/raid1/www/Hosts/bankrupt/TCRLA_Public/050811.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, August 11, 2005, Vol. 6, Issue 158
Headlines
A R G E N T I N A
ADRIMAR S.R.L.: Court Orders Liquidation
AGUAS PROVINCIALES: Government Considers Other Proposals
AIRDAL GASTRONOMICA: Files for Bankruptcy
ALTO PALERMO: Independent Directors' Appointments Approved
ASOCIACION DE OBRAS: Court Authorizes Reorganization
CENTINEO Y DAMIANI: Court Designates Trustee for Liquidation
CREDIT HOUSE: Initiates Bankruptcy Proceedings
ECOBUS S.A.: Court Rules Liquidation Required
ERBO S.A.: Reorganization Deteriorates to Bankruptcy
INDUSTRIAS WALTER: Court Declares Company Bankrupt
JUBAES S.A.: Court Issues Bankruptcy Ruling
MOLINOS RIO: Reverses Last Year's First-Half Loss
NEGOCIOS INTERNACIONALES: Informative Assembly Set
NIDERRA S.R.L.: Files Petition to Reorganize
PEDALEANDO S.A.: Bankruptcy Process Begins By Court Order
SIDERAR S.A.I.C.: Net Sales Up 44% in Six Months
SUBOR S.A.: Bankruptcy Initiated on Court Orders
TELECOM ARGENTINA: May Form Partnership With Antel
VINTAGE PETROLEUM: Announces Recent Acquisition Activity
B A H A M A S
LOM HOLDINGS: Tied to Internet Firm Being Investigated By SEC
B O L I V I A
AGUAS DEL ILLIMANI: Government, Suez to Decide on Fate Aug 15
B R A Z I L
CSN: Seen Likely Target by Mittal
ELETROPAULO METROPOLITANA: Posts BRL136.8 Mln 2Q05 Net Profit
EMBRATEL: Net Revenues Reach $1,859M in 2Q05
LOCALIZA RENT: Reports Net Income of R$31.4 Mln
NII HOLDINGS: Proceeds With Convertible Note Offering
C H I L E
COEUR D'ALENE: Reports Improved 2Q05, 6-Month Results
C O L O M B I A
ECOPETROL: Seeks Foreign Partner in Cartagena Expansion Project
ECOPETROL: Progress on Gas Pipeline Project Delayed
M E X I C O
AOL LATIN AMERICA: Lease Decisions Due November 23
BALLY TOTAL: S&P Cuts Corporate Credit, Sr. Debt Ratings to CCC
CORPORACION DURANGO: Sales Up 20% in 2Q05
MINERA AUTLAN: Taps BCG to Help Prepare Business Plan
V E N E Z U E L A
CANTV: Shares Rebound After Week's Slide
- - - - - - - - - -
=================
A R G E N T I N A
=================
ADRIMAR S.R.L.: Court Orders Liquidation
----------------------------------------
Adrimar S.R.L. prepares to wind-up its operations following the
bankruptcy pronouncement issued by Court No. 17 of Buenos Aires'
civil and commercial tribunal. The declaration effectively
prohibits the company from administering its assets, control of
which will be transferred to a court-appointed trustee.
Infobae reports that the court appointed Mr. Carlos Erasmo
Moreno as trustee. Mr. Moreno will be reviewing creditors'
proofs of claim until Sep. 15, 2005. The verified claims will
serve as basis for the individual reports to be presented for
court approval on Oct. 18, 2005. The trustee will also submit a
general report of the case on Nov. 17, 2005.
Clerk No. 33 assists the court on this case that will end with
the sale of the Company's assets. Proceeds from the sale will be
used to repay the Company's debts.
CONTACT: Mr. Carlos Erasmo Moreno, Trustee
Tucuman 1658
Buenos Aires
AGUAS PROVINCIALES: Government Considers Other Proposals
--------------------------------------------------------
The government of Santa Fe province is considering other buyers
for water utility Aguas Provinciales de Santa Fe lest French
parent Suez fails to nail an agreement with Emgasud. Gas
distribution company Emgasud has already signed a letter of
intent with Suez, but the provincial government has demanded
more guarantees and considers that its investment plan is
insufficient.
Emgasud has been given until August 15 to provide more
information.
"We don't rule out that after a possible collapse of Emgasud's
proposal, we can continue with the same idea of reaching an
agreement between private parties," said Santa Fe Governor Jorge
Obeid.
"There are other economic groups that have told us of their
interest in taking a stake in Aguas to handle the concession,"
Mr. Obeid said.
In early June, local water utility Latinaguas said it had signed
a letter of intent with Suez to buy Aguas Provinciales de Santa
Fe. The French company later entered into an agreement with
Emgasud.
Latinaguas, which operates water and sewer services in three
Argentine provinces, has resurfaced as a possible buyer for the
Santa Fe unit if Emgasud's deal with Suez falls through.
AIRDAL GASTRONOMICA: Files for Bankruptcy
-----------------------------------------
Court No. 2 of Buenos Aires' civil and commercial tribunal is
now analyzing whether to grant Airdal Gastronomica S.A. approval
for its petition for liquidation. Infobae recalls that the
Company filed the petition following cessation of debt payments.
Clerk No. 4 is assisting the court on the Company's case.
CONTACT: Airdal Gastronomica S.A.
Riobamba 340
Buenos Aires
ALTO PALERMO: Independent Directors' Appointments Approved
----------------------------------------------------------
Alto Palermo S.A. held a general ordinary shareholders' meeting
on August 2, 2005 where the shareholders of the Company approved
the appointment of independent directors for the Auditors
Committee. Other resolutions were also approved. In a letter
dated August 4, 2005, the Company revealed:
1) "Appointment of two shareholders to approve and sign the
shareholders' meeting minutes."
The appointment of the representatives of shareholders PARQUE
ARAUCO ARGENTINA S.A. (PAASA) and IRSA INVERSIONES Y
REPRESENTACIONES SOCIEDAD ANONIMA (IRSA), to approve and sign
the Shareholders' Meeting' minutes was unanimously approved.
2) "Review of the U.S. regulations applicable to the Company on
account of the listing of its securities on such market.
Consideration of the exemptions applicable to foreign companies.
If relevant, reorganization of the board of directors and
election of regular members pursuant to the aforementioned
regulatory requirements. Authorizations."
The following resolutions were approved by unanimous vote:
a) The Board of Directors' performance concerning compliance
with both domestic and foreign regulations;
b) Delegation to the Board of Directors and the Supervisory
Committee of the necessary powers to comply with the regulations
in force;
c) To abstain from introducing any changes with regard to the
composition of the Board of Directors and to appoint independent
directors for the Auditors Committee, without resorting to the
applicable exception to foreign companies.
ASOCIACION DE OBRAS: Court Authorizes Reorganization
----------------------------------------------------
Court No. 10 of Rosario's civil and commercial tribunal
authorized Asociacion de Obras Sociales de Rosario (ADOS
Rosario) to start its reorganization process. According to
Infobae, the court granted the Company's "Concurso Preventivo"
motion, appointing Contadores Re, Azara, Gard as receiver.
Creditors have until Aug. 29, 2005 to submit their proofs of
claim to the receiver, who will verify these claims and submit
them to court as individual reports on Oct. 10, 2005. After
these reports are processed in court, the receiver will then
prepare the general report and submit it to court on Nov. 22,
2005.
The informative assembly, the last stage of a reorganization
process, will be held on April 25, 2006.
CONTACT: Asociacion de Obras Sociales de Rosario (ADOS Rosario)
San Juan 3034
Rosario (Santa Fe)
Contadores Re, Azara, Gard, Trustees
Laprida 524
Rosario (Santa Fe)
CENTINEO Y DAMIANI: Court Designates Trustee for Liquidation
------------------------------------------------------------
Bahia Blanca accountant Ana Maria Battaglia was assigned trustee
for the liquidation of local company Centineo y Damiani S.A.,
relates Infobae.
Ms. Battaglia will verify creditors' claims and prepare the
individual reports, which are to be submitted in court. After
the individual reports, the trustee will then be required to
submit the general report.
The city's civil and commercial Court No. 5 handles the
Company's case. Clerk No. 2 assists the court with the wind-up
proceedings.
CONTACT: Centineo y Damiani S.A.
Soler 232
Bahia Blanca
Ms. Ana Maria Battaglia, Trustee
Sarmiento 548
Bahia Blanca
CREDIT HOUSE: Initiates Bankruptcy Proceedings
----------------------------------------------
Buenos Aires Court No. 21 declared Credit House S.A. "Quiebra,"
reports Infobae. Clerk No. 42 assists the court on the case,
which will close with the liquidation of the Company's assets to
repay creditors.
Mr. Maximo C. A. Piccinelli, who has been appointed as receiver,
will verify creditors' claims until Aug. 31, 2005 and then
prepare the individual reports based on the results of the
verification process.
The individual reports will then be submitted to court on
Oct. 17, 2005, followed by the general report on Nov. 30, 2005.
CONTACT: Credit House S.A.
Los Patos 1748
Buenos Aires
Mr. Maximo C. A. Piccinelli, Trustee
Montevideo 666
Buenos Aires
ECOBUS S.A.: Court Rules Liquidation Required
---------------------------------------------
Court No. 15 of Buenos Aires' civil and commercial tribunal
ordered the liquidation of Ecobus S.A. after the Company
defaulted on its obligations, Infobae reveals. The liquidation
pronouncement will effectively place the Company's affairs as
well as its assets under the control of the court-appointed
trustee.
The trustee will verify creditors' claims. The verified claims
will serve as basis for the individual reports. The trustee is
also tasked to prepare the general report.
The case will end with the disposal of the Company's assets in
favor of its creditors.
CONTACT: Ecobus S.A.
Brasil 1036
Rosario (Santa Fe)
ERBO S.A.: Reorganization Deteriorates to Bankruptcy
----------------------------------------------------
The reorganization of Erbo S.A. has progressed into bankruptcy.
Argentine news source Infobae relates that Buenos Aires' civil
and commercial Court No. 21 ruled that the Company is "Quiebra
Decretada". The report adds that the court assigned Francisco J.
Vazquez as trustee, who will verify creditors' proofs of claim
until Sep. 30, 2005.
The court also ordered the trustee to prepare individual reports
after the verification process is completed, and have them ready
by Nov. 14, 2005. A general report on the bankruptcy process is
expected on Dec. 28, 2005.
The informative assembly, which is the last stage of
reorganization, is set on July 4, 2006. During this assembly,
creditors will vote on the settlement plan presented by the
Company.
CONTACT: Mr. Francisco J. Vazquez, Trustee
Rodriguez Pena 110
Buenos Aires
INDUSTRIAS WALTER: Court Declares Company Bankrupt
--------------------------------------------------
Industrias Walter S.A. entered bankruptcy on orders from Court
No. 1 of Canada de Gomez's civil and commercial tribunal,
reveals Infobae. The court assigned Mr. Hector Hugo Cardenas as
receiver. He is to verify creditors' claims until Oct. 4, 2005.
Creditors who fail to have their claims validated before the
deadline will be disqualified from receiving any payments to be
made after the Company's assets are liquidated.
The individual reports, which are due on Nov. 17, 2005, are to
be prepared upon completion of the verification process. The
court also requires the receiver to prepare a general report and
file it on Feb. 3, 2006. This report contains a summary of the
results in the individual reports.
CONTACT: Mr. Hector Hugo Cardenas, Trustee
San Martin 469
Canada de Gomez (Santa Fe)
JUBAES S.A.: Court Issues Bankruptcy Ruling
-------------------------------------------
Jubaes S.A. will now enter bankruptcy after Court No. 18 of
Buenos Aires' civil and commercial tribunal declared it
"Quiebra," reports Infobae. With assistance from Clerk No. 35,
the court named Ms. Susana Beatriz Fernandez as receiver. She
will verify creditors' claims until Sep. 19, 2005.
Following claims verification, the receiver will submit the
individual reports, which were prepared based on the
verification results, to the court on Nov. 1, 2005. The general
report is due for submission on Dec. 13, 2005.
The Company's bankruptcy case will close with the liquidation of
its assets to pay its creditors.
CONTACT: Ms. Susana Beatriz Fernandez, Trustee
Florida 520
Buenos Aires
MOLINOS RIO: Reverses Last Year's First-Half Loss
-------------------------------------------------
Packaged food producer Molinos Rio de la Plata saw a significant
improvement in its financial results in the first half of 2005.
According to Dow Jones Newswires, Molinos finished the first
half of the year with a net profit of ARS36 million, reversing a
net loss of ARS11.7 million in the year-earlier period.
Operating profit for the first half of 2005 rose to ARS30.3
million from ARS7.6 million a year ago, on an improvement in
margins in the Company's sunflower and soy businesses.
Sales revenue totaled ARS1.232 billion and exports accounted for
60% of that figure, Molinos said. Sales of the Company's branded
goods rose 5% to ARS609.2 million.
Meanwhile, the peso's appreciation against the dollar during the
first half of the year generated an ARS8.3 million gain for
Molinos. The local currency gained 3% on the dollar in the first
six months of 2005.
Molinos' controlling shareholder is Perez Companc Family Group
(PCFG) with a 64% stake. The remaining stock trades publicly in
the local stock market.
CONTACT INFO: Molinos Rio de la Plata S.A.
Uruguay 4075 CP (B1644HKG)
Victoria
Pcia. de Buenos Aires
Argentina
Telephone: 54-11-4340-1100
Contacts:
Maria Soledad Kern
Investors Service
Tel: (0054)-(11)-4340-1592
E-mail: maria.soledad.kern@molinos.com.ar
NEGOCIOS INTERNACIONALES: Informative Assembly Set
--------------------------------------------------
The informative assembly for the Negocios Internacionales Sur de
America S.A. insolvency case is set on Nov. 15, 2005, says
Infobae. In the said assembly, the Company will present to its
creditors the completed settlement plan for approval. This is
the final stage of a reorganization.
Negocios Internacionales Sur de America S.A. began the
reorganization following the approval of its petition by Court
No. 2 of Mendoza's civil and commercial tribunal.
NIDERRA S.R.L.: Files Petition to Reorganize
--------------------------------------------
Niderra S.R.L. filed a "Concurso Preventivo" motion, reports
Infobae. The Company is seeking to reorganize its finances
following cessation of debt payments. The Company's case is
pending before Court No. 26 of Buenos Aires' civil and
commercial tribunal. Clerk No. 52 assists the court with on the
case.
CONTACT: Niderra S.R.L.
Monroe 2639
Buenos Aires
PEDALEANDO S.A.: Bankruptcy Process Begins By Court Order
---------------------------------------------------------
Buenos Aires' civil and commercial Court No. 19 declared
Pedaleando S.A. "Quiebra," reports Infobae. The declaration
signals the Company to proceed with the bankruptcy process,
which will close with the liquidation of its assets.
The court, assisted by Clerk No. 37, appointed Mr. Carlos
Enrique Wulff as receiver who will authenticate proofs of claim
until Sep. 26, 2005. Afterwards, the receiver will prepare the
individual reports based on the results of the authentication
and then submit these reports to court on Nov. 8, 2005. After
these results are processed in court, the receiver will then
submit the general report on Dec. 20, 2005.
CONTACT: Mr. Carlos Enrique Wulff, Trustee
Virrey del Pino 2354
Buenos Aires
SIDERAR S.A.I.C.: Net Sales Up 44% in Six Months
------------------------------------------------
Siderar S.A.I.C. (Buenos Aires Stock Exchange: ERAR), announced
on August 5, 2005 its results for the six months and second
quarter ended June 30, 2005.
Highlights: six months ended June 30, 2005
- Net sales of ARP2,361.5 million, up 44% from ARP1,641.0
million the same period last year
- Operating income of ARP887.9 million, up 47% from ARP602.4
million
- EBITDA of ARP1,011.0 million (43% of net sales), up 44% from
ARP702.4 million (43% of net sales)
- Net income of ARP758.5 million, up 33% from 568.6 million. Net
earnings per share of ARP2.1828 (ARP17.4627 per ADS)
During the period the Argentine economy continued showing
positive signs of growth. Industrial activity grew 7.2% in the
period compared to the previous year, as measured by the EMI
index. In the international scenario, although steel demand grew
9% in the period, prices weaken as a result of the increase in
world steel production capacity.
Outlook
In the domestic Argentine market, steel products demand
conditions remain stable, supported by the activity level of the
construction and industrial sectors.
With respect to the international markets, the increase in
production capacity, mainly in China, has generated recent signs
of price weakening in the United States and Europe that resulted
in production cuts announcements by the main steel companies in
these regions. The increase in raw material prices for the iron
ore and coal international markets for the year 2005, is acting
as a downward containment factor for steel prices, and favoring
the reduction of inefficient production capacity.
In this scenario it is necessary, on one hand, to closely watch
the balance between the offer and the demand of steel products
in the different regions, and its ability to absorb these
production increases without considerably affecting the level of
international prices. On the other hand, it is necessary to
generate higher efficiencies in Siderar to partially offset the
higher costs of raw materials that the Company will bear this
year.
Results for the Six Months ended June 30th, 2005 vs. the Six
Months ended June 30, 2004 Siderar recorded a net income of
ARP758.5 million in the period. In the same period the previous
year the net income was ARP568.6 million. The improvement was
mainly due to a higher operating result.
Earnings per share (EPS) and per ADS were a gain of ARP 2.1828
and ARP17.4627 respectively based on a total of 347,468,771
shares outstanding as of June 30th, 2005. Each ADS represents 8
(eight) class "A" shares.
Total shipments were 1,203 thousand tons, up 11% compared to
those of the previous year, as a result of higher production
levels, mainly due to the simultaneous operation of the two
blast furnaces.
Domestic market shipments totaled 775 thousand tons, down 3%
compared to those of the previous year. The auto industry was
the fastest growing sector in the first six months with steel
shipments increasing by 23 thousand tons. The rebound of the
auto domestic demand and higher exports are among the main
factors behind the improvement. New projects announced in this
sector led to the approval of investments in the electro
galvanized line in order to increase its production capacity and
meet the expected future demand of the industry.
Export shipments totaled 428 thousand tons including 56 thousand
tons of slabs, an increase of 46% compared to the same period
the previous year.
Net sales were ARP2,361.5 million compared to ARP1,641.0 million
in the same period the previous year. This significant
improvement is the result of higher prices and higher export
shipments.
Cost of sales was ARP1,340.1 million (57% of net sales) compared
to ARP942.2 million (57% of net sales) the previous year. In the
period prices were higher for raw materials (such as iron ore,
metallurgical coal and coke), and for freights, together with
higher domestic costs such as supplies, energy, services and
labor.
Selling, general and administrative expenses in the period were
ARP133.4 million (6% of net sales), compared to ARP96.4 million
(6% of net sales) in the previous year. The increase is mainly
due to higher export related expenses, the impact of the
dividend and income tax payments on the tax on financial
transactions, and the increase in salaries.
Operating profit was ARP887.9 million (38% of net sales)
compared to ARP602.4 million (37% of netsales) the previous
year. EBITDA was ARP1,011.0 million and EBITDA margin was 43% in
the period, which compares to an EBITDA margin of 43% in the
previous year.
Financial and holding results were a gain of ARP185.0 million.
This result includes a gain of ARP9.4 million in net financial
results, a loss of ARP11.8 million in foreign exchange rate
differences as a result of the Argentine Peso appreciation, and
a gain of ARP187.4 million in net inventory and spare parts
holding results, reflecting a higher price of raw materials and
some services. This result compares to a gain of ARP147.1
million the previous year. The difference is mainly due to a
gain of ARP34.5 million in net inventory and spare parts holding
results, a gain of ARP23.6 million due to the lower
indebtedness, and a loss of ARP29.0 million in foreign exchange
rate differences as a result of the Argentina Peso appreciation.
Other income and expenses represented a net loss of ARP31.4
million, compared to a net loss of ARP21.7 million the previous
year. The increase was mainly the result of higher contingency
provision charges.
The income tax of the period was ARP408.6 million, including an
income tax provision charge of ARP387.0 million, and a deferred
tax provision charge of ARP21.5 million. The previous year the
income tax was ARP268.6 million, including an income tax
provision charge of ARP278.4 million and a deferred tax
provision recovery of ARP9.7 million. The tax increase is due to
higher results.
Amazonia and Ylopa equity holdings result for the period,
generated by their participation in Sidor, was a gain of
ARP125.6 million. The result in the same period last year was a
gain of ARP109.6 million.
The improvement was mainly due to a higher operating result in
Sidor. Additionally, as a result of the depreciation of the
Venezuelan Bolivar, Siderar recorded a negative conversion
difference of ARP130.4 million. Siderar's investment in Amazonia
and Ylopa as of June 30, 2005 amounted to ARP439.3 million.
During the period the operating cash flow was ARP1,120.8
million. The most relevant uses were ARP557.2 million income tax
payments for fiscal year 2004, ARP299.9 million dividend
payments, ARP142.4 million increases in cash, ARP188.5 million
investments in fixed and intangible assets, and ARP154.2 million
increases in inventories.
The ARP149.6 million invested in the period included the
expansion of the coke producing facilities with the start up of
the #2 battery and the construction of the new #5 battery, the
new transverse cutting line, and the #1 boiler. Information
technology investments were ARP13.2 million.
On May 18th Siderar's controlling shareholder, Industrial
Investments Inc. (I.I.I.) announced that it reached an agreement
with Alfa S.A. de C.V. (Alfa), for the acquisition of Alfa's
42.5% stake in Hylsamex, a Mexican steel producing company whose
shares are listed in the Bolsa de Valores de Mexico. The offer
will be extended to the remaining shareholders through a tender
offer at the Bolsa de Valores de Mexico, which has been
authorized by the Comision Nacional Bancaria y de Valores of
Mexico, and will expire on August 16th, 2005.
Hylsamex is the Latin steel conglomerate with the highest
vertical integration, with industrial facilities in the cities
of Monterrey and Puebla, Mexico, its activities include from
mining to the production of high value added products such as
construction panels and welded pipes. It has annual steel
rolling capacity of 2.2 million tons of flat products, and of
1.0 million tons of long products.
The total amount agreed for the transaction, if the tender offer
is accepted by 100% of Hylsamex shareholders, is USD2,110
million. Siderar S.A.I.C. will participate in the transaction
together with I.I.I., and committed to acquire up to 30% of
Hylsamex shares, for a maximum amount of USD633 million.
Siderar obtained a financing agreement for a maximum amount of
USD380 million destined to the future acquisition of Hylsamex
shares in the context of the above-mentioned tender offer. The
net amount of the transaction will be financed with company
cash.
On May 19th, 2005, Siderar and Acindar signed a letter of intent
with the purpose of regulating an evaluation and analysis
procedure that could conclude in Siderar's acquisition of
facilities and other assets for the production of steel tubes
and shapes for a total amount of USD55 million, subject to
possible adjustments. The facilities are located in Rosario,
Santa Fe Province, property of Acindar, and in San Luis
Province, property of Acindar's affiliate Impeco S.A. The
facilities that Siderar would be incorporating to its industrial
system have a combined 140 thousand tons production capacity of
structural tubes for the construction, agricultural and metal
mechanic sectors. The realization of the transaction is subject
to the result of the negotiation of the terms and conditions of
the agreement, and its approval by the Comision Nacional de
Defensa de la Competencia.
Results for the Second Quarter ended June 30th, 2005 vs. the
Second Quarter ended June 30th, 2004 Siderar recorded a net
income of ARP341.4 million in the quarter. In the same period
the previous year the net income was ARP362.9 million. Lower
Ylopa and Amazonia equity holding results for their
participation in Sidor were partially compensated by higher
operating results. Earnings per share (EPS) and per ADS were a
gain of ARP 0.9826 and ARP7.8608 respectively based on a total
of 347,468,771 shares outstanding as of June 30th, 2005. Each
ADS represents 8 (eight) class "A" shares.
Total shipments were 606 thousand tons, up 15% compared to the
same period the previous year as a result of higher production
levels, mainly due to the simultaneous operation of the two
blast furnaces.
Domestic market shipments totaled 395 thousand tons, down 5%
compared to the same quarter last year.
Export shipments totaled 211 thousand tons including 27 thousand
tons of slabs, an increase of 88% compared to the same period
the previous year.
Net sales were ARP1,177.8 million compared to ARP853.6 million
in the same period the previous year.
This significant improvement is mainly the result of better
steel product prices and higher export shipments.
Cost of sales in the quarter were ARP718.4 million (61% of net
sales) compared to ARP479.7 million (56% of net sales) in the
same period the previous year. In the period prices were higher
for raw materials (such as iron ore, metallurgical coal and
coke), and for freights, together with higher domestic costs
such as supplies, energy, services and labor.
Selling, general and administrative expenses in the quarter were
ARP75.3 million (6% of net sales), compared to ARP48.8 million
(6% of net sales) in the previous year. The increase is mainly
due to higher export related expenses, the impact of the
dividend and income tax payments on the tax on financial
transactions, and the increase in salaries.
Operating profit was ARP384.0 million (33% of net sales)
compared to ARP325.1 million (38% of net sales) the previous
year. EBITDA was ARP447.1 million and EBITDA margin was 38% in
the period, which compares to an EBITDA margin of 44% in the
previous year.
Financial and holding results were a gain of ARP95.9 million.
This result includes a gain of ARP4.8 million in net financial
income, a loss of ARP4.4 million in net foreign exchange rate
differences as a result of the Argentine Peso appreciation, and
a gain of ARP95.5 million in net inventory and spare parts
holding results, reflecting mainly the increase in the
international price of raw materials and some services. This
result compares to a gain of ARP85.5 million last year. The
difference compared to the previous year is mainly a gain of
ARP12.5 million in net inventory and spare parts holding
results, a gain of ARP10.3 million due to the lower
indebtedness, and a loss of ARP16.8 million in net foreign
exchange rate differences as a result of the Argentine Peso
appreciation.
Other income and expenses represented a net loss of ARP15.7
million in the quarter, compared to a net loss of ARP 13.4
million in the same period the previous year.
The income tax of the period was ARP196.4 million, including an
income tax provision charge of ARP168.1 million, and a deferred
tax provision charge of ARP28.3 million. In the same period the
previous year the income tax was ARP144.1 million, including an
income tax provision charge of ARP167.8 million, and a deferred
tax provision recovery of ARP23.8 million. The tax increase is
the result of a higher net income.
Amazonia and Ylopa equity holdings result for the quarter,
generated by their participation in Sidor, was a gain of ARP73.7
million compared to a gain of ARP109.8 million in the same
period the previous year, the latter including a partial
recovery of an impairment provision recorded by Amazonia.
CONTACT: Siderar S.A.I.C.
Leonardo Stazi (CFO)
Pablo Brizzio (Financial Manager)
Guillermo Etchepareborda (IR)
54 (11) 4018-2308 / 2434 / 2752
URL: http://www.siderar.com
SUBOR S.A.: Bankruptcy Initiated on Court Orders
------------------------------------------------
Subor S.A. enters bankruptcy protection after Court No. 23 of
Buenos Aires' civil and commercial tribunal, with the assistance
of Clerk No. 46, ordered the Company's liquidation. The order
effectively transfers control of the Company's assets to a
court-appointed trustee who will supervise the liquidation
proceedings.
The court-selected trustee will be verifying creditors' claims
and prepare the individual and general reports as required by
the Argentine bankruptcy law. The individual reports are based
on the forwarded claims, while the general report contains an
audit of the Company's accounting and business records.
TELECOM ARGENTINA: May Form Partnership With Antel
--------------------------------------------------
Analysts expressed differing views on reports that Uruguayan
state-owned telco Antel and Telecom Argentina (NYSE: TEO) are in
serious talks to form a partnership, reports Business News
Americas. According to Marc Einstein, senior consultant at
Pyramid Research, a partnership with Telecom is unlikely, since
it is a unit of Telecom Italia (NYSE: TI).
"An alliance with Telecom Argentina is most likely a rumor,
since TI has shown intent to leave the region. It is no rumor
that its subsidiaries TIM Peru and Telecom Argentina are up for
sale," Mr. Einstein told Business News Americas.
It is more likely that Antel would be acquired by Spain's
Telefonica (NYSE: TEF) or Mexico's America Movil (NYSE: AMX) and
sister company Telmex (NYSE: TMX), "since they are [a lot more
engaged in] pursuing fixed line players in the region," he said.
On the other hand, Jose Otero, president of Signals Telecoms
Consulting, expects both companies to hammer a partnership
agreement considering that Telecom Argentina already has several
mutual agreements with Antel.
Through their mobile units Movistar and CTI Movil, Telefonica
and America Movil are treating Uruguay as a prolongation of
their Argentine operations, so a similar, geographical
partnership between Telecom and Antel makes all the sense in the
world, he said.
"Telefonica and America Movil might be interested [in Antel]
because they both are interested in complementing their
fixed/mobile businesses, but there is no will to privatize in
Uruguay, since the political cost of privatization would be too
high," Mr. Otero said.
Einstein also said an acquisition by AMX or TEF would have
political implications and might lead to public opposition, as
well as creating market concentration.
"Given that Antel is the fixed incumbent they do not desperately
need a partner, but it will be [increasingly] difficult for them
to actively compete in the mobile market. If you look at Ola in
Colombia and Alegro PCS in Ecuador, these are mobile branches
that are owned by state-owned fixed players and they are having
serious trouble," he added.
CONTACT: Telecom Argentina S.A.
Alicia Moreau de Justo 50, 10th Floor
Capital Federal (1107) Republica Argentina
Phone: +54 11 4968 4000
Web Site: http://www.telecom.com.ar
VINTAGE PETROLEUM: Announces Recent Acquisition Activity
--------------------------------------------------------
Vintage Petroleum, Inc. (NYSE:VPI) announced Tuesday the results
of recent acquisition activity involving multiple agreements to
acquire certain oil and gas producing properties in the Mid-
Continent, Permian and Southeastern regions of the U.S. The
combined cost of the acquisitions is approximately $67.4
million, subject to adjustment. Acquisitions totaling about
$15.2 million have been closed with the remainder scheduled to
close prior to Sept. 1, 2005, subject to normal due diligence.
Based on company estimates, the properties contain approximately
8.7 million barrels of oil equivalent (BOE) of proved reserves
(60 percent gas), with 69 percent representing proved developed
non-producing and proved undeveloped upside potential. Aggregate
current net daily production of oil and gas is approximately 845
BOE (65 percent gas). Vintage believes the properties contain
significant drilling and work over potential which it plans to
pursue in the near-term along with the implementation of
operational efficiencies.
"The acquired properties are a logical extension to our existing
domestic exploitation property base and are characterized by
well established, predictable production profiles. These
properties also provide Vintage with the type of operational and
work program opportunities in which we have excelled
historically," said Charles Stephenson, CEO. "In addition, the
company continues to actively pursue additional acquisition
possibilities, both domestic and international, and is currently
evaluating several U.S. opportunities."
Vintage Petroleum, Inc. is an independent energy company engaged
in the acquisition, exploitation and exploration of oil and gas
properties and the marketing of natural gas and crude oil.
Company headquarters are in Tulsa, Okla., and its common shares
are traded on the New York Stock Exchange under the symbol VPI.
CONTACT: Vintage Petroleum, Inc., Tulsa
Robert E. Phaneuf
Phone: 918-592-0101
URL: www.vintagepetroleum.com
=============
B A H A M A S
=============
LOM HOLDINGS: Tied to Internet Firm Being Investigated By SEC
-------------------------------------------------------------
Bermuda-based Lines Overseas Management (LOM) is being linked to
an Internet company, which is currently under investigation by
the US Securities and Exchange Commission for unusual trading
activity and possible ties to a convicted Canadian stock
manipulator.
Royal Gazette reports that the SEC launched an investigation
into search engine Mamma.com - a small competitor to Google,
Yahoo and MSN - after the Company's share price jumped more than
300% from US$3.91 to US$15.80 between March 2-3, 2004.
LOM's relationship to Mamma.com dates back to a private
placement agreement signed by recently departed LOM president
Brian Lines in October 2002. The agreement made LOM a special
advisor to assist in securing purchasers and closing the sale of
up to 2.1 million units at a price of US$1.32 each. It also
stipulated that the units were to be issued under Regulation S,
which is an SEC exemption, which allows corporations to issue
unregistered securities to non-American investors. Under Bahamas
law, the investors' identities are also protected.
The Montreal newspaper La Presse recently reported that 15
anonymous investors bought 1.9 million units for US$2.5 million.
Each unit came with two warrants, allowing investors to purchase
a share of common stock at US$1.40 and a subsequent share at
US$1.50 giving them the option to buy a total of some 5.8
million shares of Mamma.com for around $8 million US. All of
these options had been exercised by the end of 2003, just months
before the bubble brought shares of Mamma.com to a peak of
US$17.49 on April 8 last year.
The LOM-facilitated placement doubled the number of shares in
circulation to some 12 million and no other financing for
Mamma.com, before or after it, has come close.
CONTACT: LOM Group
The LOM Building
27 Reid Street
Hamilton HM 11
Bermuda
Tel: 441 292 5000
Fax: 441 295 3343
E-mail: info@lom.com
LOM Asset Management Limited
Tel: 441 296 5802
Fax: 441 296 5597
E-mail: lomam@lom.com
LOM Securities (Bahamas) Limited
Millennium House
P.O. F42498-350
Freeport, Grand Bahama
Bahamas
Tel: 242 351 5000
Fax: 242 351 7738
E-mail: info.bahamas@lom.com
=============
B O L I V I A
=============
AGUAS DEL ILLIMANI: Government, Suez to Decide on Fate Aug 15
-------------------------------------------------------------
The Bolivian government and French energy group Suez will decide
on La Paz waterworks company Aguas del Illimani's (Aisa) fate on
August 15, according to a public works and services ministry
official.
Citing the official, Business News Americas reports that both
parties are yet to complete negotiations on a possible
government buyout of Suez's stock in AISA and on the nature of
an audit to determine the value of that share.
A three-man transition team has been appointed to audit Aisa's
books and inspect the condition of the potable water and
sanitation infrastructure and service to determine levels of
investment since the concession began in 1997, according to an
official from regulator Sisab.
The government has been insisting that the audit cover the whole
period of the concession because it is important to establish
the source of funds used in infrastructure investment to ensure
they did not come from water rates.
===========
B R A Z I L
===========
CSN: Seen Likely Target by Mittal
---------------------------------
A BES Securities analyst sees integrated steelmaker CSN (NYSE:
SID) as a likely target by multinational giant Mittal (NYSE:
MT), which is looking to snap up smaller steelmakers, suggests
Business News Americas.
"Mittal likes these kinds of companies, integrated steelmakers,"
Elaine de La Rocque said when asked about speculation that CSN
is in acquisition talks with steelmaker Mittal. "CSN has its own
source of iron ore and its integration would make it an
attractive target for Mittal."
However, the analyst doesn't see CSN president Benjamin
Steinbruch selling the business.
"I do not see him exiting the business, but that would depend on
the price. Prices for steelmakers are really at a peak, so now
would be a good time to sell if he wanted to sell," she said.
Also, CSN's structure makes the sale "complicated" given the
fact that holding company Vicunha Siderurgia has the Steinbruch
family's controlling stake in CSN, Ms. La Rocque said.
CONTACT: Mr. Marcos Leite Ferreira
CSN - Investor Relations
Phone: (55 11) 3049-7591
E-mail: marcos.ferreira@csn.com.br
Web site: http://www.csn.com.br/
ELETROPAULO METROPOLITANA: Posts BRL136.8 Mln 2Q05 Net Profit
-------------------------------------------------------------
Electric power utility Eletropaulo Metropolitana de Eletricidade
SA's net profits ballooned to BRL136.8 million in the second
quarter of 2004 from BRL8.06 million in the same year-ago
quarter. The Company attributed the rise in net profits to its
net revenues, which soared to BRL2.29 billion in the recent
quarter from BRL1.72 million a year ago.
Operating profit during the second quarter was up at BRL425.2
million compared to BRL99.6 million a year ago.
Earnings before interest, tax, depreciation and amortization, or
EBITDA, was BRL571.6 million during the quarter, up 80% from
BRL317.6 million in the second quarter of 2004.
The firm's EBITDA margin over net revenues, a measure of
profitability, rose to 25.1% during the second quarter, up from
18.5% a year ago.
Compared with a year ago, revenues and EBITDA were boosted by
price adjustments awarded by the regulator, Aneel, in July and
September 2004, and partly offset by higher costs.
Eletropaulo is controlled by a joint venture of AES Corp (AES)
and Brazil's National Development Bank (BNDES).
CONTACT: Eletropaulo Metropolitana Eletricidade de Sao Paulo S/A
Investor Relations Manager
Ms. Clarice Silva Assis
E-mail: clarice.assis@aes.com
Phone:(55 11) 2195-2229
Fax:(55 11) 2195-2503
EMBRATEL: Net Revenues Reach $1,859M in 2Q05
--------------------------------------------
Highlights
- EBITDA was R$422 million in the second quarter and R$887
million in the first half of 2005.
- Operating income was R$155 million in the second quarter and
R$349 million in the first half of 2005.
- Net income was R$94 million in the second quarter of 2005 and
R$137 million year-to-date.
- Net debt totaled R$682 million at June 30, 2005.
- Embrapar increased R$1,823 million to its capital base during
the quarter, using the funds to reduce outstanding debt.
Total Net Revenues
In the second quarter of 2005, total net revenues were R$1,859
million, an increase of 2.9 percent compared with the second
quarter of 2004. Higher revenues resulted from a 32.6 percent
increase in other services revenues, a 1.3 percent increase in
long distance voice revenues and a 1.5 percent increase in data
revenues.
Compared with the first quarter of 2005, total net revenues
declined 2.0 percent. A 12.3 percent growth in local revenues
and a 6.1 percent increase in other services revenues helped to
offset a 4.1 percent decline in long distance voice revenues and
a 2.0 percent decrease in data communications revenues.
Year-to-date, total net revenues were R$3,756 million, an
increase of 1.5 percent compared with the first half of 2004 due
to a 4.6 percent increase in data revenues, a 29.4 percent
increase in other services revenues and an 8.8 percent increase
in local services revenues, which offset a 1.6 percent decline
in long distance voice revenues.
Data Communications
In the second quarter of 2005, 102.8 thousand 64kbits line
equivalents were added. At the end of June 2005, Embratel had
1,221.2 thousand 64kbit line equivalents providing data services
to business customers. Year-over-year, 64kbit line equivalents
in service increased 60.2 percent.
Embratel's second quarter data communications revenues were
R$438 million, a year-over-year increase of 1.5 percent.
Compared with the first quarter of 2005, data revenues declined
2.0 percent due to one-time R$9 million revenue recorded for
Internet services provided which occurred in the first quarter
of 2005. Excluding that amount, data revenues would have been
flat quarter-to-quarter.
In the first half of 2005, data revenues rose 4.6 percent to
R$886 million.
Domestic Long Distance
In the second quarter of 2005, domestic long distance traffic
totaled 3,095 million minutes, a gain of 3.6 percent compared
with the first quarter 2005.
Domestic long distance revenues were R$1,013 million, a 3.5
percent increase compared with the second quarter of 2004,
benefiting from tariff increases which occurred in the second
half of 2004.
Compared with the first quarter of 2005, domestic long distance
revenues decreased 2.7 percent as a result of lower average
revenue per minute due to the competitive environment.
Year-to-date, domestic long distance revenues were R$2,053
million, flat compared with the prior year period.
International Long Distance
International long distance traffic totaled 600 million minutes,
flat compared with the previous 2005 quarter but up 59.9 percent
from the year-earlier quarter because of higher inbound traffic.
Year-over-year, second quarter international long distance
revenues fell 10.1 percent to R$169 million due to tariff
declines and the effect of the Real's appreciation. Compared
with the first three months of the year, second quarter
international long distance revenues decreased 11.9 percent due
to the effect on inbound revenues of the appreciation of the
Real to the US dollar.
In the first half of 2005, international long distance revenues
declined 7.8 percent to R$360 million reflecting lower tariffs
and local currency appreciation.
Local Services
Revenues from local services gained 8.3 percent to R$168 million
compared with last year's second quarter due to the growth in
the customer base and local traffic. Compared with the first
quarter of 2005, local revenues rose 12.3 percent reflecting a
growing corporate customer base, higher traffic and increased
handset sales. Growth of the customer base and local traffic
also produced an 8.8 percent increase to R$317 million in the
first half of 2005.
Cost and Expenses
Interconnection
Interconnection costs rose to R$894 million in the second
quarter, an increase of 5.4 percent compared with the second
quarter of 2004. On a sequential-quarter basis, interconnection
increased 3.0 percent due to traffic growth. The telco ratio
rose to 48.1 percent of net revenues in the second quarter
compared with 45.7 percent in the first quarter of 2005. The
higher telco ratio reflected lower average revenue per minute.
Year-to-date, interconnection costs were R$1,761 million, up 4.2
percent.
Costs of Services (excluding interconnection)
Year-over-year cost of services (excluding interconnection) rose
2.4 percent mainly due to higher energy, transport of equipment
and equipment inventory costs. Compared with the first three
months of 2005, cost of services (excluding interconnection)
rose 28.4 percent to R$183 million.
The main factor in the increase were higher third party expenses
related to data and local service installations since the
company has been increasing the number of customers. During the
quarter, cost of services increased due to more handset sales
because of the growth in the wireless local loop customer base.
Year-to-date, cost of services excluding interconnection were
R$325 million declining 4.2 percent compared with the first half
of 2004 due to lower handset sales.
Selling Expenses
Selling expenses were R$200 million in the second quarter of
2005, a decline of 7.0 percent due to a lower provision for
doubtful accounts compared with the year-ago quarter. Compared
with the first quarter of 2005, selling expenses declined 11.6
percent. The decrease was entirely due to a reduction in the
provision for doubtful accounts. Continued efforts to solve
various billing issues related to mobile originated long
distance calls have led to agreements between Embratel and
certain mobile operators and improvement in collection of co-
billed mobile revenues which enabled Embratel to record a non-
recurring lower allowance for doubtful accounts. A complete
solution of these issues will require continued effort by the
company.
In the first half of 2005, selling expenses declined 1.1 percent
to R$426 million.
General and Administrative Expenses
General & administrative expenses were R$193 million, decreasing
38.8 percent from the second quarter of 2004. Excluding
retention plan payment of R$92 million in the second quarter of
2004, general and administrative expenses declined 13.5 percent
mainly due to actions taken by management to reduce third party
and personnel expenses. Compared with the first quarter of
2005, general and administrative expenses increased 3.2 percent.
For the first half of 2005, general and administrative expenses
declined 31.4 percent to R$380 million. Excluding retention
payments, general and administrative expenses dropped 17.7
percent.
Other Operating Income and Expense, net
Embratel recorded other operating income of R$32 million in the
second quarter related to past period revenues recorded as a
result of agreements with two cellular operators with respect to
the co-billing of mobile-originated long distance calls. In the
second quarter of 2004, Embratel recorded operating income of
R$97 million due to non-recurring reversals made in that quarter
EBITDA, EBIT and Net Income
Compared with the second quarter of 2004, EBITDA increased 21.5
percent to R$422 million. The EBITDA margin rose to 22.7 percent
from 19.2 percent a year-ago. Compared with the first quarter of
2005, EBITDA declined 9.2 percent.
For the first half of 2005, EBITDA increased 11.4 percent to
R$887 million compared with the year ago period.
Operating income (EBIT) was R$155 million in the second quarter,
improving 167.8 percent compared with the second quarter of 2004
but down 20.1 percent compared with the first quarter of 2005.
Year-to-date, operating income was R$349 million, an increase of
63.5 percent compared with the first half of 2004.
"Net Financial Expense", including monetary and exchange
variation, was positive by R$7.2 million due to a 11.8 percent
appreciation of the Real to the US dollar and resulting exchange
gains on the company's unhedged foreign currency debt. Year-
over-year and year-to-date, the company benefited from the
effect of the appreciation of the Real on its foreign currency
debt as well as overall debt reduction.
Net income rose to R$94 million in the second quarter of 2005
compared with R$43 million in the first quarter of 2005. In the
first half of 2005, net income was R$137 million.
Financial Position
At June 30, cash position was R$671 million. Embrapar ended the
quarter with a total outstanding debt of R$1.4 billion and net
debt of R$682 million. Short-term debt (accrued interest, short-
term debt and current maturity long-term debt in the next 12
months) was R$438 million. During the quarter, Embrapar received
R$1.8 billion from the capital increase that took effect on May
23, 2005 and used the funds to redeem 35 percent of the
outstanding guaranteed notes (approximately R$275 million), paid
down R$1.0 billion of local commercial paper and pre-paid US$165
million of short -term debt.
Capex
Total capital expenditures in the second quarter of 2005 were
R$378 million. The breakdown is as follows: local
infrastructure, access and services- 21.0 percent; data and
Internet services - 17.5 percent; network infrastructure - 2.4
percent, others - 10.7 percent, and Star One - 48.4 percent.
In the first half of 2005 capital expenditures were R$596
million.
Possible Acquisitions
On May 23, 2005 Embrapar's Board of Directors authorized the
company to conduct studies in order to determine whether it
would be advantageous to the company to acquire from Telmex a
controlling stake in Telmex do Brasil and 37.1% participation in
Net Servicos. Additionally, the Board stated that should these
acquisitions occur, they should be made through another capital
increase at Embrapar with the issuance of new ordinary shares.
Embrapar is in the process of conducting these studies.
Capital Increase
On May 23, Embrapar concluded a R$1.8 billion capital increase
raising the company's capital base from R$2.3 billion to R$4.1
billion and the total number of outstanding shares to 758.3
billion (282 billion ordinary and 476.3 billion preferred).
Under the company's current ownership structure, Telmex is the
controlling shareholder with 63.9 percent (95.1 percent ordinary
and 45.4 percent preferred) and, excluding treasury stock, the
remaining 35.9 percent is market float.
Embratel is the premier communications provider in Brazil
offering a wide array of advanced communications services over
its own state of the art network. It is the leading provider of
data and Internet services in the country and is well positioned
to be the country's only true national, local service provider
for corporate customers. Service offerings: include telephony,
advanced voice, high-speed data communication services,
Internet, satellite data communications, corporate networks and
local voice services for corporate clients. Embratel is uniquely
positioned to be the all-distance telecommunications network of
South America. The Company's network has countrywide coverage
with 28,868 km of fiber cables comprising 1,068,657 km of optic
fibers.
Embratel Participacoes S.A. (Embratel Participacoes or
"Embrapar") holds 99.0 percent of Empresa Brasileira de
Telecomunicacoes S.A. (Embratel).
CONTACT: Embratel
Investor Relations
Phone: (5521) 2121-6474/2121-9662
Fax: (5521) 2121-6388
E-mail: invest@embratel.com.br
URL: www.embratel.com.br
LOCALIZA RENT: Reports Net Income of R$31.4 Mln
-----------------------------------------------
Localiza Rent A Car S.A. (Bovespa: RENT3), the largest car
rental network in Latin America with 32 years of existence,
reported Tuesday its results for the second quarter of 2005
(2Q05). The following financial and operational information,
except when otherwise indicated, is presented in US GAAP and in
Brazilian reais (R$); the comparisons refer to the second
quarter of 2004 (2Q04).
2Q05 HIGHLIGHTS
-- Net income in 2Q05 grew by 8.5% over the R$28.9 million in
2Q04 and 20.7% over the R$26.0 million in 1Q05. Earnings per
share were R$0.50;
-- EBITDA (R$59.5 million) was 34.5% higher than in 2Q04
(R$44.2million) and 20.9% lower than in 1Q05 (R$75.2 million);
-- Car rental and fleet rental and management reported a 26%
growth in revenue when compared to the previous year;
-- In the car rental segment, volume of business increased 43%
when compared to 2Q04;
-- In the fleet rental and management business, volume of
business increased 12% when compared to 2Q04;
Localiza operates in the car rental and fleet rental business
and in the fleet management and franchising of those businesses.
With 32 years of existence and 307 branches, Localiza is
currently the largest car rental in Latin America in number of
agencies and the pioneer in fleet rental and management business
in Brazil. Localiza is part of BOVESPA's Novo Mercado and is
listed under the ticker "RENT3".
CONTACT: Localiza Rent A Car S.A.
Priscilla Duarte
Tel: +5531-3247-7879, +5531-3247-7684
Fax: priscila@localiza.com
Investors: Silvio Guerra
Tel: +5531-3247-7055
E-mail: ri@localiza.com
NII HOLDINGS: Proceeds With Convertible Note Offering
-----------------------------------------------------
NII Holdings, Inc. (Nasdaq: NIHD) announced Tuesday its
intention to sell, subject to market and other conditions,
approximately $300 million principal amount of convertible notes
due 2025, to qualified institutional buyers pursuant to Rule
144A under the Securities Act of 1933, as amended. In addition,
NII is expected to grant the initial purchaser an option to
purchase up to an additional $50 million principal amount of the
notes. The terms of the notes to be offered will be determined
by negotiations between NII and the initial purchaser of the
notes.
NII intends to use the proceeds of the offering primarily for
general corporate purposes, which may include, without
limitation, expansion of its existing network, either through
capital expenditures for internal expansion or acquisitions of
other operators, refinancing or repayment of outstanding
indebtedness, or other purposes.
The notes being offered and the common stock issuable upon
conversion of the notes have not been registered under the
Securities Act of 1933, as amended, or any state securities
laws, and may not be offered or sold in the United States absent
registration under, or an applicable exemption from, the
registration requirements of the Securities Act of 1933, as
amended, and applicable state securities laws.
CONTACT: NII Holdings
Investor Relations
Tim Perrott
Phone: (703) 390-5113
E-mail: tim.perrott@nii.com
Media Relations
Claudia E. Restrepo
Phone: (786) 251-7020
E-mail: claudia.restrepo@nii.com
URL: http://www.nii.com
=========
C H I L E
=========
COEUR D'ALENE: Reports Improved 2Q05, 6-Month Results
-----------------------------------------------------
Key Highlights
- 76% increase in quarterly earnings before interest, taxes,
depreciation, and pre-development costs to $7.2 million versus
earnings before interest, taxes, depreciation, and pre-
development costs of $4.1 million during last year's 2nd quarter
- 56% increase in earnings before interest, taxes, depreciation,
pre-development costs and one-time litigation settlement for the
first six months of $15.3 million versus $9.8 million during the
first six months of 2004
- $1.5 million net loss for the quarter (versus a net loss of
$5.4 million in the 2nd quarter of 2004) included $3.7 million
of pre-development costs for Kensington. The final permits for
Kensington were obtained and the project entered the
construction phase commencing in the third quarter of 2005.
Net loss for the first six months of 2005 of $3.3 million
(versus a net loss of $7.1 million in last year's first six
months) included $6.1 million of pre-development costs related
to Coeur's Kensington project
- Quarterly silver production was 3.1 million ounces (compared
to 3.3 million silver ounces produced during the 2nd quarter of
2004)
6.0 million ounces of silver was produced during the first six
months of 2005 (compared to 6.8 million ounces produced during
the first six months of 2004)
Shortfall from North American operations on-track to be made up
in second half of 2005. Production expected to increase in the
second half of 2005.
Full year production expected to be approximately 13.5 million
ounces of silver and 130,000 ounces of gold during 2005.
- Quarterly gold production increased 8% to 30,300 ounces
(versus 28,037 ounces in last year's 2nd quarter)
19% increase in gold production during the first six months of
2005 to 59,723 ounces (compared to 50,149 gold ounces produced
during the first six months of 2004)
- Exploration program delivered substantial reserve increases at
South American operations during first six months
3.9 million ounces of silver reserves added
- Endeavor transaction in Australia completed
Transaction nominated for the "Dealer Award" at the Australian
Diggers and Dealers Conference
Expected to contribute nearly 700,000 silver ounces and over
US$4.0 million of operating cash flow to Coeur in 2005
Continuing to pursue other external opportunities that will
enhance Company cash flow and silver reserves and production
- $280.3 million of cash, cash equivalents and short-term
investments at June 30th
- Company signs MOU to explore opportunities in China
Coeur d'Alene Mines Corporation (NYSE: CDE; TSX: CDM), the
world's largest primary silver producer and a growing gold
producer, reported Tuesday a net loss of $1.5 million, or $0.01
per share, in the second quarter of 2005, compared to a net loss
of $5.4 million, or $0.03 per share, for the year-ago period.
Results for the current-year quarter included $3.3 million of
exploration expense associated with the successful ore reserve
expansion program and $3.7 million resulting from pre-
development activities at the Kensington gold project.
Revenue for the second quarter of 2005 was $38.3 million,
compared to $27.1 million in the year-ago period.
For the first six months of 2005, the Company reported a net
loss of $3.3 million, or $0.01 per share, compared to a net loss
of $7.1 million, or $0.03 per share, for the same period of
2004. Revenues were $76.4 million for the first six months of
2005, compared to $56.1 million in the year-ago period.
In commenting on the second-quarter operating results relative
to the year-ago period, Dennis E. Wheeler, Chairman, President
and Chief Executive Officer, said, "The Company reported a 76
percent increase in earnings before interest, taxes,
depreciation and pre-development activities. The improvement was
the result of increased shipments of silver and gold at prices
well above year-ago levels. These favorable results included
$3.3 million of exploration expenses."
Wheeler added, "With our continued robust cash position, we are
pleased by the accelerating progress the Company is making on a
number of key initiatives. In particular, we have completed the
Endeavor silver acquisition in Australia and have begun to see
the positive results of that transaction. In addition, as
previously reported, we have obtained final permits for the
Kensington gold project and have commenced construction
activities. We expect that project to start production in early
2007. Although we have made an upward revision to the estimated
capital cost and cash operating costs at Kensington, we are more
confident than ever in the economic and environmental soundness
of the project - and in the prospects for further conversion of
existing resources to reserves."
The Company currently expects full-year silver production to be
approximately 13.5 million ounces at a consolidated cash cost of
between $4.30 and $4.40 per ounce. The Company currently expects
full-year gold production to be approximately 130,000 ounces.
During the first quarter of 2005, the Company has segregated
operating statistics to conform to current year presentation.
On May 23, 2005, the Company acquired all of the silver
production and reserves contained at the Endeavor mine in
Australia, which is owned and operated by CBH Resources Ltd.
("CBH"), for $38.5 million.
Coeur's share of the silver production from May 23, 2005 to June
30, 2005 was 58,464 ounces at a cash cost of $1.89 per ounce,
representing Coeur's agreed upon operating costs contribution
including smelting and refining treatment charges.
Separately, Coeur has signed a one-year memorandum of
understanding with Shanghai Kuntai Non-Ferrous Metals Company,
Ltd., to establish a strategic alliance to identify silver
market investment, exploration, mining, and acquisition
opportunities primarily in China. Under the agreement, Kuntai
will identify a minimum of two specific opportunities for
consideration and would act as liaison for Coeur within the
Chinese business community and with various governmental bodies
-- and Coeur would agree to provide mining and exploration
expertise to evaluate such opportunities. If any commercially
viable opportunities are identified, the companies would expect
to participate as partners in developments costs, eventual
operating costs, and silver production.
Coeur d'Alene Mines Corporation is the world's largest primary
silver producer, as well as a significant, low-cost producer of
gold. The Company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile, Bolivia and Australia.
CONTACT: Coeur d'Alene Mines Corporation
Scott Lamb
Vice President of Investor Relations
Phones: 1-208-665-0777
===============
C O L O M B I A
===============
ECOPETROL: Seeks Foreign Partner in Cartagena Expansion Project
---------------------------------------------------------------
State oil firm Ecopetrol will open by the end of 2005 a bidding
process to choose an international partner in a new project that
will upgrade and expand its Cartagena refinery. Ecopetrol
President Isaac Yanovich said the international investor will
control 51% of the project, which is worth an estimated US$850
million. The remaining 49% would belong to Ecopetrol, which will
invest no more than US$250 million.
The balance required of Ecopetrol to fulfill the investment
implied in its stake will be financed with guarantees based on
Ecopetrol assets.
Ecopetrol will hold a road show at end-September for US
investors. The Company is currently evaluating potential
interest from European and Asian investors to see if the latter
would be invited to the US event, or if Ecopetrol would hold
separate road shows for them.
Ecopetrol will select the partner by the end of the first half
of 2006. The partner would have the right to review the basic
studies that Ecopetrol has already carried out.
The new project will expand Cartagena's refinery from 75,000
barrels a day to 140,000 b/d, producing a greater percentage of
low-sulfur fuel.
ECOPETROL: Progress on Gas Pipeline Project Delayed
---------------------------------------------------
Progress on a US$130-million Columbia-Venezuela gas pipeline
project that will see Colombia exporting natural gas to
Venezuela has been held up, Dow Jones Newswires reports.
Officials from both countries met five weeks ago, but according
to Empresa Colombiana de Petroleos (Ecopetrol) President Isaac
Yanovich, the targets set at the time have not been
accomplished. Mr. Yanovich believes Venezuela might have more
urgent priorities than building a natural gas pipeline.
Colombia and Venezuela signed an agreement about a year ago to
build a 215-kilometer pipeline to be used in transferring
Columbian gas from the northeastern La Guajira region to
Maracaibo, a Venezuelan city near Columbian border.
Despite having huge reserves, Venezuela needs to import natural
gas due to lack of infrastructure and insufficient investment in
natural gas output.
Colombia, on the other hand, has a surplus of natural exports
thanks to the recent extension of Guajira Area A contract
between Chevron Corp. (CVX) and Ecopetrol.
===========
M E X I C O
===========
AOL LATIN AMERICA: Lease Decisions Due November 23
--------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware extended,
until Nov. 23, 2005, the period within which America Online
Latin America, Inc., and its debtor-affiliates can elect to
assume, assume and assign, or reject their unexpired
nonresidential real property leases.
The Debtors told the Court that they commenced their Chapter 11
cases to implement the proposed wind down of their businesses.
The Debtors relate that they are parties to a number of
nonresidential real property lease agreements. Some of those
lease agreements include their administration officers and
various premises leased by AOL Puerto Rico in shopping areas in
Puerto Rico in connection with its marketing services for the
AOL branded services.
The Debtors gave the Court four reasons in support of the
extension:
1) since the Petition Date, their management and professionals
have been preoccupied with:
a) obtaining interim and final approval of the first day
motions and responding to information requests and
concerns of the U.S. Trustee, and
b) preparing their Schedules and Statements and handling the
typical business emergencies that immediately occur after
the commencement of their chapter 11 cases;
2) they have not had sufficient time to formulate and prosecute
a plan that they will use to implement the proposed wind
down of their businesses;
3) the extension will give them more opportunity to analyze
each location of the unexpired nonresidential real property
lease and its purpose in the wind down process; and
4) the extension will not prejudice the landlords of the
unexpired leases as the Debtors are current on all post-
petition obligations to those landlords as required by
Section 365(d)(3) of the Bankruptcy Code.
Headquartered in Fort Lauderdale, Florida, America Online Latin
America, Inc., -- http://www.aola.com/-- offers AOL-branded
Internet service in Argentina, Brazil, Mexico, and Puerto Rico,
as well as localized content and online shopping over its
proprietary network. Principal shareholders in AOLA are
Cisneros Group, one of Latin America's largest media firms,
Brazil's Banco Itau, and Time Warner, through America Online.
The Company and its debtor-affiliates filed for chapter 11
protection on June 24, 2005 (Bankr. D. Del. Case No. 05-11778).
Pauline K. Morgan, Esq., and Edmon L. Morton, Esq., at Young
Conaway Stargatt & Taylor, LLP and Douglas P. Bartner, Esq., at
Shearman & Sterling LLP represent the Debtors in their
restructuring efforts. When the Debtors filed for protection
from their creditors, they listed total assets of $28,500,000
and total debts of $181,774,000. (Troubled Company Reporter -
Wednesday, August 10, 2005, Vol. 9, No. 188)
BALLY TOTAL: S&P Cuts Corporate Credit, Sr. Debt Ratings to CCC
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
and senior secured debt ratings on Bally Total Fitness Holding
Corp. to 'CCC' from 'CCC+' and placed them on CreditWatch with
negative implications. At the same time, Standard & Poor's also
lowered its senior unsecured debt rating to 'CCC-' from 'CCC'
and subordinated debt rating to 'CC' from 'CCC-' and placed them
on CreditWatch with negative implications.
"The action is based on the commencement of the 10-day period
after which time an event of default occurs under Bally's $275
million secured credit agreement's cross-default provision and
debt becomes immediately due and payable," said Standard &
Poor's credit analyst Andy Liu.
Chicago-based Bally is the largest fitness club operator in
North America, with more than 400 clubs in the U.S. and Canada
and about four million members. Total debt outstanding was
about $757 million as of March 31, 2005.
The rating action reflects a potential acceleration of Bally's
total debt obligations. Bally received notices of default under
the indentures governing its 9 7/8% senior subordinated notes
due 2007 and its 10 1/2% senior notes due 2011 following the
expiration of the waiver of the financial reporting covenant
default on July 31, 2005. The notices commence a 30-day cure
period during which Bally must either secure an extension to the
waiver or remedy default. More important, the delivery of the
notices could result in more than $700 million of debt
obligations becoming immediately due and payable on or after
Aug. 14, 2005.
The company currently has received consent of 96.3% of the
senior notes and 42.9% of senior subordinated notes outstanding.
S&P will continue to monitor Bally's progress in obtaining the
waiver extension. If the company is unable to secure the waiver
extension, the ratings will likely be lowered to 'D'. (Troubled
Company Reporter - Wednesday, August 10, 2005, Vol. 9, No. 188)
CORPORACION DURANGO: Sales Up 20% in 2Q05
-----------------------------------------
Corporacion Durango, S.A. de C.V., (BMV: CODUSA) ("Durango" or
the "Company"), the largest integrated paper producer in Mexico,
today announced its unaudited consolidated results for the
second quarter of 2005. All figures were prepared in accordance
with Mexican generally accepted accounting principles and are
stated in constant Mexican pesos as of the end of each period
and converted into U.S. dollars using the exchange rate at the
end of each period. All comparative figures for the first
quarter 2005 and 2004 were prepared on a pro-forma basis with
Paneles Ponderosa as a discontinuous operations.
During the first semester of the 2005 the Mexican economy, the
industrial sector and the consumption continued showing signals
of great weakness, under the frame of a prolonged monetary
restriction and loss of competitiveness of the manufacturing
sector due to an exchange rate highly overvalued and also an
increasing cost of energetics.
In spite of this adverse business environment, Corporacion
Durango developed and executed a package of operative and market
strategies that allowed it to increase net sales by 19.0% in the
semester, from $316.8 million dollars in the first semester of
2004 to $377.1 million dollars in this semester. Furthermore,
EBITDA grew 33.0% in this semester, form $33.3 million dollars
in the first semester of 2004 to $44.1 million dollars in this
semester.
In the second quarter of the 2005 sales increase 20% with
respect to the same period of the previous year, from $163.0
million dollars in the 2004 to $195.1 million dollars in the
second quarter of 2005. The EBITDA also grew 21% in this
quarter, from $17.9 million dollars in the 2004 to $21.5 million
dollars in the second quarter of 2005.
As a result of the substantial reduction of its debt and lower
interest rate, the financial cost of the company in the semester
decreased 59%, from $60.4 million dollars in the first semester
of 2004 to $24.5 million dollars in the first semester of 2005,
which reflects a great financial flexibility and a sound
business strategic vision of the company. Total debt (principal
and accrued interest) at the end of the first half of 2005 was
US$645.9 million, down US$335.9 form the first half of 2004.
As a part of its strategy of high focus in its core business,
the paper and packaging industry, during the first semester of
2005 the company divested a non-strategic and low-profit wood
plant in Chihuahua, Mex. and acquired a new corrugated container
plant conveniently located in Monterrey, N.L.
Looking to the second semester of 2005, the company considers
that their results will be smaller to those of the first
semester, due to the expected over-cost in energy and raw
materials, to the weakness of the international prices in its
main sector of brown papers which will temporarily hurt the
results of its operations in Mexico and E.U.A., as well as the
negative effect of the present level of appreciation of the
exchange rate in the competitiveness of the country, of its
clients and in the company. Durango remains committed to reduce
debt and create shareholder value, concluded Miguel Rincon,
Durango's Chairman and CEO.
Performance
Shipments
The Company's total shipments and shipments in its industry
segment increased 7% as compared with the second quarter of
2004.
Price
The average sales price increased by 12% to US$556 from US$496
in the second quarter of 2004 primarily as a result of the
companies pricing recovery strategy supported on the stational
strengthening of industry paper pricing. The average packaging
unit price increase by 12% from the second quarter of 2004.
Net sales
Total net sales grew by 20% to US$195.1 million from US$163.0
million in the second quarter of 2004, mainly due to increases
in packaging sales prices.
Net sales from the paper segment increased by 18% to US$87.5
million from US$73.9 million in the second quarter of 2004; net
sales from the packaging segment increased by 21% to US$105.5
million from US$87.2 million in the second quarter of 2004. The
average packaging unit price increased by 12% from the second
quarter of 2004.
Production Cost
The unit production cost increased 13% from the second quarter
of 2004.
Selling, General And Administrative Expenses
Selling, general and administrative expenses increased from
US$13.3 million in the second quarter of 2004 to US$14.4 million
in the second quarter of 2005. Semester to semester the SG&A
increased to US$27.7 million in the first half of 2005 from
US$25.5 million in the first half of 2004, mainly due to a
higher selling efforts and commissions to increase by 19% our
net sales in a highly competitive market.
EBITDA
EBITDA increased by 21% from the second quarter of 2004. EBITDA
as a percentage of net sales was 11% in the second quarter of
2005 remaining flat compared with the 11% of the second quarter
of 2004.
Net Income
Net Income increased from a net loss of US$28.1 million in the
second quarter of 2004 to a net gain of US$2.8 million in the
second quarter of 2005.
CONTACT: Corporacion Durango, S.A. de C.V.
The Global Consulting Group
Mayela R. Velasco
Phone: 52 (618) 829 1008
E-mail: mrinconv@corpdgo.com.mx
Miguel Antonio R.
Phone: 52 (618) 829 1070
E-mail: rinconma@corpdgo.com.mx
Kevin Kirkeby
Phone: (646) 284-9416
E-mail: kkirkeby@hfgcg.com
MINERA AUTLAN: Taps BCG to Help Prepare Business Plan
-----------------------------------------------------
Manganese-ferroalloy producer Minera Autlan (BMV: AUTLANB) has
tapped Boston Consulting Group (BCG) to help the Company develop
a new long-term strategic business plan, reports Business News
Americas. Autlan has been crafting its own business plans for
various decades to avoid suffering during industry downturns.
This time, however, it has decided to bring in an outside
perspective to help bolster its most promising sectors.
An internal working group has already been formed to work with
BCG, which will focus on areas such as energy, minerals,
marketing and operations, among others.
Autlan saw its second quarter 2005 net profit rose five-fold to
MXN215 million (US$20.3mn) compared to same period 2004. Ebitda
for the quarter rose 171% to MXN171 million during the same
period, while operating profit rose 245% to MXN346 million.
On June 30, 2005, company debt stood at MXN195 million.
Autlan, which supplies the steel market, is working on a "daily
basis" to reduce its vulnerability to changes in the market. The
Company relies heavily on ferroalloy prices and has suffered in
the past years when imports flooded the market. Since then
Mexico's government has imposed duties to protect the Company.
Autlan is due to begin production at a new US$5 million sinter
plant this month. The plant will have a capacity of 300,000t of
sinter, a product used to make manganese-ferroalloy. The plant
will be able to use coal or charcoal instead of natural gas.
=================
V E N E Z U E L A
=================
CANTV: Shares Rebound After Week's Slide
----------------------------------------
Shares of CANTV, Venezuela's leading telecommunications company,
have regained ground after sliding for more than a week on
concern that the pension dispute with workers could hurt its
financial standing. According to Reuters, the stock closed 7.1%
higher, to VEB4,900 on the Caracas Stock Exchange Tuesday while
American Depository Receipt (ADR) shares rose 2.93%, or 37
cents, to US$13 on the New York Stock Exchange.
One trader said the stock's climb was a technical rebound as
some investors took positions expecting a further recovery,
while another trader said the market was expecting news of a
possible full revision to the court decision.
Last month, the Supreme Court ordered CANTV to increase pension
payments and other benefits to retired employees, which analysts
said could force the Company to pay out more than US$700
million. Company officials have acknowledged that CANTV's
finances could be impacted by payments it would have to make
under the decision.
CONTACT: Cantv Investor Relations
Phone: +011 58 212 500-1831 (Master)
+011 58 212 500-1828 (Fax)
E-mail: invest@Cantv.com.ve
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and
Sheryl Joy P. Olano, Editors.
Copyright 2005. 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 * * *