/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/030910.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, September 10, 2003, Vol. 4, Issue 179 Headlines A N T I G U A & B A R B U D A LIAT: Integration Plans "Well Advanced," says Chief A R G E N T I N A ACINDAR: US$100M of Bonds Rated 'D(arg)' by Local Fitch CAPEX: Fitch Assigns Default Ratings To Bonds CAPEX: Fitch Rates US$150M of Bonds 'C(arg)' DUVI: Submits "Concurso Preventivo" Motion EDENOR: Fitch Hands Down Default Ratings on Bonds EDITORIAL PERFIL: Fitch Rates Bonds `D(arg)' INDUSTRIAS METALURGICAS: Fitch Moves Bonds to Junk Territory INDUSTRIAS METALURGICAS: Bonds Get Default Ratings From Fitch LOMA NEGRA: Concludes US$400M Debt Restructuring MULTICANAL: Moody's Affirms Caa1 FC Rating, Negative Outlook PINTURERIA PROFESIONAL: Seeks Court Permission To Reorganize TGS: DebtTraders Issues Buy Recommendation TINTEX SACIIF: Court Assigns Bankruptcy Receiver TRANSPORTE TOMEO: Court Orders Bankruptcy TRANSPORTES CONTAINER SERVICE: Files "Concurso Preventivo" * Government Refusing to Repay US$3 Billion IMF Loan B R A Z I L AES: Reaches Restructuring Agreement With BNDES AMBEV: S&P Affirms Ratings; Outlook Stable ARACRUZ CELULOSE: Upgrades Fiberline B Evaporation Unit Controls ARACRUZ CELULOSE: Riocell is New Gua¡ba Unit C H I L E COEUR: Completes Final Notes Conversion and Redemption E C U A D O R ANDINATEL: More Executives Threaten Resignation M E X I C O GRUPO IUSACELL: DebtTraders Issues Distressed Review HYLSAMEX: Expects Good 2H03 Results SAVIA: Seminis Stockholders Approve Merger VITRO: Develops New Wine Bottle Technology V E N E Z U E L A CANTV: Selects iBasis for International Voice Service - - - - - - - - ================================= A N T I G U A & B A R B U D A ================================= LIAT: Integration Plans "Well Advanced," says Chief --------------------------------------------------- Gary Cullen, chief executive of ailing Caribbean airline LIAT said that the carrier's Recapitalization program is gaining momentum. A report from the Antigua Sun quoted the executive as saying the airline's plans for its inclusion in the new single regional carrier, Caribbean International Airways (Holding) Ltd. (CIAH) are "well advanced". Mr. Cullen emphasized that the airline had tried to remain faithful to the integrity of its schedule and service levels despite its financial troubles. However, he admitted that there were occasions when the airline fell short of expectations due to shortage of aircraft. A company press release on Friday said, "Fresh equity is committed by key government shareholders - Antigua & Barbuda, Barbados and St. Vincent & the Grenadines, with the support of Trinidad & Tobago. The timely delivery of this investment will ensure that LIAT has adequate funds to develop its business prior to its incorporation into (CIAH)." "Work is well advanced on the formation of the new airline. It is planned to incorporate LIAT, BWIA and other smaller airlines in the region thereby creating a single regionally owned state of the art airline system for long haul international routes and connections and services throughout the Eastern Caribbean. Senior executives in LIAT and BWIA are working closely with the single airline technical co-ordinator, Ian Bertrand in preparing plans for a January 2004 start up," the statement added. CONTACT: Jennifer Carlson-Linskey Phone: 268 480 5850 Email: linskeyj@liatairline.com ================= A R G E N T I N A ================= ACINDAR: US$100M of Bonds Rated 'D(arg)' by Local Fitch ------------------------------------------------------- Fitch Argentina Calificadora de Riesgo S.A. assigned a 'D(arg)' rating to a total of US$100 million of corporate bonds issued by Acindar Industria Argentina de Aceros. Comision Nacional Valores(CNV), the country's securities regulator, relates that the rating was based on the Company's finances as of the end of June this year. The bonds were described as "Obligaciones Negociables simples, no convertibles en acciones, autorizadas por AGO y E de fecha 5.8.96" due on February 16 next year. The ratings agency said that such rating is given to bonds are assigned to financial obligations that are in default. The Company is involved in the production of non-flat steel products such as steel pipe, cable, hot-rolled and cold-drawn steels for concrete, forged bars and blocks for distributors of steel products, other steel companies, manufacturers of original equipment for several industrial sectors including the automotive and the oil and gas industries and end users, mainly in the construction and agricultural sectors of the economy. Its principal market is Argentina, although it exports its products to Brazil, Chile and the United States, Bolivia and Uruguay through its sales office, said the Financial Times. CONTACT: Acindar Industria Argentina de Aceros SA 2739 Estanislao Zeballos Beccar Buenos Aires Argentina B1643AGY Phone: +54 11 4719 8500 Fax: +54 11 4719 8501 Home Page: http://www.acindar.ar.com Contact: Arturo Tomas Acevedo, Chairman CAPEX: Fitch Assigns Default Ratings To Bonds --------------------------------------------- Comision Nacional Valores, Argentina's securities regulator reveals that a total of US$145 million in corporate bonds issued by Capex S.A. were given default ratings by Fitch Argentina Calificadora de Riesgo S.A. last week. The `D(arg)' rating applies to bonds described as "Obligaciones Negociables Cimples". Some US$40 million of these matures matures on June 11 next year, while the rest come due on December 23, 2004. The bonds were classified as "simple issue", said the CNV. Fitch said that the given rating is assigned to financial commitments, which are currently in default. The Company's main activities are the production and distribution of electric energy, propane, butane and gasoline and exploration and exploitation of petroleum and gas. CONTACT: Capex SA 5/F DepartmentC 948/950 Av Cordoba Buenos Aires Argentina Phone: +54 11 4322 4884 Home Page: http://www.capex.com.ar Contact: Enrique Gotz, Chairman Dr. Alejandro Enrique Gotz, Vice Chairman CAPEX: Fitch Rates US$150M of Bonds 'C(arg)' -------------------------------------------- A total of US$150 million of corporate bonds issued by Capex S.A. garnered a 'C(arg)' rating from Fitch Argentina Calificadora de Riesgo S.A., relates the country's securities regulator Comision Nacional Valores (CNV). Fitch said that the rating, which was given last last week denotes an extremely weak credit risk relative to other issues in Argentina. Capacity for measuring financial commitments is solely reliant upon sustained, favorable business or economic conditions. The rating, which was based on the Company's finances as of the end of April this year, applies to bonds, which the CNV described as "Obligaciones Negociables Cimples". The bonds were classified as "Simple Issue", matures on January 1, 2005. DUVI: Submits "Concurso Preventivo" Motion ------------------------------------------ D.U.V.I. S.A., based in Buenos Aires, is seeking court permission to undergo reorganization. A report from local news portal Infobae indicates that the Company submitted its motion for "Concurso Preventivo" to the city's Court No. 9. Clerk No. 18 assists the court on the case, the report adds. CONTACT: D.U.V.I. S.A. Jose Pedro Varela 3231 Buenos Aires EDENOR: Fitch Hands Down Default Ratings on Bonds ------------------------------------------------- Corporate bonds issued by Argentine company Edenor S.A. received default ratings from the local arm of Fitch Ratings Agency. According to the country's securities regulator, Comision Nacional Valores (CNV), the ratings agency issued a `D(arg)' rating to bonds called "obligaciones negociables". A total of US$600 million worth of bonds, whose maturity date was not revealed, were affected. The rating was issued based on the Company's finances as of the end of June 2003. EDITORIAL PERFIL: Fitch Rates Bonds `D(arg)' -------------------------------------------- Editorial Perfil's corporate bonds called "Primera serie de obligaciones negociables" received default ratings from Fitch Argentina Calificadora de Riesgo S.A., relates the Comision Nacional Valores, the country's securities regulator. The bonds were worth a total of US$25 million, and were classified under "series and/or class". However, their maturity date was not revealed. The ratings agency said that the `D(arg)' rating, which was based on the Company's finances as of the end of June 2003, is given to financial commitments that are in payment default. INDUSTRIAS METALURGICAS: Fitch Moves Bonds to Junk Territory ------------------------------------------------------------ Fitch Argentina Calificadora de Riesgo S.A. assigned junk ratings to US$250 million of corporate bonds issued by Industrias Metalurgicas Pescarmona recently. Argentina's Comision Nacional Valores relates that the rating was based on the Company's finances as of the end of April this year. The affected bonds were described as "Programa de obligaciones negociables" and were classified under "Program". The maturity date, however, was not revealed. Fitch said that `C(arg)' ratings denote an extremely weak credit risk relative to other issues in the country. Capacity for meeting financial commitments is solely reliant upon sustained favorable business or economic conditions. INDUSTRIAS METALURGICAS: Bonds Get Default Ratings From Fitch ------------------------------------------------------------- Industrias Metalurgicas Pescarmona's corporate bonds were rated `D(arg)' by Fitch Argentina Calificadora de Riesgo S.A., relates the country's securities regulator, Comision Nacional Valores. The rating, which was based on the Company's finances as of the end of April 30 this year, applies to US$150 million of bonds called "2¦ Serie emitida por U$S 150 millones del Programa Global de U$S 250 millones". Fitch said that the said rating is given to issues that are currently in default. LOMA NEGRA: Concludes US$400M Debt Restructuring ------------------------------------------------ Argentine cement maker Loma Negra C.I.A.S.A. concluded restructuring of about US$400 million in debt, reports Dow Jones Newswires, citing a statement the Company filed to the Buenos Aires stock exchange. The Company bought back US$120 million in debt at a 32% discount and US$3.4 million at par value, according to the filing. Owners and shareholders provided US$70 million of the funds used to buy back the debt. The Company provided the rest. Its subsidiary, Ferrosur Roca, has also convinced its creditor banks to accept a debt-restructuring offer, said the Loma Negra. About ARS100 million in bonds held by pension funds were exchanged for new 10-year notes worth $39.8 million and paying interests between 5.5% to 10.5%, the Company added. The Company, which defaulted on some US430 million in debt last year, said it had paid off interest rates accrued since its default. Loma Negra is also issuing bonds worth a total of US$226 million, which will be swapped for existing notes. Three new bonds will be issued. One is a five-year bond series totaling $27.2 million, which pays between LIBOR +2% and LIBOR +3%; the second is an eight-year note worth $161.8 million, offering an interest rate of between LIBOR +3% to LIBOR +4.5% and a five-year peso- denominated "step up" bond, worth ARS109 million ($1=ARS2.935), which is indexed to inflation and offers interest rates of 5% to 8%, said the report. MULTICANAL: Moody's Affirms Caa1 FC Rating, Negative Outlook ------------------------------------------------------------ Moody's Investors Service confirmed its Caa1 foreign currency rating with negative outlook on Multicanal S.A. on Monday. The ratings agency has recently upgraded the rating from Ca. Other ratings on the Company were confirmed. Moody's said that the Senior Implied Rating, the Senior Unsecured Issuer Rating, Global MTN program, US$526.4 million aggregate of Senior Unsecured Notes were all affirmed at Ca. Outlook is negative. The ratings agency said that the ratings are no longer constrained by the sovereign ceiling, are now pegged entirely to ultimate anticipated recovery levels for the company's creditors, and reflect Moody's expectation of loss severity for senior unsecured claims of 30% or greater under an assumed restructuring of the company's balance sheet that would allow it to continue as a going concern. The possible impact on operational cash flow of a lack of pricing power, with a pass through to rates of less than half of general price inflation (WPI) over the past 18 months, and weaker pricing and churn levels after a likely public utility tariff increase, which has not occurred since the float of the Peso is denoted by the negative outlook, said Moody's. The possibility of a ratings downgrade remains if the free cash flow reported in this year's first half proves unsustainable. PINTURERIA PROFESIONAL: Seeks Court Permission To Reorganize ------------------------------------------------------------ Buenos Aires-based Pintureria Profesional S.A. is seeking court permission to undergo reorganization, relates local news portal Infobae. The Company has submitted its motion for "Concurso Preventivo" to the city's Court No. 25. The report adds that the court works with Clerk No. 49 on the case. It did not indicate, however, whether the motion is likely to merit the court's approval. CONTACT: Pintureria Professional S.A. Condarco 1319 Capital Federal TGS: DebtTraders Issues Buy Recommendation ------------------------------------------ DebtTraders initiated coverage of Argentina's Transportadora de Gas del Sur's $150 million 4.4% Series 1 Bonds due March 2003, $150 million 10.375% Series 2 Bonds due April 2003, and $100 million 3.41% Series 3 Bonds due March 2003, as well as the Company's $200 million 3.95% Notes due April 2006, with a BUY recommendation, a SAFETY rating of 80% and an ATTRACTIVENESS rating of 82%: "We recommend investors BUY the notes based on 1) The Company's ability, in our view, to repay principal in full, through a rescheduling process (rather than a restructuring one); 2) TGS' operations in non-regulated activities that partially isolate the Company from the effect of pesification and freezing of tariffs; 3) A relatively low leverage (Debt-to-EBITDA of 5.6 times at the end of the second quarter of 2003), and high operating and EBITDA margins of 48% and 66%; and 4) An estimated average Internal Rate of Return of 14.46% under our Base Case Scenario assuming full principal repayment in 10 years, 2.0 times EBITDA/Interest expense coverage, and the refinancing of approximately $187 million residual principal in 2013 at a leverage ratio of approximately 1.03 times." "Our recommendation is also based on a SAFETY rating of 80% and anATTRACTIVENESS rating of 82%. The SAFETY rating reflects TGS' ability to repay the full amounts of principal outstanding if it is able to reschedule its obligations. The ATTRACTIVENESS rating reflects an estimated IRR of 14.35% at a trading price of 67.0." Analyst: Rafael Elias Phone: +1 212-247-5300 TINTEX SACIIF: Court Assigns Bankruptcy Receiver ------------------------------------------------ Court No. 24 of Buenos Aires appointed local accountant Mr. Eduardo Miguel Echaide as receiver for the bankruptcy of Tintex S.A.C.I.I.F. Y.A., reports Infobae. The receiver will verify creditors' claims until September 30. After that, he will prepare the individual reports, which must be presented to the court on October 31. The court also requires the receiver to prepare a general report on the bankruptcy process and file it this December 2. CONTACT: Eduardo Miguel Echaide Sanchez de Loria 155 Buenos Aires TRANSPORTE TOMEO: Court Orders Bankruptcy ----------------------------------------- Buenos Aires' Court No. 2 orders the bankruptcy of local company Transporte Tomeo S.A., reports Infobae. Clerk no. 4 assists the court on the case. The designated receiver is local accountant, Mauricio Mudric, who will verify creditors' claims until October 14 this year. The court also ordered the receiver to prepare individual and general reports, which must be filed by December 9, 2003 and February 17, 2004, respectively. CONTACT: Trasporte Tomeo S.A. Moreno 955 Buenos Aires Mauricio Mudric Tucuman 893 Buenos Aires TRANSPORTES CONTAINER SERVICE: Files "Concurso Preventivo" ---------------------------------------------------------- Transportes Container Services S.R.L., which is domiciled in Buenos Aires, filed a motion for "Concurso Preventivo" to the city's Court No. 13. The Company is seeking the court's permission to undergo reorganization. A report from local news portal Infobae relates that the court works with Clerk No. 25 on the case. However, the report did not indicate whether the motion is likely to be granted. In the event that it is approved, the court will assign a receiver to oversee the reorganization process. CONTACT: Transportes Container Service S.R.L. Maipu 763 Buenos Aires * Government Refusing to Repay US$3 Billion IMF Loan ---------------------------------------------------- A successful restructuring of Argentina's US$103 billion public debt is becoming an impossible prospect as the government officials withhold obligations to the International Monetary Fund. Up until the eve of the country's deadline to repay its US$3 billion loan from the Fund and reach a new long-term agreement, President Nestor Kirchner's administration remained unwilling to accede to demands for it to overhaul the country's banking sector, cut the deficit, and increase public utility rates. According to the Associated Press, a meeting between President Kirchner and Central Bank President Alfonso Prat Gay resulted in few changes in the government's stance Monday evening. The IMF did not immediately issue a statement when the deadline lapsed yesterday. Argentina needs a new long-term agreement with the IMF in order to devise a plan to restructure its huge public debt, on which it defaulted in December 2001. The Fund, however, wants the government to introduce deep reforms as a pre-requisite to a new deal, which government negotiators for months have refused to accept. Finally, in an effort pressure the Fund into signing a new agreement, the government has held back payment of the US$3 billion loan until a possible deal is imminent. Cabinet Chief Alberto Fernandez recently said the government would never dip into its reserves to meet the IMF payment. =========== B R A Z I L =========== AES: Reaches Restructuring Agreement With BNDES ----------------------------------------------- The AES Corporation (NYSE: AES) announced on Monday that it has entered into a memorandum of understanding with Banco Nacional de Desenvolvimento Economico e Social (BNDES) to restructure the outstanding loans owed to BNDES by several of AES' Brazilian subsidiaries. The restructuring will include the creation of a new company that will hold AES' interests in AES Eletropaulo, AES Uruguaiana and AES Tiete. AES Sul will be contributed upon the successful completion of its financial restructuring. AES will own 50.1%, and BNDES will own 49.9%, of the new company. Under the terms of the agreement, 50% of the currently outstanding BNDES debt of $1.2 billion will be converted into 49.9% of the new company. The remaining outstanding balance of $515 million (which remains non-recourse to AES) will be payable over a period of 10 to 12 years. AES and its subsidiaries will also contribute $85 million as part of the restructuring, of which $60 million will be contributed at closing and $25 million will be contributed one year after closing. Closing of the transaction is subject to the negotiation and execution of definitive documentation, certain lender and regulatory approvals and valuation diligence to be conducted by BNDES. Paul Hanrahan, President and Chief Executive Officer of AES, stated, "We are encouraged by the Brazilian government's recent commitments to address the lingering effects of rationing on the sector. In doing so, Brazil is taking a crucial step toward creating a climate that is conducive to new investment. We look forward to working with BNDES." "This agreement with BNDES places AES' Brazilian businesses on a financially sound footing and allows AES to renew our commitment to doing business in Brazil," said Joseph C. Brandt, Executive Vice President and Chief Operating Officer of AES. "The past eighteen months have been a difficult period for our investments in Brazil, the Brazilian power sector and our relationship with the Bank. With this agreement, we welcome BNDES as our partner and look forward to the shared successes of these businesses." AES is a leading global power company comprised of contract generation, competitive supply, large utilities and growth distribution businesses. The company's generating assets include interests in 119 facilities totaling over 46 gigawatts of capacity, in 28 countries. AES' electricity distribution network sells 89,614 gigawatt hours per year to over 11 million end-use customers. For more general information visit our web site at www.aes.com or contact investor relations at investing@aes.com. CONTACT: AES Kenneth R. Woodcock Phone: 703-522-1315 AMBEV: S&P Affirms Ratings; Outlook Stable ------------------------------------------ Standard & Poor's Ratings Services on Monday affirmed its 'BBB-' local currency and 'B+' foreign currency corporate credit ratings on AmBev-Companhia de Bebidas da Am‚ricas (AmBev). The outlook on AmBev's local and foreign currency ratings remains stable. The local currency rating on AmBev reflects the strong recognition of its proprietary brands and dominant position in the Brazilian beverage industry; the operating benefits stemming from its extensive and efficient distribution network; and its solid financial profile, resulting from a prudent financial policy and strong cash generation ability. The local currency rating, which is above that of the Federative Republic of Brazil, indicates that the company could withstand harsh scenarios resulting from country risk or sovereign interference. However, AmBev is still subject to vulnerabilities particular to the country and their impact on future cash flow stability. The company derives most of its revenues and cash flow from the Brazilian market, and future growth and profitability are susceptible to the volatility of the currency, to the strong correlation between AmBev's sales and Brazilian GDP and income level, and to a potential increase in tax charges. As a Brazilian entity, AmBev also shows weaker financial flexibility when compared to that of its international peers. "The stable outlook on the local currency rating indicates that despite a slow-growth market environment and the volatilities inherent to the Brazilian economy, AmBev should maintain strong levels of operating and financial performance in the next several years, overcoming many of the country risks that affect Brazilian corporations," said credit analyst Jean-Pierre Cote Gil. "The stable outlook on the foreign currency rating reflects that of the sovereign rating on Brazil." Analyst: Jean-Pierre Cote Gil Sao Paulo Phone: (55) 11-5501-8946 Milena Zaniboni Sao Paulo Phone: (55) 11-5501-8945 ARACRUZ CELULOSE: Upgrades Fiberline B Evaporation Unit Controls ---------------------------------------------------------------- Physical switchover from Fisher-Provox to Foxboro system at world-scale pulp mill in Espirito Santo State in Brazil completed in just over three hours Foxboro, a unit of Invensys, on Monday announced that Aracruz Celulose, the world's leading producer of bleached eucalyptus pulp, recently established a new industry record by completing the physical switchover of more than 1,000 I/O points from a legacy Fisher-Provox control system to a modern I/A Series automation system in just three hours and seven minutes. This control system migration was performed with the assistance of Invensys' migration experts at Aracruz Celulose's Fiberline B evaporation unit at the company's world-scale pulp mill in Espirito Santo State, Brazil. "This sets a clear record for Foxboro, and - to the best of our knowledge - for any controls vendor at any customer site anywhere in the world," said Mike Caliel, president of Invensys Process Systems. "The success of this modernization project is the result of a partnership with Foxboro and Invensys that began seven years ago," said Mr. Luiz Renato Figueiredo, Aracruz's engineering manager. "During this period, we have worked together to continuously fine-tune the manner in which we plan and execute system modifications and improvements. With each new project, we have set new records of accomplishment." This record-setting automation upgrade was performed using Foxboro's unique system migration approach. This approach utilizes special input/output (I/O) modules that are functionally identical to ordinary I/A Series modules, but are re-packaged to plug right into the existing Fisher Provox (or other vendors') I/O racks. These I/O modules enable the physical switchover to be accomplished without moving any field wiring, thus dramatically minimizing production downtime. Prior to shutting down the existing Fiberline B evaporation unit control system on the scheduled system switchover date, the joint Aracruz and Invensys migration team prepared all I/A Series screens, defined the control strategies, converted the database and thoroughly tested all elements. The same migration approach was previously utilized to replace the Fisher Provox boiler controls on Fiberline B. According to Mr. Floreal Puig, Aracruz recovery and utility manager, based on the success of these two upgrades, the approach is being considered for other mill areas as well. Fiberlines A and C at the Espirito Santo State mill are already under I/A Series control. Invensys operates in more than 60 countries, with its headquarters in London. For more information, visit www.invensys.com . I/A Series, Foxboro, APV, Avantis, IMServ, SimSci-Esscor, Triconex, and Wonderware are trademarks of Invensys plc, its subsidiaries, or affiliates. All other trademarks are trademarks of their respective owners. CONTACT: Invensys Paul Miller Phone: 508-549-6240 Email: paul.miller@invensys.com ARACRUZ CELULOSE: Riocell is New Gua¡ba Unit -------------------------------------------- Aracruz Celulose held last week a press conference to a group of more than 30 journalists at the Plaza Sao Rafael Hotel in Porto Alegre. The event marked the beginning of its operations in the southern Brazilian state of Rio Grande do Sul after its purchase of Riocell from the Klabin group in July. The campaign shows that Aracruz, like the Ga£chos (as the inhabitants of the state are known), cultivate traditions, respects the environment and plants a future that has solid roots. As of this date, as well, Riocell has adopted the Aracruz name, a very valuable global brand. The pulp mill and forest plantations located in Rio Grande do Sul now constitute the new Aracruz Gua¡ba Unit, while the mill and plantations in Esp¡rito Santo and Bahia comprise the Barra do Riacho Unit. "We conducted feasibility studies on whether or not we should maintain the Riocell name, taking into account their degree of recognition in Brazil and abroad and also consulted the worldwide customers of the two companies. We reached the conclusion that keeping two names would generate competition and a dispersal of brand values, thereby losing the beneficial effects of the sum of the two," explained Aracruz's President and CEO Carlos Aguiar. He commemorated the second month of production records on the part of the recently acquired unit and announced a program to reconstitute forests in Rio Grande do Sul. The purpose of the program is to obtain higher density wood and to enhance the mill in order to obtain marginal increases in current production. Management exercised special care during the transition, a period during which the unit passed from control of Klabin to Aracruz. To do so, a work group comprising employees from both companies was set up to deal with the transition in key areas (communication, finance, office of the controller, legal and human resources). An in-house communications program was implemented to ensure that all employees were given regular information about the changeover. Trips made by all of Aracruz's directors to Gua¡ba helped reinforce the climate of trust and the commitment to growth - part of the company's philosophy that was transmitted to the employees. Besides Carlos Aguiar, other senior managers in Rio Grande do Sul for the launch of the campaign included Joao Felipe Carsalade, commercial director; Walter L¡dio Nunes, operations director - who has become general manager of the Gua¡ba Unit on an interim basis; and Isac Zagury, financial director. Subsequent to the meeting with the press, the campaign was presented first-hand to the Gua¡ba Unit's employees. ========= C H I L E ========= COEUR: Completes Final Notes Conversion and Redemption ------------------------------------------------------ Coeur d'Alene Mines Corporation (NYSE: CDE), the world's largest primary silver producer, announced on Monday it has completed the redemption of its remaining outstanding 13 3/8% Senior Convertible Notes. Since the end of the second quarter, $9.9 million of the 13 3/8% Notes were converted into 7.3 million shares of common stock pursuant to the original terms of the indenture. In addition, on September 5, 2003, the Company completed its previously announced redemption of the remaining $61,000 principal amount of 13 3/8% Notes for approximately $64,000, which includes accrued interest. Since the beginning of 1998, Coeur's total debenture indebtedness has been reduced from $288.6 million to the current level of $19.1 million. At June 30, 2003, the Company's cash and cash equivalents totaled approximately $20 million. Coeur d'Alene Mines Corporation is the world's largest primary silver producer, as well as a significant, low-cost producer of gold, with anticipated 2003 production of 14.6 million ounces of silver and 112,000 ounces of gold. The Company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile and Bolivia. Contact: Tony Ebersole Director of Investor Relations Phone: 208-665-0335 ============= E C U A D O R ============= ANDINATEL: More Executives Threaten Resignation ----------------------------------------------- A number of top executives at Ecuador's state fixed-line operator have threatened to resign, reports Business News Americas. Andinatel chair Rocio Bohorquez and board secretary Jaime Galvez, as well as the vice presidents of business, legal affairs, operations and finances have issued the warning. The country's holding company Fondo de Solidaridad (FS) began negotiations with the executives to prevent further resignations at the Company. The report said that the threat was issued in support of Andinatel CEO Richard Jaramillo, who resigned recently, reportedly due to political pressure. Citing an unnamed Company source, the report indicated that Mr. Jaramillo remains chief executive at the Company's mobile venture Telecsa. Army Major Luis Ricalde takes over his seat as Andinatel CEO. Senator Gilmar Gutierrez, brother of President Lucio Gutierrez reportedly attempted to coerce Mr. Jaramillo to reinstate Andinatel's Director of Branches, Javier Alban. Mr. Alban was terminated earlier for abusing his position of trust. Employees' representative Giovanni Cabrera said Gutierrez had asked Alban to employ 240 members of the Patriotic Society (SP) political party, the report adds. =========== M E X I C O =========== GRUPO IUSACELL: DebtTraders Issues Distressed Review ---------------------------------------------------- DebtTraders issued on Monday a Distressed Review on Mexico's Grupo Iusacell that assesses the outlook for Grupo Iusacell bondholders in the following issues: Grupo Iusacell Celular 10% Senior unsecured Notes due 2004 ("Notes due '04") and the Grupo Iusacell 14.25% Senior Notes due 2006 ("Notes due '06"). In this Distressed Review, we assess the outlook for bondholders of the following issues: Series B 11.75% Senior Unsecured Notes due 2/15/08 and 12.875% Senior Unsecured Notes due 5/15/08 (the "Senior Notes"). Estimated recovery values for the Notes due '06 range from 6% to 21%, also below current levels of 30/33.5. As such, we recommend investors Sell the Notes due '04 and '06. Only under our Best Case scenario, do we arrive at recovery rates for the Notes due '04 that exceed current prices, with a potential recovery of up to 70%. Under a Best Case scenario, estimated recovery values for the Notes due '06 are still below current levels. Analyst: George Monserrat + 1 212 247-5300 HYLSAMEX: Expects Good 2H03 Results ----------------------------------- Mexican steel maker Hylsamex expects that this year's second half will be a good one. Reuters News quoted the Company's Chief Executive Alejandro Elizondo as saying, "We are seeing (the second semester) with optimism. We are confident that the Mexican economy will grow at a faster pace and that demand for our products will be tied to that growth." However, said the report, the Company did not dismiss the possibility that it might be selling some of its assets or join a venture to boost its performance. The Company, which is owned the by Grupo Alfa conglomerate, had troubles after a slowdown in the world economy and lower steel prices. The report added that the Company restructured its debt in 2002. Mr. Elizondo said that the Company is stepping up its production in order to meet local and U.S. demand. However, the officer did not elaborate. Hylsamex has five major divisions: flat steel, Bar and Rod, Galvacer, Hyl and Acerex. Its trademarks include Agropanel, Galmet, Galvanok, Galvatherm, Supermuro 1000, Aklum, Galuzinc, Galvamet, Galvatile and Superwall. CONTACT: Hylsamex S.A. de C.V. 101 Ave Munich Cuauhtemoc 66452 San Nicolas de los Garza Nuevo Leon Mexico Phone: +52 81 8865 2828 Fax: +52 81 8865 1210 Home Page: http://www.hylsamex.com.mx Contact: Engr. Dionisio Garza Medina, Chairman Alejandro Elizondo Barragan, Chief Executive Engr SAVIA: Seminis Stockholders Approve Merger ------------------------------------------ Savia S.A. de C.V. (BMV:SAVIA) (NYSE:VAI) announced on Monday that the stockholders of Seminis Inc. approved on Sept. 5 its previously announced merger agreement relating to the proposed transaction with Fox Paine & Company LLC, a San Francisco-based private equity firm, Savia S.A. de C.V., Seminis' majority stockholder and certain related parties. Subject to satisfaction of applicable closing conditions, including obtaining the necessary financing, Savia and Seminis currently expect to complete the merger by the end of September 2003. Following completion of the merger, Seminis will be privately held, will no longer be a subsidiary of Savia and Seminis' shares will no longer be listed on the Nasdaq National Market. Savia (www.savia.com.mx) participates in industries that offer high growth potential in Mexico and internationally. Its principal subsidiaries include Seminis, a global leader in the production and marketing of fruit and vegetable seeds; Bionova, a company focused on the production, distribution and commercialization of fruits and vegetables; and Desarrollo Inmobiliario Omega, a company dedicated to the development of real estate in Northern Mexico. Fox Paine & Company LLC (www.foxpaine.com) manages investment funds in excess of US$1.5 billion, providing equity capital for corporate acquisitions, company expansion and growth programs and management buyouts. The Fox Paine funds are managed on behalf of over 50 leading international financial institutions, including major governmental and corporate pension systems, Fortune 100 companies, major life and property & casualty insurance and reinsurance companies, money center and super regional commercial banks, investment banking firms and university endowments. Fox Paine was founded in 1997 by Saul A. Fox, a former general partner of Kohlberg Kravis Roberts & Co., and W. Dexter Paine III, a former general partner of Kohlberg & Co. Savia's financial statements are prepared in compliance with generally accepted accounting principles in Mexico. For the consolidation of domestic subsidiaries, Savia follows the guidelines set forth in bulletin B-10 and for foreign companies follows the guidelines set forth in bulletin B-15. Seminis and Bionova report following the generally accepted accounting principles of the United States (GAAP) that differ from the generally accepted accounting principles of Mexico. These results are adjusted to reflect the above-mentioned guidelines. In addition, Seminis reports its fiscal year the first quarter of October through the last of September. Savia reports its fiscal year on a calendar basis, including in its consolidated results the operations of Seminis according to calendar year. CONTACT: Savia S.A. de C.V., Monterrey Francisco Garza Phone: 011-81-81-73-55-00 Email: fjgarza@savia.com.mx VITRO: Develops New Wine Bottle Technology ------------------------------------------ Opening a bottle of wine no longer requires being a corkscrew expert. Vitro Packaging, Inc., Vitro's U.S. subsidiary, announced on Monday that it has jointly developed, with Gardner Technologies, a Napa, California-based wine technology company, an innovative glass wine bottle for Gardner's revolutionary new product, MetaCorkT. MetaCork is a twist-to-uncork wine opener that integrates the traditional look of cork and foil finished wine with state-of-the-art technology. In addition, MetacorkT offers a drip resistant pouring feature and an airtight, reseal cap. Nearly 60,000 MetaCorkT-sealed bottles of Amusant, Clos du Bois, and Fetzer's Super Premium brands are being test marketed in restaurants, wine shops, and selected retail chain stores in California and Texas. Early reports indicate that consumers are marveling at the fact that all it takes is a simple twist of the wrist to remove the cork. "Vitro is well known for its innovative products, value enhanced and highdegree-of-difficulty packaging design. However, no other product development has been as special as this one. Not only for its level of innovation or for being part of a strategic sales line, but also for the extensive time required to develop dozens of variations on the basic concept before reaching the final design for Burgundy and Claret wine bottles," said Jose C. Fuentes, New Product Development Manager at Vitro Packaging. Vitro is known for its innovative solutions challenging product design. "Our work with Gardner Technologies on their patented bottle design was one of our most rewarding successes. We worked side-by-side with Gardner's product development team over a two- year period to refine dozens of variations on the basic concept before arriving at the final solution. It was truly a hand-on, strategic design process." Said Jose C. Fuentes, New Product Development Manager at Vitro Packaging. "Projects such as MetaCorkT strengthen our participation in the North American economy", said Alfonso Gomez Palacio, President of Vitro's Containers business unit. " When completed, this project will involve a California Company, our Texas Commercial headquarters, our glass containers production facility located in Monterrey, Mexico, as well as thousands of US consumers. This is a huge opportunity for us to show our capabilities to a worldwide wine industry." MetaCorkT was designed by Dr. William Gardner, Chief Technology Officer and founder of Gardner Technologies. He developed his first prototype in 1996, but the product's design was not finalized until the latter part of 2000. MetaCorkT encompasses a unique bottle design with a built-in cork anchor that enables the consumer to remove a cork or synthetic stopper with nothing more than a few twists of the capsule. "We affectionately refer to MetaCorkT as a twist-capsule, since it clearly is not a screw cap! In fact, MetaCorkT has created an entirely new category for wine packaging. Additionally, MetaCorkT is 100% recyclable and provides a convenient reseal cap and drip- resistant pouring feature--all with the same attractive appearance of the traditional foil capsule," said Dr. Gardner. "Bottles sealed with MetaCorkT have the same aesthetic qualities as traditional wine bottles, but its functionality is what makes the difference. Creating bottles for MetaCorkT required a great deal of analysis and the development of several prototypes and plant unit-cavity samplings. We also created a complete set of molds for first production manufacturing," Fuentes explained. Fuentes added, "One of the primary challenges of this project was to maintain a balance between the technology that provides the new functionality and the aesthetic requirements for a wine package. In addition, the design of the bottle finish with its specifications for glass had to be compatible with the unique requirements of the plastic capsule, and had to ensure that the MetaCorkT system would work without any problems for the consumers. "To date, a critical factor in Gardner's success is its supportive partnerships with wine producers and equipment and material suppliers. We have the good fortune of being able to share our vision with some of the top names in the wine industry," said William Borghetti, CEO of Gardner Technologies. "Take Vitro Packaging, for instance. Vitro is one of the world's leading glass manufacturers and is at the forefront of new bottle design for the wine industry. Since no glass manufacturer had ever produced a bottle that met our unique specifications, we needed a partner who could take on such a technical challenge and work with us to ensure that quality was top notch," Borghetti added. Even though it is very difficult to innovate in a traditional industry, customers are the ones who have the final word. "MetaCorkT should have great consumer appeal since it allows consumers to concentrate on enjoying the wine, rather than worrying about how to open it properly. MetaCorkT furthers Fetzer's goal of creating innovative ways to improve the consumer's wine experience," said Doug Gillespie, Global Brand Director for Fetzer Vineyards. Lee Farlander, President of Vitro Packaging, emphasized that "Vitro Packaging's participation in this type of project enables the company to enhance its design cabilities. Our main focus is to develop and manufacture value-added glass containers that allow us to provide our customers with the most advanced technological solutions." While it is premature to speak about sales projections, if the market tests are as positive as expected, other wine companies will certainly want to join this superior wine experience. In the mean time, Gardner Technologies and Vitro Packaging will jointly continue to develop innovative packaging solutions. "Vitro Packaging has developed what we believe is the largest selection of wine molds in the industry. Wineries now have a large selection of shapes, sizes, colors and new closure alternatives to add value to these products". An additional advantage of doing business with Vitro Packaging is the company's focus on delivering high-quality customer service; each client is part of a dedicated team. With offices in Napa, Sacramento, Dallas, Atlanta and New York, Vitro Packaging serves the U.S. in the 48 contiguous states. Its 2002 sales reached US $209 million, accounting for 25% of Vitro's Glass Containers business' total sales. Thanks to the efforts of its 98 employees, Vitro Packaging continues to grow in 2003, with sales up 5.1% year to date. For more information about Gardner Technologies, Inc., MetaCorkT and Vitro Packaging, please visit www.gardnertech.com, www.metacork.com and www.vitro.com/vitro_packaging/ingles/home.htm, respectively. CONTACT: Vitro, S.A. de C.V. Beatriz Martinez Phone: +52 (81) 8863 - 1528 Email: bemartinez@vitro.com Jorge Torres Phone: +52 (81) 8863 - 1240 Email: jtorres@vitro.com ================= V E N E Z U E L A ================= CANTV: Selects iBasis for International Voice Service ----------------------------------------------------- iBasis, Inc. (OTCBB: IBAS), the leader in Internet-based voice communications, on Monday announced that Cantv, the largest telecommunications carrier in Venezuela, has interconnected with The iBasis Network(TM) for international voice services. By interconnecting with iBasis Cantv is able to route international voice traffic over The iBasis Network, as well as complete calls for iBasis over Cantv's extensive network in Venezuela. Cantv joins the more than 180 carriers worldwide who have formed partnerships with iBasis to send and receive international long distance calls over the company's Cisco Powered Network which has carried more than six billion minutes of international calls. By providing Tier One quality international service to these carriers, iBasis has become one of the world's 10 largest carriers of international traffic(1) and was recently ranked by global service providers as the world's best international wholesale carrier(2). "Leading national carriers like Cantv are recognizing the compelling value proposition of Tier One quality VoIP from iBasis," said Ofer Gneezy, president and CEO of iBasis. "By leveraging our many carrier relationships around the world, Cantv is able to deliver the highest quality international service while maintaining its focus on developing innovative voice and data products and growing its customer base." "iBasis brings us an opportunity to expand and enhance our international service," said Alfonso Olombrada, Interconnection Manager of Cantv. "As the leading provider of voice and data services in Venezuela, we wanted to work with a global provider that would support our high quality of service for our customers while expanding our global communications footprint." About Cantv Cantv, a Venezuelan corporation, is the leading Venezuelan telecommunication services provider with approximately 2.7 million access lines in service, 2.6 million cellular subscribers and 195,616 thousands Internet subscribers as of December 31, 2002. The company's strategic shareholders are affiliated of Verizon Communications Inc. with 28.5% of the outstanding capital stock (Class B Share), and retirees' and employees' trusts, which own 11.9% (Class C Shares). Public shareholders hold the remaining 46.1% of the outstanding capital stock. About iBasis Founded in 1996, iBasis (OTCBB: IBAS) is a leading provider of wholesale international telecommunications services. The company was named by service providers for two consecutive years as the best international wholesale carrier in Atlantic-ACM's annual International Wholesale Carrier Report Card. iBasis is a preferred provider for many of the largest carriers in the world, including AT&T, Cable & Wireless, China Mobile, China Unicom, MCI, Sprint, Telefonica, Telenor, and Telstra. iBasis has carried more than six billion minutes of international voice traffic over its global Cisco Powered Network(TM), and is one of the ten largest carriers of international voice traffic in the world. The company can be reached on the Internet at www.ibasis.com. (1)Estimated rank based on 1H 2003 iBasis traffic compared to international traffic volumes for carriers as published in TeleGeography 2003. (2)Atlantic-ACM International Wholesale Carrier Report Card 2003 - February 2003 CONTACT: iBasis, Inc. Chris Ward Phone: 781-505-7557 Email: cward@ibasis.net *********** 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. 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