/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/031210.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 Wednesday, December 10, 2003, Vol. 4, Issue 244 Headlines A R G E N T I N A ANCEL HERMANOS: General Report Deadline Expires Today ARANTES: Receiver Closes Credit Check in Bankruptcy CALPO: Individual Reports Due at Court Today DECOR ALIMENTICIA: Deadline for Individual Reports Filing Today EASA: Individual Reports Due Today EDENOR: Fitch Downgrades Company, GAIN Trust Notes to 'D' KAMET: Individual Reports Due Today RECOMAR: Last Day for Credit Verifications Today RIOS Y MONTANAS: Receiver Closes Credit Verifications ROCAISINA: Credit Check in Bankruptcy Ends SADIA: Eyes $50M Income with Minuano Partnership TRANSUB: Credit Verification in Bankruptcy Ends Today B E R M U D A FOSTER WHEELER: Awarded Springerville Unit No. 3 GLOBAL CROSSING: Has New Board of Directors GLOBAL CROSSING: Files Annual Report on Form 10-K LORAL SPACE: Wolf Haldenstein Amends Class Action Complaint B R A Z I L EMBRATEL: Employee Pension Fund Seeks Controlling Stake Purchase GERDAU: Acquires Pig Iron Mill In Maranhao C O L O M B I A GILAT SATELLITE: To Acquire All Shares Of rStar Corporation J A M A I C A KAISER ALUMINUM: Chinese Firm Joins Race For Alumina Assets M E X I C O AEROMEXICO: Embraer Sells Five ERJ 145s To Subsidiary U R U G U A Y ANCAP: Uruguayans Say `No' to Oil Trading Law V E N E Z U E L A PDVSA: May Refinance Part of Debt - - - - - - - - ================= A R G E N T I N A ================= ANCEL HERMANOS: General Report Deadline Expires Today ----------------------------------------------------- The reorganization of Ancel Hermanos S.A.C.I.I. proceeds with the filing of the general report today. This report, a summary of the individual reports, was prepared by the Company's receiver, Ms. Maria Yolanda Aguirre after the individual reports were processed at court. A recent report by the Troubled Company Reporter - Latin America indicated that the Civil and Commercial Tribunal of Resistencia, Chaco in Argentina granted the Company permission to undergo reorganization by approving its motion for "Concurso Preventivo". Local sources did not mention whether the court has chosen a date for an informative assembly, which is one of the last processes in a reorganization. CONTACT: Ancel Hermanos S.A.C.I.I. Juan B Justo 1745 Resistencia, Chaco Maria Yolanda Aguirre Remedios de Escalada 232 Resistencia, Chaco ARANTES: Receiver Closes Credit Check in Bankruptcy --------------------------------------------------- The bankruptcy of Argentine company Arnates S.A. moves a step further as the receiver closes the credit verification process today. As ordered by the court, the Company's receiver, local accountant Arnaldo Manuel, will prepare the court. Court No. 24, which handles the Company's case, requires the receiver to file the individual reports on February 23, 2004, the Troubled Company Reporter said in an earlier report. 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 CALPO: Individual Reports Due at Court Today -------------------------------------------- The individual reports on the bankruptcy of Buenos Aires-based Calpo S.A. are due for filing at the city's Court No. 19 today. The Troubled Company Reporter - Latin America earlier said that Mr. Juan Carlos Caro, receiver for Buenos Aires company Calpo S.A. verified creditors' claims to determine the nature and amount of the Company's debt. After the individual reports are processed at court, the receiver will consolidate the results into a general report to be passed on February 24 next year. 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 DECOR ALIMENTICIA: Deadline for Individual Reports Filing Today --------------------------------------------------------------- The individual reports on the bankruptcy of Decor Alimenticia S.R.L. are due for filing at the court today. The Company's receiver, Mr. Oscar Luis Serventich, prepared the individual reports after the credit verification process was closed earlier in the year. The general report, which is prepared after the individual reports are processed at court, must be submitted to the court on February 24 next year, the Troubled Company Reporter - Latin America said in an earlier report. The Company's assets will likely be liquidated at the end of the bankruptcy process to pay off its creditors. CONTACT: Oscar Luis Serventich Piedras 1319 Buenos Aires EASA: Individual Reports Due Today ---------------------------------- The individual reports for the bankruptcy of Buenos Aires-based company Emprendimientos Americanos S.A. are due for filing today, according to an earlier report by the Troubled Company Reporter - Latin America. The Company's receiver, Mr. Daniel del Castillo, prepared the reports after the credit verification process was completed early this year. After these reports are processed at the court, the receiver will prepare the general report, which is due for filing on February 20 next year. The Company's assets will be liquidated at the end of the bankruptcy process. Payments will be based on the results of the credit verifications. CONTACT: Daniel del Castillo Peron 1558 Buenos Aires EDENOR: Fitch Downgrades Company, GAIN Trust Notes to 'D' --------------------------------------------------------- Fitch Ratings downgraded the foreign currency rating assigned to Empresa Distribuidora y Comercializadora Norte S.A. (Edenor) and the GAIN Trust Notes to 'D' from 'C' Rating Watch Negative. Fitch has also removed the ratings from Rating Watch Negative. The rating action reflects the non-payment of principal related to the US$140 million GAIN notes due Dec. 1, 2003. The local currency rating of Edenor was downgraded to 'DD' in September 2002 due to the suspension and re-scheduling of principal payments. Edenor continued to make semiannual Interest payments, but due to the current re-structuring of the company's debt, missed the re-scheduled initial principal payment last week. CONTACT: Jason Todd Phone: +1-312-368-3217 Greg Kabance Phone: +1-312-368-2052 Media Relations: Matt Burkhard Phone: +1-212-908-0540 KAMET: Individual Reports Due Today ----------------------------------- Buenos Aires' Court No. 5 requires the receiver for local company Kamet S.A. to file the individual reports on the results of the verification process. The Company's receiver, Estudio Bruzzo Poltno Turek, who also verified creditors' claims, prepared the reports. The general report, prepared after the individual reports are processed at court, must be filed on February 23, 2004. An earlier report by the Troubled Company Reporter - Latin America revealed that creditors were required to present their proofs of claims to the receiver for verification before October 28 this year. CONTACT: Estudio Bruzzo Plotno Turek Sarmiento 930 Buenos Aires RECOMAR: Last Day for Credit Verifications Today ------------------------------------------------ Buenos Aires accountant Jorge Byrne, receiver for local company Recomar S.A., ends the examination and authentication of creditors' claims for the Company's bankruptcy process today. The Troubled Company Reporter - Latin America earlier related that the city's Court No. 24 handles the Company's case with assistance from Clerk No. 48. The court also requires the receiver to prepare the individual and general reports, however, the source did not reveal whether the deadlines for these reports have been set. CONTACT: Recomar S.A. Juan Bautista Alberdi 219 Buenos Aires Jorge Byrne Piedras 1319 Buenos Aires RIOS Y MONTANAS: Receiver Closes Credit Verifications ----------------------------------------------------- Mr. Mario Daniel Gomez, receiver for Rios y Montanas S.A., which is based in La Rioja, Argentina, will close the credit verification process for the Company's reorganization today. This part of the reorganization process is done to determine the nature and amount of the Company's debts. The receiver will now prepare the individual reports on the results of the verifications and submit these to the court on April 6 next year. The receiver's duties include the preparation of the general report after the individual reports are processed at court. The deadline for the filing of this is May 26, 2004. CONTACT: Mario Daniel Gomez El Maestro 502 Chilecito, La Rioja ROCAISINA: Credit Check in Bankruptcy Ends ------------------------------------------ Creditors of Argentine company Rocaisina S.A. must have their claims authenticated by the Company's receiver, Ms. Zulma Ghigliano, as the deadline for credit authentication expires today. This part of the bankruptcy process ascertains the nature and amount of the Company's debts. An earlier report by the Troubled Company Reporter - Latin America indicated that Judge Vassallo of Buenos Aires Court No. 5 issued the bankruptcy order in approval of a bankruptcy motion filed by the Company's creditor Comafi Fiduciario Financiero S.A. for nonpayment of debt. Clerk No. 9, Dr. Perez Casado assists the court on the case. CONTACT: Rocaisina S.A. Ave Julio Roca 590 Buenos Aires Zulma Ghigliano Capoletti 554 Buenos Aires SADIA: Eyes $50M Income with Minuano Partnership ------------------------------------------------ Brazilian food and meat products producer Sadia Alimentos hopes to generate an additional US$50 million income from its partnership with local company Minuano. Gazeta Mercantile relates that the partnership is aimed at boosting exports by 7.5% next year. Minuano, which, under the contract, will supply Sadia with eggs and animal feeds, has applied to Chapter 11 bankruptcy protection late last year. The Company's Lejeado unit will provide slaughtering and poultry meat processing. The contract boosts Sadia's number of poultry slaughterhouses to eight. The Company's own units are based in Concordia, Chapeco (Santa Catarina), Toledo, Francisco Beltrao, Dois Vizinhos (Parana), Varzea Grande (Mato Grosso) and Uberlandia (Minas Gerais), the report adds. TRANSUB: Credit Verification in Bankruptcy Ends Today ----------------------------------------------------- The credit verification process for the bankruptcy of Buenos Aires' Transub S.R.L. will end today, December 10. Creditors must have their claims authenticated by the Company's receiver, Mr. Hugo Edgardo Borgett, in order to qualify for payments to be made after the Company's assets are liquidated. The receiver will start preparing the individual reports on the verification results and present these to the court on February 23 next year. The general report must follow on April 7. Court No. 24 of Buenos Aires ordered the bankruptcy with assistance from Clerk No. 48, an earlier article by the Troubled Company Reporter - Latin America indicated. CONTACT: Hugo Edgardo Borgett Presidente Peron 863 Buenos Aires ============= B E R M U D A ============= FOSTER WHEELER: Awarded Springerville Unit No. 3 ------------------------------------------------ Foster Wheeler Ltd. (OTCBB: FWLRF) announced Monday that its subsidiary, Foster Wheeler Power Group Inc., has been awarded an order by Bechtel Power Corporation to design and supply a 400 MW pulverized coal-fired steam generator to be installed at the Springerville Generating Station in Arizona. Foster Wheeler is a supplier to Bechtel Power Corporation, which is the owner's lump- sum turnkey EPC contractor. The 400 MW unit will be owned by the Tri-State Generation and Transmission Association and operated by Tucson Electric Power, a subsidiary of UniSource Energy Corporation. The steam generator will be designed to fire low-sulfur western- type coals from the Lee Ranch mine in Arizona and from various mines from the Powder River Basin of Wyoming. The steam generator will be a wall-fired design using Foster Wheeler's parallel-pass heat recovery area to maximize boiler efficiency while firing a wide range of fuels, and will be equipped with Foster Wheeler's MBF coal pulverizers, low NO(x) Vortex series burners and a selective catalytic reduction (SCR) system to minimize NO(x) emission from the unit. The Foster Wheeler order value is approximately $53 million and the booking will be included in the fourth-quarter results. Project completion is expected in late 2006. Foster Wheeler Ltd. is a global company offering, through its subsidiaries, a broad range of design, engineering, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, oil and gas, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA. For more information about Foster Wheeler, visit our Web site at www.fwc.com. CONTACT: Foster Wheeler Ltd. Richard Tauberman Phone: 908-730-4444 908-730-4000 GLOBAL CROSSING: Has New Board of Directors ------------------------------------------- Global Crossing and Singapore Technologies Telemedia (ST Telemedia) announced Monday Global Crossing's new Board of Directors. Lodewijk Christiaan van Wachem will serve as chairman of the board, and Peter Seah will become the vice chairman. Additional new directors include E.C. "Pete" Aldridge, Jr., Archie Clemins, Donald L. Cromer, Richard R. Erkeneff, Lee Theng Kiat, Charles Macaluso, Michael Rescoe, and Robert J. Sachs. ST Telemedia will become a 61.5 percent equity shareholder of Global Crossing upon consummation of the ST Telemedia-Global Crossing purchase agreement and Global Crossing's emergence from bankruptcy. Under Global Crossing's plan of reorganization, ST Telemedia appoints eight of the directors, while two members are appointed by Global Crossing's creditors committee to form the new ten-member board. All board appointments will become effective immediately upon Global Crossing's emergence from bankruptcy. The new board of directors intends to work closely with the current management team to build on the accomplishments that have been achieved during the past 22 months and to help Global Crossing become a global telecommunications leader. Chairman of the Board, Lodewijk van Wachem was president of the Royal Dutch Petroleum Company from 1982 to 1992 and chairman of its supervisory board from 1992 to 2002. He joined the Royal Dutch/Shell Group in 1953 and served in various capacities in Latin America, Africa, the Far East and Europe. In addition to his new role as chairman of the board of Global Crossing, Mr. van Wachem currently serves on the supervisory board of Royal Philips Electronics N.V., on the boards of ATCO (Canada) Ltd. and Zurich Financial Services, and on the executive board of Rand Europe. Vice chairman of Global Crossing's new board, Peter Seah, president and chief executive officer of Singapore Technologies Group, is also chairman of SembCorp Industries and Singapore Technologies Engineering. He serves on the boards of Singapore Technologies Group and its companies including CapitaLand Limited, Chartered Semiconductor Manufacturing Ltd., StarHub Pte. Ltd., and ST Assembly Test Services. Prior to joining Singapore Technologies Group, Mr. Seah was a banker for 33 years, and served as vice chairman and chief executive officer of Overseas Union Bank. In addition to the chairman and vice chairman, the other eight new board members include: Pete Aldridge, former Under Secretary of Defense for Acquisition, Technology and Logistics. Mr. Aldridge will also serve as the head of the board's four-member security committee as outlined in the National Security Agreement signed by Global Crossing, ST Telemedia, and the U.S. Government. His past positions also include chief executive officer of the Aerospace Corporation, president of McDonnell Douglas Electronic Systems, Secretary of the Air Force, and numerous other senior posts within the Department of Defense. Mr. Aldridge is a current member of the Lockheed Martin board of directors; Archie Clemins, oowner and president of Caribou Technologies, Inc., and co-owner of TableRock International LLC. A veteran of the U.S. military, he concluded his career in Hawaii as an Admiral and the 28th Commander of the U.S. Pacific Fleet. Admiral Clemins will also serve on the security committee; Donald Cromer, former president of the Hughes Space and Communications Company. A 32-year veteran of the U.S. Air Force, he concluded his career as a Lt. General and the Commander of Space and Missile Center. General Cromer will also serve on the security committee; Richard Erkeneff, formerly the president and chief executive officer of United Industrial Corporation. He has also held senior posts with McDonnell Douglas Corporation. Mr. Erkeneff will also serve on the security committee; Lee Theng Kiat, president and chief executive officer of ST Telemedia Pte. Ltd. Mr. Lee joined Singapore Technologies (ST) in 1985 and has held various senior positions in the company including directorships in legal and strategic business development. In 1993, recognizing the promise of the telecommunications sector, Mr. Lee spearheaded the creation of ST Telemedia as a new business area for ST. Since that time, Mr. Lee has led ST Telemedia's growth by investing in and managing information-communications businesses; Charles Macaluso, founding principal and chief executive officer of Dorchester Capital Advisors (formerly East Ridge Consulting, Inc.), a management consulting and corporate advisory firm founded in 1996. Mr. Macaluso also currently serves as a director of Darling International; Michael Rescoe, chief financial officer and executive vice president, financial services, of the Tennessee Valley Authority, a federal corporation that is the nation's largest public power company and a regional development agency that manages the fifth- largest river system in the United States; and Robert Sachs, a communications attorney, who currently serves as president & CEO of the National Cable & Telecommunications Association (NCTA) since 1999. Prior to joining NCTA, Mr. Sachs was a co-founder and principal of the Continental Consulting Group, LLC, a consulting firm serving the cable television industry, and prior to that he served in various executive capacities with Continental Cablevision, Inc., and its successor MediaOne, Inc. In addition to the security committee, Global Crossing's board plans to create an executive committee composed of both directors and non-directors. Executive committee members are expected to include: Pete Aldridge, a Global Crossing director; Terry Clontz, president and chief executive officer of StarHub; Richard Erkeneff, a Global Crossing director; Lee Theng Kiat, a Global Crossing director and president and chief executive officer of ST Telemedia; Jeremiah Lambert, former co-chairman of Global Crossing's board; John Legere, chief executive officer of Global Crossing; Charles Macaluso, a Global Crossing director and founding principal and chief executive officer of Dorchester Capital Advisors; and Jean Mandeville, chief financial officer of ST Telemedia. 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. ABOUT SINGAPORE TECHNOLOGIES TELEMEDIA Singapore Technologies Telemedia (ST Telemedia) is a leading information and communications company in the Asia-Pacific region. Incorporated in 1994, the company provides a wide range of communications and information services including fixed and mobile communications, Internet exchange and data communications, satellite, broadband and Pay TV. ST Telemedia also is a major shareholder in StarHub, Singapore's info-communications company providing a full range of information, communications and entertainment services over fixed, mobile and Internet platforms; in Indosat, Indonesia's second largest telecommunications service provider; and in Equinix, the largest global network-neutral data center and Internet exchange service company in the United States and the Asia-Pacific region. ST Telemedia is a subsidiary of the Singapore Technologies Group, a technology-based multinational with operations and interests in more than 20 countries, including the United States. The Group has U.S. investments in Alabama, Arizona, California, Massachusetts, North Carolina, Texas, and Virginia. CONTACT: GLOBAL CROSSING Press Contacts Becky Yeamans + 1 973-937-0155 PR@globalcrossing.com Kendra Langlie Latin America + 1 305-808-5912 LatAmPR@globalcrossing.com Mish Desmidt Europe + 44 (0) 7771-668438 EuropePR@globalcrossing.com Analysts/Investors Contact Ken Simril + 1 310-385-3838 investors@globalcrossing.com Web site: www.globalcrossing.com ST TELEMEDIA Press Contacts Melinda Tan Singapore + 65 6723-8690 melinda_tan@sttelemedia.com June Seah Singapore + 65 6723-8683 june_seah@sttelemedia.com Bill Maroni North America + 1 202-585-2753 wmaroni@webershandwick.com Haidee Schwartz North America + 1 202-585-2098 hschwartz@webershandwick.com Web site: Singapore Technologies Telemedia GLOBAL CROSSING: Files Annual Report on Form 10-K ------------------------------------------------- Global Crossing announced Monday that it has filed with the Securities and Exchange Commission (SEC) its 2002 annual report on Form 10-K. The filing, which is available on the SEC and Global Crossing Web sites, includes financial statements for the 2000, 2001 and 2002 fiscal years. The Form 10-K is Global Crossing's first periodic report filed with the SEC since its Form 10-Q for the fiscal quarter ended September 30, 2001. The filing of periodic reports and the preparation of audited financial statements for 2001 and 2002 had been delayed due to the cessation of the audit practice of its prior auditor, Arthur Andersen, the demands of the bankruptcy process, and a then-pending investigation by a special independent committee of its board of directors into certain allegations relating to concurrent transactions for the purchase and sale of telecommunications capacity and services. In October 2002, Global Crossing announced that it would restate its accounting for the concurrent transactions recorded in certain filings previously made with the SEC. The financial statements included in the 2002 Form 10-K filing reflect these restatements, as well as certain additional restatements identified during the course of the audit of Global Crossing's 2001 and 2002 financial statements. A detailed description of the restatements and their impact on financial statements previously filed with the SEC may be found in the Form 10-K filing made Monday. In connection with the filing of the Form 10-K and Global Crossing's impending emergence from bankruptcy, Global Crossing also announced its intention to file the following reports with the SEC within fifteen days after its emergence: - Quarterly reports on Form 10-Q for the first, second and third fiscal quarters of 2003. - A current report on Form 8-K including a "fresh start" balance sheet establishing a "fair value" basis for the carrying value of the assets and liabilities of the reorganized company. As previously announced, Global Crossing's plan of reorganization provides for the cancellation of existing preferred and common stock. The holders of these previously publicly traded securities will receive no consideration under the plan of reorganization. LORAL SPACE: Wolf Haldenstein Amends Class Action Complaint ----------------------------------------------------------- On September 9, 2003, Wolf Haldenstein Adler Freeman & Herz LLP ("Wolf Haldenstein") filed a class action lawsuit in the United States District Court for the Southern District of New York, on behalf of all persons who purchased or acquired the securities of Loral Space & Communications, Ltd. ("Loral" or the "Company") (OTC Bulletin Board: LRLSQ.OB - News) between June 30, 2003 and July 15, 2003, inclusive, against defendant Bernard Schwartz, the Company's Chief Executive Officer and Chairman of the Board during the Class Period. The case name and index number are Pfusterer v. Bernard Schwartz, 03 CV 6883. The September 9, 2003 action arose out of several announcements Loral made beginning on June 30, 2003, the beginning of the original Class Period, reporting events that purportedly would assist in strengthening its balance sheet and its future prospects. On June 30, 2003, Loral made two announcements that purportedly would assist in strengthening its balance sheet and its future prospects. Loral announced that "it has collected approximately $55 million from Intelsat representing an acceleration of a receivable for agreed-upon milestone performance payments" and that Loral had resolved all outstanding legal disputes with Alcatel thereby eliminating potential exposure to $350 million in liability to Alcatel. As alleged in the Amended Complaint, described below, the defendants also materially misrepresented the Company's financial performance and condition by inflating the Company's revenues and net income, and by underreporting expenses. These misrepresentations of the Company's financial performance included a) failing to timely account for the obsolescence of its inventory; b) inappropriately accounting for general and administrative costs ("G&A costs") in the second and third quarters of 2002; and c) improperly recognizing revenue from its Telstar 18/Apstar V contract with APT Satellite Company Ltd. On July 15, 2003, prior to the market open, Loral's ongoing contemplation of Chapter 11 came to fruition when Loral announced that it was filing for Chapter 11 bankruptcy as a precondition to an agreement with Intelsat to sell its six North American satellites for approximately $1.1 billion. Once the stock resumed trading after being halted on the news, the stock lost 90% of its value. On October 14, 2003, Wolf Haldenstein announced that it was filing a complaint against Bernard Schwartz arising out of additional allegations which provided a basis to expand the class period from May 14, 2003, to July 15, 2003. This complaint, captioned Christ, et al. v. Bernard Schwartz, et al., 03 CV 8262, was filed on October 17, 2003, in the United States District Court for the Southern District of New York. The Christ complaint alleged, among other things, that on May 14, 2003, Loral announced its financial results for the first quarter of fiscal year 2003 and held a conference call to discuss the current financial condition and future prospects of the Company. During the conference call, defendant Schwartz made numerous comments regarding the current and future viability of the Company as an ongoing entity and reassured stockholders that the Company would continue to operate for the benefit of stockholders. This was followed by the series of positive announcements beginning June 30, 2003, detailed above. The Complaint alleges that the Company failed to disclose that Loral knew that its future as an ongoing entity did not include ownership by current common stockholders and that the Company intended to act in a manner that would eliminate the stockholders stake in the Company. On November 17, 2003, the judge presiding over these actions, in accordance with the Private Securities Litigation Reform Act of 1995, 15 U.S.C. section 78u-4(a)(3)(B), authorized plaintiffs Tony Christ, Casey Crawford, Thomas Orndorff, and Marvin Rich, represented by the firm of Wolf Haldenstein, to be lead plaintiffs and Wolf Haldenstein to be lead counsel on behalf of those who purchased Loral securities between May 14, 2003, through June 29, 2003, and ordered those lead plaintiffs to file an amended complaint with the Court. In its ongoing investigation into the conduct of Loral and defendant Bernard Schwartz, Wolf Haldenstein concluded that additional factors warranted the further expanding of the class period. The amended Complaint, captioned Christ, et al. v. Bernard Schwartz, et al., 03 CV 8262, is on behalf of all persons who purchased or acquired the securities of Loral between July 31, 2002, through June 29, 2003, inclusive, (the "Class Period") against defendant Bernard Schwartz and Richard J. Townsend, the Company's Chief Financial Officer during the Class Period. The complaint alleges that during the Class Period, among other things, the defendants materially misrepresented the Company's financial performance and condition by inflating the Company's revenues and net income, and by underreporting expenses. These misrepresentations of the Company's financial performance included a) failing to timely account for the obsolescence of its inventory; b) inappropriately accounting for general and administrative costs ("G&A costs") in the second and third quarters of 2002; and c) improperly recognizing revenue from its Telstar 18/Apstar V contract with APT Satellite Company Ltd. The Company finally recognized these improprieties in its financial report filed on Form 10-Q with the Securities and Exchange Commission ("SEC") on November 13, 2003, months after the July 15, 2003, bankruptcy. The Court has directed by order of November 20, 2003, that the parties begin discovery proceedings to be completed no later than March 17, 2004. Although the lead plaintiff and the lead counsel, Wolf Haldenstein, continue to vigorously pursue the claims on behalf of purchasers during the Class Period of July 31, 2002 through June 29, 2003, at the Court's direction this notice is being published so that on or prior to February 6, 2004, if you purchased or acquired Loral securities during the Class Period, you may request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wolf Haldenstein, current lead counsel, or other counsel of your choice, to serve as your counsel in this action. CONTACT: Fred Taylor Isquith, Esq. Christopher S. Hinton, Esq. George Peters Derek Behnke WOLF HALDENSTEIN ADLER FREEMAN & HERZ LLP 270 Madison Avenue, New York New York 10016 Tel: (800) 575-0735 E-mail: classmember@whafh.com =========== B R A Z I L =========== EMBRATEL: Employee Pension Fund Seeks Controlling Stake Purchase ---------------------------------------------------------------- Fundacao Embratel de Seguridade Social (Telos), the employee pension fund for Embratel Participacoes SA, intends to buy a controlling stake in the long distance phone company from U.S. Parent WorldCom Inc. In a statement to securities regulators, Jose Manuel Oliveira Carregal, the pension fund's financial director, said that Telos plans to form a group of investors to buy the WorldCom stake. The local unit of UBS AG has been hired to advise Telos on the stake acquisition and to help structure the investor group that will make the bid. The pension fund said it expects the purchase of Embratel shares from WorldCom to offer better returns than investing in fixed income securities. "With the outlook that interest rates will decline, investing in (Embratel) stock may become a good opportunity within the investment policy by Telos, which believes it may obtain a return on investment higher than in other investments," the pension said. WorldCom, which filed for bankruptcy protection last year after becoming embroiled in an accounting scandal, said in mid-November that it had started to look for a buyer for its Brazilian unit. Analysts had bet that Mexican giant Telefonos de Mexico would be the most likely candidate to buy Embratel. Telos had a total of BRL2.1 billion (US$713 million) in investments in its portfolio in October, 85.7% of which was invested in fixed income securities. CONTACT: Silvia M.R. Pereira, Investor Relations Tel: (55 21) 2121-9662 Fax: (55 21) 2121-6388 Email: silvia.pereira@embratel.com.br invest@embratel.com.br GERDAU: Acquires Pig Iron Mill In Maranhao ------------------------------------------ The Gerdau Group will expand its Brazilian production of pig iron, one of the main inputs in steel production, with the acquisition of Margusa (Maranhao Gusa S.A.). Located in the municipality of Bacabeira in the state of Maranhao, the mill represents an investment of US$18 million and will have an annual production capacity of 200,000 metric tons as of January next year, when implementation of the second blast furnace is completed. Current annual capacity is 85,000 metric tons. Gerdau will pay out US$ 15.5 million in cash resources and take on debts of US$ 2.5 million. Pig iron is used in solid form together with scrap in the production of steel in electric arc furnace mills. "One of the main competitive advantages of the Maranhao unit is its strategic location, close to the source of iron ore at Carajas and to the port, which will simplify shipments to Gerdau mills in Brazil's northeast and the United States", stated Gerdau Group president Jorge Gerdau Johannpeter. The mill is located 50 km from the state capital, Sao Lu�s, and 48 km from the regional port. The Group operates three mills in Brazil's northeast - Gerdau Cearense (state of Ceara), Gerdau Aconorte (state of Pernambuco) and Gerdau Usiba (state of Bahia) - and a further ten mills in North America. The unit will be the Group's second pig iron production mill. Since 1986, Gerdau has operated a unit at Contagem (state of Minas Gerais), with annual capacity of 230,000 metric tons. Margusa employs approximately 110 people, including direct employees and service providers. This figure will be maintained and should be expanded with the creation of a further 50 direct jobs at the start of 2004, when the new blast furnace comes on line. CONTACT: Press Office +55(51) 3323-2170 imprensa@gerdau.com.br www.gerdau.com.br =============== C O L O M B I A =============== GILAT SATELLITE: To Acquire All Shares Of rStar Corporation ----------------------------------------------------------- Gilat Satellite Network, Ltd. (NASDAQ: GILTF) announced that it intends to acquire all of the shares of common stock of rStar Corporation (NASDAQ: RSTRC) not already owned by Gilat for $0.60 per share in cash. The acquisition, which is expected to be effected by way of a "short-form" merger of rStar with a Gilat subsidiary, is subject to Gilat holding at least 90 percent of the outstanding rStar shares and to the filing and clearance of a required Schedule 13E-3 with the United States Securities and Exchange Commission, as well as other customary conditions. Gilat currently owns approximately 84.9% of rStar's outstanding shares. Gilat stated that in order to be in a position to hold at least 90% of rStar's outstanding shares, Gilat has entered into an agreement with certain rStar stockholders to acquire an additional 9.3% of rStar shares for $0.60 per share in cash. Pursuant to the terms of the purchase agreement with those stockholders, Gilat is required to complete the short-form merger to acquire the shares held by all other rStar stockholders promptly following such purchase. Like the consummation of the short-form merger, that purchase is also subject to Gilat filing and obtaining clearance of its Schedule 13E-3 with the SEC, as well as other customary conditions. Gilat had previously announced that it was contemplating acquiring all of the outstanding shares of rStar it does not currently own through a tender offer, followed by a short form merger. As a result of the agreement to acquire an additional 9.3% of rStar shares, it will no longer be required to, and it does not intend to undertake, a tender offer for rStar shares. ABOUT GILAT SATELLITE NETWORKS LTD. Gilat Satellite Networks Ltd., with its global subsidiaries Spacenet Inc., Gilat Latin America and rStar Corporation (RSTRC), is a leading provider of telecommunications solutions based on Very Small Aperture Terminal (VSAT) satellite network technology - with nearly 400,000 VSATs shipped worldwide. Gilat, headquartered in Petah Tikva, Israel, markets the Skystar Advantager, DialAw@y IPT, FaraWayT, Skystar 360ET and SkyBlaster* 360 VSAT products in more than 70 countries around the world. Gilat provides satellite-based, end-to-end enterprise networking and rural telephony solutions to customers across six continents, and markets interactive broadband data services. Gilat is a joint venture partner with SES GLOBAL, and Alcatel Space and SkyBridge LP, subsidiaries of Alcatel, in SATLYNX, a provider of two-way satellite broadband services in Europe. Skystar Advantage, Skystar 360E, DialAw@y IP and FaraWay are trademarks or registered trademarks of Gilat Satellite Networks Ltd. or its subsidiaries. Visit Gilat at www.gilat.com. (*SkyBlaster is marketed in the United States by StarBand Communications Inc. under its own brand name.) INVESTOR INQUIRIES: Tim Perrott Tel: +1703-848-1515 MEDIA CONTACT: Barry Spielman, Director Corporate Marketing tel: +(972)3-925-2201 barrys@gilat.com ============= J A M A I C A ============= KAISER ALUMINUM: Chinese Firm Joins Race For Alumina Assets ----------------------------------------------------------- The vice president of state-owned China Minmetals Nonferrous Metals Company Limited (Minmetals) confirmed Friday that the company is one of the bidders for Kaiser Aluminum Corp.'s alumina assets in Jamaica, Reuters reports without revealing the name of the executive. Kaiser is selling its 65% stake in Alumina Partners of Jamaica (Alpart) and its 49% interest in Kaiser Jamaica Bauxite Company. The other bidders are Texas-based Sherwin Alumina Company; a joint venture between Century Aluminum Company and Toronto's Noranda Incorporated; Switzerland-based Glencore International AG; and Japan's Mitsubishi Corporation. Norway's Norsk Hydro owns the other 35% of Alpart's bauxite mine and alumina refinery and has first right of refusal to buy Kaiser's stake. Kaiser Aluminum filed for Chapter 11 protection from creditors under US bankruptcy laws in Feb. 2002. =========== M E X I C O =========== AEROMEXICO: Embraer Sells Five ERJ 145s To Subsidiary ----------------------------------------------------- Embraer (NYSE: ERJ) announced Monday the sale of five firm ERJ 145 LRs and up to 25 options for Mexican carrier Aerolitoral. A subsidiary of AeroMexico and one of the main Mexican regional airlines, Aerolitoral operates more than 200 daily flights to 36 destinations in Mexico and abroad, with a fleet of 25 turboprops. The 50-seat ERJ 145s will be the first Embraer jets operated by the company, and also the first regional jets to fly for a Mexican airline. "Embraer is pleased and honored to have its aircraft selected by Aerolitoral," said Mauricio Botelho, Embraer's President and CEO. "The Mexican air transport market has great relevance, and this order gives our ERJ 145s the privilege of being the first regional jets ever to operate in the colors of a Mexican airline." "Aerolitoral will make a significant improvement in its fleet with the ERJ 145," said Raul Saenz, Aerolitoral's CEO. "The regional jet is a new product for the Mexican market that will allow us to serve more regional markets more efficiently." The ERJ 145 regional jet is the 50-seat member of Embraer's successful ERJ family, a modern design that has stood out in the world market for its operational efficiency, low acquisition and operation costs, and high levels of safety and comfort. More than 750 aircraft of this family are in operation worldwide. ============= U R U G U A Y ============= ANCAP: Uruguayans Say `No' to Oil Trading Law --------------------------------------------- Early results of a nationwide referendum held Sunday showed that Uruguayans rejected a law that would have opened up the country's oil market to foreign investors. According to BBC News, the oil trading law allowed for an injection of foreign capital into the country's energy sector by permitting state monopoly ANCAP to set up joint ventures. The law was originally passed in 2001, but its implementation was frozen amid calls for a referendum. Now that a referendum has taken place it looks set to be scrapped. The oil trade privatization 'no' vote is a setback for Uruguayan President Jorge Batlle. The rejection of the law, which Batlle backed, is being seen as a foretaste of presidential elections in October 2004. Some say Batlle could lose power if the shift to the left continues. CONTACT: Administracion Nacional de Combustibles, Alcohol y Portland (ANCAP) Central Administration Paysando s/n esq. Avenida del Libertador Montevideo, 11100 Uruguay P.O. Box 1090 Phones: +598(2) 902 0608 902 3892 902 4192 Fax +598(2) 902 1136 902 1642 Telex ANCAP UY 23168 E-mail: info@ancap.com.uy Home Page: www.ancap.com.uy Contact: Benito E. Pi eiro, Chief Executive Officer Phone +598(2) 900 2945 +598(2) 902 0608 Ext. 2253 Fax +598(2) 908 9188 ================= V E N E Z U E L A ================= PDVSA: May Refinance Part of Debt --------------------------------- Venezuelan state oil company Petroleos de Venezuela SA is mulling the possibility of refinancing part of its debt, reports El Universal. But according to PdVSA President Ali Rodriguez, there is no final decision yet. Previously, the Company revealed it has about US$758 million in debt coming due next year. Its output and sales were slashed this year by a two-month nationwide strike that cost it US$10 billion in lost sales and damages. *********** 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. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *