/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/030930.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 Tuesday, September 30, 2003, Vol. 4, Issue 193 Headlines A R G E N T I N A BALOPTIK: Seeks Court Approval for Reorganization Plan CASA BORGES: Receiver Takes Over As Bankruptcy Proceeds CENTRO GRAFICA: Individual Reports Due Today DECOR ALIMENTICIA: Claims Verification For Bankruptcy Starts EDEMSA: EDF Fails to Settle Conflict With Mendoza Government EZEMAR: Today Is Last Day For Filing of Individual Reports GS VIAL: Receiver Verifies Claims For Bankruptcy INCOTYE: Receiver Prepares Individual Reports JHR CONSTRUCCIONES: Individual Reports Due To Be Filed Today NETEC NUEVOS: Proof of Claims Period Ends December 5 PLEYCO: Court Sets Schedule For Bankruptcy Process PUNTO B: Deadline To File Claims Ends Today RU RU: Court Assigns Receiver For Bankruptcy Proceedings TINTEX SACIIF: Creditor Claims Filing Period Closes Today ZEUCAMP: Submits Motion For Reorganization To Court ZG: Court Orders Bankruptcy B A R B A D O S C&W BARBADOS: No More Free Phones As Of October 1 B E R M U D A GLOBAL CROSSING: Court OK's Ira Benjamin Katz as Lit. Counsel B R A Z I L AHOLD: Expected Bidders For Brazil Assets Submit Proposals TELESP: Announces TCO Acquisition C O L O M B I A CHEC: EPM Buys 56% Stake E C U A D O R BANCO DEL PICHINCHA: Fitch Affirms 'CCC+' LTFC Rating PRODUBANCO: Fitch Affirms LTFC Rating At 'CCC+' J A M A I C A EUREKA MEDICAL: Operators Sue Life of Jamaica M E X I C O ALESTRA: Extends Offers, Solicitations To Reorganization GRUPO TFM: MCC Extends KCS' Authority to Purchase Grupo TFM UNION FENOSA: To Sell Off GAP Ownership VITRO: S&P Downgrades Ratings To B+ V E N E Z U E L A CERRO NEGRO: Moody's Confirms Rating, Revises Outlook To Stable HAMACA: Moody's Confirms B3 Rating On $470M Of Senior Loans PETROZUATA FINANCE: Moody's Confirms B1 Rating To $973M of Bonds SINCOR: Moody's Revises Rating Outlook to Stable From Negative - - - - - - - - - - ================= A R G E N T I N A ================= BALOPTIK: Seeks Court Approval for Reorganization Plan ------------------------------------------------------ Argentine lens maker Baloptik S.A. has submitted its motion for "Concurso Preventivo" to Buenos Aires' Court No. 17. A report by local newspaper La Nacion reveals that Dr. Bavastro is the insolvency judge handling the case. In its court filing, the Company revealed that it stopped making debt payments starting February 8, 2001. However, the source did not mention whether the court, assisted by Clerk NO. 33, Dr. Trebino Figueroa, is likely to approve the petition. CONTACT: Baloptik S.A. 5th Floor, Room F Uruguay 362 Buenos Aires CASA BORGES: Receiver Takes Over As Bankruptcy Proceeds ------------------------------------------------------- Buenos Aires Court No. 26 assigns Mr. Juan Carlos Guaita as receiver for the bankruptcy of Casa Borges S.A., relates Infobae. The Company was recently declared bankrupt by the court, which works with Clerk No. 51. The claims verification deadline is October 30 this year, the report adds. The receiver will prepare the individual reports after the credit verification is completed. These must be submitted to the court on December 12. The receiver will also prepare a general report on the process after the individual reports are processed, due to be filed with the court on February 13 next year. CONTACT: Casa Borges S.R.L. Presidente Peron 1492 Buenos Aires Juan Carlos Guaita Ave de Mayo 749 Buenos Aires CENTRO GRAFICA: Individual Reports Due Today -------------------------------------------- Buenos Aires Court No. 8 expects the receiver for local company Centro Grafica S.R.L. to file the individual reports for the Company's bankruptcy today. These were prepared after credit verification was completed on August 19. After these reports are processed at court, the receiver, Mr. Reynaldo A. Casagrande, will prepare a general report. The court requires the general report to be submitted on November 12 this year, CONTACT: Centro Grafica S.R.L. Reconquista 629 Buenos Aires Reynaldo A Casagrande Lavalle 1528 Buenos Aires DECOR ALIMENTICIA: Claims Verification For Bankruptcy Starts ------------------------------------------------------------ The process for proving creditor claims in the bankruptcy of Decor Alimenticia S.R.L. has begun. Argentine news portal Infobae relates that the receiver, Mr. Oscar Luis Serventich, will authenticate claims until October 24 this year. Once the verification process is completed, the receiver will prepare the individual reports, which must be presented to the court on December 10 this year. The general report, which is prepared after the individual reports are processed at court, must be submitted to the court on February 24 next year. Clerk No. 6 aids the court on the case, the report adds. The Company's assets will likely be liquidated at the end of the bankruptcy process to pay off its creditors. CONTACT: Oscar Luis Serventich Piedras 1319 Buenos Aires EDEMSA: EDF Fails to Settle Conflict With Mendoza Government ------------------------------------------------------------ Electricite de France (EDF), a majority shareholder in Mendoza province-based electricity utility Edemsa, and the government of Mendoza have not been able to solve the conflict over the ARS35- million the government owes Edemsa. While EDF's head in Latin America and president at Edemsa, Henri Ducre, requested the immediate settlement of the debt, governor Roberto Iglesias insisted on repaying it in 18 installments. Iglesias also offered to help EDF negotiate the restructuring of Edemsa's US$100 million debt to a group of banks and solve its default. Two weeks ago, EDF threatened to abandon the concession if the government did not settle the debt. EDF holds a 45% stake in a group that owns 51% of the shares of Edemsa. The other owners are SAUR, from France, with 6% and the government of Mendoza, with 39%. Edemsa fell into default on the payment of its debt in July 2001. The Company would have some US$300 million in liabilities, according to newspaper Clarin. EZEMAR: Today Is Last Day For Filing of Individual Reports ---------------------------------------------------------- Mr. Jose Guillermo Lego, the receiver for bankruptcy Argentine company Ezemar S.A., is expected to file the individual reports today, September 30, 2003. These reports were prepared after the verification process was completed last August 18. After the individual reports are processed at court, the receiver will prepare a general report, which must be filed with the court on November 5. CONTACT: Ezemar S.A. Nazarre 1199 Pilar, San Isidro Jose Guillermo Lego L Martinez 276 Martinez, San Isidro GS VIAL: Receiver Verifies Claims For Bankruptcy ------------------------------------------------ Ms. Ines Etelvina Clos, an accountant from Buenos Aires, is designated receiver for the bankruptcy of local company GS Vial S.A., reports Infobae. The city's Court No. 22 holds jurisdiction over the case, the source adds. As the court ordered, Ms. Clos will verify creditors' claims until October 30 this year. Receivers are urged to present their proofs of claims to the receiver before the said deadline. Working with Clerk No. 43, the court earlier ruled that the Company is "Quiebra Decretada'. It is expected that the Company's assets will be liquidated at the end of the process. Proceeds will be used to pay its creditors. CONTACT: Ines Etelvina Clos Lavalle 715 Buenos Aires INCOTYE: Receiver Prepares Individual Reports --------------------------------------------- The credit verification process for the reorganization of local Buenos Aires-based company Incotye S.A. ends today. The Company's receiver, Mr. Jose Andres Sabuqui, who verified the claims, will start preparing the individual reports. The reorganization began after the city's Court No. 5 approved its motion for "Concurso Preventivo", according to an earlier report in the Troubled Company Reporter - Latin America. The individual reports must be presented to the court on November 11, followed by the general report on February 9 next year. The court has also set the informative assembly to take place on August 4 next year. CONTACT: Jose Andress Sabuqui Bdo de Irigoyen 330 Buenos Aires JHR CONSTRUCCIONES: Individual Reports Due To Be Filed Today ------------------------------------------------------------ The individual reports for the bankruptcy of Mar del Plata-based company JHR Construcciones S.R.L. must be presented to the court, today, according to an earlier report by the Troubled Company Reporter - Latin America. After the reports are processed at court, the receiver, Mr. Hector Maria Hardoy, must prepare a general report to be filed on November 28 this year. Mar del Plata's Court No. 10 ruled that the Company is "Quiebra Decretada", officially placing it under a bankruptcy process. CONTACT: JHR Construcciones S.R.L. Vieytes 3536 Mar del Plata Hector Maria Hardoy Garay 2635 Mar del Plata NETEC NUEVOS: Proof of Claims Period Ends December 5 ---------------------------------------------------- Creditors of bankrupt Buenos Aires company Netec Nuevos Empredimientos Tecnologicos S.A. have until December 5 this year to have their claims verified by the Company's receiver. A report by local news source Infobae indicates that the city's Court NO. 7 has ordered the Company's bankruptcy and assigned Mr. Carlos Carrescia as receiver for the process. Aside from verifying creditors' claims, the receiver is also required to prepare the individual and general reports, but the source did not mention whether the court has set the deadlines for the filing of these reports. The Company's assets are expected to be liquidated at the end of the bankruptcy process to reimburse its creditors. CONTACT: Netec Nuevos Empredimientos Tecnologicos S.A. San Martin 1137 Buenos Aires PLEYCO: Court Sets Schedule For Bankruptcy Process -------------------------------------------------- The individual and general reports for the bankruptcy of Buenos Aires company Pleyco S.A., must be submitted to the court on February 4, 2004, and the following March 17, respectively. A report by local news source Infobae indicates that the city's Court No. 6, which handles the Company's case, the set the schedule for the bankruptcy proceedings. As reported by the Troubled Company Reporter - Latin America earlier, the deadline for claims verification is November 19 this year. Creditors must present their proofs of claim to the receiver, Ms. Sandra Dallo, before the said date. The bankruptcy process started after the court, assisted by the city's Clerk No. 11 ruled that the Company is "Quiebra Decretada". CONTACT: Sandra Dallo Tucuman 1711 Buenos Aires PUNTO B: Deadline To File Claims Ends Today ------------------------------------------- The deadline for the credit verification process of Argentine company Punto B S.R.L., expires today, according to an earlier report by the Troubled Company Reporter - Latin America. The receiver, Mr. Antonio Garguilo, who verified the claims, will now prepare the individual reports. Buenos Aires' Court No. 2 requires these reports to be filed on November 14 this year. The receiver must also prepare a general report after the individual reports are processed at court. This report must be presented to the court on February 3 next year. CONTACT: Punto B S.R.L. Cramer 3956 Buenos Aires Antonio Garguilo Uruguay 385 Buenos Aires RU RU: Court Assigns Receiver For Bankruptcy Proceedings -------------------------------------------------------- Buenos Aires accountant Luis Di Cesare takes charge as accountant for local company Ru Ru S.R.L., which is undergoing a bankruptcy process. A report by Argentine news source Infobae relates that city's Court No. 15 decided that the Company is "Quiebra Decretada". Creditors must have their proofs of claim verified by the receiver before the December 2 deadline expires. After that, the receiver will prepare the individual reports, and then the general report. However, the source did not indicate whether the court, which works with Clerk No. 29 on the case, has set the deadlines for the submission of these reports. CONTACT: Ru Ru S.R.L. Hipolito Yrigoyen 2501 Buenos Aires Luis Di Cesare Viamonte 1336 Buenos Aires TINTEX SACIIF: Creditor Claims Filing Period Closes Today --------------------------------------------------------- Mr. Eduardo Miguel Echiade, the receiver for Buenos Aires-based company Tintex S.A.C.I.I.F.Y.A., closes the verification process for the Company's bankruptcy today. As ordered by the court, the receiver will prepare the individual reports, which are to be filed on October 31 this year. After these reports are processed at court, the receiver will prepare a general report, which must be submitted on December 2. An earlier report by the Troubled Company Reporter - Latin America indicated that the Company entered bankruptcy on orders from the city's Court No. 24. CONTACT: Eduardo Miguel Echaide Sanchez de Loria 155 Buenos Aires ZEUCAMP: Submits Motion For Reorganization To Court --------------------------------------------------- Zeucamp S.A., which is based in Buenos Aires, is seeking court permission to undergo reorganization. A report by local daily La Nacion indicates that the Company has submitted its motion for "Concurso Preventivo" to the city's Court No. 23. Dr. Timpanelli, the city's Clerk NO. 45, assists Dr. Villanueva, the insolvency judge handling the case. It is not clear whether the court is likely to approve the petition. According to documents submitted to the court, the real estate Company has stopped meeting its financial obligations in March 10, 2001. CONTACT: Zeucap S.A. 7th Floor, Room A Junin 696 Buenos Aires ZG: Court Orders Bankruptcy --------------------------- Buenos Aires' Court No. 6 orders the bankruptcy of local company Z.G. S.A., relates Argentine news portal Infobae. The city's Clerk No. 11 aids the court on the case, the source adds. A local accountant, Ms. Norma Haydee Fernandez, is assigned as the Company's receiver who will verify creditors' claims until November 4 this year. The receiver's duties also include the preparation of the individual reports after the verification process is completed. These reports must be presented to the court on December 31 this year, followed by the general report on March 12, 2004. CONTACT: Norma Haydee Fernandez Plaza 3442 Buenos Aires =============== B A R B A D O S =============== C&W BARBADOS: No More Free Phones As Of October 1 ------------------------------------------------- Beginning Oct. 1, Cable & Wireless Barbados (C&W) will no longer be obligated to provide free telephones and replacement units to its fixed line subscribers, reports the Barbados Nation. Previously, the installation of telephones, their maintenance, as well as wiring to homes were at C&W's expense. But following an announcement by Minister of Energy and Public Utilities Anthony Wood, subscribers will have to foot the bill for such services from Oct. 1. Consumers will now have a choice between C&W and several technicians who are to be certified next week by Government, to undertake such work. Chief Telecommunications Officer Chelston Bourne said Government would meet with the technicians and would provide them with certification and picture identification. Government will also publish the technicians' fees structure, though it will not get involved in setting minimum or maximum rates for such services. ============= B E R M U D A ============= GLOBAL CROSSING: Court OK's Ira Benjamin Katz as Lit. Counsel ------------------------------------------------------------- Mitchell C. Sussis, Vice President of Global Crossing, Ltd., states that since January 28, 2002, the Global Crossing Debtors retained the law offices of Ira Benjamin Katz as an ordinary course professional to represent one or more of the Debtors in connection with: (i) bankruptcy cases and adversary proceedings pending in the United States Bankruptcy Court for the Central District of California; and (ii) matters in the Los Angeles County Superior Court. To date, the Debtors paid Katz $97,546. Katz is projected to exceed the $30,000 per month, $100,000 in-the-aggregate caps for ordinary course professionals. Therefore, the Debtors seek the Court's authority to employ Katz as special litigation counsel, nunc pro tunc to January 28, 2002, in connection with certain bankruptcy cases, adversary proceedings, and various federal and state litigation matters that may arise from time to time in California to which the Debtors are a party-in-interest. Specifically, Katz will be: (a) investigating and advising one or more of the Debtors with respect to its rights and remedies in various bankruptcy cases pending in the United States Bankruptcy Courts for the Central, Southern, Northern, and Eastern Districts of California where requested by one or more of the Debtors, appearing as its counsel of record in those cases; (b) representing one or more of the Debtors in various preference and fraudulent transfer litigation matters in the United States Bankruptcy Courts for the Central District of California and elsewhere; (c) representing one or more of the Debtors in connection with the prosecution of claims and causes of action in state and federal courts; and (d) providing other services as requested by the Debtors and agreed to by Katz, consistent with the ability and expertise of the professionals employed by Katz. Mr. Sussis explains that Katz has considerable experience and knowledge in handling litigation and bankruptcy matters. Mr. Sussis assures Judge Gerber that the services provided by Katz as special litigation counsel will not be duplicative of services provided by other counsel employed by the Debtors. Katz will coordinate with Weil Gotshal & Manges, LLP, the Debtors' general bankruptcy and reorganization counsel, to ensure that there is no unnecessary duplication of services performed for and charged to the Debtors' estates. Ira Benjamin Katz, Esq., principal member of the firm, relates that Katz will bill the Debtors' estates its customary hourly rates, plus reimbursement of actual, necessary expenses and other charges it has incurred in relation to these cases. Mr. Katz believes that failure to charge these expenses would require the Firm to increase its current hourly rates. At present, the Katz attorneys that have been engaged for these cases Chave these hourly rates: Ira Benjamin Katz $350 Franklin Micheals, Jr. $285 The hourly rates for the Firm's members, counsel and associates, and paralegals responsible for the representation of the Debtors are: Members $350 Counsel and associates $175 - 325 Paralegals $50 - 140 Mr. Katz discloses that the Firm has represented other clients in matters unrelated to these cases where one or more of the parties-in-interest was an opposing party. Nevertheless, Mr. Katz assures Judge Gerber that the Firm will not represent any other entity other that the Debtors in connection with these cases. The Firm represented one or more of the Debtors prepetition, continues to represent the Debtors postpetition and is a holder of a general unsecured claim for $15,314, arising out of the provision of prepetition services to the Debtors. Mr. Katz assures the Court that the Firm does not have any connection to the Debtors in these Chapter 11 cases. Katz is a "disinterested person" as defined by Section 101(14) of the Bankruptcy Code. * * * Judge Gerber authorizes the Debtors to employ Katz as special litigation counsel effective January 28, 2002. (Global Crossing Bankruptcy News, Issue No. 47; Bankruptcy Creditors' Service, Inc., 609/392-0900) =========== B R A Z I L =========== AHOLD: Expected Bidders For Brazil Assets Submit Proposals ---------------------------------------------------------- Friday's deadline to make an offer for the Brazilian assets belonging to the ailing Dutch retailer Ahold NV brought with it the three expected bidders making an offer for the said assets, reports Dow Jones. Citing a supermarket industry source in Brazil, the report reveals that US retail giant Wal-Mart Stores Inc., France's Carrefour SA, and Brazil's Companhia Brasileira de Distribuicao SA (CBD) all submitted bids on the said deadline. Ahold is trying to divest its assets across Latin American in order to pay down EUR11-billion (US$12.4 billion) debt and clean up its books in the wake of an accounting scandal that hit the Company earlier this year. The BomPreco chain is expected to be the biggest draw with more than 100 stores in nine states and sales of BRL3.34 billion last year. Analysts expect the chain to sell for roughly a third of gross revenue. Dutch bank ABN Amro is managing the sale of Ahold's Brazilian assets. The retailer also plans to sell its smaller G. Barbosa chain and its Hipercard financing operation in Brazil. Ahold executives are hopeful the disposal of the Latin American assets will be completed by year-end. TELESP: Announces TCO Acquisition --------------------------------- Telesp Celular Participacoes S.A. - TCP (NYSE:TCP) (BOVESPA:TSPP3 (Common), TSPP4 (Preferred)), issued the following Relevant Notice: RELEVANT NOTICE Telesp Celular Participacoes S.A. (TCP) and Tele Centro Oeste Participacoes S.A. (TCO), in reference to the tender offer to acquire the control of TCO and Relevant Notices dated January 16, April 11, and April 25 of the current year, we hereby inform our shareholders and the public at large that, as a consequence of the decision by Comissao de Valores Mobiliarios (CVM), the Brazilian Securities and Exchange Commission, dated September 23, 2003, TCP has decided to carry out the tender offer for cash to acquire the common shares of TCO, under the terms of article 254- A of Law n degree 6.404/76. The offering price of R$16,58 per thousand shares represents 80% of the price paid to the former controlling shareholder on September 23, 2003. This value will be adjusted as from and after this date, in a manner consistent with the tender offer announcement being analyzed by the CVM. Sao Paulo, September 25, 2003 TELESP CELULAR PARTICIPACOES S.A. Fernando Abella Director, Finance and Investor Relations Tele Centro Oeste Celular Participacoes S.A. Luis Andre Carpintero Blanco Director, Finance and Investor Relations CONTACT: Telesp Celular Participacoes S.A. Fernando Abella Phone: (55 11) 3059-7061 Email: fernando.abella@vivo.com.br Tele Centro Oeste Celular Participacoes S.A. Luis Andre Carpintero Blanco Phone: (55 11) 3962-7717 Email: Luis.blanco@tco.net.br =============== C O L O M B I A =============== CHEC: EPM Buys 56% Stake ------------------------ Shareholders of Colombian utility Central Hidroelectrica de Caldas (Chec) authorized Medellin utility EPM's purchase of a 56% stake in the Company, reports Business News Americas. The transaction included the state capitalizing US$18 million of Chec's debt with a Finnish bank and US$3.5 million of debt with EPM, says the report. As a result, the state, which previously owned a majority 50% stake, is left with a 27% stake. Municipal and regional authorities now have 17%. ============= E C U A D O R ============= BANCO DEL PICHINCHA: Fitch Affirms 'CCC+' LTFC Rating ----------------------------------------------------- Fitch Ratings affirmed the 'CCC+' long-term foreign currency rating of Banco del Pichincha y Subsidiarias and revised the rating outlook to Stable from Positive. This change follows a similar action taken on the sovereign ratings and reflects signs of fiscal slippage that could increase pressures on the government's already fragile liquidity position. CONTACT: Fitch Ratings Linda Hammel New York Phone: 212-908-0303 Ricardo Chaves New York Phone: 212-908-0606 Patricio Baus Quito Phone: +5932-222-2323 Media Relations: James Jockle New York Phone: 212-908-0547 PRODUBANCO: Fitch Affirms LTFC Rating At 'CCC+' ----------------------------------------------- Fitch affirmed the CCC+ long-term foreign currency rating of Produbanco and revised the rating outlook to Stable from Positive. This change follows a similar action taken on the sovereign ratings and reflects signs of fiscal slippage that could increase pressures on the government's already fragile liquidity position. CONTACT: Fitch Ratings Linda Hammel New York Phone: 212-908-0303 Ricardo Chaves New York Phone: 212-908-0606 Patricio Baus Quito Phone: +5932-222-2323 Media Relations: James Jockle New York Phone: 212-908-0547 ============= J A M A I C A ============= EUREKA MEDICAL: Operators Sue Life of Jamaica --------------------------------------------- Operators of the defunct Eureka Medical Limited filed a $94- million suit against the medical diagnostic facility's former landlord, Life of Jamaica (LoJ), the Jamaica Gleaner reports. According to information from law firm Gifford, Thompson and Bright, which is representing Eureka's former chairman and director, Neville Hume, Eureka is suing for damages for breach of contract and/or trespass and wrongful eviction in the sum of $93,804,770. Eureka was forced to shut its doors on March 13, when LoJ, an insurance company, which owned the property on which it was located, terminated the center's lease and took possession of the property, stating that Eureka owed money. However, the operators are claiming that the shutdown was wrong based on certain discussions held between both parties up to that time. They said Eureka Medical should have been given at least a three-month removal notice. =========== M E X I C O =========== ALESTRA: Extends Offers, Solicitations To Reorganization -------------------------------------------------------- Alestra, S. de R.L. de C.V. ("Alestra") announces an extension of its pending cash tender offers, exchange offers and consent solicitation for all of its outstanding principal amount of its 12 1/8% Senior Notes due 2006 and 12 5/8% Senior Notes due 2009 (the "offers") and its solicitation of acceptance to a U.S. prepackaged plan of reorganization. Alestra is extending the expiration date for the offers and the solicitation of acceptances to the U.S. prepackaged bankruptcy to 11:59 p.m. on October 9, 2003, ten business days from, and including, the date of this press release, unless further extended by Alestra. If the offers are consummated, the new senior notes will be issued and all cash payments will be paid pursuant to the offers no earlier than the third business day following the expiration date, or as soon as practicable thereafter. Until, but not including, October 9, 2003, Alestra is also granting withdrawal rights to holders of its existing senior notes who have previously tendered their existing senior notes in the offers and to those holders of its existing senior notes who on or subsequent to the date of this press release tender their existing senior notes in the offers. Holders of Alestra's existing senior notes already have the right to withdraw or modify their ballot for the U.S. prepackaged plan at any point prior to the commencement of the U.S. bankruptcy case. As of the date of this press release, approximately $21 million principal amount of its outstanding 12 1/8% Senior Notes due 2006 have been tendered in the offers and approximately $18 million principal amount of its outstanding 12 5/8% Senior Notes due 2009 have been tendered in the offers. Alestra is also in the process of distributing a prospectus supplement to its prospectus dated August 21, 2003 that provides an update regarding a legal action brought against it, its equity holders and the indenture trustee on September 22, 2003 in the United States District Court for the Southern District of New York by a holder of Alestra's existing senior notes. The complaint seeks damages and to enjoin Alestra from consummating its exchange offers and consent solicitations. Alestra believes that there is no merit to any of the claims in the complaint and it intends to contest vigorously the action and continue to pursue the consummation of the offers and the solicitation of acceptances to the U.S. prepackaged plan of reorganization. The hearing date for the request for a preliminary injunction has been set for October 10, 2003. Alestra filed a copy of its prospectus supplement and prospectus on Friday with the SEC pursuant to Rule 424(b) of the Securities Act of 1933 and will file a form 6-K with the United States Securities and Exchange Commission that will contain this press release and a copy of the complaint brought by the holder of Alestra's existing senior notes. This announcement and the cash tender offers, exchange offers, the consent solicitation and the solicitation of acceptances to a U.S. prepackaged plan of reorganization which are the subject hereof are not being made in any jurisdiction in which, or to any person to whom, it is unlawful to make such announcement and /or cash tender offers, exchange offers, consent solicitation or solicitation of acceptances to a U.S. prepackaged plan of reorganization under applicable securities laws. This announcement shall not under any circumstances create any implication that the information contained herein is correct as of any time subsequent to the date hereof, or that there has been no change in the information set forth herein or in the affairs of Alestra or any of its affiliates since the date hereof. No indications of interest in the offers or votes on the U.S. prepackaged plan are sought by this press release. Copies of the prospectus supplement and the prospectus are being mailed to holders of record of the existing senior notes. Holders may also obtain copies of the materials by calling the Information Agent, D.F. King at (212) 269-5550. Any questions regarding the cash tender offers, exchange offers, the consent solicitations and the solicitation of acceptances to a U.S. prepackaged plan of reorganization may be addressed to Morgan Stanley as dealer manager for this transaction at the following number: CONTACT: Simon Morgan Phone: 1-212-761-2219 Heather Hammond Phone: 1-212-761-1893 GRUPO TFM: MCC Extends KCS' Authority to Purchase Grupo TFM ----------------------------------------------------------- Kansas City Southern (KCS)(NYSE: KSU) announced Friday that the Mexican Competition Commission (Commission) had extended for a period of six months its prior authorization of KCS' purchase of all of the shares of Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. (Grupo TFM) controlled by Grupo TMM, S.A. (TMM). The Commission acted at the request of KCS. The Commission did not place any conditions on the extension. As has been previously announced by KCS, the Company plans to seek enforcement through all legal means of the Acquisition Agreement entered into by KCS and TMM on April 20, 2003. Ronald G. Russ, executive vice president and chief operating officer, said, "KCS is very pleased with the decision by the Competition Commission as it would allow the Acquisition to be completed during the period of the extension without having to apply once again for authority from the Commission." 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 William H. Galligan Phone: 816/983-1551 Email: william.h.galligan@kcsr.com or Mexico: Gabriel Guerra Phone: 011-5255-5273-5359 Email: gguerra@gcya.net UNION FENOSA: To Sell Off GAP Ownership --------------------------------------- Spanish power group Union Fenosa revealed Thursday plans by the Company to sell its interests in Mexican airport concessionaire GAP (Grupo Aeroportuario del Pacifico), reports Business News Americas. GAP operates 12 regional airports in western Mexico, including Guadalajara's (Miguel Hidalgo), Puerto Vallarta's and Guanajuato's international airports. It has invested an estimated MXN850 million (US$78.3mn today) to end-2002 in upgrading and modernizing their facilities. But the operation, according to Union Fenosa, is "neither strategic nor profitable," that's why it is pulling out. Fenosa's announcement came after its recent decision to withdraw from power distribution in the Dominican Republic. VITRO: S&P Downgrades Ratings To B+ ----------------------------------- Standard & Poor's Ratings Services lowered Friday its local and foreign currency corporate credit ratings on glass manufacturer Vitro S.A. de C.V. (Vitro) to 'B+' from 'BB-'. The outlook is negative. Standard & Poor's also lowered its rating of Vicap S.A. de C.V.'s 11.375% notes due 2007 to 'B-' from 'B'. The lower rating on the notes reflects the structural subordination of the issue. Vitro has about $1.6 billion in total debt (including off- balance-sheet debt related to factoring facilities.) "The downgrade reflects Standard & Poor's view that Vitro's performance during the second half of the year will lead to financial indicators, particularly its cash flow protection measures, that are no longer adequate for the 'BB' rating category," said Standard & Poor's credit analyst Jose Coballasi. Liquidity is limited. Vitro faces short-term debt maturities of $456 million (of which $206 million are revolving trade finance facilities) over the next 12 months. The negative outlook reflects the challenging operating and economic environment faced by Vitro's business that could lead to continued weakness in the company's operating performance and key financial measures. A recovery in the company's operating and financial performance and the success of the company's refinancing plans could lead to a stable outlook. Monterrey, Mexico-based Vitro, through its subsidiary companies, is Mexico's leading glass producer. Vitro is a major participant in three principal businesses: flat glass, glass containers, and glassware. Vitro also produces raw materials, and equipment and capital goods for industrial use. ================= V E N E Z U E L A ================= CERRO NEGRO: Moody's Confirms Rating, Revises Outlook To Stable --------------------------------------------------------------- Moody's Investors Service confirmed the B1 rating on the US$575 million senior secured bonds of Cerro Negro Finance, Ltd. and revised the outlook to stable from negative. Moody's said the action reflects five months of strong production recovery at the Venezuelan heavy oil project after the national strikes; the stable outlook of PDVSA -the national oil company of Venezuela and a participant the oil project; and the moderation of disruption of the oil sector in Venezuela. Cerro Negro, which is physically complete, ramped up production rapidly after gas supplies required for production began flowing again following the conclusion of the national strike. Factors, which could have positive rating implications for the project would be: continued strengthening of operational performance, increased confidence in the on-going reliability of feedstock supplies, improvement in debt service coverage ratios, or moderation of the social and political stresses in Venezuela. Alternatively, any resumption of strikes, increased social upheaval, or actions that might adversely affect the operating capacity and financial condition of PDVSA could have a negative impact on the rating. HAMACA: Moody's Confirms B3 Rating On $470M Of Senior Loans ----------------------------------------------------------- Moody's Investors Service confirmed the B3 rating on the US$470 million of senior secured loans of Hamaca Holding LLC and revised the outlook to stable from negative. Moody's action reflects five months of strong production recovery at the Venezuelan heavy oil project after the national strikes; the stable outlook of PDVSA, -the national oil company of Venezuela and a participant in the oil project-; and the moderation of disruption of the oil sector in Venezuela. The project is currently producing approximately 85,000bpd of early oil, limiting the need for sponsor contributions to the capital needs of the project. PDVSA is responsible for significant equity contributions toward the completion of the Hamaca project as well as repayment of debt for non-completion. Owing to the magnitude of the PDVSA obligations under the project, Hamaca continues to have a lower rating compared to the other operating projects. Factors, which could have positive rating implications for the project would be: continued strengthening of operational performance, increased confidence in the on-going reliability of feedstock supplies, improvement in debt service coverage ratios, or moderation of the social and political stresses in Venezuela. Alternatively, any resumption of strikes, increased social upheaval, or actions that might adversely affect the operating capacity and financial condition of PDVSA could have a negative impact on the rating. PETROZUATA FINANCE: Moody's Confirms B1 Rating To $973M of Bonds ---------------------------------------------------------------- Moody's Investors Service confirmed the B1 rating on the approximately US$973 million senior secured bonds of Petrozuata Finance Inc. and revised the outlook to stable from negative. Moody's said the action reflects five months of strong production recovery at the Venezuelan heavy oil project after the national strikes; the stable outlook of PDVSA -the national oil company of Venezuela and a participant in the oil project-; and the moderation of disruption of the oil sector in Venezuela. Petrozuata, which is physically complete, ramped up production rapidly after gas supplies required for production began flowing again following the conclusion of the national strike. Factors, which could have positive rating implications for the project would be: continued strengthening of operational performance, increased confidence in the on-going reliability of feedstock supplies, improvement in debt service coverage ratios, or moderation of the social and political stresses in Venezuela. Alternatively, any resumption of strikes, increased social upheaval, or actions that might adversely affect the operating capacity and financial condition of PDVSA could have a negative impact on the rating. SINCOR: Moody's Revises Rating Outlook to Stable From Negative -------------------------------------------------------------- Moody's Investors Service confirmed the B1 rating on the US$1.1 billion of senior secured loans of Sincrudos de Oriente (SINCOR) and revised the outlook to stable from negative. According to Moody's, the action reflects five months of strong production recovery at the Venezuelan heavy oil project after the national strikes; the stable outlook of PDVSA -the national oil company of Venezuela and a participant in the oil project-; and the moderation of disruption of the oil sector in Venezuela. Sincor, which is physically complete, ramped up production rapidly after gas supplies required for production began flowing again following the conclusion of the national strike. The project has completed its 90-day First Stage completion test, which will lower significantly the amounts guaranteed by the sponsors for debt repayment if the project had not been completed. PDVSA is responsible for its share of the guarantees under Sincor. Factors, which could have positive rating implications for the project would be: continued strengthening of operational performance, increased confidence in the on-going reliability of feedstock supplies, improvement in debt service coverage ratios, or moderation of the social and political stresses in Venezuela. Alternatively, any resumption of strikes, increased social upheaval, or actions that might adversely affect the operating capacity and financial condition of PDVSA could have a negative impact on the rating. *********** 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. 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