/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/030925.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 Thursday, September 25, 2003, Vol. 4, Issue 190 Headlines A R G E N T I N A ACTIVA PERSONAL: Credit Claims Due For Verification Today ADEBALL: Credit Verification Ends, Receiver Prepares Reports ALCAS: Court Orders Bankruptcy ASOKA: Court Orders Bankruptcy AUTOPISTAS DEL SOL: Bondholder Objects To APE Agreement CABLEVISION: Legal Hurdles Threaten Debt Restructuring Efforts CANOSUR: Enters Bankruptcy On Court Orders DERMUT: Creditors' Claims Examined For Bankruptcy Process DIM: Credit Verification For Bankruptcy Proceedings Completed ESTANCIAS POLVAREDAS: Receiver Verifies Claims For Bankruptcy FARMACIAS 5000: Receiver Prepares Reports After Credit Check FORLIN: Court Sets Schedule For Bankruptcy Proceedings GATIC: Future Hangs in the Balance HIDROELECTRICA PIEDRA: Learns of Four Legal Bankruptcy Petitions HITO: Court Requires Receiver To Prepare Individual Reports JORGE MARA: Receiver Verifies Claims For Bankruptcy Process LATC: Petitions Court For Reorganization * Argentina To Hire 12 banks To Handle Debt Proposal B E R M U D A GOSHAWK REINSURANCE: A.M. Best Places Rating Under Review TYCO INTERNATIONAL: Judge Rules In Favor Of Defendants B O L I V I A COTEL: To Elect New Mgt, Oversight Boards This Sep. 25-28 B R A Z I L GERDAU: Shares Downgraded on Strong Performance VESPER: BCI Agrees to Settle Guarantees C H I L E MADECO: On Its Way To Recovery, Says Brokerage C O L O M B I A AVIANCA: Proof of Claim Forms Due on Oct. 15, 2003 PAZ DEL RIO: Shareholders Agree To Cap Increase, New Board J A M A I C A JPSCo: To Appeal IDT Ruling M E X I C O GRUPO BIMBO: Prepays Syndicated Loan GRUPO COSTAMEX: Concludes Debt Negotiations With IPAB GRUPO TMM: KCS' BoD Affirms Move To Enforce TFM Buy Agreement GRUPO TMM: Likely To Reach Debt Accord With Creditors This Year NII HOLDINGS: Selects Teradata Profitability Analytics Solution TEMTEX INDUSTRIES: CFM Announces Intention to Purchase Assets P U E R T O R I C O DORAL: Announces Pricing of Preferred Stock Offering V E N E Z U E L A PDVSA: Plans To Hire Bank To Coordinate Financing of LNG Project - - - - - - - - ================= A R G E N T I N A ================= ACTIVA PERSONAL: Credit Claims Due For Verification Today --------------------------------------------------------- Creditors of bankrupt Buenos Aires company Activa Personal S.A. must have their claims verified by the Company's receiver, Ms. Viviana Palopoli, before the day ends. The period that the court allocated to the authentication process ends today. The city's Court No. 5 earlier ruled that the Company is bankrupt and placed the receiver in charge of the credit verification and preparation of the reports for the bankruptcy process. The Troubled Company Reporter - Latin America earlier indicated that the individual and general reports must be submitted to the court on November 6 and December 19, respectively. The individual reports are prepared after the verification process, while the general report must come after the individual reports are processed in court. These reports may contain the receiver's remarks on the factors that caused the Company's bankruptcy. CONTACT: Viviana Palopoli Ave. Corrientes 859 Buenos Aires ADEBALL: Credit Verification Ends, Receiver Prepares Reports ------------------------------------------------------------ Mr. Horacio Fernando Crespo, receiver for Buenos Aires-based Amoblamientos S.A., will start preparing the individual reports for the Company's bankruptcy. An earlier report by the Troubled Company Reporter - Latin America indicated that the deadline for the credit verification process expires today. The Company received permission to undergo reorganization from the city's Court No. 17, which approved its motion for "Concurso Preventivo". The court expects the individual reports to be submitted on November 13 this year, followed by the general report on December 30. The receiver, who will prepare these reports, may express his opinions on the factor that led to the reorganization. The informative assembly, which is one of the last steps in the reorganization, will take place on February 19 next year, according to Infobae. CONTACT: Horacio Fernando Crespo Maipu 464 Buenos Aires ALCAS: Court Orders Bankruptcy ------------------------------ Court No. 17 of Buenos Aires has ordered the bankruptcy of Alcas S.R.L., relates Argentine news portal Infobae. The Company is placed in the hands of its receiver, Mr. Jose Manuel Montana. Working with Clerk No. 33, the court instructed the receiver to verify creditors' claims until October 15 this year. This procedure is done to determine the nature and amount of the Company's debts. The receiver is to prepare individual reports after the verification process is completed. These reports must be filed at the court on November 26 this year. A general report must also be presented on February 19, 2004. The receiver may include his views on the factors concerning the Company's bankruptcy in these reports. CONTACT: Jose Manuel Montana Paraguay 2081 Buenos Aires ASOKA: Court Orders Bankruptcy ------------------------------ Buenos Aires-based Asoka S.R.L. is entering bankruptcy on orders from the city's Court No. 17, according to a report by Infobae. Clerk No. 33 works with the court on the case, which is expected to end in the liquidation of the Company's assets to reimburse its creditors. The receiver assigned to the case is Ms. Maria Lilia Orazi. The source relates the Miss Orazi will be verifying creditors' claims until October 31 this year. The receiver is also required to prepare the individual and general reports on the bankruptcy proceedings. However, Infobae did not mention whether the court has set the deadlines for the submission of these reports. CONTACT: Asoka S.R.L. Munoz 1949 Buenos Aires Maria Lilia Orazi Montevideo 536 Buenos Aires AUTOPISTAS DEL SOL: Bondholder Objects To APE Agreement ------------------------------------------------------- An individual bondholder named Jose Luis Villaveiran has filed a claim objecting to the out-of-court (APE) agreement of toll concessionaire Autopistas del Sol (Ausol). Ausol -a consortium composed by Aurea Concesiones de Infraestructura S.A.C.E. (45,163%), Impregilo International Infrastructures (18.331%), Dycasa S.A. (5,831%) and Grupo Dragados (0,675%)- is trying to restructure a debt of US$490 million through an APE. Its debt-restructuring proposal was accepted by 78% of its creditors representing 95% of the debt and the accord is now waiting for court approval. CABLEVISION: Legal Hurdles Threaten Debt Restructuring Efforts -------------------------------------------------------------- Efforts by Cablevision, Argentina's largest cable television operator, to restructure US$797 million of debts on which it defaulted during Argentina's financial crisis, are likely to suffer a legal setback. Dow Jones Business News released a report saying that two parties with apparent financial stakes in the Company have filed separate suits against Cablevision. The first party, Cayman Islands-based Eximius Capital Funding, filed a suit in New York two months ago seeking US$249,000 in defaulted Cablevision bonds. Argentine press reports have linked Eximius Capital Funding to WR Huff Asset Management, a New Jersey-based vulture fund. But Cablevision is also battling through an older, more acrimonious legal dispute that has no apparent connection to the Eximius lawsuit. Cablevision said the man behind its troubles is Raul Moneta, a former shareholder in the Company and a banker who was named two years ago in a U.S. Senate investigation into bribery and money laundering scandals in Argentina. Dow Jones recalls that in November, Moneta's Cayman Islands-based fund, ELP Investments, sued Texas buyout firm Hicks, Muse, Tate & Furst, a co-owner of Cablevision along with Liberty Media Corp. The lawsuit, filed in Argentina, claims Hicks Muse violated an agreement determining how it was to use Moneta's money after the two firms dissolved a partnership in CEI Citicorp Holdings. Among other allegations of fraudulent administration, Moneta said Hicks Muse inappropriately used his funds to acquire a stake in Cablevision. The original complaint, according to Dow Jones, was expanded in May to include Cablevision, alleging that it twice purchased the Cablevision trademark from a firm called Pramer while continuing to miss debt payments. Cablevision explains the trademark transaction through a complicated series of ownership changes, in which former Cablevision owner Eduardo Eurnekian transferred his controlling stake to the company that later became Liberty Media Corp., while the trademark remained the property of Pramer, another Eurnekian holding. Liberty later acquired Pramer, along with the trademark, and Cablevision purchased the name from Pramer a year later. In June, a judge assigned Jorge Nicolas Schiavo, an "informant inspector," to collect Cablevision documents in relation to the purchase of the Cablevision trademark. In a filing to the Argentine stock exchange last week, the Company said the judge had extended the inspector's assignment by another 45 days. CANOSUR: Enters Bankruptcy On Court Orders ------------------------------------------ The Civil and Commercial Tribunal of Lomas de Zamora in Argentina ordered the bankruptcy of local company Canosur S.A.C.I.M.I.A., reports Infobae. The province's Court No. 10 holds jurisdiction over the case. Ms. Maria del Carmen Perez Alonso, a local accountant, was assigned as the Company's receiver. She is in charge of authenticating creditors' claims and preparing the required reports. Creditors must have their claims verified by the receiver before October 10 this year. In this stage of the bankruptcy process, the nature and amount of the Company's debts are determined. The individual reports are prepared after the verification process is completed. These must be presented to the court on December 5 this year, followed by the general report on February 27, 2004. CONTACT: Canosur S.A.C.I.M.I.A. Mariana Arbel 3586 Monte Grande Maria del Carmen Perez Alonso Belgrano 269 Lomas de Zamora DERMUT: Creditors' Claims Examined For Bankruptcy Process --------------------------------------------------------- The bankruptcy of Dermut S.A. is proceeding as the receiver verifyies creditors' claims to determine the attributes of the Company's debts. Argentine news source Infobae reports that the credit verification period ends on October 17 this year. Buenos Aires Court No. 24, which holds jurisdiction over the Company's case, requires the receiver Mr. Isaac Jospe to prepare the individual reports after the verification is completed. These reports must be turned in on November 28 this year. The court also requires the receiver to prepare a general report after the individual reports are processed in court. This report must be submitted to the court on February 11 next year. CONTACT: Isaac Jospe JE Uriburu 1054 Buenos Aires DIM: Credit Verification For Bankruptcy Proceedings Completed ------------------------------------------------------------- The bankruptcy process of Argentine company Dim S.A. will enter a new phase as the receiver, Ms. Eva Mabel Bogado, closes the credit verification process today. On orders from Buenos Aires' Court No. 17, the receiver will start preparations on the individual reports, which are due for filing on November 6 this year. The receiver, an accountant from Buenos Aires, is also required to prepare a general report after the individual reports are processed. This must be submitted to the court before the December 19 deadline expires, according to an earlier report by the Troubled Company Reporter - Latin America. CONTACT: Eva Mabel Bogado Paraguay 1465 Buenos Aires ESTANCIAS POLVAREDAS: Receiver Verifies Claims For Bankruptcy ------------------------------------------------------------- Creditors of Estancias Polcaredas Grandes S.A. must have their claims verified by the Company's receiver before October 17 this year. After that, the receiver, Mr. Antonio Canada, will prepare the individual reports. The Company is undergoing the bankruptcy process on orders from Buenos Aires Court No. 24. It is expected that the Company's assets will be liquidated at the end of the process to reimburse its creditors. The court, which works with Clerk No. 48 on the case, requires the receiver to submit the individual reports on November 28 this year. A general report must also be ready by February 11 next year. CONTACT: Antonio Canada Luis Belaustegui 4531 Buenos Aires FARMACIAS 5000: Receiver Prepares Reports After Credit Check ------------------------------------------------------------ The credit verification process for the bankruptcy of Buenos Aires' Farmacias 2005 ends today. The Company's receiver, Mr. Jose Andres Sabuqui, a local accountant will start preparing the individual reports. An earlier report by the Troubled Company Reporter - Latin America indicates that the city's Court No. 5 handles the Company's case. It ruled that the Company is "Quiebra Decretada". The individual reports must be submitted to the court on November 6 this year. The receiver will also prepare a general report on the process and present this to the court on December 19. These reports may include the receiver's comments on the factors involved in the bankruptcy. CONTACT: Jose Andres Sabuqui Bernardo de Irigoyen 330 Buenos Aires FORLIN: Court Sets Schedule For Bankruptcy Proceedings ------------------------------------------------------ The Civil and Commercial tribunal of Reconquista in the Argentine province of Santa Fe orders the bankruptcy of local company Forlin S.A.I.C., reports Infobae. Without revealing whether it has assigned a receiver to the case, the report indicates that the court has set the schedule for the processes in the bankruptcy. The deadline for verifications of creditors' claims is October 29 this year, says the report. The deadlines for the individual and general reports are December 22, 2003 and February 23, 2003, the source adds. These reports are to be prepared by the receiver, and may include the receiver's opinions on the factors that contributed to the Company's bankruptcy. CONTACT: Forlin S.A.I.C. Rivadavia 936 Reconquista, Santa Fe GATIC: Future Hangs in the Balance ---------------------------------- Argentine textile company Gatic, which is led by Mr. Eduardo Bakchellain, is now facing a crisis that could bring its operations to an end. Local reports reveal that the Company's factories are inactive and its employees are suspended. What's making the situation worse is that the Company still has no clear definition in regards to its US$340-million debt restructuring. Some say the Company is likely to be taken over by the Estate. Gatic was created 40 years ago by Mr. Bakchellian and has got contracts for producing products for Adidas, Mike, La Gear, Asics, Reef and Arena. It also owns the brand Signia. During the last six months, it has registered huge costs by reopening new factories, as well as reincorporating employees. It counts with 7 factories and a total of 4,200 employees, though its productivity is currently at a halt. HIDROELECTRICA PIEDRA: Learns of Four Legal Bankruptcy Petitions ---------------------------------------------------------------- Electricity generation firm Hidroelectrica Piedra del Aguila, a unit of French-Belgian energy holding Total in Argentina, has been notified of four legal petitions for the Company's involuntary bankruptcy. The first petition was filed by Wage International Inc., which claims for a debt of US$123,731. Meanwhile, Delafield Overseas Corp. claims US$582,008, Faguard Investment claims US$200,362 and Oakhaven Corp. claims US$133,576. The Company said it would make the judicial deposit of the principal and interest payments of the installments that were due June 30 and December 31, 2002, and June 30, 2003. According to the terms of its concession contract, Piedra del Aguila cannot resort to either a formal restructuring proceeding or an out-of-court agreement (APE) with its creditors. If it did so, it would automatically loose the concession. The Company said it is trying to suspend the application of this clause while the Social and Emergency Law 25,561 is in force. The firm also explained it is in a situation in which its incomes are collected in Argentine pesos while part of its expenses and most of its debt are denominated in US dollars. Our current price level does not allow us to generate enough funds to face financial expenses and the payment of our debt, Piedra del Aguila said in order to explain its default. For that reason and with the aim of maintaining the provision of services, assuring an equal treatment to our creditors, protecting our working capital and preserving the principle of a going concern, the Company has had to delay principal and interest payments on its notes, the firm added. HITO: Court Requires Receiver To Prepare Individual Reports ----------------------------------------------------------- Hito S.A., which is based in the Argentine province of Corrientes, is making progress in its reorganization process. The credit verification process, where the characteristics of the Company's debts are determined, closes today, according to an earlier report by the Troubled Company Reporter - Latin America. Ms. Maria Marcela Lopez Horts, a local accountant who was designated as the Company's receiver, will start preparing the individual reports. The Civil and Commercial Tribunal of Corrientes, which holds jurisdiction over the Company's case, requires these reports to be filed on November 20 this year. The receiver is also required to prepare a general report on the bankruptcy process after the individual reports are processed in court. This is due for filing at the court on February 27 next year. An informative assembly will be held on October 15, 2004, local sources say without revealing the intended time and date. CONTACT: Hito S.A. Tucuman 1391 Corrientes Maria Marcela Lopez Horts 9 de Julio 1331 Corrientes JORGE MARA: Receiver Verifies Claims For Bankruptcy Process ----------------------------------------------------------- Buenos Aires accountant Antonio Gerard Pannachio takes charge as receiver for Jorge Mara S.A., reports local news source Infobae. The receiver will be verifying creditors' claims until November 3 this year. The Company is entering bankruptcy on orders from the city's Court No. 17. Working with Clerk No. 34, the court has set the deadlines for the submission of the reports, which are to be prepared by the receiver. The individual reports, which are prepared after the credit verification process is completed, must be presented to the court on December 16 this year. The general report, on the other hand must be ready by March 2 next year. CONTACT: Antonio Gerardo Pannachio Cramer 2175 Buenos Aires LATC: Petitions Court For Reorganization ---------------------------------------- Latc S.A., which is based in Suipacha, Buenos Aires, is seeking to undergo reorganization. A report by Argentine news portal Infobae indicates that the Company has submitted a motion for "Concurso Preventivo" at the city's Court No. 34. The report adds that Clerk No. 34 works with the court on the case. In the meantime, there are no indications whether the court is likely to approve or deny the motion. CONTACT: Latc S.A. Suipacha 370 Buenos Aires TELMES: Starts Reorganization As Court Approves "Concurso" Motion ----------------------------------------------------------------- Telmes S.R.L.'s motion for "Concurso Preventivo" earned the approval of Buenos Aires' Court No. 10. The Company kicks off its reorganization process with local accountant Jorge Jalfin as receiver. The receiver's duties include the verification of creditors' claims to determine the nature and amount of the Company's debts. Creditors have until November 10 present the proofs of claim for examination and authentication. Once the verifications are done, the receiver is to prepare the individual reports and present these to the court on December 23. A general report will be prepared after the individual reports are processed in court. The deadline for this report is March 9, 2004. The informative assembly, which is among the last steps in reorganization, will take place on September 1 next year. CONTACT: Jorge Jalfin Sarmiento 1452 Buenos Aires TRANFEDE: Court Sets Deadlines For Receiver's Reports ----------------------------------------------------- The individual and general reports for the bankruptcy of Buenos Aires company Transfede S.A. are due for filing on December 12, 2003 and Feruary 24, 2003, respectively. The dates were set by the city's Court No. 2, which holds jurisdiction over the case. The Troubled Company Reporter - Latin America earlier revealed that the court approved a motion for the Company's bankruptcy filed by its creditor for nonpayment of debt. Local accountant, Mr. Eduardo Zysman, was designated receiver for the process. His duties include the verification of creditors' claims and preparing the mentioned reports. The court, which works with Clerk No. 4 on the case, set October 17 as the cut-off date for the authentication period. CONTACT: Transfede S.A. J. Barros Pazos 3545 Buenos Aires Eduardo Jehuda Zysman Talcahuano 464 Buenos Aires * Argentina To Hire 12 banks To Handle Debt Proposal ---------------------------------------------------- Argentina's economy minister, Roberto Lavagna, revealed that the government will hire 12 banks in the next couple of weeks to handle its debt exchange offer to investors. Local daily La Nacion recalls that the bank announced Monday an offer to investors to exchange US$100 billion worth of bonds in default for new bonds. The offer spurred a controversy given that it outlined a 75% reduction in the debt's nominal value. According to international analysts, it was not realistic to reduce the debt payment to only 25%. The Argentine government does not plan to invite interested banks to a bidding process but would instead invite them to participate directly, Lavagna said, adding the government would use an "objective method" to establish which banks are best suited to handle an operation of the size of the upcoming debt exchange. ============= B E R M U D A ============= GOSHAWK REINSURANCE: A.M. Best Places Rating Under Review --------------------------------------------------------- A.M. Best Co. has placed the financial strength rating of A- (Excellent) of Goshawk Reinsurance Limited (Goshawk Re), Bermuda, under review with negative implications following an announcement by its parent, Goshawk Insurance Holdings plc, that it may breach its banking covenants due to the need for additional reserve strengthening at Lloyd's Syndicate 102--which has a Best's syndicate rating of A- (Excellent). While A.M. Best believes Goshawk Re continues to have excellent current and prospective risk-adjusted capital, the under review status reflects A.M. Best's discussions with Goshawk Re's management regarding any revision to the group's revised financial arrangements and the potential impact that any shortfall of funding at Syndicate 102 may have on the group's overall financial flexibility. In the event that the group's financial flexibility is maintained at a level consistent with the current rating, A.M. Best would expect to affirm the rating. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. CONTACT: Public Relations: Jim Peavy, 908-439-2200, ext. 5644 james.peavy@ambest.com or Rachelle Striegel, 908-439-2200, ext. 5378 rachelle.striegel@ambest.com or Analysts Barry Beard, 44-20-7626-6264 barry.beard@ambest.com or Stuart Shipperlee, 44-20-7626-6264 stuart.shipperlee@ambest.com TYCO INTERNATIONAL: Judge Rules In Favor Of Defendants ------------------------------------------------------ State Supreme Court Justice Michael Obus rejected Tuesday a motion by prosecutors to block former Tyco International executives Dennis Kozlowski and Mark Swartz from arguing that the millions they are accused of stealing were actually loans and bonuses approved by the Tyco board and disclosed to its outside auditors. According to an AP report, prosecutors had tried to block a defense argument that there was no criminal intent by Kozlowski and Swartz because the transfer of funds had been approved by the right people. But according to Obus, "Given that the prosecution is saying that the defendants took or received money, the defendants are entitled to show that the circumstances under which they got the money was not criminal." Kozlowski, Tyco's former chief executive, and Swartz, former chief financial officer, were indicted on charges of grand larceny for allegedly stealing more than US$600 million from the Company. Both have pleaded innocent. Their lawyers say the funds were loans, bonuses and other compensation approved by Tyco's board members and disclosed to auditors. But Assistant District Attorney Marc Scholl dismissed the "all- the-right-people-knew" argument as "rhetoric and sophistry," and told the judge he feared an unsophisticated jury might buy it. Even if Tyco's board and outside auditors were aware of the transactions, prosecutors contend, it was still illegal for Kozlowski and Swartz to take the money. ============= B O L I V I A ============= COTEL: To Elect New Mgt, Oversight Boards This Sep. 25-28 --------------------------------------------------------- Bolivia's La Paz-based local telephony cooperative Cotel is to have a new management and oversight boards following an election that will run from September 25 thru 28. According to Business News Americas, the electoral committee has accepted 90 candidates, 80% of which do not have any kind of telecom or managerial experience. Cotel has 150,000 members but 40,000 of these members may not place a vote as they are not up to date with their bill payments, electoral committee chairman Ricardo Perez said. Cotel was under the administration of Detecon until April this year, when the German consultancy firm decided to annul the contract due to power grabbing reportedly done by the cooperative board members. =========== B R A Z I L =========== GERDAU: Shares Downgraded on Strong Performance ----------------------------------------------- Bear Stearns slashed its recommendation on the shares of Brazilian long steelmaker Gerdau to underperform from peer perform, reports Business News Americas. The securities firm attributed the downgrade to the fact that Gerdau's shares are already trading at 5% above Bear Stearns' year-end 2004 target price, and have risen 127% so far this year and 35% in the last two months. Increased confidence among investors in Brazilian equities and government policies has been cited as one of the reasons for the rise. Gerdau's ADRs hit a 52-week high of US$16.20 earlier this month, compared to a low of US$5.12 late last year. They closed down 2.73% Tuesday at US$15.23. CONTACT: Gerdau S.A. Avenida Joao XXIII, 6777 Santa Cruz 23560 - 900 Rio de Janeiro - RJ Brazil Phone: +55 21 2414-6000 Fax: +55 21 2414-6243 Telex: 23423 Home Page: http://www.gerdau.com.br Contact: Jorge Gerdau Johannpeter, Chairman VESPER: BCI Agrees to Settle Guarantees --------------------------------------- Bell Canada International Inc. ("BCI") announced Tuesday that it has reached an agreement with Vesper S.A. and Vesper Sao Paulo S.A. (the "Vespers"), the Vespers' majority shareholder QUALCOMM Incorporated ("QUALCOMM"), and a syndicate of the Vespers' Brazilian banks pursuant to which BCI will pay US$12 million in consideration for the absolute release of its obligation to guarantee a portion of the Vespers debt (the "Vesper Guarantees"). This represents a 41% discount to the book value of BCI's liability provision at June 30, 2003 under the Vesper Guarantees of approximately US$20.2 million. The Vespers have not made semi-annual interest and monthly lease payments on its local bank debt since May 2003, and since such time the banks have been in a position to initiate a process that could ultimately result in a call on the Vesper Guarantees. This agreement has been reached in connection with a series of transactions whereby QUALCOMM intends to transfer its interest in the Vespers to Embratel Participacoes S.A. (the "Vesper Transactions"). As part of the Vesper Transactions, BCI will also transfer to QUALCOMM its remaining 1.5% indirect equity interest in the Vespers for nominal consideration, and BCI and QUALCOMM will provide each other with full releases with respect to all matters related to the Vespers. BCI's payment of US$12 million is subject to the approval of the Ontario Superior Court of Justice in accordance with BCI's Plan of Arrangement. The payment will be made concurrently with the closing of the balance of the Vesper Transactions, which are subject to regulatory approval in Brazil and certain other contingencies. BCI expects the closing to take place in the fourth quarter of 2003. BCI is operating under a court supervised Plan of Arrangement, pursuant to which BCI intends to monetize its assets in an orderly fashion and resolve outstanding claims against it in an expeditious manner with the ultimate objective of distributing the net proceeds to its shareholders and dissolving the company. BCI is listed on the Toronto Stock Exchange under the symbol BI and on the NASDAQ National Market under the symbol BCICF. Visit our Web site at www.bci.ca. CONTACT: BELL CANADA INTERNATIONAL INC. Howard N. Hendrick, 514-392-2260 howard.hendrick@bci.ca ========= C H I L E ========= MADECO: On Its Way To Recovery, Says Brokerage ---------------------------------------------- Chilean brokerage CB Capitales issued a report that indicates local copper and aluminum Madeco is on the road to recovery, relates Business News Americas. According to the report, the Company, controlled by the Luksic group, reported second quarter 2003 net income of CLP17 million (about US$24,000) compared with a loss of CLP7.06 billion in the second quarter of last year, its first quarterly profit since 1998. The positive results followed the Company's financial restructuring, which involved rescheduling of US$120 million in bank debt and an equity issue, among other measures. The restructuring helped Madeco slashed 22% of its debt since the middle of last year. CONTACT: Marisol Fernandez Investor Relations Voice: (56 2) 520-1380 Fax: (56 2) 520-1545 E-mail: mfl@madeco.cl Web Site : www.madeco.cl =============== C O L O M B I A =============== AVIANCA: Proof of Claim Forms Due on Oct. 15, 2003 -------------------------------------------------- The United States Bankruptcy Court for the Southern District of New York establishes October 15, 2003, as the deadline for creditors of Aerovias Nacionales de Colombia S.A. Avianca and its affiliate Avianca, Inc., to file their proofs of claim against theDebtors or be forever barred from asserting their claims. All proof of claim forms from creditors outside the Republic of Columbia must be received with the Bankruptcy Court on or before Oct. 15. If sent by mail, forms must be addressed to: United States Bankruptcy Court Southern District of New York Re: Aerovias Nacionales De Colombia S.A/ Avianca, et al. PO Box 5130 Bowling Green Station New York, NY 10274 If by hand or overnight courier, to: United States Bankruptcy Court Southern District of New York Re: Aerovias Nacionales De Colombia S.A/ Avianca, et al. One Bowling Green Room 534 New York, NY 10004-1408 The proof of claim forms need not be submitted at this time if they are on account of: 1. Claims already paid in full by the Debtors; 2. Claims already properly filed with the Bankruptcy Court; 3. Claims not listed as disputed, contingent or unliquidated; 4. Claims previously allowed by Order of the Court; 5. Claims for which a specific deadline has been fixed by the Court; or 6. Administrative expense claims of the Debtors. Founded in 1919, Aerovias Nacionales de Colombia S.A. Avianca is one of the oldest airlines in the world. The Colombian carrier provided scheduled passenger and cargo services throughout South America, the Caribbean and the US. The Company filed for chapter 11 protection on March 21, 2003 (Bankr. S.D.N.Y. Case No. 03-11678). Ronald E. Barab, Esq., at Smith, Gambrell & Russell, LLP and Howard D. Ressler, Esq., at Anderson, Kill & Olick, P.C., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it estimated debts and assets of more than $100 million each. (Troubled Company Reporter - September 24, 2003, Issue 189) PAZ DEL RIO: Shareholders Agree To Cap Increase, New Board ---------------------------------------------------------- Colombian steelmaker Acerias Paz del Rio obtained green light from its shareholders to elect a new board, reports Business News Americas. The new board, according to Portafolio newspaper, will consist of Maria Mercedes Cuellar, Mauricio Cabrera Galvis, Jaime Borrero Rengifo, Carlos Alberto Moya and the governor of Boyaca department, where the Company is based. The first three new board members all represent the Company's unions. Simultaneously, the shareholders approved the Company's capital increase of COP160 billion, as well as the reforms to the Company's statutes. The approvals follow CONTACT: ACERIAS PAZ DEL RIO S.A. Carrera 8 # 13-31, Pisos 7 al 11 Bogota, D.C. Phone: (091) 282-8111 Fax: (091) 282-6268 282-3480 E-mail: apdr@multi.net.co ============= J A M A I C A ============= JPSCo: To Appeal IDT Ruling --------------------------- THE Jamaica Public Service Company said it is appealing a recent ruling by the Industrial Disputes Tribunal regarding the implementation of the results of the job evaluation and compensation review exercise conducted between October 2000 and June 2002, the Jamaica Observer reveals. An earlier report by the Troubled Company Reporter - Latin America revealed that the IDT ordered JPSCo, which is 80% owned by bankrupt US-based Mirant Corporation, to stand by a 1990 understanding with Jamaican trade unions that its wages must be in the top five to 10 percentile of a group of benchmarked companies. The IDT also insisted that the payment of new wage rates, resulting from the job evaluation project, must be retroactive to the start of 2000, rather than the start of a new contract period as JPSCo had initially proposed. But according to JPSCo's attorneys, the IDT ruling raises several legal concerns. Additionally, the language of the award is vague and open to many interpretations, the lawyers said. In the meantime, the Jamaica Observer reports that the JPSCo's management says it remains committed to the timely resolution of the collective labor agreements and has urged the heads of the NWU and NWU/BITU to resume discussions on the other outstanding issues pertaining to the negotiations. =========== M E X I C O =========== GRUPO BIMBO: Prepays Syndicated Loan ------------------------------------ Mexican bakeries company Grupo Bimbo SA said it prepaid US$62 million of a syndicated loan that wasn't due until October 2004. Bimbo said in a press release that the early payment represents a further reduction in its debt level. Bimbo had prepaid US$63 million of the 2004 credit in March of this year. At the end of the second quarter of this year, Bimbo reported short-term bank debt of MXN476 million (US$44.03 million) and long-term bank debt of MXN10.55 billion. GRUPO COSTAMEX: Concludes Debt Negotiations With IPAB ----------------------------------------------------- Mexican hotel chain Grupo Costamex revealed it has completed negotiations with IPAB (Instituto para la Proteccion al Ahorro Bancario) with regards to the payment of a past due debt worth US$26.4 million owed to the Banco Union. Citing the Company, South American Business Information reports that the effects of the deal will be reflected at the end of September GRUPO TMM: KCS' BoD Affirms Move To Enforce TFM Buy Agreement ------------------------------------------------------------- The Kansas City Southern (KCS) (NYSE:KSU) Board of Directors affirmed Tuesday the company's efforts to pursue all legal means to enforce provisions of the Acquisition Agreement between KCS and Grupo TMM, S.A. (TMM) for TMM's interest in Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. (GTFM). The KCS Board passed a resolution instructing management to pursue all legal means to enforce the Agreement while also, as required by the Agreement, pursuing direct negotiations with TMM. "The Board on Tuesday affirmed its commitment to the NAFTA Rail transaction and in enforcing the Acquisition Agreement as it was agreed to and signed by the parties back in April," said Warren K. Erdman, KCS Vice President - Corporate Affairs. KCS delivered a notice of dispute to TMM dated August 29, 2003, in accordance with the dispute resolution provisions of the Acquisition Agreement. This initiated a 60-day negotiation period between the parties. If the parties are unable to resolve the disputes within that period of time, KCS intends to initiate a binding arbitration in accordance with the terms of the Acquisition Agreement. KCS maintains that the Acquisition Agreement is still valid and in effect until December 31, 2004. Under that Agreement, TMM and its affiliates are precluded from initiating or participating in any negotiations or discussions with anyone other than KCS for the acquisition or purchase of all or a substantial portion of the assets of GTFM or any equity interest in GTFM. KCS has filed a complaint in the Delaware Court of Chancery seeking a preliminary injunction to preserve the parties' positions while KCS and TMM carry out the dispute resolution provisions in the Acquisition Agreement. In other action, the KCS Board received a report on capital investments the company is making to improve track and facilities that increase the efficiency of the U.S. railroad and expand its capacity. The report to the KCS Board outlined progress being made on several capital projects including sidings, track capacity improvements, power switches, and other facilities and equipment improvements. It also discussed several operating achievements and the current capital structure of the company. (The full report can be found at KCS' website, www.kcsi.com.) Also, the U.S. Surface Transportation Board issued a decision finding no need to rule on the transfer back to TFM of the 51% interest in Mexrail that KCS acquired on May 9,2003. The effect of the decision is to allow TFM to reacquire the shares in accordance with the Mexrail Stock Purchase Agreement and KCS will abide by that agreement. KCS is a transportation holding company that has railroad investments in the United States, Mexico and Panama. Its primary holding is The Kansas City Southern Railway Company (KCSR). Headquartered in Kansas City, Missouri, KCSR serves customers in the central and south central regions of the U.S. KCS' rail holdings and investments are primary components of a NAFTA Railway system that links the commercial and industrial centers of the United States, Canada, and Mexico. CONTACT: Kansas City Southern Media Contacts: Gabriel Guerra Mexico Phone: 011-5255-5273-5359 Email: gguerra@gcya.net Warren K. Erdman U.S. Phone: 816-983-1454 Email: warren.k.erdman@kcsr.com Investors Contact: William H. Galligan Phone: 816-983-1551 Email: william.h.galligan@kcsr.com GRUPO TMM: Likely To Reach Debt Accord With Creditors This Year --------------------------------------------------------------- Marco Provencio, a Grupo TMM spokesperson, expressed confidence that the financially embattled Mexican transport company will reach an agreement with debt holders this year to restructure US$377 million in bonds, relates Reuters. "The possibility of an agreement (by the end of the year) is there," Provencio told Reuters "It's still clear to everyone that the best option all around is a negotiated agreement," he added. TMM kicked off debt talks with bondholders last May. Analysts believe that the Company is close to an agreement to restructure a US$177 million bond, which it defaulted on last May, and another bond for US$200 million, which is due in 2006. "There's a strong expectation that there will be a restructure that allows the bondholders to recover their money," said Eric Ollom, an analyst at ING Financial Markets in New York. "The question is when." TMM is likely to up the interest rate it pays on its bonds to at least 12 percent, from between 9.5 percent and 10.25 percent, in return for an extension on their payment, analysts said. "We're talking about a restructure that could mean extensions of two to five years depending on each bond," said an analyst who asked to remain anonymous. NII HOLDINGS: Selects Teradata Profitability Analytics Solution --------------------------------------------------------------- Nextel Mexico, a subsidiary of NII Holdings, Inc. (Nasdaq:NIHD), a leading provider of fully integrated digital wireless communications in Latin America, has selected the Teradata(R) Profitability Analytics solution from Teradata, a division of NCR Corporation (NYSE:NCR), including Teradata Value Analyzer(TM), which measures current customer profitability. The Teradata Profitability Analytics solution runs in conjunction with Churn Predictive Modeling and Customer Relationship Management (CRM) Campaign Management solutions on Nextel Mexico's existing Teradata(R) data warehouse. Teradata Value Analyzer and Teradata Predictive Churn Models analyze the data in the data warehouse to determine customer- account profitability. This knowledge can then be applied to marketing efforts and customer communications using Teradata CRM Campaign Management. "We will now be able to measure our success on a per-user basis, accounting for revenue contributions and actual costs for each customer account," said John McMahon, vice president of business operations, NII Holdings, Inc. "NII is committed to delivering the most efficient integrated wireless communications to business users. The information acquired through Teradata will allow us to continue delivering that promise and to develop products, services and pricing in line with what our customers demand." "Detailed customer profitability metrics are increasingly important to companies to make confident CRM decisions to increase retention of high-value customers, increase current customer revenue and for better alignment of products, services and resources," said David Hawley, telecommunications software strategies analyst for The Yankee Group. "A customer-behavior- based profitability application should measure value through components of income and expense at a customer activity level. Companies who have already invested in data warehousing are likely to have a technology infrastructure to analyze customer behavior and calculate profitability metrics." Teradata Profitability Analytics positions companies to proactively manage their business. It enables companies to know which customers provide the greatest contributions to their bottom line on Tuesday, so they can design marketing campaigns, develop offers and align products and services to drive higher account profitability, resulting in a larger base of higher-value customers for the future. "NII Holdings is setting a new standard for customer profitability and management in the communications industry," said Bob Fair, chief marketing officer, Teradata. About NII Holdings, Inc. NII Holdings, Inc., a publicly held company based in Reston, Va., is a leading provider of mobile communications for business customers in Latin America. NII Holding, Inc. has operations in Mexico, Brazil, Argentina and Peru, offering a fully integrated wireless communications tool with digital cellular service, text/numeric paging, wireless Internet access and Nextel Direct Connect(R), a digital two-way radio feature. NII Holdings, Inc. trades on the Nasdaq market under the symbol NIHD. Visit the company Web site at http://www.nii.com. About Teradata Division Teradata, a division of NCR Corporation (NYSE:NCR), is the global leader in enterprise data warehousing and enterprise analytic technologies and services. For more information, visit www.teradata.com. About NCR Corporation NCR Corporation (NYSE:NCR) is a leading global technology company helping businesses build stronger relationships with their customers. NCR's ATMs, retail systems, Teradata(R) data warehouses and IT services provide Relationship Technology(TM) solutions that maximize the value of customer interactions. Based in Dayton, Ohio, NCR (www.ncr.com) employs approximately 29,500 people worldwide. NCR and Teradata are trademarks or registered trademarks of NCR Corporation in the United States and other countries. Nextel, the Nextel logo, Nextel Online, Nextel Business Networks and Nextel Direct Connect are trademarks and/or service marks of Nextel Communications, Inc. CONTACT: Teradata Division NCR Corporation Virve Tremblay Phone: 937-445-1863 Email: virve.tremblay@teradata-ncr.com TEMTEX INDUSTRIES: CFM Announces Intention to Purchase Assets ------------------------------------------------------------- CFM Corporation ("CFM") announced Tuesday that it was the successful bidder to purchase substantially all of the assets of Temtex Industries Inc., a Delaware corporation, ("Temtex"), and certain assets of its subsidiaries, Temco Fireplace Products Inc, a Texas corporation ("Temco"), and Temcomex S.A. de C.V., a Mexican corporation ("Temcomex"), in an auction held in the United States Bankruptcy Court for the Central District of California. Subject to the satisfactory completion of due diligence, the parties' execution of a binding asset purchase agreement, the Bankruptcy Court's entry of an order approving the sale to CFM and the satisfaction of certain contingencies, the transaction will close on October 3, 2003. Temtex is a publicly traded U.S. company that manufactures metal fireplace products used in new construction and remodelling of existing residential and commercial buildings. Temtex operates through two wholly owned subsidiaries Temco and a non-debtor, Mexican entity, Temcomex. Specifically, Temtex manufactures wood- burning and gas fireplaces and accessories. Temtex's manufacturing facilities are located in Tennessee and Mexico. Temtex recently initiated proceedings under Chapter 11 and a public auction for the assets of Temtex was held by the Bankruptcy Court on September 22, 2003. CFM submitted a bid of U.S.$7 million, which was approved by the Bankruptcy Court. "This acquisition will provide CFM with a strategically located manufacturing facility, among other benefits, and CFM intends to maintain this business as a separate division of CFM. CFM intends to continue to grow Temtex's business from the Mexico operations by maintaining Temtex's brand name Temco, management and distribution channels", said Mark Proudfoot, President and Chief Operating Officer. CFM is a leading vertically integrated manufacturer of home products and related accessories in North America and the United Kingdom. CFM designs, develops, manufactures and distributes a line of hearth and space heating products, barbecue and outdoor products and water and air purification products. CFM maintains an ongoing program of research and development aimed at continually improving the quality, design, features and efficiency of its products. CONTACT: CFM COLIN M. ADAMSON, Chairman, Chief Executive Officer (905) 670-7777 CFM MARK PROUDFOOT, President, Chief Operating Officer (905) 670-7777 ===================== P U E R T O R I C O ===================== DORAL: Announces Pricing of Preferred Stock Offering ---------------------------------------------------- Doral Financial Corporation (NYSE: DRL) announced Tuesday that it had entered into an agreement, subject to standard closing conditions, to sell $300 million of its 4.75% Perpetual Cumulative Convertible Preferred Stock (liquidation preference $250 per share) in a private offering to qualified institutional buyers pursuant to Rule 144A. The Company also granted the initial purchasers of the preferred stock an option to purchase up to an additional $45 million of the preferred stock. The Company disclosed that dividends on the preferred stock will be cumulative and will be payable quarterly at an annual rate of 4.75% of the liquidation preference, when, as and if declared by the Company's board of directors. Each share of the preferred stock will be convertible, under certain conditions, into 4.1904 shares of the Company's common stock or at an initial conversion price of $59.66 per common share, which represents an approximately 30% premium over Tuesday's closing price of $45.89. The shares may only be converted upon the occurrence of certain corporate transactions or if the closing price of the Company's common stock exceeds 120% of the conversion price (initially 120% of $59.66, or $71.59) for 20 trading days in a period of 30 consecutive trading days ending on the last trading day of the preceding calendar quarter. The shares of common stock issuable upon conversion of the preferred stock will not be taken into account in computing the Company's diluted earnings per share until the conditions for conversion are met. On or after September 30, 2008, the Company will have the option to require the conversion of the preferred stock into common stock if certain conditions are met. The Company expects to use $200 million of the net proceeds of the offering to repay its 8.5% medium term notes due July 8, 2004 at maturity and to use the remainder of the net proceeds for general corporate purposes. The Company disclosed that it expected that the savings associated with paying off the higher cost debt at maturity would represent savings of approximately $3.5 million in 2004. The preferred stock, and the common stock to be issued on the conversion of the preferred stock, have not been registered under the Securities Act and may not be offered or sold absent registration or an applicable exemption from registration under the Securities Act of 1933, as amended. This press release does not constitute an offer to sell, or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful. CONTACT: Doral Financial Corporation Richard F. Bonini Phone: 212-329-3728 or Mario S. Levis Phone: 787-474-6709 ================= V E N E Z U E L A ================= PDVSA: Plans To Hire Bank To Coordinate Financing of LNG Project ---------------------------------------------------------------- A source from Petroleos de Venezuela SA announced that the state oil company expects to hire a bank to coordinate the financing of its US$2.7 billion Mariscal Sucre liquefied natural gas (LNG) project "soon," relates Business News Americas. "We are still scouting the banks to see the feasibility of financing the project," the source said, adding, "We haven't really started to seek financing formally." "The first step is to hire an advisor and that decision will be made soon at a corporate level," the source said. PDVSA executives recently met with banks and financial institutions in New York to seek a financial coordinator for the project, the source said without revealing the names of the institutions. However, a previous report suggested that PDVSA executives met with Citigroup, ABN Amro, Merrill Lynch, JP Morgan Chase and the US Export Import Bank (Ex-Im). PDVSA expects to sign a 35-year joint venture deal with UK-Dutch company Shell and Japan's Mitsubishi to develop Mariscal Sucre by end-November. *********** 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 * * *