On June 29 a new law (LC 110/01) was enacted in Brazil creating two new social contributions related to the already existing employment security fund created by the government primarily for indirectly assisting workers to buy their first home. The instrument used by the federal government to generate new revenues for paying the FGTS bill is inappropriate, since it blatantly violates the Brazilian Constitution.
As a result of an unconstitutionality suit, on 19 September the Colombian Constitutional Court declared that the tax reform of year 2000 (Law 633) is constitutional.
Rusconi-Valdez & Asociados is to form an alliance with the representative of Deloitte & Touche in Central America. After several months of negociations, Rusconi-Valdez has reached an agreement with Arias, Morales y Cía, Arias, Deloitte & Touche's representative in the region.
Machado, Meyer, Sendacz e Opice Advogados is providing pro bono advice to the Winrock International Institute for agriculture development, an NGO connected with the Rockfeller Foundation.
Pérez Alati, Grondona, Benites, Arntsen & Martínez de Hoz (h) of Argentina has advised Credit Suisse First Boston in the arrangement of Solvay-Indupa SAIC´s US$80-million convertible note issue.
Demarest e Almeida has assisted Brazilian pension funds PREVI, PETROS, TELOS, VALIA, FUNCEF, BB-BI, SISTEL, FACHESF, AERUS, FAPES and OPERATE in the sale of a controlling stake in Americel and Telet, the Brazilian cellular telecommunications companies in the category Band B, to Bell Canada International BVI V Limited. The sale closed on September 25.
Alcaíno, Rodríguez & Sahli has represented Norgener SA and Empresa Eléctrica Guacolda SA in a successful challenge to a resolution issued by the Chilean National Environmental Commission (CONOMA) concerning the use of ‘petcoke’ as a fuel for power generation. On September 27 a ministerial commission accepted the special administrative action brought by the power generators, effectively rejecting CONAMA’s original environmental impact analysis.
Pinheiro Neto Advogados has advised the Brazilian food and bakery producer Bauducco & Cia Ltda in the acquisition of 50 per cent of Visagis SA Indústrias Alimentícias from the Swiss group Findim Investments SA.
Lima firm Muñiz, Forsyth, Ramirez, Perez-Taiman & Luna-Victoria has advised
Buenos Aires firm Marval, O'Farrell & Mairal has advised BACS (Banco de Crédito y Securitización SA), the new secondary mortgage market entity in Argentina, in a warehousing revolving credit loan agreement of up to US$50 million. The International Finance Corporation has established the loan in favour of BACS.