/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/031204.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, December 4, 2003, Vol. 4, Issue 240 Headlines A R G E N T I N A BIOGEL: Court Orders Bankruptcy BRALO ARGENTINA: Receiver Assigned to Oversee Bankruptcy Process CAFRE: Court Approves Creditor's Motion for Bankruptcy COMERCIAL ZOMA: Individual Reports Due Today CP DE DIAGNOSTICO: Declared Bankrupt by Court DIPERFIL: Receiver to Verify Claims Until February 12 DISCO: Court Orders General Restrictions On Assets GEJAMAS: General Report Filing Deadline Today HOLACINE: Seeks Court Permission to Reorganize INSTITUTO CAIP: Court Sets Schedule for Reorganization LA BOTICA: Court Declares Company "Quiebra" LAKANT: Accountant Marcelo Edgardo Mirasso Acts as Receiver METCASA-METALURGICA: Receiver Closes Credit Verifications METROVIAS: Narrows Net Loss in the First 9 Mos. of 2003 PAPELERA SUR: Creditor's Bankruptcy Petition Gets Court's Nod PESQUERA SANTA MARIA: Court Approves Reorganization Petition ZUZEPAR: Enters Bankruptcy on Court Orders B E R M U D A CRP: AM Best Changes Parent's Under Review Status to Developing CRP: S&P Raises SCOR's long-term ratings to 'BBB+' B R A Z I L AES CORP.: BNDES Threatens to Lodge Legal Proceedings CEMIG: Board Approves Payment of Interest on Capital GERDAU: Acquires Margusa for US$ 18 Million VESPER: QUALCOMM Announces Closing of Sale C H I L E ENERSIS: Reveals US$600M Investment Plan For Next Year J A M A I C A AUSJAM: Management Decides on Closure, Lays off 18 Workers JUTC: Has Until Wednesday To Present Retro Payment Proposal M E X I C O ALESTRA: Narrows Net Loss in the First Nine Months of 2003 CYDSA: Struggles To Refinance Debt P E R U *World Bank Approves $150M Loan To Peru V E N E Z U E L A CANTV: To Make Dividend Payment on Dec. 19 *********** ================= A R G E N T I N A ================= BIOGEL: Court Orders Bankruptcy ------------------------------- Argentine company Biogel S.A. entered bankruptcy on orders from Buenos Aires Court No. 11. Clerk No. 21 assists the court on the case, which is likely to result in the liquidation of the Company's assets. Infobae relates that the receiver assigned to the case, Carlos Eduardo Foresti, is instructed to verify creditors' claims to determine the nature and amount of the Company's debts. Verifications will be closed on February 16 next year. The court ordered the receiver to submit the individual reports on February 16, 2004. These reports are prepared after verifications are completed. The receiver will prepare the general report, due on May 10, after the individual reports are processed at court. CONTACT: Carlos Eduardo Foresti Ave Callao 449 Buenos Aires BRALO ARGENTINA: Receiver Assigned to Oversee Bankruptcy Process ---------------------------------------------------------------- Court No. 12 of Buenos Aires assigns local accountant Juan Jose Castronuovo as receiver for the bankruptcy of Bralo Argentina S.A., relates Infobae. The receiver will authenticate creditors' claims until February 19 next year. The individual reports, which are prepared after verifications are closed, are to be filed at the court on April 1 followed by the general report on May 13. The preparation of these reports is part of the receiver's duties. The Company's assets are to be liquidated at the end of the bankruptcy process to reimburse creditors. Distribution of payments will be determined from the results of the verification process. CONTACT: Juan Jose Castronuovo President Peron 1509 Buenos Aires CAFRE: Court Approves Creditor's Motion for Bankruptcy ------------------------------------------------------ Judge Ottolenghi of Buenos Aires Court No. 4 approved a petition for the bankruptcy of local company Cafre S.A. filed by its creditor for nonpayment of debt. Working with Clerk No. 7, Dr. Juarez, the court assigned Mr. Nestor Monti as the Company's receiver. Creditors must present their claims to the receiver for authentication before February 23 next year. Verifications are done to determine the nature and amount of the Company's debts. The receiver will also prepare the individual and general reports, whose deadlines where not revealed in the Infobae report. CONTACT: Cafre S.A. 8th Floor Carlos Pellegrini 675 Buenos Aires Nestor Monti 7th Floor Ave del Libertador 10778 Buenos Aires COMERCIAL ZOMA: Individual Reports Due Today -------------------------------------------- Ms. Ana Maria Calzada Percivale, receiver for Buenos Aires company Comercial Zoma S.A., is required to file the individual reports on the Company's bankruptcy today. These reports were prepared upon completion of the credit verification process earlier this year. Buenos Aires' Court No. 22, which handles the Company's case, ordered the receiver to prepare a general report to be submitted on February 10 next year. The court has also set the informative assembly date on April 7, 2004, the Troubled Company Reporter - Latin America earlier reported. CONTACT: Ana Maria Calzada Percivale Ave. San Martin 2805 Buenos Aires CP DE DIAGNOSTICO: Declared Bankrupt by Court --------------------------------------------- Court No. 14 of the Civil and Commercial Tribunal of Lomas de Zamora of Argentina declared local company Clinica Privada de Diagnostico las Flores S.A. "Quiebra", placing the Company under bankruptcy protection. The Company's assets face liquidation at the end of the process to reimburse creditors. Proofs of claims must present their claims to the receiver, Mr. Julio Benjamin Alvarez, for verification before December 18 this year. The individual reports are due for filing on March 3, 2004 followed by the general report on April 19. CONTACT: Clinica Privada de Diagnostico las Flores S.A. Las Flores 455 Wilde, Lomas de Zamora Julio Benjamin Alvarez Espana 266 Banfiled, Lomas de Zamora DIPERFIL: Receiver to Verify Claims Until February 12 ----------------------------------------------------- Mr. Marcos Enrique Gonzalez, receiver for bankrupt Argentine company Diperfil SRL, will verify creditors' claims until February 12, 2004. This part of the bankruptcy process is done to ascertain the nature and amount of the Company's debts as well as the authenticity of creditors' claims. Buenos Aires Court No. 25, which handles the Company's case, requires the receiver to file the individual reports on March 24, 2004, followed by the general report on May 10. The Company's assets will be liquidated at the end of the process. Proceeds will go to payments to creditors, based on the results of the verification process. CONTACT: Marcos Enrique Gonzalez Lavalle 1537 Buenos Aires DISCO: Court Orders General Restrictions On Assets -------------------------------------------------- Disco, the troubled Argentine unit of Dutch supermarket chain giant Ahold NV, said Tuesday it has new restrictions placed on its assets as a result of a court order in a legal battle against the country's tax agency, known as AFIP. The Company didn't disclose the extent, time frame, and the nature of the restrictions. According to Dow Jones, the case revolves around interest paid on a two-tranche foreign bond placement that Disco made in 1998, involving a US$100-million bond maturing in 2003 and another worth US$250-million that was to mature in 2008. According to Disco, the bonds were issued under placement provisos, were conducted in such a way that they were considered public offerings under the Argentine law and were in full compliance with the regulations of the National Exchange Commission. But the AFIP has argued that the Company wasn't eligible for an exemption from tax withholdings that the law provides for certain public bond offerings. The US$100 million five-year bond has since expired and the US$250 million issue was redeemed under an early redemption in July of this year. The presence of a withholding tax exemption would have brought benefits to Disco because it would have raised the value of its bonds and lowered their interest rate coupon. Disco has said it will appeal the order. It is still not known what effect the order will bring to Ahold's plan to sell the Argentine unit to a group led by Chilean retailer Cencosud SA. GEJAMAS: General Report Filing Deadline Today --------------------------------------------- The deadline for the filing of the general report on the bankruptcy of Mercedes-based company Gejamas S.A.C.I.Y.F. expires today. The Company's receiver, local accountant Jose Luis Carriquiy, prepared the report after the individual reports were processed at court. The Troubled Company Reporter - Latin America earlier reported that Court No. 4 of the Civil and Commercial Tribunal of Mercedez handles the Company's case. The court will give the go signal for the liquidation of the Company's assets any time soon. CONTACT: Gejamas S.A.C.I. Y.F. 12 de Octubre 2068 Bragado, Mercedes Jose Luis Carriquiy Calle 40 No. 726 Mercedes HOLACINE: Seeks Court Permission to Reorganize ---------------------------------------------- Argentine company Holacine S.A. seeks to undergo reorganization. The Company, which stopped making debt payments in February 2001, filed its motion for "Concurso Preventivo" at Buenos Aires Court No. 19, under Judge Fernandez. Clerk No. 37, Dr. Durao, assists the court on the case, local newspaper La Nacion reports. CONTACT: Holacine S.A. 2nd Floor Ave Leandro N. Alem 628 Buenos Aires INSTITUTO CAIP: Court Sets Schedule for Reorganization ------------------------------------------------------ Buenos Aires Court No. 20 sets the schedule for the reorganization of local company Instituto Caip S.R.L., reports local news source Infobae. The Company is placed in the hands of its receiver, Ms. Maria Elena Mercante. After credit verifications are closed on March 1 next year, the receiver will prepare the individual reports, which are to be submitted to the court on April 15, 2004. The general report is due for filing on the coming May 28. The informative assembly to be held on October 20 next year, will signal the conclusion of the reorganization. CONTACT: Maria Elena Mercante Uruguay 772 Buenos Aires LA BOTICA: Court Declares Company "Quiebra" ------------------------------------------- A ruling from Buenos Aires Court No. 9 declares local company La Botica de la Imprenta S.R.L. "Quiebra" - bankrupt. Clerk No. 18 works with the court on the case, relates Infobae. The court assigned Mr. Silvio Gustavo Gorbacz as the Company's receiver, the source adds. Creditors must present their proofs of claims to the receiver for verification before March 1 next year. The individual reports, to be prepared after verifications are closed, are due for filing on April 12. The general report should on May 24. The results of the verification process will determine the distribution of proceeds from the liquidation of the Company's assets at the end of the bankruptcy process. CONTACT: La Botica de la Imprenta S.R.L. Reconquista 671 Buenos Aires Silvio Gustavo Gorbacz Tucuman 1484 Buenos Aires LAKANT: Accountant Marcelo Edgardo Mirasso Acts as Receiver ----------------------------------------------------------- Buenos Aires accountant Marcelo Edgardo Mirasso takes charge as receiver for the bankruptcy of local company Lakant S.A., according to an Infobae report. The city's Court No. 25 ordered the receiver to check creditors' claims until February 18 next year. With assistance from Clerk No. 50, the court has set the deadlines for the individual and general reports. Infobae reveals that the individual reports are due for filing on March 31 next year, followed by the general report on May 17. CONTACT: Marcelo Edgardo Mirasso Lavalle 1675 Buenos Aires METCASA-METALURGICA: Receiver Closes Credit Verifications --------------------------------------------------------- Metcasa-Metalurgica Callegari S.A.'s receiver will close the credit verification period for the Company's bankruptcy today, the Troubled Company Reporter - Latin America said in an earlier report. The city's Court No. 26, which handles the Company's case, ordered the receiver to hand in the individual reports on February 20 next year. These reports are to be prepared upon completion of the credit verification process. The receiver will also prepare a general report, due for filing on April 2, 2004, after the individual reports are processed at court. The informative assembly, which is one of the last parts of the reorganization process, will be held on September 7 next year. CONTACT: Jorge Inafuku Cerrito 1070 Buenos Aires METROVIAS: Narrows Net Loss in the First 9 Mos. of 2003 ------------------------------------------------------- Argentine public transport company Metrovias saw its financial standing improve in the first nine months of the year due to increased efficiency through procedural and cost adjustments, reports Business News Americas. Accordingly, the Company, which operates Buenos Aires' subway system, posted a ARS3-million (US$1mn) net loss in the first nine months of 2003, compared to a ARS20.1-million net loss in the same period last year. Operating loss for the first nine months of 2003 was ARS4.19 million, down from an operating loss of ARS18.7 million in the same period last year. Metrovias is a division of local infrastructure and services company Clisa, which in turn is the infrastructure holding for Argentina's Grupo Roggio. PAPELERA SUR: Creditor's Bankruptcy Petition Gets Court's Nod ------------------------------------------------------------- Argentine paper manufacturer Papelera Sur S.A. will now enter bankruptcy after Buenos Aires Court No. 7 approved a bankruptcy motion filed by the Company's creditor. Judge Gutierrez Cabello handles the Company's case with assistance from Dr. Giardinieri, the city's Clerk No. 14. The Company's receiver, Mr. Jorge Berisso, will verify creditors claims until March 18, 2004. Creditors who fail to have their claims authenticated by the deadline will be disqualified from payments to be made from the liquidation of the Company's assets. CONTACT: Pepelera Sur S.A. Tacuari 740 Buenos Aires Jorge Berisso 9th Floor, Room C Paraguay 866 Buenos Aires PESQUERA SANTA MARIA: Court Approves Reorganization Petition ------------------------------------------------------------ Pesquera Santa Maria S.A., which is based in Buenos Aires, will undergo reorganization after the city's Court No. 13 approved its motion for "Concurso Preventivo" recently. A report by local news source Infobae indicates that Clerk No. 26 assists the court on the case. The receiver, Mr. Omar Vazquez, will verify creditors' claims and prepare the individual and general reports. However, Infobae did not indicate whether the court has set the filing deadlines for the receiver's reports. CONTACT: Pesquera Santa Maria S.A. Ave Medrano 144 Buenos Aires Omar Vazquez Ave Santa Fe 1127 Buenos Aires ZUZEPAR: Enters Bankruptcy on Court Orders ------------------------------------------ Zuzepar S.A., which is based in Buenos Aires, entered bankruptcy on orders from the city's Court No. 14. Argentine news portal Infobae relates that Clerk No. 27 assists the court on this particular case. Credit verifications will run until March 5 next year. The receiver, who will verify claims, will also be responsible for the preparation of the individual reports, due on April 19 and the general report due on June 1. CONTACT: Angel Vello Vazquez Viamonte 1592 Buenos Aires ============= B E R M U D A ============= CRP: AM Best Changes Parent's Under Review Status to Developing --------------------------------------------------------------- A.M. Best Co. has changed the implications of the under review status to developing from negative of the B++ (Very Good) financial strength rating of SCOR (Paris), its core subsidiaries and the ratings on debt instruments issued or guaranteed by SCOR. (See complete list below.) This action follows SCOR's decision to launch a fully underwritten EUR 750 million (USD 900 million) rights issue--EUR 150 million (USD 180 million) higher than previously announced-- that will be closed on January 7, 2004. In addition, SCOR has signed a commutation contract that will result in a 40% reduction in the portfolio of Commercial Risk Partners Limited (CRP) (Bermuda) relative to the year-end 2002 level. On November 6, 2003, A.M. Best stated that the consolidated net capital enhancement as a result of the originally proposed EUR 600 million (USD 720 million) rights issue would be insufficient for consideration of an upgrade given the level of losses sustained in the third quarter. Following SCOR's announcements Tuesday, A.M. Best is re-assessing the company's ratings and is in discussion with SCOR management with a view to resolving the under review status. The implications of the under review status of the B++ (Very Good) rating for the following companies have been changed to developing from negative: -- SCOR -- SCOR Canada Reinsurance Company -- SCOR Deutschland Rueckversicherungs AG -- SCOR Italia Riassicurazioni S.p.A -- SCOR Reinsurance Asia-Pacific Pte Ltd -- SCOR Reinsurance Company* -- SCOR UK Company Ltd -- General Security Indemnity Company of Arizona -- General Security National Insurance Company -- SCOR Life U.S. Re Insurance Company -- SCOR Life Insurance Company -- Investors Insurance Corporation *SCOR Reinsurance Company is a U.S. trading company. The implications of the under review status of the following debt ratings have been changed to developing from negative: "bbb-" rating on five-year convertible bonds "bbb-" rating on senior unsecured EUR medium term note program "bb+" rating on EUR 100 million cumulative subordinated notes, due 2020 "bb+" rating on USD 100 million subordinated step-up notes, due 2029 "bb+" rating on EUR 50 million subordinated perpetual step-up notes issued by Societe d'Etudes et de Placements Financiers and guaranteed by SCOR AMB-2 rating on EUR commercial paper program A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. Web site at http://www.ambest.com CRP: S&P Raises SCOR's long-term ratings to 'BBB+' -------------------------------------------------- Standard & Poor's Ratings Services said Tuesday it raised its long-term counterparty credit and insurer financial strength ratings on France-based reinsurer SCOR (SCOR.PA) and subsidiaries to 'BBB+' from 'BBB-'. In addition, Standard & Poor's raised its short-term counterparty credit and commercial paper ratings on SCOR to 'A-2' from 'A-3'. All ratings were removed from CreditWatch, where had been placed originally on June 17, 2003. The outlook on all group entities is stable. "The rating actions reflect SCOR's announcement of an increased and fully underwritten EUR750 million rights issue, together with evidence of a robust business position within core markets," said Standard & Poor's credit analyst Marcus Rivaldi. Standard & Poor's expects that SCOR will continue to endeavor to commute portfolios at its CRP subgroup (comprising Bermuda-based Commercial Risk Reinsurance Co. Ltd. and its U.S.-based subsidiary Commercial Risk Re-Insurance Co.) and significantly reduce its exposure to its substantial credit derivatives run-off portfolio. SCOR reported net premium income of EUR2.8 billion for the first nine months of 2003. The group's reinsurance operations are conducted through the France-based parent, SCOR, as well as through fully guaranteed subsidiaries operating on a regional basis in the world's main insurance markets. The stable outlook reflects Standard & Poor's expectation that SCOR's business position will remain robust within its core markets, although the aggregate level of group premium income underwritten in 2004 will materially decline as SCOR withdraws from noncore markets. Furthermore, SCOR's good prospective capital adequacy position will remain resilient to further reserve developments. "SCOR is expected to continue commuting business portfolios at CRP and significantly reduce its credit derivatives exposure. If beneficially achieved, these actions will materially reduce the level and potential volatility of reserves held on the group's balance sheet," said Mr. Rivaldi. ANALYSTS: marcus_rivaldi@standardandpoors.com david_anthony@standardandpoors.com yann_lepallec@standardandpoors.com InsuranceInteractive_Europe@standardandpoors.com =========== B R A Z I L =========== AES CORP.: BNDES Threatens to Lodge Legal Proceedings ----------------------------------------------------- Brazil's development bank BNDES is threatening to take U.S. power group AES Corp. to court if it fails to stick to its end of the US$1.2-billion debt-rescheduling deal with BNDES, reports Dow Jones. In September, the parties agreed on a plan to restructure AES's US$1.2-billion debt with the federally-controlled bank through the creation of a joint venture, Novacom, that would hold AES's interests in Brazil. The assets include power distributor Eletropaulo Metropolitana, gas-powered thermoelectric plant AES Uruguaiana and hydroelectric generator AES Tiete. The utility AES Sul would be added to the venture after the completion of the restructuring. However, up to now, AES hasn't transferred its controlling stake in AES Tiete to Novacom. "We have done our part of the deal, they haven't. If they don't take care of it soon, we'll go to court," said Carlos Lessa, president of BNDES. "Our relationship with this group has always been difficult. The bank won't extend the deadline," Lessa added, referring to a Dec. 15 deadline to transfer AES assets to Novacom. Under the agreement, AES's assets to be included in the deal had to be freed of any legal hurdles. According to Dow Jones, the inclusion of AES Tiete in the accord has been a key problem from the start because its control was given as collateral in a US$300-million AES bond deal in the U.S. BNDES gave AES until December 15 to sort out the hurdle, which would allow the debt deal to proceed. But the fact AES Tiete is tied to an AES debt deal isn't the only problem. The bank, according to a source close to BNDES, recently discovered that AES Tiete is in fact controlled by three AES- owned holding companies based in undisclosed tax havens. This could make its inclusion in the deal more complicated. CEMIG: Board Approves Payment of Interest on Capital ---------------------------------------------------- CEMIG's (Companhia Energetica De Minas Gerais) shareholders were notified that during a meeting held on November 28, 2003, the Board of Directors approved the payment of interest on capital for fiscal year 2003, acting in accordance with Article 9 of Law No. 9249/95, of December 26, 1995. This payment will be in the aggregate amount of BRL150,000,000.00 (one hundred and fifty million reais), which corresponds to BRL0.925442 per lot of one thousand shares, and will satisfy the minimum compulsory dividend payment requirement set forth in the first paragraph of Article 30 of CEMIG's By-laws. The manner and date of payment shall be set forth in the Ordinary General Shareholders' Meeting to be held by April 30, 2004. The shareholders entitled to the payment of interest on capital are those shareholders whose names appear in CEMIG's Nominative Shares Registration Book as of December 8, 2003 The payment will be subject to withholding income tax at the rate of 15%, in accordance with applicable Brazilian law; provided, however, that payments made to shareholders that are private pension entities may be legally exempt or immune from such tax. The trading value of the shares reflects the payment of interest on capital as of December 9, 2003. Shareholders that are residents of Brazil are kindly requested to update their personal information that is held on file with CEMIG. To do so, please proceed to any Banco Itau S/A branch (registrar of CEMIG's Nominative Shares Registration Book) with your personal documentation. GERDAU: Acquires Margusa for US$ 18 Million ------------------------------------------- GERDAU S.A., in compliance with the Brazilian Securities Commission (CVM) Regulation #358 of January 3rd, 2002, informs its shareholders and investors that its subsidiary Gerdau Acominas S.A. has signed on this date the purchase agreement for the total capital stock of Margusa - Maranhao Gusa S.A., located in Bacabeira-MA. Margusa - Maranhao Gusa S.A. has an installed capacity of 200 thousand metric tons of pig iron, including a second blast furnace expected to begin operating in January 2004. The mill is located 50 Km of Sao Luis and 48 Km of the seaport. The price for the stock is US$ 18 million, of which US$ 15.5 million will be paid from cash and US$ 2.5 million in acquired debt. The acquisition is part of the strategy to ensure the supply of pig iron to the Gerdau mills in the Northeastern part of the country and to exporting any excess output to the North American units. This investment guarantees Gerdau's presence in the important iron ore production center of Carajas, a strategic pig iron source with excellent logistics to supply both the domestic and the export markets. VESPER: QUALCOMM Announces Closing of Sale ------------------------------------------ QUALCOMM Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, announced Tuesday the closing of the transaction in which Embratel Participacoes S.A. acquired from QUALCOMM its indirect controlled operating subsidiaries, Vesper S.A and Vesper Sao Paulo S.A. (Vesper), together with their immediate holding companies Vesper Holding S.A. and Vesper Holding Sao Paulo S.A. As part of this transaction, QUALCOMM has retained, through a newly formed indirect controlled subsidiary (TowerCo), ownership and control of Vesper's existing 622 communication towers and related interests in tower site property leases. Concurrent with the closing of the transaction, Vesper and TowerCo entered into a 10-year agreement (renewable at Vesper's option for up to two successive five year terms) whereby Vesper will pay a monthly fee for use of aerial and ground space on the tower sites. QUALCOMM expects that TowerCo's extensive network of tower sites will be attractive to other parties who are interested in gaining access to these sites via similar usage rights arrangements -- particularly in the key markets of Sao Paulo and Rio de Janeiro where operators' ability to secure and build new tower sites is often challenging. Under the tower usage arrangement, QUALCOMM preserves the ability, and plans, to sell some or all of its interest in TowerCo and/or the tower sites directly (with assignment of the associated rights under the usage rights agreement). "This transaction is a positive strategic move for all parties involved," said Anthony S. Thornley, president and COO of QUALCOMM. "Embratel's financial strength, Brazilian telecom expertise, and ability to realize significant synergies from its existing operations will help Vesper enhance its voice and data service offerings. In particular, we are encouraged by Embratel's plans to extend and expand Vesper's position in Brazil's high- speed broadband Internet access market as it grows Latin America's first, and largest, 3G CDMA 1xEV-DO network. Furthermore, we are excited about Embratel's ability and plans to expand CDMA's market position as the dominant wireless access technology within Brazil." QUALCOMM Incorporated is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2003 FORTUNE 500� company traded on The Nasdaq Stock Market� under the ticker symbol QCOM. CONTACT: QUALCOMM Incorporated Emily Gin, Corporate Public Relations Tel: +1-858-651-4084 Fax: +1-858-651-5873 Email: publicrelations@qualcomm.com Bill Davidson, Investor Relations Tel: +1-858- 658-4813 Fax: +1-858-651-930 Email: ir@qualcomm.com Web site: www.qualcomm.com ========= C H I L E ========= ENERSIS: Reveals US$600M Investment Plan For Next Year ------------------------------------------------------ Enersis, the Latin American investment unit of Endesa SA, Spain's largest utility, revealed Tuesday plans to spend up to US$600 million next year in expansion, maintenance and completion of power generation projects in Chile and Brazil, relates Reuters. "We will spend US$400 million in additional investments, expansion and maintenance of existing projects. What is left, which is approximately US$200 million, will be spent in finishing Ralco and Fortaleza (hydroelectric and thermoelectric dams)," said Enersis President Pablo Yrarrazaval. The large chunk of the investment will be aimed at meeting the growing demand on its generation, distribution and transmission units in Argentina, Brazil, Colombia, Chile and Peru, he said. Enersis invested US$525 million this year. In the meantime, the Company aims to resume dividend payments to shareholders that were suspended over the past year. "We expect that next year, hopefully, we will be in a position to begin distributing dividends in some of our companies. The important thing this year has been to consolidate (our operations)," said Yrarrazaval. Enersis, the largest private electricity distribution group in Latin America, is in the process of improving its finances after it was battered by economic crises in Argentina and Brazil. CONTACT: Enersis SA Avenida Kennedy Vitacura No 5454 Santiago Chile 1557 Phone: +56 2 353 4400 Fax: +56 2 378 4768 Home Page: http://www.enersis.cl Contacts: Engr Alfredo Llorente Legaz, Chairman Engr Rafael Miranda Robredo, Vice Chairman ============= J A M A I C A ============= AUSJAM: Management Decides on Closure, Lays off 18 Workers ---------------------------------------------------------- Ausjam, Jamaica's only gold mine, finally buckled up Monday under heavy pressure from its labor union, as well as the decline in gold reserves. The Australian-owned mine located in Pennants, Clarendon, first announced its plan to shut down for good in October, when workers staged a brief strike for a new labor contract. On Monday, however, the Company proceeded with its plan to close and laid off its 18 unionized workers, represented by the United Union of Jamaica (UUJ), says the Observer. Mining and operations general manager, Chris Brown, attributed the Company's decision to the "unreasonable demands" by the workers' union, including a pay raise, medical benefits and other allowances. It also blamed the depletion of known gold reserves for the closure. At the moment, the Company is still analyzing whether to leave Jamaica permanently, Brown said, adding, a decision would come "as soon as possible." In the meantime, the Ausjam management is facing accusations of union busting. "This is plain and straightforward union busting from management. It is because they want to kick out the workers and the union why they are bringing off this play to frustrate the workers. We consider it as union busting," said UUJ head James Francis. Francis was adamant that workers would remain on the mines until the matter is solved. Australian businessman Paul Sailah launched Ausjam in 2001 with an initial investment of US$7.5 million (Jamaican $447 million). The Company has consistently lost money since then, and was forced to close briefly last year for restructuring. JUTC: Has Until Wednesday To Present Retro Payment Proposal ----------------------------------------------------------- The management of the Jamaica Urban Transit Company (JUTC) met with the Union of Clerical, Administrative and Supervisory Employees (UCASE) Monday to discuss issues regarding the payment of retroactive increases. According to a RadioJamaica report, the UCASE gave the JUTC management until Wednesday to set out how it proposes to pay retroactive increases to clerical and administrative employees. Already, the UCASE have openly expressed its disapproval to the management's decision to make payment this month only to some categories of workers. Earlier this week, the JUTC management announced it pay out a retroactive package to the state-run bus company's drivers and conductors on December 17. However, UCASE President Danny Roberts asserted that, with all the workers having had to wait for the increase since 2002, the Company could not justify making the payment to only one group, while withholding it from the over 300 clerical and administrative staff. It's estimated that the increases to the drivers and conductors will cost the Company JMD48 million. There is still no estimate of how much it will cost to make the similar payment to clerical and administrative staff. =========== M E X I C O =========== ALESTRA: Narrows Net Loss in the First Nine Months of 2003 ---------------------------------------------------------- Alestra, a provider of long distance services in Mexico, reported an accumulated net loss of MXN714.5 million (US$63.1 million) in the first nine months of 2003, reports El Universal. Although the result was negative, it was an improvement from the MXN1.26-billion (US$111.3 million) loss the Company reported in the same period of 2002. Operating profit totaled MXN225.4 million (US$19.91 million) compared to an operating loss of MXN171.3 million (US$15.10 million) in the same year-ago period. The telephone company achieved a 32% year-on-year increase in sales through September this year, totaling MXN4.22 billion (US$372 million). CYDSA: Struggles To Refinance Debt ---------------------------------- Mexican industrial conglomerate Cydsa is struggling to restore its profitability amid lack of confidence in the markets and the uncertainty of a group of bondholders of US$159 million of paper expiring in 2009, reports El Economista. "I do not think that the company will manage to recover the margins it had before: Its heavy financial burden makes its operations almost inviable," according to a fund strategist at a bank in Mexico. Analysts said that if the firm's debt restructure takes shape, bondholders will figure as new shareholders and some will have voting rights. These investors are represented by the fund Fintech. Cydsa said in November that it had reached a basic agreement with its bank creditors, headed by Citibank Banamex and BBVA Bancomer, to restructure the debt of its subsidiaries, which totals US$192 million. Cydsa, a maker of yarn and air-conditioner refrigerants, saw its profits plummet following fierce competition from Asian textiles and falling demand and prices for chemicals. As a result of the slump in profits, the Company couldn't keep up with its financial obligations. CONTACT: CYDSA, S.A. DE C.V., IN MEXICO Jesus Montemayor, Treasury Director +011-528-18-152-4585 E-mail: jmontemayor@cydsa.com ======= P E R U ======= *World Bank Approves $150M Loan To Peru --------------------------------------- The World Bank approved Tuesday a $150-million loan to Peru to support an ambitious and innovative government decentralization program. A key goal of the Programmatic Decentralization and Competitiveness Structural Adjustment Loan is to assist in making government more responsive to citizens. "The decentralization process will promote sustained, broad-based economic growth and improve the quality of and access to government services by all Peruvians," said Marcelo Giugale, World Bank Country Director for Bolivia, Ecuador, Peru and Venezuela. "These benefits will contribute to the reduction of poverty and inequality, particularly in the countryside." A guiding principle of Peru's decentralization is that it will not impose any additional financial burden on the public sector. The World Bank loan will help meet that goal by providing financial resources to prevent funding emergencies at the national, regional and local level. The World Bank loan will also support such measures as the expansion of the tax base and the strengthening of the tax system, as well as the reinforcement of community and business sector participation in decentralization. In addition, the loan will enable authorities to modernize ports, roads and other infrastructure in order to reduce logistics costs, thereby promoting foreign investment and economic growth. Another key goal of decentralization is increasing the transparency of government. "Decentralization would include citizen involvement in the budget process to an extent that is unprecedented in Latin America," said Fernando Rojas, World Bank task manager for the project. World Bank assistance is designed as a three-step process. Follow-up loans in 2004 and 2005 would advance a total of $200 million in additional funds. The $150 million, fixed spread loan is repayable in 14 years, with 8 years of grace. For more information on this project visit: http://web.worldbank.org/external/projects/main?pagePK=104231&piP K=73230&theSitePK=40941&menuPK=228424&Projectid=P082871 CONTACT: Alejandra Viveros (202) 473-4306 Aviveros@worldbank.org Lee Morrison (202) 458-8741 Lmorrison1@worldbank.org ================= V E N E Z U E L A ================= CANTV: To Make Dividend Payment on Dec. 19 ------------------------------------------ Shareholders of Venezuela's top telecommunications company CANTV revealed Tuesday that it would pay dividends on Dec. 19 to shareholders registered by Dec. 12, reports Reuters. In a statement, the Company, whose main shareholder is U.S. telephone company Verizon Communications, said that it would pay shareholders dividends of VEB350/share and reduce the total number of shares by 14.9%. Simultaneously, the assembly approved the reduction of the total number of shares by 138.9 million obtained through a VEB5.125- million buyback program started in 2001. "This amounts to a 14.9% reduction in the total number of shares," the statement said. CONTACT: Gustavo Antonetti CANTV Investor Relations 011-58-212-500-1831 FAX: 011-58-212-500-1828 E-Mail: invest@cantv.com.ve Mariana Crespo The Global Consulting Group 646-284-9407 E-Mail: mcrespo@hfgcg.com *********** 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. 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