/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/030815.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 Friday, August 15, 2003, Vol. 4, Issue 161 Headlines A R G E N T I N A ACINDAR: To Miss Interest Payment on Bonds Due Friday AEROBOTIC: Court Grants Creditor Request For Bankruptcy AHOLD: Sale of LatAm Units Postponed To Month's End AT&T LATIN AMERICA: Telmex Looks To Acquire Several Units ATLANTE SACIFI: Court Approves Creditor's Bankruptcy Petition CONFORT ONCE: Creditor's Request For Bankruptcy Granted CONIV: Court Orders Bankruptcy DISCO: Ahold Comments On Attachment Of Shares DON GUMERSINDO: Court Approves "Concurso Preventivo" Motion EDMOND: Enters Bankruptcy EMERGENCIAS SEMCA: "Concurso Preventivo" Motion Approved EQUIMAX: Court Orders Liquidation FARGO: Bimbo Likely To Increase Stake FARMACIAS 5000: Bankruptcy Proceeds With Credit Verification FASIL: Receiver Verifies Claims For Bankruptcy ICES: Last Day For Credit Verification Today LIBERIUS: Court Calls Creditors to Formal Meeting MANTRA: Creditor Requests Bankruptcy MAPIVAL: Creditor's Petition For Bankruptcy Approved by Court MARCELO LUGONES: "Concurso Preventivo" Motion Gets Court OK MICROCURROGADO GUARDIANI: Unpaid Debt Triggers Bankruptcy MILAN MOBILI: Court Announces Bankruptcy on Creditor Request MTM: Creditors Called To Formal Meeting NEW MILENIUM: Court Assigns Receiver PALMARES DEL PILAR: Court Declares Bankruptcy On Creditor Request PUBLIMAT: Seeks Court's Nod For Reorganization SANTA ISABEL: Suppliers To Take Legal Action Against New Owner SCP: Reports $195.33M Loss in the 1H03 SEG MEDICAL: Credit Verification Process Ends Today SERVICE SUR: Declared Bankrupt Upon Creditor Request SUPERMERCADOS ARAGONE: Court Declares Bankruptcy SYSTEM ALUMINIUM: Reorganization Process Starts TELEFONICA DE ARGENTINA/COINTEL: Fitch Downgrades Ratings to 'DD' B E R M U D A LORAL SPACE: Appoints BSI as Court Claims and Noticing Agent TYCO: Ex-Auditor Permanently Barred from Practicing Before SEC B R A Z I L CEMAR: Govt. To Embark on Another Attempt at Sale CEMIG: Analyzing Infovias' Future CEMIG: Seeks To Roll Over Debt; To Select Bank To Aid In Process CFLCL: Reduces Net Losses in the 2Q03 C O L O M B I A ELECTROLIMA: Regulator Dissolves Utility J A M A I C A TCRL: Owner Moves To Protect Creditors M E X I C O GRUPO TMM: FIC To Decide on NAFTA Rail by August 28 SATMEX: Sues Boeing For Satellite I Glitch U R U G U A Y * URUGUAY: Issues Government's Letter of Intent to the IMF V E N E Z U E L A CITGO: Confirms Relocation Plans PDVSA: To Export 428,000 Gallons Of Reformulated Gasoline To US PDVSA: Reports That Operations At El Palito Refinery Are Normal - - - - - - - - ================= A R G E N T I N A ================= ACINDAR: To Miss Interest Payment on Bonds Due Friday ----------------------------------------------------- Argentine long steelmaker Acindar said it will not make an interest payment on bonds due August 15 as part of its debt restructuring begun at the end of 2001, relates Business News Americas. The steelmaker is negotiating its outstanding debt, which stands at US$220 million, and on which it first defaulted in November 2001. In a recent statement, the Company revealed it has received notes of satisfaction from its creditors with regards to the progress of the negotiations. "Banks have expressed that the proposal for the company's restructuring is in the position to be brought to their respective credit committees for approval, which if such approval is obtained, would allow the preparation, negotiation and execution of the definitive documentation to proceed," Acindar said in the statement. The agreement foresees repaying the debt of some US$220 million over nine years with 18 semi-annual installments at a rate of 4% a year until 2004, then Libor plus 2% for 2005, Libor plus 2.5% for 2006 and then Libor plus 3% from 2007, Acindar officials said previously. Buenos Aires-based Acindar, controlled by Brazilian steelmaker Belgo-Mineira and Argentina's Acevedo family, produces some 1.2Mt/y of long steel products. CONTACT: ACINDAR S.A. Jose I. Giraudo, Investor Relations Manager Phone: (5411) 4719 8674 Andrea Dala, Investor Relations Officer Phone: (5411) 4719 8672 AEROBOTIC: Court Grants Creditor Request For Bankruptcy ------------------------------------------------------- Dr. Villanueva, who is in charge of Court No. 23 of Buenos Aires, approved a petition for the bankruptcy of Aerobotic S.A., reports local newspaper La Nacion. The Company's creditor Tipoiti S.A.I.C., to whom it owes some $27666, filed the motion. Mr. Marcos Urwicz is assigned receiver for the process. Creditors are required to hand in their proofs of claim for verification before October 3. The report did not mention whether the Court has set the deadline for the individual and general reports. CONTACT: Aerobotic S.A. Ave. Boyaca 1013 Buenos Aires Marcos Urwicz 6th Floor Ave. Corrientes Buenos Aires AHOLD: Sale of LatAm Units Postponed To Month's End --------------------------------------------------- The sale of Royal Ahold's units in Argentina, Brazil and Peru, which was scheduled for late July, has been postponed until the end of August. In Argentina, the list of candidates for Disco, Plaza Vea and Super Vea, has been reduced to five contestants: US Wal-Mart, French Casino, Chilean Cencosud, an equity managed by Francisco De Narvaez and another equity from the USA. Most of the potential buyers have some concerns that prevent them from putting up a definite bid. There are contingent liabilities, but anyone knows for sure what they are and how much they total, a source close to the negotiations said. Disco has not released its financial statements since September 2002. The dismissal of its top executives after Ahold considered there were irregularities in Disco's accounts is not clear and it is unknown whether they were paid or not. Ahold is reluctant to inform the debts with banks, suppliers and former employees in detail. Therefore, the potential buyers ignore how much they will exactly need to invest in the capitalization of the company. AT&T LATIN AMERICA: Telmex Looks To Acquire Several Units --------------------------------------------------------- Mexican phone carrier Telmex expressed interest in acquiring AT&T Latin America, with operations in Argentina, Peru, Brazil, Colombia and Chile, as it proceeds with its expansion plans. AT&T Corp., owner of a 67% stake in the Latin American subsidiary, is working on the selection of a purchaser with investment bank Greenhill. At present, there are only four candidates with chances: Chilesat (a unit of Southern Cross) and GTD Teleductos from Chile, a Brazilian consortium and Telmex. ATLANTE SACIFI: Court Approves Creditor's Bankruptcy Petition ------------------------------------------------------------- Court No. 23 of Buenos Aires, which is under Dr. Villanueva, approved a petition for the bankruptcy of Atlante Sacifi filed by the Company's creditor Juan Acosta. The City's Clerk No. 46, Dr. Timpanelli, assists the court on the case. The receiver for the case is Ms. Susaba Macchelli, to whom creditors must submit their claims for verification. The deadline for the authentication process is August 18. CONTACT: Atlante Sacifi 10th Floor Piedras St. 77 Buenos Aires Susana Macchelli 5th Floor Montevideo St. No. 561 Buenos Aires CONFORT ONCE: Creditor's Request For Bankruptcy Granted ------------------------------------------------------- Dr. Ottolenghi, insolvency judge for Buenos Aires' Court No. 1 put local company Confort Once under bankruptcy. The ruling comes after the Company's creditor Distrizan S.A. sought the Company's bankruptcy to failing to pay its $989 in debt. The Company, which markets home articles, was placed in the hands of Mr. Mario Leizerow, the designated receiver. The credit verification process will end on September 17 this year. Creditors are required to submit their claims to the receiver before the said date. CONTACT: Confort Once S.R.L. 21st Floor Corrientes 1585 Buenos Aires Mario Leizerow 7th Floor Lavalle 1290 Buenos Aires CONIV: Court Orders Bankruptcy ------------------------------ Court No. 7 of Buenos Aires ruled that Coniv S.A. is "Quiebra Decretada", putting the Company under bankruptcy. The city's Clerk No. 14 assists the court on the case, relates Infobae. The credit verification process will end on October 14 this year. Creditors are required to submit their claims for verification to the court-designated receiver, Mr. Luciano Melegari. CONTACT: Coniv S.A. F de Enciso 3929 Buenos Aires Luciano Melegari Bartolome Mitre 1131 Buenos Aires DISCO: Ahold Comments On Attachment Of Shares --------------------------------------------- Ahold has been informed by its legal counsel in Uruguay that Ahold's objection to the attachment on the company's shares in Disco, its Argentine supermarket subsidiary, has been denied. This attachment is the result of legal action before a Uruguayan court by former account holders of Banco Montevideo. Ahold is disappointed with this development. The company intends to request the lifting of the attachment. Ahold is currently seeking legal advice on this matter and cannot comment further until more is known. CONTACT: Royal Ahold N.V. P.O. Box 3050 1500 HB Zaandam Netherlands Phone: +31 (0)75 659 57 20 Fax: +31 (0)75 659 83 02 Home Page: http://www.ahold.com Corporate Communications: Phone: +31 75 659 57 20 DON GUMERSINDO: Court Approves "Concurso Preventivo" Motion ----------------------------------------------------------- Buenos Aires' Court No. 15 approved a motion for "Concurso Preventivo" filed by local company Don Gumersindo S.A. relates Infobae. The Company is proceeding with its reorganization process. The court, which is assisted by the city's Clerk No. 30, appointed Ms. Mabel Lopez as receiver for the process. Creditors must submit their claims to the receiver for verification before October 10 this year. Infobae adds that the individual reports, which are to be prepared after the credit verification process, are due for filing on November 25. The court expects the receiver to hand in the general reports by Februaruy 9 next year. The informative assembly will be on Jule 8, 2004. CONTACT: Don Gumersindo S.A. Lavalle 1125 Buenos Aires Mabel Lopez Ave. Cordoba 817 Buenos Aires EDMOND: Enters Bankruptcy ------------------------- The Civil and Commercial Tribuna of Venado Tuerto in Santa Fe announced that Edmond S.A. is "Quiebra Decretada". The Company will undergo the bankruptcy process, which will end in the liquidation of its assets. Argentine news portal Infobae reports that Court No. 2 of Venado Tuerto has jurisdiction over the Company's bankruptcy. The court assigned Mr. Juan Arnaldo Venturini, a local accountant, as receiver for the process. Mr. Venturini is given the task of verifying credit claims, and preparing the necessary reports. CONTACT: Edmond S.A. Roque Saenz Pena 811 Buenos Aires EMERGENCIAS SEMCA: "Concurso Preventivo" Motion Approved -------------------------------------------------------- Emergencias Semca S.R.L., which is based in Zarate, has received permission to start its reorganization process after the province's Court No. 1 approved its motion for "Concurso Preventivo". Infobae relates that the Civil and Commercial Tribunal of Zarate has jurisdiction over the Company. However, the report did not mention whether the court has assigned a receiver to the case. EQUIMAX: Court Orders Liquidation --------------------------------- Assets of Buenos Aires-based Equimax S.R.L. will be liquidated following the Company's entry into bankruptcy. Infobae reports that the city's Court No. 22 declared the Company "Quiebra Decretada" recently. Assisted by Clerk No. 44, the court assigned Mr. Federico Albert Mansbach as receiver, to whom creditors must submit their claims for verification. The credit verification process will end on September 29 this year. The report adds that the court expects the receiver to file the individual reports on November 10, followed by the general report on December 23. However, the Infobae did not indicate whether the court has set the date for an informative assembly. CONTACT: Federico Alberto Mansbach Tucuman 1506 Buenos Aires FARGO: Bimbo Likely To Increase Stake ------------------------------------- After acquiring a minority interest in Argentina's major bakery company, Fargo, Mexican Grupo Bimbo seems to be paving the way to increase its interest in the Argentine firm. It is rumored that Bimbo would increase its stake in Fargo to a majority ownership in less than six months. In this case, the new group would hold a 76% share in the local packaged bread market. The local antitrust bureau, CNDC, is currently evaluating the acquisition. On July 23, Bimbo informed the CNDC of the operation, as declared by Fargo in an explanatory letter sent to the Buenos Aires Stock Exchange early this week. Bimbo sent a letter to the CNDC saying it had acquired 30% of Pierre Acquisition LLC, 100% owner of Fargo Holding Gibraltar, which controls Compania de Alimentos Fargo. In the letter, the Mexican group also asked for CNDCs approval in case it decided, in the future and under certain circumstances, to purchase a controlling stake in Fargo. The latter said the letter sent by Bimbo to the CNDC was only made for informative purposes and to obtain the approval subject to a series of additional conditions. Mexican executives Chico Pardo and Gabino Gomez Carbajal, Fargo's new president and vice-president, point their priority is to restructure the liabilities of the firm, which amount to US$125 million. FARMACIAS 5000: Bankruptcy Proceeds With Credit Verification ------------------------------------------------------------ Creditors of Buenos Aires-based company Farmacias 2005 S.A. are required to present their proofs of claim to the receiver, Mr. Jose Adres Sabuqui, for verification. The credit authentication process concerning the Company's bankruptcy ends on September 25 this year. The city's Court No. 5, which handles the Company's case, requires the receiver to file the individual reports by November 6, followed by the general report on December 19, according to Infobae. CONTACT: Jose Andres Sabuqui Bernardo de Irigoyen 330 Buenos Aires FASIL: Receiver Verifies Claims For Bankruptcy ---------------------------------------------- Mr. Jorge Berisso, the court-designated receiver of Buenos Aires- based Fasil Materiales Electricos S.R.L., is verifying creditor's claims until October 21 this year. Following that period, the receiver will prepare the required individual reports. According to Infobae, the city's Court No. 7 and Clerk No. 13 handles the Company's case. The report did not mention whether the court has set the deadline for the filing of the individual and general reports. CONTACT: Fasil Materiales Electricos S.R.L. Ave. Cordoba 2318 Buenos Aires Jorge Berisso Paraguay 866 Buenos Aires ICES: Last Day For Credit Verification Today -------------------------------------------- Luis Ernesto Hilman, the receiver for Instrituto de la Construccion para entidades de Economia Social A.C. will end the credit verification process today, August 15. The Company is currently undergoing the bankruptcy process. The completion of the credit authentication process signals means that the receiver will now prepare the individual reports, which are to be submitted to the court on September 26. The general report is due for filing on November CONTACT: Luis Ernesto Hilman Viamonte 1446 Buenos Aires LIBERIUS: Court Calls Creditors to Formal Meeting ------------------------------------------------- Court No. 26 of Buenos Aires calls creditors of Liberius S.A. to a formal meeting, relates a local source, without indicating the intended time and date. The Troubled Company Reporter - Latin America earlier said that the Company received court approval to start its reorganization. The credit verification process will end on October 3 this year. The receiver, Mr. Carlos Rapetti, will prepare the individual reports after the verification process is completed. CONTACT: Liberius S.A. 16th Floor Uruguay St. 615 Buenos Aires Carlos rapetti 7th Floor Echevarria St. 2670 Buenos Aires Phone: 47865359 MANTRA: Creditor Requests Bankruptcy ------------------------------------- A request filed by Marsans Internacional Argentina triggered the bankruptcy of Mantra S.A., according to a local source. Dr. Villanueva, the insolvency judge of Court No. 23 of Buenos Aires approved Marsans' petition to declare the Company bankrupt. The designated receiver for the process is Ms. Liliana Castineira. Creditors must hand in the proofs of claim before August 19, when the verification process ends. The receiver will prepare the individual reports after the authentication process is completed. CONTACT: Mantra S.A. 8th Floor San Martin 663 Buenos Aires Liliana Castineira 1st Floor No. 983 Tucuman St. Buenos Aires MAPIVAL: Creditor's Petition For Bankruptcy Approved by Court ------------------------------------------------------------- Court No. 8 of Buenos Aires, which is under Dr. Gonzales, grants a petition for bankruptcy Cofibal Compa�a Financiera S.A. is filed against Mapival S.C.A., reports a local source. Dr. Lezaeta, the city's Clerk No. 15 assists the Court on the case. The credit verification process has started. Claims for verification must be submitted to the receiver, Mr. Felipe Florio before November 4 this year. CONTACT: Mapival S.C.A. 2nd Floor Ave. Belgrano 634 Buenos Aires MARCELO LUGONES: "Concurso Preventivo" Motion Gets Court OK ----------------------------------------------------------- The "Concurso Preventivo" motion filed by Marcelo Lugones S.A. was approved by Court No. 17 of Buenos Aires, reports local news source Infobae. This means that the Company has received the go signal for reorganization. Mr. Gustavo Manay, a local accountant, is the appointed receiver for the process. He will verify creditors' claims until September 1 this year. After that, he will prepare the individual reports, which the court requires by October 20. The general report will be due for submission on December 1. The report adds that the informative assembly will be on May 12 next year. CONTACT: Gustavo Manay Montevideo 666 Buenos Aires MICROCURROGADO GUARDIANI: Unpaid Debt Triggers Bankruptcy --------------------------------------------------------- Microcurrogado Guardiani S.R.L.'s failure to meet its obligation on some ARS46,132 it owes to Klabin Argentina S.A. resulted in its bankruptcy. Recently, the Troubled Company Reporter - Latin America relates that Buenos Aires Court No. 15 declared the Company bankrupt. Dr. Norma Di Noto, the insolvency judge handling the case assigned Mr. Luis Abranzon as the Company's receiver. He is tasked with the verification of credit claims and the preparation of the required reports. Creditors must submit their claims before October 9. CONTACT: Microcorrugado Guardiani S.R.L. 2nd Floor Tucuman 834 Buenos Aires Luis Abranzon Pringles 835 Buenos Aires MILAN MOBILI: Court Announces Bankruptcy on Creditor Request ------------------------------------------------------------ Court No. 4 of Buenos Aires, which is under Dr. Ottolenghi, rules that local company Milan Mobili S.R.L. be placed under bankruptcy, reports La Nacion. The decision comes after Cuyo Placas S.A., to whom the furniture company owes some US$37,924, sought the Company's bankruptcy. The bankruptcy proceeds with the credit verification process, which ends on September 12. Proofs of credit must be submitted to the designated receiver, Nestor Monti, for verification. CONTACT: Milan Mobili S.R.L. Timoteo Gordillo 4079 Buenos Aires MTM: Creditors Called To Formal Meeting --------------------------------------- Creditors of MTM S.R.L. are requested to attend a meeting concerning the Company's reorganization, according to a local source. The Company, which stopped making debt payments in November last year, has filed a motion for "Concurso Preventivo", which was approved by the Court. Dr. Fernandez, the insolvency judge of Court No. 19 handles the Company's case. The city's Clerk No. 37, Dr. Mazzoni, assists the court on the case. CONTACT: MTM S.R.L. 3rd Floor, Room 303/304 Parana St. No. 567 Buenos Aires NEW MILENIUM: Court Assigns Receiver ------------------------------------ Court No. 4 of Buenos Aires assigns Mr. Ernesto Iob as receiver for the reorganization proceedings concerning local company New Milenium S.R.L., reports Infobae. Creditors have until September 23 to present their claims for verification, the report adds. Dr. Ottolenghi, insolvency judge of the said court approved the Company's motion for "Concurso Preventivo". Local newspaper El Cronista earlier said that the Company stopped making debt payments since July last year, prompting it to file the motion. Dr. Juarez, the city's Clerk No. 7 assists the court on the case. CONTACT: New Milenium Olaguer y Feliu 3470 Buenos Aires Ernesto Iob Presidente Peron 1186 Buenos Aires PALMARES DEL PILAR: Court Declares Bankruptcy On Creditor Request ----------------------------------------------------------------- Palmares del Pilar S.A., which is domiciled in Buenos Aires, was declared bankrupt by the city's Court No. 2 granting a request filed by the Company's creditor, Eduardo Martin. A local source reveals that the Company owes some $4698 to Mr. Martin. The receiver assigned for this case is Ms. Liliana Oliveros Peralta. Creditors must present their claims to Miss Peralta before the credit verification process ends on September 24. After that, the receiver will prepare the individual reports. CONTACT: Palmares del Pilar S.A. 2nd Floor Arce 957 Buenos Aires Liliana Oliveros Peralta 6th Floor Uruguay 560 Buenos Aires PUBLIMAT: Seeks Court's Nod For Reorganization ---------------------------------------------- Publimat S.A. is seeking court approval to undergo reorganization. A report from Argentine news source Infobae indicates that the Company has submitted a motion for "Concurso Preventivo" to Court No. 20 of Buenos Aires. If the motion is approved, the court will assign a receiver to take charge of the reorganization. Creditors will be required to submit their proofs of claim for verification in order to establish the existence, nature and amount of debt. CONTACT: Publimat S.A. Presidente J.D. Peron 1515 Buenos Aires SANTA ISABEL: Suppliers To Take Legal Action Against New Owner -------------------------------------------------------------- Through a letter addressed to all the suppliers holding contracts with supermarket chain Santa Isabel, Chilean retail holding Cencosud said it had to ask them for a financial contribution equal to 5% of the amount of the goods delivered to Santa Isabel between July 1st, 2002 and June 30, 2003. The letter also states that all the invoices related to goods received up to July 31, 2003, whether expired or valid, would be paid in 70%, withholding the other 30% as a contribution, the new owners of Santa Isabel said. Suppliers are now planning to take action against the Company through their correspondent unions. They pointed out this is a big mistake and shows an abuse of purchase power, taking into account that after the acquisition of Santa Isabel from Royal Ahold, Cencosud holds a 20% share in the supermarket business, with 83 outlets throughout Chile. SCP: Reports $195.33M Loss in the 1H03 -------------------------------------- Argentine holding Sociedad Comercial del Plata (SCP) reported a loss of ARS568.4 million (US$ 195.33 million) during the first six months of 2003. In the same term of 2002, the Company posted a ARS50.01-million (US$ 18.9 million) profit. CONTACT: Sociedad Comercial del Plata SA 3/F 1056 Reconquista Buenos Aires, Capital Federal Argentina Phone: +54 11 4311 6854 Contact: Dr. Santiago T. Soldati, Chairman Dr. Matias M Brea, Vice Chairman SEG MEDICAL: Credit Verification Process Ends Today --------------------------------------------------- Today, August 15, 2003, is the last day for the credit verification period of the reorganization of Seg Medical AG. The receiver, Estudio Carreiro, Harvey & Asociados will then proceed with the preparations for the individual reports. An earlier report from the Troubled Company Reporter - Latin America indicates that the Company is under the jurisdiction of Court No. 23 of Buenos Aires. An informative assembly will be held on May 14 next year. CONTACT: Seg Medical A.G. Ground Floor 'F' Scalbrini Ortiz Ave. No. 2894 Buenos Aires Estudio Carreiro, Harvey & Asociados Ground Floor '6' Tte. Gral. J.D. Peron 1143 Buenos Aires SERVICE SUR: Declared Bankrupt Upon Creditor Request ---------------------------------------------------- Lloyd's TSBS Bank Plc's request for the bankruptcy of Service Sur S.A. was granted by Court No. 24 of Buenos Aires. Dr. Ballerini, the insolvency judge handling the case is assisted by Dr. Medina, the city's Clerk No. 47. Creditors have until October 6 to submit their claims for verification. The designated receiver, which verifies the proofs of claim, is local accountant Roque Alberto Pepe. CONTACT: Service Sur S.A. Ave. Callao 420 Buenos Aires Roque Alberto Pepe Ave. Argentina 5785 Buenos Aires SUPERMERCADOS ARAGONE: Court Declares Bankruptcy ------------------------------------------------ Supermercados Aragone S.A. is declared bankrupt by Court No. 22 of Buenos Aires, relates local news portal Infobae. The city's Clerk No. 44 assists the court on the case, the report adds. The bankruptcy proceeds with the credit verification process, which ends on October 6 this year. Creditors must submit their proofs of claims to the receiver, Sereni Paz Napolitano y Asociados. The individual reports, which are to be prepared after the credit verification, are due for submission on November 17 this year. The general report, on the other hand, must be submitted by February 3 next year. CONTACT: Sereni Paz Napolitano y Asociados Lavalle 2024 Buenos Aires SYSTEM ALUMINIUM: Reorganization Process Starts ----------------------------------------------- System Aluminium S.A. was placed in the hands of Ms. Mabel Alba Nieves Herrera, the court-appointed receiver for the Company's reorganization. Argentine news source Infobae indicates that Buenos Aires Court No. 19 recently approved the Company's motion for "Concurso Preventivo". The receiver will verify creditors' claims until September 23 this year. The report adds that the individual reports must be filed by November 4, followed by the general report on December 17. The Company's creditors are invited to an informative assembly on June 24 next year. CONTACT: Mabel Alba Nieves Herrera Rodriguez Pena 694 Buenos Aires TELEFONICA DE ARGENTINA/COINTEL: Fitch Downgrades Ratings to 'DD' ----------------------------------------------------------------- Fitch Ratings has downgraded the foreign and local currency senior unsecured ratings of Telefonica de Argentina S.A.'s (TASA) and its holding company Compania Internacional de Telecomunicaciones S.A. (Cointel) to 'DD' from 'C'. The rating actions apply to approximately US$954 million in outstanding securities. The rating actions reflect the recent completion of the debt exchange offer by TASA and Cointel. Fitch viewed the debt exchange as distressed under the terms of the offering. As a distressed debt exchange, the existing TASA and Cointel notes included in the offer are considered in default under Fitch's rating methodology upon completion of the exchange. No ratings have been assigned to the newly issued TASA notes. Under the debt exchange, TASA sought to refinance US$300 million senior notes due 2004 and US$368.5 million senior notes due 2008. Holders of US$219 million of senior notes due 2004 participated in the debt exchange and have received either 85% of the original principal amount in newly issued notes due 2007 plus a 15% cash payment, or 92.5% of the original principal amount in newly issued notes due 2007 plus a 7.5% cash payment, depending on the tender date. Holders of US$243 million of senior notes due 2008 participated in the debt exchange and have received either 90% of the original principal amount in newly issued notes due 2010 plus a 10% cash payment, or 95% of the original principal amount in newly issued notes due 2010 plus a 5% cash payment, depending on the tender date. In each case, the newly issued notes have the same coupon as the exchanged notes. The debt exchange offer also included the proposal to exchange Cointel's US$225 million 8.85% series A notes due 2004 and Ps175 million 10.375% series B notes due 2004 (equivalent to approximately US$60 million). Holders of US$164 million of Cointel series A notes due 2004 and Ps31 million of Cointel series B notes due 2004 (equivalent to approximately US$11 million) participated in the debt exchange and have received either 85% of the original principal amount in newly issued TASA 8.85% notes due 2011 plus a 15% cash payment, or 92.5% of the original principal amount in newly issued TASA 8.85% notes due 2011 plus a 7.5% cash payment, depending on the tender date. The successful completion of the debt exchange is positive for TASA as it has lengthened debt maturities and for Cointel as it has reduced the amount of notes held by third parties maturing during 2004. However, TASA and Cointel still face significant debt maturities over the next year. TASA faces the maturity of approximately US$81 million in outstanding senior notes due 2004 while Cointel faces the maturity of US$225 million series A notes due 2004 and Ps175 million series B notes due 2004. After the debt exchange, a large portion of the Cointel notes are held by indirect parent company, Telefonica Internacional. The remaining portion of the notes, approximately US$110 million in outstanding 8.875% series A notes due 2004 and 10.375% series B notes due 2004, continue to be held by third party noteholders. After the debt exchange, the net debt levels of each TASA and Cointel remain relatively stable. TASA's bond obligations have increased as Cointel noteholders participating in the exchange have received newly issued TASA notes. However, TASA's overall net debt levels remain largely unchanged as TASA is transferring the acquired Cointel notes to its indirect parent company, Telefonica Internacional, in exchange for a like reduction in intercompany loans. Cointel's bond obligations remain unchanged; however, the exchanged Cointel notes will be held by Telefonica Internacional instead of third party noteholders. TASA did not include its US$71 million 9.875% senior notes due 2006 in the debt exchange offer; these notes were exchanged during 2002. The rating of these notes remains unchanged at 'CC' Rating Watch Negative. Cointel's direct parent company Telefonica Holding de Argentina S.A. (Telefonica Holding) did not participate in the debt exchange offering as it only has an estimated US$7 million in outstanding public notes; the majority of its debt is comprised of intercompany loans. The foreign and local currency senior unsecured ratings of Telefonica Holding remain unchanged at 'CC' Rating Watch Negative. TASA's limited financial flexibility and weakened credit profile are a result of the economic crisis affecting Argentina. TASA's profitability has been significantly affected by the various emergency measures implemented following the sovereign's default in early 2002, including devaluation 'pesofication' of tariffs, and prohibition of tariff adjustments. These measures have dramatically affected the financial condition of TASA due to the imbalance between the company's peso revenues and its debt, which is largely dollar denominated. TASA is an operating company that provides local-exchange, long- distance, residential Internet access and directory publishing services in Argentina. Telefonica S.A. of Spain controls either directly or indirectly 98% of TASA. Cointel is a holding company whose primary asset is a 64.8% equity stake in TASA. Telefonica Holding is a holding company whose primary asset is a 50% equity stake in Cointel. CONTACT: Fitch Ratings Guido Chamorro Chicago Phone: +1-312-368-5473 Paola Briano Buenos Aires Phone: +011 541 14 327-2444 James Jockle, Media Relations New York Phone: +1-212-908-0547 ============= B E R M U D A ============= LORAL SPACE: Appoints BSI as Court Claims and Noticing Agent ------------------------------------------------------------ Loral Space & Communications Ltd., and its debtor-affiliates sought and obtained approval from the U.S. Bankruptcy Court for the Southern District of New York to appoint Bankruptcy Services, LLC as claims and noticing agent in their chapter 11 proceedings. BSI has agreed to: a. notify all potential creditors of the filing of the chapter 11 petitions and of the setting of the first meeting of creditors pursuant to section 341(a) of the Bankruptcy Code; b. maintain an official copy of the Debtors' schedules of assets and liabilities and statements of financial affairs, listing the Debtors' known creditors and the amounts owed thereto; c. furnish a form for the filing of proofs of claim, after approval of such notice and form by this Court; d. file with the Clerk, within 10 days of service, a copy of the proof of claim notice, a list of persons to whom it was mailed (in alphabetical order), and the date the notice was mailed; e. docket all claims received, maintaining the official claims registers for each Debtor on behalf of the Clerk, and providing the Clerk with certified duplicate unofficial Claims Registers on a monthly basis, unless otherwise directed; f. specify in the applicable Claims Register the following information for each claim docketed: (i) the claim number assigned, (ii) the date received, (iii) the name and address of the claimant and agent, if applicable, who filed the claim, and (iv) the classification of the claim; g. relocate, by messenger, all of the actual proofs of claim filed with the Court, if necessary to BSI, not less than weekly; h. record all transfers of claims and providing any notices of such transfers required by Rule 3001 of the Federal Rules of Bankruptcy Procedure; i. make changes in the Claims Registers pursuant to Court Order; j. upon completion of the docketing process for all claims received by the Clerk's office, turn over to the Clerk copies of the Claims Registers for the Clerk's review; k. maintain the official mailing list for each Debtor of all entities that have filed a proof of claim, which list shall be available upon request by a party in interest or the Clerk; l. assist with, among other things, the solicitation and the calculation of votes and the distribution as required in furtherance of confirmation of plan(s) of reorganization; and m. 30 days prior to the close of these cases, submit an Order dismissing BSI and terminating the services of BSI upon completion of its duties and responsibilities and upon the closing of these cases. BSI's professional fees are: Kathy Gerber $210 per hour Senior Consultants $185 per hour Programmer $130 to $160 per hour Associate $135 per hour Data Entry/Clerical $40 to $60 per hour Schedules Preparation $225 per hour Loral Space & Communications Ltd., headquartered in New York, New York, and together with its affiliates, is one of the world's leading satellite communications companies with substantial activities in satellite-based communications services and satellite manufacturing. The Company filed for chapter 11 protection on July 15, 2003 (Bankr. S.D.N.Y. Case No. 03-41710). Stephen Karotkin, Esq., and Lori R. Fife, Esq., at Weil, Gotshal & Manges LLP represent the Debtors in their restructuring efforts. When the Debtors filed for protection from its creditors, it listed $2,654,000,000 in total assets and $3,061,000,000 in total debts. (Troubled Company Reporter - Wednesday, Aug. 13, 2003, Vol. 7, Issue 159) TYCO: Ex-Auditor Permanently Barred from Practicing Before SEC -------------------------------------------------------------- SEC Finds PricewaterhouseCoopers Engagement Partner Recklessly Issued Fraudulent Audit Report and Engaged in Improper Professional Conduct The Securities and Exchange Commission issued Wednesday an Order instituting settled cease-and-desist proceedings and proceedings pursuant to Rule 102(e) of the Commission's Rules of Practice against Richard P. Scalzo, CPA, the PricewaterhouseCoopers LLP (PwC) engagement partner for that firm's audits of the financial statements of Tyco International Ltd. (Tyco) for Tyco's fiscal years 1997 through 2001. The Commission's Order finds that Scalzo recklessly violated the antifraud provisions of the federal securities laws and engaged in improper professional conduct. Simultaneous with the institution of the administrative proceedings, and without admitting or denying the findings contained therein, Scalzo consented to the issuance of the Commission Order, which orders him to cease and desist from violations of the antifraud provisions and permanently bars him from appearing or practicing before the Commission as an accountant. The Commission's Order finds that multiple and repeated facts provided notice to Scalzo regarding the integrity of Tyco's senior management and that Scalzo was reckless in not taking appropriate audit steps in the face of this information. By the end of the Tyco annual audit for its fiscal year ended Sept. 30, 1998, if not before, those facts were sufficient to obligate Scalzo, pursuant to generally accepted auditing standards (GAAS), to reevaluate the risk assessment of the Tyco audits and to perform additional audit procedures, including further audit testing of certain items (most notably, certain executive benefits, executive compensation, and related party transactions). Scalzo did not take sufficient steps in these regards. Accordingly, Scalzo recklessly failed to conduct the audits in accordance with GAAS. The Order, therefore, finds that Scalzo engaged in improper professional conduct. The Commission denies him the privilege of practicing before the Commission as an accountant. In addition, for each of the Tyco fiscal years from its fiscal year ended Sept. 30, 1998, through its fiscal year ended Sept. 30, 2001, PwC issued an audit report stating that PwC had conducted an audit of Tyco's financial statements "in accordance with auditing standards generally accepted in the United States of America." As the engagement partner for the PwC team auditing Tyco's financial statements, Scalzo was responsible for those statements, and, at the time those statements were made, Scalzo was reckless in not knowing that the Tyco audits had not been conducted in accordance with GAAS. Accordingly, the Commission found that Scalzo recklessly violated the antifraud provisions of the federal securities laws and ordered Scalzo to cease and desist from violations of those provisions. "Investors rely on auditors and are betrayed when auditors fail to conduct diligent audits," according to Thomas C. Newkirk, Associate Director of Enforcement at the Securities and Exchange Commission. "In this case, senior management was looting the company, and Scalzo was confronted with numerous warning signs about management's integrity. Scalzo is not being sanctioned because he did not discover the looting; he is being charged because he did not look despite these warnings." The Commission's investigation is continuing. The Commission acknowledges the assistance and cooperation of the Manhattan District Attorney and the New York City Police Department. CONTACT: Securities & Exchange Commission Thomas C. Newkirk, Associate Director, Phone: (202) 942-4550 James T. Coffman, Assistant Director Phone: (202) 942-4574 =========== B R A Z I L =========== CEMAR: Govt. To Embark on Another Attempt at Sale ------------------------------------------------- Brazil's power regulator Aneel will lodge another attempt to sell Maranhao state distributor Cemar, reports Business News Americas. This, after the recent third attempt failed after the only bidder, Brazil's GP Investimentos, failed to strike an agreement with creditors. Brazil's mines and energy minister Dilma Rousseff, which unveiled the terms of the next attempt to sell the Company on Tuesday evening, advised Cemar's creditors to accept a solution for Cemar's BRL800 million of debts. Otherwise, the entire debt will have to be written off and Cemar's concession will be canceled because the federal government has no intention of taking on the debt, he warned. For this next attempt, the government plans to make creditors - principally private banks and holders of debentures - to agree beforehand what their terms would be, and give them the option of converting debts into Cemar equity, Rousseff said. The government has decided to allow federal power sector holding Eletrobras to convert part of its debt into equity, as a demonstration of the government's confidence in the distributor, Rousseff said. CEMIG: Analyzing Infovias' Future --------------------------------- The future of Brazilian telecom company Infovias is now being analyzed by its parent, Minas Gerais state power company Cemig, reports Business News Americas. Cemig investor relations manager Luiz Fernando Rolla indicated an outright sale of the unit, though the process is seen implausible at the moment because the weak state of the telecom industry means Cemig would be unlikely to get a good price for it. Another alternative is to bring in operators or other strategic investors, Rolla said, adding that these alternatives will be presented to the board of directors for a final decision. In May, Cemig paid US$32 million to buy the 52% stake in Infovias owned by US-based AES. The unit posted an operating loss of BRL13 million for the second quarter of 2003, but Cemig expects to bring it to operating break-even by year-end and henceforth the Company would be self-sufficient, Rolla said. CONTACT: COMPANHIA ENERGETICA DE MINAS GERAIS Luiz Fernando Rolla, Investor Relations Phone: + 011-5531-299-3930 Fax: + 011-5531-299-3933 E-mail: lrolla@cemig.com.br CEMIG: Seeks To Roll Over Debt; To Select Bank To Aid In Process ---------------------------------------------------------------- Cemig is due to send out letters of invitation soon to banks as part of a process to select a firm that would help it roll over up to BRL373 million (today US$125mn) of debts due by year-end, Business News Americas indicates. Subsequently, interested banks must then submit their proposals for rolling over the debt. According to Cemig investor relations manager Luiz Fernando Rolla, the bank, which submits a proposal with the lowest price and most cost-effective structure, will be chosen as a winner. Cemig is looking to roll over debts currently totaling BRL3.1 billion, extend the terms and convert them into reais, Rolla said. About US$100 million of the debt due by year-end is in US dollars, while BRL74.9 million is in the local currency, he said. CFLCL: Reduces Net Losses in the 2Q03 ------------------------------------- Brazilian power distribution holding Companhia Forca e Luz Cataguazes Leopoldina (CFLCL) reduced net losses in the second quarter of 2003. According to Business News Americas, the Company said it recorded a consolidated net loss of BRL9 million for the period, compared to a net loss of nearly BRL40 million for the same year-ago quarter. Net revenues for the second quarter of the year were up 65%, to BRL234 million from BRL142 million in the same quarter of last year, while operating profit was BRL2 million, compared to an operating loss of BRL30 million in the same period of 2002. CFLCL provides services to areas, including Minas Gerais, Rio de Janeiro, Sergipe, and Paraiba, through its power generation and transmission companies. =============== C O L O M B I A =============== ELECTROLIMA: Regulator Dissolves Utility ---------------------------------------- Colombia's public services regulator Superservicios dissolved Tolima department's power utility Electrolima on Tuesday, reports Business News Americas. According to the regulator, the utility has been insolvent since January 2002 and did not have the capacity to pay its debts or make the necessary investments to guarantee service in the area. Electrolima was owed COP38.6 billion (today some US$13.5mn) in overdue bills, of which 57% corresponds to the residential sector and 51% are more than a year late, the report says, adding that the Company also had third party debt of COP144 billion (US$50.3mn). The utility's collective labor agreement meant that the company was paying its workers 15% more than the national average, and was paying high pension costs. In addition, Electrolima signed a contract with the Sociedad Energ,tica de Melgar (SEM) to build the Flandes-Melgar transmission line and the Lanceros substation, but the cost of the project ballooned to US$27 million from US$8.5 million, and Electrolima could not pay because of its critical cash-flow situation. Due to these reasons, the government decided it could no longer guarantee the Company's debts. Meanwhile, government news service CNE reports that Superservicios has created a new power department for Tolima to replace Electrolima. The new utility is called Compania Energetica del Tolima (Enertolima). ============= J A M A I C A ============= TCRL: Owner Moves To Protect Creditors -------------------------------------- Edward Seaga, Jamaica's main opposition leader, revealed he has placed his firm, Premium Investments Limited (PIL), into liquidation in order to pay off nearly $150 million in General Consumption Tax (GCT) and penalties owed by another of his companies, Town and Country Resorts Ltd (TCRL), which operated his Enchanted Garden Hotel. "I took this unusual decision of placing Premium Investments Ltd, a financially solvent company, into liquidation because it is the surest way to protect the interests of the creditors and allow for the future development of The Enchanted Garden as a prime resort," Seaga said. Seaga's decision came after the Judicial Committee of the United Kingdom Privy Council upheld a ruling that PIL and TCRL owe the Jamaican government $12.3 million in GCT collected by the Ocho Rios hotel, but not remitted, plus another $27.3 million in penalties and interest. The Privy Council also ordered Seaga's companies to pay for the cost of the appeal, but did not specify an amount. On Tuesday, Seaga said that Premium, which owns The Enchanted Garden, has substantial assets. "Its estimated surplus after payment of its debts in full is in excess of $200 million," he said in his statement. He said he had handed over control of Premium and Town and Country to a liquidator who would now be responsible for disposing of Premium's assets "in an effort to service the debts of TCRL and its creditors". Seaga did not name the liquidator, but on Tuesday, one of his lawyers, Chris Bovell, identified the liquidator as Douglas Chambers, a chartered accountant, the report relates. =========== M E X I C O =========== GRUPO ELEKTRA: S&P Affirms Ratings; View Stable ----------------------------------------------- Standard & Poor's Ratings Services affirmed Wednesday its `B+' corporate credit and senior unsecured ratings on Mexico-based Grupo Elektra S.A. de C.V. (Elektra). The outlook is stable. The ratings are based on Elektra's aggressive financial profile, the risks imposed by the highly competitive retail sector, and the reduced revenue base that the retail division will generate to service its current debt obligations due to the transfer of credit operations to the recently created Banco Azteca. The ratings also acknowledge some linkage between the ratings of Grupo Elektra and TV Azteca S.A. de C.V. (B+/Stable/-), based on the common controlling ownership by the Salinas family. "That notwithstanding, Standard & Poor's expects Elektra to continue reducing its current debt levels while financing planned capital expenditures mainly through internally generated funds," said credit analyst Federico Mora. The ratings also consider Elektra's solid business position. The recent start-up of the banking operation Banco Azteca, which is wholly owned by Grupo Elektra, is considered a neutral factor overall for the rating, considering the benefits for the group derived from a lower cost of funding for the credit operations, as well as the potential new businesses that are expected to continue improving the flow of clients into the company's stores. Standard & Poor's expects that Elektra's geographic and business diversification should enable it to reinforce its market position and generate sufficient funds to improve its long-term financial risk. The ratings could be pressured by a deterioration of the company's financial ratios and margins, by additional equity infusions to Banco Azteca, and by loans or contingencies to related entities that could endanger Elektra's liquidity. GRUPO TMM: FIC To Decide on NAFTA Rail by August 28 --------------------------------------------------- Kansas City Southern (KCS) (NYSE: KSU) and Grupo TMM, S.A. (NYSE: TMM and BMV: TMM A; TMM) have announced that Mexico's Foreign Investment Commission (FIC) will rule on the proposed transaction that would place TFM, S.A., de C.V. (TFM) under common control of NAFTA Rail on or before August 28, 2003. The approval of the FIC is necessary for a foreign company to become a majority owner of a Mexican-based company. The revised date is an extension of the previously announced decision date of August 12 and was granted upon written request from the FIC in order that the FIC commissioners would have adequate time to review the proposal. Mexico's Competition Commission has already approved the proposed transaction. The FIC is the last Mexican regulatory entity that must approve the transaction that would change the majority ownership to NAFTA Rail. KCS is a transportation holding company that has railroad investments in the United States, Mexico, and Panama. Its primary holding is The Kansas City Southern Railway Company. Headquartered in Kansas City, Missouri, KCS serves customers in the central and south central regions of the U.S. KCS's rail holdings and investments are primary components of a NAFTA Railway system that links the commercial and industrial centers of the United States, Canada and Mexico. Headquartered in Mexico City, Grupo TMM is the premier Mexican multimodal transportation company and logistics provider. Through its branch offices and network of subsidiary companies, Grupo TMM provides a dynamic combination of ocean and land transportation services within Mexico. Grupo TMM also has the controlling interest in TFM, which operates Mexico's Northeast Rail Lines and carries over 40 percent of the country's rail cargo. CONTACT: Grupo TMM Company Jacinto Marina Phone: 011-525-55-629-8790 Email: jacinto.marina@tmm.com.mx Kansas City Southern William H. Galligan Phone: 816-983-1551 Email: william.h.galligan@kcsr.com Investor Relations: Brad Skinner Phone: 011-525-55-629-8725 Email: brad.skinner@tmm.com.mx General Investors, Analysts and Media: Dresner Corporate Services Kristine Walczak Phone: 312-726-3600 Email: kwalczak@dresnerco.com SATMEX: Sues Boeing For Satellite I Glitch ------------------------------------------ Satelites Mexicanos (Satmex), controlled by Loral Space & Communications Ltd., sued Boeing Satellite Systems International for the failure of its Solidaridad Uno satellite, confirmed Arturo Gonz lez, Satmex vice president of Operations and Corporate Communications. According to a report by local daily Reforma, the suit, which was filed in a Mexican district court in late June, seeks undisclosed compensation from Boeing, as the Solidaridad Uno satellite was expected to operate until 2007. The original contract was signed with Hughes Communications International, which was acquired by Boeing from General Motors Corp. (GM) for US$3.8 billion in early 2000. ============= U R U G U A Y ============= * URUGUAY: Issues Government's Letter of Intent to the IMF ---------------------------------------------------------- Montevideo, Uruguay June 27, 2003 Mr. Horst K"hler Managing Director International Monetary Fund Washington, D.C. 20431 U.S.A. Dear Mr. K"hler 1. Following the successful completion of Uruguay's comprehensive and voluntary debt exchange, the government of Uruguay intends to continue implementing policies aimed at fostering the resumption of growth. To that effect, the government is committed to achieving a primary fiscal surplus of 3.2 percent of GDP in 2003, excluding the one-off expenses paid on account of the debt exchange. The fiscal effort is supported by expenditure restraint and the continued implementation of structural reforms. These measures are described in the attached Supplement to the Memorandum of Economic and Financial Policies. 2. In support of these efforts, the Government of Uruguay requests: (i) completion of the third review under the Stand-by Arrangement, allowing a purchase of SDR 145.7 million upon approval by the Fund's Executive Board; (ii) waivers of applicability for the end-June performance criteria on the cumulative primary balance of the combined public sector and the overall nonfinancial public sector debt ceiling, given that the data to monitor these performance criteria will not yet be available at the time of Board consideration of this review; and (iii) modifications of the performance criteria for end-June on the cumulative primary balance of the combined public sector and the overall nonfinancial public sector debt ceiling. 3. We are confident that the policies set out in the attached supplement to the Memorandum of Economic and Financial Policies and the continued support of the international financial institutions will provide the needed stability for the resumption of economic growth. The government stands ready, in consultation with the Fund, to take any additional measures necessary to ensure the success of the program. Sincerely yours, Julio de Brun President Central Bank of Uruguay Alejandro Atchugarry Minister of Economy and Finance Republic of Uruguay ================= V E N E Z U E L A ================= CITGO: Confirms Relocation Plans -------------------------------- Citgo Petroleum Corp. confirmed Wednesday it is considering leaving Tulsa and move its headquarters to Houston as part of strategic changes at its parent firm, Petroleos de Venezuela SA. Citgo's newly appointed President Luis Marin commissioned the corporate study to determine how a relocation would affect the company. The study is expected to be completed by the end of the year. "All we are doing is starting a study. That's it," Citgo spokesman Kent Young said Wednesday. Citgo is owned by PDVSA subsidiary PDV America. PDVSA: To Export 428,000 Gallons Of Reformulated Gasoline To US --------------------------------------------------------------- Venezuela's national oil company Petr�leos de Venezuela (PDVSA) is to ship 528,000 gallons of environment-friendly gasoline to the United States, from its Paraguan Refining Complex (PRC) during August. "The shipment of this refined product sends the international market the clear signal that PDVSA continues to be a secure and reliable energy supplier to the industrialised world", according to Elisa�l Miquilena, CRP's Programming manager, who added that the tanker "Hastings" was currently loading 54,000 gallons for delivery to the U.S. West Coast. Referring to other exports, Miquilena said that the refining complex was daily producing around 940,000 tons of sulphur, and that 100,000 tons of it were being shipped to the United Stated and Colombia during the second half of the year. He added that the tanker "Aurora" had loaded 10,000 tons of liquid sulphur for U.S. and Colombian destinations at the docks of the PRC's Amuay facility. Besides exports, Venezuela's sulphur production, marketed through PDVSA subsidiary Pequiven, meets local industry demand. Regarding asphalt, Elisa�l Miquilena reported that the asphalt plant at the Bajo Grande refinery was back in operation, after a programmed maintenance shutdown. This facility, which also partially covers the western part of the country, is programmed to begin exporting asphaltics to the United States next month. PDVSA: Reports That Operations At El Palito Refinery Are Normal --------------------------------------------------------------- The Eastern Division of Petr�leos de Venezuela is pleased to inform the public that no accidents at all have taken place at the installations of the El Palito refining complex located in the State of Carabobo. According to Alejandro Granado, Refining Director of PDVSA's Eastern Division, programmed maintenance work is currently being undertaken on the Fluidized Catalytic Cracking unit, a job that entails the burning of liquids and products in the refinery's flue-stack system Granado pointed out that the execution of the work in question was duly announced to the communities neighboring the refining complex, and to the public in general, through the State of Carabobo newspapers. He added that: " Planning for this work includes the involvement of the Health, Safety and Environment team in its execution, together with Maintenance and Operations, to ensure that all procedures established for this type of routine job are closely followed". Alejandro Granado called on the population, and particularly that of nearby communities, not to relay ill-intentioned information that seeks to generate unease, uncertainty and fear. The Eastern Division's Refining Director reaffirmed that operations at the El Palito refinery were absolutely normal, and that the personnel working there was perfectly capable and had the expertise required for the running of such an installation. *********** 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 America 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 * * *