/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/030922.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 22, 2003, Vol. 4, Issue 187 Headlines A R G E N T I N A ALIANZA ESTRATEGICA: Credit Check Ends Today ANNUIT COEPTIS: Court Orders Bankruptcy BANCO HIPOTECARIO: Extends Debt Exchange Offer to Sept. 29 CABLEVISION: May Start Restructuring, Bankruptcy or Dissolution CABOI: Creditor's Request For Bankruptcy Approved CLISA: Standard & Poor's Assigns `raB-' To US$120M of Bonds CORPORACION DE PROFESIONALES: Enters Bankruptcy CORREO ARGENTINO: Makes Partial Payment To Government CRISOMAR: Seeks Court's Permission To Undergo Reorganization CTECSAC: Credit Check Ends Today DISEGA: Individual Reports Due GATIGOM: Court Orders Bankruptcy LAFSA: To Start Flying October 3 LOGISTICA EL CONDOR: Credit Check Ends Today NEW NOW: Deadline For Credit Verification Expires Today OPTILINE INTERNATIONAL: Court Approves Request For Bankruptcy REM: Enters Bankruptcy On Court Order ROSARIO PRODUCTOS: Receiver Ends Claims Verifications ROSBASCO MADERAS: Requests Reorganization SOMECAL: Reorganization Ends in Bankruptcy TECNO MEDIC: Enters Bankruptcy on Court Order TELECOM ARGENTINA: To Add More Workers B E R M U D A GLOBAL CROSSING: Gets CFIUS Approval for ST Telemedia Investment LORAL SPACE: Subsidiary Reports Anomaly On Telstar 4 TYCO INTERNATIONAL: Declares Regular Quarterly Dividend B R A Z I L EMBRATEL/INTELIG: Ministry Demands Action Against Three Companies MRS LOGISTICA: Must Restructure Ownership Within Six Months TELEMAR: Shares Go Up Amid Stake Sale Rumors C H I L E PAREDES: To Sell Hotel Worth $4M D O M I N I C A N R E P U B L I C TRICOM: Responds to Unusual Trading Activity UNION FENOSA: ANJE Questions Legality of Buyback Contract E C U A D O R * Outlook on Ecuador Revised to Stable; Ratings Affirmed P A N A M A CSS: CONATO To Vote Against Final Budget Proposal For 2004 - - - - - - - - ================= A R G E N T I N A ================= ALIANZA ESTRATEGICA: Credit Check Ends Today -------------------------------------------- The credit verification process for the reorganization of Buenos Aires' Alianza Estrategica Argentina S.A. ends today, September 22, according to an earlier report by the Troubled Company Reporter - Latin America. The receiver, Mr. Jorge Feito, will now prepare the individual reports, which the court requires to be filed on September 22 this year. The receiver is also required to prepare a general report and present it to the court on December 15. Buenos Aires Court No. 2, which ordered the Company's bankruptcy, set May 21, 2004 as the date for the informative audience. Clerk No. 4 aids the court on the case. CONTACT: Jorge Feito San Martin 662 Buenos Aires ANNUIT COEPTIS: Court Orders Bankruptcy --------------------------------------- Dr. Fernandez, insolvency judge at Buenos Aires' Court No. 19, ordered the bankruptcy of local real estate company Annuit Coeptis S.A., relates La Nacion. The ruling came after a creditor sought for the Company's bankruptcy for nonpayment of debt. Assisted by Dr. Johnson, Clerk No. 38, the judge assigned Mr. Andres Landro as the Company's receiver, who will verify creditors' claims until October 31 this year. CONTACT: Annuit Coeptis S.A. 8th Floor, Room A Vicente Lopez 1931 Buenos Aires Andres Landro 3rd Floor, Room A Raul Scalabrini Ortiz 215 Buenos Aires BANCO HIPOTECARIO: Extends Debt Exchange Offer to Sept. 29 ---------------------------------------------------------- Argentine mortgage bank Banco Hipotecario decided to extend its debt exchange offer until September 29, 2003. The current exchange offer presents various alternatives to bondholders. By means of an initial "Par-for-Par offer," the bank proposes to exchange existing notes in default for long-term notes, which will be denominated in the same currency as the notes tendered by investors. An early tender payment is available for investors that accept the offer before a certain deadline. Investors accepting this Par-for-Par offer may simultaneously decide to exchange the new securities for cash or guaranteed notes in the discount offers. In every case, the new terms proposed imply a net present value reduction with respect to original conditions. The proposed exchange offer is conditioned to the completion of a concurrent bank debt restructuring under terms similar to those proposed for the notes. At least 90% participation is required for both the notes' exchange and the bank debt restructuring. BH is a public company. Prior to the Argentine financial crisis, the bank was the leader in the individual residential mortgage loans segment, with a total portfolio of more than US$ 4 billion, and a market share of around 40%. CABLEVISION: May Start Restructuring, Bankruptcy or Dissolution --------------------------------------------------------------- While it is trying to renegotiate US$ 800 million in liabilities, Argentine cable TV operator CableVision -a unit of Hicks, Muse, Tate & Furst and Liberty Media- warned that it could apply for the opening of a formal restructuring proceeding, file for bankruptcy or dissolve the company in case its debt restructuring proposal fails. Argentina's major pay TV operator -with 1.19 million subscribers- presented a debt restructuring proposal that combines an invitation to subscribe an out-of-court agreement (APE) with the issue of new bonds and the cession of up to 30% of its shares. In a filing to the local Securities Exchange Commission, or CNV, CableVision informed about its debt-restructuring proposal and raised some concerns. The firm said, as a consequence of the deficit in our net assets, we may be forced to initiate a dissolution of the company in terms of the Argentine Corporation Law. The Executive Power has suspended the application of this disposition of the law until December 10, 2003. In case our net assets continue to be negative by that date (if the suspension is not extended), we would be obliged to initiate the dissolution process unless our shareholders make such a capital injection that the Company's net assets turn positive. The paper also reminds that a report issued by a team of accountants and included in CableVision's 2002 financial statements raised doubts about the chances of the firm to continue as a "going concern. The firm goes on to say that even if the APE is subscribed with success, the situation of the firm might not improve due to the unstable and uncertain economic and political context. The issues that have severely affected our financial situation and our liquidity can keep making them worse. Since these issues are out of our control and exceed the scope of a restructuring, even if our restructuring process concluded successfully, it may not lead to lasting improvements to our financial situation and liquidity, the paper adds. CableVision also mentioned some civil and penal actions against the firm in the US and Argentina. Our aim is to impugn these actions. However, this could mean the management would have to dedicate a significant amount of time and attention, as well financial resources. We could even be subject to a judicial order that determines our company must refrain from carrying out the restructuring as a result of a legal action and our reputation may be damaged by the interpretations of the pleadings in the cases, the Company warned. CABOI: Creditor's Request For Bankruptcy Approved ------------------------------------------------- Argentine construction company, Compa¤¡a Argentino Brasilera de Obras de Infraestructura SA (Caboi S.A.) entered bankruptcy after the court approved a creditor's petition for the process. Local newspaper La Nacion reports that the Company's creditor Socoril S.A. sought for the Caboi's bankruptcy at the Buenos Aires' Court No. 22, which is under Dr. Braga. The Company failed to meet its obligation on some ARS65,985 of debt to Socoril. Working with Dr. Mata, Clerk No. 43, the insolvency judge assigned Mr. Carlos Bavio as receiver for the process. Creditors must present their proofs of claim for verification before October 20. CONTACT: Caboi SA 1st Floor Carlos Pellegrini 767 Buenos Aires Carlos Bavio 1st Floor, Rooms 2&3 Ave. de Mayo 1324 Buenos Aires CLISA: Standard & Poor's Assigns `raB-' To US$120M of Bonds ----------------------------------------------------------- The Argentine arm of Standard & Poor's International Ratings, Ltd. assigned a `raB-' rating to corporate bonds issued by local company CLISA. A report from the country's securities regulator, Comision Nacional Valores (CNV), indicates that the rating was based on the Company's finances as of June 20 this year. The rating affects US$120 million of bonds, which the CNV described as "Obligaciones Negociables con garant¡a (AGO 21-01- 03, AD 23-01-03)". These come due on June 1, 2012 and are classified under `Simple Issue'. The ratings agency said that an obligation rated `raB-' denotes somewhat weak protection parameters relative to other obligations in the country. The obligor currently has the capacity to meet its financial commitments on the obligation, but adverse business, financial or economic conditions would likely impair the capacity or willingness of the obligor to pay its dues on the debt. The `-' sign denotes negative implications. CORPORACION DE PROFESIONALES: Enters Bankruptcy ----------------------------------------------- Corporaci¢n de Profesionales Asociados SA, based in Buenos Aires, entered bankruptcy following an order from Dr. Villanueva, the city's insolvency judge at Court No. 23. The Company provides medical services in the city. Dr. Villanueva approved a petition for bankruptcy filed by the Company's creditor, Alberto Begutz, relates Argentine newspaper La Nacion, adding that Dr. Timpanelli, Clerk No. 46, aids the court on the case. The appointed receiver for the process is Ms. Laura Marletta, an accountant from Buenos Aires. She is instructed to verify creditors' claims until November 24 this year. She is also required to prepare the individual and general reports on the process, but the source did not reveal whether the court has set the deadlines for the submission of these reports. CONTACT: Corporacion de Profesionales Asociados S.A. Vidal 2048 Buenos Aires Laura Marletta 7th Floor, Room A San Jose de Calasanz 530 Buenos Aires CORREO ARGENTINO: Makes Partial Payment To Government ----------------------------------------------------- Argentina's concessionaire of postal services, Correo Argentino, has paid ARS26 million of the fees it has owed the government since 1999. Before this payment, the Company owed ARS497.2 million. ARS296 million is included in its formal restructuring proceeding. In a release sent to the Cabinet Chief, the Ministry of Planning, the General Controlling Bureau (Sigen) and the IT Commission of the Lower House, Correo Argentino said that with the ARS26 million it now considers the four semi-annual payments of ARS51.6 million it did not pay after its formal restructuring proceedings paid in full. The statement has to do with a presentation the Company made before the government in December 2002, in which it argued that, since the State had supposedly not fulfilled the terms of the concession contract, the semi-annual fee paid by the firm should be reduced to a 1 to 3 percentage of its billing. Meanwhile, official sources said the decision to cancel Correo Argentinos concession has already been made and it will be applied when president Nestor Kirchner considers it appropriate. Correo Argentino only fulfilled the concession contract during 1997 and 1998. Then it started to claim payment for services rendered to a series of State divisions and suspended the fee payments. The Company also claims it is owed ARS1.072 in damages. According to the firm, 40% of this sum is related to unfavorable labor conditions imposed to the Company, in comparison to its contracts with those of private operators. CRISOMAR: Seeks Court's Permission To Undergo Reorganization ------------------------------------------------------------ Crisomar S.R.L., which is based in Buenos Aires is seeking court permission to undergo reorganization. According to a report by local news source Infobae, the Company has filed a motion for "Concurso Preventivo" to the city's Court No. 17. The report adds that the Company sought for reorganization voluntarily, as the motion was filed "Propia Instancia". However, the source did not mention whether the court is likely to approve the petition or not. CONTACT: Crisomar S.R.L. Esmeralda 1385 Buenos Aires CTECSAC: Credit Check Ends Today -------------------------------- The credit verification process for the bankruptcy of Buenos Aires-based Compania de Transporte El Colorado S.A.C. ends today, September 22, 2003. The court-appointed receiver, Ms. Mirta Addario, will now prepare the individual reports, which must be passed to the court on November 6. The receiver will prepare a general report after the individual reports are processed at court. This report must be presented to the court on December 23. An earlier report by the Troubled Company Reporter - Latin America indicated that Buenos Aires Court No. 2 holds jurisdiction over the case. CONTACT: Mirta Addario Moreno 442 Buenos Aires DISEGA: Individual Reports Due ------------------------------ The individual reports for the bankruptcy of Disega S.R.L. are due to Buenos Aires Court No. 19 today. An earlier report by the Troubled Company Reporter - Latin America indicated that local accountant Jose Luis Cueli takes charge as the Company's receiver. The credit verification process ended last August 11, which gave the signal for the receiver to start preparing the individual reports. The receiver is also required to prepare a general report on the process and submit it to the court November 3. CONTACT: Disega S.R.L. Scalabrini Ortiz 80 Buenos Aires Jose Luis Cueli Junin 55 Buenos Aires GATIGOM: Court Orders Bankruptcy -------------------------------- Buenos Aires Court No. 14 orders the bankruptcy of local company Gatigom S.A., reports Infobae. Working with Clerk No. 27, the court assigned Mr.Angel Vello Vazquez as the Company's receiver. The credit verification process will be done "por via incidental", says the report. The court orders the receiver to submit the individual reports on February 10 next year. The general report must follow on March 23. CONTACT: Gatigom S.A. Viamonte 1592 Buenos Aires LAFSA: To Start Flying October 3 -------------------------------- Lafsa, Argentina's new state-owned airline, will start flying next October 3, partnered with local carrier Southern Winds (SW). Initially, the Company will hire 350 former Lapa and Dinar employees, but the goal is to incorporate a total of 850 employees that worked for these bankrupt airlines. The first flights will depart from Buenos Aires and arrive in Tucuman and Rio Gallegos (with stopover in Comodoro Rivadavia). Two Boeing 737-200 will be used to serve these routes. The accord also contemplates the incorporation of a third plane to fly to Calafate and Resistencia. Once Lafsa has started operations, the 180 days for the second stage of the process, the privatization, start to run. LanChile, Air Europa, Mexicana de Aviacion and TAM are interested, said Ricardo Cirielli, Air Transport Under-secretary. LOGISTICA EL CONDOR: Credit Check Ends Today -------------------------------------------- The bankruptcy of Argentine company Logistica El Condor S.A. proceeds with the receiver preparing the individual reports. An earlier report by the Troubled Company Reporter - Latin America indicated that the deadline for the credit verification process expires today. Buenos Aires Court No. 6 ordered the receiver, Mr. Luis Rolando Benedossi to submit the individual reports on November 3 this year. The general report must be filed on December 16, the report added. CONTACT: Luis Rolando Benedossi Maipu 812 Buenos Aires NEW NOW: Deadline For Credit Verification Expires Today ------------------------------------------------------- The deadline for the verification process for the bankruptcy of New Now S.R.L. expires today. Buenos Aires Court No. 17 ordered the Company's bankruptcy, according to an earlier report by the Troubled Company Reporter - Latin America. Assisted by Clerk No. 34, the court ordered the receiver, Mr. Juan Roque Treppo, to prepare the individual reports and file it on November 3. The general report must be submitted to the court on December 6. CONTACT: Juan Roque Treppo Sarmiento 1183 Buenos Aires OPTILINE INTERNATIONAL: Court Approves Request For Bankruptcy ------------------------------------------------------------- Dr. Vassallo, insolvency judge at Buenos Aires' Court No. 5 approved a petition for the bankruptcy of local real estate company Optiline International S.A., reports Argentine daily La Nacion. Assisted by Dr. Perez Casado, the city's clerk No. 9, Dr. Vassallo assigned Ms. Viviana Palopoli, a local accountant as the receiver for the bankruptcy process. Creditors are advised the present their proofs of claim to the receiver for verification not later than November 19 this year. The receiver is also required to prepare individual and general reports on the process, but the source did not mention whether the court has set the deadlines for the filing of these reports. CONTACT: Optiline International S.A. Ave. Corrientes 1780 Buenos Aires Viviana Palopoli 5th Floor, Room B Ave. Corrientes 859 Buenos Aires REM: Enters Bankruptcy On Court Order ------------------------------------- Rem S.A. enters bankruptcy on orders from Buenos Aires Court No. 13. Argentine news portal Infobae relates that local accountant Jorge del Hoyo is assigned as the Company's receiver. Creditors must present their claims before the October 31 deadline expires. The receiver is also required to prepare individual and general reports on the process, but the source did not mention whether the court has set the deadlines for these reports. CONTACT: Rem S.A. Martinez Castro 760 Buenos Aires Jorge del Hoyo Ave. Julio A Roca 610 Buenos Aires ROSARIO PRODUCTOS: Receiver Ends Claims Verifications ----------------------------------------------------- Ms. Noemi Zulema Vivares, the receiver for Rosario Productos Quimicos S.R.L., closes the credit verification process for the Company's bankruptcy. An earlier report by the Troubled Company Reporter - Latin America revealed that the deadline for credit authentication expires today. As ordered by the court, the receiver will now prepare the individual reports. The receiver is also required to prepare a general report on the process. However, local sources did not reveal whether Buenos Aires Court No. 1, which handles the Company's case, has set the deadlines for the filing of these reports. CONTACT: Noemi Zulema Vivares Ave. Corrientes 2626 Buenos Aires ROSBASCO MADERAS: Requests Reorganization ----------------------------------------- Argentine wood company Rosbasco Maderas S.A. is seeking court permission to undergo reorganization. Local newspaper La Nacion relates that the Company has presented its motion for "Concurso Preventivo" to Buenos Aires' Court No. 7, which is under Dr. Gutierrez Cabello. Dr. Giardinieri, the city's Clerk No. 14 works with the court on the case. However, the report did not mention whether the motion is likely to merit court approval or not. CONTACT: Rosbasco Maderas S.A. Ave. del Libertador 7904 Buenos Aires SOMECAL: Reorganization Ends in Bankruptcy ------------------------------------------ Somecal S.A., which was undergoing reorganization, will now go through the bankruptcy process. Argentine news source Infobae relates that the Company is placed in the hands of Mr. Ruben Toytoyndjian, the court-appointed receiver. Buenos Aires Court NO. 14, which holds jurisdiction over the case, ordered the verification to be done "por via incidental". The receiver will also prepare the individual reports on the process after the credit verification process is completed. These reports must be presented to the court on November 25 this year. The receiver will also file a general report on February 10, 2004. CONTACT: Ruben Toytoyndjian Ave. Roque Saenz Pena 1219 Buenos Aires TECNO MEDIC: Enters Bankruptcy on Court Order --------------------------------------------- Tecno Medic S.A., which is based in Buenos Aires, enters bankruptcy on orders from the city's Court No. 21. Clerk No. 41 aids the court on the case. A report by local news portal Infobae indicates that the receiver, Ms. Silvana Cirigliano will verify creditors' claims until April 3 next year. The court also requires the receiver to prepare individual and general reports on the process. However, the source did not mention whether the court has set the deadlines for the filing of these reports. CONTACT: Tecno Medic S.A. Alsina 1486 Buenos Aires Silvana Cirigliano Viamonte 1348 Buenos Aires TELECOM ARGENTINA: To Add More Workers -------------------------------------- Following the exit of France Telecom from Argentine telco Telecom Argentina, the latter will incorporate into its employee base 1,400 customer service representatives currently working at outsourced suppliers, reports Business News Americas. Telecom chief executive Carlos Felices revealed that about 57% of the representatives correspond to the provinces and the remainder to Buenos Aires. The employees will be incorporated on October 1 and will give the telco 14,900 employees in total. CONTACT: TELECOM ARGENTINA STET - FRANCE TELECOM SA(TELECOM) Alicia Moreau de Justo 50, 10th Floor Capital Federal (1107) Repoblica Argentina Phone: +54 11 4968 4000 Home Page: http://www.telecom.com.ar Contacts: Alberto J. Ricciardi, Chief Financial Officer Elvira Lazzati, Finance Director Pedro Insussarry, Investor Relations Manager Phone: (5411) 4968-3626/3627 Fax: (5411) 4313-5842/3109 Email: inversores@intersrv.telecom.com.ar ============= B E R M U D A ============= GLOBAL CROSSING: Gets CFIUS Approval for ST Telemedia Investment ---------------------------------------------------------------- Global Crossing announced Friday that it has received approval from the Committee for Foreign Investment in the United States (CFIUS) for ST Telemedia's proposed investment in Global Crossing. "We appreciate the hard work of the CFIUS agencies in their review of this transaction," said John Legere, Global Crossing's CEO. "We strongly believe that ST Telemedia's investment will further strengthen Global Crossing's competitive position as a dynamic competitor in the telecommunications industry with a unique, next-generation IP network." Over the past two years, Global Crossing has accomplished a remarkable turnaround by reducing operating expenses more than 50 percent, conserving cash, and improving both customer satisfaction and network operations. Additionally, Global Crossing's customer base has remained stable, while more than 2,000 new and renewal contracts were signed in 2003. Legere continued: "With today's approval and the achievements of Global Crossing's thousands of employees, we've set the stage to become a dominant force in the next phase of telecommunications' evolution." ABOUT GLOBAL CROSSING Global Crossing provides telecommunications solutions over the world's first integrated global IP-based network, which reaches 27 countries and more than 200 major cities around the globe. Global Crossing serves many of the world's largest corporations, providing a full range of managed data and voice products and services. On January 28, 2002, Global Crossing Ltd. and certain of its subsidiaries (excluding Asia Global Crossing and its subsidiaries) commenced Chapter 11 cases in the United States Bankruptcy Court for the Southern District of New York (Bankruptcy Court) and coordinated proceedings in the Supreme Court of Bermuda (Bermuda Court). On the same date, the Bermuda Court granted an order appointing joint provisional liquidators with the power to oversee the continuation and reorganization of the Bermuda-incorporated companies' businesses under the control of their boards of directors and under the supervision of the Bankruptcy Court and the Bermuda Court. Additional Global Crossing subsidiaries commenced Chapter 11 cases on April 23, August 4 and August 30, 2002, with the Bermuda incorporated subsidiaries filing coordinated insolvency proceedings in the Bermuda Court. The administration of all the cases filed subsequent to Global Crossing's initial filing on January 28, 2002 has been consolidated with that of the cases commenced on January 28, 2002. Global Crossing's Plan of Reorganization, which was confirmed by the Bankruptcy Court on December 26, 2002, does not include a capital structure in which existing common or preferred equity will retain any value. On November 18, 2002, Asia Global Crossing Ltd., a majority-owned subsidiary of Global Crossing, and its subsidiary, Asia Global Crossing Development Co., commenced Chapter 11 cases in the United States Bankruptcy Court for the Southern District of New York and coordinated proceedings in the Supreme Court of Bermuda, both of which are separate from the cases of Global Crossing. Asia Global Crossing has announced that no recovery is expected for Asia Global Crossing's shareholders. Asia Netcom, a company organized by China Netcom Corporation (Hong Kong) on behalf of a consortium of investors, has acquired substantially all of Asia Global Crossing's operating subsidiaries except Pacific Crossing Ltd., a majority-owned subsidiary of Asia Global Crossing that filed separate bankruptcy proceedings on July 19, 2002. Global Crossing no longer has control of or effective ownership in any of the assets formerly operated by Asia Global Crossing. Please visit www.globalcrossing.com for more information about Global Crossing. CONTACT: GLOBAL CROSSING Press Contacts Becky Yeamans + 1 973-937-0155 PR@globalcrossing.com Tisha Kresler + 1 973-937-0146 PR@globalcrossing.com Kendra Langlie Latin America + 1 305-808-5912 LatAmPR@globalcrossing.com Mish Desmidt Europe + 44 (0) 7771-668438 EuropePR@globalcrossing.com Analysts/Investors Contact Ken Simril + 1 310-385-3838 investors@globalcrossing.com LORAL SPACE: Subsidiary Reports Anomaly On Telstar 4 ---------------------------------------------------- Loral Skynet, a subsidiary of Loral Space & Communications (OTC BB: LRLSQ), said Friday that its Telstar 4 satellite experienced a short circuit of its primary power bus Friday at 8:56 am EDT, causing the satellite to cease operations. Loral Skynet immediately made capacity available to most Telstar 4 customers, many of whom have already had their services restored on Loral's Telstar 5 and Telstar 6 satellites. Loral Skynet and Lockheed Martin, the manufacturer of the satellite, are working to determine the cause of the problem and to restore service on the satellite, if possible. The satellite is insured for $141 million. Telstar 8, currently under construction at Space Systems/Loral, will replace Telstar 4, as planned, at 89 degrees West in mid- 2004. Telstar 4 coverage includes the continental U.S., Alaska, Hawaii, Puerto Rico, U.S. Virgin Islands, and southern Canada. Telstar 4 was launched in September 1995. Loral Space & Communications is a satellite communications company. It owns and operates a global fleet of telecommunications satellites used by television and cable networks to broadcast video entertainment programming, and by communication service providers, resellers, corporate and government customers for broadband data transmission, Internet services and other value-added communications services. Loral also is a world-class leader in the design and manufacture of satellites and satellite systems for commercial and government applications including direct-to-home television, broadband communications, wireless telephony, weather monitoring and air traffic management. For more information, visit Loral's web site at www.loral.com. This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, Loral Space & Communications Ltd. or its representatives have made or may make forward-looking statements, orally or in writing, which may be included in, but are not limited to, various filings made by the company with the Securities and Exchange Commission, press releases or oral statements made with the approval of an authorized executive officer of the company. Actual results could differ materially from those projected or suggested in any forward-looking statements as a result of a wide variety of factors and conditions. These factors include those related to the filing, on July 15, 2003 by Loral and certain of its subsidiaries, of voluntary petitions for reorganization under Chapter 11 of Title 11 of the United States Code in the United States District Court for the Southern District of New York and parallel insolvency proceedings in the Supreme Court of Bermuda in which certain partners of KPMG were appointed as joint provisional liquidators. Additional factors and conditions are also described in the section of the company's annual report on Form 10-K for the fiscal year ended December 31, 2002, entitled "Certain Factors That May Affect Future Results," and the company's other filings with the Securities and Exchange Commission. The reader is specifically referred to these documents. CONTACT: Jeanette Clonan John McCarthy (212) 697-1105 TYCO INTERNATIONAL: Declares Regular Quarterly Dividend ------------------------------------------------------- The Board of Directors of Tyco International Ltd. (NYSE-TYC, LSE- TYI, BSX-TYC) has declared a regular quarterly cash dividend of one and one quarter cents per common share. The dividend is payable on November 1, 2003 to shareholders of record on October 1, 2003. ABOUT TYCO INTERNATIONAL LTD. Tyco International Ltd. is a diversified manufacturing and service company. Tyco is the world's largest manufacturer and servicer of electrical and electronic components; the world's largest designer, manufacturer, installer and servicer of undersea telecommunications systems; the world's largest manufacturer, installer and provider of fire protection systems and electronic security services; and the world's largest manufacturer of specialty valves. Tyco also holds strong leadership positions in disposable medical products, plastics and adhesives. Tyco operates in more than 100 countries and had fiscal 2002 revenues from continuing operations of approximately $36 billion. CONTACTS: Media: Gary Holmes, 609-720-4387 Investor Relations: Ed Arditte, 609-720-4621 John Roselli, 609-720-4624 =========== B R A Z I L =========== EMBRATEL/INTELIG: Ministry Demands Action Against Three Companies ----------------------------------------------------------------- Brazil's Finance Ministry wants anti-trust regulators to take action against Telefonica SA's local unit, Tele Norte Leste Participacoes SA and Brasil Telecom Participacoes SA, says Bloomberg. This, after the ministry concluded that the charges brought forth by long distance operators Embratel Participacoes SA and Intelig Telecomunicacoes Ltda. are substantiated." Both Embratel and Intelig have complained that the three companies are charging "artificially high prices" to connect long-distance phone calls. Embratel and Intelig have tried for more than a year to force local operators to reduce charges to connect long-distance calls to their local networks in a bid to keep their share of the market for national and international calls. Regulators, according to the report, have authority to impose fines, force the companies to charge lower fees or take other action. MRS LOGISTICA: Must Restructure Ownership Within Six Months ----------------------------------------------------------- Brazil's transport ministry revealed that the national land transport regulator ANTT has given rail concessionaire MRS Logistica six months to restructure its shareholders' composition in order to comply with a special contractual clause, relates Business News Americas. Current MRS shareholders steelmaker CSN owns 32.2% of the Company, Mineracoes Brasileiras Reunidas 32.7%, iron ore miner Mineracao with 10.4%, steelmaker Usiminas with 10.2%, and others with 14.5%. This ownership structure violates the clause that states no one shareholder may own directly or indirectly more than 20% of the concessionaire. The railroad concessionaire operates the 1,700km southeast network known as Malha Sudeste through the states of Minas Gerais, Rio de Janeiro and Sao Paulo, moving 74.4Mt of cargo in 2002. It expects to handle 85Mt this year. CONTACT: MRS LOGISTICA Praia de Botafogo, 228/1201-E Rio de Janeiro - RJ, 22250-906 - Brazil Tel: 021-2559-4600 Fax: 021-2552-2635 E-mail: daf@mrs.com.br Home page: www.mrs.com.br Contacts: Eduardo Cassinelli - Treasurer Marco Andr, Guimaraes - Financial Manager Maria Locia Silveira - Financial Analyst TELEMAR: Shares Go Up Amid Stake Sale Rumors -------------------------------------------- Widespread speculation that one of the companies controlled by Mexican billionaire Carlos Slim is eyeing for a stake in Tele Norte Leste Participacoes SA, Brazil's biggest telephone company, pushed the latter's shares to a 30-month high in Sao Paolo on Thursday. According to a Bloomberg report, Telemar, as the Brazilian telephone company is known, saw its preferred shares climb BRL2.30, or 5.6%, to BRL43.60, the largest one-day gain since October. Lucio Graccho, who helps manage about US$378 million in stock at HSBC Asset Management in Sao Paulo, cited rumors that Slim's Telefonos de Mexico SA (Telmex) may buy a stake. On the other hand, Regis Abreu, who helps manage US$380 million at Mercatto Gestao de Recursos Ltda. in Rio de Janeiro, said Slim's wireless company, America Movil SA, may be interested. America Movil denied the speculation, spokeswoman Patricia Ramirez said. Telmex spokeswoman Conception Rivera and a spokeswoman at Telemar, who declined to be identified, said their companies don't comment on market speculation. Slim has been rumored to be interested in the Brazilian company before, though this is the first time the speculation has had such an affect on the shares, investors said. ========= C H I L E ========= PAREDES: To Sell Hotel Worth $4M -------------------------------- Chilean group Paredes has decided to sell the Lancaster three- star hotel, located in the city of Buenos Aires, Argentina. The property is worth US$4 million. The hotel is carrying out a formal restructuring proceeding started May 2001 due to a US$2.7 million debt to the state-owned bank Banco de la Provincia de Buenos Aires. It also accrues US$400,000 in debts to suppliers. The Company is renegotiating the bank debt and, according to sources close to the negotiations, aims to reduce it to US$1 million and repay it in six years. Deloitte & Touche represents Paredes in the debt talks and is also in charge of selling the hotel. Paredes, which operated in Argentina through Metalpar -a holding specialized in the making of buses- entered the local hotel business in June 1998, when it acquired a majority stake in Lancaster. A few months later, Paredes purchased lots in Cordoba, Mar del Plata, Zarate and Mendoza, where it planned to build new hotels that would operate under the brand Hampton Inn. However, the recession that hit Argentina made the firm think it over. It sold the lot in Mendoza to the Spanish chain NH, which built a hotel that was inaugurated in 2002. In Chile, Paredes takes part in the Hyatt hotel located in Santiago. =================================== D O M I N I C A N R E P U B L I C =================================== TRICOM: Responds to Unusual Trading Activity -------------------------------------------- Tricom, S.A. (NYSE: TDR) responded Friday to an inquiry from the New York Stock Exchange regarding the unusual trading activity in its common stock. The Company stated that its normal policy is not to comment on unusual trading activity and that it has not released any new information nor is it aware of any reasons for Friday's unusual trading activity. This press release should not be construed as reflecting any change in TRICOM's policy regarding commenting upon the matters addressed above. The Company disclaims any obligation to furnish updated or additional information with respect to the matters addressed above or any other matters. About TRICOM Tricom, S.A. is a full service communications services provider in the Dominican Republic. We offer local, long distance, mobile, cable television and broadband data transmission and Internet services. Through Tricom USA, we are one of the few Latin American based long distance carriers that is licensed by the U.S. Federal Communications Commission to own and operate switching facilities in the United States. Through our subsidiary, TCN Dominicana, S.A., we are the largest cable television operator in the Dominican Republic based on our number of subscribers and homes passed. We also offer digital mobile integrated services including two-way radio and paging services in Panama using iDENr technology. For more information about Tricom, please visit www.tricom.net UNION FENOSA: ANJE Questions Legality of Buyback Contract --------------------------------------------------------- Dominican Republic newspaper Hoy published a statement from The Young Entrepreneurs Association (ANJE) calling for the share buyback of the Union Fenosa to be done legally. According to ANJE, the contract, which is due to be signed 30 September, violates the Law for the Reform of Public Enterprises (Law 141-97), as it returns full ownership and operation of the power distributors Edenorte and Edesur to the government. Law 141-97 establishes an obligatory co-ownership of the businesses and operations, making the participation of private investors mandatory. Furthermore, ANJE wants the findings of the recent external audit to be made public and the personnel responsible for the problems to be identified. Lastly, ANJE wants to know why a direct sale to another outside group was not carried out, which would have prevented the need for the costly financing. ============= E C U A D O R ============= * Outlook on Ecuador Revised to Stable; Ratings Affirmed -------------------------------------------------------- Standard & Poor's Ratings Services said Thursday that it revised its outlook on the Republic of Ecuador to stable from positive, reflecting a weakening commitment of the government to improve its fiscal balances and a continued lack of clarity on its determination to advance reform. Standard & Poor's also affirmed its 'CCC+' long-term and 'C' short-term issuer credit ratings on the republic. According to Credit Analyst Lisa Schineller, the stable outlook balances the potential to advance needed reform against the risk that the government is unwilling or unable to do so. "Beyond the stated commitment and support for reform by the Ministry of Finance and central bank, a coherent commitment from the rest of the executive branch and the legislature is weak and wavers," said Ms. Schineller. "The administration has not implemented fiscal measures to curtail expenses, even via executive decree, and has not demonstrated a firm commitment to advance reform to sustain fiscal adjustment and improve expenditure flexibility," said added. Ms. Schineller explained that Ecuador's 12-month Stand-by Agreement with the International Monetary Fund (IMF) remains under stress. Prospects for completion are uncertain and negotiating a subsequent agreement in 2004 will be quite difficult. "Given the very limited market interest in holding more Ecuadorean debt, financing from IMF and other multilateral lenders is key if Ecuador is to service its debt on a timely basis and without significant recourse to arrears-especially as oil revenue is under pressure amid declining production," she noted. Despite the vast importance to the economy's growth prospects and the country's finances, the government has yet to outline a definitive strategy to reverse the ongoing steep decline in oil production, which is at a 10-year low. As a consequence, the sector cannot effectively leverage the additional export capacity afforded by the start-up of the second oil pipeline (the OCP), anticipated later this month. "While there are incentives for both the government and IMF to maintain the agreement executed in March 2003, Ecuador has yet to comply with critical conditions in the program," Ms. Schineller said. "A key risk to the ratings includes termination of the agreement and fiscal slippage, a problem that will arise should oil prices drop. Conversely, advancement of the fiscal measures needed to improve expenditure flexibility or establish a coherent strategy for the oil sector would improve creditworthiness," she concluded. ANALYSTS: Lisa M Schineller, New York (1) 212-438-7352 Jane Eddy, New York (1) 212-438-7996 =========== P A N A M A =========== CSS: CONATO To Vote Against Final Budget Proposal For 2004 ---------------------------------------------------------- The scope of CSS' budget for next year has been the source of heated discussion among economists and business people. The agency failed to present its original 2004 budget within the specified timeframe, resulting in the resignation of director Juan Jovane. CSS recently introduced a series of cost-cutting measures designed to redress its deficit, including the elimination of certain specialties from the public health agenda, a measure that prompted a call for strike action from the local medical fraternity. The agency saw its pension deficit increase by US$354mn in the year to June. Panama's government is awaiting the results of a technical analysis before presenting new proposals to confront the agency's financial woes. *********** 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 * * *