/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/031209.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, December 9, 2003, Vol. 4, Issue 243 Headlines A R G E N T I N A ART BAG: Court Declares Company Bankrupt BUCCIARELLI & FERNANDEZ: Enters Bankruptcy on Court Orders CHAMPIGNONES ARGENTINOS: Receiver Finalizes Credit Check CP DEL PLATA: General Report Due at Court Today CRUCITTA: Court Approves Reorganization Motion DOM CAR: Proof of Claims Process to End December 15 EL JOKER: Court Approves Creditor's Bankruptcy Petition FARMACEUTICA ALVEAR: Receiver Oversees Bankruptcy Process GAYOSO Y CIA: To Undergo Reorganization INTEGRAL MERGER: Claims Due for Filing By December 30 LIDONIA: Claims Verification Ends Today MADERGO: Enters Bankruptcy on Court Orders OPEN SPORTS BUSINESS: Credit Verification Deadline Expires Today SOMEL: Receiver Assigned to Reorganization Process VIDRIERIA DEL PARQUE: Receiver Authenticates Claims B E R M U D A SHIP FINANCE: S&P Rates Corporate Credit 'BB-'; Outlook Stable B R A Z I L EMBRATEL: To Invest $272M Next Year LIGHT SERVICOS: Shares Up After Executives Meet With Creditors TRIKEM: Share Swap Leaves Ratings Unchanged C H I L E ELECTROANDINA: Fitch Lowers Ratings to `BB+'; Negative Outlook C O L O M B I A AVIANCA: Pilots Halt Protest Following Accord ECOPETROL: S&P Assigns 'BBB' Rating; Outlook Stable C O S T A R I C A ICE: Sells $40M of 10-Yr. Bonds E C U A D O R PACIFICTEL: Seeks To Recover Part of $56.8M In Bad Debts M E X I C O GRUPO TMM: Seeks To Conclude Restructuring Process This Month SATMEX: Delays Satmex 6 Launch Until 2Q04 P E R U AHOLD: Sells Santa Isabel In Peru U R U G U A Y BANCO DE CREDITO: Moon Group Renegotiates $121M Debt GALICIA URUGUAY: Initiating New Deposit Swap Survey - - - - - - - - - - ================= A R G E N T I N A ================= ART BAG: Court Declares Company Bankrupt ---------------------------------------- Court No. 15 of Buenos Aires declared Art Bag S.A. "Quiebra", placing the Company under bankruptcy protection, reports Infobae. Clerk No. 29 assists the court on the case, which will close with the liquidation of the Company's assets. Creditors must have their claims authenticated by the receiver before March 2, 2004. The receiver, Buenos Aires accountant Eva Gorsd, will also prepare the individual and general reports, whose filing deadlines were not indicated in the Infobae report. CONTACT: Air Bag S.A. Habana 3352 Buenos Aires Eva Gorsd Paraguay 1125 Buenos Aires BUCCIARELLI & FERNANDEZ: Enters Bankruptcy on Court Orders ---------------------------------------------------------- Argentine company Bucciarelli & Fernandez SRL entered bankruptcy on orders from Buenos Aires Court No. 14. Working with Clerk No. 28, the court assigned Ms. Eva Rodriguez as receiver for the process. The receiver is validating creditors' claims until February 13 next year. The process is undertaken to determine the nature and amount of the Company's debts. Verification results will be used as basis for the distribution of payments after the Company's assets are liquidated. The individual reports on the verification results are to be filed at the court on March 24, followed by the general report on May 10. The general report is to be prepared by the receiver after the individual reports are processed at court. CONTACT: Eva Rodriguez Presidente Peron 1509 Buenos Aires CHAMPIGNONES ARGENTINOS: Receiver Finalizes Credit Check -------------------------------------------------------- Ms. Laura Marletta, receiver for bankrupt Argentine company Champignones Argentinos S.A., ends the credit validation process today. As ordered by Buenos Aires Court No. 23, the receiver will prepare the individual reports on the verification results. Aside from the individual reports, the receiver must also prepare the general report on the case. Local sources, however, did not mention whether the court handling the case has set the filing deadlines for these reports. The Company entered bankruptcy as Judge Villanueva of Buenos Aires Court No. 23 approved the petition filed by the Company's creditor, Sanlu Film S.A. for nonpayment of debt. Clerk No. 45,Dr. Timpanelli, assists. CONTACT: Champignones Argentinos S.A. Maure 1560 Buenos Aires Laura Marletta 7th Floor Room A San Jose de Calazans Buenos Aires CP DEL PLATA: General Report Due at Court Today ----------------------------------------------- The general report for the bankruptcy of Buenos Aires-based Clinica Privada del Plata S.A. is expected to be filed at the city's Court No. 3 today. The Company's receiver, Ms. Ana Maria Valera, prepared the reports after the individual reports were processed at the court. The receiver authenticated the creditors' claims to determine the nature and amount of the Company's debts, the Troubled Company Reporter - Latin America detailed earlier. CONTACT: Ana Maria Varela Talcahuano 768 Buenos Aires CRUCITTA: Court Approves Reorganization Motion ---------------------------------------------- Buenos Aires Court No. 24 approves a motion for "Concurso Preventivo" filed by local company Crucitta S.A., relates Argentine news source Infobae. The Company will undergo reorganization will Mr. Eduardo Echaide as receiver. Creditors are required to have their claims authenticated by the receiver before March 16 next year. Verifications are done to determine the nature and amount of the Company's debts. Clerk No. 47 assists the court on the case, the report adds. CONTACT: Crucitta S.A. Montiel 2636 Buenos Aires DOM CAR: Proof of Claims Process to End December 15 --------------------------------------------------- The credit verification period for the bankruptcy of Buenos Aires Company Dom Car S.A. ends December 15 this year, according to Legalmania Online. Creditors must present their proofs of claims to the Company's receiver, Ms. Nelida Manuel Schub, before the said date. The city's Court No. 12 requires to Company to hand in the individual reports on March 1 next year. These reports contain the results of the verification process. The general report, prepared after the individual reports are processed at court, must be filed on April 12. The Company's assets will be liquidated at the end of the bankruptcy process. Proceeds will be used to repay creditors based on the results of the verifications. CONTACT: Nelida Manuel Schub 6th Floor, Office 51 Paraguay 1307 Buenos Aires EL JOKER: Court Approves Creditor's Bankruptcy Petition ------------------------------------------------------- Judge Fernandez of Buenos Aires Court NO. 19 approved a petition for the bankruptcy of local company El Joker S.R.L. filed by the Company's creditor for nonpayment of debt. Local newspaper La Nacion reports that Clerk No. 37, Dr. Mazzoni, assists the court on the case. The court assigned Mr. Jorge Arias as the Company's receiver with instructions to verify creditors' claims until March 24 next year. The receiver's duties include the preparation of the individual and general reports. FARMACEUTICA ALVEAR: Receiver Oversees Bankruptcy Process --------------------------------------------------------- Ms. Marta Mabel Linares oversees the bankruptcy proceedings of Farmaceutica Alvear 2251 S.R.L.. Creditors must present their claims to the receiver for authentication before February 26 next year. Argentine news source Infobae relates that Buenos Aires Court No. 1 issued the bankruptcy order, while Clerk No. 2 assists. However, the report did not mention the filing deadlines for the receiver's reports. CONTACT: Marta Mabel Linares Parana 145 Buenos Aires GAYOSO Y CIA: To Undergo Reorganization --------------------------------------- Gayoso y cia S.A.C.E.I., which is based in Buenos Aires, will undergo a reorganization. Argentine news portal Infobae indicates that the city's Court No. 7, working with Clerk No. 13, approved the Company's "concurso preventivo" petition. The court assigned local accountant Manuel Alberto Cebeira, a local accountant, as the Company's receiver. He will verify creditors' claims until February 18 next year. The receiver is also required to prepare the individual reports, due on March 31; and the general report, due on May 19. The court also set the informative assembly to be held on November 3 next year. The meeting signals the conclusion of the reorganization process. CONTACT: Manuel Alberto cebeira Ave Cordoba 1247 Buenos Aires INTEGRAL MERGER: Claims Due for Filing By December 30 ----------------------------------------------------- The credit verification process for the bankruptcy of Buenos Aires company Integral Merger S.R.L. ends December 30 this year. Creditors must present their claims to the Company's receiver, Mr. Marcos Livszyc before the said date. Infobae reports that the Buenos Aires Court issued the bankruptcy order in cooperation with Clerk No. 33. The court ordered the receiver to file the individual reports on March 19, 2004 followed by the general report on May 7. CONTACT: Integral Merger S.R.L. Ave Rivadavia 3410 Buenos Aires LIDONIA: Claims Verification Ends Today --------------------------------------- Today is the deadline for the authentication of creditors' claims regarding the bankruptcy of Buenos Aires company Lidonia S.A., an earlier report by the Troubled Company Reporter - Latin America indicated. The Company's receiver, Mr. Antonio Gerardo Pennacchio, who verified claims, will prepare the individual reports. Buenos Aires Court No. 17, which handles the Company's case, requires the receiver to file the individual reports on February 26 next year. After these are processed at court, the receiver will prepare a general report to be filed on April 9 next year. The Company's assets will be liquidated at the end of the process to reimburse creditors. CONTACT: Antonio Gerardo Pennacchio Cramer 2175 Buenos Aires MADERGO: Enters Bankruptcy on Court Orders ------------------------------------------ Madergo S.R.L., which is based in Buenos Aires, entered bankruptcy as the city's Court No. 12, under Judge Ojea Quintana approved a bankruptcy petition filed by its creditor. Clerk No. 23, Dr. Perea works with the court on the case. The credit verification period ends on February 24, relates local newspaper La Nacion. The Company's receiver, Mr. Jose Gonzalez, will validate claims and prepare the individual and general reports. CONTACT: Madergo S.R.L. Las Palmas 2887 Buenos Aires Jose Gonzalez 9th Floor, Room 904 Viamonte 1546 Buenos Aires OPEN SPORTS BUSINESS: Credit Verification Deadline Expires Today ---------------------------------------------------------------- The bankruptcy of Buenos Aires company Open Sports Business S.A. moves a step higher as the deadline for the credit verification process expires today. Creditors, who fail to have their claims authenticated by the receiver, will be disqualified from any payments to be made at the end of the bankruptcy process. Buenos Aires' Court No. 13 issued the bankruptcy order earlier this year, the Troubled Company Reporter - Latin America said in an earlier report. CONTACT: Dante Giampaolo Anchorena 672 Buenos Aires SOMEL: Receiver Assigned to Reorganization Process -------------------------------------------------- Bahia Blanca-based accountant Jose Fama oversees the reorganization of local company Somel S.A., according to Infobae. The receiver will authenticate creditors' claims until March 31 next year. Court No. 2 of the Civil and Commercial Tribunal of Bahia Blanca handles the Company's case with assistance from Clerk No. 3. Infobae, however, did not mention whether the court has set the deadlines for the filing of the receiver's reports. CONTACT: Somel S.A. Alsina 135 Bahia Blanca Jose Fama Alsina 19 Bahia Blanca VIDRIERIA DEL PARQUE: Receiver Authenticates Claims --------------------------------------------------- Buenos Aires accountant Graciela Turco verifies claims for the bankruptcy of Argentine company Vidrieria del Parque S.R.L., relates La Nacion. The local newspaper added that the verifications will end on February 19 next year. Buenos Aires Court No. 22, under Judge Braga declared the Company bankrupt in approval of a bankruptcy petition filed by the Company's creditor for nonpayment of debt. However, La Nacion did not indicate whether the court, which is assisted by Clerk No. 43, Dr. Mata, has set the deadlines for the receiver's reports. CONTACT: Vidrier�a del Parque S.R.L. Pacheci de Melo 3000 Buenos Aires Graciela Turco Cochabamba 4272 Buenos Aires ============= B E R M U D A ============= SHIP FINANCE: S&P Rates Corporate Credit 'BB-'; Outlook Stable -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating to Bermuda-based Ship Finance International Inc., an international shipper of crude oil and a wholly owned subsidiary of Frontline Ltd. In addition, Standard & Poor's assigned its 'B' senior unsecured rating to Ship Finance's proposed $580 million debt offering. The senior unsecured notes are rated two notches below the corporate credit rating because of the large amount of secured debt relative to assets. The rating on the senior unsecured notes is based on a review of preliminary terms and conditions. The outlook is stable. "The ratings on Ship Finance reflect the tanker shipping industry's worse-than-average industry characteristics, the company's initial single credit risk exposure, and its high debt levels," said Standard & Poor's credit analyst Andreas Kindahl. These factors are balanced by the company's contract-based revenue structure, support for the existing long-term charters from a dedicated $250 million bankruptcy remote charter reserve deposit, and a relatively attractive vessel fleet. Initially, Ship Finance will be exposed to a single credit risk, Frontline Shipping Limited (FSL--a non-guaranteed subsidiary of Frontline), who will lease the entire opening Ship Finance fleet under non-cancelable, long-term time charter contracts at fixed rates. Operating costs for the vessels will be outsourced to another Frontline entity, also at fixed rates. Thus, the rating of Ship Finance, despite an expected spin off, will be clearly tied to that of Frontline and one of its non-guaranteed subsidiaries. Frontline's and, subsequently, Ship Finance's operating performance are, by the nature of its assets, affected by the general supply and demand for large tankers, which in turn is driven by the general demand for oil and, to a large extent, OPEC production. In recent years, demand for oil and OPEC production has been variable, leading to sometimes extreme volatility in tanker freight rates and, subsequently, in asset values. Organic growth for Ship Finance is expected to be predominantly within, but not limited to, the tanker segment and with Frontline as counterparty. Nevertheless, future credit risk exposure and fleet composition is uncertain, which is a constraining rating factor. CONTACT: Standard & Poor's Ratings Desks London (44) 20-7847-7400 Paris (33) 1-4420-6705 Frankfurt (49) 69-33-999-223 Stockholm (46) 8-440-5916 Moscow (7) 095-783-4017. ANALYST: Andreas Kindahl Stockholm Phone: (46) 8-440-5907 Leigh Bailey London Phone: (44) 20-7826-3780 Bob Ukiah London Phone: (44) 20-7826-3617 =========== B R A Z I L =========== EMBRATEL: To Invest $272M Next Year ----------------------------------- Brazilian telco Embratel will invest BRL800 million (US$272mn) next year, reports Brazilian news agency Agencia Estado. The amount is in line with the BRL800 million - BRL1 billion estimate released in October, president Jorge Rodriguez said, adding that the 2003 investment budget was cut to BRL600 million from BRL700 million. Mr. Rodriguez did not detail whether the funds could be used to make new acquisitions. In October, he said the operator aims to expand operations outside Brazil, following a failed attempt at purchasing AT&T Latin America. CONTACT: Silvia M.R. Pereira, Investor Relations Tel: (55 21) 2121-9662 Fax: (55 21) 2121-6388 Email: silvia.pereira@embratel.com.br invest@embratel.com.br LIGHT SERVICOS: Shares Up After Executives Meet With Creditors -------------------------------------------------------------- Shares in Brazilian power distributor Light Servicos de Eletricidade rallied in morning trade Friday as company executives are meeting with creditors to reschedule US$664 million worth of debt. Shares in the utility, which is controlled by France's Electricite de France (EDF), soared 15.5% to BR$57.88 (US$0.30) in fair volume while the main Ibovespa index climbed 0.54%. Light said in a statement to the stock exchange Friday it will announce the new profile of that debt after the meeting with foreign and local creditors. A utilities analyst said market talk has Light pledging to pay immediately between 20% and 30% of missed payments and short-term liabilities. The remaining debt would be paid in up to seven years. "From the performance of Lights shares, it looks like their offer is looking interesting to creditors," said the analyst, who declined to be named. "But we are still waiting to hear what kind of rates they are going to offer." Light's total debt is BR$4.8 billion (US$1.65 million). Out of that total, about BR$1.3 billion (US$448.27 million) is owed to its controller. The power company is working to stretch maturities on its debt to be eligible for funds in a BR$3.0 billion (US$ 1.03 billion) capitalization program offered by Brazils development bank BNDES. BNDES announced in September it would lend the funds to help improve the finances of cash-strapped power distributors. The program will be carried out through the purchase by BNDES of debentures in the utilities, which must meet certain criteria before they are eligible for loans. Companies must make a deal with private creditors in which they agree to renegotiate at least 30% of the utilities' short-term debt. New maturities must be at least three years on average, with the first installment coming due 12 months after the signing of the financing contract with BNDES. The bank will lend the same amount of the percentage of the utilities' short-term debt it manages to renegotiate, up to 50%. TRIKEM: Share Swap Leaves Ratings Unchanged ------------------------------------------- Standard & Poor's Ratings Services said Friday that Thursday's conclusion of Trikem S.A.'s (Trikem, B+/Stable/--) share swap offer will not affect its ratings on either Braskem S.A. (Braskem, local currency: BB-/Negative/--; foreign currency: B+/Stable--) or Trikem. On December 4, Braskem concluded a share swap offer (Oferta de Permuta de Acoes) on the Sao Paulo Stock Exchange (Bovespa) to swap Trikem's voting shares for Braskem's 'PNA' preferential shares class 'A'. The offer was accepted by 99% of Trikem's existing voting shareholders. The transaction is essentially equity-based and has no cash flow impact on Braskem; it does not have any effective ownership impact because Trikem was already controlled by Braskem and fully consolidated in the ratings. However, Braskem's increasing voting stake in Trikem (following Braskem's July acquisition of Trikem's relevant voting stakes previously owned by Mitsubishi Chemical Corp. and Nissho Iwai Corp.) bodes well for the full integration of this subsidiary into its operational parent company within the next several quarters, which Standard & Poor's sees as having a long-term positive effect. ANALYST: Reginaldo Takara, Sao Paulo (55) 11-5501-8932 ========= C H I L E ========= ELECTROANDINA: Fitch Lowers Ratings to `BB+'; Negative Outlook -------------------------------------------------------------- Fitch Ratings has downgraded the senior unsecured local and foreign currency ratings of ElectroAndina S.A. (ElectroAndina) to 'BB+' from 'BBB-'. Fitch has also revised the Rating Outlook to Negative from Stable. The downgrade and rating outlook primarily reflect a continued deterioration in credit protection measures and medium term liquidity concerns. The material reduction in the company's credit protection measures is primarily the result of low demand growth, high fixed gas transportation costs, regulatory limits on dispatch and significant competitive pressures for new supply contracts. In addition, the company's leverage remains high. Debt levels increased to finance the company's 400 MW combined cycle Tocopilla plant and the capital investment at the Distrinor subsidiary. Liquidity in the coming years will be tight, as the company's total debt service for 2005 and 2006 will be approximately US$30 million and US$49 million respectively and cash flows from operations has been diminishing, mainly from lower operating income. However, continued growth in the region and the expansion of mining activities should contribute to increased cash flow on the next 12 months. Interest coverage ratios supported by the company's long-term power supply agreements have declined primarily due to lower operational results. Costs increased reflecting US$50 million in annual gas transportation costs associated with the Nor Andino Gasoducto pipeline contract and the 220 MW dispatch limitation that forces the company to purchase in the spot market at higher prices. Through September 2003, ElectroAndina reported revenues and EBITDA of US$143 million and US$25.5 million, respectively. EBITDA covered interest by 2.9 times (x) with total consolidated leverage as measured by debt-to-EBITDA of 6.5x versus 4x and 7.3x respectively as of September 2002. Going forward, Electroandina's EBITDA growth will be dependent on energy demand growth, lower limits on dispatch and lower fuel prices. Energy demand should improve given present copper prices of above US$0.80/lb compared with the last year low prices of US$0.71/lb. ElectroAndina's debt structure is primarily composed of foreign currency denominated syndicated bank loans. At September 2003, total debt was US$220 million, which included a Citibank loan of US$27.2 million which was amortized by US$14 million in November 2003 and will be fully amortized in February 2004; a US$11.3 million KFW bank loan with a US$750,000 semiannual amortization; a US$100 million syndicated loan with ABN AMRO with an amortization schedule of five equal semiannual installments of principal beginning on July 2005; a US$22.6 million subordinated loan, with a July 2007 bullet amortization. Other long term loans include a shareholder loan with Codelco (66% owner of ElectroAndina) in an amount of US$45.4 million under the same terms and conditions as the subordinated loan, and other interest bearing liabilities of US$11 million. Upcoming near-term maturities are manageable and consist of US$25 million in 2004. ElectroAndina benefits from its long term purchased power agreements with financially strong, unregulated, industrial and mining companies, new owned low-cost gas-fired generating plant, and a sound operating strategy. The company's credit profile is additionally strengthened by the inherent support from its controllers, Tractebel and other shareholder, Codelco. Both shareholders have actively participated in the capital structure of the company in the form of subordinated debt warrantor and direct loans, which adds support to the assigned rating of ElectroAndina. Tractebel has also illustrated its commitment to the Chilean market with its recent acquisition of Edelnor, another generation company located in the Sistema Interconectado del Norte Grande (SING). In addition to generation, transmission and commercialization of electricity, ElectroAndina also provides port services and transmission lines maintenance services to third parties, and it is involved in the distribution of natural gas through its subsidiary Distrinor which adds approximately US$6 million to cash flow. ElectroAndina is the largest generator in Chile's northern interconnected transmission system and the third largest overall with installed capacity of 1,028 MW, including the recently constructed 400 MW Tocopilla combined-cycle unit which began commercial operations in February 2001. The company is owned by Inversiones Tocopilla Ltda, which has control, and Codelco. Inversiones Tocopilla is controlled by Tractebel Andino, which is 100%-owned by Tractebel. Tractebel is an experienced operator and has a proven track record of successfully operating private electric utilities worldwide. CONTACT: Giovanny Grosso Phone: +1-312-368-2074 Jason Todd Chicago Phone: +1-312-368-3217 Carlos Diez Santiago Phone: +56 2-206-7171, ext. 25, Media Relations: Matt Burkhard New York Phone: +1-212-908-0540 =============== C O L O M B I A =============== AVIANCA: Pilots Halt Protest Following Accord --------------------------------------------- Pilots at Colombian airline Avianca suspended their 2-week-old go-slow protest late Saturday, says Reuters. The move came after the embattled flagship airline and the pilots reached a preliminary agreement on voluntary dismissals. The carrier, which along with subsidiary SAM operates nearly 50% of Colombia's routes, said the protest had cost about US$300,000 per day since it began Nov. 21. Avianca filed for bankruptcy protection in the United States in March seeking to restructure some US$222 million in unsecured claims by creditors. ECOPETROL: S&P Assigns 'BBB' Rating; Outlook Stable --------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BBB' local currency credit rating to Ecopetrol S.A. Standard & Poor's also affirmed the 'BB' foreign currency credit rating assigned to Ecopetrol. The outlook is stable. The ratings on Ecopetrol (formerly Empresa Colombiana de Petroleos), the state-owned Colombian oil and gas company, and on the Republic of Colombia are equalized because of the government's ownership of the company, the importance of the company to public sector revenues and to the economy of the Republic, and the considerable government oversight of the company's activities, particularly with respect to its financial policy. The ratings consider the urgent need to increase crude oil and gas production and to improve its refining capacity. The ratings also reflect the company's leading position in Colombia's oil & gas industry, a moderate financial policy, and the recent changes to the country's hydrocarbon sector. Ecopetrol is a vertically integrated oil company. In 2002, the company booked revenues and EBITDA of $3.4 billion and $1.3 billion, respectively. As of Sept. 30, 2003, Ecopetrol had a total debt of $137 million. In 2003, the company's production is expected to be around 384,000 boepd. The company is the largest contributor to the Colombian government. In 2003, it is expected to transfer around $1.2 billion to the government through royalties, income taxes, and dividends. The outlook on the Republic of Colombia, and hence on Ecopetrol, is stable. A more flexible financial policy may be granted by the government to improve Ecopetrol's ability to compete under the new regulations established by Decree 1760. Nevertheless, Standard & Poor's does not expect a meaningful change in the company's financial policy and contribution to the government finances in the short-term. ANALYST: Jose Coballasi, Mexico City (52) 55-5279-2014 =================== C O S T A R I C A =================== ICE: Sells $40M of 10-Yr. Bonds ------------------------------- Costa Rica's state-run telecoms monopoly sold US$40 million in ten-year bonds on international markets, Business News Americas reports, citing ICE president Pablo Cobb. The bonds pay 7% interest annually, Cobb said, adding that demand was higher than expected. The recent issue represents the first tranche of ICE's planned US$100-million bond issue. Already, the finance ministry and central bank have approved the sale of US$60 million in bonds, Cobb said. ============= E C U A D O R ============= PACIFICTEL: Seeks To Recover Part of $56.8M In Bad Debts -------------------------------------------------------- Ecuadorian telco Pacifictel is seeking to recoup about 30% of the US$56.8 million it is owed in unpaid phone bills, says local daily El Comercio. According to collection executive Katia Murrieta, Pacifictel's main concern is clients with debts of over US$5,000, who account for 52% of the total debts. These include people who were the victims of identify fraud or whose lines were illegally used by third parties to originate traffic. Pacifictel has 621,218 customers across 10 provinces. The government plans to award a contract to manage Pacifictel and sister company Andinatel early next year. =========== M E X I C O =========== GRUPO TMM: Seeks To Conclude Restructuring Process This Month ------------------------------------------------------------- Mexico City-based multimodal transportation company Grupo TMM expects to finalize its bond restructuring process this month, which totals US$378 million plus interest. According to local news source El Economista, the renegotiation operations include a default registered in May for an amount of US$177 million, plus a debt issued in the international markets for US$200 million expiring in November 2006. "While I cannot define a specific date I can say that we are very close to reach an agreement. I hope we reach the end of this long and important chapter this month," said company spokesman Marco Provencio. In order to achieve its goals, TMM will have to count on the support of 80% of investors. Of the bond that expired in May, TMM only achieved 51% acceptance. To see latest financial statements: http://bankrupt.com/misc/Grupo_TMM.htm CONTACT: GRUPO TMM Juan Fernandez, 011-525-55-629-8778 juan.fernandez@tmm.com.mx or Brad Skinner (IR) 011-525-55-629-8725 /203-247-2420 brad.skinner@tmm.com.mx SATMEX: Delays Satmex 6 Launch Until 2Q04 ------------------------------------------ Mexican satellite operator Satelites Mexicanos (Satmex) told the SEC Thursday that the launch of its fourth satellite Satmex 6 has been pushed back to the second quarter of 2004, relates Business News Americas. "There are two main reasons for [the delay]," said Satmex operations vice president Arturo Gonzalez. One, the satellite operator is yet to reach an agreement with creditors to extend the payment deadline on a US$320-million bond that expires in November 2004. Two, the earliest that Ariane Space could launch Satmex 6 is the second quarter of 2004 because the other launch windows are taken. In previous statements, the Company has put the launch between December 15, 2003 and January 15 of next year, with the possibility it could be moved to later in the first half of 2004. Before any launch can take place, Satmex must restructure US$320 million in senior notes and access financing to pay the launch insurance. Satmex is also negotiating with the federal government over the extension of a debt of private shareholders Principia and Loral, which expires in December next year, although the amount was not specified. Satmex's total debt is US$525 million. ======= P E R U ======= AHOLD: Sells Santa Isabel In Peru --------------------------------- Ahold announced Monday it has reached agreement with Grupo Interbank and a group of investors led by Nexus Group on the sale of 100% of its shares in its Peruvian operation, Supermercados Santa Isabel S.A. The shares of Santa Isabel will be transferred through the Lima stock exchange. Santa Isabel listed its shares on the Lima stock exchange on December 5, 2003. The transaction is expected to close before year-end. The purchase price was not disclosed. Grupo Interbank is one of the largest financial groups of Peru, with investments in banking, mutual funds and insurance. Nexus Group is an active investor in Peru, with operations in entertainment and tourism. The divestment of Santa Isabel in Peru is part of Ahold's strategic plan to restructure its portfolio in order to focus on high-performing businesses and to concentrate on its mature and most stable markets. In this divestment process, Ahold sought a buyer willing to ensure business continuity, providing the best possible option for the customers, employees and suppliers of Santa Isabel and the stakeholders of Ahold. Ahold entered the Peruvian market in 1998. In terms of sales, Santa Isabel is the second largest food retailer in Peru, currently operating 35 stores, of which 8 hypermarkets, and employing approximately 5,000 associates. ============= U R U G U A Y ============= BANCO DE CREDITO: Moon Group Renegotiates $121M Debt ---------------------------------------------------- The South Korean Moon group will cancel its entire US$121 million debt held with Uruguay's central bank and Banco de Credito, reports Business News Americas. Accordingly, the Moon group's payment will come in the form of US$10 million in cash, US$11 million in US treasury bonds and US$93 million in Uruguayan government bonds. The Moon group owned a minority stake in the Uruguayan bank, which was intervened and suspended last year due to financial crisis. Following Banco de Credito's intervention, the group sought to acquire the bank but negotiations with the government failed and the Central Bank opted to liquidate the bank. GALICIA URUGUAY: Initiating New Deposit Swap Survey --------------------------------------------------- Banco de Galicia y Buenos Aires SA announced that its Uruguayan sister, Banco Galicia Uruguay SA, will survey clients to see if they are interested in swapping bonds and certificates handed them in exchange for trapped time deposits, for a mix of cash and Argentine bonds. The survey, according to Dow Jones, was announced Friday in a filing to the Argentine stock exchange. The survey period starts Tuesday and continues until February 13. Galicia Uruguay was intervened and suspended in February last year by Uruguay's central bank due to a liquidity crunch sparked by a run on deposits involving its numerous Argentine clients. At the time, about US$1.2 billion in deposits were frozen. Galicia's suspension was recently extended until March 31. In late 2002, the bank won clients backing for a plan to return deposits to savers over a nine-year period, a process that is under way. In August, the bank offered additional options for returning deposits to its clients, alternatives that were accepted by clients holding about US$180 million in trapped deposits. Under the new proposal, clients would get US$17.50 in cash and US$82.50 in Argentina's BODEN 2012 dollar-denominated bonds, for every US$100 they agree to hand over of the banks bonds or time deposit certificates. The bank will make US$7.50 in cash available to each saver who expresses an interest in the offer, within 72 hours of them doing so. The filing said the bank would swap up to US$300 million of certificates and bonds. It stressed that, at the moment, this was just a proposal to gauge clients' interest, not a formal offer. *********** 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., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. 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 * * *