/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/031127.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, November 27, 2003, Vol. 4, Issue 235 Headlines A R G E N T I N A ARLON: Court Approves Reorganization Petition ARRIONDAS: Court Orders Bankruptcy CONSTRULEC: Court Orders Bankruptcy EFFASER: Court Declares Company Bankrupt ELECTROMECANICA NOVEL: General Operational Report Due Today EUROMAYOR: Fitch Assigns Default Ratings to Bonds FOCAR POOL: Deadline for General Report Today GRISCAN ILUMINACION: Court Moves Claims Review Deadline GRUPO GALICIA: Strikes Accord to Reschedule Debt Payments HAMBURGO SYSTEM: Claims Verification Period Ends Today INSTITUTO DE CORONEL: Individual Reports Due Today LACT: Initiates Official Reorganization MANURA: Receiver Closes Credit Check in Bankruptcy MULTIMEDICAL: Reorganization Schedule Set NACSA: Court Requires General Report To be Filed Today PETROBRAS ARGENTINA: Reports October 2003 Oil, Gas Production PROSALUD AUSTRAL: Court Assigns Receiver for Reorganization B R A Z I L AHOLD: Wal-Mart's Bompreco Purchase Nears SKY BRASIL: Announces Interactive Shopping Channel Launch C H I L E AES GENER: Details Tender Offers, Consent Solicitations COEUR D'ALENE: Declares Final Redemption Terms on Sr. Notes D O M I N I C A N R E P U B L I C INTERCONTINENTAL DE SEGOROS: Liquidator Makes $5.8M Payout E C U A D O R PETROECUADOR: Proposed 2004 Budget Cut Will Curb Oil Output M E X I C O EMPRESAS ICA: Arbitration Claim Presented by CNC SATMEX: Struggles To Reach Debt Agreement With Creditors N I C A R A G U A INTERNATIONAL THUNDERBIRD: Profitability Returns in 3Q03 T R I N I D A D & T O B A G O BWIA: CAA Disallows C-check Approval V E N E Z U E L A PDVSA: To Pay $245M in Debt By End 2003, $758M in Debt Next Year - - - - - - - - - - ================= A R G E N T I N A ================= ARLON: Court Approves Reorganization Petition --------------------------------------------- Buenos Aires Court No. 22 has granted a motion for "Concurso Preventivo" filed by local company Arlon S.A., relates local news source Infobae. The Company will undergo reorganization with Ms. Graciela Silvia Turco as its receiver. Creditors have until February 13, 2004 to have their claims authenticated by the receiver, who will also prepare the individual reports afterwards. The court requires the receiver to submit these reports on March 26 next year, followed by the general report on May 12. The informative assembly will be held on August 28 next year, Infobae adds. This is one of the last parts of a reorganization process. CONTACT: Graciela Silvia Turco Cochabamba 4272 Buenos Aires ARRIONDAS: Court Orders Bankruptcy ---------------------------------- Court No. 3 of Buenos Aires orders the bankruptcy of local company Arriondas S.R.L., local news source Infobae reports. Clerk No. 6 assists the court on the case. Mr. Santiago Manuel Quiben will oversee the process as the Company's receiver. Creditors are required to have their claims verified by the receiver by February 5 next year. After verifications are closed the receiver will prepare the individual reports, which must be submitted to the court on March 18 next year. The general report, prepared after the individual reports are processed at court, must be submitted on May 6 next year. CONTACT: Arriondas S.R.L. E Bonorino 1250 Buenos Aires Santiago Manuel Quiben Esmeraldo 783 Buenos Aires CONSTRULEC: Court Orders Bankruptcy ----------------------------------- Buenos Aires Court No. 10 declared local company Construlec S.R.L. "Quiebra" - bankrupt, relates argentine news source Infobae. The Company will undergo the bankruptcy process with Mr. Juan Carlos Pitrelli as receiver. The claims verification period expires on March 4 next year. Creditors must present proof of amounts owed to the Company's receiver for verification before the said date. The receiver's duties cover the preparation of the individual and general reports. The Company's assets will be liquidated at the end of the bankruptcy process to reimburse creditors. CONTACT: Construlec S.R.L. Tinogasta 4780 Buenos Aires Juan Carlos Pitrelli Ave de Mayo 1260 Buenos Aires EFFASER: Court Declares Company Bankrupt ---------------------------------------- Judge Ferrario of Buenos Aires Court No. 6 declared local company Effaser S.A. bankrupt. A report from local news portal Infobae indicates that the city's Clerk No. 12, Dr. Piatti assists the court on the case. The court assigned Mr. Luis Benedossi, as receiver for the process. He has instructions to validate creditors' claims until March 12 next year. The receiver's duties also cover the preparation of the individual and general reports. The Company's assets will be liquidated at the end of the bankruptcy process to repay creditors. CONTACT: Effaser S.A. 1st Floor Montevideo 590 Buenos Aires Luis Benedossi 6th Floor, Room E Maipu 812 Buenos Aires ELECTROMECANICA NOVEL: General Operational Report Due Today ----------------------------------------------------------- Today, November 27, is the deadline for the filing of the general report for the bankruptcy of Buenos Aires-based Electromecanica Novel S.R.L., according to a report released earlier by the Troubled Company Reporter - Latin America. The report was prepared by the company's receiver, Mr. Aldo Roberto Markman, after the individual reports were processed at court. The individual reports contain the results of the credit verifications done to determine the nature and amount of the Company's debts. These results will be used as the basis for payments to be made after the Company's assets are liquidated at the end of the process. Buenos Aires' Court No. 19 handles the Company's case. CONTACT: Aldo Roberto Markman Adolfo Alsina 1441 Buenos Aires EUROMAYOR: Fitch Assigns Default Ratings to Bonds ------------------------------------------------- Fitch Argentina Calificadora de Riesgo S.A. assigns default ratings to corporate bonds issued by Euromayor S.A. de Inversiones. The `D(arg)' rating is based on the Company's finances as of the end of July this year. The Comision Nacional de Valores, Argentina's securities regulator, described the affected bonds as "Primera Serie por 10 millones de U$S dentro de un Programa Global". These were classified under "Series and/or Class". The bonds matured in April this year. FOCAR POOL: Deadline for General Report Today --------------------------------------------- Mr. Antonio Florencio Canada, the receiver for San Isidro-based company Focar Pool S.R.L., must submit the general reports for the Company's reorganization today. The receiver was supposed to prepare the report after the individual reports were processed at court. Local news source Boletin Oficial reported that an informative assembly will be held on June 3 next year. This is the next step in the reorganization process. An earlier report by the Troubled Company Reporter - Latin America indicated that Court No. 2 of the province's Civil and Commercial Tribunal issued the bankruptcy order, and designated the Company's receiver. CONTACT: Focar Pool S.L.R. Bernabe Marquez 855 San Isidro GRISCAN ILUMINACION: Court Moves Claims Review Deadline ------------------------------------------------------- The expiry date of the credit verification process for the reorganization of Argentine company Griscan Iluminacion S.H. has been moved to February 10, 2004, relates local news portal Infobae. Buenos Aires Court No. 25, the source adds without revealing the reason behind the change. The Company's receiver, Mr. Raul Bremer, will verify the claims to examine the Company's debts. Results of the verifications will be relayed to the court via the individual and general reports, which are to be prepared by the receiver. Infobae did not mention the filing deadlines for these reports. CONTACT: Raul Bremer Lambare 1140 Buenos Aires GRUPO GALICIA: Strikes Accord to Reschedule Debt Payments --------------------------------------------------------- Banco Galicia S.A., the main banking unit of Argentine financial services company Grupo Financiero Galicia S.A., said it has reached a preliminary agreement with creditors to reschedule payments on US$1.6 billion in debt. Bloomberg reports that the bank, the largest non-government bank in the country, didn't provide details of the accord pending approval from Argentina's central bank. According to spokeswoman Constanza Gorleri, the central bank is expected to rule on the plan by Dec. 5. "We have reached an accord with the steering committee," Gorleri said, adding the committee represents a majority of creditor banks. HAMBURGO SYSTEM: Claims Verification Period Ends Today ------------------------------------------------------ Ms. Silvia Amanda Ferrandina, receiver for Argentine company Hamburgo System S.A., will close the credit verifications for the Company's bankruptcy today. It is the receiver's duty to start preparing the individual reports on the results of the verifications. The Troubled Company Reporter - Latin America earlier revealed that Buenos Aires Court No. 4 and Clerk No. 8 handle the Company's case. Local sources, however, did not indicate the deadlines for the receiver's reports. CONTACT: Silvia Amanda Ferrandina Asuncion 4642 Buenos Aires INSTITUTO DE CORONEL: Individual Reports Due Today -------------------------------------------------- The individual reports for the bankruptcy of Instituto de Coronel Rosales S.A. are due for filing today. The Company's receiver, Mr. Alfredo Horacio Lopez, prepared the reports after verifications were closed earlier this year. Court No. 5 of the Civil and Commercial Tribunal of Bahia Blanca handles the Company's case, the Troubled Company Reporter - Latin America said in an earlier report. The court requires the receiver to file the general report on February 18 next year. Clerk No. 2 works with the court on the case. CONTACT: Instituto de Coronel Rosales S.A. Colon 259 Punta Alta, Bahia Blanca Alfredo Horacio Lopez Alsina 19 Bahia Blanca LACT: Initiates Official Reorganization --------------------------------------- Lact S.A., which is based in Buenos Aires, has started its reorganization with the credit verification process. Creditors must present their claims to the receiver. Ms. Norma Salgado Gomez before February 26, 2004, local news source Infobae relates. The receiver's tasks include the preparation of the individual and general reports, whose filing deadlines were not mentioned. The reorganization will close with the informative assembly on November 10 next year. Court No. 17, under Judge Bavastro handles the Company's case with assistance from Dr. Vanoli, the city's Clerk No. 34. CONTACT: Lact S.A. 6th Floor, Room A Suipacha 376 Buenos Aires Norma Salgado Gomez 5th Floor, Room 503 Viamonte 1546 Buenos Aires MANURA: Receiver Closes Credit Check in Bankruptcy -------------------------------------------------- Mauricio Mudric, receiver for Manura S.A. will close the credit verification process for the Company's bankruptcy today. With instructions from Buenos Aires Court No. 2, the receiver will prepare the individual reports on the results of the verifications. The receiver is also required to prepare a general report after the individual reports are processed at court. Local sources, however, did not mention whether the court has set the deadlines for these reports. The Troubled Company Reporter - Latin America earlier reported that Judge Garibotto, who handles the case, approved a petition for the Company's bankruptcy filed by its creditor, HSBC Bank Argentina S.A. for nonpayment of debt. Clerk No. 4, Dr. Romero, assists the court on the case. CONTACT: Manura S.A. 1st Floor, Room 6 Esmeralda 977 Buenos Aires Mauricio Mudric 5th Floor, Room N Tucuman 843 MULTIMEDICAL: Reorganization Schedule Set ----------------------------------------- The schedule for the reorganization process of Buenos Aires-based company Multimedical S.A. is set. After closing credit verifications on February 9 next year, the Company's receiver, Ms. Edit Ghiglione, will prepare the individual reports, which are due for filing on March 22, 2004. The receiver will also prepare a general report, to be filed on May 6, after the individual reports are processed at Buenos Aires Court No. 5, which handles the Company's case. Clerk No. 10 aids the court on the case, local news source Infobae relates. The court set the informative assembly to be held on November 3 next year. This signals the close of the reorganization process. CONTACT: Edit Ghiglione Paraguay 1225 Buenos Aires NACSA: Court Requires General Report To be Filed Today ------------------------------------------------------ The Civil and Commercial Tribunal of Chaco in Argentina requires the receiver for local company Nacsa S.R.L. to file the general report today, the Troubled Company Reporter - Latin America reported earlier. The report, which is in connection with the Company's bankruptcy, was to be prepared after the individual reports, also prepared by the same receiver, were processed at court. Ms. Rosa Itati Dri, the designated receiver also verified creditors' claims to ascertain the nature and amount of the Company's debts. Results of the verification process will be used as basis for payments to be made after the Company's assets are liquidated. CONTACT: Nacsa S.R.L. Monte Alto 223 Chaco Rosa Itati Dri Entre Rios 338 Chaco PETROBRAS ARGENTINA: Reports October 2003 Oil, Gas Production ------------------------------------------------------------- Petrobras Energ�a Participaciones S.A. (Buenos Aires: PBE, NYSE:PZE), controlling company with a 98.21% stake in Petrobras Energ�a S.A. (Buenos Aires: PESA), announced Petrobras Energ�a S.A.'s oil and gas average production for October 2003. Oil & Gas Average Production (*) (thousands of boe/day) Oct03 - Oil Argentina 60,2 - Oil Venezuela 45,1 - Oil Per� 11,3 - Oil Bolivia 1,3 - Oil Ecuador 5,5 Total Oil Production 123,4 - Gas Argentina 38,4 - Gas Venezuela 3,7 - Gas Per� 1,6 - Gas Bolivia 6,6 Total Gas Production 50,3 Total Oil & Gas Production 173,7 (*) Includes consolidated & nonconsolidated operations PROSALUD AUSTRAL: Court Assigns Receiver for Reorganization ----------------------------------------------------------- Court No. 2 of the Civil and Commercial Tribunal of Chubut in Argentina assigned Ms. Marcela Alejandra Andrade as receiver for the reorganization of local company Prosalud Austral S.A., relates Infobae. The receiver is in charge of verifying creditors' claims and preparing the individual and general reports. The individual reports, which contain the results of the verification process, are due for filing on December 16, followed by the general report on March 2 next year. The informative assembly will be held on August 18, 2004. CONTACT: Marcela Alejandra Andrade Alem 267 Comodoro Rivadavia Chubut =========== B R A Z I L =========== AHOLD: Wal-Mart's Bompreco Purchase Nears ----------------------------------------- Wal-Mart Stores Inc., the world's biggest retailer, is a step closer to buying Bompreco, Brazil's third-biggest retailer, from Dutch company Ahold. In fact, a source close to the deal told Reuters on Tuesday that Wal-Mart "has already chosen the executives that should work in Bompreco... in the first two weeks of December." What's holding off the deal is a court injunction, which is blocking Ahold from also selling its smaller G. Barbosa Comercial supermarket chain to Wal-Mart, on antitrust grounds, the source said. Bompreco Supermercados do Nordeste, which includes credit card business HiperCard, is based in the capital of the state of Pernambuco and is considered the jewel in the sale. The smaller G. Barbosa is based in the capital of the state of Sergipe. The two dominate retailers in Brazil's northeast. Antonio Joao Rocha Messias, the Sergipe state prosecutor, told Reuters that the heads of Wal-Mart and Ahold in Brazil had visited the state governor Joao Alves Filho last Friday to discuss the injunction. "Joao Alves kept his position that the two companies could not be sold together," he said. Analysts estimate that a fair price for the assets would be between 30-40% of their 2002 net revenue. That would mean a price tag of up to BRL1.1 billion (US$375 million) for Bompreco and BRL281 million for G. Barbosa. Ahold is selling its Brazilian assets as part of a wider exit from South America to help pay off hefty debts after an accounting scandal. SKY BRASIL: Announces Interactive Shopping Channel Launch --------------------------------------------------------- SKY Brasil, the largest digital pay-TV operator in South America is launching an interactive shopping channel with Shoptime, the largest shopping channel in Brazil, using NDS iVideoguard to secure all of the transactions. NDS, a News Corporation company, is a leading provider of technology solutions for digital pay-TV. "This exciting pioneering launch will herald a number of firsts for SKY Brasil. All of the application was developed in Brazil, it's the first interactive TV shopping in Brazil and the first launch of a secure return path using NDS CoreT middleware," says Ricardo Miranda, CEO, SKY Brasil. The partnership between SKY Brasil and Shoptime will enable SKY viewers to choose and purchase from more than 3,000 products from the comfort of their armchair. The buying process will be easy and convenient using the SKY remote control. Credit card payments will be secured with the most advanced technology supplied by NDS iVideoguard. "iVideoguard is based on the NDS Videoguard conditional access system and brings a new level of content protection and business opportunities to interactive TV", says Yacov Sopher, NDS Director of SKY Latin America projects. "By implementing iVideoguard SKY Brasil can now use new features such as secure return path, profiling and targeting, secure store and forward and secure application download". This latest announcement further strengthens NDS's ongoing relationship with SKY Brasil. In October 2003 SKY Brasil chose the innovative NDS XTVT personal video recorder solution as the best new offering for its subscribers. About SKY Brasil SKY Brasil is the largest operator of digital subscription TV in South America. The company was launched in 1996 by the media groups Organizacoes Globo, News Corporation and Liberty Media Corporation. SKY Brasil today has more than 770,000 subscribers, representing 22% of the total subscription TV market in Brazil. It is the only satellite operator whose services are available throughout the country with digital quality sound and pictures. About NDS NDS Group plc (NASDAQ/Euronext Brussels:NNDS) is a leading supplier of open end-to-end digital pay TV solutions for the secure delivery of entertainment and information to television set-top boxes and IP devices. See www.nds.com for more information about NDS. ========= C H I L E ========= AES GENER: Details Tender Offers, Consent Solicitations ------------------------------------------------------- AES Gener S.A. (the "Company") announced separate cash tender offers (collectively, the "Tender Offers") for any and all of the (i) $73.9 million aggregate principal amount of its 6% U.S. Senior Convertible Notes due 2005 (CUSIP No. 368731AA3 and ISIN No. US368731AA39) (the "U.S. Convertible Notes"), (ii) $402.7 million aggregate principal amount of its 6% Chilean Convertible Bonds due 2005 (the "Chilean Bonds") and (iii) $200 million aggregate principal amount of its 6�% Notes due 2006 (CUSIP No. 168894AA1 and ISIN No. US168894AA10) (the "Yankee Notes"). The purchase price to be paid for each $1,000 principal amount of U.S. Convertible Notes validly tendered will be $1,035, and the purchase price to be paid for each $1,000 principal amount of Yankee Notes validly tendered will be $985, plus, in each case, accrued and unpaid interest. The purchase price to be paid for each Chilean Bond validly tendered will be 104.72% of par value (the equivalent of $105 for each $100 principal amount, plus accrued and unpaid interest). The purchase price to holders of the Chilean Bonds will be paid in Chilean pesos using the d�lar observado exchange rate published in the Diario Oficial on December 19, 2003. In connection with the offers for the U.S. Convertible Notes and the Yankee Notes, the Company is soliciting consents to eliminate certain covenants and other provisions contained in the indentures governing the U.S. Convertible Notes and the Yankee Notes, respectively. In addition, a proposal to authorize Banco de Chile, the Chilean trustee, to execute with the Company an amendment to the indenture governing the Chilean Bonds to remove certain events of default and other provisions will be considered and voted on at a duly convened meeting of bondholders to be held on December 5, 2003. The Company is offering to make a consent payment of $15 per $1,000 principal amount of the U.S. Convertible Notes and the Yankee Notes, to holders who validly tender their notes and deliver their consents at or prior to 5:00 p.m., New York City time, on December 5, 2003, unless extended pursuant to the terms of each respective offer (the "Consent Date"). Each of the holders of the U.S. Convertible Notes and the Yankee Notes may not tender their notes without delivering consents or deliver consents without tendering their notes The offers for the U.S. Convertible Notes and the Yankee Notes are scheduled to expire at 12:00 midnight, New York City time, on December 22, 2003, unless extended or earlier terminated pursuant to the terms of each respective offer. However, no consent payments will be made in respect of U.S. Convertible Notes or Yankee Notes tendered after the Consent Date. Each of the offers for the U.S. Convertible Notes and the Yankee Notes provide that tendered notes may not be withdrawn and consents may not be revoked after the Consent Date, except in limited circumstances. The offer for the Chilean Bonds is scheduled to expire at 2:00 p.m., Santiago time, on December 18, 2003, unless extended or earlier terminated pursuant to the terms of such offer. Each of the offers for the U.S. Convertible Notes and Chilean Bonds are subject to, among other conditions, the holders of two-thirds in aggregate principal amount of such notes, respectively, tendering their notes and, in the case of the U.S. Convertible Notes, delivering their consents or, in the case of the Chilean Bonds, approving the proposed amendment to the indenture governing such notes. The offer for the Yankee Notes is subject to, among other conditions, the holders of a majority in aggregate principal amount tendering their notes and delivering their consents. The terms of the offers for the U.S. Convertible Notes and the Yankee Notes are described in separate Offers to Purchase and Consent Solicitation Statements, each dated November 24, 2003. The terms of the offer for the Chilean Bonds will be described in an advertisement that will be published in Chile in El Mercurio on November 25, 2003 and the offer for the Chilean bonds will be made only by such advertisement. The Company has retained Deutsche Bank Securities Inc. and its affiliates to act as the exclusive Dealer Manager in connection with the Tender Offers and as Solicitation Agent in connection with the consent solicitation. Questions concerning the terms of the offers for the U.S. Convertible Notes and the Yankee Notes (collectively "U.S. Tender Offers") and the consent solicitation for the U.S. Convertible Notes and the Yankee Notes (collectively "U.S. Consent Solicitation") may be directed to Deutsche Bank Securities, attention: Jenny Lie, at (866) 627-0391 (US toll- free) or (212) 250-7445 (collect). Deutsche Securities Corredores de Bolsa Limitada will act as the Administrator in connection with the tender offer of the Chilean Bonds. Questions concerning the terms and procedures of the tender offer of the Chilean Bonds may be directed to the Administrator at (562) 337-7700. The Company has engaged D.F. King & Co., Inc. to act as the Information Agent in connection with the U.S. Tender Offers and the U.S. Consent Solicitation. Documents may be obtained by contacting the Information Agent at (888) 644-5854 (US toll free) or (212) 269-5550 (collect). Deutsche Bank Trust Company Americas is the Tender Agent in connection with the U.S. Tender Offers and the U.S. Consent Solicitation. This announcement is not an offer to purchase, a solicitation of an offer to purchase or a solicitation of consent with respect to any securities. CONTACT: Daniel Aninat, AES Gener S.A.; (562) 686-8938 Vanessa Thiers, AES Gener S.A.; (562) 686-8948 COEUR D'ALENE: Declares Final Redemption Terms on Sr. Notes ----------------------------------------------------------- Coeur d'Alene Mines Corporation (NYSE: CDE), the world's largest primary silver producer, announced Tuesday the redemption of the remaining outstanding $4.6 million principal amount of the Company's 9% Senior Convertible Notes due February 26, 2007. The notes are being redeemed, in accordance with the terms of the indenture, in exchange for a cash payment of approximately $13,490,000 representing payment for the market value of the note, including accrued interest and make-whole interest. The transaction is being funded from the proceeds of a common stock sale. The Company has filed a prospectus supplement with the Securities and Exchange Commission related to the public offering of 3,149,225 shares of its common stock. "Coeur is pleased to announce the complete redemption of the Company's outstanding 9% Senior Convertible Notes," said Dennis E. Wheeler, Chairman and Chief Executive Officer. "The timing of these transactions is beneficial to our shareholders since the shares Coeur is issuing now to fund the redemption are approximately 3% fewer shares, based on current market value, than if the convertible notes had been held to full maturity." Coeur d'Alene Mines Corporation is the world's largest primary silver producer, as well as a significant, low-cost producer of gold, with anticipated 2003 production of 14.6 million ounces of silver and 112,000 ounces of gold. The Company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile and Bolivia. CONTACT: Tony Ebersole, Director of Investor Relations Phone: 800-523-1535 =================================== D O M I N I C A N R E P U B L I C =================================== INTERCONTINENTAL DE SEGOROS: Liquidator Makes $5.8M Payout ---------------------------------------------------------- Dominican Republic's insurance regulator, acting as official liquidator of Intercontinental de Seguros, paid out US$5.8 million to affiliates of the defunct local insurance unit. Citing a statement from the regulator, Business News Americas reports that the regulator made the payments in compliance with agreements held by the insurer prior to its closure last June. In June, the regulator passed a resolution confirming the closure of Intercontinental de Seguros and further confirming its position as official liquidator. The supervisory body intervened the ailing insurer to protect its reserves, claims payment and the rights of policyholders, with Intercontinental's assets placed under the direct management of the insurance watchdog. The intervention came after the financial controversy surrounding the insurer's parent company, media and insurance conglomerate Grupo Intercontinental, and sister company, local bank BanInter (Banco Intercontinental), was deemed to have gravely hindered Intercontinental de Seguros's future operations. ============= E C U A D O R ============= PETROECUADOR: Proposed 2004 Budget Cut Will Curb Oil Output ----------------------------------------------------------- A proposal by Ecuador's lawmakers to reduce Petroecuador's 2004 budget by US$51 million has spurred apprehensions from the state- run oil company, reports Dow Jones. "The situation is serious. The cuts that Congress is requesting could only be made in the areas of operation and maintenance or materials and supplies, and that would imply a reduction in projected output," Edgar Jacome, head of Petroecuador's economic and finance department, told reporters. In an effort to narrow a fiscal gap in the 2004 budget, Congress' fiscal commission proposed last week that Petroecuador's spending plans be cut to US$1.424 billion from US$1.506 billion. Petroecuador is expected to spend around $1.48 billion this year. Jacome said the budget cut would paralyze efforts to rehabilitate oil wells, stall drilling contracts and hit other parts of the Company's operations, making it impossible to reach the output target goal of 73.4 million barrels included in the 2004 budget. Already, Petroecuador is forecasting a deficit of US$115 million next year, not including the proposed cuts. =========== M E X I C O =========== EMPRESAS ICA: Arbitration Claim Presented by CNC ------------------------------------------------ Empresas ICA Sociedad Controladora, S.A. de C.V. (BMV and NYSE: ICA), the largest engineering, construction, and procurement company in Mexico, announced Monday that it has been notified of an arbitration claim initiated by Compan_ia de Nitr�geno de Cantarell, S.A. de C.V. (CNC) against ICA and its partners in connection with the nitrogen production facility constructed for the Cantarell oil fields. Arbitration proceedings have been initiated in New York against ICA; the joint venture between ICA Fluor Daniel and Linde A.G.; ICA Fluor Daniel, S. de R.L. de C.V., the Mexican joint venture between ICA and Fluor Corporation; Fluor Corporation, Linde L.P.M. and Linde A.G. CNC alleges defects in the design, construction, and operation of the Cantarell nitrogen production facility, which allegedly resulted in damages to CNC. CNC's claims total approximately US$ 76.5 million, including approximately US$ 39.3 million in consequential damages. The construction consortium for the Cantarell nitrogen plant, which was completed and delivered to CNC in 2000, was comprised of ICA Fluor 10%, Linde A.G. 10%, BOC Gases 30%, Marubeni Corporation 30%, and Westcoast 20%. ICA/Fluor Daniel and Linde A.G. were responsible for engineering and construction of the facility and BOC Gases and Westcoast contributed to the project design and are responsible for operating the facility. The construction contract included performance guarantees from ICA and Fluor Corporation regarding the work being carried out by ICA Fluor Daniel. The original amount of the construction contract was US$ 737.5 million, which was later increased to approximately US$ 779 million. ICA Fluor Daniel executed approximately 80 % of the contract value. The plant started operations in 2000. ICA Fluor Daniel and Linde A.G. believe CNC owes the construction consortium between US$ 6 and 7 million in bonus payments for having completed the construction of the nitrogen plant ahead of schedule, change orders, back payments and interest. The arbitration claim is currently being reviewed by ICA, its counsel and the other parties involved in the arbitration proceedings. ICA believes that it has meritorious defenses against CNC's claims and that the outcome of the arbitration is not expected to have a material adverse effect on ICA. SATMEX: Struggles To Reach Debt Agreement With Creditors -------------------------------------------------------- Satellite manufacturer Satmex will continue to negotiate with a committee of bondholders this week in hopes of convincing them to accept the Company's proposal to restructure its debts, reports El Universal. This, after talks between Satmex top executives Sergio Autrey and Lauro Gonzalez and the creditors committee, who represent 70% of the holders of US$320 million in bonds, ended without an accord. According to the report, Satmex has proposed various combinations of terms, capitalization amounts and increased rates. However, the creditors have yet to agree to any of the offers. If the concerned parties cannot reach an agreement by the end of this year, company officials say they will likely solicit reorganization under bankruptcy laws in either Mexico or the United States, or possibly both. At any time during the restructuring negotiations, any of the creditors could walk out and solicit advanced payment of the notes - an act that would almost certainly force the company into bankruptcy proceedings. "It is important to note that even if Satmex solicits bankruptcy protection, it does not mean that it is broke, but rather is entering a restructuring process," said a source at the company. ================= N I C A R A G U A ================= INTERNATIONAL THUNDERBIRD: Profitability Returns in 3Q03 -------------------------------------------------------- International Thunderbird Gaming Corporation (CNQ - ITGC.U) announces its financial results for the third quarter ended September 30, 2003. Revenues from continuing operations for the third quarter of 2003 were US$5.4 million, an increase of 28% over 2002 revenues from continuing operations of US$4.3 million for the same period. Net income for the period was US$704 thousand compared to a loss of US$63 thousand in 2002 for the same period. The income for the current period stems from ongoing continuing operations but also benefited from inclusion of six months of income from the 21% ownership in the Nicaragua operations. The earnings per share were US$0.03 in Q3 2003 compared to US$nil per share for the same period in 2002. The Company achieved EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of US$1.7 million compared to US$781 thousand for the same period in 2002. The Company's working capital deficiency continues to improve, as the working capital deficiency decreased from US$2.8 million at December 31, 2002 to US$883 thousand at September 30, 2003. In Panama, 2003 revenues for casinos with comparable 2002 results posted a 26% increase for the quarter compared to the same period last year. The Company's "flagship" operation, the Fiesta Casino- El Panama Hotel has made the most dramatic move in revenue improving by 51% for the same period last year. The Chitre and Decameron casinos collectively accounted for an additional US$800 thousand in revenues to the Panama operations for the quarter in 2003. These casinos did not exist in the third quarter of 2002. In Guatemala, the Company is reflecting its second full quarter under the terms of the new agreement with ILAC. The resulting impact helped make for an 18% increase in gross profit for the 2003 third quarter over the same period in 2002. The operations posted a 3% growth in revenues for the third quarter 2003 compared to the same period in 2002. Fifteen of a projected total of forty additional video lottery machines were placed in operation during the third quarter of 2003, bringing the total machines in use to 270. The regulatory environment has improved in Guatemala and the Company foresees an expansion of operations in Guatemala in 2004. In Nicaragua, the Company enjoyed its second full quarter under the merged operation with the Pharaoh's Casino. Revenues of US$2.1 million for the quarter exceeded expectations. The Company uses the equity method of accounting to record its investment in Nicaragua. The Company elected to defer to the 2003 third quarter the recording of the 2003 Q2 results of the merged operations, pending approval of closing transactions by local regulatory authorities. The third quarter reflects the Company's share of Nicaragua's results from April to September 2003. In Venezuela, the foreign exchange rate is still held at 1600 Bolivars to US$1 US dollar. Revenues, in the local currency, for the quarter grew 44% over the comparable period in 2002. The entity posted a US$102 thousand gain for the quarter, excluding the impact of extraordinary adjustments. The operations reported a net loss of US$630 thousand for the nine months ended September 30, 2003. The Company has not recognized a year to date equity loss due to the "write-down" of its investment in Q4 of 2002. In Costa Rica, the Company succeeded in its legal challenge to collect its US$677,000 account receivables stemming from past activity. The Company intends to develop several new facilities and purchase existing licenses in 2004 in Costa Rica. It has entered into a 50/50 partnership with local investors wherein it will develop several new operations. The Company is in final documentation for the development of an existing Casino license at an airport hotel. A negotiated 20-year lease allows the Company to build its first signature property in San Jose. Permitting and construction for the facility are expected to take approximately one year. The Company has obtained a lease, license and begun to operate a casino at the Presidente Hotel in downtown San Jose. The operation has 28 table positions and 69 slots for 97 gaming positions and is operating within budget. The Costa Rica market will be a primary focus of development for the Company during 2004. The Company's development efforts in Chile are advancing. While the Chilean legislature is still working on the legislation that will expand the number of licenses in this market, the draft bill has now been approved by the Chamber of Deputies and has already passed through the first Senate Committee. Meanwhile, Thunderbird is negotiating and entering into agreements with strategic partners on a market-by-market basis. The Company's Chilean subsidiary has recently signed a joint development agreement with the non-profit FIMAULE, the owner and operator of important fair grounds and an event center in Talca, the capital of Chile's 7th region. Similar agreements are under negotiation in several other markets. In its current form, the law allows between 8 and 18 new Casinos to be built in the areas not currently serviced by the existing 7 casinos in the country. The Company continues to pursue US$5 million of debt financing for new gaming opportunities in Costa Rica and Venezuela. MRG Entertainment contributed to this effort by providing in November 2003 US$800,000 of funding that is included within the balance of debt owed to MRG as part of a Fully Restated Loan Agreement, bringing the debt owed to MRG Entertainment to US$3.3 million. MRG's 2,345,000 warrants, which were set to expire in December 2006, are now expiring in December 2008 to match the restated loan pay-off date. The Company is pleased that MRG Entertainment continues to provide valuable financial support. The Company and MRG Entertainment may but are not obligated to increase the US$3.3 million loan balance to US$8 million depending upon the Company's future project development efforts. The Company is pleased with the Canadian Trading and Quotation System, Inc.'s (CNQ) continued progress. The CNQ has created an innovative stock market that matches enhanced disclosure, market making and streamlined regulation with leading edge trading technology to meet the needs of Canadian companies. Combined with comprehensive regulatory oversight, this provides an efficient new equity market that fosters integrity, transparency and liquidity for investors, issuers, and investment dealers. The CNQ recently filed an application to the Ontario Securities Commission to become a stock exchange. Shareholders should refer to the CNQ web page (www.cnq.ca) for information including a listing of dealers that currently trade the company's shares. International Thunderbird Gaming Corporation is an owner and manager of international gaming facilities. Additional information about the Company is available on its World Wide Web site at www.thunderbirdgaming.com. ================================= T R I N I D A D & T O B A G O ================================= BWIA: CAA Disallows C-check Approval ------------------------------------ Clint Williams, BWIA's spokesman, confirmed Monday that the airline no longer has Civil Aviation Authority (CAA) approval to carry out annual major inspections of its aircraft, reports the Trinidad Guardian. The heavy maintenance inspections or C-checks certify an aircraft as being safe to fly. However, Williams said Bee-Wee's fleet is still maintained daily by its remaining engineers and maintenance staff employed by the UK-based company, Staff Hire. "BWIA's safety standards continue to pass every inspection with flying colours," Williams said. The Trinidad Guardian reported Monday that the CAA has removed its approval for BWIA to conduct C-checks because, according to a CAA senior official, BWIA simply no longer has the staff to do the job. In the meantime, the Aviation, Communication and Allied Workers Union has said the US Federal Aviation Administration (FAA) may revoke its repair station approval to T&T, because of BWIA's reduced maintenance staff. "I wouldn't be in a position to speculate about that," Williams said. Contacted Monday, an official from the FAA's Repair Station and Certification Administration Department in Washington, DC, said he was unaware of any such plans by the FAA. "If it involves anything internationally, we would know about it here," the FAA official said. ================= V E N E Z U E L A ================= PDVSA: To Pay $245M in Debt By End 2003, $758M in Debt Next Year ---------------------------------------------------------------- An official at one of the subsidiaries of Venezuela's state oil company PDVSA revealed that PDVSA will pay US$245 million in debt by year-end and US$758 million in 2004, relates Business News Americas. Jose Gregorio Morales, CEO of financial operations subsidiary PDVSA Finance, who made the announcement at a business round in the US, further said that to date the Company had paid some US$2 billion of debt, of which US$1.8 billion was for amortization. The amortization profile and debt balance projection shows that the Company has a good ability to obtain finance, according to Morales. *********** 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. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is $575 per half-year, delivered via e-mail. 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