/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/031027.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, October 27, 2003, Vol. 4, Issue 212 Headlines A R G E N T I N A AISLAPORT: Court Orders Bankruptcy AR-CINT: Court Declares Company Bankrupt, Assigns Receiver ARANTES: Receiver Verifies Claims in Bankruptcy Process ARGENTINE UTILITIES: Underfunding Leaves Company Teetering AT&T LATIN: New Ownership Details Expected This Week AXESOR: Court Sets Schedule For Reorganization Proceedings CALPO: Receiver Closes Proofs of Claim Filings Today CARPINTERIA NAVAL: Court Approves Petition For Bankruptcy CASULECO: Bankruptcy Starts With Claims Filing Process CORREO ARGENTINO: Gains More Time For Negotiations DICAM: Court Orders Bankruptcy DOLL TOYS: Credit Check in Bankruptcy Ends November 26 ENCHAPADOS: Receiver Verifies Claims in Bankruptcy ESTABLICIMIENTO METALURGICO: Informative Audience Soon HAMBURGO SYSTEM: Claims Verifications in Bankruptcy Begin HEALTH RESEARCH CORP: Court Assigns Bankruptcy Receiver LOS MONTESANOS: Enters Bankruptcy after Reorganization URAWA: Reorganization Ends in Bankruptcy B E R M U D A GLOBAL CROSSING: Shows Continuity Solutions at Wall Street Fair B R A Z I L VARIG/TAM: Expects Operating Profits for 2003 C O L O M B I A AVIANCA: Two Execs Resign Days Ahead of Shareholders' Meeting E C U A D O R PETROECUADOR: Insurer Extends Coverage Anew M E X I C O DESC: Renegotiates Terms of US$700 Million Bank Loans GRUPO ELEKTRA: Announces Third Quarter 2003 Results GRUPO TMM: To Initiate Arbitration With KCS PEMEX: Receives US$260 Million for Cuervito Natural Gas Project P E R U BANCO WIESE SUDAMERIS: Individual Rating Cut to 'D/E' INTERBANK: Fitch Revises Outlook to Stable After Sovereign Action V E N E Z U E L A PDVSA: Earmarks US$43 Billion for Exploration, Systems Upgrade SIDOR: Strike Costs Company $1M per Day, Official Says - - - - - - - - ================= A R G E N T I N A ================= AISLAPORT: Court Orders Bankruptcy ---------------------------------- Aislaport S.R.L., domiciled in Buenos Aires, entered bankruptcy on orders from the city's Court No. 24. Argentine news portal Infobae relates that the court, assisted by Clerk No. 48, declared the Company "Quiebra". The source, however, did not indicate whether the court has set the deadlines for the processes in the bankruptcy. CONACT: Aislaport S.R.L. Sarmiento 938 Buenos Aires AR-CINT: Court Declares Company Bankrupt, Assigns Receiver ---------------------------------------------------------- Court No. 6 of Buenos Aires orders the bankruptcy of local company Ar-Cint S.R.L., reports Argentine news source Infobae. The Company is placed in the hands of its receiver, Ms. Norma Haydee Fernandez, a local accountant. Creditors must present their claims to Ms. Fernandez for authentication before December 12 this year. This is done to determine the nature and amount of the Company's debts. The receiver will then prepare the individual reports on the results of the bankruptcy process. These reports are to be submitted to the court on February 26 next year, followed by the general report on April 13. The general report is prepared after the individual reports are processed at court. CONTACT: Norma Haydee Fernandez Carlos Pellegrini 465 Buenos Aires ARANTES: Receiver Verifies Claims in Bankruptcy Process ------------------------------------------------------- Argentine accountant Arnaldo Manuel takes over Arnates S.A. as the Company's receiver for its bankruptcy process. Local new source Infobae relates that the receiver will validate creditors' claims until December 10 this year. Court No. 24, which handles the Company's case, requires the receiver to file the individual reports on February 23, 2004. These are prepared upon completion of the credit verifications. The general report, which is prepared after the individual reports are processed at court, is to follow on April 7. CONTACT: Arnaldo Manuel Parana 224 Buenos Aires ARGENTINE UTILITIES: Underfunding Leaves Company Teetering ---------------------------------------------------------- Argentine electricity distributors nears collapse from lack of investments, an official from one of the country's distributors pointed out the country's Energy Minister Julio de Vido. Leaders of local companies Edenor, Edesur and Edelap met with the government official for negotiations on the proposed rates hike. Talks were started within 24 hours of the initiation of the government's ARS8 million case against the companies for service interruptions since 2001. Recently, another local utility, Aguas Argentinas, was slapped with a ARS1.344 million fine for Sunday's service disruption. Local news reports suggest that the government is reluctant to grant the requested rates hike, which was also one of the IMF's demands in negotiations over an aid agreement. CONTACT: EDENOR S.A. Azopardo Building Azopardo 1025 (1107) Capital Federal Phone: (54-11) 4346-5000 Fax: (54-11) 4346-5300 E-mai: to ofitel@edenor.com.ar Home Page: http://www.edenor.com.ar EDESUR S.A. Gte. Gral.: Ing. Rafael Fernandez Morande San Jos, 140, 3o P Capital Federal 1076 Argentina Home Page: www.edesur.com.ar Tel.: 4370-3700/4370-3370 Fax:4381-0708 AT&T LATIN: New Ownership Details Expected This Week ---------------------------------------------------- The winning bidder for AT&T Latin America will be known later this week, according to Dow Jones, which citing a source privy to the auction. Bidding for the company, which filed for Chapter 11 bankruptcy in the state of Florida, closed last Friday, according to the report. Under court rules, the winner will be known within five to six days after closing. Dow Jones says the bidders included Brazil's Embratel (EMT), Mexico's Telefonos de Mexico (TFON) and a Spanish-Chilean conglomerate, comprising of Telefonica S.A. (TEF) and closely held Grupo GTD. While AT&T Latin America originally chose Embratel as the buyer, the final decision will be made via the auction, the company said last September. Embratel had submitted a US$110 million bid. To upend this, other bidders should at least offer US$117.1 million, according to Chilean business newspaper Estrategia. The Dow Jones source confirmed this. Operated under Chapter 11 since March, AT&T Latin America operates in Argentina, Brazil, Chile, Colombia and Peru. Investment bank, Greenhill, is handling the auction, which is expected to close within several months. AXESOR: Court Sets Schedule For Reorganization Proceedings ---------------------------------------------------------- Buenos Aires Court No. 20 has set the schedule for the reorganization of local company Axesor S.A.. A report from local news portal Infobae indicates that the credit verification process ends on November 21 this year. After that, the receiver, Estudio Cardero-Rojas, Mu¤iz y Asociados, will prepare the individual reports, which are to be submitted to the court February 6 next year. The receiver would also prepare the general report after these are processed at the court. The general report comes due on March 19 this year. The court, which works with Clerk No. 40 on the case, has set the informative assembly for August 9 next year. CONTACT: Axesor S.A. Bernardo de Irigoyen 722 Buenos Aires Estudio Cardero-Rojas, Mu¤iz y Asociados Doblas 674 Buenos Aires CALPO: Receiver Closes Proofs of Claim Filings Today ---------------------------------------------------- Mr. Juan Carlos Caro, receiver for Buenos Aires company Calpo S.A., closes the credit verification process for the Company's bankruptcy today. This part of the bankruptcy process determines the nature and amount of the Company's debts. Results of the verifications will be forwarded to the court through the individual reports, which will be submitted to the court on December 10. After these are processed at court, the receiver will consolidate the results into a general report to be passed on February 24 next year, according to an earlier report from the Troubled Company Reporter - Latin America. Buenos Aires Court No. 19 issued the bankruptcy order. Clerk No. 38 assists the court on this case. CONTACT: Calpo S.A. Moliere 1366 Buenos Aires Juan Carlos Caro San Martin 793 Buenos Aires CARPINTERIA NAVAL: Court Approves Petition For Bankruptcy --------------------------------------------------------- Insolvency judge Garibotto of Buenos Aires' Court No. 2 approves a petition for the bankruptcy of Carpinteria Naval A.E. Ernesto Weise S.A.C.I.F., relates Argentine newspaper La Nacion. The petition was filed by the Company's creditor for nonpayment of debt. Working with Clerk No. 3, Dr. Vasallo, the court assigned Mr. Antonio Garguilo as receiver for the process. Creditors are given until December 16 this year to file their claims. The receiver will prepare the individual reports on the verification process. After these reports are processed at the court, the receiver will also prepare a general report. La Nacion, however, did not mention whether the court has set the deadlines for the filing of these reports. CONTACT: Carpinteria Naval A.E. Ernesto Weise S.A.C.I.F. Olavarria 180 Buenos Aires CASULECO: Bankruptcy Starts With Claims Filing Process ------------------------------------------------------ Buenos Aires Court No. 15 orders the bankruptcy of local company Casuleco S.R.L., according to a report from Argentine news portal Infobae. Working with Clerk No. 29, the court placed the company in the hands of Ms. Eva Gords, the receiver appointed to the case. Creditors must have their claims verified by the receiver before November 17 this year. The receiver will prepare the individual reports after the said date. These reports must be submitted to the court on February 2 next year, followed by the general report on March 17. The Company's assets will be liquidated at the end of the process to reimburse its creditors. CONTACT: Eva M Gords Paraguay 1225 Buenos Aires CORREO ARGENTINO: Gains More Time For Negotiations -------------------------------------------------- Correo Argentino has more time to negotiate with its creditors after Argentine judges accepted its `recurso de queja'. The Company would have entered bankruptcy after Judge Favier Dubois rejected its petition for more time for negotiations last month. Judges Maria Gomez Alonso de Dias Cordero, Enrique Butty and Ana Piaggi de Vanossi approved the Company's motion. However, Correo Argentino is still threatened with the possibility of bankruptcy unless it manages to reach an agreement with creditors. A local source indicated that the government, which is one of the Company's major creditors, is interested in gaining full control of the Company, which is what will happen in the event of a bankruptcy. The Macri group currently owns the Company. DICAM: Court Orders Bankruptcy ------------------------------ Dicam S.A., which is based in Buenos Aires, was declared bankrupt by the city's Court No. 2. Clerk No. 3 aids the court on the case, relates local new source Infobae. A local accountant, Mr. Claudio Jorge Haimovici, was assigned as the receiver for the process. The credit verifications will close on December 2 this year. The receiver will prepare the individual reports, which are due on February 23 next year, upon completion of the verification process. The receiver will prepare a general report after the individual reports are processed at court. This report is to be filed on April 7, 2004. The Company's assets will be liquidated at the end of the process to pay off creditors. CONTACT: Claudio Jorge Haimovici Sarmiento 3843 Buenos Aires DOLL TOYS: Credit Check in Bankruptcy Ends November 26 ------------------------------------------------------ The credit verification period for the bankruptcy of Buenos Aires-based company Doll Toys S.A. ends on November 26 this year. A report from local news source La Nacion relates that the Mr. Daniel Macri was assigned as the Company's receiver. The city's Court No. 1, under Dr. Dieuzeide, approved a petition for the Company's bankruptcy, filed by a creditor for failure to meet its financial obligations. Clerk No. 1, Dr. Pasina, aids the court on the case. The receiver is required to prepare the individual and general reports for the process. However, the source did not mention whether the deadlines for these reports have been set by the court. CONTACT: Doll Toys S.A. Valentin Gomez 3024 Buenos Aires Daniel Macri Simbron 742 Buenos Aires ENCHAPADOS: Receiver Verifies Claims in Bankruptcy -------------------------------------------------- Creditors of Argentine company Enchapados Fazio Hermanos S.A. must present their claims to the receiver, Ms. Marta Virginia Tignanelli for authentication before November 18 this year. A report from local new portal Infobae indicates that Buenos Aires' Court No. 17 declared the Company bankrupt. With assistance from the city' Clerk No. 34, the court ordered the receiver to file individual reports on February 2, 2004. These reports are prepared after the credit verification process is completed. The receiver will also prepare the general report after the individual reports are processed at court. This report is to be submitted to the court on March 15 next year. The Company's assets will be liquidated at the end of the process to reimburse creditors. CONTACT: Marta Virginia Tignanelli Reconquista 715 Buenos Aires ESTABLICIMIENTO METALURGICO: Informative Audience Soon ------------------------------------------------------ The informative audience for the reorganization of Argentine company Establecimiento metalurgico Universal S.A.I.C. will take place on December 9 this year, according to a report from local news source Infobae. Court No. 8 of the Civil and Commercial Tribunal of Rosario in Santa Fe handles the Company's case. The source did not reveal the name of the Company's receiver, nor the clerk assisting the court on the case. HAMBURGO SYSTEM: Claims Verifications in Bankruptcy Begin --------------------------------------------------------- Ms. Silvia Amanda Ferrandina, receiver for Argentine company Hamburgo System S.A. is verifying creditors' claims in connection with the Company's bankruptcy process. Creditors must present their claims for verification not later than November 27 this year, reports local news source Infobae. Buenos Aires Court No. 4 and Clerk No. 8 handle the Company's case. In the meantime, the source did not mention whether the court has set the deadlines for the submission of the receiver's reports. CONTACT: Silvia Amanda Ferrandina Asuncion 4642 Buenos Aires HEALTH RESEARCH CORP: Court Assigns Bankruptcy Receiver ------------------------------------------------------- Court No. 24 of Buenos Aires assigned Mr. Angel Romano Pozzi as receiver for the bankruptcy of local company Health Research Corporation S.A., reports local news portal Infobae. The court set December 12 this year as the deadline for the credit verification process. After the said date, the receiver is to prepare the individual reports, which are to be submitted to the court on February 27 next year. The general report, on the other hand, must be filed on April 15, 2004. The Company's assets will be liquidated at the end of the process. Proceeds will be used to reimburse creditors whose claims were authenticated by the receiver. CONTACT: Angel Romano Pozzi Combate de los Pozos 129 Buenos Aires LOS MONTESANOS: Enters Bankruptcy after Reorganization ------------------------------------------------------ The reorganization process for Argentine company Los Montesanos has given way to bankruptcy. A report from local news source Infobae indicates that Buenos Aires Court No. 24 declared the Company "Quiebra". The court-appointed receiver for the process, Ms. Graciela Elena Lissarrague, will validate creditors' claims until November 12 this year. After that date, she will prepare the individual reports, which are to be filed at the court on December 24. The general report is due for submission on March 8 next year. The report is prepared after the individual reports are processed at court. The receiver may include her comments on the factors that contributed to the Company's bankruptcy in this report. CONTACT: Graciela Elena Lissarrague Presidente Peron 1509 Buenos Aires URAWA: Reorganization Ends in Bankruptcy ---------------------------------------- Argentine company Urawa S.A., which was undergoing reorganization enters bankruptcy on orders from Buenos Aires Court No. 24. The Company's receiver, Mr. Guillermo Walter is verifying creditors' claims until November 5 this year. Working with Clerk No. 48, the court ordered the receiver to file the individual reports on November 17 this year, Argentine news source Infobae relates. The general report, prepared after the individual reports are processed at court, are due next March 1. ============= B E R M U D A ============= GLOBAL CROSSING: Shows Continuity Solutions at Wall Street Fair --------------------------------------------------------------- Global Crossing is spotlighting its proactive business continuity strategy Wednesday at the Wall Street Technology Association (WSTA) Conference/Trade Fair. The theme of this year's show, held at New York's Marriott Marquis, is "Security, Business Continuity, and Disaster Recovery." The financial services industry has always made exceptional demands on its telecommunications infrastructure, and its largest members must now comply with recently announced mandates set by the Federal Reserve and Securities and Exchange Commission to recover operations "within the business day on which a disruption occurs, with the overall goal of achieving recovery and resumption within two hours after an event." "Financial companies face the daunting task of ensuring that transactions around the world take place unimpeded by man-made or natural disasters," said Dave Carey, Global Crossing's executive vice-president, enterprise sales. "Our comprehensive program for business continuity, longstanding commitment to the financial industry, and unyielding focus on delivering a superior customer experience make Global Crossing the provider of choice for global financial firms." By some estimates, the average cost of network downtime to a large financial firm is as much as $1.5 million per hour in lost revenue and infrastructure repairs, without factoring in the more intangible, but very real costs associated with poor customer perception in the firm's reliability. Disaster recovery plans providing for minimal service interruption are critical, but are only part of an ongoing business continuity strategy. Customers taking a more proactive approach to keep vital business operations such as sales, production and customer service running in the event of failures and outages benefit from greater success and flexibility in handling unforeseen contingencies. Global Crossing's business continuity program addresses customers' vulnerability by providing service diversity and redundancy, backup and restoration of access to critical voice and data applications, and mobility tools such as remote access. All of these services are provided over Global Crossing's redundant, self-healing global network infrastructure. Global Crossing's business continuity offering includes both service diversity and redundancy tools and disaster recovery tools, including Diversity and Customer-Specified Routing (DACSR), Service Management System (SMS) Emergency Reroute, Fixed Wireless Service, IP VPN Service?, Remote Access Service (RAS), and a full suite of conferencing services. Global 24x7 network and customer service support are provided from network operations centers (NOCs) and call centers worldwide. Managed service capabilities provide turnkey design, procurement, installation, and network monitoring and maintenance support backed by global Service Level Agreements (SLAs). "Building long-term relationships with our customers and providing them with operational excellence is our highest priority, " added Mr. Carey. "We're focused on improved customer satisfaction over our IP-based network." Along with core telecommunications solutions delivered over a global IP network, Global Crossing serves the world's largest financial customers with a targeted offering that includes Trader Voice, the Financial Extranet, and Hoot and Holler Networks. Trading floors rely on "ring-down" connections, private line- based phone links between traders requiring a constantly open, secure voice connection over which to transact at a moment's notice. Global Crossing's trader voice, installed in financial enterprises around the world, is a private line voice service that provides this reliable, desk-to-desk ring-down connection between trading floors. Global Crossing's recently introduced disaster recovery service for trader voice enables customers to rapidly restore their trading lines to one or more pre-determined backup locations in the event of an outage at a primary trading location. Service recovery time is backed by a four-hour maximum SLA with typical recovery times expected to be two hours or less. Please visit Global Crossing services at Booth 7 or visit www.globalcrossing.com. ABOUT GLOBAL CROSSING Global Crossing provides telecommunications solutions over the world's first integrated global IP-based network, which reaches 27 countries and more than 200 major cities around the globe. Global Crossing serves many of the world's largest corporations, providing a full range of managed data and voice products and services. On January 28, 2002, Global Crossing Ltd. and certain of its subsidiaries (excluding Asia Global Crossing and its subsidiaries) commenced Chapter 11 cases in the United States Bankruptcy Court for the Southern District of New York (Bankruptcy Court) and coordinated proceedings in the Supreme Court of Bermuda (Bermuda Court). On the same date, the Bermuda Court granted an order appointing joint provisional liquidators with the power to oversee the continuation and reorganization of the Bermuda-incorporated companies' businesses under the control of their boards of directors and under the supervision of the Bankruptcy Court and the Bermuda Court. Additional Global Crossing subsidiaries commenced Chapter 11 cases on April 23, August 4 and August 30, 2002, with the Bermuda incorporated subsidiaries filing coordinated insolvency proceedings in the Bermuda Court. The administration of all the cases filed subsequent to Global Crossing's initial filing on January 28, 2002 has been consolidated with that of the cases commenced on January 28, 2002. Global Crossing's Plan of Reorganization, which was confirmed by the Bankruptcy Court on December 26, 2002, does not include a capital structure in which existing common or preferred equity will retain any value. On November 18, 2002, Asia Global Crossing Ltd., a majority-owned subsidiary of Global Crossing, and its subsidiary, Asia Global Crossing Development Co., commenced Chapter 11 cases in the United States Bankruptcy Court for the Southern District of New York and coordinated proceedings in the Supreme Court of Bermuda, both of which are separate from the cases of Global Crossing. Asia Global Crossing has announced that no recovery is expected for Asia Global Crossing's shareholders. Asia Netcom, a company organized by China Netcom Corporation (Hong Kong) on behalf of a consortium of investors, has acquired substantially all of Asia Global Crossing's operating subsidiaries except Pacific Crossing Ltd., a majority-owned subsidiary of Asia Global Crossing that filed separate bankruptcy proceedings on July 19, 2002. Global Crossing no longer has control of or effective ownership in any of the assets formerly operated by Asia Global Crossing. Please visit www.globalcrossing.com for more information about Global Crossing. CONTACT: GLOBAL CROSSING Press Contacts Catherine Berthier Phone: +1 212-412-4666 Email: PR@globalcrossing.com Analysts/Investors Contact Ken Simril Phone: + 1 310-385-3838 Email: investors@globalcrossing.com =========== B R A Z I L =========== VARIG/TAM: Expects Operating Profits for 2003 --------------------------------------------- "I can guarantee we will have a positive operating result this year, like we haven't had for ages," Reuters News quoted Carlos Luiz Martins, executive vice president of troubled Brazilian airline Viacao Rio-Grandense (Varig), as saying. Marcelo Ribeiro, an analyst from Pentagono brokerage pointed out that Varig has not made an operating profit in seven years. The same predictions come from fellow cash-strapped airline TAM Linhas Aereas. TAM interim President Luiz Antonio Teixeira de Barros Junior said that the Company would post an annual profit, at least on the operating side. Mr. de Barros said that passenger figures have improved well for this year's second half. The two companies are working on a merger agreement, which would save Varig from closure. The union is slated to create the nation's largest airline. CONTACT: Viacao Aerea Rio Grandense SA Rua 18 Novembro, 800 2 - Andar Navegantes 90240-040 Porto Alegre - RS Brazil Phone: +55 51 358-7039 Fax: +55 51 358-7001 Home Page: http://www.varig.com.br =============== C O L O M B I A =============== AVIANCA: Two Execs Resign Days Ahead of Shareholders' Meeting ------------------------------------------------------------- Two executives at the cash-strapped Colombian airline Avianca have resigned from their posts in line with the Company's ongoing restructuring. Local newspaper El Tiempo relates that Avianca's legal counsel Mr. Vytis Didzulis and Mr. Rodrigo Toro, vice- president of marketing and sales have stepped down from their posts. The resignations came three days before a scheduled extraordinary shareholders' meeting. The Company, which started restructuring after the liquidation of the Aces airline is looking for a business partner. Chile's Lanchile, or a US investment fund have been pegged as candidates. ============= E C U A D O R ============= PETROECUADOR: Insurer Extends Coverage Anew ------------------------------------------- Ecuador state oil company Petroecuador will remain under the coverage of local insurance company Seguros Colonial until the end of November. This is the second time the insurer has agreed to extend the deadline, which, under the original contract, expired last September 27. Seguros Colonial may even extend the deadline until the end of December, Business News Americas reports. The extension, which will cost Petroecuador some US$700,000, gives the Company more time to award new contracts for 2003-2004. Seguros Colonial president Pedro Merlo, however, was disappointed about the extension. "There is no justification for why the authorities have not yet determined the winner (for Petroecuador's insurance contract)," he said. Petroecuador's board has delayed the contract's award as Seguros Colonial's competitor La Union claims that a number of manipulative maneuvers were employed to make the bidding rules favor Colonial. La Union CEO Roberto Goldbaum alleges that barriers have been erected to create a situation where Petroecuador and Seguros current business relationship stays. =========== M E X I C O =========== DESC: Renegotiates Terms of US$700 Million Bank Loans ----------------------------------------------------- Auto parts supplier, Desc S.A., is renegotiating the terms of its US$700 million-debt after posting a higher third-quarter loss, which it blamed on slowing demand, Bloomberg said. The company has already met with creditors in New York and Mexico, with Citigroup Inc., Grupo Financiero BBVA Bancomer S.A. and Inbursa Grupo Financiero SA, controlled by billionaire Carlos Slim, leading the debt talks. It expects these negotiations to conclude a few months from now. According to the company, lower customer demand has pushed the company into the red. Bloomberg said the company's third quarter losses rose to MXN384 million from only MXN179 million last year. Meanwhile, earnings before interest, taxes, depreciation and amortization -- a measure of cash flow known as EBITDA -- dropped 32 percent in dollars to US$45 million during the quarter from US$67 million a year ago. Aside from the drop in demand, the company also blamed the closure of DaimlerChrysler's truck plant near Mexico City last year and higher raw material costs for its chemical products as the other reasons why it has not been able to meet its debt payments. About 70% of the firm's debts are in dollars. Already the company has sold its adhesives and waterproofing units to pay debt as part of an agreement with creditors. GRUPO ELEKTRA: Announces Third Quarter 2003 Results --------------------------------------------------- Grupo Elektra S.A. de C.V. (NYSE:EKT) (BMV: ELEKTRA*), Latin America's leading specialty retailer, consumer finance and banking services company, reported today financial results for the third quarter of 2003. Highlights: ** 3Q03 Retail Sales rose 27% YoY to Ps. 3.6 billion from Ps. 2.9 billion in 3Q02 due to an outstanding performance among all our three store formats: Elektra, Salinas y Rocha and Bodega de Remates, whose sales rose 26%, 21% and 58% year-over-year, respectively. ** Despite a 14% YoY decline in total gross profit, a 26% YoY decline in SG&A expenses resulted in an EBITDA of Ps. 694 million, in line with EBITDA of Ps. 693 million in 3Q02. Pro- forma EBITDA including our net participation in Banco Azteca's results under the equity method rose 7% Ps. 738 million in 3Q03 from Ps. 693 million in 3Q02. ** Banco Azteca's net deposits surpassed Ps. 6 billion, totally funding its Ps. 4.4 billion outstanding gross credit portfolio. Net deposits reported at the end of 3Q03 represent an 84% quarter-over-quarterincrease and more than fourteen times the initial net deposits. ** Net debt declined 69% YoY to Ps. 4.1 billion in 3Q03 from Ps. 5.4 billion in 3Q02. Financial Highlights Ps. Million Change 3Q02 3Q03 $ % Total Revenues (*) 3,740 3,860 119 3.2% Gross Profit (*) 1,685 1,446 (239) (14.2%) EBITDA before Financial Division (**) 693 694 1 0.1% Pro-forma EBITDA after Financial Division (**) 693 738 45 6.5% Net Income (232) 302 534 n.m. EPS (pesos per share) (0.97) 1.26 2.23 n.m. EPS (US$ per ADR) (***) (0.35) 0.46 0.81 n.m. (*) Before Banco Azteca (**) Financial Division = Banco Azteca + Afore Azteca (***) Ps. 11.03 per US$ Javier Sarro, Chief Executive Officer of Grupo Elektra, commented: "Results in our retail division during the third quarter confirmed the success of our merchandising strategy. All our store formats and most product lines in our retail division reported excellent growth. Amidst a still challenging environment for consumption in Mexico, we strengthened our leadership in the specialty retail segment. Furthermore, the turnaround in our operations in Guatemala, Honduras and Peru is remarkable as evidenced by the 54% year-over- year increase in the gross profit of this geographical unit. "The gradual allocation of expenses into the divisions in which they are actually generated continues. This combined with top- line growth and effective cost and expense controls of both divisions, retail and financial, confirm that they are solid, profitable businesses on their own," Mr. Sarro concluded. Carlos Septien, Chief Executive Officer of Banco Azteca, said: "I am very proud to announce that we are already able to completely fund our credit portfolio with net deposits, whose performance is way above initial expectations. This coupled with a healthy growth in our portfolio of consumer and personal loans and adequate cost and expense controls in line with those of Grupo Elektra, have led to a positive trend in profits for Banco Azteca. In order to maintain and increase the pace of this positive trend, we will gradually broaden our current offer of quality financial products and services. "Our net debt declined 69% year-over-year and our financial expenses declined 17% quarter-over-quarter. This is the result of our financial strategy, whose main objectives are to reduce our cost of funds and foreign exchange exposure," stated Rodrigo Pliego, Chief Financial Officer of Grupo Elektra. 3Q03 Financial Highlights: In response to the feedback received from market participants and in order to enhance the transparency of our reports, starting in 4Q02, we are presenting the results of Banco Azteca under the equity participation method. All figures and discussions detailed in this press release result from the application of this accounting method, which provides a clearer overview of the separated results of our retail division and of Banco Azteca. Comments on 3Q03 results: Revenue Total revenue increased 3.2% YoY largely due to a 26.6% YoY increase in revenue of the retail division. Sales growth in this division was the result of excellent performance across all our store formats. Revenue from Elektra, Salinas y Rocha, and Bodega de Remates store formats increased by 25.5%, 21.5% and 58.0%, respectively, on a year-over-year basis. We believe that this positive performance is due to our enhanced merchandising strategy and our focus on productive store formats. However, a 72.3% YoY decrease in revenue of the consumer finance division partially offset the positive performance of the retail division. This was due to the fact that Grupo Elektra, through its Elektrafin subsidiary, ceased to provide consumer credit in Mexico as of December 1, 2002, at which time Banco Azteca began offering consumer loans for customers of Grupo Elektra. Revenues Ps. Million Change 3Q02 3Q03 $ % Total Revenues 3,740 3,860 119 3.2% Retail 2,854 3,614 760 26.6% Consumer Credit (1) 887 246 (641) (72.3%) (1) Includes only Credimax operations. Gross Profit In line with expectations, total gross profit decreased 14.2% YoY, as a 22.8% YoY increase in the gross profit of the retail division was more than offset by a 66.5% YoY decrease in the gross profit of the consumer finance division. This was due to the above-mentioned decline in revenue of this division. Gross margin of the retail division fell 110 basis points from 34.6% in 3Q02 to 33.5% in 3Q03 due to a more competitive pricing structure which is the cornerstone of our enhanced "Nobody Undersells Elektra" merchandising strategy. However, management believes that the increases in volume more than offset the decline in margins as evidenced by the increase in revenue of this division. Gross Profit Ps. Million Change 3Q02 3Q03 $ % Total Gross Profit 1,685 1,446 (239) (14.2%) Retail 987 1,212 225 22.8% Consumer Credit (1) 698 234 (464) (66.5%) (1) Includes only Credimax operations. EBITDA and Operating Profit Despite the decline in total gross profit, a 25.5% YoY decrease in operating expenses resulted in an EBITDA in line with that reported in 3Q02. As planned, we continued with our gradual allocation of operating expenses of Banco Azteca. Furthermore, operating expenses actually originated at the retail division remained under control. Operating profit increased by 6.8% YoY as depreciation and amortization expenses declined 7.1% over the same period. This was due to a 9.3% YoY decline in fixed assets, in turn due to the sale of the day-to-day operating assets to Banco Azteca during 1Q03. EBITDA & Op. Profit Ps. Million Change 3Q02 3Q03 $ % Total EBITDA 693 694 1 0.1% Operating Profit 475 507 33 6.8% Comprehensive Cost of Financing Comprehensive cost of financing decreased 38.2% to Ps. 146.0 million in 3Q03 compared to Ps. 236.2 million in 3Q02. The Ps. 90.2 million YoY decrease in the cost of financing is explained by: -- A Ps. 74.6 million decrease in net interest expense coming from: -- Ps. 55.1 million higher interest income resulting from a 62.5% YoY higher cash balance, and -- Ps. 19.5 million lower interest expenses due to a 24.5% YoY lower debt with cost. -- FX losses of Ps. 64.7 million, 33.4% lower than those reported in 3Q02. -- A monetary gain of Ps. 14.2 million compared to a Ps. 31.0 million gain in 3Q02. Net Profit Our solid operating performance, coupled with the above mentioned decrease in the comprehensive cost of financing, as well as a Ps. 27.3 million gain from our equity participation in Banco Azteca, Comunicaciones Avanzadas and Afore Azteca, led to a net profit of Ps. 301.8 million in 3Q03, compared to a Ps. 232.4 million net loss during 3Q02. Out of the Ps. 27.3 million gain recorded under the equity method, Banco Azteca's profits increased 25.1% QoQ to Ps. 47.3 million, while our participation in the 3Q03 results of CASA and Afore Azteca were losses of Ps. 17.1 million and Ps. 2.9 million, respectively. Net Profit Ps. Million Change 3Q02 3Q03 $ % Total Net Profit (232) 302 534 n.m. EPS ( Peso Per Share )(1) (0.97) 1.26 2.23 n.m. EPS (US$ Per ADR)(1*) (0.35) 0.46 0.81 n.m. (1) Calculation based on 239,301,000 Elektra * (59,825,000 ADR equivalent) weighted average at September 30, 2003 and 239,055,000 Elektra* (59,764,000 ADR equivalent) weighted average outstanding at Sept. 30, 2002. (*)Ps. 11.03 per US$ 1.0 Retail Division During 3Q03 our Elektra, Salinas y Rocha and Bodega de Remates store formats reported YoY revenue increases of 25.5%, 21.5% and 58.0%, respectively. This was largely the result of our more competitive pricing strategy on cash sales, through which we are effectively trying to become the cheapest price in any one region of the country, and the steady growth in consumer loans granted by Banco Azteca to customers of the retail division for credit sales. The turnaround in our Latin American operations (Guatemala, Honduras and Peru) was confirmed by YoY increases of 43% and 54% in revenue and gross profit of this geographical unit. Some of the main highlights for the Retail Division include: Telephones (Wireless Products and Services). During 3Q03 we started to offer Iusacell's wireless products and services in our stores. Through this addition, we effectively became one of the most important distributors in Mexico, offering our customers the broadest range in this important product line, as we also offer wireless products and services of the other three largest wireless companies operating in Mexico (i.e. Telcel, Telefonica Movistar and Unefon). During 3Q03 revenue increased 71% to Ps. 223.8 million from Ps. 130.7 million in 3Q02. Meanwhile, gross profit increased 26.2% to Ps. 40.5 million in 3Q03 from Ps. 32.1 million in 3Q02. Ps. Million Change Wireless Products 3Q02 3Q03 $ % Revenues 130.7 223.8 93.1 71% Gross Profit 32.1 40.5 8.4 26% Western Union. The positive trend experienced in our US-Mexico electronic money transfer business accelerated during 3Q03. This was the result of our successful advertising and promotional campaigns and more competitive commissions charged by Western Union. During the quarter, we transferred the equivalent of Ps. 3.0 billion through 1.2 million transactions, representing YoY increases of 44% and 34%, respectively. These increases resulted in a 36.8% YoY revenue increase to Ps. 115.6 million from Ps. 84.5 million in 3Q02. Over the same period gross profit increased 37.8% to Ps. 114.0 million from Ps. 82.7 million in 3Q02. Ps. Million Change Western Union 3Q02 3Q03 $ % Revenues 84.5 115.6 31.1 37% Gross Profit 82.7 114.0 31.3 38% Dinero Express. During 3Q03 the number of transfers and total amount transferred in our domestic electronic money transfer service increased 37% and 34% YoY to 254,000 and Ps. 969 million, respectively. As a result of these, revenue rose 41% over the same period to Ps. 72 million from Ps. 51 million in 3Q02. 2.0 Banco Azteca Operations Banco Azteca reported its second consecutive profitable quarter. Net profits for 3Q03 were Ps. 47.3 million, representing a 25% QoQ increase from net profits of Ps. 37.8 million in 2Q03. This was largely the result of an extraordinary performance in net deposits, which reached Ps. 6.1 billion and already finance completely a gross credit portfolio of Ps. 4.4 billion. 2.1 Banco Azteca (Consumer and Personal Loans) and Credimax (Consumer Loans) Combined Credit Portfolio The average term of the combined credit portfolio (Banco Azteca + Credimax) at the end of 3Q03 was 50 weeks, representing a one- week increase from both the same-quarter last year and the prior quarter. We continue to offer longer credit terms (e.g. 65 weeks) for specific high-ticket items. This makes financing more attractive for our customers as they are able to meet a lower nominal weekly payment. At the end of 3Q03, we had a combined total of 2.658 million active credit accounts, representing a 25% increase compared to 2.128 million in 3Q02. Combined gross customer accounts receivable increased 21%, reaching Ps. 5.2 billion from Ps. 4.3 billion at the end of 3Q02. Out of these totals, Banco Azteca had almost 2.3 million active credit accounts and a Ps. 4.4 billion- credit portfolio (Ps. 3.9 billion and Ps. 0.5 billion in consumer and personal loans, respectively). The collection rate of Banco Azteca remains at the same excellent historic level maintained by Grupo Elektra. 2.2 Banco Azteca Guardadito Savings Accounts and Inversion Azteca Term Deposits Banco Azteca's net deposits maintained its extraordinary growth pace, reaching Ps. 6.1 billion at the end of 3Q03, representing an 84% QoQ increase from Ps. 3.3 billion at the end of 2Q03 and more than fourteen times the initial deposits with which it initiated operations less than a year ago. Over the quarter, the number of accounts rose by approximately 600,000 to 2.6 million and the average balance per account increased 43% from Ps. 1,619 in 2Q03 to Ps. 2,311 pesos in 3Q03. The average funding mix of Banco Azteca had a 3.6% cost at the end of 3Q03, 10 and 310 basis points below the cost reported at the end of 2Q03 and 1Q03, respectively. 3.0 Balance Sheet Total debt with cost was Ps. 4.1 billion at the end of 3Q03, with 74% of it placed long term, compared with Ps. 5.4 billion for the year-ago period. Cash rose 63% YoY from Ps. 1.8 billion in 3Q02 to Ps. 3.0 billion in 3Q03. As a result of these changes, net debt at the end of 3Q03 was Ps. 1.1 billion, a 69% decrease compared to Ps. 3.6 billion at the end of 3Q02. The above figures reflect the achievement of the objectives set in our financial strategy outlined at the beginning of the year, namely to reduce our exposure to dollar-denominated liabilities and to pay off expensive debt. As used in this press release, EBITDA is operating income (loss) before interest expense, taxes, depreciation and amortization, and adjusted by eliminating monetary (loss) gain included in our revenues and cost, respectively. In accordance with Regulation G, issued by the U.S. Securities and Exchange Commission, reconciliation between net income and EBITDA is provided in the notes provided in our financial statements. EBITDA is presented because of the following reasons: -- Our management uses EBITDA as a measure of performance business allowing us to compare ourselves with our peers' multiples, ratios and margins derived from EBITDA. It also serves to evaluate and compensate certain employees. -- We believe EBITDA is one of the tools that we can use to measure our cash-flow generation, because it excludes some non- cash items as monetary gains or losses, depreciation and amortization, etc. -- EBITDA is also a measure contained in certain financial covenants of our debt, and consequently we are required to calculate it in order to verify compliance with such covenants. -- We are aware that EBITDA has material limitations associated with its use, (i.e., EBITDA, as defined by us, excludes items such as Discontinued operations, and includes the Allowance for doubtful accounts, which contains or does not contain, respectively, portions of cash). However, our management compensates these material limitations with the use of our consolidated financial statements and its notes. -- We believe that EBITDA is used by certain investors as one measure of a company's historical ability to service its debt. EBITDA should not be considered in isolation or as a substitute for the consolidated income statements or the consolidated statements of changes in financial position prepared in accordance with Mexican GAAP (PCGA) or as a measure of profitability or liquidity. EBITDA is not (a) a measure determined under PCGA or U.S. GAAP, (b) an alternative to PCGA or U.S. GAAP operating income (loss) or net income (loss), (c) a measure of liquidity or cash flows as determined under PCGA or U.S. GAAP or (d) a measure provided in order to smooth earnings. EBITDA does not represent discretionary funds. EBITDA, as calculated by us, may not be comparable to similarly titled measures reported by other companies. Grupo Elektra - Tradition with Vision Grupo Elektra is Latin America's leading specialty retailer, consumer finance and banking services company. Grupo Elektra sells retail goods and services through its Elektra, Salinas y Rocha and Bodega de Remates stores and over the Internet. The Group operates almost 900 stores in Mexico, Guatemala, Honduras and Peru. Grupo Elektra also sells and markets its consumer finance and banking products and services through its Banco Azteca branches located within its stores. Financial services include consumer credit, personal loans, money transfers, extended warranties, savings accounts and term deposits. CONTACT: Grupo Elektra, S.A. de C.V. Investor and Press Inquiries: Esteban Galindez, CFA, Director of Finance & IR, Email: egalindez@elektra.com.mx Rolando Villarreal, Investor Relations Email: rvillarreal@elektra.com.mx Samantha Pescador, Investor Relations Email: spescador@elektra.com.mx Phone: +011-52-55-8582-7819 Fax: +011-52-55-8582-7822 GRUPO TMM: To Initiate Arbitration With KCS ------------------------------------------- Grupo TMM, S.A. (NYSE:TMM) and (BMV: TMM A; "TMM"); announced that, as a result of the request from Kansas City Southern (KCS) to a Court in the State of Delaware on September 3, 2003, Chancellor William B. Chandler III granted a preliminary injunction to KCS to require TMM to preserve status quo pending resolution of the arbitration process under the Acquisition Agreement. Chancellor Chandler declined to provide further details and issued a ruling ordering TMM and KCS to initiate and conclude an arbitration process as soon as possible. The company will provide additional information when it is available. Marco Provencio, a TMM spokesman said, "Chancellor Chandler expressed his interest of concluding the arbitration process as soon as possible. We believe it is the right of TMM's shareholders to have the free will to decide on their interests; however, we also understand that the Chancellor preferred not to expand on this issue. The company will provide additional information once the arbitration process has begun." 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 Investor Relations: Brad Skinner Phone: 011-525-55-629-8725 203-247-2420 Email: brad.skinner@tmm.com.mx Proa/StructurA Media Relations: Marco Provencio Phone: 011-525-55-629-8708 011-525-55-442-4948 Email: mp@proa.structura.com.mx DRESNER CORPORATE SERVICES: General Investors, Analysts and Media: Kristine Walczak Phone: 312-726-3600 Email: kwalczak@dresnerco.com PEMEX: Receives US$260 Million for Cuervito Natural Gas Project --------------------------------------------------------------- A consortium that includes Brazil's Petrobras was awarded the second block of a US$10 billion tender to develop natural gas in Mexico's Burgos Basin, Reuters reported late last week. According to Petroleos Mexicanos (Pemex), the consortium -- composed of Petrobras, Japan's Teikoku Oil Co. and Mexico's D&S Petroleum -- submitted a bid worth about US$260 million. The group is the second to land a service contract in the basin after Spanish energy group, Repsol, cornered the Reynosa-Monterrey block for US$2.4 billion barely two weeks ago. The new consortium will develop the Cuervito project, according to Reuters. Together, the two contracts should bring the state oil company about US$500 million in savings, Sergio Guaso, Pemex's head of multiple service contracts, told Reuters. "The savings are good news, but most important for us is the possibility to develop such fields. For Pemex, this is a winning situation," he added. Another block, involving medium-sized Mision project, will be auctioned on October 29, with the winner to be known the following day. "The contracts are seen helping Mexico eliminate the need for costly imports from the United States by developing its own natural gas reserves. They should also help foreign oil firms get a foothold in the state-controlled hydrocarbon industry," Reuters said. ======= P E R U ======= BANCO WIESE SUDAMERIS: Individual Rating Cut to 'D/E' ----------------------------------------------------- Fitch Ratings has affirmed Banco Wiese Sudameris and Subsidiaries' (BWS) long-term foreign currency rating of 'BB-', short-term foreign currency debt rating of 'B', and support rating of '3'. At the same time the Rating Outlook for the Long- term rating was revised from Negative to Stable. Fitch also lowers BWS' individual rating to 'D/E' from 'D'. BWS's long and short-term ratings reflect the bank's strong franchise within the Peruvian banking system and the on-going support the bank has received from its parent, Italy's Banca Intesa (long-term debt rating: 'A+'), in the form of substantial capital injections and management expertise. The affirmation of the support rating expresses Fitch's belief that Banca Intesa is willing and able to continue to provide such support; this support has been evident in the on-going capital commitments BWS received from Banca Intesa in recent years (2000: US$100 million; 2001: US$328 million; 2002: US$ 300 million). While Intesa will have disposed of other Latin American holdings by end-2003, it has stated its intention to repair BWS's balance sheet ahead of any eventual sale. The lower individual rating reflects Fitch's view that BWS will continue to require the support it has been receiving. BWS, unlike its principal local competitors, has been unable to staunch the asset quality deterioration set off by Peru's prolonged economic slump, and this was reflected in a marked increase in past due loans in the first half of 2003, representing a high 16.7% of loans; restructured loans and foreclosed assets also continued to increase and together represented another 10.0% of loans. The bank has stated its intention to continue to boost reserves to cover problem credits and other contingencies, and these additional reserves will be made possible in part by a further capital commitment from Intesa. The effort to continue and complete the undertaking to repair the damage to BWS balance sheet by prolonged asset quality slippage will weigh heavily on BWS' profitability over the balance of 2003 and 2004. While the bank's plans to address the deterioration of its balance sheet are positive and should result in a stronger institution, BWS' capital base will continue to be encumbered by a high level of fixed and intangible assets, and the sustained profitability necessary to rebuild unencumbered capital will take time to achieve. BWS is Peru's third largest commercial bank with deposit and loan market shares of 21% and 16%, respectively, as of end-June 2003. It is the result of the September 1999 merger of Banco Wiese and Banco de Lima-Sudameris. Prior to its acquisition, Banco Wiese had been experiencing severe liquidity problems since the second half of 1998. At end-June 2003, BWS was 97.2% controlled directly and indirectly Banca Intesa, Italy's largest banking group. CONTACT: Ricardo Chaves Phone: +1-212-908-0606 Peter Shaw Phone: +1-212-908-0553 Media Relations: James Jockle Phone: +1-212-908-0547 INTERBANK: Fitch Revises Outlook to Stable After Sovereign Action ----------------------------------------------------------------- Fitch Ratings has revised the Rating Outlook on the long-term foreign currency ratings of Peru's Interbank, currently at the sovereign ceiling of 'BB-', to Stable from Negative. This change follows a similar action taken on the Republic of Peru's ratings supported by the government's capacity to meet its annual government financing requirement under stressful social and political conditions in 2002 and 2003 in addition to Peru's increased flexibility in public financing sources generated by improved access to the domestic debt market. Interbank's ratings have been affirmed as follows: -- Long-term foreign currency, 'BB-'; -- Short-term foreign currency, 'B'; -- Long-term local currency, 'BB-'; -- Individual, 'D'; -- Support, '4'. CONTACT: Fitch Ratings Ricardo Chaves Phone: +1-212-908-0606 Peter Shaw New York Phone: +1-212-908-0553 Media Relations James Jockle, Phone: +1-212-908-0547 ================= V E N E Z U E L A ================= PDVSA: Earmarks US$43 Billion for Exploration, Systems Upgrade -------------------------------------------------------------- In an effort to shore up production to 5 million barrels a day, the state-owned oil monopoly, Petroleos de Venezuela S.A. (PdVSA), will plough US$43 billion into exploration and upgrade of its refining network, Dow Jones says. The company the expenditure will be spread over five years beginning next year and will be partly financed by third parties. Due to a two-month labor strike that ended in February this year, the company has had difficulty keeping its potential output capacity stable. Following the strike, Dow Jones said the company fired half of its 36,000 employees, resulting in a "permanent loss of 400,000 barrels in potential output capacity because of a loss of knowledge, funds and a lack of maintenance works." Of the amount, US$29 billion will be used for exploration. Dow Jones says PdVSA's mature oil fields have an annual depletion rate of around 25%. "The remainder of the... will be used for upgrading the company's vast refining network, which will need an investment of US$3 billion. Another US$7 billion is needed for expansion plans of the four extra-heavy crude projects that are currently pumping 460,000 b/d of upgraded synthetic crude," Dow Jones said. The government will provide 54% of the fund; third parties, 26%; financing, 11%; while the remaining 9% will come from a set of foreign oil companies that operate under strategic associations such as the extra-heavy crude projects in the Orinoco belt. The company bared this plans during a business presentation at an oil conference in Maracaibo. Its five-year budget is expected to be approved at a general assembly in the coming weeks, Dow Jones says. SIDOR: Strike Costs Company $1M per Day, Official Says ------------------------------------------------------ Venezuela's largest steelmaker Siderurgica del Orinoco C.A. is losing $1 million a day due to a slowdown caused by a dispute with its main union, reports Bloomberg News, citing the Company's BoD president Maritza Izaguirre. The dispute has also reduced operations at half the Company's capacity, the official adds. "Steel prices are at their best level in the last three years and we can't take advantage of them," Ms. Izaguirre commented. The steel slab producer is yet to make a profit since it changed ownership in 1997. It has completed at least three restructurings since 2001 when workers walked out for 22 days, which cost the Company some $60 million. This time, the main union representing the Company's workers is in a disagreement with the management as to how much the Company owes the workers in merit bonuses, which is part of a collective contract. The official, however, did not reveal the amount the union is asking, or how much the Company was offering. Bloomberg adds that workers are also complaining of unsafe work conditions at the Company. At least four workers have died in the last 18 months. Ms. Izaguirre, said that the casualties weren't regular employees but subcontractors. Some of the accidents, she said, were due to failure to follow regular procedures, or lack of training. She added that the Company is likely to appeal a court decision that overturned an earlier court ruling that ordered striking workers to return to work. However, she added that the Company will continue talks with unions. "Negotiations are the best way to end this," she adds. Argentina's Siderar, Mexico's Hylsamex, Tubos de Acero de Mexico SA, Brazil's Usinas Siderurgica de Minas Gerais and Venezuela's Siderurgica Venezolana Sivensa SA own 60% of the Company while the Venezuelan government owns the rest. 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., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and Oona G. Oyangoren, Editors. Copyright 2003. All rights reserved. ISSN 1529-2746. 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