/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/031001.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, October 1, 2003, Vol. 4, Issue 194 Headlines A R G E N T I N A BRONI: Credit Check Ends CALERA DEL BUEN AYRE: Court Designates Receiver For Bankruptcy CAYASTA COMERCIAL: Reorganization Process Starts CONSOMME: Reorganization Schedule Set DIRECTV LA: Joint Motion To Extend Exclusive Periods GRAN SEGURIDAD: Reorganization Ends In Bankruptcy GRUPO PIACERE: Court Orders Bankruptcy LENS EXPRESS: Court Sets Schedule For Reorganization LITHOGRAFIC: Credit Verification Deadline October 27 MULTIMEDICAL: Voluntarily Seeks Reorganization OBRARGENT: Enters Bankruptcy On Court Orders REFRIGERACION TECNOLOGICA: Deadlines For Receiver's Reports Set RESTAURANTE LO PRETE: Receiver Check Claims For Bankruptcy SILVER HOLDINGS: Court Orders Bankruptcy SPANISH HOSPITAL: Workers Seeking Financial Aid SUITES DE VACACIONES: Receiver Prepares Individual Reports TERRIBETTI: Credit Check Closes Today B E R M U D A GLOBAL CROSSING: Requests Alcatel Deferred Payment Pact Approval B R A Z I L BCP: Obtains Regulatory Approval To Migrate To SMP BCP: Receives Immediate ROI from Micromuse's Netcool Solutions EMBRATEL: Judge Conar Rules in Embratel's Favor LIGHT SERVICOS: To Adhere To BNDES Cap Plan TELEMAR: Summary Of Notice To Shareholders C H I L E MASISA: Places $102.9M In New Bonds To Refinance Debt C O L O M B I A AVIANCA: To Take Over Bogota-Fort Lauderdale Route M E X I C O CFE: S&P Assigns mxAAA Rating To Proposed $546M Issue CONE MILLS: Announces Financing, Directors GRUPO TMM: Cuts Off Negotiations With KCS ISPAT INTERNATIONAL: Announces Senior Management Changes HOLLINGSWORTH ON WHEELS: Sells International Ops To Pay Debt SAVIA: Completes Transaction With Fox Paine VITRO: Announces Proposed Notes Issuance P E R U IMPSAT PERU: Reveals $10M Investment in Lima Project - - - - - - - - ================= A R G E N T I N A ================= BRONI: Credit Check Ends ------------------------ The reorganization of Argentine company Broni S.A. moves a step further as the credit verification process is due to be completed today. The Company's receiver, Mr. Alberto Leon Surijon, will prepare the individual reports, which must be submitted to the court on November 12. The receiver will also prepare a general report after the individual reports are processed at court. The informational assembly is set the take place on August 25. An earlier report by the Troubled Company Reporter - Latin America indicated that the Company entered bankruptcy on orders from Buenos Aires' Court No. 16. CONTACT: Alberto Leon Surijon Palestina 906 Buenos Aires CALERA DEL BUEN AYRE: Court Designates Receiver For Bankruptcy -------------------------------------------------------------- Buenos Aires accountant Juan Carlos Sosa was assigned receiver for the bankruptcy of local company Calera del Buen Ayre S.A., relates Infobae. The city's Court No. 24 holds jurisdiction over the Company's case. The receiver will verify creditors' claims until October 22 next year, the source adds. After that, he will prepare the individual reports, which are to be submitted to the court on November 24. The general report should follow on February 3, 2004. CONTACT: Juan Carlos Sosa Viamonte 783 Buenos Aires CAYASTA COMERCIAL: Reorganization Process Starts ------------------------------------------------ The Civil and Commercial Tribunal of the Argentine province of Santa Fe approved a petition for reorganization filed by local company Cayasta Comercial S.A., reports Infobae. Ms. Maria Eugenia Pellegrini, a local accountant, was designated as the Company's receiver. Her duties include the verification of credit claims and preparation of the individual and general report. The court gave creditors until November 3 to present their claims to the receiver for verification, Infobae reveals, without stating whether the court has set the deadlines for the filing of the receiver's reports. CONTACT: Cayasta Comercial S.A. Hipolito Yrigoyen 3442 Santa Fe Maria Eugenia Pellegrini San Martin 3124 Santa Fe CONSOMME: Reorganization Schedule Set ------------------------------------- Buenos Aires' Court No. 10 orders Mr. Manuel Gonzales, receiver for Consomme S.A., to verify proofs of claims from the Company's creditors until November 20 this year. A report by local news portal Infobae relates that the court has approved the Company's motion for "Concurso Preventivo", giving permission for reorganization. The receiver is also required to prepare the individual and general reports, which are to be submitted on February 6, and March 19, 2004, respectively. The informative assembly is set to take place on August 14 next year. CONTACT: Manuel Gonzalez Deheza 2357 Buenos Aires DIRECTV LA: Joint Motion To Extend Exclusive Periods ---------------------------------------------------- DirecTV Latin America LLC, the Official Committee of Unsecured Creditors and Hughes Electronics Corporation asks the Court to extend the exclusive period by which the Debtor may file a plan to October 15, 2003 and the exclusive period to solicit acceptances of that plan to December 12, 2003. Joel A. Waite, Esq., at Young Conaway Stargatt & Taylor LLP, in Wilmington, Delaware, related that the Debtor, the Committee and Hughes have been engaged in negotiations with respect to valuation and the terms of a plan of reorganization. The parties agree that it would be productive to the plan formulation process, and the Chapter 11 case generally, to extend the Exclusive Periods. The Court will convene a hearing on October 8, 2003 to consider the Debtor's request. By application of Del.Bankr.LR 9006-2, the Debtor's exclusive filing period is automatically extended through the conclusion of that hearing. DirecTV Latin America Bankruptcy News, Issue No. 13; Bankruptcy Creditors' Service, Inc., 609/392-0900) GRAN SEGURIDAD: Reorganization Ends In Bankruptcy ------------------------------------------------- Gran Seguridad S.R.L., which was undergoing reorganization, is now bankrupt, reports Argentine news source Infobae. Mar del Plata's Court No. 13 rules that the Company is "Quiebra Decretada". Working with Clerk No. 13, the court assigned Mr. Ruben Abel Arrate, a local accountant, as receiver for the process. His tasks include the verification of credit claims and the preparation and submission of the individual and general reports. CONTACT: Gran Seguridad S.R.L. San Lorenzo 5821 Mar del Plata GRUPO PIACERE: Court Orders Bankruptcy -------------------------------------- Buenos Aires-based Grupo Piacere was declared bankrupt by the city's Court No. 1, reports local news portal Infobae. Clerk No. 2 assists the court on the case, the source adds. The credit verification process will end on November 6. Creditors must present their proofs of claims to the receiver, Mr. Otto Reinaldo Munch, who will do the verifications. The receiver's duties also include the preparation of the individual and general reports. However, Infobae did not mention whether the court has set the deadlines for the submission of these reports. CONTACT: Otto Reinaldo Munch Maipu 509 Buenos Aires LENS EXPRESS: Court Sets Schedule For Reorganization ---------------------------------------------------- The individual reports for the reorganization of Buenos Aires company Lens Express S.A. must be submitted to the court on November 17 this year. These reports, will be prepared by the Company's receiver, Ms. Marta Estela Acuna, after the credit verification process ends on October 15 this year. A report by Argentine news portal Infobae indicates that the general report, which is to be prepared after the individual reports are processed at court, must be submitted on December 18. The informative assembly will be on May 6, 2004, the report adds. The Company obtained permission to undergo reorganization from Buenos Aires' Court No. 22. The city's Clerk No. 43 aids the court on the case. CONTACT: Lens S.A. Montevideo 160 Buenos Aires Marta Estela Acuna Combate de los Pozos 129 Buenos Aires LITHOGRAFIC: Credit Verification Deadline October 27 ---------------------------------------------------- Creditors of Lithografic S.A. have until October 27 to have their claims verified for the Company's bankruptcy process. A report by Argentine news source Infobae relates that the province's Civil and Commercial Tribunal ordered the Company's bankruptcy. The source, however, did not reveal whether the court has assigned a receiver to the Company. Aside from verifying creditors' claims, the receiver is also required to prepare the individual and general reports on the process. CONTACT: Lithografic S.R.L. Ave General Paz 5055 Santa Fe MULTIMEDICAL: Voluntarily Seeks Reorganization ---------------------------------------------- Multimedical S.A., which is based in Buenos Aires, is seeking court approval to undergo reorganization. A report by Argentine news portal Infobae indicates that the Company has voluntarily filed a motion for "Concurso Preventivo" to the court. The city's Court No. 5, which works with Clerk No. 10, holds jurisdiction over the Company's case, the source adds. However, it is not clear whether the court is likely to approve the motion or not. CONTACT: Multimedical S.A. Parana 1002 Buenos Aires OBRARGENT: Enters Bankruptcy On Court Orders -------------------------------------------- Buenos Aires Court No. 15 rules that local company Obrargent S.A. is "Quiebra Decretada". A report by Argentine news source Infobae indicates that the city's Clerk No. 29 works with the court on the case. The court-appointed receiver, Mr. Carlos Lauri, will verify claims for the bankruptcy process. The report says that creditors must present their proofs of claim to the receiver before the December 9 deadline expires. The receiver is also required to prepare the individual and general reports on the process, but the source did not mention whether the court has set the deadlines for the filing of these reports. CONTACT: Obrargent S.A. Terrado 1242 Buenos Aires Carlos Lauri Avenida de Mayo 633 Buenos Aires REFRIGERACION TECNOLOGICA: Deadlines For Receiver's Reports Set --------------------------------------------------------------- Mr. Natalio Kinsbruner, the receiver for Buenos Aires-based Refrigeracion Tecnologica S.A., will submit the individual reports for the Company's reorganization on December 9 this year. Local news source Infobae relates that the general report must follow on February 25, 2004. The Troubled Company Reporter - Latin America earlier reported that the city's Court No. 26 approved the Company's motion for reorganization. Documents submitted to the court revealed that the Company stopped making debt payments since December 20 last year. The court orders the informative assembly to take place on August 17 next year, Infobae adds without revealing the intended venue for the meeting. CONTACT: Refrigeracion Tecnologica S.A. Ave. Gaona 1295 Buenos Aires Natalio Kinsbruner Marcelo T. de Alvear 1671 Buenos Aires RESTAURANTE LO PRETE: Receiver Check Claims For Bankruptcy ---------------------------------------------------------- Ms. Adriana Elissi, receiver for Buenos Aires company Restaurante Lo Prete S.A.C.I., will verify creditors' claims for the Company's bankruptcy until November 14 this year. After that, she will prepare the individual reports. Argentine news source Infobae relates that the city's Court No. 14 ordered the Company's bankruptcy. Clerk No. 28 works with the court on the case. The deadline for the submission of the individual reports is December 30 this year. The receiver will also prepare the general report, which must be filed at the court on March 12 next year. CONTACT: Restaurante Lo Prete S.A.C.I. Luiz Saenz Pena 749 Buenos Aires Adriana Elisii Ave Cabildo 2040 Buenos Aires SILVER HOLDINGS: Court Orders Bankruptcy ---------------------------------------- Argentine company Silver Holdings S.R.L. enters bankruptcy on orders from Buenos Aires Court No. 6, reports local news source Infobae. The city's Clerk No. 12 works with the court on the case. The receiver, Mr. Juan Vilanova, will verify creditors' claims until December 1 this year. The Company's creditors must present their proofs of claim to the receiver before the deadline expires. After the verification process is completed, the receiver will prepare the individual reports, and then the general report. However, the source did not mention whether the court has set the deadlines for the filing of these reports. CONTACT: Silver Holdings S.R.L. Ave Cordoba 966 Buenos Aires Juan Vilanova Hipolito Irigoyen 1349 Buenos Aires SPANISH HOSPITAL: Workers Seeking Financial Aid ----------------------------------------------- Employees and associates of the Spanish Hospital of Buenos Aires are struggling to seek for financial assistance to help reduce the clinic's debts, reports EFE. Spanish Hospital has some US$28.3 million in debts and has been in receivership since last year. According to the report, the clinic's employees have sent a letter to the Spanish Embassy requesting financial aid. Trade union representatives have asked the Galicia Health Foundation, which manages another clinic in the Argentine capital, to take over the Spanish Hospital, the report adds. But according to Jose Maria Hernandez Cochon, a health official with the Galician regional government, the northwestern Spanish region's government would not take over the Spanish Hospital. "The Galician regional government cannot take control of the Spanish Hospital, but we will provide help in the form of our knowledge and experience," Hernandez Cochon said Saturday after a visit to the Galician Center of Buenos Aires, where he donated US$10,000 worth of medical supplies. Hernandez Cochon said the Galician regional government was working on a plan to provide social and health services for Spanish immigrants living in Argentina. SUITES DE VACACIONES: Receiver Prepares Individual Reports ---------------------------------------------------------- Mr. Marcelo Edgardo Mirasso, the receiver for Suites de Vacaciones S.A., closes the verification process for the Company's bankruptcy. As ordered by the court, the receiver starts preparing the individual reports, which must be submitted on November 12. After the individual reports are processed at court, the receiver will prepare a general report to be filed on December 29. It is expected that the bankruptcy process will end with the liquidation of the Company's assets to reimburse its creditors. CONTACT: Marcelo Edgardo Mirasso Ave. Rivadavia 666 Buenos Aires TERRIBETTI: Credit Check Closes Today ------------------------------------ The credit verification process for the bankruptcy of Argentine company Terribetti S.R.L. closes today. The Company's receiver, Ms. Silvia Amanda Ferrandina, who verified the claims, will prepare the individual reports. An earlier report by the Troubled Company Reporter - Latin America indicated that the Company entered bankruptcy on orders from Buenos Aires' Court No. 4. The receiver will also prepare a general report after the individual reports are processed at court. However, local sources did not mention whether the court has set the deadlines for the submission of these reports. CONTACT: Silvia Amanda Ferrandina Asuncion 4642 Buenos Aires ============= B E R M U D A ============= GLOBAL CROSSING: Requests Alcatel Deferred Payment Pact Approval ---------------------------------------------------------------- Paul M. Basta, Esq., at Weil Gotshal & Manges, LLP, in New York, related that the Global Crossing Debtors are a party to a MAC Project Development and Construction Contract, dated June 2, 1998, with Alcatel Submarine Networks, and Alcatel Submarine Networks, Inc. The Debtors and Alcatel agreed to the deferment of payments due under the MAC Contract. This agreement is embodied in that certain Deferred Payment Agreement dated as of July 1, 2003. Pursuant to the MAC Contract, Alcatel agreed to develop and construct a subsea ring configuration system for the Debtors that contains three of the Debtors' landing and cable stations at various locations on the United States and the United States Virgin Islands and is connected by submersible fiber optic cables. The MAC Contract was amended to provide for upgrades to the MAC System not originally contemplated under the contract. The purchase price of the Upgrades is $21,700,000 and the final payment for the Upgrades is due December 1, 2003. Due to the prolonged time they have spent in Chapter 11 and their available liquidity, the Debtors commenced negotiations with Alcatel to defer a portion of the payment due under the MAC Contract. After extensive arm's-length negotiations, Alcatel agreed, pursuant to certain conditions, to allow the Debtors to defer a portion of the Final Payment. The salient conditions are: (1) Written notice by the Debtors to Alcatel seven days before the Final Payment Date of their intent to defer a portion of the amount, subject to a $2,500,000 cap; (2) Payment in full of all invoices issued under the MAC Contract, including that portion of the Final Payment not being deferred, that are due on or before the Final Payment Date; (3) Court approval of the Deferral Agreement prior to the Final Payment Date; (4) Effectiveness, on or before the Final Payment Date, of a GX Chapter 11 plan of reorganization, which Plan will be either the Plan or another plan of reorganization with respect to the Debtors, the terms and conditions of which are not less favorable to Alcatel than those of the Plan; and (5) Delivery to Alcatel, on the Final Payment Date, of a promissory note substantially in the form and substance of the Deferral Agreement, the salient terms of which are: (a) The Deferred Amount and all other outstanding amounts under the Note will be due and payable in full on September 1, 2004; (b) The unpaid principal balance will bear interest at one-year LIBOR from the date of execution of the Note, except that, from and after an Event of Default, the unpaid principal balance will bear interest at LIBOR plus 2%; (c) Interest will be calculated daily on the unpaid daily principal balance outstanding from time to time, on the basis of a 360-day year; and (d) Upon the occurrence of any of these events, which will constitute an Event of Default, all liabilities of the Debtors, including the entire unpaid principal of the Note and accrued interest, will immediately become due and payable, at Alcatel's option: -- failure of the Debtors to perform any obligation, liability, or claim to Alcatel, or to pay principal or interest when due; -- the dissolution, merger, or consolidation of the Debtors or any guarantor; -- the filing of a petition in bankruptcy or similar proceeding by or against the Debtors; -- the issuing of any attachment or the filing of any lien against any property of the Debtors or any guarantor; -- the taking of possession of any substantial part of the property of the Debtors or any guarantor at the instance of governmental authority; or -- the breach of any representation or warranty of the Debtors in connection with the Note. The conditions precedent required to allow the Debtors to exercise the deferral are not onerous. Furthermore, the ability to defer the payment of up to $2,500,000 is beneficial to the Debtors' estates because it outweighs the interest the Debtors are required to pay under the Note. The interest under the Note, calculated at one-year LIBOR, is reasonable, and, in the Debtors' business judgment, less than the Debtors would likely be required to pay should they attempt to finance the Final Payment through a third party. The Debtors asked the Court to approve their Deferred Payment Agreement with Alcatel. (Global Crossing Bankruptcy News, Issue No. 47; Bankruptcy Creditors' Service, Inc., 609/392-0900) =========== B R A Z I L =========== BCP: Obtains Regulatory Approval To Migrate To SMP -------------------------------------------------- Sao Paulo mobile operator BCP is migrating to a new regulatory framework called SMP in order to comply with a requirement to be bought by Claro, a company owned by Mexico's America Movil. In a report by Business News Americas, Brazil's telecoms regulator Anatel said BCP's switch from SMC to SMP already has its approval. The government introduced SMP to allow early consolidation of the sector in exchange for tougher commitments to quality of service and certain pro-competition modifications. With SMP, BCP's customers will now be able to choose which long distance carrier to use for each call, mirroring the system in Brazil's fixed line long distance segment. Under SMC, customers had no choice and mobile operators could reap larger margins on long distance calls. America Movil, which owns six mobile subsidiaries in Brazil under the brand Claro, announced plans to purchase BCP for some US$625 million from a group of 34 banks. BCP, owned by US BellSouth and Brazil's Verbier, provides services to some 1.7 million clients in the metropolitan area of Sao Paulo. CONTACT: BCP S.A. Rua Fl>rida, 1970 4o andar Sao Paulo - SP Tel: 55 11 5509-6428 Fax: 55 11 5509-6257 Home Page: http://www.bcp.com.br BCP: Receives Immediate ROI from Micromuse's Netcool Solutions -------------------------------------------------------------- Leading National Cellular Provider Heightens Customer Satisfaction and Lowers Operational Expenses with the Netcool(R) Service Management Solution and Icaro Technologies' Professional Services Micromuse Inc. (Nasdaq: MUSE), the leading provider of business and service assurance software, on Monday announced that BCP Telecomunicacoes has deployed the Netcool(R) family of products across its service infrastructure to help streamline critical IT management and provide a centralized view of its wireless operations systems. BCP serves three million customers per year and is one of Brazil's largest providers of wireless services over voice, radio transmission, and IP networks. "BCP is always looking for ways to improve customer satisfaction, and the reorganization of our Operations Center is a significant initiative that will help us achieve this important objective," explained Antonio Paulino, Operations Center Manager at BCP. As part of the undertaking to reorganize its Operations Center, BCP is using Netcool solutions to consolidate thousands of disparate events, which helps the operations team increase productivity, respond more efficiently to service outages, and have more time to focus on developing new and competitive customer offerings. The Netcool suite allows BCP to collect and correlate network information, analyze potential service-impairing events, and inform appropriate personnel about how service levels are performing. Using Netcool software, BCP's network operators can view the impact of network faults on services and customers, and prioritize time and resources to manage customer quality of service (QoS) more effectively. "Micromuse's Netcool solution for wireless infrastructures helps service providers such as BCP ensure the high service levels required to retain their current customers, while allowing them to rationalize and reduce their overall cost of ownership," said Aric Bendorf, Micromuse's Sales Director for Latin America. "Netcool provides end-to-end visibility and realtime monitoring of the wireless network infrastructure, bridging the gaps between network fault data, service-level monitoring, and customer management. Its unmatched scalability makes it the best-equipped to support the largest, most complex networks in the world." Brazil's Icaro Technologies, Micromuse's largest training partner in Latin America, was responsible for deploying the Netcool suite at BCP. To properly implement and configure Netcool software to address BCP's expectations, Icaro used a unique implementation process (based on Project Management Institute and Rational Unified Process practices), to determine BCP's requirements, manage human and IT resources, control schedule, curb risks, develop the customizations, and deploy the system with quality. The final solution also included a series of training sessions and a period of assisted operations to ensure that Netcool reliably manages the availability of BCP's voice and data networks. "The Netcool solution provides BCP with a clear and concise view of the network, as well as a set of reports allowing the NOC, engineering, and marketing teams to develop strategies based on the status of BCP's infrastructure and services," said Kleber Stroeh, Director of Technology at Icaro Technologies. "With this business intelligence, Netcool software will help BCP reduce operating and maintenance expenditures, and increased staff productivity," said Kleber Stroeh, Director of Technology at Icaro Technologies. About Netcool(R) Micromuse's Netcool(R) software solutions provide businesses with the assurance that their applications and services are up and operating. By allowing our customers to see what's happening throughout the infrastructure in realtime, Netcool applications enable them to respond to problems before revenue-supporting services are affected. Netcool applications install out-of-the-box, deploy rapidly and scale to the largest environments. Micromuse's flagship, Netcool/OMNIbus(TM) application, includes a library of off-the- shelf software modules that allow our customers to collect and consolidate information from more than 1,000 environments spanning applications, systems, voice and IP, cable/broadband, switches and routers, and enterprise management systems. About BCP Telecomunicacoes BCP is one of the largest Brazilian cellular providers. With headquarters in Sao Paulo, BCP covers an area whose population is greater than 18 million people. Since 1997, BCP has achieved many realizations such as the activation of more than 150 thousand TDMA lines in a period of only two weeks. BCP is in permanent search for technologies that help them improve customer satisfaction. About Icaro Technologies Icaro Technologies has been a Micromuse partner since 1999, having developed large-scale Netcool(R)-based projects in Latin America, such as a voice, data and Internet networks fault and service level management solution for AT&T LA, covering five countries. The success of Micromuse's Netcool and Icaro's professional services led the partners to the deployment of Netcool in other major companies in Brazil and abroad, such as Diveo, Telefonica, BCP, Telemar and others. Icaro Technologies is the only training partner certified by Micromuse in Latin America. In addition to Network Management, Icaro Technologies offers services in E-business and Digital Security areas. About Micromuse Micromuse Inc. (Nasdaq: MUSE) is the leading provider of business and service assurance software solutions. The Netcool(R) software suite provides organization with the assurance that their IT systems are supporting and driving profits 24 hours a day. Unlike traditional infrastructure management systems, Netcool solutions provide realtime end-to-end visibility and accurate troubleshooting from a business perspective. Such business intelligence allows organizations to respond to problems quickly, streamline workflow processes and improve business uptime. Micromuse customers include AT&T, BT, Cable & Wireless, Charles Schwab, Deutsche Telekom, Digex, EarthLink, GE Appliances, ITC DeltaCom, J.P. Morgan Chase, T-Mobile and Verizon. Headquarters are located at 139 Townsend Street, San Francisco, Calif. 94107. Tel: (415) 538-9090. The Web site is at www.micromuse.com Micromuse and Netcool are registered trademarks of Micromuse Ltd. All other trademarks and registered trademarks in this document are the properties of their respective owners. Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties. CONTACT: Micromuse Nicole Fortenberry Phone: 212-895-8732 Email: nicole@micromuse.com Icaro Technologies Fernando Moraes Phone: 55-19-3237-7878 Email: fernando@icaro.com.br EMBRATEL: Judge Conar Rules in Embratel's Favor ----------------------------------------------- Embratel's rights have been recognized again by Judge Conar. The Council on Monday suspended the TV commercial conveyed by Intelig in which actress Regina Cas� states that making calls from a cellular phone through Embratel's competitor code is cheaper during peak hours. Embratel proved the existence of a series of restrictions on such calls, which was confirmed by Conar. The decision was made through an injunction, and Embratel and Intelig were notified. This month, Judge Conar also ruled in favor of Embratel regarding a petition filed against Telemar for unauthorized utilization of the expression "VOCE PODE" ("YOU CAN"). Embratel employed this slogan on its direct mail to customers since March of 2002, and last May Telemar used the same expression on a flyer/direct mail. Since the utilization of the aforementioned expression occurs under the very same concept conceived by Embratel, Conar's opinion with respect to petition 141/03 was in favor of Embratel. Embratel is the premium telecommunications provider in Brazil, offering a wide range of telecommunication services, such as advanced voice, high-speed data transmission, internet, data communication by satellite and corporate networks. The company is national leader in data and internet services, in a privileged position to become the Latin American carrier with an all- distance network. Embratel network has national coverage with almost 17,500 miles of optic cables, representing around one million miles of fiber optics. CONTACT: EMBRATEL Advertising, Press and Public Relations Department Further information: (02121) 2121 7837 / 2121 6291 Fax: (02121) 2121 7791 Mid-West- Phone: (02161) 242-9058 / 2845 / 916-9188 Attention: Flavio Resende E-mail: cmsocial@embratel.net.br Embratel on the internet: www.embratel.com.br LIGHT SERVICOS: To Adhere To BNDES Cap Plan ------------------------------------------- Brazilian distributor Light informed the Sao Paulo stock exchange Bovespa of its decision to adhere to national development bank BNDES's capitalization plan for the sector. Business News Americas recalls that on September 16, BNDES announced an initial budget of BRL3 billion (US$1.02 billion) that will be used to finance up to 50% of a distributor's short- term debt. Speculation is that Light will borrow up to BRL562 million, equal to half of its short-term debt. Under the program, shareholders are required to transform all of their loans to their subsidiaries into capital. In Light's case, parent company France EDF should capitalize BRL1.1 billion of the subsidiary's debt. As a likely result, Light's total debt will fall to BRL3 billion from BRL4.2 billion. CONTACT: LIGHT SERVICOS DE ELETRICIDADE S.A. Avenida Marechal Floriano, 168 20080-002 Rio de Janeiro, Brazil Phone: +55-21-2211-2794 Fax: +55-21-2211-2993 Home Page: http://www.lightrio.com.br Contact: Bo Gosta Kallstrand, Chairman Michel Gaillard, President and CEO Joel Nicolas, Executive Director, Operation Paulo Roberto Ribeiro Pinto, Executive Director, Investor Relations and CFO TELEMAR: Summary Of Notice To Shareholders ------------------------------------------ Telemar Norte Leste S/A announced that the Company's Board of Directors declared on September 25, 2003 "interest on capital" ("JCPs") for the maximum amount of R$ 870 million. The Company's Executive Board authorized that JCPs in the amount of R$ 150,472,774.50 be credited to the Company's shareholders based upon their holdings as of September 30, 2003. The Company's relevant bodies will review the following payment details for ratification by April 30, 2004: 1. Amounts to be credited: Holders on September 30, 2003 of Ordinary Shares (TMAR3) and Class "B" Preference Shares (TMAR6) will be allocated JCPs in the gross amount, per thousand shares, of R$ 0.59, which net of withholding income tax amounts to R$ 0.50. Shareholders of Class "A" Preference Shares (TMAR5) will be allocated JCPs in the gross amount per thousand shares of R$ 0.65, which net of withholding income tax amounts to R$ 0.55; 2. Remuneration of allocated JCPs: The amounts above will bear interest from the allocation date through to the end of the current fiscal year at the CDI rate for that period and from January 1, 2004 through to the date of payment at the TR rate; 3. Payment: Payment dates will be those established by the Company's relevant bodies, as review for approval by April 30, 2004; 4. Taxation: The amounts are subject to the IRRF (withholding income tax). To prevent withholding, exempt shareholders must file documentation at the Banco do Brasil branch where they bank or another bank by October 3, 2003; 5. Trading Date "ex-JCPs": Shares will be traded "ex-Interest on Capital" as of October 1, 2003, based on their equity position as of September 30, 2003. MARCOS GRODETZKY, Chief Financial and Investor Relations Officer ========= C H I L E ========= MASISA: Places $102.9M In New Bonds To Refinance Debt ----------------------------------------------------- As part of an effort to refinance its own liabilities as well as the liabilities of its subsidiaries, Chilean particle board manufacturer Masisa SA (MYS) announced Friday the domestic placement of up to US$102.9 million in new bonds. According to Dow Jones, the proposed placement was approved by an extraordinary board of directors meeting on Thursday. The total placement will be done in inflation-indexed Chilean pesos and will include a long-term fixed-amount line of up to US$77.17 million with a maturity of up to 21 years, and a 10-year bond line of up to the same amount. The exact breakdown between the two tranches will be determined as the placement proceeds, a spokesman based in the U.S. said. Masisa is South America's largest manufacturer of medium density fiberboard and particle board, in its raw, melamine, laminated, and wood veneer versions, with major market shares in Chile, Argentina, Brazil, and Mexico. It also holds forestry assets in Chile and Argentina. =============== C O L O M B I A =============== AVIANCA: To Take Over Bogota-Fort Lauderdale Route -------------------------------------------------- Colombian carrier Avianca will start flying the Bogota-Fort Lauderdale route October 16 after the airline obtained authorization from regulators to provide the service, which defunct Aces left. A report released by the Florida Sun-Sentinel relates that service to Colombia began 10 months ago amid high hopes for the first direct air connection between Broward and South America. Alianza Summa, a consortium of three Colombian carriers, including Avianca and Aces, marketed the flights. But they were actually operated with Aces planes and crews. So when Aces' shareholders approved its liquidation at the back of the airline's struggles to deal with its ailing situation, flights were suspended, says the report. ACES, which began operations in 1972, had reported a loss of US$9 million in the first four months of the year, up from a US$7 million loss in the same period of 2002. The airline had a cash shortfall of US$33 million and its liabilities totaled US$76 million as of April. =========== M E X I C O =========== CFE: S&P Assigns mxAAA Rating To Proposed $546M Issue ----------------------------------------------------- Standard & Poor's (S&P) assigned an mxAAA rating to Mexico's state power company CFE's proposed MXN6-billion (US$546 million) issue of stock market certificates due 2103 and guaranteed by income from future sales. Citing an S&P statement, Business News Americas reports that the rating is based on CFE's government ownership, which affords it liquidity and flexible financing. Offsetting this is the fact that there is no clear policy on setting rates, which would allow the CFE fully to compensate for higher costs. The certificates will help finance CFE's public works program, S&P said. The issue would be through a trust fund, BMV President Guillermo Prieto Trevino said, adding that the stock exchange expects CFE to issue the certificates by year-end. S&P revealed in the statement that CFE has a US$1.6-billion line of credit, of which US$750 million is available as working capital, while its cash balance totaled US$2.4 billion at the end of first semester this year. CONE MILLS: Announces Financing, Directors ------------------------------------------ Cone Mills Corporation announced Monday that it had received the necessary orders from the U. S. Bankruptcy Court in Delaware to continue business as usual. A further hearing will be held on October 10. In addition, the company confirmed the election of three new directors, Charles L. Barry, Randall G. Kominsky and Jess M. Ravich. Cone Chairman, President and CEO, John L. Bakane, commented: "We are now focused on moving ahead." Founded in 1891, Cone Mills Corporation, headquartered in Greensboro, NC, is the world's largest producer of denim fabrics and the largest commission printer of home furnishings fabrics in North America. Manufacturing facilities are located in North Carolina and South Carolina, with a joint venture plant in Coahuila, Mexico. GRUPO TMM: Cuts Off Negotiations With KCS ----------------------------------------- Grupo TMM SA won't negotiate further on a US$412-million agreement to sell its 43% stake in Texas Mexican Railway, Mexico's largest railroad, to Kansas City Southern (KCS), a company spokesman said, adding that the Company wants an arbitrator to hear the case as quickly as possible. Bloomberg relates that Grupo TMM's board voted Aug. 18 against selling the stake to KCS as the companies had agreed to in April. According to KCS Chairman Michael Haverty, the parties have 60 days from Aug. 29 to hold "good faith" negotiations before the dispute goes binding arbitration in New York under Delaware laws. Haverty said the Kansas City-based company has not heard from TMM after a one 80-minute meeting on Sept. 11 in Dallas, the only contact following the vote breaking off the sale. KCS remains "ready, willing and able to continue to meet and discuss the issues," he said. Mexico City-based Grupo TMM, which defaulted on $377 million of bonds in May, is holding "intense" talks with its bondholders to renegotiate its debt, Provencio said. The Company had told bondholders before it defaulted that it would use money from the sale of its rail unit to Kansas City to pay debt. CONTACT: Grupo TMM Brad Skinner, Senior Vice President Investor Relations Phone: 011-525-55-629-8725 or 203-247-2420 Email: brad.skinner@tmm.com.mx Marco Provencio Media Relations, Proa/StructurA Phone: 011-525-55-629-8708 and 011-525-55-442- 4948 Email: mp@proa.structura.com.mx Dresner Corporate Services (general investors, analysts and media) Kristine Walczak Phone: 312-726-3600 Email: kwalczak@dresnerco.com ISPAT INTERNATIONAL: Announces Senior Management Changes -------------------------------------------------------- Ispat International N.V., a member of The LNM Group, announced Monday two changes to its senior management team. Dr. Peter Southwick, currently President and CEO of Ispat Inland Inc., a subsidiary of Ispat International N.V., is moving to a corporate role within the Group as Director, Quality Assurance and Application Development. Dr. Southwick's appointment to this role demonstrates the Group's commitment to meeting the expectations of customers with its value added product range and gearing operating units to meet the increasingly higher levels of quality standards required. Dr. Southwick originally joined the former Inland Steel in 1980 after earning bachelor's and doctor's degrees in metallurgy from the University of Cambridge, England, in 1975 and 1978. Prior to occupying the post of President and CEO of Ispat Inland, he held various positions including Head of Quality and Vice President, Operations - Flat Products. He has published numerous technical papers and has this year been serving as Vice Chairman, AISI. He is a member of the Iron and Steel Society, the American Society for Quality and the Institute of Materials. Dr. Louis Schorsch replaces Dr. Southwick as President and CEO of Ispat Inland, effective 1 October 2003. Dr. Schorsch joined the LNM Group earlier this year and has worked on specific assignments in the commercial and organisational areas. Prior to joining the Group, Dr. Schorsch was President and CEO of GSX, an e-commerce platform focused on international steel trade, and a partner at McKinsey & Company, where he was co-leader of its Global Metals and Mining Practice. In the latter capacity, he worked with steel producers globally on strategic, operational and organisational issues. Earlier in his career, Dr. Schorsch was a senior economist with the AISI and commenced his career in the steel industry as a millwright with US Steel. Dr. Schorsch is the author of numerous articles on the steel industry and a regular speaker at industry conferences. He holds a PhD in economics from the American University in Washington DC. Ispat International N.V. is among the top 10 steel companies in the world with integrated steel making facilities in six countries and annual shipments in 2002 in excess of 15 million tons. The company is a member of The LNM Group, the world's second largest and most global steel group, and holds a dual listing on the New York and Amsterdam Stock Exchanges. Currently, Ispat International has major integrated steelmaking operations in the U.S., Canada, Mexico, Trinidad, France and Germany. CONTACT: ISPAT INTERNATIONAL N.V. Paul Weigh, Corporate Communications Tel: +44 20 7543 1172 HOLLINGSWORTH ON WHEELS: Sells International Ops To Pay Debt ------------------------------------------------------------ Textile machinery company John D. Hollingsworth on Wheels has sold its international operations to Trutzschler Group, a textile machinery maker and longtime customer from Germany, for an undisclosed amount, the AP reports, citing a company official. According to Andy Rasor, vice president for administration at Hollingsworth on Wheels, plants in Germany, Brazil and Mexico were sold, as well as a sales and service office in Britain that together employed about 200. The transaction leaves Hollingsworth on Wheels with a 320-worker plant in Greenville County and four sales and service operations in the United States and Canada. Irving T. "Buck" Welling Jr. said proceeds of the sale will be used as capital and to pay debt. He said Hollingsworth on Wheels "isn't generating a lot of profits, but it's still a viable company." SAVIA: Completes Transaction With Fox Paine ------------------------------------------- Savia S.A. de C.V. announced Monday that it had completed its previously announced transaction, on which Fox Paine & Company, LLC, a San Francisco-based private equity firm and certain related parties to Savia, acquired from Savia its ownership in Seminis Inc. As a result, Seminis will be privately held, will no longer be a subsidiary of Savia and Seminis' shares will no longer be listed on the NASDAQ National Market. In addition, tomorrow September 30th 2003, Savia will pay a dividend of U.S.$0.5338 dollars per Savia's Class A share outstanding. Each Savia's ADR is convertible into 4 (four) Savia's Class A shares and Savia's transfer agent in the United States is Bank of New York. Savia, S.A. de C.V. (www.savia.com.mx) participates in industries that offer high growth potential in Mexico and internationally. Its principal subsidiaries include Seminis, a global leader in the production and marketing of fruit and vegetable seeds, Bionova, a company focused on the production, distribution and commercialization of fruits and vegetables and Desarrollo Inmobiliario Omega, a company dedicated to the development of real estate in Northern Mexico. CONTACT: Savia S.A. de C.V. Francisco Garza Phone: (81) 81-73-55-00 Email: fjgarza@savia.com.mx VITRO: Announces Proposed Notes Issuance ---------------------------------------- Vitro, S.A. de C.V. ("Vitro") announced Monday that it intends to issue and sell, subject to market and other conditions, approximately US$250 million of senior notes due 2013 (the "Notes") in a private placement pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (the "Securities Act"). Vitro intends to use the proceeds of the sale of the notes to repay indebtedness. The Notes have not been, and will not be, registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release is neither an offer to sell nor a solicitation to buy the Notes. Vitro, S.A. de C.V. (NYSE: VTO; BMV: VITROA), through its subsidiary companies, is one of the world's leading glass producers. Vitro is a major participant in three principal businesses: flat glass, glass containers, and glassware. Its subsidiaries serve multiple product markets, including construction and automotive glass; fiberglass; food and beverage, wine, liquor, cosmetics and pharmaceutical glass containers; glassware for commercial, industrial and retail uses; plastic and aluminum containers. Vitro also produces raw materials, and equipment and capital goods for industrial use. Founded in 1909 in Monterrey, Mexico-based Vitro has joint ventures with major world-class partners and industry leaders that provide its subsidiaries with access to international markets, distribution channels and state-of-the-art technology. Vitro's subsidiaries have facilities and distribution centers in eight countries, located in North, Central and South America, and Europe, and export to more than 70 countries worldwide. CONTACT: Vitro S.A. de C.V. Investor Relations Beatriz Martinez Phone: +52 81 8863 1258 Email: bemartinez@vitro.com Jorge Torres Phone: +52 81 8863 1240 Email: JTorres@vitro.com Media Relations Albert Chico Phone: +52 81 8863 1335 Email: achico@vitro.com ======= P E R U ======= IMPSAT PERU: Reveals $10M Investment in Lima Project ---------------------------------------------------- The Peruvian unit of Argentine corporate services provider Impsat Fiber Networks, which recently obtained a license to provide fixed line telephony in Peru, revealed plans to invest US$10 million over the next five years to install 60,000 fixed lines in Lima. According to Business News Americas, Impsat's concession is for 20 years, covering private and public lines. The Company has invested US$40 million in its infrastructure over the last three years, and already offers data transmission, Internet access and long distance. *********** 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 * * *