/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/030918.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, September 18, 2003, Vol. 4, Issue 185 Headlines A R G E N T I N A 059: Receiver Reviewing Claims For Bankruptcy Proceedings BANCO BISEL: Nacion Delays Opening of Auction Process BRANDAUER Y COMPANIA: Reorganization Ends In Bankruptcy BUSINESS SUPPLEMENTAL: Claims Filing Due By November 26 CALERA CANADA: Mendoza Tribunal Declares Company Bankrupt CLINICA PRIVADA: Receiver Named For Bankruptcy Process DIRECTV LA: Seeks Court OK for Small Asset Sale Protocol FARVAL: Court Declares Company Bankrupt; Assigns Receiver FERMODYL: Claims Processing Ends October 14 HAKUNA MATATA: Court Assigns Receiver For Bankruptcy HECBI PRODUCCIONES: Undergoes Bankruptcy Proceedings HEINOLS: Court Makes Bankruptcy Official HIDROELECTRICA EL CHOCON: Moody's Assigns Bonds Junk Ratings HILO COMUNICACIONES: Court Declares Bankruptcy IEBA: Fitch Moves $230M of Bonds to Default Territory MOLPA: Bankruptcy Proceeds With Credit Verification NIKKO QUIMICA: Claims Verifications End September 29 * S&P Issues Commentary Examining Magnitude of Argentine Default * Judge Prevents Bondholders From Seizing Argentine Assets B R A Z I L AHOLD: ABN Amro Extends Deadline For Final Bids For Local Assets TRICO MARINE: Completes Sale of North Sea Vessel, Brazilian Asset C H I L E COEUR D'ALENE: Closes Public Offering to Raise $76 Million ENAMI: Government Orders Management Restructuring ENDESA CHILE: Ends Conflict With Four Pehuenche Families C O L O M B I A COLOMBIA TELECOMUNICACIONES: Modernization Plan Nears Completion E C U A D O R ANDINATEL/PACIFICTEL: Tender Process Details Coming Soon M E X I C O ISPAT INTERNATIONAL: Reaches Agreement With Ryerson Tull ROHN INDUSTRIES: Files for Chapter 11 Protection P E R U AEROCONTINENTE: Criticizes Chilean Court's Ruling T R I N I D A D & T O B A G O CARONI LTD.: Local Group Angling For Assets U R U G U A Y UTE: Power Buy Talks With Rima To Continue This Week UTE: Seeks Indications of Interest for Wind Power Project ********* ================= A R G E N T I N A ================= 059: Receiver Reviewing Claims For Bankruptcy Proceedings -------------------------------------------------------- Mr. Carlos Alberto Vicente, receiver for 059 S.R.L., is verifying creditors' claims for the Company's bankruptcy process. A report by local news portal Infobae relates that the verification period ends in October 21 this year. After the verification process is completed, the receiver will prepare the individual reports and is required to submit them to the court on December 2 this year. A general report must follow on February 18 next year. CONTACT: Carlos Alberto Vicente Ave. Corrientes Buenos Aires BANCO BISEL: Nacion Delays Opening of Auction Process ----------------------------------------------------- Argentine Banco Nacion announced it has postponed the opening of the auction process for local bank Nuevo Banco Bisel from September 17 to September 30, relates Business News Americas. Banco Nacion which took over Bisel after its French owner Credit Agricole exited crisis-ridden Argentina last year, decided on the postponement to grant a request by interested parties to take part in the bid. The review of the economic offers is set to start October 20. CONTACT: BANCO BISEL S.A. Mitre 602 Rosario 2000 Santa Fe Argentina Phone: 0341-4200300 Home Page: http://www.bancobisel.com.ar/ Contact: Guillermo Harteneck, President Jean Luc Perron, Vice President Bernard Brousse, Vice President BRANDAUER Y COMPANIA: Reorganization Ends In Bankruptcy ------------------------------------------------------- Brandauer Y Compañía S.A., which was undergoing reorganization, was declared bankrupt by the Civil and Commercial Tribunal of Bahia Blanca where it is based. A report by local news source Infobae relates that the receiver for the process is Estudio Llull y Bazerque. The Company's creditors have until September 26 to present their claims to the receiver for verification. The province's Court No. 8, which holds jurisdiction over the case, ordered the receiver to have the individual reports ready by November 7 this year. The general report, which is prepared after the individual reports are processed in court, must be filed by December 12. CONTACT: Bradauer y Compania S.A. Zelarrayan 350 Bahia Blanca Estudio Lull y Bazerque Sarmiento 548 Bahia Blanca BUSINESS SUPPLEMENTAL: Claims Filing Due By November 26 ------------------------------------------------------- The credit verification process for the bankruptcy of Buenos Aires company Business supplemental S.A. de Servicios Empresarios Suplementarios ends on November 26 this year. The receiver, Mr. Francisco Guerreno will then prepare the individual reports. Argentine news portal Infobae relates that the city's Court No. 6 ordered the Company's bankruptcy. The court is assisted by the city's Clerk NO. 12 on the case. CONTACT: Business supplemental S.A. de Servicios Empresarios Suplementarios Ave. Corrientes 1642 Buenos Aires Francisco Guerreno Rodriguez Pena 794 Buenos Aires CALERA CANADA: Mendoza Tribunal Declares Company Bankrupt --------------------------------------------------------- The Civil and Commercial Tribunal of Mendoza in Argentina orders the bankruptcy of local company Calera Canada Grande S.A., relates Infobae. The province's Court No. 2 holds jurisdiction over the Company's case. Mr. Hugo Alberto Tillar was assigned as the Company's receiver for the process. Creditors are given until October 10 to have their claims authenticated by the receiver. The court also ordered the receiver to prepare the individual reports once the verifications are completed. These reports must be passed to the court on December 2 this year. The receiver is also instructed to file a general report on April 25 next year. CONTACT: Hugo Alberto Tillar San Martin 941 Buenos Aires CLINICA PRIVADA: Receiver Named For Bankruptcy Process ------------------------------------------------------ Ms. Mirta Addario, an accountant from Buenos Aires takes charge as receiver of Clinica Privada Moreno S.A., relates Argentine news portal Infobae. Creditors must present their proofs of claim to the receiver for verification before November 10 this year. The city's Court No. 2 and Clerk No. 4 take charge of the case. The bankruptcy proceedings started shortly after the court declared the Company "Quiebra Decretada". CONTACT: Clinica Privada Moreno S.A. Delgado 589 Buenos Aires Mirta Addario Moreno 442 Buenos Aires DIRECTV LA: Seeks Court OK for Small Asset Sale Protocol -------------------------------------------------------- Before the Petition Date, DirecTV Latin America LLC routinely and in the ordinary course of business, sold, or when necessary, disposed of non-core assets that were or had become tangential, superfluous or burdensome to its operations. DirecTV wants to continue this practice postpetition, to the extent necessary to economically administer its estate. With the Court's permission, DirecTV will adopt a global expedited procedure for the sale of De Minimis Assets with a selling price of no more than $200,000 on any individual transaction to any single buyer or group of related buyers. DirecTV will sell the De Minimis Assets free and clear of all liens, claims, interests and circumstances, pursuant to Sections 105(a) and 363 of the Bankruptcy Code, without further hearing or Court order. Joel A. Waite, Esq., at Young Conway Stargatt & Taylor, LLP, in Wilmington, Delaware, relates that the De Minimis Assets refer to computers, equipment, furniture and other assets not related to DirecTV's core business operations. Given their small monetary value, these Assets may become obsolete, excess and burdensome in the ordinary course of DirecTV's business. DirecTV asserts that, given the small monetary value of any De Minimis Assets in relation to the magnitude of its overall operations, it would not be an efficient use of the estate's resources to seek Court approval every time it has the opportunity to sell. Mr. Waite maintains that the best recourse would be to sell each De Minimis Asset for the highest and best offer, taking in consideration the particular exigencies and circumstances. In this regard, the Debtor will implement these procedures with respect to the sales: (a) The Debtor will notify: (i) any known affected creditor asserting a Lien on any De Minimis Asset for sale; (ii) the counsel for Hughes Electronics Corporation, as lender; and (iii) the counsel for the Official Committee of Unsecured Creditors; (b) The notice will contain a general description of any De Minimis Assets for sale, any commissions paid to third parties who would sell or auction the Assets, and the purchase price; and (c) If none of the parties receiving the notice objects within five business days of its receipt, DirecTV may immediately finalize the transaction, including making any disclosed payments to the third party brokers or auctioneers. If an objection that is received within the period cannot be resolved, the Asset will not be sold except upon Court order. Mr. Waite contends that the procedures are fair and reasonable because: -- if a holder of a lien, claim or encumbrance, as one of the Sale Notice Parties, receives the requisite notice and does not timely object, that holder will be deemed to have consented to the sale and the property can be sold free and clear of any liens, claims or encumbrances; -- any agreement reached as a result of a sale of De Minimis Assets will be an arm's-length transaction entitled to the protections of Section 363(m); and -- DirecTV is selling the De Minimis Assets to reduce indebtedness and improve liquidity, thereby facilitating the formulation and ultimate confirmation of a reorganizing plan and yielding the highest possible return to its creditors. (DirecTV Latin America Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Service, Inc., 609/392-0900) FARVAL: Court Declares Company Bankrupt; Assigns Receiver --------------------------------------------------------- Farval S.A.C.I.F, which is domiciled in Buenos Aires, enters bankruptcy upon orders from the city's Court No. 24, reports local news source Infobae. The city's Clerk No. 47 aids the court on the process. Enrique Jose Battellini, was assigned as the Company's receiver, the report adds. He will verify creditors' claims until October 22 this year. This is done to examine and determine the Company's debts. The court also requires the receiver to prepare the individual reports after the verification process is completed. These reports must be filed at the court on November 24 this year followed by the general report on February 6, 2004. CONTACT: Enrique Jose Battelini Parana 774 Buenos Aires FERMODYL: Claims Processing Ends October 14 ------------------------------------------- The credit verification process for the bankruptcy of Buenos Aires-based company Fermodyl S.A.A.C.I.E.I. ends on October 14 this year. Argentine news source Infobae relates that the city's Court No. 11 designated Mr. Jose Luis Abuchidid as the Company's receiver who will verify the claims. Aside from authenticating creditors' claims, the receiver's duties also include the preparation of the necessary reports. Infobae relates that the individual and general reports must be presented to the court on November 25, 2003 and February 9, 2004, respectively. CONTACT: Jose Luis Abuchidid Tacuari 119 Buenos Aires HAKUNA MATATA: Court Assigns Receiver For Bankruptcy ---------------------------------------------------- Buenos Aires Court No. 23 assigns Mr. Anibal Osuna as receiver for bankrupt company Hakuna Matata S.R.L., reports Infobae. The city's Clerk No. 46 aids the court on the case. The receiver, who is an accountant from Buenos Aires, will verify creditors' claims until November 20 this year. After that, he will prepare the individual and general reports on the process, but the source did not mention the deadline for these reports. CONTACT: Hakuna Matata S.R.L. Santa Magdalena 324 Buenos Aures Anibal Osuna Mercedes 3259 Buenos Aires HECBI PRODUCCIONES: Undergoes Bankruptcy Proceedings ---------------------------------------------------- As ordered by Buenos Aires Court No. 14, Hecbi Producciones S.R.L., will undergo the bankruptcy process, with Ms. Susana Graciela Marino as receiver. Creditors must present their claims to the receiver for verification before the November 10 deadline expires. Argentine news source Infobae relates that the individual reports, which the receiver must prepare after the verification process is completed, must be presented to the court on December 23 this year. The receiver is also required to prepare a general report on the process and pass it to the court on March 9 next year. The general report is prepared after the individual reports are processed in court. CONTACT: Susana Graciela Marino Uruguay 560 Buenos Aires HEINOLS: Court Makes Bankruptcy Official ---------------------------------------- Court No. 4 of Buenos Aires orders the bankruptcy of local company Heinols S.A., reports Infobae. The Company is placed in the hands of Mr. Juan Esturo, who was designated as receiver for the process. The credit verification period will end on November 27 this year. Creditors must present their proofs of claim to the receiver before that date. The receiver is also required to file individual and general reports on the proceedings. However, Infobae did not mention whether the court has set the deadlines for the submission of these reports. CONTACT: Heinols S.A. Alsina 1214 Buenos Aires Juan Esturo Reconquista 336 Buenos Aires HIDROELECTRICA EL CHOCON: Moody's Assigns Bonds Junk Ratings ------------------------------------------------------------ Hidroelectrica El Chocon S.A.'s corporate bonds received junk ratings from Moody's Latin America Calificadora de Riesgo S.A., relates the Argentine securities regulator, Comision Nacional Valores. The rating, which was issued last Friday, was determined from the Company's finances as of the end of June this year. The CNV described the affected bonds as "Obligaciones Negociables", which mature on February 19 next year. These bonds were classified under "Simple Issue". However, the CNV did not reveal the bonds' CUSIP. The ratings agency said that the rating denotes an extrenely weak credit risk relative to other issues in argentina. Capacityfor meeting financial commitments is solely reliant upon sustained, favorable business or economic conditions. HILO COMUNICACIONES: Court Declares Bankruptcy ---------------------------------------------- Buenos Aires' Court No. 11 orders the bankruptcy of local company Hilo Comunicaciones S.A., according to a report by Argentine news portal Infobae. Working with Clerk No. 22, the court assigned Mr. Jose Luis Blazquez as the receiver for the process. The receiver is required to verify creditors' claims until November 6 this year. The report adds that the receiver will prepare the individual reports after the authentication period ends. These reports must be submitted to the court on December 22. The court also ordered the receiver to prepare a general report on the process and have it ready by March 4 next year. The receiver may voice out his opinions on the factors that led to the Company's bankruptcy in this report. CONTACT: Jose Luis Blazquez Fray Justo Santa Maria de Oro 2381 Buenos Aires IEBA: Fitch Moves $230M of Bonds to Default Territory ----------------------------------------------------- Fitch Argentina Calificadora de Riesgo S.A. moved a total of US$230 million of Inversora Electrica de Buenos Aires S.A.'s corporate bonds to default territory. According to the country's securities regulator, the Comision Nacional Valores, the rating given last week was based on the Company's finances as of the end of June this year. The 'D(arg)' rating applies to US$100 million of "Obligaciones Negociables por U$S 100.000.000", and US$130 million of "Obligaciones Negociables Simples no convertibles en acciones." These bonds were classified under "Simple Issue", but the maturity dates were not indicated. The ratings agency said that such ratings are assigned to financial obligations in Argentina that are currently in default. MOLPA: Bankruptcy Proceeds With Credit Verification --------------------------------------------------- The bankruptcy of Martin Osvaldo Lopez Pereda y asociados S.A. (MOLPA) proceeds with the verification of credit claims. Argentine news source Infobae relates that the process will end on November 27 this year. Creditors must present their claims to the receiver, Mr. Roberto Boffa before the said date. Buenos Aires' Court No. 6, which handles the Company's case ordered the receiver to prepare the individual and general reports after the authentication process is completed. The source, however, did not mention whether the court has set the deadlines for the filing of these reports. CONTACT: Martin Osvaldo Lopez Pereda y asociados S.A. Ave. del Libertador 2442 Buenos Aires Roberto Boffa Uruguay 390 Buenos Aires NIKKO QUIMICA: Claims Verifications End September 29 ---------------------------------------------------- Creditors of Buenos Aires-based company Nikko Quimica S.A. have until September 29 to present their claims to the Company's receiver for verification. After that date, Mr. Jorge Arias, the receiver, will prepare the individual reports. The city's Court No. 9, which holds jurisdiction over the Company's case, ordered the receiver to file the individual reports on November 10, followed by the general report on December 23. CONTACT: Nikko Quimica S.A. O Higgins 2495 Buenos Aires Jorge Arias Ave. Rivadavia 1227 Buenos Aires * S&P Issues Commentary Examining Magnitude of Argentine Default ---------------------------------------------------------------- Standard & Poor's Ratings Services issued Tuesday a commentary that examines the magnitude of the Republic of Argentina's 2001 default, the biggest sovereign default in history, and the challenges it faces in successfully renegotiating its debt. The article, entitled "Climbing Out of Debt: The Road Ahead for Argentina," (available on RatingsDirect, Standard & Poor's Web-based credit analysis system, at http://www.ratingsdirect.com;members of the media may obtain copies of the full report by contacting Christopher Mortell at (1) 212-438-2756 or by E-mail at christopher_mortell@standardandpoors.com), concludes that a sustainable economic recovery in Argentina following a rescheduling of debt with creditors would likely require a deeper fiscal adjustment than typically seen in Latin America in the past, or that seen in Argentina after it emerged from its previous debt default in 1993. According to credit analyst Joydeep Mukherji, Argentina is the wealthiest sovereign to have defaulted on its sovereign debt. The country's per capita GDP exceeded US$7,800 in 2000, the year prior to its default. The government's debt burden may exceed 140% of GDP at the end of 2003. "Argentina's future debt burden will depend not only upon the level of debt forgiveness and the government's underlying fiscal stance, but also upon contingent liabilities that may subsequently crystallize, such as pending compensation claims from the banking system and privately owned utilities," Mr. Mukherji noted. "Regardless of what it does, Argentina will continue to labor under a heavy debt load, absent debt forgiveness well beyond that received by other recently defaulting sovereigns," he concluded. ANALYST: Joydeep Mukherji, New York (1) 212-438-7351 * Judge Prevents Bondholders From Seizing Argentine Assets ---------------------------------------------------------- The embattled Argentine government has 45 more days from Monday to protect its assets being seized by its jilted bondholders. According to Reuters, Judge Thomas Griesa of the U.S. Southern District of New York ruled that bondholders, such as Cayman Islands-based EM Ltd that claims to be owed about US$700 million in principal and interest, cannot lay their hands on Argentine assets for 45 days. The judge issued this ruling to give Argentina ample time to get its debt restructuring under way. Last week, Argentina clinched a new lending agreement with the International Monetary Fund (IMF), and the country has said it will outline its plan for restructuring its defaulted debt at the IMF's meeting in Dubai later this month. "It would be unwise in view of the arrangement with the IMF and the upcoming meeting in Dubai to deny the stay," Griesa said from the bench Monday evening. EM and several other investors have chosen litigation over negotiation as a way of settling their claims against Argentina. Argentina is asking the judge to keep all suits by bondholders on the back burner to clear the way for the country to renegotiate defaulted debts. Griesa granted the stay but warned Argentina's lawyers that his decision on Monday does not indicate he will continue granting one stay after another. =========== B R A Z I L =========== AHOLD: ABN Amro Extends Deadline For Final Bids For Local Assets ---------------------------------------------------------------- ABN Amro, the Dutch bank managing the sale of the Brazilian assets of Dutch retail giant Ahold, has again pushed back the deadline for final offers for the assets. According to an article published by SEAFOOD.COM NEWS, the new deadline is now September 26. ABN Amro last set the deadline for September 18. But in order to grant a request by three retail groups interested in the assets, it has again extended the deadline. Ahold is selling northeastern supermarket chains Bompreco Supermercados do Nordeste and G.Barbosa Comercial, as well as credit card business Hipercard, as part of a wider exit from South American markets after being rocked by an accounting scandal. The three groups eyeing for the said assets, are Brazil's Companhia Brasileira de Distribuicao (CBD), Wal-Mart Stores Inc., and France's Carrefour. TRICO MARINE: Completes Sale of North Sea Vessel, Brazilian Asset ----------------------------------------------------------------- Trico Marine Services, Inc. (Nasdaq: TMAR) announced that it is continuing to make progress executing its liquidity enhancement plan. The Company completed the sale of one of its largest North Sea vessels for NOK 263.5 million, approximately $35.5 million. In addition, the company completed the sale of its Brazilian AHTS newbuild project for approximately $17.3 million. The Company recovered all of its direct vessel costs related to the project. As a result of the sale of its interest in the Brazilian AHTS newbuild project, the Company will no longer be liable for the remaining progress payments required to complete the vessel. Proceeds from the sales will be used to provide working capital and reduce the Company's outstanding bank debt. "The closing of the sales of these vessels marks another significant step in our plans to improve liquidity and strengthen our balance sheet," said Thomas E. Fairley, President and Chief Executive Officer. "We will continue to strive to improve Trico's financial condition to ensure the long-term success of the Company." Trico Marine provides a broad range of marine support services to the oil and gas industry, primarily in the Gulf of Mexico, the North Sea, Latin America, and West Africa. The services provided by the Company's diversified fleet of vessels include the marine transportation of drilling materials, supplies and crews, and support for the construction, installation, maintenance and removal of offshore facilities. Trico has principal offices in Houma, Louisiana, and Houston, Texas. Visit our website at http://www.tricomarine.com ========= C H I L E ========= COEUR D'ALENE: Closes Public Offering to Raise $76 Million ---------------------------------------------------------- Coeur d'Alene Mines Corporation (NYSE: CDE) announced on Tuesday the closing of its previously announced public offering of 23,730,250 shares of common stock at a public offering price of $3.40 per share, which included 3,095,250 shares purchased by the underwriters at the offering price to cover over allotments. Coeur expects to realize total net proceeds from the offering, after payment of the underwriters' discount, of approximately $76.4 million. The offering was managed by CIBC World Markets. A copy of the final prospectus related to the offering can be obtained from CIBC World Markets by e-mail: useprospectus@us.cibc.com or fax: 212-667-6136. The shares were sold pursuant to a registration statement that has been declared effective by the Securities and Exchange Commission. The net proceeds will be used for exploration and development activities, debt reduction, acquisitions, and/or general corporate purposes. Coeur d'Alene Mines Corporation is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The Company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile and Bolivia. CONTACT: Coeur d'Alene Mines Corporation Tony Ebersole, Director of Investor Relations Phone: +1-208-665-0335. ENAMI: Government Orders Management Restructuring ------------------------------------------------- The restructuring of the board of state minerals company Enami is about to take place, Business News Americas indicates. A decree, published recently by the Chilean government in the country's official gazette, is set to give the finance ministry, via state development agency Corfo, four places on the new seven-member board, rather than two of the nine directors at present, one of which is chosen directly and one via Corfo. Furthermore, the decree would lead private sector mining society Sonami to lose one of its two seats and the Chilean copper commission losing a place - a seat that could also be occupied by the undersecretary of mining. Two representatives chosen directly by the country's president are also excluded, although the Chilean engineers' institute will retain its seat under the new arrangement, and the mining minister, currently Alfonso Dulanto, will stay as Enami's chairman. One important other measure in the decree, Santiago daily El Mercurio pointed out, is the stipulation that Enami's CEO, currently Jaime Perez de Arce, will no longer be a person held in "exclusive confidence of the president of the republic," and so could be removed from office by the board. The measure spurred mixed reactions from government officials. Pro-government lawmaker Antonio Leal blasted the changes, saying they would politicize Enami's board. Opposition member Julio Dittborn, on the other hand, welcomed the move, saying the modifications would strengthen the role of Corfo in administering state companies. CONTACT: ENAMI (Empresa Nacional de Mineria) MacIver 459, Santiago, Chile Phone: 637 52 78 637 50 00 Fax: 637 54 52 Email: webmaster@enami.cl Home Page: www.enami.cl/ Contact: Jorge Rodriguez Grossi, President ENDESA CHILE: Ends Conflict With Four Pehuenche Families -------------------------------------------------------- Chilean generator Endesa has finally resolved its conflict with four Pehuenche indigenous families after nearly a decade of legal wrangling with the group, Business News Americas suggests. The Company, a unit of Spain's Endesa, has agreed on an CLP800-million (US$1.2 million) settlement with the four families to resolve a dispute over land rights for the US$570-million Ralco hydroelectric project. According to the settlement, each family will receive CLP200 million and 77 hectares of land elsewhere, as long as they call off legal proceedings against the Company within 20 days. The families must hand over their land deeds to the Inter-American Commission of Human Rights, which brokered the agreement, by October 17, says the report. The 540-megawatt dam, which is almost 90% complete and due to begin operations next year, is crucial to meet Chile's energy needs and help economic growth. =============== C O L O M B I A =============== COLOMBIA TELECOMUNICACIONES: Modernization Plan Nears Completion ---------------------------------------------------------------- Colombia's communications minister Marta Pinto expects state-run fixed line operator Colombia Telecomunicaciones to complete its COP8billion (today US$31mn) two-year modernization plan in November this year, relates local daily La Republica. According to Business News Americas, the modernization plan has been financed by a communications fund that is fuelled by a 5% levy on long distance operators' revenues, and is divided into three basic infrastructure projects: Installation of switching centers, installation of GSM-based fixed wireless access networks (particularly in Cordoba and Sucre departments) and installation of VSAT terminals in 50 isolated localities. Colombia Telecomunicaciones was recently formed using liquidated Telecom's best assets and incorporating its subsidiaries and affiliates. ============= E C U A D O R ============= ANDINATEL/PACIFICTEL: Tender Process Details Coming Soon -------------------------------------------------------- Ecuador's government is expected to publish bidding rules for the tender of a contract to manage state-run wireline operators Andinatel and Pacifictel in two weeks' time. Ecuador has just finished work on the contract, Ecuadorian daily El Universo reports, adding that there will be one winner, which will manage both companies. Ten companies have already submitted expressions of interest to the government's holding company. These companies are Germany's Deutsche Telekom, Spain's Telefonica, Argentina's Impsat, Brazil's AG Telecom, Korea Telecom, Dutch firm Pentascope International, Telecom International USA, France Telecom, Telecom Italia, and UK-based Presch Telecom. The privatization of the companies is part of the conditions for a loan package from the International Monetary Fund (IMF). =========== M E X I C O =========== ISPAT INTERNATIONAL: Reaches Agreement With Ryerson Tull -------------------------------------------------------- Ryerson Tull, Inc. (NYSE: RT) announced Tuesday that it has settled all claims between it and Ispat Inland Steel Company and Ispat International, N.V., related to the $90 million aggregate limit for environmental and other indemnification claims from its 1998 sale of Inland Steel Company. The settlement required a $21 million payment by Ryerson Tull to the Ispat Inland Pension Plan on September 15, 2003. An accrual previously established by Ryerson Tull will fully cover the settlement payment. A separate agreement between Ryerson Tull, the Pension Benefit Guaranty Corporation (PBGC), and Ispat provides that the $21 million payment will immediately reduce Ryerson Tull's $50 million letter of credit/guaranty to the PBGC supporting the Ispat Inland Pension Plan. Future payments to be made by Ispat under the settlement agreement will continue to reduce Ryerson Tull's letter of credit on a dollar-for-dollar basis. "We are pleased to have reached a global resolution of these contingencies, and look forward to continuing our strong commercial relationship with Ispat Inland," said Neil S. Novich, Chairman, President, and CEO of Ryerson Tull. In connection with the 1998 sale of the Inland Steel Company, Ryerson Tull agreed to indemnify Ispat for up to $90 million for specified matters and to provide the PBGC a guaranty of $50 million in the event of a distress or involuntary termination of the Ispat Inland Pension Plan. Any payment under the $50 million guaranty would be applied against the $90 million indemnification. Ryerson Tull established a $50 million letter of credit in favor of the PBGC as security for its guaranty in August 2001. Prior to this settlement, previous indemnification claim payments and settlements had reduced Ryerson Tull's indemnification limit to $75 million. In addition to Ryerson Tull's $21 million payment to the Ispat Inland Pension Plan, the settlement agreement with Ispat provides for the following: -- Ispat will make specified contributions to the Ispat Inland Pension Plan totaling $29 million over the twelve-month period beginning January 2004. -- Ispat will reimburse Ryerson Tull's bank fees and expenses incurred in connection with the letter of credit or any PBGC draw on the letter of credit. -- Ryerson Tull will receive one-third of any environmental insurance recovery, up to a maximum amount of $21 million, related to its environmental indemnifications in connection with the Inland Steel Company transaction. Additional information regarding the settlement agreement can be found in the company's 8-K to be filed with the SEC on September 17, 2003. Ryerson Tull, Inc. is North America's leading distributor and processor of metals, with 2002 revenues of $2.1 billion. The company services customers through a network of service centers across the United States and in Canada, Mexico and India. ROHN INDUSTRIES: Files for Chapter 11 Protection ------------------------------------------------ ROHN Industries, Inc., (BULLETIN BOARD: ROHN), (the "Company") a provider of infrastructure equipment to the telecommunications industry, announced on Tuesday that the Company and five of its direct and indirect subsidiaries have filed voluntary petitions for Chapter 11 relief in the United States Bankruptcy Court for the Southern District of Indiana (the "Bankruptcy Court"). The Company also announced that, concurrent with the Chapter 11 filing, it has entered into a $9.5 million debtor-in-possession ("DIP") line of credit with the lenders that are party to the Company's Amended and Restated Credit Agreement, subject to the approval of the Bankruptcy Court, which will include funds that will be rolled forward from the Company's current credit facility. Subject to the provisions of the Bankruptcy Code, the Company remains in possession of its assets and properties, and continues to operate its business. The Company said that the objective of the Chapter 11 proceeding is to maximize recovery to creditors by facilitating an orderly sale of assets. The Company is currently in discussions with an unrelated third party regarding a proposed sale of the assets of the Company. Upon the filing of the bankruptcy petition of the Company, but following the approval by the Board of Directors of the Chapter 11 filing, Stephen Gorman and Jordan Roderick each have resigned from the Board of Directors of the Company. Currently, Horace Ward, the Chief Executive Officer of the Company, is the only remaining director of the Company. Commenting on the announcement, Mr. Ward said, "Our immediate goal is to stabilize the Company's financial situation and utilize the Chapter 11 process to enable the Company to conduct normal business operations as the C ompany works to complete a sale transaction." The Company has retained the Indianapolis law firm of Ice Miller to act as its legal counsel in the bankruptcy proceedings. The Company has also retained Silverman Consulting, a national turnaround consulting firm. About the Company The Company is a manufacturer and installer of telecommunications infrastructure equipment for the wireless industry. Its products are used in cellular, PCS, radio and television broadcast markets. The Company's products include towers, poles, related accessories and antennae mounts. The Company also provides design and construction services. The Company has a manufacturing location in Frankfort, IN along with offices in Peoria, IL and Mexico City, Mexico. CONTACT: ROHN Industries, Inc. Horace Ward, President and CEO Phone: +1-309-633-6886 Email: horace.ward@rohnnet.com Home Page: http://www.rohnnet.com/ ======= P E R U ======= AEROCONTINENTE: Criticizes Chilean Court's Ruling ------------------------------------------------- Peruvian airline Aerocontinente slammed a Chilean court's decision to issue arrest warrants against the airline's owners, - siblings Fernando and Lupe Zevallos, and their attorney, Elisabeth López. The airline claims it was the victim of "reprisals" by the Chilean government. The three, according to EFE, were indicted of bribing witnesses in their money laundering trial, a move, which according to Aerocontinente, was "totally unjust, arbitrary and wrong-headed." Aerocontinente argued that it was Chilean prosecutors who were bribing "with amounts of up to $10,000" witnesses brought especially to Chile for the purpose of bolstering their charges against the Peruvian airline. The Company insisted it "has proven the legality of its activities and its assets time and again and the charges should have been stopped a long time since" since they are "totally unfounded." It went on to accuse Chilean prosecutors of seeking "revenge" in reprisal for Aerocontinente's spearheading opposition to the bilateral pact on liberalizing the air transport market between Chile and Peru. "The fact is that Aerocontinente was denied permission to operate in the country, being eliminated from the air transport market in an high-handed and arbitrary fashion, thus ensuring that no Peruvian company of any consequence in the sector is operating in Chile." ================================= T R I N I D A D & T O B A G O ================================= CARONI LTD.: Local Group Angling For Assets ------------------------------------------- The Sugar Workers' and Canefarmers Action Committee (SWCAC) announced that a group of local businessmen is said to be preparing a proposal to buy out the assets of Caroni (1975) Limited, relates the Trinidad Guardian. Team Unity (TU) leader Ramesh Maharaj is scheduled to disclose this "buy-out bid" at a public meeting on Saturday, September 20, at the Usine Ste Madeleine Recreation Ground at 2 p.m. The unnamed group will present its proposal to the inter-ministerial committee on September 29, 2003. ============= U R U G U A Y ============= UTE: Power Buy Talks With Rima To Continue This Week ---------------------------------------------------- Negotiations between Uruguay's state power company UTE and Brazilian industrial conglomerate Rima over a power purchase agreement (PPA) will continue this week, Business News Americas reports, citing UTE commercial manager Luis Margenat. Rima is seeking to secure power from state-owned UTE because its plans, which involve building a metallic silicon plant in Durazno department, in the center of Uruguay, largely depend on what support Uruguay's government would provide. But the two companies seem to have a hard time reaching an agreement over prices. Rima has proposed US$12/MW over eight years, while UTE does not want to commit itself to such a long contract, and has offered US$18/MW for six years. The evolution of power prices "has a certain degree of uncertainty," Margenat said, adding that UTE costs could increase in six years, "and if we can't guarantee profitability, we can't even think about it [the contract]," he said. Rima wants an eight-year contract "because that is what financial institutions require," he added. Now the final decision lies with the presidents of both sides, Margenat said. Rima's proposals, which are reportedly for US$50 million investment, would be good for Uruguay, as it would create 1,000 direct and indirect jobs. UTE: Seeks Indications of Interest for Wind Power Project --------------------------------------------------------- UTE is developing a wind power project with possible generation capacities of 5MW and 30MW, Business News Americas reports, adding that the Company is sounding out interest for this project. In this light, UTE will accept expressions of interest through October 31. Companies should submit technical, financial and economic information that would allow UTE to evaluate its participation in a wind plant. According to Business News Americas, UTE's role could be as the owner of a turnkey plant, or as the offtaker of the generation project. ********* 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. 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