/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040227.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 Friday, February 27, 2004, Vol. 5, Issue 41 Headlines A R G E N T I N A ANNUIT COEPTIS: General Report Due Today BALANCEADOS AYACUCHO: Receiver's Reorganization Report Out Today CANOSUR: Deadline for Authenticated Proofs of Claim Expires CERAMICA TREMARA: Credit Verification Report Due April 14 CORREO ARGENTINO: Local Judge Slams U.S. Counterpart's Ruling CRESER CREDITO: Deadline for Individual Reports Expires DEPOSITO COLOMBIA: Court Expects Receiver's General Report Today DIESEL OLAVARRIA: Receiver Ends Verification Process FRESNEL: Credit Verification Process Expires Today HANKE CULCUY: General Bankruptcy Report Out Today HEALTH RESEARCH: Credit Verification Report Due in Court HITO: Receiver's General Report Deadline Expires H Y L GERMIGNIANI: Receiver to File General Report Today LAMINADOS LAMDECO: Individual Reports Due in Court LA NOUVELLE ROCHE: Receiver Readies Credit Verification Results PREGAS: Receiver Finalizes Verified Claims Report ROAMAR: Credit Verification Period Expires ROBERTO GATTI: Receiver's General Report Due Today RODEL: Verification of Proofs of Claim Ends Today SANTA CATALINA: Court Closes Credit Verification Process TATANCA: Court Requires Receiver to File General Report TELECOM ARGENTINA: Creditors Likely to Snub New Debt Proposal TOUT ALBERDI: Court Orders Receiver to Finalize General Report VANLAY: Deadline for Proofs of Claim Expires WINLUCK: Credit Authentication Period Ends Today B E R M U D A ANNUITY & LIFE: Appoints New Finance Chief C H I L E AES GENER: US$300 Mln Bonds Assigned 'BB+' Preliminary Rating AES GENER: Restructuring Plan Still Within Fitch's Expectations COCA-COLA EMBONOR: Ratings Lowered to 'BB+'; Outlook Stable PARMALAT CHILE: Sale to Bethia Awaits Parent's Consent D O M I N I C A N R E P U B L I C CDEEE: DOP2.5 Billion Investment Needed to Head off Losses * IDB Approves $100 Million Fast-disbursing Loan E C U A D O R ANDINATEL/PACIFICTEL: Govt to Finalize Sale Strategy Friday M E X I C O TV AZTECA: U.S. SEC Sues Moises Saba, Albert Sutton for Fraud TV AZTECA: Board OK's US$52 Mln Proposed Cash Distribution V E N E Z U E L A HOVENSA: S&P Rates US$50.66 Million Tax-Exempt Bonds 'BBB' HOVENSA: Amerada Hess Ratings Affirmed; Outlook Stable PARMALAT VENEZUELA: To Launch Flavored Beverage Soon - - - - - - - - ================= A R G E N T I N A ================= ANNUIT COEPTIS: General Report Due Today ---------------------------------------- The general report on the bankruptcy of Annuit Coeptis S.A. is due at Buenos Aires Court No. 19 today. This report is a summary of the individual reports, which contained the results of the credit verification process. The Troubled Company Reporter-Latin America had earlier reported that the receiver, Mr. Andres Landro, examined creditors' proofs of claim to determine the nature and amount of the company's debts. CONTACT: Annuit Coeptis S.A. Vicente Lopez 1031 Buenos Aires Andres Landro Scalabrini Ortiz 215 Buenos Aires BALANCEADOS AYACUCHO: Receiver's Reorganization Report Out Today ---------------------------------------------------------------- Court No. 2 of the Civil and Commercial Tribunal of Dolores in Argentina ordered the receiver of Balanceados Ayacucho S.R.L. to file the general report on the company's reorganization today. The receiver, Ms. Angela Elma Miletti, is expected to file a consolidated report of the credit verification results. Earlier the Troubled Company Reporter-Latin America said that the informative assembly will be on June 29. This is one of the last parts of the reorganization process. CONTACT: Balaceados Ayacucho S.R.L. Alem 941 Ayacucho, Dolores Angela Elma Miletti Mendoza 143 Dolores CANOSUR: Deadline for Authenticated Proofs of Claim Expires ----------------------------------------------------------- The deadline for the general report on the bankruptcy of Canosur S.A.C.I.M.I.A. expires today. Court No. 10 of the Argentine province of Lomas de Zamora is expecting a consolidated report on the verified claims of creditors, which shall be the basis for their payment following the company's liquidation. Ms. Maria del Carmen Perez Alonso is the company's receiver. CONTACT: Canosur S.A.C.I.M.I.A. Mariana Arbel 3586 Monte Grande Maria del Carmen Perez Alonso Belgrano 269 Lomas de Zamora CERAMICA TREMARA: Credit Verification Report Due April 14 --------------------------------------------------------- The credit verification process ordered by Court No. 2 of the Civil and Commercial Tribunal of Trelew for Ceramica Tremara S.A. ends today. The Company's receiver, Ms. Elena Mabel Iralde, will now consolidate the individual reports, which is due on April 14. She is also required to file a general report on May 27. The Troubled Company Reporter-Latin America said in an earlier report that the informative assembly will be held on November 4. This is one of the last parts of the reorganization process. CONTACT: Ceramica Tremara S.A. Pecoraro 275 Trelew, Chubut Elena Mabel Iralde Belgrano 581 Trelew, Chubut CORREO ARGENTINO: Local Judge Slams U.S. Counterpart's Ruling ------------------------------------------------------------- Argentine judge Eduardo Favier Dubois, who oversees the bankruptcy proceeding of former postal concessionaire Correo Argentino, reminded his U.S. counterpart, Thomas Griesa, that his court has the preferential right to decide the fate of the company's accounts. In a letter addressed to the American judge, the Argentine magistrate said he had already ordered the seizure of the accounts when the New York court ordered their embargo on February 16. Judge Favier Dubois said his order came out on February 11. The disputed accounts contain US$11.5 million and are being held by Lehman Brothers and BNP. Judge Greisa made his ruling in the case filed by Macrotecnic, a private equity that holds around US$400,000 in Argentina's defaulted treasury bonds. The government, on the other hand, cancelled Correo's national postal concession on November 19 and put the company under public administration. The firm was declared bankrupt on December 19. Judge Favier Dubois said the U.S. ruling is contrary to law because the accounts are Correo Argentino's private property and have not been transferred to the government when the latter took back control of the official mail service. Correo Argentino's bankruptcy protection under Argentine law bans its creditors from taking legal action and seizing its assets individually, Judge Favier Dubois added. CRESER CREDITO: Deadline for Individual Reports Expires ------------------------------------------------------- The deadline for the filing of the individual reports on the reorganization of Creser Credito y Servicio S.A. expires today. A general report, consolidating these documents, is expected to be filed by Ms. Cecilia Beatriz Montelvetti on April 13. An informative assembly has been scheduled for September 24, 2004. This is one of the last parts of the reorganization process. The case is docketed at Buenos Aires Court No. 22. CONTACT: Ceicila beatriz Montelvetti General Urquiza 2134 Buenos Aires DEPOSITO COLOMBIA: Court Expects Receiver's General Report Today ---------------------------------------------------------------- Hugo Eduardo Sanguinetti, the receiver of Deposito Colombia S.R.L., is expected to file his general report today. The bankruptcy case is pending at the Civil and Commercial Tribunal of Rosario in Sante Fe. The Company's assets will be liquidated at the end of the process to reimburse creditors. CONTACT: Deposito Colombia S.R.L. Juan Jose Paso 6985 Santa Fe Hugo Eduardo Sanguinetti Gorriti 986 Rosario, Santa Fe DIESEL OLAVARRIA: Receiver Ends Verification Process ---------------------------------------------------- Eduardo Luis Alzueta, receiver of Diesel Olavarria S.A.C. e I., will close the credit verification process today. He has until April 14 to consolidate the verification results and submit them to Court No. 1 of the Civil and Commercial Tribunal of Olavarria. He is also required to file a general report on the company's bankruptcy on May 27. The Company's assets will be liquidated at the end of this process to repay creditors. CONTACT: Diesel Olavarria S.A.C. e I. Avenida del Valle 4424 Olavarria Eduardo Luis Alzueta Alvaro Barros 3369 Olavarria FRESNEL: Credit Verification Process Expires Today -------------------------------------------------- Mr. Jorge Cosoli, receiver of Fresnel S.A., will close the credit verification process today. Creditors must have their claims authenticated by the receiver to qualify for payments once the company's assets are liquidated. The receiver will prepare the individual reports to be filed in court on March 29, followed by the general report on April 29. The general report is a summary of the individual reports processed by the court. The Company's assets will be liquidated at the end of the process to reimburse creditors. Payments will be based on the results of the credit verification process. CONTACT: Jorge Cosoli Marcelo T de Alvear 1364 Buenos Aires HANKE CULCUY: General Bankruptcy Report Out Today ------------------------------------------------- The general report on the reorganization of Hanke Culcuy y Compania S.A. is due today. The Company's receiver, Mr. Daniel Francisco Puimetti, is expected to present the results of the credit verification results to Court No. 3 in Buinos Aires. An informational assembly is scheduled for August 13 this year. CONTACT: Hanke Culcuy y Compania S.A. Km 14 Ruta Nacional 19 San Agustin, Santa Fe Daniel Francisco Piumetti San Martin 2347 Buenos Aires HEALTH RESEARCH: Credit Verification Report Due in Court -------------------------------------------------------- Court No. 24 of Buenos Aires requires the receiver of Health Research Corporation S.A. to file the individual reports on the Company's bankruptcy today. These reports contain results of the credit verification process completed in December last year. Mr. Angel Romano Pozzi, the receiver who also verified the creditors' claims, will prepare a general report after the individual reports shall have been processed by the court. This general report is due April 15, the Troubled Company Reporter- Latin America earlier said. The Company's assets will be liquidated at the end of the process; proceeds will be used to reimburse creditors. CONTACT: Angel Romano Pozzi Combate de los Pozos 129 Buenos Aires HITO: Receiver's General Report Deadline Expires ------------------------------------------------ The Civil and Commercial Tribunal of Corrientes in Argentina requires the receiver of Hito S.A. to submit her general report on the Company's reorganization today. Following the submission by Ms. Maria Marcela Lopez Horts of her report, the court would then schedule an informative assembly, which shall not be later than October 15 this year. CONTACT: Hito S.A. Tucuman 1391 Corrientes Maria Marcela Lopez Horts 9 de Julio 1331 Corrientes H Y L GERMIGNIANI: Receiver to File General Report Today -------------------------------------------------------- The general report on the bankruptcy of Cordoba-based Hugo y Leandro Germigniani S.H. is due in court today. The Company's receiver, Ms. Maria Luisa Benitez, will present the report, which is a consolidation of the individual reports after being processed in court. The individual reports contain the results of credit verifications done to ascertain the nature and amount of the Company's debts. The province's Court No. 26 holds jurisdiction over the case. CONTACT: Hugo y Leandro Germigniani S.H. Lavalleja 1633 Barrio Alta Cordoba LAMINADOS LAMDECO: Individual Reports Due in Court -------------------------------------------------- The individual reports on the bankruptcy of Buenos Aires-based Laminados Lamdeco S.A. are due at the city's Court No. 17 today. The court requires the receiver to prepare a general report after these reports are processed in court. Company receiver, Mr. Jose Maria Nullo, must file the general report on March 26, said the Troubled Company Reporter-Latin America in an earlier report. Clerk No. 33 assists the court in the case. CONTACT: Laminados Lamdeco S.A. Moldes 2181 Buenos Aires Jose Maria Nullo Avenida Callao 420 Buenos Aires LA NOUVELLE ROCHE: Receiver Readies Credit Verification Results --------------------------------------------------------------- The credit verification process ordered by the court for local restaurant, La Nouvelle Roche S.R.L., expires today. Company receiver, Mr. Juan Vilanova, will prepare a general report after the court shall have processed the verification results. The Company's assets will be liquidated at the close of the bankruptcy process. CONTACT: La Nouvelle Roche S.R.L. 5th Floor, Office 32 Combate de los Pozos 59 Buenos airse Juan Vilanova 6th Floor, Office B Hipolito Yrigoyen 1349 Buenos Aires PREGAS: Receiver Finalizes Verified Claims Report ------------------------------------------------- Argentine accountant Eduardo Ruben Pronsky, receiver of Pregas S.R.L., must file the individual reports on the Company's bankruptcy today. The reports contain the results of the credit verification process concluded in November last year. According to Troubled Company Reporter-Latin America, Buenos Aires Court No. 21 requires the receiver to file the general report on April 16. This report is a consolidation of the court-processed individual reports. CONTACT: Pregas S.R.L. Barros Pazos 5841 Buenos Aires Eduardo Ruben Pronsky Parana 480 Buenos Aires ROAMAR: Credit Verification Period Expires ------------------------------------------ The credit verification period for Roamar S.A. ends today. Judge Paez Castaneda of Buenos Aires' Court No. 21 earlier declared the company bankrupt and appointed Ms. Maria Gravier as its receiver. Clerk No. 41 assists the court in the case. CONTACT: Roamar S.A. 5th Floor, Room B Ave. Forest 434 Buenos Aires Maria Gravier 4th Floor Piedras 172 Buenos Aires ROBERTO GATTI: Receiver's General Report Due Today -------------------------------------------------- Court No. 1 of the Civil and Commercial Tribunal of Rosario requires the receiver of Roberto Gatti S.A. to file the general report on the Company's bankruptcy today. Receiver, Mr. Victor Horacio Pugliese, was expected to preside over the verification of the creditors' claims to determine the nature and amount of the Company's debts. Creditors must have their claims authenticated to receive payments after the Company's assets are liquidated. CONTACT: Victor Horacio Pugliese Jujuy 2033 Rosario, Santa Fe RODEL: Verification of Proofs of Claim Ends Today ------------------------------------------------- Today is the last day for credit verifications in connection to the reorganization of Rodel S.A., an earlier report by the Troubled Company Reporter-Latin America said. Court No. 33 of the Civil and Commercial Tribunal of Cordoba, which handles the case, expects the general report on April 14. The informative assembly will take place on July 21, 2004. This signals the end of the reorganization process. SANTA CATALINA: Court Closes Credit Verification Process -------------------------------------------------------- Court No. 5 of the Civil and Commercial Tribunal of Mercedes ordered the receiver of Santa Catalina S.C.A. to close the credit verification process today, Troubled Company Reporter- Latin America earlier said. The receiver, Mr. Juan Angel Cavatorta, examined and authenticated reports to ascertain the nature and amount of the Company's debts. Creditors must have their claims authenticated to receive reimbursement after the Company's assets are liquidated. The receiver will prepare the individual reports on the verification results. The court also requires the receiver to prepare a general report after it has processed the individual reports. CONTACT: Santa Catalina S.C.A. Cuartel VII 25 de Mayo Mercedes Juan Angel Cavatorta Ave 19 No. 664 Mercedes TATANCA: Court Requires Receiver to File General Report ------------------------------------------------------- Judge Ferrario of Buenos Aires' Court No. 6 ordered the receiver for Tatanca S.R.L. to file the general report on the Company's bankruptcy today. The company's receiver is Mr. Angel Visco. Troubled Company Reporter-Latin America earlier said the Company was decreed bankrupt upon the request of its creditor, Cooperativa de Consumo, Credito y Vivienda Dinamica Limitada. Dr. Mendez Sarmiento. The city's Clerk No. 12 assists the court in the case. CONTACT: Tatanca S.R.L. 11th Floor Uruguay 651 Buenos Aires Miguel Visco 3rd Floor 3 de Febrero 4683 Buenos Aires TELECOM ARGENTINA: Creditors Likely to Snub New Debt Proposal ------------------------------------------------------------- Telecom Argentina's (TEO) proposed new debt repayment terms are unlikely to get creditors' backing. According to Dow Jones, analysts and holders of TEO's defaulted debt believe a complicated restructuring is inevitable, taking into consideration its sizeable debt. But this doesn't mean creditors are eager to wave through the restructuring proposal. "We think that this proposal will not achieve the required 66% which is needed for the APE," said David Martinez, head of Fintech Advisory, an investment fund that is one of Telecom Argentina's major institutional creditors. An APE (Acuerdo Preventivo Extrajudicial) is an out of court restructuring agreement governed by Argentine law. This agreement must get the support of 66% of creditors to be made binding on the others. Mr. Martinez thinks "the management is going to be very reasonable (about negotiating new repayment terms) and wants a successful restructuring." Creditors have been in constant discussion with the company since the deal's first version was launched in January. The restructuring process is still moving along friendly terms for now, with both sides eager to come to an agreement, the report said. "I think it's important for all retail investors (to know) that institutional investors do not want to have a protracted delay," Dow Jones quoted Mr. Martinez. "We are working to improve this offer and think that we will be able to have some specific proposals very quickly and we want this transaction to close promptly too." As of September 30, Telecom Argentina had outstanding debt of US$2.6 billion and its cellular unit, Telecom Personal S.A., had US$590 million of debt, according to a Securities and Exchange Commission filing. Telecom Argentina is offering three options to creditors. One would see bondholders swapping old debts for new bonds with no nominal haircut. Creditors, in the second option, will get an immediate cash payment and a new bond with a nominal haircut of about 17%. The third and final option is a cash payment of between 65% and 75%. Telecom Personal's terms are similar. Last month, according to Dow Jones, 13 investment funds wrote Telecom Argentina a letter expressing their disappointment with the proposal, adding they intend to reject it. Those who signed the letter have holdings beyond US$600 million, but they belong to a group of large institutional investors whose holdings total around US$1 billion. According to Mr. Martinez, other major creditors share the same feeling about the proposal but didn't sign the letter for confidential reasons. Together, this entire group of institutional investors would fall short of the 33% needed to block an APE agreement, he admitted. The creditors who signed the letter want to work with the Company to establish a new proposal. Although they have general guidelines for such a proposal, they're still in the process of finalizing details. In their letter, the creditors urged the company to simplify the deal and include an offer of equity. They also complained that the proposal does not accurately reflect the company's ability to pay. Mr. Martinez said creditors are divided about the need for an equity component to the proposal but he thinks the majority would agree to a deal without it. CONTACT: TELECOM ARGENTINA S.A. Alicia Moreau de Justo 50, 10th Floor Capital Federal (1107) Republica Argentina Phone: +54 11 4968 4000 Home Page: http://www.telecom.com.ar Contacts: Alberto J. Ricciardi, Chief Financial Officer Elvira Lazzati, Finance Director Pedro Insussarry, Investor Relations Manager Phone: (5411) 4968-3626/3627 Fax: (5411) 4313-5842/3109 E-mail: inversores@intersrv.telecom.com.ar TOUT ALBERDI: Court Orders Receiver to Finalize General Report -------------------------------------------------------------- Hugo Edgardo Borgert, receiver of Tout Alberdi S.R.L., must file his general report today. Buenos Aires Court No. 24 ordered the receiver to prepare the report after it processed the individual reports, according to an earlier article by the Troubled Company Reporter-Latin America. The individual reports contain the results of credit verification process completed in November last year. CONTACT: Hugo Edgardo Borgert Presidente Peron 853 Buenos Aires VANLAY: Deadline for Proofs of Claim Expires -------------------------------------------- Creditors of Vanlay S.A. can no longer file their proofs of claim to company receiver, Ms. Nelida Cunarro, beyond today. Court No. 26 in Buenos Aires is handling the company's bankruptcy, assisted by Clerk No. 51. CONTACT: Vanlay S.A. Lavalle 1123 Buenos Aires Nelida Cunarro Paraguay 1269 Buenos Aires WINLUCK: Credit Authentication Period Ends Today ------------------------------------------------ The credit verification period for Buenos Aires-based Winluck S.A. ends today. Receiver, Mr. Jorge Podhorzer, is now expected to finalize the results and submit a consolidated report to the city's Court No. 6 on April 15. CONTACT: Jorge Podhorzer Pasaje del Carmen 716 Buenos Aires ============= B E R M U D A ============= ANNUITY & LIFE: Appoints New Finance Chief ------------------------------------------ Annuity and Life Re (Holdings), Ltd. (NYSE: ANR) announced Wednesday that it has promoted John W. Lockwood to Chief Financial Officer. He will maintain his responsibilities as Vice President of Annuity and Life Re America, Inc. and its operating subsidiary, Annuity and Life Reassurance America, Inc. Mr. Lockwood joined Annuity and Life Re America, Inc. in December 1999 as Controller and Treasurer. Immediately prior to joining Annuity and Life Re, Mr. Lockwood held the position of Director of Statutory Reporting and Reinsurance Accounting at Hartford Steam Boiler Inspection & Insurance Company. Before this, Mr. Lockwood held various positions with Security-Connecticut Life Insurance Company including Controller and Corporate Risk Officer. Mr. Lockwood is a 1980 graduate of Central Connecticut State University (B.S. in Accounting) and received a Masters in Taxation from the University of Hartford in 1996. Mr. Lockwood passed the Uniform Certified Public Accountant Examination in 1988 and is a Fellow of the Life Management Institute (FLMI) of the Life Office Management Association. Annuity and Life Re (Holdings), Ltd. provides annuity and life reinsurance to insurers through its wholly owned subsidiaries, Annuity and Life Reassurance, Ltd. and Annuity and Life Reassurance America, Inc. CONTACT: ANNUITY AND LIFE RE (HOLDINGS), LTD. Jay Burke 441-296-7667 ========= C H I L E ========= AES GENER: US$300 Mln Bonds Assigned 'BB+' Preliminary Rating ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary 'BB+' rating to AES Gener S.A.'s proposed US$300 million long- term 144A bonds to be issued in March 2004. Upon successful issuance of the bonds, Standard & Poor's expects to remove the company's 'B' corporate credit rating from CreditWatch and raise the rating to 'BB+' with a stable outlook. The current CreditWatch positive status reflects the potential success of the company's debt restructuring plan. AES Gener is the second-largest generator in the Chilean electricity market, accounting for about 22% of the country's total generating capacity, with an installed capacity of 2,429 MW. AES Gener is 98.65% indirectly owned by AES Corp., the U.S.- based multi-utility. AES Gener S.A.'s current 'B' ratings are mainly driven by its weak financial profile, particularly marked by high refinancing risk. AES Gener's credit ratings had deteriorated over the past two years in light of the company's challenges to meet debt maturities in 2002 and 2003; its restricted access to credit sources; and its weak liquidity position to meet significant maturities, especially in March 2005 and January 2006. The preliminary 'BB+' rating reflects the projected significant improvement of the company's financial profile resulting from a debt restructuring plan that is expected to reduce consolidated debt by US$300 million from almost US$1 billion as of December 2003 (excluding its Colombian subsidiary, Chivor) and significantly extend the average life of the company's debt. The company's debt restructuring plan anticipates the repayment of the approximately US$298 million mercantile account by AES Gener's 98.65% parent, Inversiones Cachagua S.A., to AES Gener on or prior to Feb. 27, 2004; the issuance of the US$300 million long-term 144A bond in March 2004; AES Gener's primary equity offering of new common shares for up to US$125 million to be completed by the first week of April 2004; and a new medium-term syndicated bank loan for approximately US$75 million. Proceeds from the debt restructuring will be applied to repurchase up to US$700 million of notes pursuant to three pending tender offers for each of AES Gener's US$200 million Yankee bonds due in January 2006, US$73.9 million U.S. convertible bonds, and US$402.7 million Chilean convertible bonds due in March 2005. AES Gener will also apply approximately US$50 million to reduce debt at its Argentine subsidiaries' (Termoandes and Interandes) levels that will be transferred to AES Gener's level and extended, and to pay fees. In addition, AES Gener plans to make a US$100 million dividend payment before the end of February 2004, which will be deposited into trust to be used, if necessary, to fund the tender offers of its outstanding bonds. These funds will be released once AES Gener's debt restructuring is successfully completed. A failure to raise US$350 million in new debt, to complete the US$300 million deleveraging, and to refinance and reduce the TermoaAndes/Interandes debt may result in a lower corporate credit rating than the expected 'BB+' and the downgrade of the preliminary rating assigned to the US$300 million 144A bond. A return to a stable outlook would reflect the projected improvement of the company's financial performance evidenced by better debt service coverage ratios and access to credit. This projected ratings improvement is also a product of expected attractive node prices and high levels of demand growth in the Central Interconnected System (SIC). The 'BB+' rating would balance the improved financial profile but still indicate relatively weak financial flexibility and ratios. The rating would also incorporate the cash flow dependence on weather conditions, which influence margins through the level and cost of energy purchases needed to comply with contracts. However, the company benefits from relatively large long-term sale contracts with solid off-takers. Analyst: Sergio Fuentes Buenos Aires Phone: (54) 114-891-2131 Marta Castelli Buenos Aires Phone: (54) 114-891-2128 Luciano Gremone Buenos Aires Phone: (54) 11-4891-2143 AES GENER: Restructuring Plan Still Within Fitch's Expectations --------------------------------------------------------------- AES Gener's financial restructuring plan has undergone various changes in recent weeks, but Fitch analyst, Carlos Diez, said the plan is still within the ratings agency's expectations in its most recent upgrade of the company's rating. Business News Americas recalls that in November 2003 Fitch upgraded the international senior unsecured local and foreign currency ratings of Gener to BB- from B+ with a positive outlook. If the Company's financial restructuring plan remains within Fitch's expectations, the Fitch will maintain or upgrade the Company's rating in March. But this depends on how the plan is received by the market, Mr. Diez said. "I don't have any doubt that [Gener] will complete their plan, with one or two changes, but I don't see any additional risk for the company," Mr. Diez said. He added, commenting on Gener's progress is difficult at this "intermediary" stage, because "what we talked about then was a bit different from what they're going to do now - they have been changing the plan almost day to day." CONTACT: AES GENER S.A. Mariano Sanchez Fontecilla 310 Piso 3 Santiago de Chile Phone: (56-2) 6868900 Fax: (56-2) 6868991 Home Page: http://www.gener.com Contact: Robert Morgan, Chief Executive Laurence Golborne Riveros, Chief Financial Officer COCA-COLA EMBONOR: Ratings Lowered to 'BB+'; Outlook Stable ----------------------------------------------------------- Standard & Poor's Ratings Services lowered Wednesday its ratings on Chilean bottler Coca-Cola Embonor S.A. (Embonor) to 'BB+' following the company's decision to sell its bottling operations in Peru, operated through its subsidiary ELSA. All ratings are removed from CreditWatch, where they were placed on January 16, 2004. The outlook is stable and total debt as of September 2003 was $305 million. "Despite expectations for an improved financial profile following the application of the expected $130 million of sale proceeds to debt reduction, Standard & Poor's believes this loss of critical volume indicates the bottler's decreased strategic importance to The Coca-Cola Company (KO)," said Standard & Poor's credit analyst Silvina Aldeco-Martinez. "As a result, Standard & Poor's now factors less implicit support from KO into the ratings." The stable outlook on Embonor reflects Standard & Poor's view that while increasingly challenged by intense competition (in a still volatile but gradually improving macroeconomic environment in most of its territories), Embonor is well positioned to progressively strengthen its positioning within its franchised territories. Embonor is the second-largest Coca-Cola bottler in Chile, where it generated about 75% of its cash flow in 2003 (measured as a percentage over consolidated EBITDA, pro forma for the sale of ELSA). In addition, Embonor is the largest Coca-Cola bottler in Bolivia, where it has a leading market share of 50%. ANALYST: Silvina Aldeco Martinez Buenos Aires Phone: (54) 114-891-2126 Marta Castelli Buenos Aires Phone: (54) 114-891-2128 PARMALAT CHILE: Sale to Bethia Awaits Parent's Consent ------------------------------------------------------ Chile's privately held Bethia investment group is now a step closer to acquiring a majority stake in Parmalat Chile. According to Reuters, Bethia has already wrapped up the financial terms of the deal. The only remaining obstacle is the Italian headquarters' approval, which remains vague. "Financially it's finalized. It's hung up on legal matters at headquarters. There's no clear position from Italy," said a Bethia official, who asked not to be named. "Next week, Tuesday or Wednesday, I think we could have some real news," he said. Parmalat Chile, the country's No. 5 dairy firm with US$45 million in sales last year, is behind in payments to farmers and many dairies have started selling to its competitors, which include Soprole, a unit of New Zealand's Fonterra Co-operative Group Ltd and the local unit of Swiss food group Nestle S.A. =================================== D O M I N I C A N R E P U B L I C =================================== CDEEE: DOP2.5 Billion Investment Needed to Head off Losses ---------------------------------------------------------- Dominican Republic state power company, CDEEE (Corporacion Dominicana de Empresas Electricas Estatales), needs a DOP2.5- billion, 10-year investment plan to reverse annual losses of more than DOP3 billion, CDEEE administrator Cesar Sanchez said in an interview with Hoy reporter, Fior Gil. The plan would include substituting the current internal combustion motors with coal-fired equipment at a very significant savings in fuel costs and operating efficiencies. The new installations would produce 1,500 MW of power. Mr. Sanchez said hydroelectric power and non-conventional power sources would be emphasized. He believes there's no other solution at hand beyond this simple mechanical substitution of more economical equipment. * IDB Approves $100 Million Fast-disbursing Loan ------------------------------------------------ The Inter-American Development announced Wednesday the approval of a $100 million fast-disbursing sector loan to the Dominican Republic to support the implementation of new monetary and financial legislation and strengthen its banking system. This loan and a $200 million emergency loan approved by the IDB's board in January are part of an assistance package offered to the Dominican Republic by international financial institutions to help its government overcome a crisis triggered by bank collapses in 2003. The program supported by the new loan will be carried out by the Central Bank of the Dominican Republic, the Banking Superintendency and the National Housing Bank. Its components are designed to strengthen these three agencies. Among the key goals of this program are promoting competition and increasing transparency and efficiency in the Dominican banking system, as well as fostering appropriate conditions to ensure its solvency by bolstering banks' capacity to withstand domestic or foreign shocks. The loan reflects the IDB's strategy of supporting the Dominican Republic's efforts to maintain macroeconomic stability and reduce the financial sector's vulnerability. The new program will support the modernization of the banking system's legal and regulatory framework to bring it up to internationally recognized standards. The loan is for a 20-year term, with a five-year grace period, and at a variable interest rate. Interest payments will be partially covered with resources from the IDB's Intermediate Financing Facility. Disbursements will be carried out in three tranches over a minimum of 18 months. The tranches will be of $40 million, $20 million and $40 million. ============= E C U A D O R ============= ANDINATEL/PACIFICTEL: Govt to Finalize Sale Strategy Friday ----------------------------------------------------------- Ecuador's government would hire an international investment bank to lead the sale of a contract to manage state-run fixed-line operators, Andinatel and Pacifictel, in behalf of the telcos' parent company, Fondo de Solidaridad (FS), local press quoted FS President Lucio Gutierrez as saying. But in a report citing FS spokesman, Ramiro Carrillo, Business News Americas said that the strategy mentioned by Lucio Gutierrez is just one of several third-party alternatives that the government will decide Friday. The spokesman said once the decision is made, the government will evaluate timelines and the costs involved in hiring a third party. The FS ran its own selection process in the fourth quarter of 2003, and succeeded in attracting seven applicants. But the process was heavily criticized by unions, prompting candidates to pull out, leaving the Eurocom consortium as the sole bidder. The Eurocom consortium, which is made up of Telecom Management Partner (TMP), a subsidiary of Norway's Telenor (Nasdaq: TELN), and local telecoms company Fononet, was subsequently disqualified because it had not complied with the bidding rules. Ecuador is under pressure to outsource management of the two operators to qualify for an aid package promised by the International Monetary Fund. =========== M E X I C O =========== TV AZTECA: U.S. SEC Sues Moises Saba, Albert Sutton for Fraud ------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION v. MOISES SABA MASRI, ET AL., 04 CV 1584 (S.D.N.Y.) (RJH) On February 25, 2004, the Commission filed a civil action in the United States District Court for the Southern District of New York against Moises Saba Masri ("Saba"), a Mexican national, and Albert Sutton, a broker at Middlegate Securities in New York City, New York. The Commission's complaint alleges that on August 20, 1999, the defendants violated the anti-fraud provisions of the federal securities laws by unlawfully "marking the close" and thereby manipulating the price of T.V. Azteca American Depository Receipts ("TZA"), which are listed on the New York Stock Exchange. The complaint seeks permanent injunctions and civil penalties against both defendants, and disgorgement with pre-judgment interest from Saba. According to the Commission's complaint, in February, March, and May 1999, Saba used the brokerage account of Tentafin Limited, an offshore corporation controlled by Saba and his family, at Middlegate to sell a large number of TZA put options having strike prices of $5 and $7.50 and an expiration date of August 20, 1999. These options, if exercised by their holders, contractually obligated Saba to buy nearly 860,000 shares of TZA at $5 per share, and nearly 500,000 shares of TZA at $7.50 per share, on the August 20, 1999 expiration date. The Commission's complaint alleges that on August 20, 1999, the price of TZA ranged from $4.9375 to $5.1875, ultimately hovering at $5 ten minutes prior to the close of trading. According to the complaint, at that point, Saba could reasonably expect that the holders of the TZA put options with a $7.50 strike price would exercise their options, causing a $3.7 million liability in Saba's Tentafin account. If the holders of the TZA put options with a $5 strike price also exercised their options, the complaint further alleges, Saba would likely incur a further liability of $4.3 million. The complaint charges that, in order to avoid incurring this additional liability, Saba instructed Sutton, his broker at Middlegate Securities, to begin buying TZA in the open market during the last ten minutes of trading so as to cause the per share price to close above $5. According to the complaint, Sutton then executed a series of precisely timed purchases with the purpose and effect of causing TZA's per share price to close above $5, thereby enabling Saba to avoid the $4.3 million additional liability on the $5 put options. The complaint alleges that Sutton's incremental purchases of 200,000 TZA during the last ten minutes of trading on August 20, 1999 constituted approximately 94% of the buy-side activity for that security during the last hour of the trading day. The complaint further alleges that, by engaging in these manipulative trades, Saba and Sutton violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Commission wishes to acknowledge the assistance of the Chicago Board Options Exchange in this matter. The U.S. SEC complaint is available here http://www.sec.gov/litigation/complaints/comp18593.htm TV AZTECA: Board OK's US$52 Mln Proposed Cash Distribution ---------------------------------------------------------- TV Azteca, S.A. de C.V.(NYSE: TZA) (BMV: TVAZTCA), one of the two largest producers of Spanish-language television programming in the world, announced Wednesday that its board of directors has approved the management's proposal to declare cash distributions to shareholders of US$52 million during 2004. The distributions are part of the company's ongoing plan to allocate a substantial portion of TV Azteca's expected cash generation to reduce the company's debt by approximately US$250 million and to make cash distributions to shareholders of over US$500 million by 2008. The company believes that an optimal use of an important part of its continued free cash creation is to further strengthen its capital structure and to make distributions following the guidelines of its plan for uses of cash. The shareholders' meeting to approve the distributions is scheduled to occur in April 2004. Company Profile TV Azteca is one of the two largest producers of Spanish- language television programming in the world, operating two national television networks in Mexico, Azteca 13 and Azteca 7, through more than 300 owned and operated stations across the country. TV Azteca affiliates include Azteca America Network, a new broadcast television network focused on the rapidly growing U.S. Hispanic market, and Todito.com, an Internet portal for North American Spanish speakers. ================= V E N E Z U E L A ================= HOVENSA: S&P Rates US$50.66 Million Tax-Exempt Bonds 'BBB' ---------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BBB-' rating to the Virgin Islands Public Finance Authority's $50.66 million tax-exempt revenue bonds due 2022 that the authority will repay with cash flow from the HOVENSA LLC crude oil refinery located in St. Croix, V.I. Standard & Poor's also affirmed its 'BBB-' rating on HOVENSA's $272 million senior bank facility and $150 million working capital facility, and its 'BBB-' ratings on the $63.02 million bonds due 2021 and $74.175 million bonds due 2022 issued by the government of the U.S. Virgin Islands and the $63.7 million bonds due 2021 issued by the Virgin Islands Public Finance Authority, each of which are repaid with cash flows from HOVENSA. The outlook remains negative. HOVENSA is 50% owned by a subsidiary of Amerada Hess Corp. (Hess; BBB/Negative/A-3) and 50% by a subsidiary of Petroleos de Venezuela S.A. (PDVSA; foreign currency rating B-/Stable/--). The Public Finance Authority is a public corporation of the U.S. Virgin Islands that raises capital for essential public projects and issues bonds to finance projects for private parties. The 'BBB-' rating reflects several risks, including exposure to crude oil feedstock and refinery output commodity prices. Strengths underlying the rating include the refinery's strong liquidity position at about $646 million. "Standard & Poor's is concerned about the potential for downward pressure on HOVENSA's ability to meet debt obligations during the clean fuels capital expenditure program if refining margins are poor and the refinery does not achieve cash flow forecasts," credit analyst Terry Pratt said. The projects plans to use the new bond proceeds plus cash to prepay $65 million in credit facility principal balances that are due in 2006. Once this transaction is completed, HOVENSA's next principal payment will not occur until June 2007. ANALYSTS: Terry A Pratt, New York (1) 212-438-2080 John Thieroff, New York (1) 212-438-7695 HOVENSA: Amerada Hess Ratings Affirmed; Outlook Stable ------------------------------------------------------ Fitch Ratings has affirmed the debt ratings of Amerada Hess Corporation (Hess) following a review of the company's 2003 results and updated plans for 2004. The Rating Outlook remains Stable. Fitch rates the debt of Amerada Hess as follows: -- Senior unsecured notes 'BBB-'; -- Senior unsecured credit facility 'BBB-'; -- Commercial paper 'F3'. Fitch has also assigned a 'BB' rating to the company's mandatory convertible preferred stock. The rating affirmation and stable outlook reflects Fitch's expectations that the upstream performance of Amerada Hess has stabilized going into 2004 as the company continues to rebuild its reserve base and production profile. In reviewing 2003 results, Fitch was focused on four key issues for the credit: -- Year End Reserve Report - As expected, the asset sales and swaps completed in 2003 generated substantial noise in the company's initial reserve reporting. Excluding these transactions, Amerada Hess replaced only 50% of production through the drill bit. Through the company's aggressive development program, Hess should report more than 100% organic replacement in 2004 and show significant improvement in finding and development costs. Improvement in both areas to more acceptable levels is critical, particularly given the significant impairments in 2002. -- Production Levels - Amerada Hess continues to forecast average production for 2004 at 325,000 barrels of oil equivalent (boe) per day before showing modest improvement in 2005 and beyond. Production costs including DD&A will remain a concern at more than $17.00 per barrel for 2004, but should drop in 2005 due to ongoing cost reduction efforts combined with a larger expected production base. -- Ongoing Development Projects - Amerada Hess is pursuing an aggressive development program, which includes twelve major projects. Progress continues on the two core growth projects - the Joint Development Area (JDA) of Malaysia and Thailand and Northern Block G offshore Equatorial Guinea. First production from both developments is expected in 2006. -- Commitment to Investment Grade Rating - In late 2003, Amerada Hess completed an offering of $675 million of mandatory convertible preferred stock. The company's use of proceeds to further reduce balance sheet debt by $546 million in the quarter to under $4 billion at year-end reflects the commitment to improving the balance sheet and credit profile. Balance sheet debt totaled nearly $5.7 billion at the end of 2001. Fitch continues to recognize 2003 and 2004 as rebuilding years for Amerada Hess. Including the dividends for the preferred stock under Fitch's price deck for 2004, Fitch would expect Hess to generate interest coverage of more than 5 times (x) with leverage as measured by debt-to-EBITDA of between 2x and 3x. Hess has hedged approximately 70% of its worldwide crude and 30% of its U.S. gas production for 2004 and 50% of 2005 worldwide crude production at prices above historical averages to protect cash flows for the company's capital program. Under Fitch's view of more mid-cycle prices, Fitch would expect Amerada Hess to be free cash flow negative in 2004 as capital expenditures of an estimated $1.5 billion would exceed cash flow from operations. The company, however, has flexibility in ultimate capital spending. Fitch also expects modest dividends in 2004 and beyond from the HOVENSA joint venture, providing an additional source of funds for Hess. HOVENSA has performed extremely well since start up of the coking unit in 2002, generating $367 million of EBITDA in 2003 despite being forced to source crude from alternate sources during the general strike in Venezuela. Amerada Hess is a large, independent oil and gas producer with operations focused in four core regions of the world - West Africa, the North Sea, the lower 48 states of the United States and Southeast Asia. Amerada Hess has historically been recognized as a mid-sized integrated oil company. With the sale of 50% of the St. Croix, Virgin Islands refinery to Petroleos de Venezuela, S.A. (PDVSA) in 1998, creating the HOVENSA joint venture, Hess has steadily refocused the company on its upstream operations. Hess also operates a retail network of nearly 1,200 sites along the east coast of the United States. PARMALAT VENEZUELA: To Launch Flavored Beverage Soon ---------------------------------------------------- Parmalat Finanziaria S.p.A.'s Venezuelan subsidiary will venture into the flavored drinks market, as part of its commitment to maintain its operations in the country despite an ongoing legal investigation into the dairy conglomerate's finances. According to Dow Jones, the unit plans to launch a new drink called "Bang," a grape- and cola-flavored beverage geared towards children. The new drink will sell for VEB500 each, and the unit will distribute 300,000 samples at schools across the country. Up until now, Parmalat has focused its Venezuela operations on milk, fruit juices, yogurts and cheeses. ********* 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 2004. 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. 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