/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/030630.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 Monday, June 30, 2003, Vol. 4, Issue 127 Headlines A R G E N T I N A AGUAS ARGENTINAS: French Parent Sues Argentinean State AHOLD: Two Brazilian Firms Team Up To Bid For Local Assets ARIGEA: Enters Bankruptcy Following Creditor's Request ASOCIACION MUTUAL: Seeks Reorganization BANCO DE LA NACION: Granting Five Credit Lines This Week GRINFA: Court Declares Bankruptcy After Creditor's Request ORLY: Takes First Move Towards Reorganization REFRIGERACION TECNOLOGICA: Seeks Reorganization TITAN TELECOM: Fitch Rates Debt Securities 'C(arg)' TRAINING CENTER: Takes First Step Towards Reorganization * Argentina: Embarks On Another Debt-Renegotiation * Argentina: Fitch Comments on Economic Prospects B E R M U D A GLOBAL CROSSING: Enters Motion To Reject Houston, Texas Lease B R A Z I L ACESITA: Debt Status To Improve on Real Appreciation, Stake Sale AES CORP.: Meeting With BNDES Didn't Take Place As Scheduled GERDAU: To Present to the Board Proposal to Integrate Acominas GERDAU: No Plans to Expand Capacity in North America, Says Chief C H I L E INVERLINK: Corfo Steps Up Efforts To Recover Stolen Money C O L O M B I A CHEC: Resumes Privatization Efforts C O S T A R I C A ICE: Audit to Kick Off July 1 E C U A D O R PETROECUADOR: Ecuador Prepares To Restructure Operations M E X I C O AZTECA HOLDINGS: Announces Amendments To The Terms Of Notes TV AZTECA: Launches New Investor Relations Website P A N A M A BLADEX: Successfully Completes 22 Million Share Rights Offering P E R U AEROCONTINENTE: Accuses Chilean Banks of Conspiracy V E N E Z U E L A PDVSA: Schedules Annual Meeting For Mid-July PDVSA: Poised to Increase Production Following Oil Discoveries - - - - - - - - ================= A R G E N T I N A ================= AGUAS ARGENTINAS: French Parent Sues Argentinean State ------------------------------------------------------ French Group Suez has taken legal action against the Argentinean State. The group, which controls Argentinean companies Aguas Argentinas, Aguas de Santa Fe and Aguas Cordobesas, brought its case to the 'Centro Internacional para el Arreglo de Diferendos Relativos a Inversiones (CIADI)' last April. The suit alleges the State of breaching the 'Convenio Bilateral de protecci▋ de inversions' agreement. The agreement, which protects investments, was signed between France and Argentina in the 90's. Suez's main objective of the demand is to have Ciadi reorganize the economic situation and allow in this way exploitations to continue. Suez posted losses of EUR863 million (US$940 million) last year, compared to profits of EUR2.090 million in the previous year. The group's major losses were the result of the devaluation and pesification that took place in Argentina. Unconfirmed reports have it however that the Group is claiming around US$900 million dollars, in order to cover the looses for the three branches, Aguas Argentinas, Aguas de Santa Fe and Aguas Cordobesas. Meanwhile, Aguas Argentinas has been trying to negotiate with the Government the possibility of a rise on the public rates. The proposal given lately by the 'Comision de Renegociaci▋' included a 10% rise on the rates, plus an investment of US$80 million on infrastructure buildings, which, instead of going directly to the Company, it would be kept in a 'Fondo Fiduciario' in control of the Estate. Aguas Argentinas did not accept it. AHOLD: Two Brazilian Firms Team Up To Bid For Local Assets ---------------------------------------------------------- Dutch group Royal Ahold, which earlier unveiled plans to divest itself of assets in several South American countries, has attracted the interest of two Brazilian companies. According to a Valor Economico report, Brazilian retail giant Companhia Brasileira de Distribuicao (CBD) and credit card operator Credicard are teaming up to make a joint bid for Ahold's assets in the country. The local business daily reveals that CBD wants Bompreco, Ahold's supermarket chain, while Credicard has its eyes on HiperCard, the chain's credit card division. Bompreco has 119 stores in northeastern Brazil while HiperCard is the leading credit card issuer in the region, with 2 million clients. Meanwhile, Carrefour and Wal-Mart, both with operations in Brazil, are also expected to enter the race for Bompreco. ARIGEA: Enters Bankruptcy Following Creditor's Request ----------------------------------------------------- A request filed by Advent Medical S.A. resulted in the bankruptcy of Arigea S.A., after a ruling by Buenos Aires Court No. 18. Mr. Oscar Vertzman was assigned receiver, to whom creditors must submit their claims for verification before November 13. CONTACT: Arigea S.A. 6th Floor Talcahuano Street Buenos Aires Oscar vertzman 1st Floor Bartolome Mitre Street No. 3120 ASOCIACION MUTUAL: Seeks Reorganization --------------------------------------- Buenos Aires-based company Asociacion Mutual Transporte Automotor Amta is seeking the court's permission to start its reorganization proceedings. According to local news portal Infobae, the Company has submitted its motion for "concurso preventivo" at the city's Court No. 5. BANCO DE LA NACION: Granting Five Credit Lines This Week -------------------------------------------------------- Banco de la Nacion, Argentina's largest bank, will grant five different lines of credit this week, Business News Americas reports, citing Economy minister Roberto Lavagna and Nacion chairperson Felisa Miceli. The move is part of federally owned Banco Nacion's decision to offer ARS500 million (US$178) worth of new loans. The credit lines will have lower rates and longer maturities, compared to what is currently offered in the domestic banking sector. CONTACT: Banco de la Nacion Argentina Bartolome Mitre, 326 1036 Buenos Aires, Argentina Phone: +54-11-4347-6000 Fax: +54-11-4347-8078 Home Page: http://www.bna.com.ar/ Contacts: Enrique Olivera, President Adolfo Martin Prudencio Canitrot, Deputy VP GRINFA: Court Declares Bankruptcy After Creditor's Request ---------------------------------------------------------- Court No. 8 of Buenos Aires, under Dr. Gonzalez, declared car parts company Grinfa S.A. under bankruptcy, granting a request from Bulonera Norte S.A., said a local source. Grinfa reportedly owes Bulonera some $8585. Te Court assigned Mr. Alberto Francisco Romeo as receiver for the proceedings. Creditors are advised to have their claims verified before September 2 this year. CONTACT: Mr. Alberto Francisco Romeo 5th Floor Parana No. 275 Buenos Aires ORLY: Takes First Move Towards Reorganization --------------------------------------------- Vehicle distributor Orly S.A.C.I.F.I. filed for "concurso preventivo", relates local news source Infobae.Com. The report reveals that the motion was filed at the Civil and Commercial Tribunal of Santiago del Estero. The province's Court No. 1 assigned Mr. Eduardo A. Diaz Critelli as receiver for the proceedings. Creditors are advised to have their claims verified before the receiver submits the individual reports on July 2. The general report will be submitted on August 28 this year. The informative assembly will be on August 4 next year. REFRIGERACION TECNOLOGICA: Seeks Reorganization ----------------------------------------------- Freezer maker Refrigeracion Tecnologica S.A. took the first step towards its reorganization process by filing its motion for "concurso preventivo" at Court No. 21 of Buenos Aires, which is under Dr. German Paez Castaneda. Local newspaper El Cronista Comercial reveals that the Company has stopped making debt payments since December 20 last year. CONTACT: Refrigeracion Tecnologica S.A. Av. Gaona 1295 Buenos Aires TITAN TELECOM: Fitch Rates Debt Securities 'C(arg)' --------------------------------------------------- Fitch Argentina Calificadora de Reisgo S.A. rates Financial Trust Titan Telecom Personal 2000 Clase I 'C(arg)', according to the National Securities Commission of Argentina. The rating, which denotes that the debt security is vulnerable to nonpayment, applies to ARS70 million of "Titulos de deuda por valor nominal $70 millones." TRAINING CENTER: Takes First Step Towards Reorganization -------------------------------------------------------- Court No. 17 of Buenos Aires received a motion for "concurso preventivo" from Training Center S.A., relates Infobae. Mr. Jose M. Nullo was assigned as receiver for the case. As ordered by the Court, the deadline for verification of claims is September 2, 2003. The receiver will file the individual report on October 14 and the general report on November 25 this year. Creditors are called to an informative assembly on June 3, 2006. CONTACT: Mr. Jose M. Nullo Suipacha 612 Buenos Aires * Argentina: Embarks On Another Debt-Renegotiation -------------------------------------------------- Argentina's government informed local pension fund managers (AFJPs) and banks that it will re-negotiate US$26 billion worth of debt it owed to them, Business News Americas reports citing an article released by a local daily. Clarin newspaper recounts that in 2001, former economy minister Domingo Cavallo convinced the AFJPs and banks to accept a debt- swap with longer maturities and lower interest rates, as part of his failed efforts to avoid a debt-default. The new bonds were later pesofied when the government of former President Eduardo Duhalde imposed a forced devaluation last year. The debt in question is among the few government papers in Argentina not in default. The paper reveals that the current plan to renegotiate the debt includes re-dollarizing the debt again, extending the maturities and reducing the interest rates. The plan would reportedly reduce the final cost of the debt for the government. * Argentina: Fitch Comments on Economic Prospects ------------------------------------------------- Following the transition to the new government and its initial weeks in office, Fitch Ratings is issuing a comment on the implications for the future of Argentina's debt ratings. The key economic challenges that Argentina should address now that it has elected a new president include an external debt restructuring, structural reform of public finances, generating primary budget surpluses in excess of 4-5% of GDP, banking sector restructuring and the enhancement of creditor rights. The interim government of Eduardo Duhalde managed to bring about some macroeconomic stability by implementing a short-term economic program and negotiating a Stand-by Arrangement with the International Monetary Fund (IMF), designed to cover all obligations coming due to international financial institutions through August 2003. But, a new IMF agreement will be needed after August 2003, not least to cover heavy rollovers to the multilaterals later this year. The Argentine economy has reached a turning point, with a resumption of GDP growth (albeit from a low base in 2002), an expansion of the current account surplus, a strengthening of the peso and a decline in inflation. Yet the scope of Argentina's problems is large. The degree of debt relief needed on the external bonds to ensure Argentina's ability to service its multilateral and domestic obligations may be so large that it may prove difficult to induce foreign bondholders to participate in an agreement in the near term. The size of the fiscal adjustment needed to ensure debt sustainability after a debt restructuring will likewise be challenging for the Argentine political system to produce. The ratings on the issuer and the relevant securities would be raised out of the default category once the government has restructured the defaulted instruments and has shown its commitment to servicing these instruments according to their new terms. Fitch will evaluate the new debt service burden within the framework of Argentina's fiscal program, the state of the financial system and economic growth prospects in determining the appropriate ratings for the restructured instruments. Given the current economic, financial and political constraints, the new debt service profile after restructuring will be key in determining the appropriate rating once relations have been normalized with Argentina's external creditors. A lower interest burden (either from lower coupons, a haircut or a combination of both) combined with a significant grace period for amortization could help lift the ratings out of default, but the ratings are likely to remain in a highly speculative category for some time. In Fitch's analysis of Argentine debt dynamics over the medium- term, even in an optimistic scenario, debt/GDP would still be high at 76% by the end of 2008. CONTACT: Fitch Ratings, New York Theresa Paiz Fredel 212/908-0534 Roger M. Scher 212/908-0240 Media Relations: Matt Burkhard 212/908-0540 ============= B E R M U D A ============= GLOBAL CROSSING: Enters Motion To Reject Houston, Texas Lease ------------------------------------------------------------- The GX Debtors seek authority to reject an unexpired lease of real property located at 12245 I-45 North in Houston, Texas, which is used as equipment storage space. Paul M. Basta, Esq., at Weil Gotshal & Manges LLP, in New York, informs the Court that after reviewing the terms of the Lease, the GX Debtors have determined that it is of no utility or value to them. The GX Debtors entered into the Lease with a view towards an expansion of their operations in line with the generally anticipated growth of the telecommunications industry. Instead, as a result of the downturn in the telecommunications sector and as part of their Chapter 11 cases, the GX Debtors have streamlined their operations. Accordingly, the property which is the subject of the Lease in no longer necessary to the GX Debtors' ongoing operations. If the Court approves the rejection of the Lease, the GX Debtors will retain sufficient space to continue their operations. Mr. Basta attests that it is not in the GX Debtors' best interests to market the Lease for sale or sublease the underlying property because the rent due under the Lease is above current market value. As a result, the Lease is a cash drain on the GX Debtors' businesses. In consideration of the foregoing, the GX Debtors have determined, in the exercise of their business judgment, that it is in their best interests to reject the Lease. Pursuant to Section 554(a) of the Bankruptcy Code, the Debtors also seek approval of the abandonment of any personal property in the Property. The Property is primarily vacant, although a minimal amount of equipment ancillary for the provision of telecommunications services and other personal property items may remain therein. To the extent that the Debtors' personal property remains in the Property, Mr. Basta assures the Court that it is of inconsequential value and of no benefit to the estate. To the best of the Debtors' knowledge, none of the personal property in the Property poses an environmental hazard. The Debtors have determined that the personal property remaining in the Property primarily consists of obsolete telecommunications equipment and office materials that are of no value to the Debtors' estates. The Debtors submit the abandonment of any personal property currently remaining in the Property should be effective as of the date rejection of the Lease is effective in accordance with the order approving this Motion. The Debtors also ask that all proofs of claim relating to the rejection of the Lease and the abandonment of the personal property will only be considered appropriately and timely filed if actually received no later than 5:00 p.m. prevailing Eastern Time on that day that is 30 days after entry of the order granting the relief requested by either: (i) mailing the original proof of claim to Global Crossing Claims Processing, c/o United States Bankruptcy Court for the Southern District of New York, P.O. Box 5014, One Bowling Green, New York, New York 10274-5014; or (ii) delivering the original proof of claim by messenger or overnight courier to Global Crossing Claims Processing, c/o United States Bankruptcy Court for the Southern District of New York, One Bowling Green, New York, New York 10004-1408. (Global Crossing Bankruptcy News, Issue No. 42; Bankruptcy Creditors' Service, Inc., 609/392-0900) =========== B R A Z I L =========== ACESITA: Debt Status To Improve on Real Appreciation, Stake Sale ---------------------------------------------------------------- Brazilian stainless steelmaker Acesita expects to see a significant improvement in its debt status following the appreciation of the local currency, the real, against the dollar, and the sale of its stake in Vitoria-based flat steelmaker CST, reports Business News Americas, citing a company executive. Acesita CFO Gilberto Audelino revealed that the sale, which was finalized on April 24, resulted in cash inflow of US$162 million. The funds were used to pay off a BRL135-million (currently US$47mn) loan from federal development bank BNDES and buyback 92% of a debenture issue of BRL425 million made in December last year, the official added. As a result of the operations, the Company's net debt is expected to fall from US$670 million in the first quarter to US$508 million in the second quarter. However, the Company expects to see a deterioration in its operational performance this second quarter compared to the previous quarter because the prices of stainless steel products have fallen on international markets over the last three months. Export volumes, also dropped because of the Sars virus in China and sluggish demand in the US and Europe, Audelino said. In addition, Acesita also faced problems during the quarter with supplies of gas to its mill in Belo Horizonte, Minas Gerais state, which affected production. Acesita, controlled by European steel group Arcelor, has installed capacity of 850,000t/y of liquid steel and is South America's only stainless steelmaker. CONTACT: Acesita SA Registered Office Av Joao Pinheiro, 580 Centro 30130-180 Belo Horizonte - MG Brazil Tel +55 31 3235-4211 Fax +55 31 3235-4300 Web http://www.acesita.com.br Contacts: Valmir Marques Camilo, Chairman Bruno Le Forestier, Vice Chairman AES CORP.: Meeting With BNDES Didn't Take Place As Scheduled ------------------------------------------------------------ Brazil's development bank BNDES and executives from AES Corp. didn't meet on Thursday as scheduled, the former announced without revealing details about a new meeting. Dow Jones recalls that a meeting between the two sides had been scheduled for Thursday to discuss a rescheduling proposal for the U.S. power group's US$1.2 billion in debt with the federally controlled bank. AES took out US$1.2 billion in loans to buy local electricity distributor Eletropaulo Metropolitana in 1998, but has defaulted on several payments this year. AES and BNDES have been trying since January to reach an agreement on a debt-rescheduling plan, but so far AES hasn't offered any payment on nearly US$750 million in overdue debt. BNDES refuses to negotiate the lengthening of the power company's debt if AES doesn't offer payment of overdue debt. Recently, BNDES said it posted a loss of BRL1.06 billion ($1=BRL2.86) in the four months to April this year as provisions for defaulted loan payments by AES weighed on the bank's bottom line. The loss results from provisions of BRL686 million the bank had to make because of AES' defaulted loan payments. CONTACT: AES Corporation Kenneth R. Woodcock, 703/522-1315 GERDAU: To Present to the Board Proposal to Integrate Acominas -------------------------------------------------------------- Brazilian long steelmaker Gerdau will present to its board within 60 days a proposal to integrate Ouro Branco-based long steelmaking subsidiary Acominas, Business News Americas reports, citing Osvaldo Schirmer, the Porto Alegre-based company's investor relations chief. "We hope to have board approval and the plan implemented in the third quarter," the Company official said. Schirmer did not provide any details about how much money could be saved on the possible merger options, "but we will have operational, administrative and tax gains," he said. Gerdau increased its share in Acominas to 79% last October after exercising its option to buy the 24.8% stake held by Singapore's NatSteel. The Gerdau group operates 23 plants in Brazil, the US, Canada, Argentina, Chile and Uruguay. It is the largest long steel producer in the Americas with installed capacity of 14Mt/y. GERDAU: No Plans to Expand Capacity in North America, Says Chief ---------------------------------------------------------------- Gerdau investor relations chief Osvaldo Schirmer said the Company will not be expanding operations in North America. Instead, it will consolidate all the group's North American interests into its subsidiary Gerdau Ameristeel, formed after taking over Canada's Co-Steel last year, relates Business News Americas. "We don't intend to expand capacity in North America. We have a lot of work and space to improve operations from the merger with Co-Steel," Schirmer said. Gerdau Ameristeel has 11 units in Canada and the United States with total installed capacity of 6.4Mt/y, but output is currently running at the rate of only 4.5Mt/y. The Company official said the group still plans to obtain US$22 million in synergies by year-end that were announced at the time of the Co-Steel merger last October. Gerdau Ameristeel's recent debt issues, amounting to US$755 million in bonds and credits, were for extending loan repayments that had become short-term as a result of the merger, Schirmer said. "Apart from rolling over debt, the operation also left us with an additional US$100mn that will give us a cushion of liquidity," Schirmer said. ========= C H I L E ========= INVERLINK: Corfo Steps Up Efforts To Recover Stolen Money --------------------------------------------------------- Chilean government development agency Corfo moved a step forward in its bid to recoup US$90 million of funds allegedly stolen by local financial services holding Inverlink. Business News Americas reports that the agency has hired US top lawyer firm Greenberg Traurig, who was a legal consultant for George Bush in his presidential campaign, to aid in its search for the stolen funds. Earlier, Corfo has hired US fraud specialist Kroll to help its search for part of the stolen US$90-million it believes was stashed in the US. But according to Corfo executive VP Oscar Landerretche, the search and investigation in the US has to comply with US legal norms and therefore Corfo opted to hire a highly respected law firm. Inverlink went into receivership in March after authorities uncovered a web of fraud and espionage. Inverlink executives stand accused of spying on the central bank, stealing funds from Corfo, and engaging in illegal transactions between group subsidiaries. =============== C O L O M B I A =============== CHEC: Resumes Privatization Efforts ----------------------------------- Colombia's Caldas department utility Chec hired UK investment bank NM Rothschild as it proceeds with its privatization efforts. Citing company CEO Hugo Velez, Business News Americas reports that the utility has been trying for two years to raise private capital to solve its financial problems but has been hampered by delays over publishing the rate adjustments. On Tuesday, however, the power regulator Creg published five-year power rate adjustments. Shortly after that, the utility took a step forward in its privatization efforts by hiring NM Rothschild. The investment bank will calculate cash flows and the value of Chec based on the new tariffs, Velez said, adding that the report should be ready in 45 days. Chec shareholders, which include the Colombian government, the Caldas department government and the Manizales municipal government, would like an investor to take 56% of Chec shares in return for paying down debt. In May, President Alvaro Uribe said the central government would pay off Chec's US$18 million foreign debts, after already having paid US$15 million. Based on the government's commitment to pay down debt and the new tariffs, the two parties will be able to negotiate the price of Chec shares, Velez said. Chec would use part of the proceeds from the sale to pay off about COP17 billion (today US$6mn) of Chec's COP45-billion domestic debt. It would also use some of the proceeds to try and buy out its partner in the 50MW Termodorada thermo plant, to escape a power purchase agreement (PPA) that is draining the Company of cash. =================== C O S T A R I C A =================== ICE: Audit to Kick Off July 1 ----------------------------- An audit of Costa Rica's state-run electric power company and telecom monopoly ICE will commence Tuesday, July 1, according to Business News Americas. The special technical committee, which will conduct the audit, consists of former planning minister Leonardo Garnier, former finance minister Carlos Munoz and Leonel Fonseca, former head of the public services regulator Aresep. The ICE board also named consumer defense representative Jose Manuel Echandi and San Jose archbishop Hugo Barrantes as committee members, given their involvement as negotiators in strikes during May. For an element of balance, ICE will be represented on the committee by Teofilo de la Torre. The committee will spend the next three months analyzing ICE's accounts to see if they are based on conflicting accounting methods and to determine once and for all if the company is profitable or not. The decision to convene an audit committee was one of the factors that brought an end to May's 20-day strike, lodged by workers, claiming that the government had not kept its February 16 promise to allow a US$100 million bond issue. Already, the central bank has approved a US$40 million debt issue and is running a parallel study to determine whether ICE can issue a further US$60 million in debt, reveals Business News Americas. ============= E C U A D O R ============= PETROECUADOR: Ecuador Prepares To Restructure Operations -------------------------------------------------------- The Ecuadorian government is seeking to overhaul operations at Petroecuador in order to avert a collapse at the state-run oil company, indicates Dow Jones. As part of the planned restructuring, the government formed a team led by Economy Minister Mauricio Pozo, and consists of the International Monetary Fund, World Bank, Inter-American Development Bank and Andean Development Corp. The formation of the team has paved the way for an audit of the company, which is to be carried out by an international firm. The audit seeks to determine the state of deterioration of the local oil industry and its impact on the domestic economy. The study will be vital in the process to implement radical changes in the country's oil policies, allowing for a sustained increase in output. The government hopes to push reforms to the country's hydrocarbons law through Congress by September. Former energy minister Fernando Santos, who is serving as a consultant for the government on the process to reform the oil sector, said that the new law would be submitted to Congress in mid-July. According to Pozo, without radical changes in energy policy, Petroecuador will collapse because the government doesn't have the resources to compensate for the constant decline in oil production. Petroecuador, which has seen its annual production levels fall 6% over the past four years, according to a report from the World Bank, is estimated to be in need of about US$1.5 billion in investments. McDonald Benjamin, the World Bank's representative in Ecuador, says the situation currently facing Ecuador is worrisome, given the importance that production and exports of crude oil have on the country's economy and on the government's budget. =========== M E X I C O =========== AZTECA HOLDINGS: Announces Amendments To The Terms Of Notes ----------------------------------------------------------- Azteca Holdings, S.A. de C.V., the controlling shareholder of TV Azteca (NYSE: TZA), one of the two largest producers of Spanish- language television programming in the world, announced on Thursday that it had amended the terms of its new Senior Amortizing Notes that are being offered in exchange for its outstanding 10-1/2% Senior Secured Notes due 2003 or its outstanding 10-3/4% Senior Secured Amortizing Notes due 2008. Azteca Holdings has increased the annual interest rate payable on the new notes from 11-1/2% to 12-1/4% and has changed the maturity date of the new notes from June 15, 2009 to June 15, 2008. In addition, Azteca Holdings has amended the schedule upon which the new notes will be amortized. Each US$1,000 in principal amount of the new notes will now be amortized on the following schedule: June 15, 2005 US$250.00 June 15, 2006 US$250.00 June 15, 2007 US$250.00 June 15, 2008 US$250.00 (maturity date) The expiration date of the exchange offers will remain July 11, 2003, unless extended by Azteca Holdings. The exchange offers are anticipated to close on or about July 14, 2003. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act of 1933, as amended (the "Securities Act"). The new 12-1/4% notes being offered have not been registered under the Securities Act and until the registration of the new 12-1/4% notes becomes effective, the new 12-1/4% notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the new 12-1/4% notes, nor shall there be any sale of the new 12-1/4% 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 offers are being made pursuant to an Offering Memorandum dated June 12, 2003, a Supplement to the Offering Memorandum dated June 26, 2003 and the related Letters of Transmittal, which more fully set forth the terms and conditions of the exchange offers. Company Profile Azteca Holdings, S.A. de C.V. is a holding company whose principal asset is 55% of the capital stock of TV Azteca. 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 affiliates include Azteca America, operator of 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. CONTACT: Azteca Holdings, S.A. de C.V. Diego Foyo Phone: +011-5255-3099-1333 Email: hoyo@tvazteca.com.mx/ Home Page: http://www.tvazteca.com.mx TV AZTECA: Launches New Investor Relations Website -------------------------------------------------- TV Azteca, S.A. de C.V. (NYSE: TZA; BMV: TVAZTCA), one of the two largest producers of Spanish- language television programming in the world, announced on Thursday that it has launched a totally redesigned website to further improve communication with the financial community at www.irtvazteca.com. A key feature of the website is an enhanced Q&A section to address current investor concerns about TV Azteca. The section will be updated as required to reflect current market issues. In addition the site contains a simple redesigned format that includes: extensive stock and bond data, press coverage, company structure and organization, a description of business units, including all distribution channels, and much more. "We are very pleased to launch our new investor and corporate Web page," said Bruno Rangel, Director of Investor Relations at TV Azteca. "I have no doubt that the site will become a privileged communications tool with the financial community." We encourage you to visit the new site at: www.irtvazteca.com Company Profile 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 affiliates include Azteca America Network, a new broadcast television network focused on the rapidly growing US Hispanic market; Unefon, a Mexican mobile telephony operator focused on the mass market; and Todito.com, an Internet portal for North American Spanish speakers. =========== P A N A M A =========== BLADEX: Successfully Completes 22 Million Share Rights Offering --------------------------------------------------------------- Bladex (NYSE: BLX) announced Thursday the final results of its rights-offering based capital raising, which concluded last Friday, June 20, 2003. Following an over- subscription of the issue that resulted in subscriptions for a total of 23.2 million common shares, the entire 22 million issue of new shares was subscribed by shareholders of record at June 2, 2003 at the $6.68 per-share price announced on Wednesday, June 18, 2003. Total proceeds of the capitalization will amount to $146,960,000. Bladex chose to offer 22 million shares in order to provide a cushion so that if Bladex's share price declined substantially, it would be still able to raise its target of $100 million. Commenting on the results of the capitalization, Mr. Jose Castaneda, Chief Executive Officer of Bladex, said: "We are extremely gratified by our shareholders' response to our business case for additional capital. The overwhelming success of our offering represents a strong vote of confidence in Bladex's business model and franchise. We are also encouraged by the clear demonstration of Bladex's ability to attract new capital from current shareholders, in spite of the remaining uncertainties in our region and in the financial markets in general. "The success of the Rights Offering confirmed the strength of our unique shareholding structure, as well as the value assigned to Bladex's mission by multilateral organizations. Our main public sector shareholders, together with Multilateral Organizations such as the IFC, formed the Core Support Group, which insured the success of the transaction by backing it with more than $100 million in commitments to make up for any shortfalls in demand. We are especially grateful to the many people in Governments, Government Institutions, and Multilateral Agencies who were instrumental in forming the Core Support Group in the midst of the challenging conditions faced by Latin America, Bladex and the market during the ten months that we worked on the project. "As a company and as individuals, the Board and the management of Bladex are looking forward to responding to and exceeding our shareholders' expectations, while continuing to fulfill our critical mission of providing dependable, first rate trade finance services to our clients in the region," Mr. Castaneda concluded. Following the capitalization, Bladex's shareholding composition will be 16.1% Class A (which enjoys certain supermajority voting rights), 10.4% Class B, and 73.5% Class E, and the total number of common shares outstanding will be approximately 39.3 million shares. For further information access our Web site on the Internet at: www.blx.com, or call: Carlos Yap S. Senior Vice President, Finance and Performance Management BANCO LATINOAMERICANO DE EXPORTACIONES, S.A. Head Office Calle 50 y Aquilino de la Guardia Apartado 6-1497 El Dorado Panama City, Republic of Panama Tel. No. : (507) 210-8581 Fax No. (507) 269-6333 E-mail internet address: cyap@blx.com -or- William W. Galvin The Galvin Partnership 76 Valley Road Cos Cob, CT 06807 U.S.A. Tel. No.: (203) 618-9800 Fax No. (203) 618-1010 E-mail internet address: wwg@galvinpartners.com ======= P E R U ======= AEROCONTINENTE: Accuses Chilean Banks of Conspiracy --------------------------------------------------- The Peruvian Aero Continente airline accused four Chilean banks of conspiring to close its bank accounts in Chile, without providing any clear reasons for their actions, reports South American Business Information. Not only that. The banks - Banco Estado de Chile, Bilbao Vizcaya, Santander - Santiago and Banco de Chile, also denied the airline the right to open accounts in dollars. Aero Continente, like all airlines, needs to have current accounts in both local and foreign currencies in order to operate and do business with travel agencies. Aero Continente alleges that the closing of these accounts is a concerted attempt to impede it from doing business in Chile, despite the fact that the Lima-Santiago flight which it operates are covered under a bilateral agreement. The airline has had a history of difficulties with Chilean authorities regarding its operations in that country. ================= V E N E Z U E L A ================= PDVSA: Schedules Annual Meeting For Mid-July -------------------------------------------- Venezuela's state oil company PDVSA will hold its annual meeting in mid-July at which it will present the financial situation of the industry as well as new projects in Venezuela and in foreign countries, Venpres reports, citing energy and mines minister Rafael Ramirez. At the same meeting, PDVSA will present a report detailing the losses that resulted from the sabotage of oil installations by workers during the national strike in December, Ramirez said, adding that the report will be presented to the Security Exchange Commission (SEC). PDVSA: Poised to Increase Production Following Oil Discoveries -------------------------------------------------------------- PDVSA is on the road to increase its production to 5 million barrels a day (b/d). Company president Ali Rodriguez made the forecast in a television interview following oil discoveries in the eastern part of the country, according to government press agency Venpres. "The luck is with PDVSA because we have made discoveries in the east of the country, and that makes me think we will meet our target to increase production to 5 million barrels a day," Rodriguez said. PDVSA will maintain its crude inventories at 16.2 million barrels, representing 40% of its storage capacity, PDVSA's commercial and supply manager Nelson Reyes said, relates Venpres. The amount allows PDVSA to manage its daily production and operation of refineries without storage problems, Reyes said, adding that it is normal for reserves to drop when exports increase. Reserves in the east of the country are 2.7 million barrels, while reserves in the west are 9.9 million barrels and storage facilities in foreign countries have 3.6 million barrels of reserves. *********** 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 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 * * *