/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/031215.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, December 15, 2003, Vol. 4, Issue 247 Headlines A R G E N T I N A CLANOR: Starts Bankruptcy Proceedings COLEGIO SAN EDUARDO: To Undergo Reorganization COLPA: Files "Concurso Preventivo" Motion at Court COMERCIAL TUCUMAN: Files Reorganization Petition at Court CRESER CREDITO: Receiver Closes Verification Process Today DEMP: Court Approves Creditor's Bankruptcy Petition DICALIBUS: Enters Bankruptcy on Court Orders DOM CAR: Proof of Claims Process Ends Today EMPESA: Enters Bankruptcy on Court Orders JOYITA: Receiver Prepares Individual Reports for Reorganization MASTEX: Court Assigns Receiver to Oversee Bankruptcy METROGAS: Extends APE Until Dec. 22 METROPOLITANO: Court Approves Debt Restructuring Plan NORFINA SOCIEDAD: Court Orders Bankruptcy PET SUPPLIES: Court Sets Reorganization Schedule PIHUE: Court OK's Reorganization Petition SALUD CONTEMPORANEA: Receiver Oversees Reorganization Process B E R M U D A TYCO INTERNATIONAL: Announces Regular Quarterly Dividend B R A Z I L ALCOA ALUMINIO: FC Rating Outlook Revised to Positive From Stable AMBEV: S&P Revises Foreign Curency Rating Outlook to Positive BANCO CITIBANK: S&P Revises Foreign Currency Rating Outlook ARACRUZ CELULOSE: S&P Affirms Foreign Currency Rating BANCO DO BRASIL: S&P Revises Foreign Currency Rating Outlook BANCO DO ESTADO: S&P Affirms Foreign Currency Rating BANCO ITAU: S&P Changes Foreign Currency Rating Outlook BANCO SANTANDER BRASIL: Foreign Currency Rating Outlook Revised BANCO SANTANDER MERIDIONAL: S&P Affirms Foreign Currency Rating BANCO VOTORANTIM: S&P Revises FC Rating Outlook to Positive BNB: S&P Affirms Ratings, Changes Outlook to Positive BNDES: S&P Affirms Ratings, Changes Outlook to Positive BRASKEM: S&P Affirms Foreign Currency Rating CERJ: S&P Revises FC Rating Outlook to Positive CSN: Foreign Currency Rating Affirmed ELETROBRAS: S&P Affirms Foreign Currency Rating EMBRATEL: Three Local Firms Submit Joint Proposal to Buy Stake GERDAU: Ensures Long-Term Growth Strategy HSBC BANK BRASIL: S&P Revises FC Rating Outlook to Positive KLABIN: S&P Affirms Foreign Currency Rating MRS LOGISTICA: Foreign Currency Rating Revised ODEBRECHT: Foreign Currency Rating Affirmed SABESP: Foreign Currency Rating Revised to Positive SADIA: S&P Revises Foreign Currency Rating Outlook TNL: Foreign Currency Rating Revised TRIKEM: FC Rating Outlook Revised to Positive UNIBANCO: S&P Affirms Foreign Currency Rating VOTORANTIM GROUP: FC Rating Outlook Revised to Positive * Brazil: Outlook on LT FC Rating Revised to Positive M E X I C O GRUPO IUSACELL: Announces Reverse Split - - - - - - - - ================= A R G E N T I N A ================= CLANOR: Starts Bankruptcy Proceedings ------------------------------------- Clanor S.R.L., which is based in Buenos Aires, entered bankruptcy on orders from the city's Court No. 17. Judge Bavastro handles the Company's case with assistance from Dr. Vanoli, the city's Clerk No. 34. Creditors must present their proofs of claims to the Company's receiver, Ms. Eva Bogado, for verification before March 12 next year. The receiver will also prepare the individual and general reports on the case. The source, however, did not mention whether the court has set the filing deadlines for these reports. CONTACT: Clanor S.R.L. Ave Rivadavia 5337 Buenos Aires Eva Bogado 4th Floor, Office A Paraguay 1465 Buenos Aires COLEGIO SAN EDUARDO: To Undergo Reorganization ---------------------------------------------- Colegio San Eduardo S.A. will undergo reorganization. Argentine news source Infobae indicates Buenos Aires Court No. 10 recently approved the Company's motion for "Concurso Preventivo". Estudio Abella, Fernandez, Martinez, the Company's appointed receiver, will authenticate creditors' claims until February 4 next year. Clerk No. 20 assists the court, which requires the receiver to file the individual reports on March 17, 2004. The receiver is also required to prepare a general report after the individual reports are processed at court. This report is for filing on May 3 next year. The informative assembly, one of the last processes in a reorganization, will be held on October 18. CONTACT: Estudio Abella, Fernandez, Martinez Planes 1303 Buenos Aires COLPA: Files "Concurso Preventivo" Motion at Court -------------------------------------------------- Buenos Aires-based Colpa S.A. is seeking court permission to undergo reorganization. Argentine news portal Infobae relates that the city's Court No. 12 is considering the Company's "Concurso Preventivo" filing. Clerk No. 23 assists the court on the case, the report adds. COMERCIAL TUCUMAN: Files Reorganization Petition at Court --------------------------------------------------------- Comercial Tucuman S.R.L., based in Buenos Aires, is seeking court permission to undergo reorganization. A report by Argentine news portal Infobae indicates that the Company filed its "Concurso Preventivo" motion at the city's Court No. 24. Clerk No. 47 assists the court on the case, the report adds. CONTACT: Comercial Tucuman S.R.L. Tucuman 457 Buenos Aires CRESER CREDITO: Receiver Closes Verification Process Today ---------------------------------------------------------- The credit verification period for the bankruptcy of Creser Credito y Servicio S.A. ends today. The Company's receiver, Ms. Cecilia Beatriz Montelvetti examined and authenticated claims to determine the nature and amount of the Company's debts. The receiver will prepare the individual reports after the verification process is closed. These reports must be submitted to the court on February 27 next year, followed by the general report on April 13. The general report is a consolidation of the individual reports after they are processed at court. The informative assembly will be held on September 24, 2004. This is one of the last parts of the reorganization process. Buenos Aires Court No. 22 handles the Company's case, said the Troubled Company Reporter - Latin America in an earlier report. The city's Clerk No. 43 assists the court on this case. CONTACT: Ceicila beatriz Montelvetti General Urquiza 2134 Buenos Aires DEMP: Court Approves Creditor's Bankruptcy Petition --------------------------------------------------- Argentine company Facalu S.R.L. successfully applied for the bankruptcy of Demp S.A., as Buenos Aires Court No. 7, under Dr. Gutierrez Cabello, declared Demp "quiebra". Argentine newspaper La Nacion indicates that the city's Clerk No. 4, Dr. Gardinieri, works with the court on the case. Creditors must present their claims to the receiver, Mr. Luciano Melegari, before March 16 next year. Authentication is required in order for creditors to qualify for payments to be made after the Company's assets are liquidated. CONTACT: Demp S.A. Matheu 1527 Buenos Aires Luciano Melegari 3rd Floor, Office C Bartolome Mitre 1131 Buenos Aires DICALIBUS: Enters Bankruptcy on Court Orders -------------------------------------------- Dicalibus S.A. entered bankruptcy after Buenos Aires Court No. 5 approved a bankruptcy petition filed by the Company's creditor, Lihue Ingenieria S.A. for nonpayment of debt. Clerk No. 9, Dr. Perez Casado, assists the court on the case. Ms. Flora Pazos, the receiver assigned to the case, will validate creditors' claims until March 8 next year. This is done to determine the nature and amount of the Company's debts. The receiver is also required to prepare the individual and general reports on the case, but the source did not reveal whether the court has set the deadlines for these. The Company's assets will be liquidated at the end of the bankruptcy process to reimburse creditors. CONTACT: Dicalibus S.A. Ave Roque Saenz Pena 811 Buenos Aires Flora Pazos 1st Floor, Office 4 Montevideo 527 Buenos Aires DOM CAR: Proof of Claims Process Ends Today ------------------------------------------- The credit verification period for the bankruptcy of Buenos Aires Company Dom Car S.A. will end today, the Troubled Company Reporter - Latin America earlier reported. Creditors must present their proofs of claims to the Company's receiver, Ms. Nelida Manuel Schub. 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 EMPESA: Enters Bankruptcy on Court Orders ----------------------------------------- Empesa S.A., which is based in Buenos Aires, enters bankruptcy on orders from the city's Court No. 11. A report by local news portal Infobae indicates that Clerk No. 22 assists the court on the case, which will end with the liquidation of the Company's assets to pay off creditors. The credit verification period ends on February 25 next year. The receiver will prepare the individual reports after verifications are closed. These reports are due at the court on April 7 next year, followed by the general report on May 19. CONTACT: Oscar Ricardo Garcia Lavalle 1206 Buenos Aires JOYITA: Receiver Prepares Individual Reports for Reorganization --------------------------------------------------------------- The reorganization of Argentina's Joyita S.A. proceeds with the closure of the credit verification process today. The Company's receiver, Mr. Mario Degesa, who authenticated the claims, will prepare the individual reports. The Troubled Company Reporter - Latin America earlier reported that Buenos Aires Court No. 12 approved the motion for "Concurso Preventivo" filed by the Company. The receiver is also required to prepare a general report after the individual reports are processed at court. However, local sources did not mention whether the court, which works with Clerk No. 23 on the case, has set the deadlines for the filing of these reports. CONTACT: Joyita S.A. Tucuman 1455 Buenos Aires Mario Degesa Bouchard 468 Buenos Aires MASTEX: Court Assigns Receiver to Oversee Bankruptcy ---------------------------------------------------- Court No. 16 assigned local accountant Ernesto Oscar Bautista as receiver for the bankruptcy of Mastex S.R.L., relates local news source Infobae. Clerk No. 30 works with the court on the case. The credit verification period ends on February 12 next year. This is done to determine the nature and amount of the Company's debts. The receiver will prepare the individual reports on the verification results, which will be used as basis for payments after the Company's assets are liquidated at the end of the bankruptcy process. The receiver is also required to prepare a general report on the case. In the meantime, the source did not mention whether the court has set the deadlines for the submission of the receiver's reports. CONTACT: Ernesto Oscar Puerta Juan Bautista Alberdi 1145 Buenos Aires METROGAS: Extends APE Until Dec. 22 ----------------------------------- Argentine natural gas distributor Metrogas SA extended by 12 days its offer to restructure US$440 million in debt, the Company said Thursday. Metrogas launched its offer on November 7 and set an expiry date of December 10. As of Wednesday, creditors holding about US$93.6 million of eligible obligations had agreed to the proposal. This represents 21.3% of creditors. The Company's out-of-court settlement, known by its Spanish acronym as an APE, needs two- thirds approval from creditors before it can submit its offer for legal approval. Metrogas, which stopped payments on all its debt in March 2002, is offering to buy back its debt at 50% of face value up to US$100 million. Creditors can also choose an option where capitalized interest is added to the principal and paid over a period of nine years. Under this option, the modified debt will pay 3% interest for the first two years, 4% for the following two years, 5% for the next two years and 6% for the remaining period. METROPOLITANO: Court Approves Debt Restructuring Plan ----------------------------------------------------- Argentine railway concessionaire Metropolitano has obtained court approval for the debt restructuring accord subscribed with its creditors. The accord involves a 65% write-off in the amount of debt - ARS80 million (US$27.11 million). NORFINA SOCIEDAD: Court Orders Bankruptcy ----------------------------------------- Judge Gutierrez Cabello of Buenos Aires Court No. 6 approved a petition for the bankruptcy of local company Norfina Sociedad de Bolsa S.A., according to La Nacion report. Clerk No. 12, Dr. Mendez Sarmiento, assists the court on the case. The court appointed local accountant Miryam Lewenbaum as the Company's receiver. Her duties include the examination and authentication of creditors' claims until March 5 next year, and the preparation of the individual and general reports. The source, however, did not indicate the filing deadline for the receiver's reports. CONTACT: Norfina Sociedad de Bolsa S.A. Reconquista 520 Buenos Aires Miryam Lewenbaum 11th Floor, Office 1102 Montevideo 666 Buenos Aires PET SUPPLIES: Court Sets Reorganization Schedule ------------------------------------------------ Court No. 2 of Buenos Aires set the schedule for the reorganization of local company Pet Supplies International S.A., reports Argentine news portal Infobae. The individual reports on the results of the verification process, must be submitted to the court on April 27 next year, followed by the general report on June 2. The credit verification process ends on March 5, 2004. Creditors must present their proofs of claim to the receiver, Mr. Fernando Ezequiel Aquilino, for authentication. The receiver will also prepare the individual and general reports. Working with Clerk No. 4, the court decided that the informative assembly will be held on November 10, 2004. The meeting will signal the conclusion of the reorganization process. CONTACT: Fernando Ezequiel Aquilino Lavalle 1459 Buenos Aires PIHUE: Court OK's Reorganization Petition ----------------------------------------- Argentine company Pihue S.A. will undergo reorganization after Buenos Aires Court No. 18 approved its motion for "Concurso Preventivo". Clerk No. 36 assists the court on the case. Local accountant Nestor Agustin Iribe was assigned as the Company's receiver. His duties include the examination and authentication of creditors' claims until February 9 next year, and the preparation of the individual and general reports. CONTACT: Nestor Augstin Iribe Ave Corrientes 1250 Buenos Aires SALUD CONTEMPORANEA: Receiver Oversees Reorganization Process ------------------------------------------------------------- Argentine accountant Francisco Jose Granja will oversee the reorganization of Salud Contemporanea S.A., which is based in Buenos Aires. Creditors must have their claims validated by the receiver before March 5, 2004. The individual reports on the results of the verification process are due at the court on April 21 next year. The general report, a summary of the information in the individual reports, should follow on June 3. The city's Court No. 2 handles the Company's case, relates local news source Infobae. Clerk No. 3 assists. CONTACT: Salud Contemporanea S.A. Arenales 2871 Buenos Aires Francisco Jose Granja Parana 467 Buenos Aires ============= B E R M U D A ============= TYCO INTERNATIONAL: Announces Regular Quarterly Dividend -------------------------------------------------------- The Board of Directors of Tyco International Ltd. (NYSE: TYC, LSE: TYI, BSX: TYC) declared a regular quarterly cash dividend of one and one quarter cents per common share. The dividend is payable on February 2, 2004 to shareholders of record on January 2, 2004. About Tyco International Ltd. Tyco International Ltd. is a diversified manufacturing and service company. Tyco is the world's largest manufacturer and servicer of electrical and electronic components; the world's largest manufacturer, installer and provider of fire protection systems and electronic security services; and the world's largest manufacturer of specialty valves. Tyco also holds strong leadership positions in medical device products, and plastics and adhesives. Tyco operates in more than 100 countries and had fiscal 2003 revenues from continuing operations of approximately $37 billion. CONTACT: Investor Relations Ed Arditte Phone: 609-720-4621 John Roselli Phone: 609-720-4624 Media David Polk Phone: 609-720-4387 =========== B R A Z I L =========== ALCOA ALUMINIO: FC Rating Outlook Revised to Positive From Stable ----------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the 'B+' foreign currency rating of ALCOA Aluminio S.A. to positive from stable. Additionally, it affirmed the Company's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit outlook follows the revision of the foreign currency outlook of Brazil (Federative Republic of), since the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. AMBEV: S&P Revises Foreign Curency Rating Outlook to Positive ------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the 'B+' foreign currency rating of AMBEV - Companhia de Bebidas das Americas to positive from stable. Additionally, it affirmed the Company's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit outlook follows the revision of the foreign currency outlook of Brazil (Federative Republic of), since the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. BANCO CITIBANK: S&P Revises Foreign Currency Rating Outlook ----------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the foreign currency rating of Banco Citibank S.A. to positive from stable. At the same time, it also affirmed the bank's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit rating outlook on the bank follows a similar action taken on the sovereign's foreign currency outlook, because the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. ARACRUZ CELULOSE: S&P Affirms Foreign Currency Rating ----------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the 'B+' foreign currency rating of Aracruz Celulose S.A. to positive from stable. Additionally, it affirmed the Company's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit outlook follows the revision of the foreign currency outlook of Brazil (Federative Republic of), since the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. BANCO DO BRASIL: S&P Revises Foreign Currency Rating Outlook ------------------------------------------------------------ Standard & Poor's Ratings Services revised its outlook on the foreign currency rating of Banco do Brasil S.A. to positive from stable. At the same time, it also affirmed the bank's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit rating outlook on the bank follows a similar action taken on the sovereign's foreign currency outlook, because the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. BANCO DO ESTADO: S&P Affirms Foreign Currency Rating ---------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the foreign currency rating of Banco do Estado de Sao Paulo S.A. to positive from stable. At the same time, it also affirmed the bank's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit rating outlook on the bank follows a similar action taken on the sovereign's foreign currency outlook, because the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. BANCO ITAU: S&P Changes Foreign Currency Rating Outlook ------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the foreign currency rating of Banco Itau S.A. to positive from stable. At the same time, it also affirmed the bank's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit rating outlook on the bank follows a similar action taken on the sovereign's foreign currency outlook, because the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. BANCO SANTANDER BRASIL: Foreign Currency Rating Outlook Revised --------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the foreign currency rating of Banco Santander Brasil S.A. to positive from stable. At the same time, it also affirmed the bank's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit rating outlook on the bank follows a similar action taken on the sovereign's foreign currency outlook, because the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. BANCO SANTANDER MERIDIONAL: S&P Affirms Foreign Currency Rating --------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the foreign currency rating of Banco Santander Meridional S.A. to positive from stable. At the same time, it also affirmed the bank's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit rating outlook on the bank follows a similar action taken on the sovereign's foreign currency outlook, because the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. BANCO VOTORANTIM: S&P Revises FC Rating Outlook to Positive ----------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the foreign currency rating of Banco Votorantim S.A. to positive from stable. At the same time, it also affirmed the bank's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit rating outlook on the bank follows a similar action taken on the sovereign's foreign currency outlook, because the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. BNB: S&P Affirms Ratings, Changes Outlook to Positive ----------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on its long-term foreign currency credit rating on Banco do Nordeste do Brasil S.A. (BNB), a sovereign-supported institution, to positive from stable to reflect its positive outlook on its long-term foreign currency sovereign credit rating on the Federative Republic of Brazil (B+/Positive/B foreign, BB/Stable/B local currency sovereign credit ratings). Standard & Poor's also affirmed its 'B+' long-term foreign, 'BB' long-term local, and 'B' short-term currency credit ratings on BNB. Credit Analyst Lisa Schineller said BNB's rating and outlook are supported by Brazil's ownership. "The government holds 91% of the bank's voting shares, and is involved in the management of its operations," Schineller said. ANALYST: Lisa M Schineller New York Phone: (1) 212-438-7352 Helena Hessel New York Phone: (1) 212-438-7349 Daniel Araujo Sao Paulo Phone: (55) 11-5501-8939 BNDES: S&P Affirms Ratings, Changes Outlook to Positive ------------------------------------------------------- Standard & Poor's Ratings Services revised Thursday its outlook on its long-term foreign currency credit rating on Banco Nacional de Desenvolvimento Economico e Social (BNDES), a sovereign- supported institution, to positive from stable to reflect its positive outlook on its long-term foreign currency sovereign credit rating on the Federative Republic of Brazil (B+/Positive/B foreign, BB/Stable/B local currency sovereign credit ratings). Standard & Poor's also affirmed its 'B+' long-term foreign and 'BB' long-term local currency credit ratings on BNDES. "The ratings and outlook on BNDES are supported by the demonstrated support of the government of Brazil, underpinned by its direct ownership of 100% of BNDES' share capital," said Credit Analyst Lisa Schineller. "Although there is no timely government guarantee on BNDES' obligations, strong sovereign support is evidenced by government funding and capitalization policies-including periodic capital increases and stable, constitutionally mandated funding," she added. ANALYST: Lisa M Schineller New York Phone: (1) 212-438-7352 Helena Hessel New York Phone: (1) 212-438-7349 Daniel Araujo Sao Paulo Phone: (55) 11-5501-8939 BRASKEM: S&P Affirms Foreign Currency Rating -------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the 'B+' foreign currency rating of Braskem S.A. to positive from stable. Additionally, it affirmed the Company's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit outlook follows the revision of the foreign currency outlook of Brazil (Federative Republic of), since the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. CERJ: S&P Revises FC Rating Outlook to Positive ----------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the 'B+' foreign currency rating of Companhia de Eletricidade do Rio de Janeiro to positive from stable. Additionally, it affirmed the Company's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit outlook follows the revision of the foreign currency outlook of Brazil (Federative Republic of), since the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. CSN: Foreign Currency Rating Affirmed ------------------------------------- Standard & Poor's Ratings Services revised its outlook on the 'B+' foreign currency rating of Companhia Siderurgica Nacional (CSN) to positive from stable. Additionally, it affirmed the Company's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit outlook follows the revision of the foreign currency outlook of Brazil (Federative Republic of), since the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. ELETROBRAS: S&P Affirms Foreign Currency Rating ----------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the 'B+' foreign currency rating of Eletrobras - Centrais Eletricas Brasileiras S.A. to positive from stable. Additionally, it affirmed the Company's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit outlook follows the revision of the foreign currency outlook of Brazil (Federative Republic of), since the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. EMBRATEL: Three Local Firms Submit Joint Proposal to Buy Stake -------------------------------------------------------------- Brazil's three largest fixed-line telephone companies have submitted a joint proposal to buy a controlling stake in Embratel, the country's biggest long-distance provider, from U.S. telecommunications giant MCI. These companies, the AP reveals, are Tele Norte Leste Participacoes SA (Telemar), Brasil Telecom Participacoes and Spain's Telefonica SA. They join Embratel's pension fund, Telos, which earlier announced plans to form a consortium to make a bid for Embratel. Telos said Thursday that it also has submitted a proposal to buy Embratel but did not say what firms form part of its consortium. Many analysts expect Telefonos de Mexico SA, Mexico's biggest fixed-line telephone company, to bid on Embratel as well. On Wednesday, Telmex, owned by Latin America's richest man, Carlos Slim, acknowledged that it has been analyzing the possibility of buying Embratel but declined to comment on whether it has prepared a formal bid. Lazard LLC, the investment bank handling the sale for MCI, would not comment on the details of the bidding process. MCI, formerly known as WorldCom Inc., bought a 51.8% stake in Embratel for US$2.25 billion in 1998. MCI put the stake up for sale last month as part of a reorganization plan approved by a U.S. bankruptcy court. CONTACT: Silvia M.R. Pereira, Investor Relations Tel: (55 21) 2121-9662 Fax: (55 21) 2121-6388 Email: silvia.pereira@embratel.com.br invest@embratel.com.br GERDAU: Ensures Long-Term Growth Strategy ----------------------------------------- Gerdau has agreed to purchase the real estate and mining rights of Companhia Paraibuna de Metais. GERDAU S.A., in compliance with Regulation #358 of the Brazilian Securities Commission (CVM) instituted on January 3rd, 2002, informs its shareholders and investors that its subsidiary, Gerdau Acominas S.A., has signed a purchasing agreement with the Votorantim Group. Under this contract, Gerdau Acominas S.A. has agreed to purchase the real estate and mining rights of Companhia Paraibuna de Metais, a company controlled by Votorantim Group, whose mines are located at Miguel Bournier, Varzea do Lopes and Gongo Soco in the state of Minas Gerais. The assets involved in this transaction include 15 extraction concessions, located in a total area of 7,000 hectares. These mineral reserves, according to partial prospecting, are sufficient to guarantee the supply of iron ore to the Ouro Branco steel mill at the currently planned production rates. The mines have a privileged location inside the Ferrous Quadrilateral of Minas Gerais, are in the proximity of the Ouro Branco mill and will contribute in the consolidation of the unit's long-term competitive position. This purchase should not alter the current supply structure, which relies on more than ten regional suppliers of iron ore. The price agreed upon for the purchase of the real estate and mineral rights described above is US$ 30 million, with US$ 7.5 million to be paid at the signing of the agreement, 25% upon completion of the due diligence process and the remaining 50% in June of 2004. This purchase is part of the long-term strategy of the Gerdau Group to ensure the growth of its Gerdau Acominas subsidiary. HSBC BANK BRASIL: S&P Revises FC Rating Outlook to Positive ----------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the foreign currency rating of HSBC Bank Brasil S.A. to positive from stable. At the same time, it also affirmed the bank's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit rating outlook on the bank follows a similar action taken on the sovereign's foreign currency outlook, because the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. KLABIN: S&P Affirms Foreign Currency Rating ------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the 'B+' foreign currency rating of Klabin S.A. to positive from stable. Additionally, it affirmed the Company's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit outlook follows the revision of the foreign currency outlook of Brazil (Federative Republic of), since the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. MRS LOGISTICA: Foreign Currency Rating Revised ---------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the 'B+' foreign currency rating of MRS Logistica, S.A. to positive from stable. Additionally, it affirmed the Company's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit outlook follows the revision of the foreign currency outlook of Brazil (Federative Republic of), since the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. ODEBRECHT: Foreign Currency Rating Affirmed ------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the 'B+' foreign currency rating of Construtora Norberto Odebrecht S.A. to positive from stable. Additionally, it affirmed the Company's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit outlook follows the revision of the foreign currency outlook of Brazil (Federative Republic of), since the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. SABESP: Foreign Currency Rating Revised to Positive --------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the 'B+' foreign currency rating of Companhia de Saneamento Basico do Estado de Sao Paulo to positive from stable. Additionally, it affirmed the Company's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit outlook follows the revision of the foreign currency outlook of Brazil (Federative Republic of), since the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. SADIA: S&P Revises Foreign Currency Rating Outlook -------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the 'B+' foreign currency rating of Sadia S.A. to positive from stable. Additionally, it affirmed the Company's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit outlook follows the revision of the foreign currency outlook of Brazil (Federative Republic of), since the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. TNL: Foreign Currency Rating Revised ------------------------------------- Standard & Poor's Ratings Services revised its outlook on the 'B+' foreign currency rating of Tele Norte Leste Participacoes S.A. (TNL) to positive from stable. Additionally, it affirmed the Company's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit outlook follows the revision of the foreign currency outlook of Brazil (Federative Republic of), since the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. TRIKEM: FC Rating Outlook Revised to Positive --------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the 'B+' foreign currency rating of Trikem S.A. to positive from stable. Additionally, it affirmed the Company's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit outlook follows the revision of the foreign currency outlook of Brazil (Federative Republic of), since the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. UNIBANCO: S&P Affirms Foreign Currency Rating --------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the foreign currency rating of Unibanco-Uniao de Bancos Brasileiros, S.A. to positive from stable. At the same time, it also affirmed the bank's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit rating outlook on the bank follows a similar action taken on the sovereign's foreign currency outlook, because the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. VOTORANTIM GROUP: FC Rating Outlook Revised to Positive ------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the 'B+' foreign currency rating of Votorantim Group to positive from stable. Additionally, it affirmed the Company's foreign currency rating. The local currency global scale rating and outlook remain unchanged. The revision of the foreign currency corporate credit outlook follows the revision of the foreign currency outlook of Brazil (Federative Republic of), since the foreign currency rating of this entity is constrained by the sovereign's foreign currency rating. * Brazil: Outlook on LT FC Rating Revised to Positive ----------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on its long-term foreign currency sovereign credit rating on the Federative Republic of Brazil to positive from stable. Standard & Poor's also affirmed its 'BB' long-term local, 'B+' long-term foreign, and 'B' short-term local and foreign currency sovereign credit ratings on the republic; the stable outlook on the long- term local currency rating was affirmed. According to Credit Analyst Lisa Schineller, the positive outlook on the long-term foreign currency rating reflects reduced external vulnerability underpinned by ongoing marked structural improvement in Brazil's trade balance. "Strong external performance and continued fiscal and monetary discipline should support a sustained pick-up in growth over the next several years, underpinned by a recovery of domestic demand in 2004," said Ms. Schineller. "Declining interest rates and proactive debt management, which has lowered the share of dollar-linked paper and increased the share of fixed-rate paper in domestic debt, should reduce 'crowding out' of the private sector and help a rebound in growth," she added. A structural shift in Brazil's trade accounts includes broad- based growth in products and market diversification. Exports as a share of GDP have almost doubled, to 18% of GDP in 2003, since 1999. As a result, Brazil's external debt burden has continued to decline over the same period, reaching historic lows in 2003. External debt, net of liquid assets, is estimated at 210% of current account receipts, and although this level is still higher than that in peer credits, Standard & Poor's expects the downward trend to continue in the coming years. Notwithstanding the projected heavy burden of private sector medium-term external debt amortization in 2004 (US$27.5 billion, up from US$15.8 billion in 2003), Brazil's gross external financing needs of 170% of reserves in 2004 are projected to remain below the 2000-2002 average of 252%, though higher than 2003's low 114%. Standard & Poor's said that the outlook on the long-term local currency debt reflects a still-challenging profile of Brazil's domestic debt, despite recent significant improvement in its profile. The share of dollar-linked paper fell to around 24% of domestic debt in November 2003 from 37% at year-end 2002, owing not just to valuation effects stemming from exchange-rate appreciation, but also to an aggressive policy of reducing the rollover rate of principal. The share of fixed rate paper stands at around 9% in November 2003 compared with 2% at year-end 2002. "Notwithstanding Brazil's recent significant improvement in macroeconomic stability, which should underpin a recovery in growth during 2004-2005, the longer-term growth outlook remains vulnerable, unless it is bolstered by effective microeconomic reform," Ms. Schineller said. "The successful implementation of reform of the energy sector and regulatory agencies, as well as labor, bankruptcy, and judicial reform, should reduce institutional risk and sustain investment and growth prospects beyond the next two years-which, in turn, could support improving creditworthiness. However, Brazil's ratings could come under downward pressure if the commitment to prudent macroeconomic management falters or progress on microeconomic reform is slow, thereby jeopardizing growth prospects in the medium term," she concluded. ANALYST: Lisa M Schineller New York Phone: (1) 212-438-7352 Helena Hessel New York Phone: (1) 212-438-7349 Regina Nunes Sao Paulo Phone: (55) 11-5501-8937 =========== M E X I C O =========== GRUPO IUSACELL: Announces Reverse Split --------------------------------------- Grupo Iusacell, S.A. de C.V., BMV: CEL, NYSE: CEL, announced Thursday that its Series A and Series V shares would be exchanged on December 19, 2003 for new common, ordinary, registered shares with no par value at a ratio of 20 Series A or Series V shares to 1 new share. Iusacell will not issue fractional shares. Accordingly, fractions of new shares will be paid off at a price equal to the opening market price quoted on the Mexican Stock Exchange on October 17, 2003, for each of the Series A or Series V shares. The exchange is subject to obtaining the required approvals from the Mexican National Securities and Banking Commission. ABOUT IUSACELL Grupo Iusacell, S.A. de C.V. is a wireless cellular and PCS service provider in seven of Mexico's nine regions, including Mexico City, Guadalajara, Monterrey, Tijuana, Acapulco, Puebla, Leon and Merida. Iusacell's service regions encompass a total of approximately 92 million POPs, representing approximately 90% of the country's total population. CONTACT: Mauricio Martinez Gonzalez Tel: 01 (52) 55 52 67 45 00 Email: mmg@jnnr.com.mx Carlos Moctezuma Tel: 01 (52) 55 51 09 44 00 carlos.moctezuma@iusacell.com.mx *********** 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 * * *