Paraguay eyes Acepar nationalization, output stops

[Judi Lynn]

Paraguay eyes Acepar nationalization, output stops
Released in time:11/4/2013 10:04:20 PM Browse The Times:11
Tuesday, 05 November 2013

Paraguay's sole steelmaker Acepar has continued to struggle since a new consortium took control earlier this year. Over the weekend, the mill stopped production because of technical issues and, as of last week, it now faces the threat of re-nationalization, a top Acepar executive told Platts.

Paraguay president Horacio Cartes last week announced government plans to retake control of the mill. Documents to that effect have already been filed with Paraguay's mediation and arbitration center.

"To date, Acepar has been a complete failure," a statement from the president's office said. "It is on the brink of bankruptcy [with a debt of near $55 million] with obsolete machinery (and) debts with satellite companies from previous shareholders, dedicated to selling scrap and pig iron instead of producing final products of more added value."

Sergio Ferreira, director of Chacor�� - one of the companies in the consortium that purchased a controlling share in Acepar - said the consortium will accept the outcome determined by the arbitration center.

More:
http://www.fortune-best.com/details_News.asp?id=55

[Judi Lynn]

1. Same Colo. Party legislature blocked attempts to do this during Lugo's Presidency.

Lawmakers reject bill to nationalize Acepar
By Harvey Beltrán - Friday, May 15, 2009

Paraguay's lower house voted down a bill to return local steelmaker Acepar to state control, a house advisor told BNamericas.

"Although a majority of congress agrees that the company has violated several parts of the privatization agreement, the final vote fell in the company's favor," the advisor said.

Of the lawmakers that voted, 20 were in favor of annulling the law that had privatized the company so it can revert back to the state, but the other 40 voted against the bill, the advisor said.

The vote officially quashes the bill that also proposed opening a tender to sell 49% of Acepar's shares to a new party.

The decision was made despite previous reports stating the house had already attained a majority in favor of nationalization and had moved on to discuss how to do so.

More:
http://www.bnamericas.com/news/privatization/Lawmakers_reject_bill_to_nationalize_Acepar1