurso Preventivo" FLORIDA UNO: Moves Court "Concurso Preventivo" Status FOTOGRAFIA APLICADA: Receiver Closes Verification Process INTERCLINICAS: Court OK's Petition For Reorganization JARDIN DE INFANTES: Undertakes Reorganization Process LA EUSKARA: Claims Validation Deadline Expires MILAN MOBILI: Proof of Claims Period Ends PUNTO ARTE: Seeks Court Authorization For Reorganization REPSOL YPF: Deutsche Bank Raises Recommendation REPSOL YPF: Shares Down Over Argentina Rates Concerns SIRESA: Court OK's Reorganization Petition TELECOM ARGENTINA: Details France Telecom's Transaction TRANSPORTADORA PATAGONICA: Court Approves Concurso Motion TRANSPORTES VAZQUEZ: Creditor Request For Bankruptcy Approved *IMF Executive Positive on Argentina's Medium-term Program B E R M U D A COMMERCIAL RISK: A.M. Best Downgrades Parent Company Ratings GLOBAL CROSSING: Pressing XO Communications, Carl Ichan for Info GLOBAL CROSSING: Telemedia's Approval Likely This Week B R A Z I L AES CORP.: Two Legal Issues Remain Before Closing BNDES Deal AES CORP.: Bernini's Appointment Catalyst for BNDES Agreement AHOLD: Justice Ministry's Proposal May Lower Price of Assets AHOLD: Rising Losses May Lower Price For Bompreco C O L O M B I A BANCAFE: IFC May Take Up Stake Pending Board Approval PAZ DEL RIO: Appoints New Directors D O M I N I C A N R E P U B L I C UNION FENOSA: Sets Condition For DR Exit E L S A L V A D O R CTE SALVADOR: S&P Affirms AMX's Ratings J A M A I C A KAISER ALUMINUM: Swiss Group In Due Diligence on Jamaican Ops M E X I C O DESC: Intends To Sell Adhesives, Waterproofing Businesses VITRO: Sells Envases Cuautitlan to Shore Up Liquidity P E R U SIMSA: Schedules General Meeting For September 12 P U E R T O R I C O DORAL FINANCIAL: Addresses Investor Concerns - - - - - - - - - - ================= A R G E N T I N A ================= ALCOMAR: Court Authorizes Reorganization Process ------------------------------------------------ Mendoza Court No. 2 issued an order officially commencing the reorganization of local company Alcomar S.R.L.. A report by Argentine news portal Infobae relates that the court has approved the Company's motion for "Concurso Preventivo". Local accountant Flavio Amantovan was assigned as the Company's receiver. He is to verify creditors' claims until October 31 this year. After that, he is required to prepare the individual reports and present these to the court on December 3. A general report must also be ready by April 23 next year. The report adds that the Civil and Commercial Tribunal of Mendoza has set August 18 next year as the date for the informative assembly. CONTACT: Flavio Amantovan Lemos 679 Mendoza COMERCIAL ZOMA: Court Approves Motion For "Concurso Preventivo" --------------------------------------------------------------- Court No. 22 of Buenos Aires approved a petition to undergo reorganization filed by local company Comercial Zoma S.A., reports Infobae. The source said that Ms. Ana Maria Calzada Percivale was assigned as the Company's receiver. Creditors must present their proofs of claim to the Mr. Percivale for verification before October 22 this year. The court also ordered the receiver to prepare individual reports after the verification process is completed. These reports must be filed at the court on December 4 this year, followed a by a general report on February 10, 2004. An informative assembly will be held on April 7 next year, the report reveals without indicating the time and venue of the said meeting. CONTACT: Ana Maria Calzada Percivale Ave. San Martin 2805 Buenos Aires FLORIDA UNO: Moves Court "Concurso Preventivo" Status ----------------------------------------------------- Florida Uno S.A., which is domiciled in Buenos Aires, seeks court permission to undergo reorganization. According to a report by Argentine news portal Infobae, the Company has submitted its motion for "Concurso Preventivo" to the city's Court No. 4. CONTACT: Florida Uno S.A. Florida 1 Buenos Aires FOTOGRAFIA APLICADA: Receiver Closes Verification Process --------------------------------------------------------- Mr. Rodolfo Crespi, the receiver for Fotografia Aplicada S.A., closed the verification process for the Company's reorganization today. As ordered by the court, the receiver will now prepare the individual reports, which must be presented to the court on October 23 this year. The Civil and Commercial Tribunal of San Isidro, which handles the Company's case, instructed the receiver to prepare a general report and pass it on December 5. CONTACT: Fotografia Aplicada S.A. Hipolito Yrigoyen 3926 Vicente Lopez, San Isidro Rodolfo Crespi Rivadavia 91 San Isidro INTERCLINICAS: Court OK's Petition For Reorganization ----------------------------------------------------- Court No. 6 of Buenos Aires, approves Interclinicas S.A.'s petition for "Concurso Preventivo", relates local news source Infobae. The city's Clerk No 17 assists the court on the case. Mr. Silvio Gustavo Gorbacz is assigned as the Company's receiver, the report adds. Creditors must present their claims to the receiver for verification before October 17 this year. After the verification process, the receiver is required to prepare the individual reports and have them presented to the court on November 11, followed by the general report on February 23 next year. The report adds that the court has set the informative assembly to take place on August 3 next year. The time and venue of the meeting is yet to be announced. CONTACT: Interclinicas S.A. Ave. Cordoba 456 Buenos Aires Silvio Gustavo Borbacz Tucuman 1484 Buenos Aires JARDIN DE INFANTES: Undertakes Reorganization Process ------------------------------------------------------ Buenos Aires-based Company Jardin de Infates y Escuela de La Aldea S.R.L. undergoes reorganization after the city's Court No. 11 approved its motion for "Concurso Preventivo". Local news source Infobae reports that the court assigned Mr. Jose Luis Abuchdid as the Company's receiver. He is instructed to verify creditors' claims until November 6 this year. However, the source did not indicate whether the court has set the deadlines for the individual and general reports. These reports are to be prepared upon completion of the credit verification process. CONTACT: Jardin de Infates y Escuela de La Aldea S.R.L. Cramer 2547 Buenos Aires Jose Luis Abuchdid Tacuari 119 Buenos Aires LA EUSKARA: Claims Validation Deadline Expires ---------------------------------------------- Today, September 12, is the deadline for the verification of creditors' claims regarding the bankruptcy of local company La Euskaria S.A.. The receiver, Mr. Miguel Telese, will now prepare the individual reports, which must be presented to the court on October 28. The receiver is also required to prepare a general report on the process and present it to the court on December 11, according to an earlier report by the Troubled Company Reporter - Latin America. The Civil and Commercial Tribunal of Dolores declared the Company bankrupt earlier this year. Local news portal Infobae relates that the province's Court No. 2 handles the Company's case. CONTACT: La Euskaria S.A. Muniz 539 Dolores Miguel Telese Buenos Aires 595 Dolores MILAN MOBILI: Proof of Claims Period Ends ----------------------------------------- The credit verification process for the bankruptcy of Buenos Aires-based company Milan Mobili S.R.L. ends today, September 12, 2003. The receiver, Mr. Nestor Monti will now proceed with preparations for the individual reports. An earlier report by the Troubled Company Reporter - Latin America indicated that Court No. 4 of Buenos Aires, which is under Dr. Ottolenghi, ordered the Company' bankruptcy. The decision came after Cuyo Placas S.A., to whom the furniture company owes some US$37,924, moved the Court to initiate the Company's bankruptcy. However, local sources did not mention whether the court has set the deadlines for the individual and general reports. CONTACT: Milan Mobili S.R.L. Timoteo Gordillo 4079 Buenos Aires PUNTO ARTE: Seeks Court Authorization For Reorganization -------------------------------------------------------- Punto Arte y Reproducciones S.A. applied for "Concurso Preventivo" at Buenos Aires' Court No. 18, relates local news source Infobae. The petition was filed voluntarily, according to the report, without revealing whether the motion is likely to merit the court's approval. REPSOL YPF: Deutsche Bank Raises Recommendation ----------------------------------------------- The investment bank Deutsche bank has issued a report upgrading its recommendation on Repsol YPF from "hold" to "buy" and raising the target price to EUR17.5 per share up from the previous EUR13.5. According to the firm, this upgrade is justified by the good financial results obtained by the Company, its capacity for generating free cash-flows, the 11% increase in production this year, the positive performance of the refining and marketing area, and the upturn in the Argentinean economy. The report also highlights the sharp drop in the Company's debt level, the improvement in its credit rating, and the Company's prudent investment approach. Deutsche Bank mentions the exploration projects currently under way as one of the direct causes of this improvement and highlights the significance of the Trinidad and Tobago project, directly mentioning the recent agreement entered into by Repsol YPF and Statoil for supplying liquid natural gas to the eastern part of the United States. This report also refers to the production potential of the Repsol YPF exploratory assets in Libya. REPSOL YPF: Shares Down Over Argentina Rates Concerns ----------------------------------------------------- Madrid-based energy company Repsol YPF SA, which produces three- quarters of its oil and two-thirds of its natural gas in Argentina, saw its shares tumble for a second day Wednesday. The continued decline, according to Bloomberg, came amid apprehensions that the Argentine government won't allow utilities to raise the rates they charge customers. Repsol shares have dropped 4.2% in the past two days. A week ago they reached the highest price since Argentina let its currency float in January 2002. On Tuesday, Argentina missed a US$2.9-billion payment to the International Monetary Fund, indicating it probably won't agree to demands by the IMF that include allowing utilities to raise rates that have been frozen for 20 months. The country is renegotiating terms for the almost $15 billion it owes the IMF. "This is bad news for the Spanish companies based there, and the one with more assets in the country is Repsol," said Ramon Carrasco, who helps oversee the equivalent of about $3 billion at Beta Capital MeesPierson. SIRESA: Court OK's Reorganization Petition ------------------------------------------ Siresa S.A., which is domiciled in Buenos Aires, begins its reorganization. Local news portal Infobae reports that the city's Court No. 25 approved the Company's motion for "Concurso Preventivo". The court assigned Ms. Lidia Diaz as the Company's receiver for the process. Creditors are required to present their claims for verification before the October 8 deadline expires. The receiver is also instructed to prepare the individual and general reports, which must be presented to the court on November 19, 2003 and February 3, 2004, respectively. An informative audience will be held on July 12 next year, the report adds. CONTACT: Siresa S.A. Juncal 802 Buenos Aires Lidia Dias Independencia 2031 Buenos Aires TELECOM ARGENTINA: Details France Telecom's Transaction ------------------------------------------------------- Telecom Argentina STET-France Telecom S.A. (TECO, D/--/--), one of the two Argentine telephone incumbent operators, has announced that one of its shareholders, France Telecom S.A. (BBB/Positive/A-2), has agreed to sell its indirect participation TECO to W de Argentina Inversiones. Together, France Telecom and Telecom Italia SpA have approximately 68% and 51% of the voting and economic rights in Nortel Inversora S.A., a holding company that has 54.7% participation in TECO shares. The transaction, which amounted to $125 million, includes the sale of the 48% stake in Nortel and a call option on the remaining 2%, to be exercised between Jan. 31, 2008, and Dec. 31, 2013. This sale is part of France Telecom's noncore assets divestiture strategy to reduce current debt levels. As of June 2003, the book value of TECO's net worth amounted to $752 million. The company's financial debt and cash position were $3,176 million and $485 million, respectively. TECO and its financial advisor are currently developing a proposal to restructure the financial debt. Standard & Poor's Ratings Services will reassess TECO's credit quality once the restructuring process is completed. ANALYSTS: Ivana Recalde, Buenos Aires (54) 114-891-2127 Marta Castelli, Buenos Aires (54) 114-891-2128 TRANSPORTADORA PATAGONICA: Court Approves Concurso Motion --------------------------------------------------------- The Civil and Commericial Tribunal of Trelew, Chubut approved the motion for "Concurso Preventivo" filed by local company, Transportadora Patagonica S.A., reports Infobae. According to the source, the province's Court No. 1 is assisted by Clerk No. 2 on this case. Mr. Daniel Julio was appointed as receiver for the process. Creditors must present their claims to the receiver before October 7. However, the source did not mention whether the court has set the deadlines for the individual ans general reports. CONTACT: Transportadora Patagonica S.A. La Rioja 287 Trelew, Chubut Daniel Julio Belgrano 581 Trelew, Chubut TRANSPORTES VAZQUEZ: Creditor Request For Bankruptcy Approved ------------------------------------------------------------- A request for the bankruptcy of Argentine cargo company Transportes Vazquez S.A., attained court approval, relates local newspaper, La Nacion. According to the source, Mr. Omar ALberto Batista filed the petition due to the Company's failure to meet its obligations on some $50,248 of debt. Dr. Gonzales, insolvency judge for Court NO. 8 of Buenos Aires handles the Company's case, with assistance from Clerk No. 15, Dr. Lezaeta. The court assigned Mr. Alberto Francisco Romeo as the Company's receiver. Creditors are required to have their claims verified by December 19 this year. CONTACT: Transportes Vazquez 6th Floor Room B Piedras 1077 Buenos Aires *IMF Executive Positive on Argentina's Medium-term Program ---------------------------------------------------------- Mr. Horst K�hler, Managing Director of the International Monetary Fund (IMF) made the following announcement on Wednesday: "I am pleased to welcome President Kirchner's announcement of Argentina's economic program that aims at restoring strong economic growth and reducing poverty. President Kirchner has assured me of his full backing of the program and its implementation. I assured him the Fund would work hard to help Argentina achieve its aspirations. "The authorities have prepared a letter of intent setting forth their program and have requested a new arrangement with the Fund. The arrangement, of about US$12.5 billion, is to be disbursed over 3 years, in accordance with the IMF's usual procedures. Taking into account Argentina's scheduled repayments to the IMF over this period, the IMF's net exposure to Argentina at the end of the program will be unchanged. "Once Argentina's arrears to the Fund are cleared, I plan to recommend to the IMF Executive Board the approval of this arrangement. The authorities' letter of intent has been signed in Buenos Aires and will be sent to the IMF Executive Board shortly, for a Board meeting at the end of next week. "Argentina's economic program has three fundamental elements: "First, a medium-term fiscal framework to meet growth, employment, and social equity objectives, while providing a sound basis for normalizing relations with all creditors and ensuring debt sustainability. "Second, a strategy to assure the strength of the banking system and facilitate the increase in bank lending that is essential to support the recovery. "Third, institutional reforms to ease corporate debt restructuring, address issues of the utility companies, and fundamentally improve the investment climate. "These and other reforms in the authorities' program are carefully sequenced for elaboration and implementation over the next three years, and it goes without saying that the success of the program will depend upon the consistency and rigor with which it is implemented." CONTACT: IMF EXTERNAL RELATIONS DEPARTMENT Public Affairs Phone: 202-623-7300 Fax: 202-623-6278 Media Relations Phone: 202-623-7100 Fax: 202-623-6772 ============= B E R M U D A ============= COMMERCIAL RISK: A.M. Best Downgrades Parent Company Ratings ------------------------------------------------------------ A.M. Best Co. has downgraded the financial strength rating to B++ (Very Good) from A- (Excellent) of SCOR (Paris, France) and its guaranteed subsidiaries. At the same time, A.M. Best has downgraded the ratings on debt instruments issued or guaranteed by SCOR. (See below for a full list of rated companies and debt ratings.) All ratings have been placed under review with developing implications. A.M. Best anticipates being able to resolve the under review status of the rating by the end of the year. The rating action follows deterioration in SCOR's risk-adjusted capitalization as a result of slower than anticipated improvement in performance despite the positive action taken to curtail underwriting in certain areas. Successful completion of SCOR's plans to make capital in a new life subsidiary available to investors and to sell Commercial Risks Partners Limited, Bermuda (CRP) are highly likely to result in enhancement of SCOR's consolidated risk-adjusted capitalization. The company's performance in the first half of 2003 has continued to be affected by adverse development in its reserves for business written prior to 2001 by SCOR Reinsurance Company in the United States and losses arising in its credit derivatives portfolio and from CRP. A.M. Best believes that these factors may continue to depress SCOR's future performance. SCOR's rating continues to be underpinned by its excellent business profile and diversified reinsurance account. Expectation: -- Successful enhancement of SCOR's capitalization as a result of completion of its plans for a new life subsidiary, the possible sale of CRP or other contingency plans will lead A.M. Best to assess the potential for an upgrade. The ratings of the following companies have been downgraded to B++ (Very Good) from A- (Excellent) and placed under review with developing implications: -- SCOR -- SCOR Canada Reinsurance Company -- SCOR Deutschland Rueckversicherungs AG -- SCOR Italia Riassicurazioni S.p.A -- SCOR Reinsurance Asia-Pacific Pte Ltd -- SCOR Reinsurance Company(1) -- SCOR UK Company Ltd -- General Security Indemnity Company -- General Security Indemnity Company of Arizona -- General Security National Insurance Company -- SCOR Life U.S. Re Insurance Company -- SCOR Life Insurance Company -- Investors Insurance Corporation (1) SCOR Reinsurance Company is a U.S. trading company. The following debt ratings have been downgraded to "BBB" from "A- " and placed under review with developing implications: -- five-year convertible bonds -- senior unsecured EUR medium term note program The following debt ratings have been downgraded to "BBB-" from "BBB" and placed under review with developing implications: -- EUR 100 million cumulative subordinated notes, due 2020 -- USD 100 million subordinated step-up notes, due 2029 -- EUR 50 million subordinated perpetual step-up notes issued by Societe d'Etudes et de Placements Financiers and guaranteed by SCOR The following commercial paper rating has been affirmed and placed under review with developing implications: -- AMB-2 rating on EUR commercial paper program A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. GLOBAL CROSSING: Pressing XO Communications, Carl Ichan for Info ---------------------------------------------------------------- The Global Crossing Debtors seek the Court's authority, pursuant to Rule 2004 of the Federal Rules of Bankruptcy Procedure, to direct XO Communications Inc., Carl Icahn and any Icahn-related companies to produce certain documents related to: (i) the Purchase Agreement between the Debtors, Singapore Technologies Telemedia Pte Ltd. and Hutchison Telecommunications; and (ii) the employment of Carl Grivner, a former officer of Global Crossing, now employed by XO. Paul M. Basta, Esq., at Weil Gotshal and Manges, LLP, in New York, recalls that on August 9, 2002, the Court approved the Purchase Agreement. However, on April 30, 2003, Hutchison terminated its rights and obligations under the Purchase Agreement and ST Telemedia assumed Hutchison's rights and obligations thereunder. Mr. Basta explains that the transactions contemplated under the Purchase Agreement form the cornerstone of the Debtors' Plan of Reorganization. However, before the transactions are consummated, the Debtors must receive approval from certain federal, state and local regulatory agencies, including the Federal Communications Commission and the Committee on Foreign Investment in the United State. The Debtors are currently working toward obtaining these regulatory approvals. XO and the chairman of its board of directors, Mr. Icahn, are intent on gaining control of Global Crossing. In numerous press releases and public statements throughout June 2003, XO and Mr. Icahn made various expressions of interest to the Debtors for control of Global Crossing. XO and Mr. Icahn also made certain proposals to the Debtors' prepetition lenders to purchase their debt, which ultimately culminated in XO's tender offer in June 24, 2003. On information and belief, approximately $500,000,000 of debt has been tendered to XO to date pursuant to the Tender Offer. In total, XO holds approximately $790,000,000 of Global Crossing's debt. In an attempt to derail the Debtors' Purchase Agreement with ST Telemedia, XO objected to the Debtors' request to (i) amendthe Purchase Agreement, (ii) grant certain releases to Hutchison, and (iii) extend the exclusive periods during which the Debtors may propose a plan of reorganization and solicit acceptances thereto. In connection with the trial with respect to the amendment to the Purchase Agreement, Mr. Basta contends, it became apparent that XO and Mr. Icahn interfered with the regulatory approval process. Bankruptcy Rule 2004 provides that on the motion of any party-in- interest, the Court may order the examination of any entity. Hence, Mr. Basta argues that good cause is present for the Debtors ask XO and Mr. Icahn to produce the documents because: (a) XO's attempt to derail the Purchase Agreement is a grave "matter that may seriously affect the administration of the Debtors' estate" with the two letters XO sent to the FCC, requesting it to delay its review of the transactions made under the Purchase Agreement. (b) The examination could reveal additional information regarding XO's and Mr. Icahn's attempts to derail the Purchase Agreement to the detriment of the Debtors' creditors and estates; (c) The examination will enable the Debtors to determine the rights and remedies available to them, including whether grounds exist for the equitable subordination of XO's claims; and (d) The Debtors have an agreement with Mr. Grivner wherein he may not disclose confidential, non-public information about Global Crossing. The Employment Agreement also prohibits Mr. Grivner from inducing other employees of Global Crossing to leave Global Crossing or solicit any of Global Crossing's customers on behalf of a competitor within one year from his departure from Global Crossing. The Debtors wish to investigate whether there have been communications between Mr. Grivner and XO or Mr. Icahn in violation of the Employment Agreement. (Global Crossing Bankruptcy News, Issue No. 46; Bankruptcy Creditors' Service, Inc., 609/392-0900) GLOBAL CROSSING: Telemedia's Approval Likely This Week ------------------------------------------------------ Singapore Technologies Telemedia is likely to get the much- awaited final approval from US President George W. Bush this week on its US$250-million bid to buy a controlling stake in bankrupt American telecom carrier Global Crossing Ltd., according to people familiar with the deal. The anticipated White House endorsement will signal the end of the fiber-optic carrier's 20-month-long campaign to secure government backing for the Singaporean conglomerate's plan. The deal has been delayed amid strong apprehension over the impact of local telecommunications access for foreign firms on national security. Global Crossing owns and operates the largest high-speed fiber cable network in the U.S. and it transmits some military information on its network. Those concerns appear to have been put to rest, in part because of the security concessions that ST Telemedia and Global Crossing offered to the Committee on Foreign Investment in the US (CFIUS). The president has until to September 19 to decide on the deal. =========== B R A Z I L =========== AES CORP.: Two Legal Issues Remain Before Closing BNDES Deal ------------------------------------------------------------ AES Corp. announced Monday that it has entered into a memorandum of understanding with Brazil's development bank BNDES to restructure the outstanding loans owed to BNDES by several of AES' Brazilian subsidiaries. But before this agreement can be finalized, the U.S. power group must resolve two legal issues, Dow Jones suggests. BNDES executives said AES must guarantee that its unit AES Tiete will be part of the recently announced preliminary debt- rescheduling deal. AES Tiete was given as collateral in a US$300- million bond deal in the U.S., and BNDES executives are concerned there may be problems with ownership issues about Tiete in the future. "AES must guarantee AES Tiete will be part of our deal," said Roberto Timotheo da Costa, BNDES's finance director. "We don't want AES bondholders claiming they own Tiete in the future," the executive added. The second issue is that the U.S. power group must resolve a local legal issue involving its Brazilian assets, Costa said. Through the Company's bankruptcy administrator, creditors of broadband services provider Eletronet SA filed in late May for the seizure of AES-owned shares in AES Tiete, Eletropaulo Metropolitana and Companhia Energetica de Minas Gerais (Cemig), in which AES holds a minority stake, Dow Jones recalls. AES hoped they would get some of its cash after Eletronet filed for bankruptcy. AES controls Eletronet, which defaulted on several payments earlier this year, leading the company to bankruptcy. At the time, the decision by a Rio de Janeiro state court judge granted the seizure of about BRL550 million ($1=BRL2.89) in common and preferred stocks in the companies to make up for the same amount of Eletronet's debt. In late April, federal electricity holding Centrais Eletricas Brasileiras (Eletrobras) initiated bankruptcy proceedings in Eletronet. Eletrobras, the other shareholder in Eletronet, expelled AES from the broadband services provider's board. AES wasn't free of Eletronet's financial obligations, however. The U.S. power group is being held legally responsible for BRL550 million in debt Eletronet owes to its creditors. As AES refused to pay Eletronet's debts, Eletronet's creditors decided to take legal action through bankruptcy administrator Isaac Zveiter, says Dow Jones. CONTACT: AES Kenneth R. Woodcock Phone: 703-522-1315 AES CORP.: Bernini's Appointment Catalyst for BNDES Agreement ------------------------------------------------------------- AES Corp.'s decision to name Eduardo Jose Bernini, a former Brazilian regulator, to run its operations in Brazil, helped persuade BNDES to reschedule US$1.2 billion of debt, Bloomberg reports, citing company executives said. "His appointment was recognized as a signal that we had someone to run the company who knew the market cold, and had important contacts," said Joseph Brandt, who led Arlington, Virginia- based AES in the talks. "Regulatory culture matters." Bernini ran Eletropaulo Metropolitana SA before AES bought it five years ago and then served as a utility regulator and chief executive of Electricidade de Portugal SA's Brazilian businesses, says Bloomberg. AES consulted the development bank on Bernini's appointment "and we approved of it," Roberto da Costa, the bank's chief financial officer and lead negotiator, said at a press conference Tuesday at the bank's Rio de Janeiro headquarters. AHOLD: Justice Ministry's Proposal May Lower Price of Assets ------------------------------------------------------------ Royal Ahold NV, the world's third- largest retailer, is likely to get a lower price for its assets in Brazil if the country's antitrust agency grants a recommendation that the Company sell its three local units separately, Bloomberg reports, citing an analyst. In order to address antitrust concerns, Brazil's justice ministry is likely to recommend that the antitrust agency require the Dutch retailer to sell stores in Feira de Santana, Salvador and Aracaju, in Brazil's northeast, to different buyers, said Daniel Goldberg, head of the ministry's antitrust division. The recommendation will be sent to the antitrust agency next week, Goldberg said in an interview during a seminar in Sao Paulo. "The restriction, if accepted by the agency, can reduce the price Ahold may get for its assets," said Alexandre Garcia, a retail analyst at BES Securities in Rio de Janeiro. Wal-Mart Stores Inc., the world's biggest retailer, as well as Cia. Brasileira de Distribuicao Grupo Pao de Acucar and France's Carrefour SA, have submitted bids for Ahold's Bompreco and G. Barbosa chains. Together, the units had sales of BRL3.3 billion ($1.1 billion) last year. Ahold is selling its assets in South America in an effort to cut its debt from EUR12 billion (US$13 billion) and boost its stock price, which has fallen 26.5% this year, after the Company said accounting irregularities inflated profits by at least US$500 million in 2001 and 2002. AHOLD: Rising Losses May Lower Price For Bompreco ------------------------------------------------ Dutch Ahold Retailer Ahold NV may find it hard to get a competitive price for its Bompreco supermarket chain in northeastern Brazil due to the unit's recent poor financial performance. According to a report released by Dow Jones, Bompreco Bahia, in a filing with the Sao Paulo Stock Exchange Wednesday, unveiled a second quarter loss of BRL28 million ($1=BRL2.90), compared with a BRL7.8 million loss in the same period last year. Bompreco Bahia lowered financial expenses last quarter and saw net revenue climb 7.5% to BRL271.6 million, but operating losses still widened 120% to BRL18.1 million. Over the first six months of the year, the unit posted a net loss of BRL50.7 million on net revenue of BRL548 million. Analysts expect Bompreco, the leading supermarket chain in Brazil's Northeast, to be the biggest draw of Ahold's Latin American assets that are up for sale. =============== C O L O M B I A =============== BANCAFE: IFC May Take Up Stake Pending Board Approval ----------------------------------------------------- The board of directors of the International Finance Corporation is to decide in October whether to approve IFC's plan to assume an equity/quasi equity stake of up to US$20 million in Colombian state bank Bancafe. According to Business News Americas, the IFC has been approached by the Colombian government as part of an effort to attract interest in the Bancafe privatization, which it is bent on undertaking as soon as possible. The IFC, in a project statement, said it will help Colombia's deposit insurance agency Fogafin, which currently holds 99.99% of Bancafe's equity, to find a strategic partner to take up a majority stake in Bancafe. The Colombian government intervened Bancafe in 1999 due to severe financial deterioration before Fogafin took over the bank in the same year. The insurance agency has spent a lot of money cleaning up and streamlining Bancafe since its take-over. 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 PAZ DEL RIO: Appoints New Directors ----------------------------------- An unnamed official from Acerias Paz del Rio confirmed that workers at the Colombian steelmaker have voted to elect their three directors, Business News Americas relates. The three are Maria Mercedes Cuellar -currently president of the Instituto Colombiano de Ahorro (ICAV)- Mauricio Cabrera Galvis and Jaime Barrero Renjifo. The other two directors, due to be named in coming days, will be one each chosen by the government of the Boyaca department, and one by the state's IFI industrial development agency. The appointments, which shareholders are due to ratify at a meeting on September 18, follow the Boyaca-based company's financial restructuring. CONTACT: ACERIAS PAZ DEL RIO S.A. Carrera 8 # 13-31, Pisos 7 al 11 Bogota, D.C. Phone: (091) 282-8111 Fax: (091) 282-6268 282-3480 E-mail: apdr@multi.net.co =================================== D O M I N I C A N R E P U B L I C =================================== UNION FENOSA: Sets Condition For DR Exit ---------------------------------------- Dominican President Hipolito Mejia and his team met with Honorato L�pez Isla, a vice-president of Uni�n Fenosa in Spain, on Tuesday to discuss the conditions that must be met to permit Fenosa's withdrawal from the DR, reports DR1 Daily News. Fenosa bought distributors Edenorte and Edesur in a 1999 privatization, but this year the utilities have been hemorrhaging cash as a result of the combination of dollar-linked rates with a fast-depreciating Dominican peso. According to the report, Fenosa is asking the DR government a payment of US$679 million for the takeover of its 50% stakes in the local power distributors. An alternative to the government assuming control of the companies is the suggestion made by the DR's power regulator for the Inter-American Development Bank (IDB) to intervene in Edesur and Edenorte, to whom it loaned US$188 million in 2001. However, the IDB and the World Bank have both said already that they oppose the intervention idea. The solution could be decided when President Mejia makes an official visit to Spain September 15-17. ===================== E L S A L V A D O R ===================== CTE SALVADOR: S&P Affirms AMX's Ratings --------------------------------------- Standard & Poor's Ratings Services said Wednesday that it affirmed its 'BBB+' local currency corporate credit rating and its 'BBB-' foreign currency corporate credit rating on Am�rica M�vil S.A. de C.V. (AMX). The affirmation follows the company's announcement that, subject to regulatory approvals, it will acquire 51% of Compa��a de Telecomunicaciones de El Salvador (CTE), a provider of fixed and mobile telecommunications services in El Salvador. CTE had roughly 623,000 wire-line subscribers and 152,000 wireless subscribers at the end of June 2003, with revenues and EBITDA of approximately $187 million and $90 million dollars, respectively, for the six months ended June 2003. AMX will assume $25 million of net debt upon the successful closing of the transaction. The purchase price of $417 million will be paid through the company's cash balances ($1.2 billion as of June 30, 2003). Additionally, on Aug. 29, 2003, AMX announced that its offer to acquire an interest in Brazilian Company BCP S.A. had been accepted. The company's enterprise value, including debt and equity, was set at $625 million. Subject to regulatory approvals, AMX will also use its cash position to acquire this interest. Operating in the metropolitan area of Sao Paulo, BCP has approximately 1.7 million subscribers and has the highest average revenue per user in Brazil. "The ratings on AMX reflect its role as one of the most important telecommunication companies in Latin America, based on the number of wireless subscribers and investments realized, as well as its focus on high growth markets, evidenced by its wireless penetration in the markets it serves," said Standard & Poor's credit analyst Patricia Calvo. The ratings on AMX also consider its significant presence in Mexico, where its cellular subsidiary Radiomovil Dipsa S.A. de C.V. (known under its trademark Telcel) currently generates about 64% of AMX's revenues, and contributes 71% of its EBITDA (figures for the six months ended June 30, 2003). On the other hand, ratings also reflect the relatively short history of the company, the added business risk exposure to the Brazilian economy-even more with the acquisitions of BSE S.A. and BCP in 2003-the impact that further acquisitions may have on its balance sheet, and the exposure to more competition derived from new market entrants. Still, in the medium term, its Mexican subsidiary Telcel will remain of overwhelming importance to AMX as a source of revenue and cash flow in the consolidated figures. The evolution of the highly competitive Brazilian wireless market might impose some challenges on AMX's business and financial plans that would limit its former upside rating potential, at least until TA's performance contributes to, instead of demanding from, AMX's current credit profile. The outlook also reflects the expectation that no significant new acquisitions will take place until AMX's credit strength is recovered. ANALYST: Patricia Calvo, Mexico City (52) 55-5279-2073 ============= J A M A I C A ============= KAISER ALUMINUM: Swiss Group In Due Diligence on Jamaican Ops ------------------------------------------------------------- Management Representatives from Glencore & Century are now conducting due diligence process on two Kaiser Aluminum entities in Jamaica - Alumina Partners (Alpart) and Kaiser Jamaica Bauxite Company (KJBC). According to a report by the Jamaica Gleaner, Century Aluminum is one of six companies, which have shown interest in Kaiser's local investments. There are eight bidders in all, but two have no interest in the Jamaican operations. Century was formed in 1995 by Swiss metal trading firm Glencore International, which bought Alcan shares in Alcan Jamaica in June 2001, as a holding company for its aluminum assets. Century became publicly owned in 1996. Among the other firms interested in Alpart and Kaiser and which are expected to send teams here between this week and the first week of October for due diligence purposes are Mitsubishi, whose only interest is in Alpart, and Aluchem, which is interested in both Kaiser Jamaica and Kaiser's U.S. refinery at Gramercy. =========== M E X I C O =========== DESC: Intends To Sell Adhesives, Waterproofing Businesses --------------------------------------------------------- DESC, S.A. de C.V. (NYSE: DES; BMV: DESC) signed a letter of intent with Henkel Group to sell the adhesive and waterproofing businesses, of its consumer products division. This transaction could be closed before year end. The adhesive business products are sold under the Resistol, Resistolito, and Simon brands. This business produces school and household glues, polyvinyl acetate (white glue), contact and acrylic adhesives, sealants and hot melts (specialized adhesives). These products are sold to various industries and final consumers including shoe manufacturers, wood and furniture companies, artisans and businesses within the automotive industry. The waterproofing products are sold under the FesterT, Acrit�n and Resik�n brands. This segment also produces and sells chemical products for construction including cement additives and construction coatings, which are used in the construction industry and as household maintenance products. Sales during 2002 in both businesses reached US $89.4 million representing 4.5%of the consolidated sales for the group. The adhesives and waterproofing businesses are not core for DESC. This transaction has been approved by Mexico's Federal Antitrust Commission (Comisi�n Federal de Competencia), and once this divestiture is closed, the proceeds will be used principally to strengthen Desc's financial structure and its future performance. DESC, S.A. de C.V. (NYSE: DES; BMV: DESC) is one of Mexico's largest industrial groups with sales of approximately US$ 2.0 billion during 2002 and more than 16,000 employees. Through its subsidiaries, the Company is a leading operator in the Autoparts, Chemical, Food and Real Estate Sectors. CONTACT: Arturo D'Acosta Ruiz Alejandro de la Barreda Phone: (5255) 5261-8037 Email: alejandro.delabarreda@desc.com.mx Melanie Carpenter Phone: 212-406-3693 Blanca Hirani Email: bhirani@i-advize.com VITRO: Sells Envases Cuautitlan to Shore Up Liquidity ----------------------------------------------------- Vitro, S.A. de C.V. (NYSE: VTO; BMV: Vitro A), announced Wednesday that has completed the sale of Envases Cuautitl n S.A. de C.V., to Phoenix Capital Ltd. Group for an approximate amount of $18 million dollars. The transaction is consistent with Vitro's strategy of focusing its resources and energy to concentrate in its glass-related businesses of Flat glass, Containers, and Glassware throughout the world. "Vitro has maintained the strategy of focusing in its glass- related businesses as well as upgrading its financial profile, since some years ago. The divestiture of Envases Cuautitl n is another consistent step in that direction", said Federico Sada, CEO of Vitro. The proceeds of this operation will be applied to strengthen Vitro's financial position. Envases Cuautitl n, S.A. de C.V., is dedicated to manufacture and sale plastic containers and is located in Cuautitlan, State of Mexico. Vitro, S.A. de C.V. (NYSE: VTO; BMV: VITROA), through its subsidiary companies, is one of the world's leading glass producers. Vitro is a major participant in three principal businesses: flat glass, glass containers and glassware. Its subsidiaries serve multiple product markets, including construction and automotive glass; fiberglass; food and beverage, wine, liquor, cosmetics and pharmaceutical glass containers; glassware for commercial, industrial and retail uses; plastic and aluminum containers. Vitro also produces raw materials and equipment and capital goods for industrial use. Founded in 1909 in Monterrey, Mexico-based Vitro has joint ventures with major world-class partners and industry leaders that provide its subsidiaries with access to international markets, distribution channels and state-of-the-art technology. Vitro's subsidiaries have facilities and distribution centers in eight countries, located in North, Central and South America, and Europe, and export to more than 70 countries worldwide. CONTACT: VITRO, S. A. DE C.V. (Media Monterrey): Albert Chico Smith +52 (81) 8863-1335 achico@vitro.com (Media Mexico D.F.): Eduardo Cruz +52 (55) 5089-6904 ecruz@vitro.com (Financial Community): Beatriz Martinez/Jorge Torres +52 (81) 8863-1258/1240 bemartinez@vitro.com jtorres@vitro.com (U.S. Contacts): Alex Fudikidis/Susan Borinelli Breakstone & Ruth Int. (646) 536-7012 / 7018 afudukidis@breakstoneruth.com sborinelli@breakstoneruth.com ======= P E R U ======= SIMSA: Schedules General Meeting For September 12 ------------------------------------------------- Peruvian zinc miner San Ignacio de Morococha (Simsa) will hold a general shareholders meeting on September 12 to authorize management to contact "possible interested parties" and analyze measures to obtain financing for its operations, reports Business News Americas. Simsa succumbed to bankruptcy in early 2002 after it was beset by low zinc prices. Subsequently, it formed a strategic alliance with Swiss resources group Glencore providing it with a US$6- million credit, guaranteed by its Monobamba I and II electric generators for US$4.5 million and its Callao mineral deposit for US$1.5 million. Simsa mines at San Vicente in the Chanchamayo area of Junin department in central Peru. CONTACT: COMPANIA MINERA SAN IGNACIO DE MOROCOCHA S.A.- SIMSA Calle Uno 795 - Urb. Corpac San Isidro - Lima 27 Phone: 224-3432 Fax: 224-1321 E-Mail: simsa@simsa.com.pe ===================== P U E R T O R I C O ===================== DORAL FINANCIAL: Addresses Investor Concerns -------------------------------------------- Mr. Salomon Levis, Chairman of the Board and Chief Executive Officer of Doral Financial Corporation (NYSE: DRL), stated that contrary to recent announcements by several large U.S. mortgage lenders, the Company was not experiencing a drop in mortgage production. As previously explained in the Company's August 1, 2003 press release, the recent increases in mortgage rates had not had the same adverse impact on mortgage production in Puerto Rico as in the mainland United States. This was due in large part because refinancing loans in Puerto Rico tend to be driven more by debt consolidation considerations rather than interest rate savings. In addition, the demand for new housing in Puerto Rico remained strong. As in July, mortgage loan production for August and the beginning of September continued strong. Mr. Levis stated that, in the absence of sharp unexpected increases in mortgage rates, he anticipated that mortgage production for the quarter would surpass prior record levels. CONTACT: Doral Financial Corporation Richard F. Bonini Phone: 212-329-3728 Mario S. Levis Phone: 787-474-6709 *********** 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. 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