/raid1/www/Hosts/bankrupt/TCRLA_Public/030429.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
Tuesday, April 29, 2003, Vol. 4, Issue 83
Headlines
A R G E N T I N A
AEROLINEAS ARGENTINAS: Britain Rejects Falklands Flight Proposal
AVANZIT: Aims To Sell LatAm Businesses By August
LOMA NEGRA: Strikes $400M Debt Agreement With Creditors
MASIMUNDO: Rival To Close Acquisition
PEREZ COMPANC: Positive Exploration Progress in Ecuador
PECOM ENERGIA: Closes Tender With 74% Subscription
B E R M U D A
GLOBAL CROSSING: WorldCom Seeks Court's Approval On Settlement
GLOBAL CROSSING: Streamlines Leadership Structure
B R A Z I L
AES CORP.: Expects $0.13 Per Share Income from Continuing Ops
BCP: Moves Into The Red With Negative BRL2.6 Billion Net Equity
ELETROPAULO METROPOLITANA: S&P Cuts Credit Ratings To 'D'
LIGHT SERVICOS: Takes On Citigroup as Restructuring Adviser
SABESP: Pays Interest Attributed to Shareholders' Equity
TCP: Issues Relevant Notice
TELEGLOBE: Court Approves Amended Terms On Sale Of LatAm Assets
TELEGLOBE: Court Signs $1.3M Settlement With Global Crossing
C H I L E
GUACOLDA: Places $150M in 10-Year Bonds in International Market
MADECO: Debt-Restructuring Improves Outlook
D O M I N I C A N R E P U B L I C
TRICOM: Court Rejects ERSP Opinion
TRICOM: Not Receiving Services From C&WP
J A M A I C A
JUTC: Announces Acquisition of 18 Single Operator Buses
M E X I C O
ATSI COMMUNICATIONS: AMEX To Delist Stock
AZTECA HOLDINGS: Extends Deadline of Debt Exchange Offer
GRUPO TFM: Transaction With KCS Neutral to Credit Quality
T R I N I D A D & T O B A G O
BWIA: May Cut Salaries To Qualify For Loan
BWIA: Unions Will Go To Court To Prevent Salary Cut
BWIA: Continues Toronto Flights Despite SARS Threat
V E N E Z U E L A
PDVSA: To Pay $700M In Taxes To Government
- - - - - - - -
=================
A R G E N T I N A
=================
AEROLINEAS ARGENTINAS: Britain Rejects Falklands Flight Proposal
----------------------------------------------------------------
The British Department of Transport turned down Aerolineas
Argentinas' application to operate flights between Argentina and
the Falkland Islands. MercuPress reports that the government
agency found the proposal "inappropriate."
"There would have been very little chance of that happening, "
said Councilor John Birmingham. Councilor Mike Summers commented
that neither the Councilors, nor the public would want an
Argentine airline to operate flights into the Islands.
Meanwhile, Falklands Governor Howard Pearce pointed out the Lan
Chile provides regular weekly flights from the Islands to
Santiago.
Members of the government feel that any such arrangement would
require an agreement between the Islands Council, and British and
Argentine officials. Officials also pointed out that air links
between mainland South America and the Islands, are covered under
the terms of the July 1999 Joint Statement, which was signed by
the Argentine, British and Falklands Governments, said the
report.
If the proposal was accepted, Aerolineas would have been able to
begin services as early as next month. Aerolineas sought to open
an air link between Buenos Aires, Rio Gallegos and the Islands.
CONTACT: AEROLINEAS ARGENTINAS
Torre Bouchard 547, 1106 Buenos Aires, ARGENTINA
Phone: (54-11) 4310-3000
Fax: (54-11) 4310-3585
E-mail: volar@aerolineas.com.ar
Home Page: www.aerolineas.com.ar
Contact:
Patricio Zabalia Lagos, President
AVANZIT: Aims To Sell LatAm Businesses By August
------------------------------------------------
Spanish telecommunications engineering and media company Avanzit
SA, which has been in creditor protection since May 2002, aims to
close its Latin American units, apart from those in Argentina and
Peru, by August.
The goal, according to Dow Jones, is part of a viability plan
designed to save the business.
The plan, presented Thursday, also outlines the Company's
intention to sell its media unit Telson and reach a debt
restructuring agreement with creditors, both by the end of May.
However, in a filing with the stock market regulator, Avanzit
said some of its creditor banks don't support its proposal to
raise cash by accepting an offer for Telson, which it has said is
the only way to ensure the company's survival. Those banks don't
support the debt restructuring agreement with creditorss
proposing, either.
The Company has been hit by the sharp fall in spending from
Spanish telecom giant Telefonica SA, the crisis in the telecom
and media. Following a share price collapse, Avanzit has a market
capitalization of EUR39 million.
LOMA NEGRA: Strikes $400M Debt Agreement With Creditors
-------------------------------------------------------
Loma Negra SA, Argentina's biggest cement producer, and its
creditors reached an agreement to restructure US$400 million of
debt, reports Bloomberg. The Company, which holds about 49% of
the Argentine cement market, proposed to pay US$70 million in
cash, issue about US$250 million in new bonds and auction part of
the debt at a discount. Meanwhile, the Company continues to
negotiate about US$100 million in bonds, the report adds.
MASIMUNDO: Rival To Close Acquisition
-------------------------------------
Argentinean publishing house and book retailer Yenny-El Ateneo
was expected to close Monday its acquisition of the troubled
local music retailer Masimundo, South American Business
Information relates. The value of the deal is estimated at US$15
million plus Masimundo's debt of ARS196 million.
Masimundo is owned by the Exxel Group, the Argentinean private
equity fund, but is currently being run by its creditors. The
Company's main creditors are Citibank, Supervielle, Banco
Galicia, Banco Rio and the electronics goods division of Sony.
Yenny-El Ateneo is owned by the Gruneisen family.
PEREZ COMPANC: Positive Exploration Progress in Ecuador
-------------------------------------------------------
Perez Companc S.A. (Buenos Aires: PC NYSE: PC) announced that its
controlled company Pecom Energˇa S.A. (Buenos Aires: PECO), has
made two new oil discoveries at Minta and Nenke fields, in Block
31, Ecuador.
Drilling of the discovery well at Nenke field, adding 35 million
barrels of potential reserves, enabled the Company to comply with
the exploratory investment commitment agreed upon with the
Ecuadorian Government involving shooting of 1,200 km of 2D
seismic lines and drilling of three exploratory wells. The
discovery at Minta field added 70 million barrels of potential
reserves.
Such discoveries, in addition to previous discoveries at Apaika,
Obe and Nashi¤o fields, account for approximately 230 million oil
barrels of potential reserves in Block 31.
Such discoveries as a whole add value to Block 31 exploratory
potential and encourage the Company to keep on with the
exploratory program that, according to existing seismic
interpretations and in line with the Company's previous
estimates, would add a significant potential of additional
exploratory reserves.
The Company started exploratory activities in Block 31 in 1996,
and so far it has made investments for US$ 90 million. Shooting
of 1382 km of 2D seismic lines and 167 km2 of 3D seismic lines
has been performed. This allowed to identify about seven to nine
exploratory prospects, four of which have already been drilled
(Apaika, Obe, Nenke and Minta) with a 100% success rate. This
almost doubles the 57% value estimated for this Basin area that
exhibits higher values than the world average ranging from 14 to
15%.
The Company believes production at Block 31 would begin late in
2004 or early in 2005.
PECOM ENERGIA: Closes Tender With 74% Subscription
--------------------------------------------------
Argentine energy company Pecom Energia revealed that only 74% of
investors subscribed to the Company's offer to exchange up to
US$4 million trust-preferred securities for debentures maturing
April 2008 when the tender closed at 2:00pm New York time on
April 24.
As a result, the Company gave the other 26% of investors, who
failed to subscribe to the offer, a 30-day period from Monday to
swap their US$1.05 million in trust-preferred securities for
debentures under the same terms, a company source said.
"What happened is that some investors contacted the stock market
today (Friday) after the exchange offer had already closed
wanting to subscribe to the offer, and so we decided to close the
offer, but give these other 26% of investors another 30 days to
subscribe under the same terms," the source said.
"If we had extended the offer 100%, we would have had to give the
option to investors who already subscribed to the offer to take
back their acceptance," he added.
According to a report by Business News Americas, the new notes
will replace notes issued in 1999 as the remaining part of US$101
million in trust-preferred securities held in a trust managed by
UK bank HSBC, which is also acting as issuer for the new notes.
The securities expired in June 2002.
In January 2003, Pecom Energia exchanged 96.06% of the debt
securities for new notes, which pay an annual interest rate of
Libor plus 1% and mature in June 2011.
This new debt swap offer applies to the 3.94% of old notes whose
holders did not subscribe to the January offer.
The exchange offer will swap each US$1 of trust notes for a US$1
bond plus US$0.098 in cash corresponding to interest on the
notes. Pecom Energia will pay bondholders US$0.10 for each US$1
bond now, and pay the US$0.90 balance in April 2008.
Interest will be paid at 5.625% a year, payable twice a year from
October 25, 2003 until the bonds mature on April 25, 2008.
Due to the devaluation of the Argentine peso in January 2002,
Pecom Energia failed to repay the original loan, and at one point
had called for the loan to be converted into Argentine pesos.
HSBC and the trust investors refused, so a mediator was called in
to resolve the dispute.
CONTACT: PECOM ENERGIA S.A. DE PEREZ COMPANC S.A.
Maipo 1 - Piso 22 - C1084ABA
Buenos Aires, Argentina
Phone: (54-11) 4344-6000
Fax: (54-11) 4344-6315
URL: http://www.pecom.com.ar/
Contacts:
Jorge Gregorio C. Perez Companc, Chairman
Oscar Anibal Vicente, Vice Chairman
=============
B E R M U D A
=============
GLOBAL CROSSING: WorldCom Seeks Court's Approval On Settlement
--------------------------------------------------------------
The U.S. Bankruptcy Court in Manhattan will hear May 6 a motion
filed by WorldCom Inc. to approve a settlement agreement with
Global Crossing Ltd. that would resolve claims from before the
latter filed for bankruptcy. Objections, according to documents
obtained by Dow Jones, are due Thursday.
WorldCom filed the motion last week to seek approval from the
court to settle claims it asserted against Global Crossing. Those
claims are related to the period from Global Crossing's Jan. 28,
2002, bankruptcy filing through Feb. 10, 2003.
WorldCom asserted more than US$27.5 million of claims for
services it provided before Global Crossing filed for bankruptcy.
Global Crossing disputed more than US$9.5 million of the WorldCom
claims.
Under the settlement, Global Crossing would pay WorldCom US$9.1
million.
The motion said US$2.25 million of that amount would be paid
within five days of the date Global Crossing's reorganization
plan takes effect, and the balance would be paid in 12 equal
monthly installments after the plan takes effect.
In December 2002, the bankruptcy court confirmed Global
Crossing's reorganization plan. In connection with confirmation,
Global Crossing and its subsidiaries began talks with access
providers, including WorldCom, about resolving issues related to
prepetition claims against it and the assumption of executory
contracts.
As part of its Chapter 11 plan, the filing said, Global Crossing
proposed to pay WorldCom $5.6 million as a cure payment to assume
the existing contracts as part of its estate and also as a
distribution in connection with all of WorldCom's prepetition
claims.
The settlement also calls for WorldCom to be released from all
Global Crossing claims against it through the date of the
settlement.
Furthermore, the firms are asking the court for authorization to
enter a new telecommunications services agreement and a new
digital services pact that would encompass services WorldCom
already provides to Global Crossing. Both of the new agreements
would have two-year terms retroactive to April 1 and would have
annual minimum revenue commitments.
GLOBAL CROSSING: Streamlines Leadership Structure
-------------------------------------------------
* CEO to directly oversee operations, sales and product
management.
* Lean, focused executive team will mirror streamlined operations
as company nears end of restructuring process.
* New structure represents the next step in 18 months of
streamlining efforts under Legere's leadership.
Global Crossing announced Friday that it will simplify its
organizational structure as part of the final stages of its
restructuring. John Legere, Global Crossing's CEO, will add to
his role direct supervision of all operational functions,
eliminating the necessity for a separate operational leader. The
new organization will enable Global Crossing's senior leadership
team to achieve performance objectives in a more efficient
manner, as focus shifts from Chapter 11 activities toward the
long-term goal of becoming a global leader in telecommunications.
"As we've done with other aspects of the business during the past
eighteen months of my tenure at Global Crossing, it's time to
realign our leadership team to fit the lean and nimble business
we've become," commented Legere. "Our streamlined executive
leadership structure will further complement the other
initiatives we have enacted to ensure that our business model is
one of the most efficient and effective in the industry."
Operations, sales and product management functions will now
report directly to Legere. Additionally, Carl Grivner will leave
the company to pursue other opportunities.
"To meet the challenges of 2003 and stand out from our
competition, we must continue to seize the initiative and to
adapt quickly to the changing environment," said Legere.
"Simplifying our organizational structure is but one example of
our commitment to delivering the best overall experience in
telecom to our customers."
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. Global Crossing expects
to emerge from bankruptcy in the first half of 2003.
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.
Please visit www.globalcrossing.com for more information about
Global Crossing.
CONTACT: GLOBAL CROSSING
Press Contacts:
Becky Yeamans
Phone: + 1 973-410-5857
Email: Rebecca.Yeamans@globalcrossing.com
Tisha Kresler
Phone: + 1 973-410-8666
Email: Tisha.Kresler@globalcrossing.com
Kevin Burgoyne
Latin America
Phone: + 1 305-808-5947
Email: Kevin.Burgoyne@globalcrossing.com
Mish Desmidt
Europe
Phone: + 44 (0) 7771-668438
Email: Mish.Desmidt@globalcrossing.com
Analysts/Investors Contact:
Ken Simril
Phone: + 1 310-385-3838
Email: investors@globalcrossing.com
===========
B R A Z I L
===========
AES CORP.: Expects $0.13 Per Share Income from Continuing Ops
-------------------------------------------------------------
The AES Corporation (NYSE:AES) announced Friday that diluted
income per share from continuing operations for the quarter ended
March 31, 2003 is expected to be $0.13 per share.
Net income is expected to be $0.17 per share which includes $0.04
per share of income from discontinued operations. Revenues for
the first quarter of 2003 are expected to be $2.2 billion.
AES also announced that its subsidiary distributions to parent
and qualified holding companies(1) for the quarter totaled $180
million. Of this amount, $136 million was distributed to the
parent and $44 million was received by qualified holding
companies. These subsidiary distributions, when adjusted for
certain parent company only cash activities, result in the
measure formerly described by the company as parent operating
cash flow. Total asset sale proceeds for the quarter were
approximately $630 million, which resulted in repayment of
approximately $288 million of secured bank debt.
At the end of March, parent and qualified holding company
liquidity was $489 million. Of this amount, cash at the parent
company for the quarter end was $395 million. AES believes that
parent and qualified holding company liquidity is an important
measure of liquidity for the company because of the non-recourse
nature of most of AES' indebtedness.
For the full year of 2003, AES continues to expect subsidiary
distributions to parent and qualified holding companies to be
$1,065 million. Of this amount, $965 million is expected to be
received by the parent company and $100 million is expected to be
received by qualified holding companies.
AES expects total asset sale proceeds for the full year of 2003
to be approximately $990 million, which represents transactions
that are supported by signed agreements and that have been
previously announced. AES expects bank loan repayments and
repayments of other notes payable of $845 and $130 million,
respectively (which includes $463 million resulting from asset
sales). These payments are associated with prepayments due to
asset sales and operating cash flow at the parent and exclude
anticipated repayments resulting from any bond tender or
anticipated bond issuance. AES also expects investments in and
advances to subsidiaries of $180 million, parent selling, general
and administrative expenses and cash payments for taxes of $125
million and cash payments for parent company only interest of
$575 million.
This information will be discussed on a conference call to be
held on Thursday May 1, 2003, at 8:00 am (Eastern Time). You may
access the call via a live webcast which will be available online
at http://www.aes.comunder the Investor Relations section. This
webcast will be available online until Friday, May 9, 2003. Also
a telephonic replay of the call will be available from
approximately 11:00 am on Thursday, May 1, until 6:00 pm on
Friday, May 9 (Eastern Time). Please dial (877) 519 4471. The
system will ask for a reservation number, please enter 3837264
followed by the pound key #. International callers should dial
(973) 341 3080.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: This news release may contain "forward-
looking statements" regarding The AES Corporation's business.
These statements are not historical facts, but statements that
involve risks and uncertainties. Actual results could differ
materially from those projected in these forward-looking
statements. For a discussion of such risks and uncertainties, see
"Risk Factors" in the Company's Annual Report or Form 10-K for
the most recently ended fiscal year.
For more general information visit our web site at www.aes.com or
contact investor relations at investing@aes.com.
To see schedule for description of qualified holding companies.
http://bankrupt.com/misc/Schedule.htm
CONTACT: The AES Corporation
Kenneth R. Woodcock, 703/522-1315
BCP: Moves Into The Red With Negative BRL2.6 Billion Net Equity
---------------------------------------------------------------
Brazilian wireless carrier BCP moved into the red with a negative
BRL2.6 billion net equity at the end of last year.
Business News Americas reveals that the Company posted BRL2.35
billion in losses last year. The figure is 355% more than its
2001 net loss.
Net revenue went down to BRL1.19 billion, while gross earnings
slid to BRL673 million.
Recently, BCP's parents, BellSouth Corporation and Verbier,
turned over control of the Company to 34 of its bank creditors as
part of a US$1.5 billion restructuring, according to an earlier
article in the Troubled Company Reporter-Latin America.
The report added that the creditors are likely to sell BCP tp
Tele Norte Lest mobile unit Oi, Telecom Italia Mobile or America
Movil's Telecom Americas.
CONTACT: BCP S.A.
Rua Fl>rida, 1970 4o andar
Sao Paulo - SP
Tel: 55 11 5509-6428
Fax: 55 11 5509-6257
Home Page: http://www.bcp.com.br
BELLSOUTH CORPORATION
1155 Peachtree St. NE
Atlanta, GA 30309-3610
Phone: 404-249-2000
Fax: 404-249-5599
Home Page: http://www.bellsouth.com/
Contacts:
Investor Relations
Phone (US): 800.241.3419
Fax: 404.249.2060
E-mail: investor@bellsouth.com
ELETROPAULO METROPOLITANA: S&P Cuts Credit Ratings To 'D'
---------------------------------------------------------
Standard & Poor's Ratings Services lowered its global scale
foreign and local currency corporate credit ratings on Brazilian
utility Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A.
(Eletropaulo) to 'D' (default) from 'SD' (selective default).
The corporate credit rating on the Brazil national scale was also
lowered to 'D' from 'SD'.
The national scale issue rating assigned to Eletropaulo's
debentures program remains 'brCC' on CreditWatch negative.
The rating action reflects Eletropaulo's announcement that it has
defaulted on a US$25 million amortization due April 15 of a
US$305 million syndicated deal, resulting in a more generalized
default situation. Although Eletropaulo presents capacity to
generate an EBITDA roughly of BrR1.3 billion in 2003, this is not
enough for the company to meet projected interest expenses of
approximately BrR1 billion and amortizations of about BrR1.5
billion in the same period.
"A still tight cash flow for 2003 and a tougher debt
renegotiation scenario indicate a broader default scenario," said
credit analyst Marcelo Costa. As opposed to an 'SD' rating, which
is assigned when Standard & Poor's believes that the obligor has
selectively defaulted on a specific issue or class of
obligations, the 'D' rating highlights a more generalized
expectation that the company will miss other debt payments due to
its financial difficulties.
The ratings were previously lowered to 'SD' from 'CC' in August
2002, after the company missed a US$225 million syndicated deal
payment, and had remained at this level even after the conclusion
of the syndicated deal renegotiation, due to another failure to
completely settle a US$100 million euro commercial paper program
in December 2002.
LIGHT SERVICOS: Takes On Citigroup as Restructuring Adviser
---------------------------------------------------------
Light Servicos de Eletricidade SA, the No. 1 energy distributor
in Rio de Janeiro state, is planning to embark on a debt-
restructuring program, as it doesn't have enough cash to meet its
maturing obligations.
As part of the plan, the utility, which is a unit of Electricite
de France, Europe's biggest power producer, hired Citigroup Inc.
as adviser.
Light is facing about BRL1 billion in debt maturing in 2003 and
another BRL1.9 billion due in 2004.
"The problem with Light is that the amount of debt the company
has maturing is far greater than its cash flow," said Sergio
Tamashiro, a utility analyst at Uniao de Bancos Brasileiros SA.
"With a debt this big, the company had to restructure."
According to a report by Bloomberg, Light's earnings before
interest, taxes, depreciation and amortization, or Ebitda, a
common measure of cash flow, tumbled to BRL425.4 million in 2002,
from BRL1.83 billion a year earlier as energy demand fell because
of power rationing in Brazil.
Light's parent contributed US$1.2 billion to the Company in 2002
to help it meet debt payments, S&P said.
SABESP: Pays Interest Attributed to Shareholders' Equity
--------------------------------------------------------
Sabesp -- Cia. de Saneamento Basico do Estado de Sao Paulo (NYSE:
SBS) (Bovespa: SBSP3), the largest water and sewage utility
company in the Americas and the third largest in the world (in
terms of number of customers), informs its Shareholders that in a
meeting held on April 24, 2003, its Management Bodies decided,
pursuant to section 2 of Article 30 of its By-laws, about the
credit and payment of Dividends in the form of Interest
Attributed to Shareholders' Equity, relating to the first quarter
of 2003, to the holders of shares on the base date May 8, 2003.
I - VALUE, DATE AND CREDIT AND PAYMENT TERMS
The Dividends as Interest Attributed to Shareholders' Equity, in
the amount of R$40,156,204.73 (forty million, one hundred and
fifty-six thousand, two hundred and four Reais and seventy-three
cents) corresponding to R$ 1.41 (one Real and forty-one cents)
per 1,000 common shares, shall be paid no later than sixty (60)
days after the 2004 Annual Shareholders' Meeting.
II - WITHHOLDING TAX
Withholding Tax will be deducted from the amount of payment of
Dividends as Interest Attributed to Shareholders' Equity,
pursuant to current legislation, except for exempt shareholders
who provide proof of such condition until June 30, 2003, and the
relevant documents should be delivered to the Company at Rua
Costa Carvalho 300, Sao Paulo, SP, CEP: 05429-900, to the
attention of the Funding and Investor Relations Superintendent
(FI, sala 267).
III - ATTRIBUTION TO DIVIDENDS
Said Interest Attributed to Shareholders' Equity is declared in
substitution to the Dividends relative to the first quarter of
2003 and computed in the calculation of the minimum mandatory
dividends, as provided for in Article 30 - item II, letter "b" of
the Company By-laws and in Section 7 of Article 9 of Law #
9249/95.
IV - INSTRUCTIONS ABOUT THE CREDIT AND PAYMENT OF INTEREST
ATTRIBUTED TO SHAREHOLDERS' EQUITY
a) The shareholders will have their credits available on the
start date of payment of such right, as set forth in the above
item I, according to their bank account and bank domicile
provided to Banco Itau S.A.
b) To the shareholders whose filed details do not contain the
CPF/CNPJ (Tax ID) number or indication of "Bank/Branch and bank
account," the interest will be credited, pursuant to item I
above, starting on the third business day from the date the
details are updated in the electronic files of Banco Itau S.A.,
which can be done through any branch of the network or by mail
sent to the Stocks and Custody Department - Rua Boa Vista 176, 4o
andar, Sao Paulo, SP, CEP 01014-001.
V - EX-INTEREST TRADING DATE The stocks will start being traded
ex-interest and ex-dividends on May 9, 2003.
VI - More information can be obtained at the Banco Itau S.A.
branches specialized in serving shareholders, during bank hours.
CONTACT: Helmut Bossert
(5511) 3388-8664
hbossert@sabesp.com.br
Marisa Guimaraes
(5511) 3388-9135
marisag@sabesp.com.br
www.sabesp.com.br
TCP: Issues Relevant Notice
---------------------------
Sao Paulo--April 25, 2003--Telesp Celular Participa‡oes S.A.
("TCP") hereby informs its shareholders and the general public,
as provided for in CVM Instruction # 358/02, that on the present
date, the controlling interest in Tele Centro Oeste Participa‡oes
S.A. ("TCO") was transferred as provided in the Preliminary Stock
Purchase and Sale Agreement and the Stock Purchase and Sale
Agreement referred to in TCP's relevant notices published on
01/16/2003, 03/24/2003 and 04/11/2003, upon the verification of
certain conditions precedent and, on the present date, the
conclusion of the financial settlement of the transaction and the
transfer to the TCP of shares representing the controlling
interest in TCO.
Of the price of the Controlling Shares, which, accrued with the
compensation provided for in the Final Agreement, is R$
1,505,511,001.57 (one billion, five hundred and five million,
five hundred and eleven thousand and one Real and fifty seven
cents) as of this date, corresponding to R$ 19.48719845 (nineteen
Reais and four eight seven one nine eight four five cents of
Real) per 1,000 common shares acquired, the amount of R$
308,331,434.16 (three hundred and eight million, three hundred
and thirty one thousand, four hundred and thirty four Reais and
sixteen cents) was paid on this date to the sellers, and the
remaining balance will be paid in installments pursuant to the
terms and conditions of the Final Agreement.
TCP will make, within the period of time and in the manner
provided for in the existing legislation, a tender offer for the
acquisition of common shares resulting from the acquisition of
the controlling interest ("OPA"), as well as a merger of shares
in the manner already described in the relevant notice published
on 01/16/2003.
CONTACT: Telesp Celular Participa‡oes S.A.
Fernando Abella Garcia, Investor Relations Officer
TELEGLOBE: Court Approves Amended Terms On Sale Of LatAm Assets
---------------------------------------------------------------
The U.S. Bankruptcy Court in Wilmington, Del. approved amended
terms for the sale of Teleglobe Communications Corp.'s Latin
American business to SkyOnline Holdings LLC, cutting the price to
US$3 million from US$6 million and pulling some assets out of the
deal, reports Dow Jones.
Under the terms, the purchase price was trimmed to US$3 million
subject to adjustment on the ABN Amro debt. Also, Teleglobe will
keep assets in Chile and SkyOnline will pay unpaid bills for the
businesses and fees it owes Teleglobe. Teleglobe is confident it
can liquidate the Teleglobe Chile assets for about US$250,000.
Teleglobe Communications, formerly a unit of BCE Inc. (BCE),
filed for Chapter 11 bankruptcy protection May 28, 2002, listing
more than US$100 million in both assets and debts in its
bankruptcy petition.
TELEGLOBE: Court Signs $1.3M Settlement With Global Crossing
------------------------------------------------------------
Teleglobe Communications Corp. will pay Global Crossing USA Inc.
and other Global Crossing affiliates US$1.3 million as part of a
court-approved settlement agreement.
Under the agreement, Teleglobe will exercise a conversion option,
gaining rights from Global Crossing to transmission capacity
between New York and London, and pay a maintenance fee of $90,000
a year.
Dow Jones recalls that the US$1.3 million settlement payment was
the result of Teleglobe having paid US$268,000 of US$2.2 million
that it owed on the New York to London transmission agreement,
minus US$650,612 Global Crossing owed to Teleglobe under other
agreements.
=========
C H I L E
=========
GUACOLDA: Places $150M in 10-Year Bonds in International Market
---------------------------------------------------------------
Empresa Electrica Guacolda SA, a Chilean power generator, is
likely to meet an US$87-million debt payment due April 30 after
it successfully placed US$150 million of 10-year bonds in the
U.S.
According to Business News Americas, Guacolda issued 10-year
senior secured loan participation certificates under a 144A semi-
private placement, which were offered to investors by CSFB. The
certificates have an average life of 7.1 years, a 12-month grace
period and pay 8.625% annual interest with semi-annual interest
and amortization payments on April 30 and October 30 of each
year.
The bonds have a rating of Baa3, the lowest investment grade
rating, from Moody's Investors Service.
Guacolda borrowed to meet its debt payments after AES Gener SA,
which owns half of the Company, rejected a plan by other
shareholders to sell more stock to fund the debt payments.
AES Gener SA, Chile's second-biggest generator after Empresa
Nacional de Electricidad SA, had its ratings reduced to junk last
year by Standard & Poor's and Moody Investors Service on concern
about its ability to pay US$1.4 billion of debt.
Guacolda will buy all of the US$52 million net outstanding
participation certificates in a loan agreement with Merrill
Lynch, and will prepay an outstanding US$48.8 million loan to
Mitsubishi, and a US$35.3 million local syndicated loan.
Remaining proceeds will be used to fund a portion of the reserve
amount, pay related expenses, and for general corporate purposes.
MADECO: Debt-Restructuring Improves Outlook
-------------------------------------------
Chilean credit rating agency Feller Rate, an associate of
Standard & Poor's, removed local copper and aluminum products
manufacturer Madeco from "creditwatch" and said the Company's
outlook is positive.
The move, according to Business News Americas, reflected Madeco's
recently completed financial restructuring that included a US$75
million equity issue, partly to pay off US$36 million in bank
loans, the rescheduling of its remaining US$86 million of bank
debt, and the redemption of a portion of its bonds.
The agency warned, however, that despite the restructuring,
Madeco's debt is still relatively high compared to its 2002
cashflow.
Madeco, which operates in Chile, Peru and Brazil, reduced losses
in 2002 by 29.1% to US$55.9 million, against the previous year's
losses of US$78.8 million. The Company, according to chief
executive Tiberio Dall'Olio, does not expect to return to
profitability until next year.
Meanwhile, the executive also revealed that the Company plans to
sell US$15 million worth of assets this year. The assets to go
under the hammer are the building used by Madeco's flexible
packaging unit Alusa and the factory in Brazil where operations
are on hold.
===================================
D O M I N I C A N R E P U B L I C
===================================
TRICOM: Court Rejects ERSP Opinion
----------------------------------
The supreme court of Panama discarded an opinion by the public
services regulator ERSP in support of trunking operator Tricom's
bid to offer digital trunking service, reports Business News
Americas.
The Dominican Republic-based company was banking on ERSP's
opinion to weigh in its favor in a lawsuit filed by mobile
operator BellSouth Panama.
BellSouth considers digital trunking to be too similar to mobile
service for Tricom to be allowed to enter the market without
paying for a mobile license.
The Supreme Court has yet to rule on the lawsuit itself,
according to the report.
TRICOM: Not Receiving Services From C&WP
----------------------------------------
Tricom is not getting certain services from Panama's incumbent
telco Cable & Wireless Panama (C&WP) anymore, reports Business
News Americas. C&WP decided to cut off services to Tricom after
posting annual losses of US$50 million due to bypass practices,
which Tricom is allegedly engaged upon. Companies operating the
bypass scam convert international long distance traffic into
local calls, thereby keeping the long distance termination fees
for themselves.
=============
J A M A I C A
=============
JUTC: Announces Acquisition of 18 Single Operator Buses
-------------------------------------------------------
Jamaica Urban Transit Company announced the acquisition of 18 MAN
(single operator) buses as part of its continuing effort to meet
the needs of commuters in the Kingston Metropolitan Transport
Region, reports RJRNews.Com.
In addition, the Company also acquired another 10 articulated
buses, increasing the Company's fleet of extra-long buses to 68.
Five of the MAN buses will be air-conditioned and will operate as
an express service between Kingston and Spanish Town starting May
1, the report suggests. Passengers will board through a single
door, and pay the driver upon entry.
The MAN buses can accommodate up to 38 passengers, somewhat lower
than the capacity of a regular Mercedes Benz and Volvo buses
(43), and premium express buses (53).
The MAN buses, made by Volvo Belgium is part of the Company's
scheme to use smaller units on some routes, where it would be
more suitable to negotiate through narrow roads and steep hills.
JUTC hopes to improve its financial performance this year, after
posting billions of dollars in loses over the recent years.
===========
M E X I C O
===========
ATSI COMMUNICATIONS: AMEX To Delist Stock
-----------------------------------------
Mexico-oriented international traffic carrier ATSI
Communications, Inc. (Amex: AI - News) has received a letter from
the American Stock Exchange delisting the Company's stock
effective April 24, 2003. The letter stated that the Exchange
would file an application with the Securities and Exchange
Commission (SEC) to strike the Company's stock from listing and
registration on the Exchange.
The Exchange cited ATSI's failure to comply with certain
standards and procedures adopted by the Exchange that are
necessary for continued listing eligibility. The letter cited the
following:
The Company had failed to file its October 31, 2002 and January
31, 2003 form 10-Q with the SEC and therefore is not in
compliance with Sections 132(c), 1002(d)(e), 1003(d), and 1101 of
the AMEX Company Guide.
The Company's July 31, 2002 Form 10-K reflected that the Company
was out of compliance with Section 1003(a)(i) with shareholder
equity less than $2 million and losses from continuing operations
and/or net losses in two of its three most recent fiscal years;
Section 1003(a)(ii) with shareholder equity less than $4 million
and losses from continuing operations and/or net losses in three
out of its four most recent fiscal years; and Section
1003(a)(iii) with shareholder equity of less than $6 million and
losses from continuing operations and/or net losses in its five
most recent fiscal years.
The Exchange questioned whether the Company was in compliance
with Section 1003(a)(iv) regarding its financial condition for
continued operations.
The Exchange's review of the Company's July 31, 2002 10K
reflected a failure on the Company's part to show progress with
the plan submitted to the Exchange on May 1, 2002 for continued
listing.
The Exchange felt that the Company was not in compliance with
Section 121B(b)(i) of the AMEX Company Guide regarding its Audit
Committee's composition.
The Exchange felt the Company was not in compliance with Section
301 of the AMEX Company Guide, which states that a listed company
is not permitted to issue or to authorize its Transfer Agent or
Registrar to issue or register additional securities of a listed
class until it has filed an application for listing of such
additional securities and received notification from the Exchange
that the securities have been approved for listing.
The Exchange felt that the Company failed to notify the Exchange
in a timely manner of Directors resignations announced in a press
release issued by the Company of February 7, 2003, which is
required by Section 921 of the AMEX Company Guide.
The Exchange also cited the Company's failure to distribute its
annual report to shareholders for fiscal year 2002 as required by
Section 611 of the AMEX Company Guide.
The Company has also failed to pay listing fees established by
the Exchange in Section 1003(f)(iv) and failed to maintain the
Exchange's listing requirements for common stock share price.
AZTECA HOLDINGS: Extends Deadline of Debt Exchange Offer
--------------------------------------------------------
Azteca Holdings, S.A. de C.V., the controlling shareholder of TV
Azteca, S.A. de C.V., one of the two largest producers of Spanish
language television programming in the world, announced Friday
that it is extending the expiration date of, the offer to
exchange, subject to market and other conditions, its new 103/4%
Senior Secured Amortizing Notes due 2008 for its existing 101/2%
Senior Secured Notes due 2003. The exchange offer also includes a
consent solicitation for amendments to the terms and conditions
of the indenture governing the 101/2% notes. The completion of
the exchange offer will also include the approval of these
amendments. As of the prior expiration date, April 24, 2003,
US$74,834,000 in aggregate principal amount of the 101/2% notes
were tendered for exchange. The new expiration date for the
exchange offer and the consent solicitation is 5:00 p.m., New
York City time, on May 9, 2003.
In addition, Azteca Holdings has reduced the minimum percentage
of the outstanding aggregate principal amount of 101/2% notes
that must be tendered and not validly withdrawn in order to
consummate the exchange offer and consent solicitation from at
least 70% to at least a majority. This condition may be waived by
Azteca Holdings in the future in its sole discretion.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the new 103/4% notes, nor shall
there be any sale of the new 103/4% notes in any state in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any
such state.
The exchange offer and consent solicitation are being made
pursuant to an Offering Memorandum and Consent Solicitation
Statement dated March 3, 2003, Supplement to the Offering
Memorandum and Consent Solicitation dated April 25, 2003 and the
related Letter of Transmittal and Consent, which more fully set
forth the terms and conditions of the exchange offer and consent
solicitation. The exchange offer and consent solicitation may be
terminated or amended at any time prior to the new expiration
date, and the new expiration date may be extended at the option
of Azteca Holdings.
Company Profile
Azteca Holdings, S.A. de C.V. is a holding company whose
principal asset is 55.5% of the capital stock of TV Azteca, S.A.
de C.V.
TV Azteca is one of the two largest producers of Spanish language
television programming in the world, operating two national
television networks in Mexico, Azteca 13 and Azteca 7, through
more than 300 owned and operated stations across the country. TV
Azteca's affiliates include Azteca America Network, a broadcast
television network focused on the rapidly growing United States
Hispanic market; Unefon, a Mexican mobile telephony operator
focused on the mass market; and Todito.com, an Internet portal
for North American Spanish speakers.
GRUPO TFM: Transaction With KCS Neutral to Credit Quality
---------------------------------------------------------
Fitch Ratings does not expect the purchase of TFM, S.A de C.V's
(TFM) by Kansas City Southern (KCS), to have a material impact on
TFM's overall credit quality. Although the financing structure of
the transaction has not been finalized, TFM's debt levels are not
expected to increase over the near term, absent complete
refinancing, due to the existence of significant debt covenants
that limit the company's ability to pay dividends and/or complete
inter-company transactions with its shareholders. The transaction
is a mild positive to the extent that it will ultimately replace
controlling shareholder Grupo TMM, S.A. (TMM), which is currently
under financial distress, with KCS, which is financially
stronger, but also highly leveraged. Fitch Ratings currently
rates TFM's senior unsecured obligations at 'BB-', including $150
million senior notes due 2007, $443 million senior notes due 2009
and $180 million senior notes due 2012.
TFM's majority shareholder TMM announced an agreement to sell its
41% economic stake and controlling interest in TFM to minority
shareholder KCS to generate much-needed cash. KCS and the Mexican
government currently own 39% and 20% economic stakes in TFM,
respectively. Under the proposed structure, TFM and KCS will be
held by a new holding company named NAFTA Rail. According to the
terms of the agreement, TMM will receive $200 million in cash and
a 22% economic stake (20% voting stake) in NAFTA Rail. In
addition, TMM may receive an incremental payment of between $100
million and $180 million based on the resolution of a tax-related
legal dispute between TFM and the Mexican government. The
transaction is subject to approval by the appropriate regulatory
agencies, TMM bondholders, and TMM/KCS shareholders and is
expected to close in the next 6 to 9 months.
Fitch expects KCS to fund the cash portion of the acquisition
with $200 million of incremental debt. The acquisition financing
will likely take place at either the NAFTA Rail holding company
level or the KCS operating company level due to the existing debt
structure in place at TFM. KCS also needs to finance a put option
by the Mexican government to sell its 20% economic stake in TFM
to KCS. The put option is estimated at approximately $480 million
and is exercisable in October 2003. To the extent that either of
these transactions is debt financed at either the NAFTA Rail or
KCS level, the credit quality of KCS may be negatively affected.
Fitch Ratings does not currently rate KCS.
Fitch still believes it will be difficult for TMM to avoid a
default on its $177 million bullet maturity on May 15, 2003 due
to the limited amount of time by which TMM must amend the debt
exchange offering and receive sufficient participation by
bondholders. Nevertheless, TMM creditors may benefit from the
transaction by ultimately receiving higher recovery rates.
Following announcement of the transaction, TMM altered the terms
of its outstanding bond exchange offer to its 2003 and 2006 notes
holders, and is now offering holders the equivalent par value of
newly-issued 12% senior notes due 2004. The new notes contain
certain provisions requiring TMM to apply cash received from the
transaction and any positive outcome to the tax dispute to
repurchase the new notes at par value. Fitch does not currently
rate TMM's outstanding bonds. Fitch would view completion of this
debt exchange offer as distressed and therefore as a default.
On a pro-forma basis, TMM continues to face weak credit
protection measures. TMM is expected to generate an approximately
$22 million in EBITDA during 2003, compared with debt levels of
approximately $200 million. Therefore, EBITDA/Interest would
remain around 1.0X and Debt/EBITDA around 9.0X. 2002 pro-forma
credit protection measures for KCS and consolidated NAFTA Rail
(assuming $200 million in incremental debt at KCS) would result
in EBITDA/Interest and Debt/EBITDA of approximately 1.8X and
7.2X, and 2.3X and 4.9X, respectively.
TFM has a solid business position as the largest railroad in
Mexico, long term growth opportunities in the North American
market, and relatively stable financial position. Five years
after privatization, TFM has improved the operating efficiency of
its rail network and achieved relatively high profitability
margins. During 2002, TFM had revenues of $712 million and EBITDA
of $259 million. TFM's gross interest coverage, as measured by
EBITDA/Interest, was 2.7X during 2002. The company's financial
leverage, as measured by Debt/EBITDA was 3.9 at year end 2002.
TFM's existing senior note indentures restrict additional
indebtedness if EBITDA/Interest is below 3.0X. TFM does not
currently pay out dividends.
CONTACT: Guido A. Chamorro, +1-312-368-5473, Chicago
Daniel R. Kastholm +1-312-368-2070, Chicago
MEDIA RELATIONS: Matt Burkhard +1-212-908-0540, New York
=================================
T R I N I D A D & T O B A G O
=================================
BWIA: May Cut Salaries To Qualify For Loan
------------------------------------------
British West Indies Airways may implement salary cuts between 5%
- 15%, the Trinidad Guardian reports, citing one of the Company's
directors.
BWIA's management team decided on the job cut at a recent
meeting, but the nature and the date of the said cuts are yet to
be agreed on.
BWIA Spokesman Clint Williams said the decision to likely to as
the airline's executives to make the highest sacrifices in the
salary cuts, the report relates.
The salary cut is one of the requirements for the $116.8 million
bail out loan the government extended to the airline.
Interviewed before his meeting with the BWIA management, ACAWU
president Christopher Abraham indicated that unions are objecting
to the salary cuts.
ACAWU and two other unions have complained that employees are
still living on 1998 salaries and deserve increases, not cuts.
CONTACT: BRITISH WEST INDIES AIRWAYS
Phone: + 868 627 2942
E-mail: mailto:mail@bwee.com
Home Page: http://www.bwee.com/
Contacts:
Conrad Aleong, President and CEO (Trinidad)
Beatrix Carrington, VP Marketing and Sales (Barbados)
Paul Schutz, CFO (Trinidad)
BWIA: Unions Will Go To Court To Prevent Salary Cut
---------------------------------------------------
Trade unions representing workers of troubled carrier, BWIA
threaten to go before the Industrial Court if the airline
proceeds with its planned salary cut.
Superintendents Association President Theo Oliver said that under
the collective bargaining agreement with the company, management
must consult and agree with unions before any changes are made.
Communication and Transport Workers Union (CATTU) chief Jagdeo
Jagroop questioned the airline's move to cut salaries. CATTU is
currently calling for the resignation of BWIA Chief Conrad
Aleong.
Unions are still at odds with BWIA's management as the airline
failed to pay the severance benefits of the 617 workers fired in
January.
BWIA: Continues Toronto Flights Despite SARS Threat
---------------------------------------------------
Trinidad and Tobago flag carrier BWIA will continue flights to
Toronto, Canada despite warnings triggered by the outbreak of the
dreaded Severe Acute Respiratory Syndrome (SARS).
The Trinidad Express reports that the WHO has issued a warning
against traveling to Toronto to help curb the SARS virus.
However, BWIA will continue operating seven flights a week, down
from nine.
Sherida Lowrie of Horizon Travel, and a former president of the
Travel Agents Association, said people were still traveling to
Toronto.
BWIA Corporate Communications Director Clint Williams assured
passengers that the airline remains in close contact with the
relevant authorities on the spread of the virus, and airline
flight crews have been instructed on the symptoms of SARS and
precautions to take to ensure the safety of crews and passengers.
However, he added, BWIA continues to regard the deadly virus as a
serious concern. In the meantime, Mr. Williams declined to
comment on how this would affect travel to Toronto.
=================
V E N E Z U E L A
=================
PDVSA: To Pay $700M In Taxes To Government
------------------------------------------
Concerns that Venezuela might default on its debt are eased as
the country's Finance Ministry indicated that its state oil
company, Petroleos de Venezuela S.A. (PdVSA) may pay at least
US$700 million per month in taxes in this year's second quarter.
Alejandro Dopazo, the Finance Ministry's director of public
credit, said the Company may pay as much as US$750 million, which
is significantly higher than the US$37.5 million it paid in taxes
in January. But the figure is still below its US$1 billion in
taxes before the strike.
Presently, ConocoPhillips indicate that PdVSA's shipments are
still 28 percent below pre-strike figures, proof that the
Venezuela's export levels have not returned to normal.
Bloomberg cited analysts as saying surge in receipts indicates
the company, which provides about half of Venezuela's tax
revenue, is picking up the pace of collecting overdue payments
from clients that accrued when it re- started exports in January.
The Venezuelan government insists that production has reached 3
billion barrels a day in recent weeks. Officials admit that they
are having difficulties collecting overdue payments from clients,
which total about US$2 billion as of March 28.
***********
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 American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. 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
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Information contained herein is obtained from sources believed to
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