United States
Securities and Exchange Commission
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant To Rule 13a-16 or 15d-16
of the
Securities Exchange Act of 1934
For the month of
September 2002
Valley of the Doce River Company
(Translation of Registrant's name into English)
Avenida Graca Aranha, No. 26
20005-900 Rio de Janeiro, RJ, Brazil
(Address of principal executive office)
(Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.)
(Check One) Form 20-F X Form 40-F ___
(Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing information to the Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
(Check One) Yes No X
(If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b). 82-____.)
"This current report on Form 6-K is hereby incorporated by reference into
the Registration Statement on Form F-4 of Companhia Vale do Rio Doce and
Vale Overseas Limited, File No. 333-84696."
CVRD: Provisions for Losses on MRS
Rio de Janeiro, September 2, 2002 - Companhia Vale do Rio Doce (CVRD), in
accordance with the best accounting practices and seeking to establish the
highest degree of transparency, adopts as a regular procedure in its accounting
statements under BR GAAP (Brazilian Generally Accepted Accounting Principles)
and US GAAP (Generally Accepted Accounting Principles on the US) to make
provisions for losses for all investments that present negative shareholders'
equity.
As a result, CVRD's financial statements as of June 30, 2002 recorded a loss of
R$ 47 million resulting from its 17.2% indirect stake in MRS Logistica S.A.
(MRS), once this company had a negative shareholders' equity. Of this amount, R$
33 million accounts for a provision for losses and R$ 14 million accounts for
goodwill amortization.
Additionally, CVRD informed to its wholly-owned subsidiaries Ferteco Mineracao
S.A. (Ferteco) and Belem - Administracoes e Participacoes Ltda. (Belem), and to
its shared control subsidiary Caemi Mineracao e Metalurgia S.A. (Caemi), that
such procedure related to MRS was adopted. Ferteco, Belem and Caemi own stakes
in MRS.
As stated in the December 7, 2001 press release "CVRD Finalizes the Acquisition
of CAEMI," CVRD aims at keeping Caemi as a publicly traded company,
independently managed in accordance with the best corporate governance
practices, subject to principles of transparency and accountability. The
setting-up of the provision for losses at MRS, as opposed to what was noticed on
the Brazilian press, does not mean any intention of CVRD on changing Caemi's
capital structure.
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For further information, please contact:
Roberto Castello Branco: castello.branco@cvrd.com.br +55-21-3814-4540
Andreia Reis: andreia.reis@cvrd.com.br +55-21-3814-4643
Barbara Geluda: barbara.geluda@cvrd.com.br +55-21-3814-4557
Daniela Tinoco: daniela.tinoco@cvrd.com.br +55-21-3814-4946
Rafael Azevedo: rafael.azevedo@cvrd.com.br +55-21-3814-4700
This press release may contain statements that express management's expectations
about future events or results rather than historical facts. These
forward-looking statements involve risks and uncertainties that could cause
actual results to differ materially from those projected in forward-looking
statements, and CVRD cannot give assurance that such statements will prove
correct. These risks and uncertainties include factors: relating to the
Brazilian economy and securities markets, which exhibit volatility and can be
adversely affected by developments in other countries; relating to the iron ore
business and its dependence on the global steel industry, which is cyclical in
nature; and relating to the highly competitive industries in which CVRD
operates. For additional information on factors that could cause CVRD's actual
results to differ from expectations reflected in forward-looking statements,
please see CVRD's reports filed with the Brazilian Comissao de Valores
Mobiliarios and the U.S. Securities and Exchange Commission.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
COMPANHIA VALE DO RIO DOCE
(Registrant)
Date: September 3, 2002
By: /s/ Fabio de Oliveira Barbosa
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Fabio de Oliveira Barbosa
Chief Financial Officer