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/raid1/www/Hosts/bankrupt/TCRLA_Public/030716.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 Wednesday, July 16, 2003, Vol. 4, Issue 139 Headlines A R G E N T I N A ACINDAR: Tops Stock Winners List This Year ACINDAR: Antidumping Probe Demanded by Industry Association CELINA Y ASOCIADOS: Court Declares Bankruptcy Official CENTRAGAS: S&P Affirms Rating; Changes Outlook to Stable COMPLEJO ROXINI: Court Affirms Bankruptcy DISTRIBUTION SYSTEMS: Bankruptcy Declared by Local Court ESTELAR SAN LUIS: Court Announces New General Report Deadline EXPRESO MASER: Court Declares Bankruptcy INSTITUTO GALILEO: Deemed Bankrupt By Court LUIS ROMERO: Court Orders Bankruptcy MULTIRED: Acuerdo Preventivo Accepted SPREAFICO: Court Sets New Deadline For General Report SUENO ESTELAR: New General Report Date Announced B E R M U D A GLOBAL CROSSING: Court Grants 5th Exclusivity Period Extension B R A Z I L BESC: To Continue Reporting Red in 1H03 BRAZILIAN TELECOMS: S&P Says Ratings Unaffected By Court Ruling GERDAU: Inks Technical Deal With Rio Grande Do Sul Government C H I L E COEUR D'ALENE: Reports Further $34M Reduction in Debt ENDESA CHILE: Moody's Confirms Ba3 Rating On Notes, Bonds C O L O M B I A * S&P Revises Outlook on Colombia's Long-Term Ratings to Stable D O M I N I C A N R E P U B L I C BANINTER: Fitch Withdraws Ratings as BanInter Disintigrates E C U A D O R PROFUTURO: Regulator Forecasts Liquidation in Two Months M E X I C O AZTECA HOLDINGS: Exchange Offers Officially Expire GRUPO IUSACELL: Board Silent On Paging Company's Offer TELSCAPE COMMUNICATIONS: Lowers Call Rates To Mexico TV AZTECA: Announces Encouraging 2Q Estimate P E R U SIDERPERU: Indecopi Denies Request To Hold Creditors' Meeting V E N E Z U E L A CANTV: Slams Government's First Half Statistics on FDI PDVSA: Deltana Winners To Be Named Soon PDVSA: President Chavez Reports Decrease In Production Costs - - - - - - - - - - ================= A R G E N T I N A ================= ACINDAR: Tops Stock Winners List This Year ------------------------------------------ Acindar Industria Argentina de Aceros SA stock is the best performer among 51 countries and Europe tracked by Bloomberg. According to Bloomberg, the Company's shares have almost tripled this year to lead the benchmark Merval index to a 65% gain in dollar terms. Investors are betting Acindar will benefit from US$2.9 billion in government spending on roads and housing this year. President Nestor Kirchner is working to pull the Argentine economy out of its worst slump on record and construction is the centerpiece of his plan to lower the 18% unemployment rate in the country. The industry has also been buoyed by a rebound in the currency, which has bolstered consumer confidence and prompted many Argentines to invest in renovating their homes. The peso is up 22% against the dollar this year after a 70% plunge last year led to a 28% decline in construction. Acindar's stock closed Friday at ARS2.13, up from 84 centavos at the end of last year, giving it the biggest advance of the 14 stocks in the Merval index. The rising stock is also attributed to a surge in Acindar's exports after the devaluation and an agreement with creditors to restructure debt it defaulted on. CONTACT: ACINDAR INDUSTRIA ARGENTINA DE ACEROS SA 1609 Boulogne, San Isidro E. Zeballos Esq. Uruguay Buenos Aires, Argentina Phone: +54 11 47198500 Fax: +54 11 47198501 Home Page: http://www.acindar.com.ar/ir/eng/default.htm Contacts: Lic. Jose I. Giraudo, Investor Relations Manager Phone: (54-11) 4 719-8674 Fax: (54-11) 4 719-8501 Int. 8674 Lic. Andrea Dala, Investor Relations Officer Phone: (54-11) 4 719-8672 Fax: (54-11) 4 719-8501 Int. 8672 ACINDAR: Antidumping Probe Demanded by Industry Association ----------------------------------------------------------- The Brazilian tube and metal parts industry association Abitam is preparing a request for the Brazilian government to open an antidumping investigation into Argentine steelmaker Acindar, Business News Americas reports, citing Sao Paulo business daily Valor Economico. "We are working to present the request this month," Abitam head Jose Adolfo Siqueira said. Abitam accused Acindar, Argentina's largest long steelmaker, for dumping welded pipes on the furniture and civil construction markets. Acindar is yet to finalize a response to the accusation for lack of concrete information, according to spokesperson, Gustavo Pittaluga. Abitam has not provided prices at which Acindar sold its tubes in Brazil. However, market sources say the Argentine company was selling at US$300/t, compared to Brazilian competitors' US$520/t. The pipes are distributed by Belo Horizonte-based steelmaker Belgo-Mineira, which has a 20.4% stake in Acindar. Ibrahim Abrahao Chaim, the head of sales at Belgo, countered that the tubes were sold at over US$500/t. "It would be extreme stupidity to bring tubes from other countries and sell them below the price of production in the local market," he said. CELINA Y ASOCIADOS: Court Declares Bankruptcy Official ------------------------------------------------------ Court No. 21 of Buenos Aires announced the bankruptcy of Celina y Asociados S.R.L., according to local news source Infobae. The Court assigned Mr. Jose Salem Ini as receiver for the proceedings. Credit claims will be verified until November 12 this year. CONTACT: Celina y Asociados Montiel 5078 Buenos Aires Mr. Jose Salem Ini Presidente Peron 1730 Buenos Aires CENTRAGAS: S&P Affirms Rating; Changes Outlook to Stable -------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB' foreign currency rating on US$172 million senior secured notes due 2010 issued by Centragas-Transportadora de Gas de la Region Central de Enron Development and Cia. S.C.A. (Centragas). The outlook is changed to stable from negative. The stable outlook reflects that of the Republic of Colombia. The rating on Centragas reflects the risks of a one-source revenue stream, the non-investment grade off-taker, the liquidity risk from Centragas' bondholders put option, and the non-recourse to either the sponsors or off-taker. However, an adequate tariff structure and on-time payment record from Ecopetrol, the bankruptcy-remote structure that isolates Centragas from its parents, as well as a healthy operation and debt service coverage record partially offset the above-mentioned weaknesses. COMPLEJO ROXINI: Court Affirms Bankruptcy ----------------------------------------- Complejo Roxini S.A. was declared bankrupt by Court No 15 of Buenos Aires. According to local news source Infobae, the Buenos- Aires based company is now under administration of Ms. Mabel Lopez, who was assigned receiver by the Court. Creditors must have their credit claims verified before the September 11 deadline, said the report. CONTACT: Complejo Roxini S.A. Tacuari 566 Buenos Aires Ms. Mabel Lopez Murguiondo 3607 Buenos Aires DISTRIBUTION SYSTEMS: Bankruptcy Declared by Local Court -------------------------------------------------------- Buenos Aires-based company Distribution Systems, S.A. is now in the hands of its receiver, Mr. Edgardo Alberto Borghi, following a ruling by Court No. 25 that put the Company under bankruptcy. The receiver is scheduled to verify claims until September 3 this year. The individual reports will be filed on October 15 while the general report will be on November 26 this year. CONTACT: Mr. Edgardo Alberto Borghi Luis Valle 2176 Buenos Aires ESTELAR SAN LUIS: Court Announces New General Report Deadline ------------------------------------------------------------- Court No. 22 of Buenos Aires announced that the new deadline for the general report (Article 39) for the reorganization of Estelar San Luis S.A. is August 4 this year. The Informative audience will be on November 3, Infobae says, without revealing if the Court has assigned a receiver for the process. EXPRESO MASER: Court Declares Bankruptcy ---------------------------------------- Court No. 24 of Buenos Aires announced the bankruptcy of local company Expreso Maser S.A., relates Infobae. With assistance from Secretary No. 47, the Court assigned Mr. Jorge Tomas Byrne as receiver. Creditors must have their claims verified by August 8 this year, as the receiver is scheduled to file the individual reports on October 10. The general report is expected to be submitted on November 10. CONTACT: Jorge Tomas Byrne Piedras 1319 Buenos Aires INSTITUTO GALILEO: Deemed Bankrupt By Court ------------------------------------------- Instituto Galileo S.A. was declared bankrupt by Court No. 21 of Buenos Aires, according to local news source Infobae. Mr. Juan Carlos Facoltini takes charge of the Company as designated receiver. The deadline for verification of credit claims is November 26 this year. The receiver will submit the individual and the general reports on February 16 and March 30, 2003, respectively. CONTACT: Mr. Juan Carlos Facoltini Bernardo de Irigoyen 330 Buenos Aires LUIS ROMERO: Court Orders Bankruptcy ------------------------------------ Court No. 9 of Buenos Aires ruled that local company Luis Romero S.R.L. be put under bankruptcy. The receiver, Mr. Mario Eduardo Guimpel, will verify credit claims until August 28 this year. The individual reports will be submitted on October 9, while the general report will be submitted on November 25 this year. CONTACT: Mr. Mario Eduardo Giumpel Parana 768 Buenos Aires MULTIRED: Acuerdo Preventivo Accepted ------------------------------------- Multired S.A.'s "Acuerdo Preventivo" has been accepted by Court Juzgado N§13, Secretar¡a N§26, reports Infobae. The agreement allows the Company, a credit cards service provider, to avoid having to go through a "Concurso Preventivo" process. SPREAFICO: Court Sets New Deadline For General Report ----------------------------------------------------- Buenos Aires Court No. 22 moved the deadline for the general report of Spreafico S.A.I.C. to August 4, 2003. The Company is currently under "Concurso Preventivo". Infobae relates that the informative audience, which is part of the reorganization process, will be on November 3, 2003. SUENO ESTELAR: New General Report Date Announced ------------------------------------------------ The general report on the reorganization process which Argentine company Sueno Estelar is undergoing, will be filed on August 4, 2003, announced Court No. 22 of Buenos Aires. The corresponding informative assembly will be on November 3 this year, said Infobae. The Company is currently undergoing reorganization after its "Concurso Preventivo" filing. ============= B E R M U D A ============= GLOBAL CROSSING: Court Grants 5th Exclusivity Period Extension -------------------------------------------------------------- Judge Gerber believes that terminating the Global Crossing Debtors' exclusive periods would have the potential for serious prejudice to creditors. There is at least a risk, if not certainty, that terminating exclusivity now -- particularly when it would not be for the purpose of permitting a creditor constituency to file a competing plan, but rather to facilitate a competing bid - would send the wrong message, and could damage the regulatory approval process that is so important to all creditors, or, at least, all creditors other than those who are bidders. Accordingly, Judge Gerber extends the Exclusive Filing Period to the earlier of October 28, 2003, or in the event the Purchase Agreement is terminated in accordance with its terms, two weeks from the date of termination. The Exclusive Solicitation Period is also extended until 60 days after the Extended Exclusive Filing Period. (Global Crossing Bankruptcy News, Issue No. 43; Bankruptcy Creditors' Service, Inc., 609/392-0900) =========== B R A Z I L =========== BESC: To Continue Reporting Red in 1H03 --------------------------------------- Brazil's Santa Catarina state bank Besc is yet to recover financially, as it is still writing off bad loans from previous administrations and facing lawsuits related to the layoff of 4,400 people in 2000. Citing Besc's chief executive Eurides Mescolotto, Business News Americas reports that the bank expects to report a net loss of BRL15 million (US$5.23mn) in the first half, compared to a profit of BRL38 million in the same period last year. The executive revealed that the bank's net worth, which corresponds to total assets minus total liabilities, stood at BRL98 million at the end of May. Provisions of BRL36 million are enough to prevent bad loans and lawsuits dragging net worth to the red, he said. Besc reported a net loss of BRL980 million last year after it spent BRL800 million on labor lawsuits and paid BRL400 million it owed its employees' pension fund. BRAZILIAN TELECOMS: S&P Says Ratings Unaffected By Court Ruling --------------------------------------------------------------- Standard & Poor's Ratings Services said Monday that the provisional decision on price readjustments by Brazil's Supreme Court of Justice does not have an immediate impact on the ratings of Tele Norte Leste Participacoes S.A. (TNL, local currency: BB/Stable/--; foreign currency: B+/Stable/--; national scale: brAA/Stable/--), or Brasil Telecom Participacoes S.A. (national scale: brAA/Stable/--) and its parent, Brasil Telecom S.A. (BRT, national scale: brAA/Stable/--). The provisional ruling approves the usage of the IPCA index (Ample Consumers' Price Index) instead of the IGP-DI (General Inflation Index) to readjust prices set by the fixed-line telephone incumbents. This decision allows Brazilian fixed-line incumbents to readjust its prices at an average rate of 17.24% (maximum of 23.95% for non-residential clients), instead of 28.75% (maximum of 41.75%) as previously calculated by the concession contracts and approved by the regulatory body - ANATEL. Although the decision has a direct negative impact on Brazilian incumbents' projected cash flow, cash flow protection measures should remain adequate for the rating category. Both companies hold conservative financial profiles, and should continue to generate sufficient cash flow to cope with their maturities in the near future. Moreover, TNL and BRT ratings have been somewhat conservative for their current financial profile, to reflect Standard & Poor's concerns on the continuing regulatory risks in the local telecom industry. Until now, despite the many discussions regarding the fixed-line tariff revision, ANATEL has kept its independence and contracts have been maintained. To maintain the credibility of the Brazilian telecommunications regulatory environment and investors' confidence in the industry, it is important that the Supreme Court quickly rule on the matter and continue to respect contractual clauses. On the other hand, the court's countrywide provisional ruling (if maintained) overlaps all previous verdicts from Juvenile Courts, which should facilitate the incumbents' defense and the negotiations with the Federal Government. GERDAU: Inks Technical Deal With Rio Grande Do Sul Government ------------------------------------------------------------- Brazilian long steel group Gerdau and the state government of Rio Grande do Sul, where Gerdau is based, struck a technical cooperation agreement, Business News Americas reports, citing a spokesperson. The accord, which was signed by state governor Germano Rigotto and Gerdau Chairman Jorge Gerdau Johannpeter, is aimed at developing joint actions and programs aimed at modernizing public services, reduce waste of public resources and improve efficiency of government operations. Gerdau is the largest long steel producer in the Americas with installed capacity of 14Mt/y. ========= C H I L E ========= COEUR D'ALENE: Reports Further $34M Reduction in Debt ----------------------------------------------------- Coeur d'Alene Mines Corporation (NYSE: CDE), the world's largest primary silver producer, announced Monday that it has reduced the Company's outstanding convertible indebtedness by an additional $34 million. That amount represents a 66% reduction in Company- wide debt since the end of the first quarter of 2003. After these recent debt reductions, the Company's convertible indebtedness due in December 2003 and 2004 totals $15.2 million. Coeur's cash and cash equivalents as of June 30, 2003 was $19.8 million. Since the beginning of 1998, Coeur's total debenture indebtedness has been reduced from $288.6 million to the current $28.9 million. "Coeur is pleased to announce additional meaningful reductions in the Company's remaining indebtedness, further strengthening our balance sheet and essentially completing the major restructuring begun five years ago," said Dennis E. Wheeler, Chairman and Chief Executive Officer. "The timing of this debt reduction is also beneficial to current shareholders since Coeur is issuing less shares now than if the convertible notes had been held to full maturity. "Meanwhile, our cash position remains strong, with nearly $20 million of cash and equivalents as of the end of June. This allows us to aggressively pursue our growth strategy, led by Coeur's new generation of high grade/low cost mines in South America, which have combined to fuel our production growth, lower cash costs, and significantly improve Coeur's cash-flow profile," Mr. Wheeler added. The transactions involved the conversion of 27.5 million shares of common stock for $32.6 million principal amount of the Company's 9% Senior Subordinated Notes due February 2007. The exchange of the 9% Senior Subordinated Notes resulted in a 1.1 million share reduction in the number of shares that would have been issued had the Notes been outstanding until maturity. In addition, the Company exchanged .4 million shares of common stock for $0.5 million principal amount of 6.375% Convertible Subordinated Debentures due January 2004, and the exchange of .6 million shares of common stock for $0.8 million principal amount of 7.25% Convertible Subordinated Debentures due October 2005 in privately negotiated transactions. After taking these exchanges and other recent conversions into account, Coeur now has approximately 178.6 million shares outstanding. Additional information will be presented in a Current Report on Form 8-K to be filed by Coeur with the SEC. Coeur d'Alene Mines Corporation is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The Company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile and Bolivia. CONTACT: Tony Ebersole Phone: 208-665-0335 ENDESA CHILE: Moody's Confirms Ba3 Rating On Notes, Bonds --------------------------------------------------------- Moody's Investors Service confirmed the Ba3 rating of Endesa Chile S.A's senior unsecured notes and bonds, and revised the outlook to positive from stable. Simultaneously, Moody's assigned a rating of Ba3 to Endesa Chile's ten-year, US$200 million of proposed senior unsecured notes. The rating outlook is positive. Moody's explained that the change in outlook recognizes the potential for credit improvement arising from continued implementation of the Company's program to sell assets and reduce debt. In the past four months, Endesa Chile has sold generation, transmission and infrastructure assets totaling over US$300 million, reduced its debt to US$4.4 billion, and secured a US$743 million bank credit facility. But while these developments underpin a better credit outlook and afford the Company a slightly greater degree of flexibility in the near term, Endesa Chile remains subject to business segment risk in Argentina and Brazil, financial performance remains weak, and the Company continues to face foreign exchange volatility risk as a substantial portion of its high debt burden is denominated in US dollars, said Moody's. Endesa Chile, an electric generation company with operations in Chile, Peru, Columbia, Brazil, and Argentina, is owned 60% by Enersis S.A., which is, in turn, owned 65% by Spanish company Endesa S.A.. =============== C O L O M B I A =============== * S&P Revises Outlook on Colombia's Long-Term Ratings to Stable --------------------------------------------------------------- Standard & Poor's Ratings Services said Monday that it revised its outlook on its 'BBB' long-term local and 'BB' long-term foreign currency sovereign ratings on the Republic of Colombia to stable from negative. The outlook change reflects improved fiscal performance, higher growth prospects and better security in the country. According to sovereign analyst Richard Francis, the economic measures in the upcoming fall 2003 national referendum are expected to pass, given the overwhelming popular support that President Alvaro Uribe commands (nearly 70%). "The spending freeze and pension measures contained in the referendum are crucial to further fiscal consolidation, which is needed to stabilize the government's adverse debt dynamics," said Mr. Francis. "With the measures, the general government deficit is expected to decline to 3.6% of GDP in 2003 from 5.2% in 2002, and general government debt to stabilize at close to 53% of GDP," he added. After five years of lackluster growth averaging just 0.4%, the country's economic growth prospects have improved. Growth is now projected at 2.5% in 2003 and over 3.0% in 2004. Improved growth prospects largely reflect the successes of President Uribe's strategy of improving national security while maintaining macroeconomic stability. "Despite the improved outlook, significant challenges remain in maintaining fiscal discipline due to greater-than-expected slippage in the area of pensions and the need for significant outlays in military spending," Mr. Francis said. "If there is significant fiscal slippage or sharp deterioration in the nation's security, there could be renewed downward pressure on the government's creditworthiness. On the other hand, fiscal prospects improve further and the debt and interest burdens decline, the ratings could improve," he concluded. =================================== D O M I N I C A N R E P U B L I C =================================== BANINTER: Fitch Withdraws Ratings as BanInter Disintigrates ----------------------------------------------------------- Fitch Ratings, the international rating agency, has withdrawn Banco Intercontinental's (BanInter) long-term foreign currency rating of 'B', short-term foreign currency rating of 'B', individual rating of 'E' and support rating of '4T'. This action follows the July 7, 2003 resolution by the Junta Monetaria, the Dominican Republic's highest financial regulatory body, to revoke BanInter's authorization to continue operating. This resolution authorizes the Dominican Republic's banking superintendence to dissolve BanInter on the grounds of dubious accounting practices that led to its intervention and of its financial deficiencies, including insufficient liquidity, poor asset quality and insufficient capital. BanInter was the third largest bank in the Dominican Republic, with a market share of around 13% at end-2002. The bank was family-owned, with its majority shareholders, the Baez family, having interests in news media and insurance, among other sectors. On April 7, 2003, the financial authorities of the Dominican Republic announced the intervention of BanInter. That action in effect revoked a previous agreement signed on March 24, 2003, whereby the shareholders of Banco del Progreso, the country's seventh largest private commercial bank, had stated their intention of purchasing BanInter. The intervention was triggered by the uncovering of illicit accounting practices at BanInter, which resulted in a substantially underestimated balance sheet, while excess (off-balance) funding was reportedly being used to finance the controlling shareholder's other businesses. Recently, the authorities announced that an agreement has been signed with Canada's Bank of Nova Scotia whereby the latter will buy from the government a portion of BanInter's assets, including its credit card business and a number of its branches, while re-hiring a portion of the extinguishing bank's staff. In July 2002 Fitch downgraded the individual rating of BanInter from 'C/D' to 'D', on the basis of a tight capital base following years of rapid growth. The bank's Long-term rating of 'BB-' was maintained following the intervention by the authorities as the bank's deposits were guaranteed and are still being honored by the state. However, the bank's long-term foreign currency rating was downgraded to 'B' on June 17, 2003 in common with the long- term ratings of other Dominican banks as systemic risks rose due to the rapid deterioration of the economic and operating environment and fears that this could require that authorities provide further support to the system at a time when its ability to do so was under strain following the BanInter intervention. CONTACT: Franklin Santarelli +58 212 286 3356, Caracas Carlos Fiorillo +58 212 286 3232, Caracas Gustavo Lopez +1-212-908-0853, New York Peter Shaw +1-212-908-0553, New York MEDIA RELATIONS: Matt Burkhard +1-212-908-0540, New York ============= E C U A D O R ============= PROFUTURO: Regulator Forecasts Liquidation in Two Months -------------------------------------------------------- El Salvador's pension regulatory agency expects to complete the liquidation of local pension fund manager Profuturo in September or October this year, Business News Americas reports, citing deputy pension regulator Fransisco Sorto. The official also revealed that the regulator expects to appoint a chief liquidator this month and will allow Profuturo's affiliates a 90-day grace period to voluntarily migrate to one of the two remaining pension fund managers AFP BBVA Crecer and AFP Confia. Affiliates who fail to decide within the 90-day period will be assigned a new pension fund manager by the regulator. Some US$4 million in pension funds will accompany the affiliates in the migratory process. Profuturo, a very small operation owned by local businessmen, was intervened by the Salvadorian authorities in June 2000 on solvency woes. =========== M E X I C O =========== AZTECA HOLDINGS: Exchange Offers Officially Expire -------------------------------------------------- Azteca Holdings, S.A. de C.V., the controlling shareholder of TV Azteca, S.A. de C.V. (NYSE: TZA), one of the two largest producers of Spanish language television programming in the world, announced that as of 5:00 p.m. on July 11, 2003, the expiration date of the exchange offers for its 10 1/2% Senior Secured Notes due 2003 and its 10 3/4% Senior Secured Amortizing Notes due 2008, approximately US$33,698,000 in aggregate principal amount of the 10 1/2% notes and approximately US$62,541,000 in aggregate principal amount of the 10 3/4% notes had been tendered for exchange. The exact amount that was tendered of each series is subject to final verification. On July 15, 2003, Azteca Holdings will pay the remaining outstanding balance on the 10 1/2% notes, the initial amortization and interest payments on the 10 3/4% notes and the accrued interest owed to the holders of the 10 1/2% notes and the 10 3/4% notes who participated in the exchange offer. This press release does not constitute an offer to sell or the solicitation of an offer to buy the new 12 1/4% Senior Amortizing Notes due 2008 offered in exchange for the 10 1/2% notes and the 10 3/4% 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 new 12 1/4% notes have not been registered in the Securities Section of the National Registry of Mexican Securities (Seccion de Valores del Registro Nacional de Valores de Mexico) and accordingly cannot be the subject of a public offering or exchange in Mexico. The exchange offers are being made pursuant to an Offering Memorandum dated June 12, 2003, as supplemented by the 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 55.0% 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, 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, operator of an Internet portal for North American Spanish speakers. CONTACT: Azteca Holdings, S.A. de C.V. Diego Foyo, CFO Phone: +011-5255-3099-1333 Email: dfoyo@tvazteca.com.mx Home Page: http://www.tvazteca.com.mx GRUPO IUSACELL: Board Silent On Paging Company's Offer ------------------------------------------------------ The board of Mexican mobile operator Iusacell refused to make a recommendation to shareholders regarding an offer by a local paging company to buy 100% of the Company's shares. Business News Americas recalls that paging company Movil@ccess, part of the group of companies controlled by Mexican magnate Ricardo Salinas Pliego, launched a US$10-million offer July 1 for Iusacell shares traded in the US and Mexico. Movil@ccess would also assume US$815 million in debt. In a statement to Mexico's BMV stock exchange Monday, the Iusacell board told shareholders to weigh their options and consult their financial advisors before deciding for or against the offer. There are too many possible outcomes, both negative and positive for the stock, to be able to make the call, the board said in the statement. Iusacell's controlling shareholders, Verizon Communications Inc. and Vodafone Group Plc, have already agreed to sell their respective 39.4% and 34.5% stakes to Movil@ccess. While the board was short on advice for Iusacell shareholders, it did confirm that Movil@ccess has deposited the necessary funds to close the deal in an escrow account with The Bank of New York, says Business News Americas. TELSCAPE COMMUNICATIONS: Lowers Call Rates To Mexico ---------------------------------------------------- Telscape Communications, a telephone company serving the Southern California Hispanic market, announced an amazing one cent rate to Tijuana and lower rates to all of Mexico as part of the Simple 3 package. The company's new plan addresses the calling needs of San Diego consumers who frequently call Tijuana. These consumers pay high international rates and monthly access fees when they place their calls to Tijuana. Telscape is making this rate available without making customers pay any additional monthly fees. The Simple 3 package is competitively priced at $21.95 per month for local and long distance access, plus three features, such as Call Waiting, Caller I.D. and Call Return. The rate to Mexico's frontier region other than Tijuana is 10 cents per minute. The rate to the interior region is 20 cents per minute. Existing Telscape customers in San Diego with the Simple 3 plan will automatically receive the new rates; no additional action is required. New customers can call 1-800-835-7227 (1-800-TELSCAPE) for additional information and subscription. About Telscape Communications Telscape Communications, Inc. is a local and long distance telecommunications company, which operates the nation's only fully bilingual network using Nortel Networks technology. Telscape has achieved unprecedented success in meeting the telecommunications needs of Hispanic consumers in California. Currently, Telscape serves the telecommunication needs of more than 60,000 Southern California customers. For additional information, visit the company's website at www.telscape.com. CONTACT: TELSCAPE COMMUNICATIONS Manuel Campos Tel: +1-626-415-1065 mcampos@telscape.net TV AZTECA: Announces Encouraging 2Q Estimate -------------------------------------------- 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 Monday that it expects second quarter 2003 EBITDA to be up 5% to approximately Ps.878 million (US$84 million). Second quarter EBITDA margin is expected to be 49%, a 400 basis points increase from the same period of last year. The company anticipates EBITDA and EBITDA margin will reach their highest second quarter levels in five years. The company noted that net sales are expected to decrease 4%, reflecting the absence of Ps.261 million (US$25 million) of revenue related to the 2002 Soccer World Cup that was recorded during the second quarter a year ago. Political advertising for the July 6, 2003 elections did not totally compensate that revenue, as it was approximately Ps.105 million (US$10 million). On a proforma basis, excluding revenue related to the political advertising, as well as revenue from the 2002 Soccer World Cup, net sales are expected to increase 4%, reflecting solid performance of ongoing business operations. TV Azteca anticipates that total costs and expenses during the second quarter will be approximately 12% below the levels of the same period of last year. The decrease is attributable to lower costs associated with the transmission of the political elections compared with costs in connection with the 2002 Soccer World Cup, as well as to the company's effective cost control strategies. The company expects second quarter cash generation to be in line with the US$125 million generation anticipated for the full year 2003. TV Azteca will publish its second quarter results on July 28. 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. Except for historical information, the matters discussed in this press release are forward-looking statements and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Risks that may affect TV Azteca are identified in its Form 20-F and other filings with the US Securities and Exchange Commission. CONTACT: TV Azteca S.A. de C.V. Investor Relations: Bruno Rangel Phone: 5255-3099-9167 Email: jrangelk@tvazteca.com.mx Omar Avila Phone: 5255-3099-0041 Email: oavila@tvazteca.com.mx Media Relations: Tristan Canales Phone: 5255-3099-5786 Email: tcanales@tvazteca.com.mx ======= P E R U ======= SIDERPERU: Indecopi Denies Request To Hold Creditors' Meeting ------------------------------------------------------------- Peruvian steelmaker Siderperu informed the Lima stock exchange that competition regulator Indecopi rejected a request to hold a meeting of the steelmaker's creditors, says Business News Americas. BNP Paribas-Andes bank, president of a committee of Siderperu's creditors, requested the meeting in order to discuss modifications to the Company's debt restructuring agreement. BNP Paribas-Andes said it will appeal the ruling made by Indecopi's commission on debt repayment proceedings. Meanwhile, Siderperu is evaluating "alternative plans." Siderperu had asked BNP Paribas-Andes to set up a creditors' meeting to discuss the reprogramming of certain payments agreed in a global restructuring agreement (AGR) signed with creditors on April 24 last year. The proposal included postponing a payment to general financial creditors of fixed quotas that fall on June 30, September 30 and December 30, Siderperu said previously. ================= V E N E Z U E L A ================= CANTV: Slams Government's First Half Statistics on FDI ------------------------------------------------------ A spokesperson from Venezuelan telephone giant CA Nacional Telefonos de Venezuela (CANTV) denied that the Company got US$897 million in non-oil foreign direct investment in the first half, reports Dow Jones. "We have no reference for that number," the spokesperson said after Venezuela's state-run news agency reported over the weekend that foreign direct investment soared to US$1.03 billion in the first half, including the CANTV amount registered in June. That compared to US$187 million in the same period last year. Possibly, the government is using some figure resulting from activity in its shares as investors use them as a vehicle to buy scarce dollars, the spokesperson said. CANTV has found buyers over the last month after many investors discovered a loophole in stringent foreign-exchange controls. Buying CANTV in bolivars and selling the American Depositary Receipts in the U.S. is proving slightly cheaper than a black market that trades at up to 50% more than the dollar's fixed rate, says Dow Jones. Meanwhile, the Superintendent of Foreign Investments, Miriam Aguillera, told Dow Jones Newswires in a telephone interview that the US$879- million investment was actually made in 1996 but was registered in June when CANTV had to comply with regulations to get foreign currency. "For us, it's new investment because it wasn't registered until June," Aguillera said. Usually, foreign investment must be registered within 120 days. PDVSA: Deltana Winners To Be Named Soon --------------------------------------- Carlos Barbieri, the project manager of Venezuelan state oil company PDVSA's Deltana project, expects the energy ministry to name the winners of the contract for the three remaining blocks on the Deltana offshore natural gas platform "very soon," relates Business News Americas. PDVSA and energy ministry officials is likely to make the announcement at a conference being organized by Venezuela's embassy in Washington, DC on July 17-18 entitled "Venezuela, A Reliable Partner: Securing US Energy Needs, Enhancing Business opportunities," Barbieri said. The Deltana Platform project consists of a 27,000 sq. km. block, with estimated gas reserves of about 38 trillion cubic feet. PDVSA: President Chavez Reports Decrease In Production Costs ------------------------------------------------------------ Venezuelan President Hugo Chavez announced that state oil company PDVSA has reduced crude oil production costs by nearly 40% to about US$4.11 a barrel in 2003 from US$6.70/b last year, relates Business News Americas. The President, who revealed the information in his "Alo Presidente" broadcast Sunday, attributed cheaper production to the restructuring and cost-cutting efforts at PDVSA following the December-January national strike. Apart from firing more than 18,000 managers, office staff, technicians and workers who joined the anti-government strike, President Chavez said the Company had also halted "unnecessary" drilling of wells. "They used to be drilling here, there and everywhere, without any need - that's stopped now," he said, adding that part of the problem was that PDVSA drilled many wells where "there wasn't the remotest possibility of finding oil." Despite reduced drilling activity, the President said PDVSA's crude production has recovered to pre-strike levels of about 3.1 million barrels a day (b/d), while the Company is producing 100,000b/d of orimulsion and 150,000b/d of liquefied petroleum gas (LPG). But according to private sources, June crude production stood at nearly 2.6 million barrels a day, which is about 16% less than the figure given by President Chavez and PDVSA officials. Analysts said that the reason for the lower production is that the Company does not have sufficient personnel to maintain production on its existing fields. They argued that as a result of the cutbacks, PDVSA will have no other choice but to open up the oil industry to greater private sector participation. *********** 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. 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