/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/030915.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, September 15, 2003, Vol. 4, Issue 182 Headlines A R G E N T I N A ACINDAR: Proposed $80M Bond Issue To Yield 6% Annually ANCEL HERMANOS: Court Grants Permission To Reorganize BODI: Starts Reorganization Process CP DEL PLATA: Credit Check Closes Today CRESUD: Announces Fiscal Year 2003 Results DEL POLICLINICO: Individual Reports Due Today GOMERIAS MARCOS: Receiver Verifies Claims For Reorganization IRSA: Announces Fiscal Year 2003 Results KAMET: Court Sets Deadline For Individual, General Reports LABORATORIO OMEGA: Credit Verification Ends Today LEANSU: Credit Authentication Deadline Expires MAX-CAR: Enters Bankruptcy On Court Order METALURGICA LINCOLN: Court Rules "Quiebra Decretada" NEG GROUP: Deadlines For Individual, General Reports Set PLEYCO: Enters Bankruptcy on Court Order POST TOUR: Receiver Ends Credit Verifications Today PROMACO: Court Approves Reorganization Plan REICHERT HERMANOS: Receiver to File Individual Reports on Oct. 24 SINCLAIR'S: Files Motion For "Concurso Preventivo" SOLD ENERGY: Court Sets Deadlines For Receiver's Reports TELECOM ARGENTINA: CGII Files Statement of Ownership TELECOM ARGENTINA: Creditor Requests Company Bankruptcy ZINCARR: Seeks Court Permission To Undergo Reorganization *IDB President Welcomes Agreement Between Argentina, IMF B R A Z I L AES CORP.: Fitch Ratings Comments on AES Tiete AHOLD: ABN AMRO Sets Deadline For Final Bids For Brazilian Assets CEMIG: Announces Financing Agreement With BNDES COSIPA: To Place $83M in Debentures in Local Markets ELETRONET: Japanese Creditor Shuns Debt Plan EMBRATEL PARTICIPACOES: Minutes Of The B of D Meeting C H I L E COEUR D'ALENE: Announces Public Offering Pricing INVERLINK: Some US Banks Face Fraud Allegations C O S T A R I C A BICSA: S&P Lowers Ratings to Noninvestment Grade D O M I N I C A N R E P U B L I C BANCO MERCANTIL: New Owner Appoints Two New Board Members BANINTER: Baez Lawyers Submit Documents UNION FENOSA: To Transfer Electricity Companies To DR Government M E X I C O AHMSA: Responds to Exchange's Request AHMSA: Antidumping Investigation Could "Take Years" DESC: Sale of Division Will Not Affect Ratings Says S&P GRUPO IUSACELL: Noteholders Accelerate $150M of Defaulted Notes VITRO: Asset Sale Announcement Will Not Affect Rating P U E R T O R I C O CENTENNIAL COMMUNICATIONS: Announces Common Stock Public Offering CENTENNIAL COMMUNICATIONS: Introduces New Director James Pellow U R U G U A Y BANCO DE CREDITO: Moon Group Pays Part of $72M Debt V E N E Z U E L A PDVSA: Italian Government Anxious About Bitor Liquidation - - - - - - - - ================= A R G E N T I N A ================= ACINDAR: Proposed $80M Bond Issue To Yield 6% Annually ------------------------------------------------------ Argentine steelmaker Acindar's proposed US$80-million convertible bond issue will yield 6% annually and mature in nine years, the Company told the Buenos Aires stock exchange. Citing the Company's filing with the bourse, Business News Americas reports that the proceeds of this proposed offering will be used for refinancing debt, working capital purposes and for investing in fixed assets. Those taking up the issue can pay either in cash or by swapping debt, while the bonds will be convertible into B series shares from January 1, 2006. Buenos Aires-based Acindar, which is Argentina's largest integrated producer of long steel, with output of some 1.2Mt/y, has been in default since November 2001. The steelmaker has an outstanding debt of US$220 million that it is in the process of restructuring. Acindar's principal shareholders are Brazilian steelmaker Belgo- Mineira and Argentina's Acevedo family. 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 ANCEL HERMANOS: Court Grants Permission To Reorganize ----------------------------------------------------- The Civil and Commercial Tribunal of Resistencia, Chaco in Argentina granted permission to local company Ancel Hermanos S.A.C.I.I., to undergo reorganization, reports Infobae. The province's Court No. 10 approved the Company's motion for "Concurso Preventivo". The reorganization kicks off with the credit verification process. According to the source, the court assigned Ms. Maria Yolanda Aguirre as the company's receiver who will verify creditors' claims. The verification process ends on September 16. The report adds that the receiver will then prepare the individual reports and present them to the court on October 26 this year. The general report, on the other hand, must be submitted on December 10. The report did not mention whether the court has set the date for an informative assembly. CONTACT: Ancel Hermanos S.A.C.I.I. Juan B Justo 1745 Resistencia, Chaco Maria Yolanda Aguirre Remedios de Escalada 232 Resistencia, Chaco BODI: Starts Reorganization Process ----------------------------------- Ms. Nelida Patricia Maffiore, the receiver for Mar del Plata- based company Bodi S.A., is verifying creditors' claims for the Company's reorganization. A report by Argentine news source Infobae said that the credit verification process ends on October 6 this year. The Company received permission to undergo reorganization when the Civil and Commercial Tribunal of Mar del Plata approved its motion for "Concurso Preventivo". However, the report did not mention whether the court has set the deadlines for the individual and general reports. CONTACT: Bodi S.A. Ravadavia 3174 Mar del Plata Nelida Patricia Maffiore Catamarca 2076 Mar del Plata CP DEL PLATA: Credit Check Closes Today --------------------------------------- The credit verification process for the bankruptcy of Clinica Privada del Plata S.A. ends today, according to an earlier report by the Troubled Company Reporter - Latin America. The Company's receiver, Ms. Ana Maria Varela, will now prepare the individual reports, which must be submitted to the court on October 28. Argentine news source Infobae added that the general report, must is to be prepared after the individual repots are processed at court, must be filed on December 9. Buenos Aires' Court No. 3 ordered the Company's bankruptcy. The city's Clerk No. 6 assists the court on the case. CONTACT: Ana Maria Varela Talcahuano 768 Buenos Aires CRESUD: Announces Fiscal Year 2003 Results ------------------------------------------ Cresud S.A.C.I.F. y A. (NASDAQ:CRESY) (BCBA: CRES), a leading Argentine producer of agricultural products, announced Thursday its results for the fiscal year ended June 30, 2003. The company had net earnings of 65.0 million pesos for the year ended June 30, 2003, versus a 51.8 million-peso loss a year earlier. The result can be attributed to two factors primarily: operating earnings, which, despite fewer hectares used for agriculture, increased from 16.4 million pesos to 27.7 million pesos for the year; and earnings generated by our affiliate companies, primarily IRSA, in the amount of 68.1 million pesos. Summary of Operations In the last period, a total of 23,638 hectares were sown, 42% of which were Cresud's own fields and 58% leased fields. As of June 2003, the Company's cattle stock amounted to 83,051 head, with 135,257 hectares allocated for this activity. During the period, 121,000 tons of grain and more than 9,000 tons of meat were sold. Highlights The job of clearing 15,000 hectares for cattle raising and agriculture was begun in "AgroRiego San Luis" and "Los Pozos" farms. Our Feed Lot Cactus Argentina S.A. is operating at its full capacity. We are planning to expand the capacity of our first facility and to develop a second. As part of our strategy to move along the production chain, we began to slaughter some of our own beef cattle stock. Our investment in IRSA contributed 64.9 million pesos to our earnings for the year. Financial highlights (In Argentine Pesos expressed in constant currency as of 02/28/03) Fiscal Year 2003 Fiscal Year 2002 Total Sales 71,949,839 80,254,180 Operating income (loss) 27,680,295 16,359,517 Financial results, net (10,940,327) (8,738,456) Net Income 65,024,961 (51,767,793) Earnings per share 0.54 (0.35) Earnings per share Diluted 0.19 (0.35) Current Assets 58,556,786 110,501,852 Non current Assets 510,853,774 269,376,563 Total Assets 569,410,560 379,878,415 Current Liabilities 15,204,387 35,796,729 Non current Liabilities 162,200,339 21,033,815 Total Liabilities 177,404,726 56,830,544 Minority Interest 206,709 430,751 SHAREHOLDERS' EQUITY 391,799,125 322,617,120 Commenting on the outlook for this year, Cresud's President Eduardo S. Elsztain said: "A new growth phase has begun for the sector. The outlook is positive despite the withholdings imposed on exports. The projections for agricultural and livestock prices are favorable, and the price of land has appreciated significantly. This will surely result in an increase in the value of our assets. "Cresud currently owns more than 440,000 hectares of land and more than 80,000 head of cattle. It is in a solid financial position, with management consisting of professionals who are up to the challenges facing the company. This will allow us to take part in Argentina's economic growth." Cresud is a leading Argentine producer of basic agricultural products and the only such company with shares listed on the Buenos Aires Stock Exchange and Nasdaq. We are currently involved in various operations and activities, including crop production, cattle raising and fattening, milk production and certain forestry activities. Most of our farms are located in Argentina's pampas, one of the largest temperate prairie zones in the world and one of the richest areas of the world for agricultural production. CRESUD cordially invites you to participate in the Fiscal Year 2003 Results Conference Call to be held on September 12, 2003 at 15:45 EDT. If you would like to participate, please call: 1-888- 338-6461 if you are in the US, or +(1 973) 935-8509 for international calls. CONTACT: Cresud S.A.C.I.F. y A. Gustavo Mariani, Finance Manager Phone: +011-54-11-4323-7513 Email: gm@cresud.com.ar Home Page: http://www.cresud.com.ar/ DEL POLICLINICO: Individual Reports Due Today --------------------------------------------- The individual reports for the bankruptcy of Buenos Aires company Del Policlinico S.C.S. is due for submission to the city's Court No. 22 today. An earlier report by the Troubled Company Reporter - Latin America indicated that the credit verification process ended on August 4 this year. The receiver, Ms. Alejandra Ethel Giacomini, an accountant from Buenos Aires, is also required to prepare a general report on the process. This report must be presented to the court on October 27. CONTACT: Ms. Alejandra Ethel Giacomini Carabobo 250 Buenos Aires GOMERIAS MARCOS: Receiver Verifies Claims For Reorganization ------------------------------------------------------------ Mr. Marcelino Ovies, receiver for Gomerias Marcos S.A. is verifying creditors' claims for the Company's reorganization. Argentine news portal Infobae reports that the deadline for the verification of credit claims is October 2 this year. According to the report, the Company received permission from the Civil and Commercial Tribunal of Mar del Plata. The province's Court No. 13 approved the Company's motion for "Concurso Preventivo". The source did not indicate whether the court has set the deadlines for the individual and general reports, which are to be prepared by the receiver upon completion of the authentication process. CONTACT: Gomerias Marcos S.A. Ave. Colon 3469 Mar del Plata Marcelino Ovies 25 de Mayo 3727 Mar del Plata IRSA: Announces Fiscal Year 2003 Results ---------------------------------------- IRSA Inversiones y Representaciones Sociedad Anonima (NYSE:IRS) (BCBA: IRSA), the leading real estate company in Argentina, announces its fiscal year 2003 results ending June 30, 2003. Net income for the fiscal year 2003 increased to Ps. 286.4 million, or Ps. 1.36 per share (Ps. 13.65 per GDS), compared to a loss of Ps. 539.1 million, or Ps. 2.60 per share (Ps. 25.99 per GDS), for the fiscal year 2002. Both results were greatly affected by exchange rate fluctuation. Consolidated net sales for the fiscal year 2003 totalled Ps. 212.9 million, a 55% increase compared with Ps. 137.6 million in the same period last year, basically explained by the consolidation of Alto Palermo in our financial statements. The breakdown in net sales among the Company's various business segments is as follows: Sales and Development, Ps. 47.2 million; Offices and Other Rental Properties, Ps. 17.8 million; Shopping Centers, Ps. 113.8 million; and Hotels, Ps. 34.2 million. HIGHLIGHTS Operating income totaled Ps. 9.7 million compared to a loss of Ps. 36.6 million in the previous year. After three years of postponing new developments because of the recession, we are considering starting construction on two buildings to take advantage of low construction costs and strong demand in the top economic sector. Our strong cash position encouraged us to continue our strategy of reducing financial debt. In August, we prepaid US$ 16 million of our debt due in 2009, obtaining a 32% discount. In the Shopping Center segment, we obtained a notable increase in occupancy -- 96% -- achieving pre-crisis levels. Over the year, our tenants increased sales 42% in nominal terms and 8% in real terms. We also plan to begin developing the first Shopping Center in the city of Rosario through our subsidiary Alto Palermo S.A. Commenting on the Company's perspectives, Eduardo S. Elsztain, Chairman, said, "Our company is positioned to lead in its business segments the vital and essential growing process of the Argentine economy. As such, we have to emphasize that its assets, including its controlling participation in the leading Shopping Center operator of the country, Alto Palermo S.A.; its extraordinary stock of land reserves available for the future development of different projects; the portfolio of office buildings with unique locations, that slowly start to regain its historical occupation levels after maintaining a floor of 60% during the crisis and its portfolio of first-class hotels, shape an unquestionable value reserve for our present and future shareholders." Financial highlights (In thousands of Argentine Pesos expressed in constant currency as of 02/28/03) FY 2003 FY 2002 Total sales 212,935 137,640 Operating Income 9,662 -36,631 Financial results, net 325,899 -497,560 Net (Loss)-Income 286,445 -539,114 Net Income per GDS 13.65 -25.99 Net Income per GDS (diluted) 5.70 -25.99 Current Assets 288,603 153,170 Non Current Assets 1,764,361 1,139,534 Total Assets 2,052,964 1,292,704 Short-Term debt 87,434 634,597 Total Current Liabilities 172,458 681,029 Long-term debt 592,104 160 Total Non Current Liabilities 629,988 4,061 Total Liabilities 802,446 685,090 Minority Interest 441,332 84,894 Shareholders' Equity 809,186 522,720 IRSA is Argentina's largest, most well-diversified real estate company, and it is the only company within the industry whose shares are listed on the Bolsa de Comercio de Buenos Aires and The New York Stock Exchange. Through its subsidiaries, IRSA manages an expanding top portfolio of shopping centers and office buildings, primarily in Buenos Aires. The company also develops residential subdivisions and apartments (specializing in high- rises and loft- style conversions) and owns three luxury hotels. Its solid, diversified portfolio of properties has established the Company as the leader in the sector in which it participates, making it the best vehicle to access the Argentine real estate market. IRSA and APSA cordially invite you to participate in their fiscal year 2003 Results Conference Call Friday, September 12, 2003 at 15:00 EDT. If you would like to participate, please call: 1-877- 825-5811 if you are in the US, or + (1 973) 582-2767 for international calls CONTACT: IRSA Inversiones y Representaciones S. A. Gustavo Mariani, Finance Manager Phone: +011-54-11-4323-7513 Email: gm@irsa.com.ar Web site: http://www.irsa.com/ KAMET: Court Sets Deadline For Individual, General Reports ---------------------------------------------------------- Buenos Aires' Court No. 5 has set the deadlines for the individual and general reports pertaining to the reorganization of local company, Kamet S.A., reports Infobae. The receiver, Estudio Bruzzo Poltno Turek, is required to present the individual reports to the court on December 10 this year. The general report, on the other hand, must be filed on February 23, 2004. An earlier report by the Troubled Company Reporter - Latin America revealed that creditors are required to present their proofs of claims to the receiver for verification before October 28 this year. CONTACT: Estudio Bruzzo Plotno Turek Sarmiento 930 Buenos Aires LABORATORIO OMEGA: Credit Verification Ends Today ------------------------------------------------- Creditors of Laboratorio Omega S.A. are required to present their proofs of claim to the Company's receiver as the deadline for the credit verification process expires today. The court ordered the receiver, Ms. Nelida Cunarro, to prepare the individual reports and have them filed on October 27 this year. The general report must also be submitted to the court on December 9. Buenos Aires' Court No. 26 holds jurisdiction over the Company's case. CONTACT: Laboratorio Omega S.A. Guemes 4227 Buenos Aires Nelida Cuarro Paraguay 1269 Buenos Aires LEANSU: Credit Authentication Deadline Expires ---------------------------------------------- The deadline for the credit authentication process regarding the bankruptcy of Buenos Aires-based company, Leansu S.R.L., expires today. As instructed by the court, Xilef Irureta, the Company's receiver will now start preparing the individual reports. The receiver is also required to prepare a general report on the bankruptcy process, where he may voice out his opinions on the factors that led to the Company's bankruptcy. However, local sources did not indicate whether the court has set the deadlines for these reports. The Troubled Company Reporter - Latin America earlier reported that the Company Company was declared bankrupt by the city's Court No. 18, which is under Dr. Paez Castaneda. A request filed by creditor Celia Villalobos prompted the court's ruling, reported local newspaper La Nacion. CONTACT: Leansu SRL Ave. Mendrano 133 Buenos Aires Xilef Irureta 5th Floor Parana 145 Buenos Aires MAX-CAR: Enters Bankruptcy On Court Order ----------------------------------------- Max-Car S.R.L., in Buenos Aires, will undergo bankruptcy proceedings as ordered by the city's Court No. 5. The Company's assets will be liquidated at the end of the process, to pay its creditors. Argentine news portal Infobae relates that the Company's receiver, Ms. Silvia Judith Kohan, will verify creditors' claims until November 7 this year. She is to prepare the individual reports after that, and have them ready by December 22 this year. The Court also set March 4, 2004 as the deadline for the general report, which will be prepared after the individual reports are processed at court. CONTACT: Silvia Judith Kohan Francisco Bilbao 2875 Buenos Aires METALURGICA LINCOLN: Court Rules "Quiebra Decretada" ---------------------------------------------------- Metalurgica Lincoln S.R.L. was declared "Quiebra Decretada" by Buenos Aires Court No. 4. The court, which is assisted by the city's Clerk No. 7, assigned Mr. Mario Leizerow as receiver for the process, relates Argentine news source Infobae. Creditors must present their proofs of claim to the receiver for verification before November 6 this year. After that, the receiver is instructed to prepare the individual reports, followed by a general report. However, the source did not reveal whether the court has the set the deadlines for these reports. CONTACT: Metalurgica Lincoln S.R.L. Moldes 1435 Buenos Aires Mario Leizerow Ave. Corrientes 1250 Buenos Aires NEG GROUP: Deadlines For Individual, General Reports Set -------------------------------------------------------- Buenos Aires Court No. 21, which declared Neg Group S.A. bankrupt, has set the deadlines for the receiver's reports. According to local news portal Infobae, the individual and general reports must be submitted to the court on November 21 this year and February 5, 2004, respectively. The furniture maker was declared bankrupt upon the request of its creditor, Merzario Argentina S.A., an earlier report from the Troubled Company Reporter - Latin America revealed. Creditors must present their claims for verification before October 10 this year. CONTACT: Neg Group S.A. 11th Floor 'C' Libertad Street 877 Buenos Aires Ms. Patricia Narduzzi 1st Floor Rivadavia Ave. No. 666 Buenos Aires PLEYCO: Enters Bankruptcy on Court Order ---------------------------------------- Pleyco S.A., in Buenos Aires, enters bankruptcy after the city's Court N. 6 ruled that it is "Quiebra Decretada". The Company's receiver, Ms. Sandra Dallo, will verify creditors' claims util November 19 this year, according to local news source Infobae. The receiver's duties include the preparation of individual and general reports on the Company's bankruptcy. However, the source did not mention whether the court has set the cut-off dates for these reports. CONTACT: Pleyco S.A. Ave. Pacon 4166 Buenos Aires Sandra Dallo Tucuman 1711 Buenos Aires POST TOUR: Receiver Ends Credit Verifications Today --------------------------------------------------- Buenos Aires accountant, Alfredo Rodriguez, receiver for Post Tour S.A. ends the credit verification process for the Company's bankruptcy today. As ordered by the court, he will now prepare the individual reports and have it filed on October 27 this year. An earlier report by the Troubled Company Reporter - Latin America revealed that the general report, which is to be prepared after the individual reports are processed at court, must be submitted on December 9 this year. Buenos Aires' Court No. 18 holds jurisdiction over the Company's case. CONTACT: Alfredo Rodriguez MT de Alvear 1775 Buenos Aires PROMACO: Court Approves Reorganization Plan ------------------------------------------- Bahia Blanca Court No. 7 approved a petition for "Concurso Preventivo" filed by local company Promaco Sur S.A., reports Argentine news portal Infobae. The Company starts its reorganization process with the appointment of local accountant Alberto Annese as its receiver. The Civil and Commercial Tribunal of Bahia Blanca ordered the receiver to verify creditors claims until September 29 this year. Upon completion of the verification process, the receiver will prepare the individual and general reports. However, the source did not indicate whether the court has set the deadlines for these reports. CONTACT: Alberto Annese Alsina 19 Bahia Blanca REICHERT HERMANOS: Receiver to File Individual Reports on Oct. 24 ----------------------------------------------------------------- Mr. Juan Balbiano, receiver for Chaco-based Reichert Hermanos S.H., will file the individual reports for the Company's reorganization on October 24 this year. A report by Argentine news source Infobae relates that the Company obtained permission to undergo reorganization from the Civil and Commercial Tribunal of Chaco, where it filed its motion for "Concurso Preventivo". The report adds that the receiver is also required to prepare a general report on the matter and have it ready by December 5 this year. An informative assembly is set the take place on April 12, 2004. SINCLAIR'S: Files Motion For "Concurso Preventivo" -------------------------------------------------- Buenos Aires-based Sinclair's S.R.L. filed a motion for "Concurso Preventivo" in the city's Court No. 20, reports local news portal Infobae. The city's Clerk No. 39 assists the court on the case. If the motion is approved, the Company will be permitted to undergo reorganization. The court will assign a receiver to verify creditors' claims and prepare the necessary reports. However, the report did not indicate whether the court is likely to approve the motion or not. CONTACT: Sinclair's S.R.L. Ave. de Libertador 7278 Buenos Aires SOLD ENERGY: Court Sets Deadlines For Receiver's Reports -------------------------------------------------------- Buenos Aires Court No. 17 has set the deadlines for the individual and general reports. Argentine news portal Infobae relates that the receiver, Ms. Maria Cristina Moccia, will prepare the reports after the verification process is completed on Octobr 14. The court requires the receiver to have the individual reports ready by November 25, followed by the general report on February 11 next year. In these reports, the receiver may voice out her opinions on the Company's finances and the factors that led to its bankruptcy. The Troubled Company Reporter - Latin America earlier reported that the Company was declared bankrupt by the court, which is assisted by the city's Clerk No. 34. CONTACT: Sold Energy S.A. Ave. Roque Saenz Pena 730 Buenos Aires Maria Cristina Moccia Superi 1423 Buenos Aires TELECOM ARGENTINA: CGII Files Statement of Ownership ---------------------------------------------------- Capital Group International, Inc. ("CGII") and Capital International, Inc. ("CII") agreed on Tuesday, September 9, to file a joint statement on Schedule 13G under the Securities Exchange Act of 1934 (the "Act") in connection with their beneficial ownership of American Depositary Shares, representing Class B Ordinary Shares issued by Telecom Argentina Stet-France Telecom S.A. CGII and CII stated that they are each entitled to individually use Schedule 13G pursuant to Rule 13d-1(c) of the Act. CGII and CII are each responsible for the timely filing of the statement and any amendments thereto, and for the completeness and accuracy of the information concerning each of them contained therein but are not responsible for the completeness or accuracy of the information concerning the others. Background CGII is the parent holding company of a group of investment management companies that hold investment power and, in some cases, voting power over the securities reported in this Schedule 13G. The investment management companies, which include a "bank" as defined in Section 3(a)(6) of the Securities Exchange Act of 1934 (the "Act") and several investment advisers registered under Section 203 of the Investment Advisers Act of 1940, provide investment advisory and management services for their respective clients which include registered investment companies and institutional accounts. CGII does not have investment power or voting power over any of the securities reported herein. However, by virtue of Rule 13d-3 under the Act, CGII may be deemed to "beneficially own" 48,674,730 shares or 11.2% of the 87,265,000 shares of American Depositary Shares, representing Class B Ordinary Shares believed to be outstanding. CII, an investment adviser, registered under Section 203 of the Investment Advisers Act of 1940 is deemed to be the beneficial owner of 48,124,730 shares or 11.0% of the 87,265,000 shares of American Depositary Shares, representing Class B Ordinary Shares believed to be outstanding as a result of acting as investment adviser to various investment companies and institutional accounts. All of the shares reported are held in the form of American Depositary Shares, which each represent five Class B Ordinary Shares. CONTACT: CAPITAL GROUP INTERNATIONAL, INC. David I. Fisher, Chairman TELECOM ARGENTINA: Creditor Requests Company Bankruptcy ------------------------------------------------------- Letter to Argentina's Comisi�n Nacional de Valores informing them of the summons received by Telecom Argentina in reference to the proceeding "Gargantini, Claudia Ema vs. Telecom Argentina STET- France Telecom S.A. re. bankruptcy request". Buenos Aires, September 10, 2003 President of the Comisi�n Nacional de Valores Doctor Hugo Medina Dear Sir, Ref.: Information Section 3 of Chapter XXI of the Rules In my capacity as Responsible for Market Relations of TELECOM ARGENTINA STET-FRANCE TELECOM S.A. ("Telecom Argentina"), I hereby inform that Telecom Argentina received today the summons provided by Section 84 of Law No. 24.522 in the following proceedings: " Gargantini, Claudia Ema vs. Telecom Argentina STET-France Telecom S.A. re. bankruptcy request ", pending before the Argentine Commercial Court of First Instance in the City of Buenos Aires No. 19, Clerk Office No. 38. The Company will file a writ with the Court in due time and manner requesting the rejection of the claim and presenting the defenses that may correspond. We will keep you informed regarding any relevant facts that may occur in these proceedings. Sincerely yours, Pedro Gast�n Insussarry Responsible for Market Relations ZINCARR: Seeks Court Permission To Undergo Reorganization --------------------------------------------------------- Zincarr S.A., which is based in Buenos Aires is seeking court permission to undergo reorganization. A report by Argentine news source Infobae relates that the Company has submitted its motion for "Concurso Preventivo" to the city's Court No. 3, which is assisted by Clerk No. 6. However, the report did not indicate whether the petition is likely to earn the court's approval CONTACT: Zincarr S.A. Tucuman 1581 Buenos Aires *IDB President Welcomes Agreement Between Argentina, IMF -------------------------------------------------------- Inter-American Development Bank President Enrique V. Iglesias today welcomed the agreement between Argentina and the International Monetary Fund (IMF) for the next three years, saying the accord will "contribute in a very positive way to consolidate internal and external confidence and allow Argentina to continue to strengthen its policies of financial stabilization, economic growth and social improvement." Economic data for the current year, says Iglesias, reinforces confidence in the capacity of the Argentine economy to rebound - a capacity that will be strengthened by this agreement. Iglesias expressed confidence that the agreement will facilitate the continued commitment of the IDB with the economic and social development of Argentina. =========== B R A Z I L =========== AES CORP.: Fitch Ratings Comments on AES Tiete ---------------------------------------------- Fitch Ratings continues to monitor the impact on the AES Tiete Certificates Grantor Trust (certificates) of the recently announced memorandum of understanding (MOU) between The AES Corporation (AES, senior unsecured debt rated 'B' by Fitch) and Banco Nacional de Desenvolvimento Economico (BNDES). The MOU proposes the restructuring of US$1.2 billion of debt owed to BNDES by AES's Brazilian electricity distributor, Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A. (Eletropaulo). As part of the proposed restructuring, AES intends to include its ownership stakes in other Brazilian assets, which may include the holding companies of AES Tiete S.A. (Tiete). As proposed in the MOU, this transaction would have no impact on the flow of funds for debt service on the certificates. The 'BB-' rating of certificates remains on Ratings Watch Negative. The terms and conditions contained in the MOU are expected to be documented and closed by Dec. 15, 2003. The closing of the transaction is subject to the negotiation and execution of definitive documentation and certain lender and regulatory approvals. Separately, Fitch remains concerned regarding the AES IHB Cayman, Ltd.'s (IHB, the issuer of the certificates) ability to meet all of its financial obligations scheduled in December 2003, which include the replenishment of the debt service reserve account (DSRA) of approximately US$22 million, the repayment of approximately BRL70 million of intercompany debt with the Tiete operating company and scheduled interest and principal of US$22 million due under the certificates. Although recent monthly inflation has returned to manageable levels, Tiete is unlikely to generate sufficient funds to pay all of its financial obligations in their entirety. To resolve this situation, the company is expected to negotiate with the bondholders prior to the December debt service payment due date. The rating and Rating Watch Negative status of the certificates is based on the credit quality of Tiete and its ability to distribute sufficient dividends to meet semiannual debt service. Due to high inflation levels during 2002 and the first quarter of 2003, which has negatively affected net income results, Tiete has been temporarily unable to make sufficient dividend payments and utilized an intercompany loan to pay interest and principal on the notes in December 2002. The shortage of cash at the holding company led IHB to draw on its DSRA to meet debt service and file a claim with Overseas Private Investment Corporation (OPIC) to recover part of the deficit, as a result of an Exchange Rate Shortfall Event which was covered by the OPIC foreign exchange liquidity facility, discussed below. Fitch estimates the claim amount to be approximately US$5 million, which would be used to partially replenish the DSRA. The certificates benefit from an OPIC foreign exchange liquidity facility that covers up to US$30 million of debt service shortfalls when the shortfall is caused by devaluation. Tiete's net income levels and its holding companies' liquidity situation should improve over time as they receive greater dividends from the growth in net earnings as the new purchase power agreement (PPA) with Eletropaulo at higher prices ramps up through 2006. The PPA provides additional cushion in the out years, while the minimum coverage is projected to be in the first three years of the transaction. The rating of the Grantor Trust certificates remains higher than the current 'DDD' rating of Eletropaulo, given that Eletropaulo represents only a portion of Tiete's revenues. The rating also reflects Tiete's ability to directly access the receivables accounts of its off-takers, including Eletropaulo, in the event the distributor does not pay under the terms of the power supply contracts. Eletropaulo has made timely payments to Tiete under its supply contract, and the underlying operating fundamentals and receivables collections at Eletropaulo do not appear to be stressed to a point that would materially affect collection by Tiete. However, as the initial power supply contracts with the other distributors roll off and Eletropaulo becomes a greater percentage of Tiete's revenues, the rating of Eletropaulo should have a greater effect on the certificates' rating. Fitch believes that despite current problems plaguing Eletropaulo, its rating is likely to improve in the coming months as the company restructures its debt to a more manageable profile. Tiete is a low-cost electric generating company that benefits from a portfolio of hydroelectric assets and a base of contracted revenues. Tiete is centrally dispatched by the independent system operator to optimize system operation. Strong projected revenue growth, stable operating costs, manageable hydrology and regulatory risks, limited refinancing needs and experienced ownership support Tiete's credit quality. CONTACTS: Jason Todd +1-312-368-3217 Daniel Kastholm, CFA +1-312-368-2070, Chicago Jayme Bartling +55 11-287-3177, Sao Paulo Media Relations: James Jockle +1-212-908-0547, New York. AHOLD: ABN AMRO Sets Deadline For Final Bids For Brazilian Assets ----------------------------------------------------------------- ABN Amro NV, which is managing the sale of the Brazilian assets belonging to Dutch retailer Ahold NV, has set a Sept. 18 deadline for final offers for the assets, reports Reuters. Ahold is selling northeastern supermarket chains Bompreco Supermercados do Nordeste and G.Barbosa Comercial, as well as credit card business Hipercard, as part of a wider exit from South American markets after being rocked by an accounting scandal. To date, there are three groups eyeing for the said assets. These are Brazil's Companhia Brasileira de Distribuicao (CBD), Wal-Mart Stores Inc., and France's Carrefour. According to sources close to the sale process, the three interested groups are still analyzing the Ahold assets and studying partnerships with financial companies interested in the credit card wing. They also said Carrefour's interest had waned slightly as the French group was more focused on expanding in the south and southeast of Latin America's biggest economy. Meanwhile, retail analysts have said CBD, which operates mainly under the Pao de Acucar banner, may get help from French retailer Casino, which could exercise its options to raise its 24% stake in the Diniz family-controlled group this year and next to fund the Ahold acquisition. Bompreco, which Ahold entered in 1996, has 119 stores, while G. Barbosa, a family company the Dutch company bought last year, has 32 stores. CEMIG: Announces Financing Agreement With BNDES ----------------------------------------------- The Board of Directors of Companhia Energetica de Minas Gerais -- CEMIG, at its 317th Meeting, held on September 3, 2003, authorized the signing of a financing agreement with Banco Nacional de Desenvolvimento Social -- BNDES for a loan in the amount of R$322,192,124.94, to be adjusted according to variations in the SELIC rate as from the date of CEMIG's rate review -- April 8, 2003 -- up to the date of funding of each loan installment, in accordance with the conditions set forth in Provisional Measure No. 127, of August 4, 2003 and in Banco Central Resolution No. 3119, of August 27, 2003. This financing is intended to cover the shortfall in the concessionaire's funds due to the postponement of receipt, via rate adjustment, of the balance of the Account for Compensation of Variation in Items of Parcel A (CVA), which refers to variations in certain costs beyond CEMIG's control occurring from October 2001. COSIPA: To Place $83M in Debentures in Local Markets ---------------------------------------------------- Brazilian flat steelmaker Cosipa plans to issue BRL240 million (about US$82.8mn) in debentures in local markets as part of an effort to raise funds to restructure its current debt. According to a Business News Americas report, the notes will mature in four years and pay an annual premium of 3.5% on top of the CDI interbank deposit rate. The debt issue will be backed with receivables by Sao Paulo-based Cosipa and its Belo Horizonte-based parent company Usiminas. Local bank Banco do Brasil is coordinating the issue and will underwrite the paper along with local banks Itau, Unibanco and Spanish bank Santander. The proposed debenture issue awaits authorization from stock market regulator CVM, the report indicates. CONTACT: Investor Relations Dept: Gilson Rodrigues Bentes CFO's Assistant Tel: 55- 11 5070-8980 Fax: 5070-8895 Leandro Cappa Financial Analyst Tel: (11)5070-8887 E-mail: investidores@cosipa.com.br ELETRONET: Japanese Creditor Shuns Debt Plan -------------------------------------------- Brazilian Eletronet's efforts to restructure some BRL550 million (today US$187mn) of debts with Japanese cabling supplier Furukawa went nowhere Tuesday, reports Business News Americas. The Japanese firm rejected the debt plan, which was presented by Eletronet administrator Isaac Zveiter, because the discounts were too high and the time periods too long, said Furukawa Brazil president Foad Shaikhzadeh Eletronet owes Furukawa some BRL250 million for telecom cables used to build its network. US energy company AES owns 51% of Eletronet, while federal power company Eletrobras owns 49%, through its Lightpar holding company. EMBRATEL PARTICIPACOES: Minutes Of The B of D Meeting ----------------------------------------------------- DATE, TIME AND VENUE: September 3rd, 2003 at 9:00 a.m., at the Company's headquarters, Rua Regente Feij� 166/1687-B, Downtown, City and State of Rio de Janeiro. ATTENDANCE: the Majority of Directors AGENDA AND DELIBERATIONS: 1) Officer Withdrawal. A request was submitted by Mr. Pedro Antonio Batista Martins, who withdrew from his function, Director with no specific designation. Such request being adopted and homologated, thanking votes were uttered in praise of the withdrawing Officer for the dedication he showed along the performance of his duties. 2) Election of Director with no specific designation: Ms. Claudia Silva Araujo de AzerEdo Santos, Brazilian, divorced, lawyer, bearer of ID card no. 04441182-5 issued by IFP/RJ, enrolled in CPF/MF under no. 667.431.767-53, resident and domiciled in the City and State of Rio de Janeiro at Av. President Vargas n�. 1.012, 15th floor, was unanimously elected by the attending Directors for the function of Corporate Director with no specific designation. The Director thereby elected shall take over in the legal period, and remain in her function until the Regular Ordinary Meeting is held in 2004, on which date she shall submit to the company her due Statements of Non-impediment complying with article 147, paragraphs 1 and 2, of Act no. 6,404/76. ========= C H I L E ========= COEUR D'ALENE: Announces Public Offering Pricing ------------------------------------------------ Coeur d'Alene Mines Corporation (NYSE: CDE) announced Thursday the pricing of its previously announced public offering of 20,635,000 shares of common stock. Under an underwriting agreement between Coeur and the underwriters entered into on September 11, 2003, Coeur will sell the shares to the public at $3.40 per share. Coeur expects to receive net proceeds, after payment of the underwriters' discount, of approximately $66.5 million prior to the exercise of any over allotment option. Coeur has granted the underwriters a 30-day option to purchase up to an additional 3,095,250 shares of common stock at the public offering price to cover over allotments, if any. The offering is being managed by CIBC World Markets. A copy of the final prospectus related to the offering can be obtained from CIBC World Markets by e-mail: useprospectus@us.cibc.com or fax: 212-667-6136. The net proceeds will be used for exploration and development activities, debt reduction, acquisitions, and/or general corporate purposes. Coeur d'Alene Mines Corporation is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The Company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile and Bolivia. This press release shall not constitute an offer to sell or the solicitation of any offer to buy the securities described above, nor shall there be any sale of these securities in any state in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such a state. CONTACT: Coeur d'Alene Mines Corporation Tony Ebersole, Investor Relations Director Phone: +1-208-665-0335. INVERLINK: Some US Banks Face Fraud Allegations ----------------------------------------------- Some banks in the US may face legal problems for their alleged involvement in the Chilean financial group Inverlink's fraud scandal. Chilean financial daily El Diario suggests that local state agency Corfo may take legal actions against these yet-to-be-named banks for facilitating Inverlink's fraudulent acts against the agency. Inverlink has been accused of a CLP84-billion (US$120mn) theft from Corfo and also for espionage against the central bank. Earlier this year, Corfo hired US-based firm Kroll to investigate whether part of the stolen funds had found its way to the US. Sources say Kroll has come up with "solid information that will permit Corfo to soon start legal actions against banks abroad," Two weeks ago, Judge Patricio Villaroel revealed that Corfo has recovered so far only CLP500 million of the stolen funds. =================== C O S T A R I C A =================== BICSA: S&P Lowers Ratings to Noninvestment Grade ------------------------------------------------ Standard & Poor's Ratings Services said Thursday that it lowered its counterparty credit and CD ratings on Banco Internacional de Costa Rica S.A. (Bicsa) to 'BB+/B' from 'BBB-/A-3'. The outlook is stable. The downgrade to noninvestment grade reflects Bicsa's diminished operating performance in the past three quarters, compared to the performance reported when Standard & Poor's first assigned a rating to the bank in 2001. The bank has suffered not only from asset quality deterioration and its corresponding impact on profitability, but also from the combination of lower credit volume and a lower interest rate environment. As a lender of trade financing in Central and Latin America, Bicsa did not escape contagion from the difficult economic environment affecting the region, and between 2001 and 2003 reported a reduction of 6% on its loan portfolio and 8.7% in deposits. Asset quality and profitability were negatively affected due to basically two events-an exposure to Argentina and the failure of one of its largest clients in El Salvador in the first half of 2003. "Bicsa's ratings are underpinned by its regional infrastructure and business diversification geographically. The short-term nature of its loan portfolio, given the bank's specialization in trade finance, also supports the ratings," said Standard & Poor's credit analyst David Olivares. The stable outlook indicates that no additional material deterioration in the bank's financial profile will follow in the short-term. Bicsa is challenged to positively sort difficult operating and economic conditions in the region of its scope. Standard & Poor's considers that any deviation or delay from a recovery trend in the bank, or additional deterioration in its financial profile, would likely trigger another rating action. ANALYTS: David Olivares, Mexico City (52) 55-5279-2006 Ursula M Wilhelm, Mexico City (52) 55-5279-2007 =================================== D O M I N I C A N R E P U B L I C =================================== BANCO MERCANTIL: New Owner Appoints Two New Board Members --------------------------------------------------------- The board of the new owner of Dominican Republic bank Banco Mercantil, Republic Bank Limited of Trinidad and Tobago, named new members to the recently-acquired bank's board, reports DR1 Daily News. Republic Bank Limited of Trinidad and Tobago appointed Ronald Huggins, its former deputy managing director, and Alberto Tarabotto, as president and chief operating officer, respectively, of Banco Mercantil. Months prior to joining Mercantil, Tarabotto had been in charge of Scotiabank operations in the Dominican Republic. The Republic Bank Limited of Trinidad and Tobago recently purchased 93% of the shares of failed bank Banco Mercantil. Banco Mercantil, which began operations in 1984, went belly up due to a combination of what Central Bank Governor Jose Lois Malkum called improper administrative management and defective loans. The bank also suffered from the domino effect of the banking crisis (Baninter and Bancredito) and the devaluation of the peso, which Andres Aybar, former president of Banco Mercantil, in a letter to journalist Ana Mitila Lora, said impeded an agreement to be reached earlier to avoid the decapitalization of the bank. A statement from the Republic Bank indicates that they are taking over the failed bank that has 26 branches, 700 employees and US$142.8 million in assets. The Board of Directors of Banco Mercantil stated, "The entry of the significant Trinidad financial banking institution in the Dominican Republic will initiate a new era in the business relationship between both countries in which Mercantil will play an important role." BANINTER: Baez Lawyers Submit Documents --------------------------------------- Dominican Republic Judge, Eduardo S nchez, has taken hold of the documents that will prove that important government officers received "dozens of millions" from the collapsed Baninter bank, reports DR1 Daily News. The documents that stated several of the checks were issued in the days prior to the passing of presidential reelection in the National Congress were submitted by the defense bar of former Baninter president, Ramon Baez Figueroa, to the judge, who is preparing the case against Baez. Defense Lawyers Vinicio and Ju rez Castillo revealed that the checks were issued to Agriculture Minister Eligio J quez, who is the coordinator of the PRD faction that seeks the re-election of President Hipolito Mej�a, to National Treasurer Pastora M�ndez de Fondeur, and to the director of the Social Plan of the Presidency, Ana Mar�a Acevedo. Meanwhile, Diario Libre relates Mendez de Fondeur confirmed that in April 2002, and by way of Baninter vice president Marcos B ez Cocco, she requested and obtained a line of credit for RD$30 million and opened a checking account at Baninter in her name, that of J quez and Acevedo. But contrary to what she says the defense bar of B ez Figueroa implies, the money was not used to buy deputies so that these would introduce the re-election bill in Congress, but rather to support candidates in the congressional and municipal election. Mendez de Fondeur has also visited President Mej�a to report that of the RD$30-million loan, RD$9.2 million has been paid back. According to Diario Libre, the account "Cena pro Fondo" was closed on 18 May 2002, two days after the congressional and municipal elections took place. According to an El Caribe report, M�ndez said they plan to pay back the remainder by holding fund-raising activities. UNION FENOSA: To Transfer Electricity Companies To DR Government ---------------------------------------------------------------- UNION FENOSA has reached an agreement with the Government of the Dominican Republic to transfer its 50% stake in Edenorte and Edesur to the companies' co-owner, the State-owned Corporaci�n Dominicana de Empresas El�ctricas Estatales (CDEEE). The agreement includes cancellation of the loans and obligations of the distribution companies to UNION FENOSA and its subsidiaries as of 31 August 2003 and offsets a substantial part of the net investment. The transaction, due to be signed on 30 September next, will involve a cash payment in dollars equivalent to 13.3 million euros and the establishment in favour of UNION FENOSA's Dominican subsidiary, Distribuidora Dominicana de Electricidad (DIDOEL), of a 12-year usufruct on the distribution assets which will be leased to Edenorte and Edesur, with payments secured by accounts receivable of both companies which will permanently cover 115% of the monthly payments. The total amount of the transaction will be used firstly to pay off the distribution companies' debts to the Palamara and La Vega power plants, both owned by UNION FENOSA, amounting to 101 million euros. Then the loans from the Interamerican Development Bank (IDB) and other private financiers to Edenorte and Edesur, with sureties from UNION FENOSA, which amount to 170 million euros, will be cancelled. The remaining 100 million euros will be used to offset the net investment made by UNION FENOSA in the distribution companies up to the date of signature of the agreement. The operation involves a capital loss of 160 million euros, in line with the notice given to the Spanish National Securities Market Commission (CNMV) on 14 August last, and it does not alter the company's projection of net profit for this year. UNION FENOSA's transfer of its electricity distribution business in the Dominican Republic comes in the context of an economic, financial and energy crisis in that country in the last few years, aggravated by the collapse of the island's second-largest bank and the subsequent depreciation of the Dominican peso by over 100% in dollar terms in a period of one year. All these factors, particularly the impact of devaluation and the increase in the price of oil (the basic fuel for electricity generation), have directly impacted the electricity tariffs charged to customers, thus further aggravating the operating and financial difficulties of Edenorte, which was already affected by the shortfall in electricity production in the north of the country, highlighting the need for comprehensive action by the Government. In view of the operational links between Edenorte and Edesur, the Dominican Government and UNION FENOSA considered it advisable for the agreement to cover both companies. Under the agreement, UNION FENOSA ceases to distribute electricity in the Dominican Republic since it considers that the persisting macroeconomic and regulatory conditions in the energy sector involve a radical departure from the company's plans for electricity distribution in that country. In return, UNION FENOSA obtains a usufruct which will enable it to recover a sizeable part of the investment it made in Edenorte and Edesur, and it maintains its position in the electricity generating business in the Dominican Republic, where it owns the Palamara and La Vega plants (190 MW total installed capacity), which have been profitable from the outset. CONTACT: Shareholders Email: accionistas@unionfenosa.es Clients Email: clientes@unionfenosa.es Corp. Information Email: unionfenosa@unionfenosa.es =========== M E X I C O =========== AHMSA: Responds to Exchange's Request ------------------------------------- Mexican steelmaker Altos Hornos de Mexico (Ahmsa) wrote a letter to the local bourse informing it that the Company is still actively seeking debt-restructuring agreements with creditors that will lift its four-year suspension of payments order. The letter, according to Business News Americas, came in response to the Mexico City stock exchange's request for information on the steelmaker's strategy to resolve its financial situation. "Ahmsa's suspension of payments is still in force," the letter says, adding, "The current situation in the steel industry has prevented us from reaching an acceptable agreement with participants in this process." According to an earlier report by Business News Americas, the Company has been in a form of bankruptcy protection since May 1999, though it finalized a debt restructuring agreement earlier this year with Minera Carbonifera Rio Escondido (Micare). Ahmsa, which has installed capacity of 3Mt, said at the time it was working on a formula to submit to creditors to reach similar accords, but nothing new has since been announced. The steelmaker reported losses of MXN590 million in the first half of this year, 20% less compared to the losses reported in the same period of 2002. CONTACT: AHMSA Prolongacion B. Juarez s/n, Monclova , Coahuila 25770 Mexico http://www.AHMSA.com Phone: +52 86 33 81 72 Fax: +52 86 33 65 66 Contacts: Alonso Ancira Elizondo, CEO, Vice Chairman, Pres/CEO Jorge Ancira Elizondo, Chief Financial Officer Manuel Ancira Elizondo, Chief Operating Officer AHMSA: Antidumping Investigation Could "Take Years" --------------------------------------------------- Mexican steelmaker Ahmsa filed a complaint that spurred an investigation into alleged dumping of steel plates imported into Mexico from Russia, Ukraine and Romania. The complaint, published in Ahmsa's official gazette, the country's only producer of carbon steel plates claims that between January and October 2002 Romania and Russia increased product exports to Mexico by 134% and 187%, respectively, while those from Ukraine rose 502%. Mexican product prices fell 43% from US$422/t in October 2001 to US$242 by early 2002. The antidumping probe could take months or even years, Diario de Monterrey quoted Ahmsa spokesperson, Francisco Orduna, as saying. DESC: Sale of Division Will Not Affect Ratings Says S&P ------------------------------------------------------- Standard & Poor's Ratings Services said Thursday that Desc S.A. de C.V.'s (Desc, BB-/Watch Neg/--) announcement that it has signed a letter of intent with Henkel Group to sell the adhesive and waterproofing businesses of its consumer products division will have no impact on the company's rating or CreditWatch listing. The terms and conditions of the deal were not disclosed. Nevertheless, the announcement is considered a positive development, as it signals that Desc's plans to improve its liquidity and financial profile are moving along. Sales during 2002 in both businesses reached US$89.4 million, representing 4.5% of Desc's total revenues. The transaction has been approved by Mexico's Federal Antitrust Commission (Comisi�n Federal de Competencia), and Desc has indicated that the deal could close before year end and that proceeds will be used to strengthen its capital structure. ANALYSTS: Jose Coballasi, Mexico City (52) 55-5279-2014 Santiago Carniado, Mexico City (52) 55-5279-2013 Olaf Toelke, Frankfurt (49) 69-3 39 99-125 Andre Rashid, Frankfurt (49) 69-3 39 99-128 GRUPO IUSACELL: Noteholders Accelerate $150M of Defaulted Notes --------------------------------------------------------------- An informal committee of noteholders announced Thursday that it has accelerated US$150 million of Grupo Iusacell Celular S.A. de C.V. ("Iusacell") 10% Senior Secured Notes due 2004. Iusacell is a wholly-owned subsidiary of Grupo Iusacell, S.A. de C.V., which is listed on the Bolsa Mexicana de Valores and the New York Stock Exchange (BMV:CEL) (NYSE:CEL). Iusacell's continuing failure to make a scheduled US$7.5 million interest payment due under the 2004 Notes on July 15, 2003 led to the acceleration. Members of the informal committee, which is comprised of several institutional fund managers, as holders of US$77.0 million or 51.3% of the 2004 Notes, declared through notice given on Thursday to Iusacell management and Wachovia Bank N.A., trustee for the 2004 Notes, that the entire unpaid principal balance and all accrued but unpaid interest, including default interest, was immediately due and payable. Such an acceleration notice required no less than 25% of holders in order to be valid. Alan M. Feld, an attorney with Manatt, Phelps & Phillips, as spokesperson for the Committee, said, "The holders of the 2004 Notes are concerned by Iusacell's ongoing failure to present any plan to meet its obligations to its stakeholders. Furthermore, we understand that Iusacell has made debt service payments to certain other of its creditors while in default under the notes. Although it remains the goal of the Committee to establish a constructive dialogue which will lead to a fair outcome for all stakeholders, members felt these actions compelled them to begin to pursue other remedies to protect their interests." CONTACT: Alan M. Feld, Esq. Manatt, Phelps & Phillips, LLP 11355 W. Olympic Blvd. Los Angeles, CA 90064 Phone: +1-310-312-4153 E-mail: afeld@manatt.com Mr. Arturo Perez Pena Canales y Socios Batallon de San Patricio 111 Torre ING Commercial America-Piso 24 Col. Valle Oriente Garza Garcia, N.L. 66269 Mexico Phone: +52 818 368-0190 E-mail: aperez@canalesysocios.com.mx VITRO: Asset Sale Announcement Will Not Affect Rating ----------------------------------------------------- Standard & Poor's Ratings Services said Thursday that the announcement by Vitro S.A. de C.V. (Vitro, BB-/Negative/--) that it has completed the sale of Envases Cuatitlan S.A. de C.V. (Envases Cuatitlan) to Phoenix Capital Ltd. for approximately $18 million will have no effect on Vitro's rating and outlook. Although the transaction will not have a material impact on Vitro's financial profile, Standard & Poor's considers it a positive development, as Vitro's asset sale program has moved forward. In 2002, Envases Cuatitlan contributed about 1% of Vitro's consolidated EBITDA and is dedicated to the manufacturing and sale of plastic containers. ANALYSTS: Jose Coballasi, Mexico City (52) 55-5279-2014 Santiago Carniado, Mexico City (52) 55-5279-2013 ===================== P U E R T O R I C O ===================== CENTENNIAL COMMUNICATIONS: Announces Common Stock Public Offering ----------------------------------------------------------------- Centennial Communications Corp. ("Centennial" or the "Company") (Nasdaq: CYCL) announced Thursday that it intends to offer for sale 30 million shares of common stock in a public offering, not including shares to be sold pursuant to an over-allotment option to be granted to the underwriters. The common stock will be offered under Centennial's existing shelf registration statement. Centennial intends to use all of the net proceeds from the offering to repay its unsecured subordinated notes due 2009 (the "Mezzanine Debt"), all of which may not get repaid. The Mezzanine Debt is currently accruing pay-in-kind interest at a rate of 13%. Affiliates of The Blackstone Group will grant the underwriters in connection with the offering an option to purchase additional shares of Centennial common stock to cover over-allotments, if any, up to an additional 15% of the shares sold by the Company in the offering. Currently, affiliates of The Blackstone Group collectively own approximately 29% of Centennial's outstanding common stock. Lehman Brothers Inc. and Morgan Stanley & Co. Incorporated are acting as joint book-running managers for the offering. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities referred to herein in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state. A prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended may be obtained from Lehman Brothers Inc. at c/o ADP Prospectus Department, 1155 Long Island Avenue, Edgewood, New York, 11717, or by calling 631-254-7106, or from Morgan Stanley & Co. Incorporated at c/o Prospectus Department, 1585 Broadway New York, New York 10036. Centennial is one of the largest independent wireless telecommunications service providers in the United States and the Caribbean with approximately 17.3 million Net Pops and approximately 939,500 wireless subscribers. Centennial's U.S. operations have approximately 6.1 million Net Pops in small cities and rural areas. Centennial's Caribbean integrated communications operation owns and operates wireless licenses for approximately 11.2 million Net Pops in Puerto Rico, the Dominican Republic and the U.S. Virgin Islands, and provides voice, data, video and Internet services on broadband networks in the region. Welsh, Carson Anderson & Stowe and an affiliate of the Blackstone Group are controlling shareholders of Centennial. For more information regarding Centennial, please visit our websites at www.centennialwireless.com, www.centennialpr.com or www.centennialrd.com. CONTACT: CENTENNIAL COMMUNICATIONS CORP. Thomas J. Fitzpatrick 732-556-2220 CENTENNIAL COMMUNICATIONS: Introduces New Director James Pellow --------------------------------------------------------------- Centennial Communications Corp. ("Centennial" or the "Company") (NASDAQ: CYCL) announced Thursday that Carmen A. Culpeper has resigned from the Company's board of directors. Ms. Culpeper, a former president of the Puerto Rico Telephone Company and Secretary of Treasury of Puerto Rico, will now serve as a consultant to the Company and assist the Company in its marketing and regulatory affairs in Puerto Rico. "On behalf of the management team, I would like to thank Carmen for her many contributions to the Centennial board over the past three years, particularly with respect to her service on our audit committee and her extensive knowledge of the Puerto Rico market," said Michael J. Small, chief executive officer of Centennial. "Given new rules applicable to audit committee members, Carmen was effectively prohibited from assisting the Company in its regulatory affairs. Her new role as a consultant to the Company will allow us to fully leverage Carmen's extensive knowledge of the Puerto Rico market." James P. Pellow has been named to serve the remainder of Ms. Culpeper's term and will join the Company's audit committee. Mr. Pellow has served as executive vice president and treasurer of St. John's University since 1999 and has served in other senior capacities with St. Johns University since 1991. Mr. Pellow has also worked at Coopers & Lybrand and at Chapdelaine & Co., a New York City municipal bond brokerage firm. Mr. Pellow is a certified public accountant and received a B.B.A and an M.B.A. from Niagara University. "We are pleased to welcome Jim Pellow to the Centennial board," said Mr. Small. "His strong finance and accounting background will serve Centennial well as we continue to grow our businesses." ============= U R U G U A Y ============= BANCO DE CREDITO: Moon Group Pays Part of $72M Debt --------------------------------------------------- Uruguayan Central Bank sources revealed that the South Korean Moon group paid 40% of a US$72-million debt related to local bank Banco de Credito, which was intervened last year due to the country's economic and financial crisis, relates Business News Americas. The Moon group owned a minority stake in the defunct Uruguayan bank. Following Credito's intervention, the group sought to acquire the bank but negotiations with the government failed and the bank went into liquidation. The report recalls that the group had agreed to pay its US$72 million liabilities with Uruguayan government bonds. Sources have it that an international bank, which was hired by the Moon group, informed the Central Bank it has received bonds worth US$28.8 million, which it will transfer to the Uruguayan government. The bonds the Moon group paid mature in 2033 and the bonds it still owes mature in 2017, says the report. ================= V E N E Z U E L A ================= PDVSA: Italian Government Anxious About Bitor Liquidation --------------------------------------------------------- Venezuelan state oil company PDVSA's elimination of Bitor (Bitumenes del Orinoco) and taking over the Orimulsion producer by the Company's Eastern division has spurred the Italian government's apprehension. According to a report released by South American Business Information, the Italian government has sent a mission to Venezuela to negotiate with the Ministry of Mines & Energy the creation of a joint venture with capital of US$330 million that would secure Bitor's operations. Bitor was created to produce and distribute the orimulsion fuel (bitumen), developed for thermal power plants. Three plants adjusted to use orimulsion are being operated in Italy, and there is a natural concern on the continuation of the fuel supply with imports reaching an average of US$150 million per year. Just recently, PDVSA's board decided to liquidate Bitor as part of PDVSA's large restructuring program aimed at slashing costs and improving productivity. With Bitor's liquidation, the bitumen business will be passed on to one of its divisions, PDVSA Oriente. Market observers consider that the end of Bitor may jeopardize the strategic alliances program of PDVSA to develop the hydrocarbon reserves of the Faja del Orinoco. *********** 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 * * *