/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040303.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, March 3, 2004, Vol. 5, Issue 44 Headlines A R G E N T I N A BAK PLASTIC: Files for "Concurso Preventivo" CONSULTORES INTEGRALES: Receiver Ends Credit Verification CP DE DIAGNOSTICO: Receiver's General Report Due Today EBD: Deadline for Proofs of Claim March 31 EMED: Court Sets Informative Assembly September 8 LA CUPLA: Credit Verification Process Ends March 18 LAS BAYAS: Creditors Have Until April 29 to File Claims METROGAS: Creditor Files Involuntary Bankruptcy Petition SANCAYET: Receiver Ordered to Submit General Report April 5 SCP/CGC: Court Terminates Bankruptcy Procedure SEMA DE RESPONSABILIDAD: General Report Due Today SINDUS: Court Okays Reorganization Petition TRAVELCLUB: Credit Verification Process Ends WULI: Credit Verification Reports Due April 14 B E R M U D A GLOBAL CROSSING: Tells FCC Legacy Charge Not Applicable to VoIP GLOBAL CROSSING: Completes Global FCO Network Project LORAL SPACE: Unit Launches Occasional-use Service on Telstar 10 B R A Z I L AHOLD: Sells Bompreco to Wal-Mart, Hipercard to Unibanco CFLCL: Posts Investor Relations Monthly Report TCP: Notice of Regular, Special Meetings of Shareholders TELEMAR: Starts Commercial Service of Velox Wi-Fi * IMF Managing Director Hails Reforms, Macroeconomic Policies C H I L E AES GENER: Fitch Assigns Prelim 'BB' Rating to Proposed Bond AES GENER: Parent Settles $298 Million Mercantile Account PARMALAT CHILE: Solari Wants Speedy Acquisition E C U A D O R PETROECUADOR: President Orders Immediate Reorganization M E X I C O CFE: Ex-Im Bank Opens $60 Million Credit Facility CINTRA: Books MXN250 Million Full-year Net Loss INDUSTRIAS PENOLES: Reports Bigger 2003 Net Loss SANLUIS CORPORACION: Fourth Quarter Sales Up 15% TFM: Violates Covenants on $195 Million Bank Loans P E R U PAN AMERICAN: Urges Holders to Convert Debentures Early V E N E Z U E L A PDVSA: Denies Signing 'Formal' Agreement with NB Power - - - - - - - - - ================= A R G E N T I N A ================= BAK PLASTIC: Files for "Concurso Preventivo" -------------------------------------------- Buenas Aires-based Bak Plastic Italo Argentina S.R.L. seeks court permission to undergo reorganization. The case is pending before Court No. 4, with Clerk No. 8 assisting. CONTACT: Bak Plastic Italo Argentina S.R.L. Bragado 4955 Buenos Aires CONSULTORES INTEGRALES: Receiver Ends Credit Verification --------------------------------------------------------- Mr. Omar Sergio Luis Vazquez, receiver for Consultores Integrales De Gestion Empresaria S.A., will close the credit verification process today. He will then prepare the individual reports for action by Buenos Aires' Court No. 13, which is handling the company's bankruptcy procedure. CONTACT: Omar Sergio Luis Vazquez Ave Santa Fe 1127 Buenos Aires CP DE DIAGNOSTICO: Receiver's General Report Due Today ------------------------------------------------------ The general report on the bankruptcy of Clinica Privada de Diagnostico las Flores S.A. must be submitted to the province's Court No. 14 today. Company receiver, Mr. Julio Benjamin Alvarez, is expected to submit a summary of the individual reports on the credit verification results. CONTACT: Clinica Privada de Diagnostico las Flores S.A. Las Flores 455 Wilde, Lomas de Zamora Julio Benjamin Alvarez Espana 266 Banfiled, Lomas de Zamora EBD: Deadline for Proofs of Claim March 31 ------------------------------------------ Buenos Aires Court No. 3 declared local company EBD S.A. bankrupt, according to local news source Infobae. The court ordered company receiver, Mr. Luis Ricardo Kralj, to examine and authenticate creditors' claims until March 31. The receiver's duties include the preparation of the individual and general reports due on May 17 and June 29, respectively. The company's assets will be liquidated at the end of this process. CONTACT: Luis Ricardo Kralj Bouchard 468 Buenos Aires EMED: Court Sets Informative Assembly September 8 ------------------------------------------------- The credit verification process for EMED Emergiencias Medicas S.R.L. ends today. Company receiver, Mr. Jose Ignacio Lluna, is now expected to submit to Necochea Court No. 1 the individual reports on the results of the verifications. Thereafter, the court will order him to consolidate these reports in a single document in preparation for the informative assembly, which has been slated for September 8. This assembly is one of the last parts of the reorganization process. CONTACT: E.M.E.D. Emergencias Medicas S.R.L. Calle 69 No. 836 Necochea Jose Ignacio Lluna Calle 56 Nro. 2863 Necochea LA CUPLA: Credit Verification Process Ends March 18 --------------------------------------------------- Creditors of Argentine company La Cupla S.R.L. must file their proofs of claim before March 18. Company receiver, Mr. Leonardo Andres Mancebo, is required by La Plata Court No. 3 to submit the individual reports on the results of the verification on May 3; and the general report -- a summary of the individual reports -- on June 3. The informative assembly will take place on August 24. CONTACT: La Cupla S.R.L. Ruta Nacional 3km 58.800 Canuelas, La Plata Leonardo Andres Mancebo Calle 35 No. 824 La Plata LAS BAYAS: Creditors Have Until April 29 to File Claims ------------------------------------------------------- Insolvency Judge Dieuzeide of Buenos Aires Court No. 1 declared local company Las Bayas S.A. bankrupt. Argentine newspaper La Nacion said the court appointed Ms. Lydia Albite as company receiver. Creditors are required to file their claims before April 29. The receiver will examine and authenticate proofs of claims to determine the nature and amount of the company's debts. CONTACT: Las Bayas S.A. Jose Cubas 3141 Buenos Aires Lydia Albite Tacuari 119 Buenos Aires METROGAS: Creditor Files Involuntary Bankruptcy Petition -------------------------------------------------------- Chameris Investment S.A. has lodged an involuntary bankruptcy case against Argentine natural gas distributor, Metrogas S.A., for defaulting on a EUR322,125 obligation. In a disclosure to the Buenos Aires stock exchange Thursday, Metrogas said the petition is pending before commercial court no. 26, secretariat 51. Metrogas, which stopped payments on all its debt in March 2002, launched an offer on November 7 to restructure US$440 million in debt. The offer expires on March 9. Metrogras 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. CONTACT: METROGAS, S.A. Gregorio Araoz de Lamadrid 1360 Buenos Aires Argentina CPA C 1267 Phone: +54 11 4309 1010 Fax: +54 11 4309 1025 Home Page; http://www.metrogas.com.ar Contact: William Harvey Alvarez, President SANCAYET: Receiver Ordered to Submit General Report April 5 ----------------------------------------------------------- Sancayet S.A.'s reorganization process moves on with receiver, Mr. Ernesto Carlos Borzone, now required to prepare the individual reports of the credit verification process, which ends today. Buenos Aires Court No. 24 expects the general report, consolidating the individual reports, on April 5. CONTACT: Sancayet S.A. Uruguay 385 Buenos Aires Ernesto Carlos Borzone Cuenca 1464 Buenos Aires SCP/CGC: Court Terminates Bankruptcy Procedure ---------------------------------------------- Argentine oil and entertainment company Sociedad Comercial del Plata S.A. (SCP) revealed that the Company and its former subsidiary, Compania General de Combustibles (CGC), have concluded their bankruptcy proceedings. In a letter to the Buenos Aires Stock Exchange Monday, SCP said the commercial court judge handling their formal restructuring proceedings has approved their debt agreements and the subsequent ending of their restructuring proceedings. SCP, according to Dow Jones, defaulted on about $780 million of debt in May 1999 and filed for bankruptcy a year later. The legal approval of the bankruptcy proceedings includes a green light for SCP's debt restructuring proposal, which was modified in early September 2003 and approved by creditors one month later. Its main creditors are a pool of banks conformed by Citibank, Societe Generale, Sudameris and BNL among others. In June 2003, SCP retained a 19% stake in Compania General de Combustibles, its main holding, and ceded the controlling stake to Southern Cross Corp., a Connecticut-based firm. That sale left SCP with only a few entertainment assets, including tourist train operator Tren de la Costa. That subsidiary received legal approval for its debt restructuring in September 2003, ending its own bankruptcy proceedings. SEMA DE RESPONSABILIDAD: General Report Due Today ------------------------------------------------- Court No. 6 of the Civil and Commercial Tribunal of San Miguel de Tucuman in Argentina ordered the receiver of Sema de Resposabilidad Limitada S.R.L. to file the general report today. This general report is just the summary of the individual reports earlier submitted to the court for action. The Company's assets face liquidation at the end of the bankruptcy proceedings. SINDUS: Court Okays Reorganization Petition ------------------------------------------- Court No. 8 of the Civil and Commercial Tribunal of Lomas de Zamora in Argentina approved Sindus S.R.L.'s petition to undergo reorganization. Receiver, Ms. Analia Virginia Dominguez, will verify creditors' claims until March 3, according to Infobae. The individual reports on the verification results are due on April 6; the general report is due May 31. The informative assembly will be held on June 17. CONTACT: Analia Virginia Dominguez Pasaje las delicias 1181 Adrogue, Lomas de Zamora TRAVELCLUB: Credit Verification Process Ends -------------------------------------------- The credit verification process of Travelclub S.A. ends today. Company receiver, Mr. Estudio Jose Antonio Calvio, is now required to prepare the individual reports, which are due in court on April 14. The general report is due May 27. CONTACT: Estudio Jose Antonio Calvi o Viamonte 1355 Buenos Aires WULI: Credit Verification Reports Due April 14 ---------------------------------------------- Mr. Jorge Eladio Feito, receiver of Wuli S.A., must file with the Buenos Aires Court No. 2 the individual reports on the credit verification results on April 14. CONTACT: Wuli S.A. Parana 326 Buenos Aires Jorge Eladio Feito San Martin 662 Buenos Aires ============= B E R M U D A ============= GLOBAL CROSSING: Tells FCC Legacy Charge Not Applicable to VoIP --------------------------------------------------------------- Global Crossing (Nasdaq: GLBC), a leading innovator in Voice over IP (VoIP) services, filed comments with the Federal Communications Commission (FCC) (Wireline Docket Number 03-266) concerning the proper regulation of IP telephony. In its comments, Global Crossing encouraged the Federal Communications Commission to expeditiously issue clear and simple rules on the issues surrounding IP telephony, thereby stimulating investment in the nation's telecommunications infrastructure, promoting effective competition in this important market, and freeing companies to innovate and maximize the potential value of this emerging technology. "The FCC must provide the proper incentives to ensure the growth of IP telephony and VoIP services which will be vital to the telecommunication industry and future economic growth," said John Legere, Global Crossing's chief executive officer. "Speed and certainty are fundamental to this objective." Global Crossing also recommended that the FCC affirmatively declare that the legacy access charge system designed for traditional circuit-switched voice telephony service does not apply to Internet Protocol services. "The legacy access charge system has been proven unworkable in today's environment and it would be irresponsible for the FCC to apply it to IP traffic," added Mr. Legere. ABOUT GLOBAL CROSSING Global Crossing (Nasdaq: GLBC) provides telecommunications solutions over the world's first integrated global IP-based network. Its core network connects more than 200 cities and 27 countries worldwide, and delivers services to more than 500 major cities, 50 countries and 5 continents around the globe. The company's global sales and support model matches the network footprint and, like the network, delivers a consistent customer experience worldwide. Global Crossing IP services are global in scale, linking the world's enterprises, governments and carriers with customers, employees and partners worldwide in a secure environment that is ideally suited for IP-based business applications, allowing e- commerce to thrive. The company offers a full range of managed data and voice products including Global Crossing IP VPN Service, Global Crossing Managed Services and Global Crossing VoIP services, to more than 40 percent of the Fortune 500, as well as 700 carriers, mobile operators and ISPs. Please visit http://www.globalcrossing.comfor more information about Global Crossing. CONTACT: GLOBAL CROSSING Press Contacts Catherine Berthier Phone: +1 212-412-4666 E-mail: PR@globalcrossing.com Analysts/Investors Contact Mitch Burd Phone: + 1 800-836-0342 E-mail: glbc@globalcrossing.com GLOBAL CROSSING: Completes Global FCO Network Project ----------------------------------------------------- Global Crossing (NASDAQ: GLBC) has completed the roll out of a worldwide network for the U.K. Foreign and Commonwealth Office (FCO). The final element of the network is a satellite earth station in Canberra, Australia, established to serve FCO posts in the Pacific islands. By connecting the island nations of Tonga, Fiji, Papua New Guinea and the Solomon Islands, the FCO Telecommunications Network (FTN) now extends to 220 sites in 140 countries. The contract, which runs to 2010, now generates more than $40 million a year and an estimated $446 million over the life of the contract. This global Internet Protocol-based private network is the largest outsourcing project ever awarded by the FCO, providing secure, high-speed voice, data and messaging services to more than 14,000 users in British embassies, consulates and high commissions worldwide. Network security is a critical element of the design, provision and operation of these services. The versatility and efficacy of the FCO's network was further demonstrated in recent months when Global Crossing extended the FTN into Kabul in Afghanistan and provided international communications to the Coalition Provisional Authority (CPA) in Iraq. Rapid-deployment satellite links in the two major cities of Basra and Baghdad, featuring secure communications equipment, were commissioned within a month and will continue to operate until a sovereign government is elected. In addition, the FTN is now used by other government departments that share FCO offices around the world -- more than 2,000 staff of Her Majesty's Customs and Excise and the Department for International Development that are posted abroad use the FTN for their communications needs in 52 countries. Phil Metcalf, managing director of Global Crossing Europe, said: "The completion of this final phase of the FTN underscores our ability to deploy global managed services, regardless of the challenges of geography, technology, security and scalability. This has proved to be an excellent solution for both partners -- one that is both cost effective and profitable. Our success with the FCO has attracted the attention of the Spanish, Italian and Danish governments, who are interested in replicating the system for their foreign offices." The FCO's Head of Communications Services, Derek Blackburn, said: "The FTN has transformed the FCO's international operations. Within the UK, we now have significant resilience in all of our links to guard against any network disruption that may come our way -- an essential consideration in the current environment. In locations abroad where it used to take hours just to make a successful call to London, we now have users browsing the Internet, permanently connected to e-mail and accessing government intranet sites with no unwanted restrictions. That means staff have more time to do their real job of being diplomats and ambassadors representing our country." The scale and complexity of this flagship government contract underline Global Crossing's vast experience in the government sector over a period of 15 years. The company strategy for the public sector is to leverage the extensive 500-city network, exploit network security certification with the UK government and use the accumulated experience of serving more than 90 UK government departments to build the government business in North America and continental Europe. In rolling out the FTN, Global Crossing maximized the unique reach of its global network, using satellite for local access in remote and under-developed regions of the world where local infrastructure is inadequate or unreliable. Global Crossing owns and operates two satellite earth stations, one in Canberra and another in Hampshire in the UK which is connected to the Intelsat 904 satellite positioned over the Indian Ocean and Telstar 12 in geostationary orbit over the Atlantic, serve 120 posts. These earth stations support 2Mbps capable links that are providing users with full access to the voice, data and video conferencing services available on the FTN, opening up the use of applications such as online visa applications. The FTN has transformed the way the FCO communicates as an organization. The improvement in the FCO's ability to communicate with outlying posts has been most dramatic, particularly in developing countries where the FTN is now delivering first-world standards of communications. All FCO posts throughout the world now have equal access to information via the FCO's Firecrest office automation system. LORAL SPACE: Unit Launches Occasional-use Service on Telstar 10 --------------------------------------------------------------- Loral Skynet announced Monday the availability of occasional use services on its far-reaching Telstar 10 satellite, covering Asia, Australia, parts of Europe and Africa in C-band; and Korea, Taiwan, Macau and China, including Hong Kong, in Ku-band. Loral Skynet is a subsidiary of Loral Space & Communications (OTC Bulletin Board: LRLSQ). Loral Skynet's occasional-use service allows its customers to lease fractional transponders on a part-time basis. Offered in 5-minute increments, this service offers a cost-efficient platform for delivering breaking news stories, planned events, or regularly scheduled recurring feeds. Loral Skynet will initially offer satellite capacity on Telstar 10, and expand the service to the new Telstar 18 satellite when it enters service over Asia, presently planned for the second quarter of 2004. Ascent Media Pte. Ltd, through its Singapore facility, will provide satellite booking and access management services, enabling Skynet's customers to package terrestrial services with Telstar satellite capacity. Skynet's occasional use services in Asia will initially be available in C-band, expanding to Ku-band later this year. "Loral Skynet has successfully offered occasional-use services in North America and Europe for years and we're happy to now bring this service to Asia," said Terry Hart, president, Loral Skynet. "Part-time offerings enable many value-added end-to-end services including videoconferencing, business television, pre- and post-production feeds, broadcast distribution of sports, educational, ethnic and niche programming, special events, Internet and ad delivery." "We are pleased to work with Loral Skynet," added Jeff Casey, vice president, sales and marketing, Ascent Media. "Our own well-founded depth of knowledge about the Asian market complements the broad coverage offered now by Telstar 10 and soon by Telstar 18. Working together with the Loral Skynet team, our focus will be on customer service, responsiveness, and superior technical support to the region's occasional use market." In addition to the occasional-use services in Asia on Telstar 10, Loral Skynet provides occasional-use service on Telstar 11 and Telstar 12 in Europe, the Middle East and Africa. Telstar 10, located at 76.5 degrees East longitude, is equipped with 27 C-band and 24 Ku-band transponders (36 MHz equivalents). The C-band payload provides coverage of Asia, Australia, parts of Europe and Africa. The Ku-band payload covers Korea, Taiwan, Macau and China, including Hong Kong. Telstar 10, which hosts one of the most extensive cable neighborhoods in Asia, distributes cable TV programming, direct-to-home services, telecommunications, as well as Internet and VSAT (very small aperture terminal) services. Telstar 18 will be located at 138 degrees East longitude. The satellite is equipped with 19 C-band transponders at 36 MHz and 8 Ku-band transponders at 54 MHz. The C-band covers Asia, Australia, New Zealand, the Pacific islands and Hawaii and the Ku-Band reaches China, India, Taiwan, Hong Kong and Korea. Its main markets will be cable programming, direct-to-home broadcasting, Internet and VSAT services within Asia while providing an inter-connect to the U.S. Ascent Media Network Services specializes in video distribution and post- production services, with facilities in Los Angeles, CA; New York; NY; Stamford, CT; Minneapolis, MN; London, and Singapore. Channel origination, master control, creative services and transmission are among the many offerings utilized by the major broadcast and cable networks as well as other content providers. In addition, the group provides a full array of engineering and technical services for broadcast, cable, satellite, and corporate clients. Ascent Media Group is a provider of services to the media entertainment industry, offering clients effective solutions for the creation, management and distribution of content through more than 70 facilities worldwide. A wholly owned subsidiary of Liberty Media Corporation (NYSE: L, LMC.B), Ascent Media Group (http://www.ascentmedia.com)is headquartered in Santa Monica, CA. A pioneer in the satellite industry, Loral Skynet continues to deliver the superior service quality and range of satellite solutions that have made it an industry leader for more than 40 years. Through the broad coverage of the Telstar satellite fleet, and in combination with its established hybrid VSAT/fiber global network infrastructure, Skynet is a source for all broadcast, data network, Internet access, IP and systems integration needs. Headquartered in Bedminster, New Jersey, Loral Skynet is dedicated to providing secure, high-quality connectivity and communications. For more information, visit http://www.loralskynet.com. In addition to being the parent company of Loral Skynet, Loral Space & Communications is a world-class leader in the design and manufacture of satellites and satellite systems for commercial and government applications through its Space Systems/Loral subsidiary. CONTACT: Amy Trowbridge Phone: (908) 470-2495 E-mail: atrowbridge@loralskynet.com Investor Contact: John McCarthy Phone: (212) 338-5345 Web site: http://www.loral.com =========== B R A Z I L =========== AHOLD: Sells Bompreco to Wal-Mart, Hipercard to Unibanco -------------------------------------------------------- Ahold has sold its Brazilian retail chain Bompreco to Wal-Mart Stores Inc. Simultaneously, Ahold sold its Brazilian credit card operation Hipercard to Unibanco S.A. The combined enterprise value of these operations amounts to approximately US$500 million. The assets consist of Bompreco (a food retailer with 118 hypermarkets and supermarkets with a leading position in Northeastern Brazil) and Hipercard (the leading credit card in Northeastern Brazil with over 2 million cardholders). G. Barbosa, Ahold's other Brazilian retail operation with 32 stores that was acquired by Ahold in January 2002, is not included in the transaction. Wal-Mart Stores, Inc., started operations in Brazil in May 1995. Operating under different banners, the company's stores and clubs are located in the states of Sao Paulo, Parana, Rio de Janeiro and Minais Gerais. With sales of BRL1.9 billion in 2003, Wal-Mart Brazil has approximately 7,000 employees. Unibanco, the third largest private sector Brazilian financial group, focuses on retail and wholesale banking, and insurance and pensions and wealth management. Commenting on the agreements, Theo de Raad, the Ahold Corporate Executive Board member responsible for Latin America and Asia, said: "We are delighted to have found buyers of such quality as Wal-Mart and Unibanco. They offer an excellent fit for Bompreco and Hipercard and we are confident that this will prove great for customers, associates, suppliers and others involved." The divestment of Ahold's activities in Brazil is part of Ahold's strategy to optimize its portfolio and to strengthen its financial position by reducing debt. Ahold first entered the Brazilian market in 1996 through an agreement with the owner of Bompreco. In October 2001, Bompreco became a wholly owned subsidiary of Ahold. Unaudited 2003 net sales for Bompreco amounted to approximately BRL2.9 billion (approximately Euro843 million). Bompreco and Hipercard employ more than 20,000 people. CFLCL: Posts Investor Relations Monthly Report ---------------------------------------------- Edition # 01/2004 - Feb. 20th, 2004 Sale completed of two SHPs for BRL131.7 million In due accordance with art. 3 of CVM Instruction 358/2002 and further to the Relevant Information published on November 7, 2003, the company Companhia Forca e Luz Cataguazes-Leopoldina ("CFLCL") gives notice that on December 24, 2003, Brascan Energetica S/A and Brascan Natural Resources S/A (referred to collectively as "BRASCAN") and CFLCL irrevocably and irreversibly executed the Purchase and Sale Agreement of Shares in the Centrais Hidreletricas Grapon S/A (a CFLCL subsidiary) which is the controlling shareholder of the Ivan Botelho I and T�lio Cordeiro de Mello Small Hydroelectric Power Plants ("Power Plants"), involving the transfer of the loans of BRL51.7 million taken out from the Banco Nacional de Desenvolvimento Economico e Social (National Development Bank) to build said Power Plants. Prior consent from the regulatory agency and debenture holders concerning the sale of said shares was also obtained in December 2003. The aforementioned Agreement was settled on February 20, 2004, which provided CFLCL with cash amount of approximately BRL 80.0 million. This transaction resulted in positive earnings for the 2003 fiscal year of approximately BRL45.2 million, net of book value of the assets sold. Another SHP (24 MW) enters in commercial operation The Ormeo Junqueira Botelho SHP, the new name of the old Cachoeira Encoberta SHP, was built in just 18 months and began operating commercially at the end of December, despite the array of geological surprises encountered on the land which it occupies in the Muriae region (Minas Gerais state). This is the fourth of the five SHPs currently under construction to have begun operating commercially this year. Including the 24 MW installed capacity (102 GWh annual production capacity) introduced by this SHP, the Sistema Cataguazes-Leopoldina now has an installed capacity of approximately 190 MW (1,175 GWh annual production capacity), which corresponds to roughly 20% of its retail market. Consolidated operating revenue of Cataguazes Cataguazes- Leopoldina was BRL1,320 million in 2003 The consolidated gross operating revenue of Cataguazes- Leopoldina (CFLCL) reached BRL1,320 million in 2003, which represents an increase of 25.5% on 2002. The invoiced revenue in December was BRL132 million. This performance is mainly due to the energy sales increase in the concession area of its subsidiary Saelpa, which have set a new record for the second consecutive month. Saelpa sales in December was 206 GWh, up 7.7% against December 2002 and 1.6% over November 2003. The consolidated electricity sales have risen by 7.1% in 2002, reaching 5,891 GWh, which is mainly due to the increasing energy sales made by the subsidiaries Saelpa, CELB and Energipe, which operate in the Brazilian Northeast region. CONTACT: In Cataguases Phone: +55 32 3429-6000 Fax: +55 32 3429-6480 / 3429-6317 In Rio de Janeiro Phone: +55 21 2122-6900 Fax: +55 21 2122-6931 Web site: http://www.cataguazes.com.br E-mail to: stockinfo@cataguazes.com.br TCP: Notice of Regular, Special Meetings of Shareholders -------------------------------------------------------- The shareholders are hereby called to attend the Regular and Special Meetings of Shareholders of the company to be held at 1:00 p.m. on March 26, 2004 at Teatro Vivo, on Av. Roque Petroni Junior, 1464 - terreo (Teatro Vivo), Morumbi, in the Capital of Sao Paulo State, in order to make resolutions on the following agenda: At the Regular Meeting of Shareholders: (1) To take the Directors' and Officers' accounts; to review, discuss and vote the company's financial statements for the fiscal year ended on December 31, 2003; (2) To elect the members of the Audit Committee; and (3) To determine the overall annual compensation of the directors and officers of the company and the individual compensation of the members of the Audit Committee. At the Special Meeting of Shareholders: To ratify the election of two Directors. GENERAL INSTRUCTIONS: (A) Proxies for representation of shareholders at the Meetings should be deposited with the company's head-office, at Av. Roque Petroni, 1464, 3o andar - lado B (Legal Department), until forty-eight (48) hours before the beginning of the Meetings. (B) Shareholders participant of the Fungible Custody of Registered Shares of the Stock Exchanges wishing to attend these Meetings should produce a statement issued until forty-eight (48) hours before the beginning of the meetings, evidencing their respective shareholding. TELEMAR: Starts Commercial Service of Velox Wi-Fi ------------------------------------------------- Brazilian wireline operator Telemar and its wireless subsidiary, Oi, have begun commercializing their wireless local access service, Velox Wi-Fi, under a prepaid model, Business News Americas said Monday. "With Velox Wi-Fi, users from all over Brazil will have wireless Internet access in hotels and airports all over the country, without having to pay a monthly fee," Telemar said in a statement. The pricing plans are BRL25 (US$8.64) for a one-day unlimited pass, BRL10 for a single hour, or BRL15 for two hours within a three-month period. Prepaid card vendor locations will appear instantly on users' wireless computer screens when they are located within a Telemar Wi-Fi area. * IMF Managing Director Hails Reforms, Macroeconomic Policies ------------------------------------------------------------- International Monetary Fund (IMF) Managing Director Horst Kohler made the following statement Monday in Sao Paulo at the conclusion of his visit to Brazil: "It is with great pleasure that I again visit Brazil. I had a very productive meeting with President Luiz Inacio Lula da Silva yesterday [Sunday], and I would like to extend my thanks to his Excellency for his warm welcome. Another highlight of my trip was my visit earlier today [Monday] to communities in Minas Gerais that are benefiting from the Zero Hunger program and the Milk for Life project, as well as to the Jaiba irrigation project. "It has been a little over a year since I last visited Brazil. The changes in this short period of time are immense. The government has adhered to prudent macroeconomic policies and tackled long-standing structural problems by passing reforms of the pension and tax system and making progress on a new bankruptcy law. This strong performance is clearly bearing fruit: a broad-based economic recovery is underway that should strengthen during 2004, employment is on the rise, exports have expanded at double-digit rates, and vulnerabilities have been reduced. These developments leave Brazil well-positioned to benefit from the global upturn. "My discussions with the President, who was accompanied by Finance Minister Antonio Palocci and Central Bank Governor Henrique Meirelles, focused on the need to instill a framework for sustained medium term growth and improved equity in Brazil and, more generally, in the Latin American region. In this context, we discussed how best the IMF and the other international institutions can contribute to moving forward economic and social reforms toward this goal. "We agreed that consistently building the social and physical infrastructure needs to be given priority in such a framework, especially against a background of falling and volatile infrastructure investment in many countries in the region. The IMF is working to develop new statistical and policy guidelines that would create more flexibility for increasing sound public investments within an overall framework of fiscal and debt sustainability. I hope to discuss this issue further in the coming months with Minister Palocci and other Ministers in the region after an initial discussion with the Fund's Executive Board. Of course, we will be coordinating our efforts closely with our colleagues in the World Bank and the Inter-American Development Bank (IDB). "I also listened carefully to President Lula's views on how the IMF can enhance its crisis-prevention role in Latin America and other emerging market countries. I assured President Lula that crisis-prevention lies at the heart of the Fund's agenda and that the Executive Board will soon discuss possible modalities to increase further our role in crisis-prevention and in helping countries cope with unexpected shocks. "During my visit, I was anxious to see first-hand how the government is tackling its mandate to improve living standards for the most vulnerable citizens. My visit to Minas Gerais, in the company of Social Affairs Minister Patrus Ananias, gave me an opportunity to see how the authorities are putting their social commitment into practice, and it has left a very deep impression on me. The flagship Zero Hunger program has generated interest throughout the world because of its multidimensional approach that addresses the varied causes and manifestations of hunger in both urban and rural communities. Initiatives like Zero Hunger and the Milk for Life project are concrete examples of social safety net programs whose experience will also be beneficial to other countries combating poverty and hunger. I was privileged to meet with Archbishop Geraldo Magela de Castro in Montes Claros who explained the enormous contribution that the Milk for Life project is making to the poor families in the area. I also visited the Ja�ba irrigation project that is transforming the livelihood of scores of hundreds of poor families dependent on agriculture. "We, at the IMF, have a long-standing commitment to support Brazil's efforts to achieve growth rates that are commensurate with its great economic potential and to improve living standards, particularly for the poor." CONTACT: INTERNATIONAL MONETARY FUND 700 19th Street, NW Washington, D.C. 20431 USA IMF EXTERNAL RELATIONS DEPARTMENT Public Affairs Phone: 202-623-7300 Fax: 202-623-6278 Media Relations Phone: 202-623-7100 Fax: 202-623-6772 ========= C H I L E ========= AES GENER: Fitch Assigns Prelim 'BB' Rating to Proposed Bond ------------------------------------------------------------ Fitch Ratings has assigned a preliminary 'BB' rating to AES Gener S.A.'s (Gener) proposed long-term US$300 million 144A bond issuance. The bond will be interest only and have a bullet maturity. Proceeds from the issuance will be used to partially finance the repurchase of outstanding debt through a tender offer. The company's 'BB-' international foreign and local currency ratings and 'chl BBB-' national scale rating remain on Rating Watch Positive and will be finalized upon completion of the transactions. The assigned rating to the proposed issuance is based on Gener's pro forma capitalization, leverage and interest coverage ratios following the completion of the company's recapitalization plan. The underlying credit rating also reflects Gener's position as the largest thermal generator in Chile, its competitive dispatch position, its operating strategy to optimize contract electricity sales, a constructive regulatory environment, an economically sound and growing service area, and experienced management. The operating fundamentals of Gener continue to reflect the company's sound position in the Chilean electricity market. Electricity demand growth in Chile has been almost 6% over the last twelve months and regulated prices have continued their upward trend, increasing approximately 9% in U.S. dollar terms in the October 2003 tariff reset. Gener further benefits from its project-like structural characteristics, including long- dated power purchase agreements (PPAs) with financially strong customers and fuel supply contracts that reduce business risk. The rating also considers exposure to variations in hydrology and the impact on electricity generation, commodity price risks, currency risks and ongoing competitive pressures. The international bond offering is part of Gener's announced recapitalization plan to address approximately US$700 million of debt maturing in 2005 and 2006 and reduce total debt by US$300 million. Sources of funds to repay and refinance existing debt include the new US$300 million international bond, the US$298 million repayment to Gener of a mercantile account (intercompany loan) from Gener's direct holding company, Inversiones Cachagua (Cachagua), a new US$75 million unsecured term loan, a capital increase for up to US$125 million to be effected by Cachagua and cash on hand at Gener. The company has also announced its intention to pay a US$100 million dividend following completion of the debt refinancing/repayment. The company has tendered for the US$200 million of outstanding Yankee bonds due in 2006 and the US$500 million of Chilean and US convertible bonds due in 2005. Approximately US$145 million of Yankee bonds have been tendered and are expected to be paid with proceeds from the mercantile account promptly. The tender for the convertible bonds has been extended until the end of March, however it is expected that Gener will call any convertible bonds not tendered. The convertible bonds will be paid with proceeds from the new bond and term loan, cash on hand, and proceeds from the capital increase. Existing Yankee bonds that are not tendered will be repaid by their scheduled maturity of January 2006. The US$300 million debt repayment and new bond will reduce leverage, increase interest coverage ratios and significantly extend the average debt maturity profile of the company improving the company's financial flexibility. Following the recapitalization transactions, consolidated EBITDA-to-interest (excluding Chivor, Gener's Colombian generating company) is expected to increase to 3.2x for 2004 from 2.1x through 2003. Debt-to-EBITDA should remain stable at 4.1x for 2004, though Gener's liquidity position is expected to include increased cash related to the completed contract negotiation with one of its largest customers, Minera Escondida resulting in a lower net debt to EBITDA ratio. Although Gener continues to consolidate Chivor in its reported financial statements, the company has excluded Chivor from its financial projections given the prohibition of dividends and the limited guaranteed support for the company. In addition to the recapitalization of Gener, the company has also renegotiated US$151 million of consolidated debt associated with the TermoAndes and InterAndes projects to extend maturities and improve the amortization schedule. The projects have accrued restricted cash of approximately US$36 million as of end of February 2004, which was used to partially repay the existing debt. The underlying credit quality of Gener also benefits from certain structural protections. Gener's stand-alone creditworthiness is supported by: the company being domiciled in Chile, limitations on dividends or intercompany loans, the inclusion of independent directors on the company's board of directors and strengthened corporate governance, which also affords it a high degree of isolation from its parent company, The AES Corporation (AES, Fitch-rated 'B' senior unsecured rating). Gener is the second largest electricity generation group in Chile in terms of operating revenue and generating capacity (22% market share) with an installed capacity of 1,804 MW. The company currently participates in electricity generation in Colombia, Argentina and the Dominican Republic, as well as natural gas transportation in Chile and Argentina. Gener is 98.65% owned by AES. CONTACT: Fitch Ratings Jason T. Todd Chicago Phone: 312-368-3217 Carlos Diez Santiago, Chile Phone: 562-206-7171 James Jockle New York Phone: 212-908-0547 AES GENER: Parent Settles $298 Million Mercantile Account --------------------------------------------------------- U.S. utility AES Corp. settled Friday a US$297.9 million mercantile account with its Chilean unit AES Gener, informed Geners general manager Felipe Ceron. This sum has to do with a contract subscribed in February 2001 between AES Gener S.A. -- then called Gener S.A. -- and Inversiones Cachagua, a company through which AES controls its Chilean subsidiary. The payment is part of AES' previously announced debt overhaul plan for its Chilean unit, which also includes a US$125 million capital increase, a US$75 million syndicated loan, the issuance of some US$300 million in new bonds and the buy back of around US$700 million in notes. PARMALAT CHILE: Solari Wants Speedy Acquisition ----------------------------------------------- Chilean businesswoman Liliana Solari, one of the owners of department store chain Falabella and head of investment company Inversiones Bethia, wants to close the acquisition of Italian dairy company Parmalat S.p.A.'s operations in Chile as soon as possible. Ms. Solari is also after Parmalat's units in Argentina and Uruguay, though executives close to the businesswoman denied this possibility. Market sources confirmed Bethia had offered to acquire all of the assets of the Italian dairy company in Argentina, Uruguay and Chile. Accordingly, Ms. Solari had initially offered to buy the Chile assets but later expanded her proposal in an attempt to have a better negotiating position. Parmalat bills around US$140 million in these three markets. The prospect of acquiring these assets makes Bethia executives cringe, however. These Parmalat units have huge contingent debts and liabilities, including US$145 million owed to banks and US$25 million owed to its parent. In Argentina, Parmalat is a little behind in payments to suppliers but does not have big debts. Parmalat's unit in Uruguay is involved in suspicious dealings through a local investment company named Winshaw Trading. Parmalat is believed to have funneled large sums of money to Winshaw Trading. In Chile, Bethia offered to pay part of Parmalat's US$3.68 million debt to suppliers in the South of the country, so that the company can restart regular operations. ============= E C U A D O R ============= PETROECUADOR: President Orders Immediate Reorganization ------------------------------------------------------- Ecuadorian President Lucio Gutierrez on Monday placed Petroecuador under a "state of emergency" as part of an effort to stamp out oil theft and trim bureaucracy within the state- owned oil company, reports EFE. "We have information that some workers and former officials are living like sheiks and we want to know how they obtained so much money in so little time," Mr. Gutierrez said at a news conference. The president gave Energy Minister Carlos Arboleda two months to restructure the Company and slash bureaucracy. Mr. Arboleda has three months to show results and six months to eliminate the widespread theft of fuel. The government estimates it loses US$100 million to US$150 million annually from the theft of fuel. President Gutierrez said the armed forces and police will heighten security along pipelines and around storage areas. On Friday, the president fired more than twenty senior Petroecuador executives, including two vice presidents, in an attempt to improve the Company's health. In addition, the president said he will ask judicial authorities to investigate possible corruption by high-ranking government officials from the energy sector dating back to 1989. =========== M E X I C O =========== CFE: Ex-Im Bank Opens $60 Million Credit Facility ------------------------------------------------- The Export-Import Bank of the United States (Ex-Im Bank) approved a $60 million credit guarantee facility to back the purchase by Mexico's government-owned utility, Comision Federal de Electricidad (CFE), of equipment and services from a wide range of U.S. companies. In addition to supporting CFE's annual capital requirements, the sales will help sustain thousands of U.S. jobs at companies large and small. CFE already anticipates purchases for the first half of 2004 will total approximately US$50 million from 20 U.S. suppliers. The utility expects to buy test and measurement equipment, turbine components and parts, control systems, fiber-optic cable, and other equipment. The medium-term guaranteed line of credit from Credit Lyonnais Global Partners, New York, N.Y., covers a one-year period and is a renewal of an existing facility that CFE has had with Ex-Im Bank since 1995. The renewed facility is nearly triple the US$20.5 million level of the previous facility. CFE is mandated by the Mexican government to maximize its use of export credit agency-supported financing for its procurement. The Ex-Im Bank support levels the playing field for U.S. exporters, since several foreign competitors backed by their export credit agencies are actively seeking to address CFE's procurement requirements. Mexico is one of Ex-Im Bank's biggest markets with a portfolio nearing US$6 billion. In fiscal year 2003, Ex-Im Bank authorized US$1.6 billion in financing to support U.S. exports to Mexico. Ex-Im Bank this year marks its 70th year of helping finance the sale of U.S. exports, primarily to emerging markets throughout the world, by providing loan guarantees, export credit insurance, and direct loans. In fiscal year 2003, Ex-Im Bank, an independent federal agency, authorized financing to support $14.3 billion of U.S. exports worldwide. CONTACT: Marianna Ohe (202) 565-3200 Web site: http://www.exim.gov CINTRA: Books MXN250 Million Full-year Net Loss ----------------------------------------------- (All figures are expressed in pesos of equivalent purchasing power as of December 31st, 2003, unless specified otherwise. Financial Statements meet Mexican GAAP) CINTRA, S.A. DE C.V., (BMV:CINTRA) Mexico 's leading air transportation system reported its non audited results for the fourth quarter 2003, emphasizing the following: General Highlights Load Factor 60.8% Total Revenues (million pesos) 7,702 EBITDAR (million pesos) 1,062 Operation Loss (million pesos) (13) Net Loss (million pesos) (250) Fourth Quarter 2003 compared to Fourth Quarter 2002 Fourth Quarter Comparative Highlights 2003 2002 Variation Load factor 60.8% 59.7% 1.1 p.p. Total revenue (million pesos) 7,702 7,546 2.1% EBITDAR (% of revenue) 13.5% 8.1% 5.4 p.p. Operation Loss (million pesos) (13) (403) 96.7% Net loss (million pesos) (250) (419) 40.2% In spite of the cargo and domestic market reduction, total revenue increased 2.1% due to the growth in international market, other income and excess baggage regarding those in 4Q 2002. The increase in EBITDAR is as result of the increase in total revenue and the reduction of Operation Expenses, particularly in salaries, insurance, administration, traffic servicing, maintenance, promotions & sales regarding the same period 2002. The above result decreased by capital expenses -which increased 5.7% than 4Q 2002-, generate an Operation Loss of 13 million pesos, 96.7% lower than the same period 2002. CINTRA obtained a net loss during the quarter of 250 million pesos lower in 40.2% than the one from the same period 2002. During the period October - December 2003 the ASK's reported 10,159 million, the same than 4Q 2002. The demand expressed in RPK's for the 4Q 2003 was 6,181 million, 1.5% higher than the same period 2002. The yield reached 1.072 pesos during the quarter, 1.3% lower than the same period 2002, mainly as a consequence of the unfair competition that still subsists in the domestic and international markets. The ASK/Cost decreased 4.2% for the fourth quarter 2002, reaching 0.640 pesos, due to the austerity measures and the implemented discipline that turned into savings A. Operation Results Revenues Total revenues during the period October - December were 7,702 million pesos, that represents a 2.1% increase in real terms than the same period 2002, such growth was generated by the 27.8% increase in other, the 4.7% increase in excess baggage and 2.2% in international market, compensated with the 3.9% and 1.2% decrease in cargo and domestic market respectively; regarding cargo, the reduction was due to the grounding of a Boeing B-727 exclusively used to these activities, regarding the decrease in domestic market, the reduction was as a consequence of the unfair competition from domestic airlines that do no belong to Cintra. In U.S. dollars terms, during the period October - December 2003 total revenues were 684 million, that shows a 3.8% decrease with respect to the same period 2002. Operation Expenses Total operation expenses during the fourth quarter 2003 were 6,640 million pesos, 4.2% lower than the same period 2002. Personnel cost was 2,404 million pesos, 3.3% lower than the fourth quarter 2002, as a result of the adopted measures such as personnel reduction in Cintra's companies, as well as salaries reductions in Mexicana de Aviaci�n. Jet fuel expenditure was 1,133 million pesos, superior in 7.3% than the same period 2002, this rise was due to the 16.8% average increase in the jet fuel price, compared to the average prices during the fourth quarter 2002, as well as the devaluation of the Mexican peso, which average exchange rate during the quarter was $11.20 Mexican pesos per U.S. dollar than $10.15 Mexican pesos per U.S. dollar during the same period last year, compensated with the jet fuel coverage program that protected the 38% of our 2003 consumptions. Aircraft and traffic servicing were 792 million pesos during the period, 5.5% lower than those in the same period 2002, as a consequence of the negotiations to reduce costs with some airport groups. Maintenance was 747 million pesos, 2.6% lower than the fourth quarter 2002, due to the taken actions that generated savings, not deviating the importance of this matter. Passenger service was 231 million pesos during the quarter, 2.2% higher than the same period 2002, as a consequence of the increase in the number of passengers during the period in 1.6%. Commissions were 470 million pesos during the fourth quarter 2003, 17.2% lower than those in the same period 2002, as a consequence of the new incentive program, in spite of the 1.6% increase in transported passengers. Promotion and sales during the period reached 436 million pesos, which reflects a decrease of 8.0% compared to the period October - December 2002, as a result of the resources optimization. Insurance figures reached 122 million pesos during the fourth quarter 2003, 27.6% lower than the same period 2002, as a result of the re-negotiations of premiums, due to the low accident rate as well as the fleet renewal in Cintra's companies. Administration and IT expenses were 304 million pesos, lower in 12.5% than the same period 2002 which reflects the implemented discipline and austerity measures. Operation expenses during the period were 590 million dollars, lower in 9.7% than the same quarter 2002; this tendency is reflected in most of the Operation Expenses figures, except for Jet fuel expenditure. Capital expenses Capital expenses were 1,075 million pesos during 4Q 2003, 5.7% higher than the same period 2002, due to the flight equipment rents equivalent to 823 million pesos, 9.0% higher than the same quarter of last year originated by the fleet renewal. Regarding depreciation, it reached 252 million pesos, 3.7% lower than the same period 2002 due to the termination of depreciation on Mexicana's Boeing B-727 aircraft. Operation loss During the period October - December 2003 the operation loss was 13 million pesos, compared to 403 million pesos during the same period 2002. Integral Financing Income Integral Financing Income during the fourth quarter 2003 was 87 million pesos, higher in 90.3% than the same quarter 2002, where financial expenses were 116 million pesos, that shows a 57.8% increase than the same period 2002. Foreign exchange gain was 83 million pesos, 10.8% higher than period October - December 2002; as a result of the Mexican peso devaluation equivalent to 10.3%. During the fourth quarter 2003 monetary position obtained a positive figure of 112 million pesos, compared to the 103 million pesos gain during the same period 2002, this lower variation is due to the composition of the monetary items, compensated with a decrease in the period inflation. Net loss During the period October - December 2003 Cintra obtained a 250 million pesos net loss, lower in 40.2% than the obtained during the same period 2002. Relevant events These are the most relevant events during the fourth quarter 2003: Resignation of the Chairman of the Board of CINTRA The Board of Directors of Cintra accepted on December 16th, 2003 the irrevocable resignation of Luis Gutierrez Ruvalcaba as Chairman of the Board and appointed Rogelio Gasca Neri instead of. Opening of Buenos Aires Route On December 15th, 2003 Mexicana de Aviaci�n started regular operations from Mexico City to Buenos Aires , Argentina in a Boeing 767-300 aircraft; it is important to mention that the results obtained during the first weeks generated positive results. Increase in the jet fuel price In spite of the jet fuel coverage program that protects 38% of our 2003 consumptions, the increases in jet fuel price during the year affected the results in a negative way. Foreign exchange As we mentioned previously, the parity of the Mexican peso during the quarter was key in the results obtained during the 4Q, reaching $11.20 Mexican pesos per U.S. dollar against $10.15 Mexican peso per U.S. dollar during the same quarter 2002. Cash flow increase During the period October - December 2003, cash flow increased approximately 43 million dollars than the third quarter of the same year. Changes in the fleet composition In order to improve their operation programs, during the period Aerom,xico grounded two aircrafts, an MD-82 and four DC-9 ,and acquired six Boeing 737-700; on the other hand, Mexicana incorporated its first Boeing 767-300. Authorization of fleet renewal in Mexicana During the quarter Mexicana obtained the authorization from the Board of Directors to replace Airbus A 318 aircraft instead of Fokker 100, which represents an important step in the operative consolidation process of the company, in order to optimize the major maintenance of the aircraft, crew rotation and training costs. Main Accumulated Results January - December 2003 Revenues Total revenues during the period were 30,065 million pesos, a 0.9% increase than the same period 2002 mainly as a result of a 21% increase in other, compensated with a 2.4% and 2.9% reduction in domestic market and cargo, respectively. In US dollars terms, total revenues during the period January - December 2003 were 2,727 million dollars, 5.6% lower than those for the same period 2002, as a result of the decrease in revenues, except for other. Operation Expenses During 2003 Operation expenses were 27,153 million pesos, a 1.8% increase against the same period 2002, as a result of the 18.3% increase in jet fuel expenditure, 4.5% increase in promotion and sales, all of them compared to the same period 2002. It is important to mention that the 8.2% and 17% reduction in administration and IT and insurance, respectively. In US dollars terms, operation expenses were 2,463 million dollars during the period January - December 2003, 4.8% lower than the same period 2002, tendency reflected in most of the issues, except jet fuel expenditure and Promotion and Sales. Capital expenses Capital expenses during 2003 were 4,228 million pesos, 4.5% higher than the same period 2002, as a result of 8.6% increase in rents and 6.64% decrease in depreciation. Operation loss As a result of the above matters, during the period January - December 2003 Operation loss was 1,316 million pesos, compared to 928 million pesos during the same period 2002. Integral Financial Income Integral Financial Income was 397 million pesos during 2003, 28.7% lower than last year, as a result of the 52.3% decrease in foreign exchange, as a consequence of the parity, and the 21.4% deficit of monetary position, due to a lower inflation during 2003. Net loss During 2003 the net loss was 2,125 million pesos, 23.2% higher than the same period 2002. To see financial statements: http://bankrupt.com/misc/CINTRA.htm CONTACT: CINTRA S.A. de C.V. Av Xola 535 piso 16 col. del Valle Mexico DF Tel. (5)448 - 8000 E-mail: infocintra@cintra.com.mx INDUSTRIAS PENOLES: Reports Bigger 2003 Net Loss ------------------------------------------------ Mexican minerals group Industrias Penoles (BMV: PENOLES) ended 2003 with a higher net loss compared to that of the previous year, reports Business News Americas. In a filing with Mexico City's stock exchange, the Company said it had a net loss of MXN153 million (US$14 million) in 2003, against a net loss of MXN116 million in 2002, due in part to losses sustained by its metals division and the exchange rate with the U.S. dollar. Ebitda dropped 9.2% to MXN1.45 billion, operating profit was off 18% to MXN410 million, while sales grew 9% to MXN12.9 billion, the filing said. "Lead smelting, lead-silver refining and the zinc plant operated at higher levels than the year before," Penoles said. "Still, the production of refined gold fell 9.2% and that of silver 1.9% due to the shortage of imports with high gold and silver concentrates." SANLUIS CORPORACION: Fourth Quarter Sales Up 15% ------------------------------------------------ SANLUIS Corporacion, S.A. de C.V. (BMV: SANLUIS), a Mexican industrial group that manufactures auto parts, reported on Friday results for the three months ended December 31st, 2003. In spite of uncertain conditions in the world and lower economic activity in the United States, our principal market, consolidated results of SANLUIS Rassini were satisfactory. Improved operating results enabled us to be self-sufficient from the standpoint of cash flow. We met all our financial obligations, and in spite of a recent complicated debt restructuring, we generated sufficient resources to comfortably finance operations internally. We were able, as a result, to absorb lower levels of supplier credit, as one of our steel suppliers faced serious operating and financial problems for a large portion of the year. Consolidated sales of SANLUIS rose 10% to US$ 484.3 million. Suspension sales were 8.5% above the previous year due to higher volumes in leaf springs (+12%), coil springs (+33%) as well as torsion bars (+5%), while export Brakes were 31% above levels experienced in 2002. Sales to our three principal clients, General Motors, Ford Motor Co., and DaimlerChrysler rose 9%, 17%, and 3%, respectively. Sales to Volkswagen increased 12%; sales to BMW rose 11%; and sales to Toyota were 2% higher than 2002. The higher level of sales, together with greater efficiency and productivity in the plants, reduction of fixed manufacturing costs and lower sales and administrative expenses partially offset the significant negative impact of higher prices of steel, natural gas, electricity, and steel scrap. The positive sales and productivity trends also partially absorbed the impact of lower sales prices on mature platforms serviced by the Suspensions Group. The net result was a satisfactory level of EBITDA (earnings before depreciation, interest, and taxes). Consolidated EBITDA in 2003 was US$ 68.3 million, 1.0% lower than last year, which indicates the large effort made to compensate for previously mentioned increase in raw material prices. Operative margin (EBITDA/Sales) was 14.1% compared with 15.6% achieved the previous year. The positive operating results were matched by an even larger improvement in cash flow as a result of improved receivable and inventory turnover, which offset the negative effect of reduced supplier credit with the rearrangement of suppliers made necessary by a work stoppage at our main supplier, located in Canada. Emergency replacements in Mexico were unable to offer the more attractive terms normally provided by the Canadian supplier. Thanks to better working capital management together with lower levels of investment in machinery and equipment, SANLUIS was able to increase its net cash flow. SANLUIS SANLUIS produces suspensions and brake components for the global automotive industry, with a principal focus on original equipment manufacturers (OEMs). Suspension products include leaf springs (parabolic and multi- leaf), coil springs, torsion bars, bushings, and stabilizer bars. The Brake Division produces drums and discs. SANLUIS Rassini has a 90% share of the Mexican market for light truck suspensions and a 77% share of the U.S. and Canadian market. Its solid and diversified client base includes General Motors, Ford, DaimlerChrysler, Nissan, Volkswagen, and Toyota. In the Brake business, SANLUIS Rassini has a 12% market share in the U.S. and Canada in the disc and drum segment of the light vehicles. To see financial statements: http://bankrupt.com/misc/Sanluis.txt CONTACT: SANLUIS Corporacion, S.A. de C.V. Hector Amador Phone: +525-5-229-58-38 Fax: +525-5-202-38-42 E-mail: hamador@sanluiscorp.com.mx Home page: http://www.sanluiscorp.com/ TFM: Violates Covenants on $195 Million Bank Loans -------------------------------------------------- Mexico's Grupo TMM SA said Friday that its affiliate, Transportacion Ferroviaria Mexicana (TFM), has violated covenants on around US$195 million of bank loans including commercial paper. TFM, Mexico's biggest railway company, has been in talks about the matter with its bank creditors in recent weeks and expects them to soon waive the covenant. None of TFM's loans that are in technical default will come due before September. "This won't have any effect on (TFM's) ability to meet its debts," said Marco Provencio, a spokesman for TMM. TFM recently had 2.1 times as much earnings before interest, taxes, depreciation and amortization than it had in interest costs on debt. According to its covenant agreement on the bank loans, TFM is supposed to have 2.25 times as much EBITDA to debt interest payments. The Company has warned in recent months that it might violate the agreement. The Company is now trying to convert US$85 million of commercial paper into a term loan that matures in 2006, according to a telephone conference call on Friday with company officials including Mario Mohar and Javier Segovia. This new debt won't be given priority over the Company's other debts. Provencio declined to comment on which creditors hold the bank loans. TMM, which is a majority shareholder of TFM, has been in default for around nine months. TFM had around US$1.2 billion in total liabilities as of December 31, 2003, according to a press release. CONTACT: GRUPO TFM Mario Mohar or Jacinto Marina, 011-525-55-629-8866 Leon Ortiz, 011-525-55-447-5836 ======= P E R U ======= PAN AMERICAN: Urges Holders to Convert Debentures Early ------------------------------------------------------- PAN AMERICAN SILVER CORP. (NASDAQ: PAAS; TSX: PAA) announced Friday that it intends to make an offer to encourage early conversion by holders of the Company's US$86.25 million outstanding principal amount of 5.25% convertible debentures due July 31, 2009 (the "Debentures"). At present, Pan American can only force conversion of the Debentures after a three-year no- forced-conversion term, which expires on July 31, 2006. During the remainder of this term, interest in the amount of US $131.25 per US$1,000 principal amount of Debentures would be payable to the holders. Pan American will offer such amount of interest in cash plus common shares having a value equal to US$40 per US$1,000 principal amount of Debentures converted early, based on the closing market price of Pan American's common shares on the Nasdaq market on the date the formal offer is made. Assuming early conversion of all outstanding Debentures pursuant to the offer, Pan American's total cash payment would be approximately US$11.32 million and common shares having a value of US$3.45 million would be issued. The offer will be subject to regulatory approvals. Pan American expects to make a formal offer to its Debenture holders prior to the end of March. Precise details of the formal offer will be set out in a future press release. The offer will be open for 30 days and will not be subject to any minimum amount of debentures being converted. Investors holding approximately 50% of the outstanding principal amount of Debentures have indicated that they would be amenable to the conversion of their Debentures upon a formal offer being made. Pan American will make no payment in respect of the conversion of any Debentures prior to the issuance of its formal offer. CONTACT: Brenda Radies, VP Corporate Relations (604) 684-1175. ================= V E N E Z U E L A ================= PDVSA: Denies Signing 'Formal' Agreement with NB Power ------------------------------------------------------ Venezuelan state-owned oil company Petroleos de Venezuela SA has not signed a "formal" contract with Canadian electricity generator NB, Dow Jones reports, citing PDVSA President Ali Rodriguez. "No document has been signed," said Ali Rodriguez. "A letter of very generic terms was signed in which there is no obligation, and where the possibility of signing a contract remains open without a set date. It's not a formal contract." Mr. Rodriguez issued the comments in response to a suit launched recently by NB Power against PDVSA. He said Canada's own energy officials have said that the utility's plants "are in a full state of decay, and don't comply with the (country's) environmental standards, requiring major investments, as it's made." Those investments, he stressed, were to retool the plant to bring it into compliance with environmental standards, not so that it can run on Venezuela's extra-heavy crude, called Orimulsion. The problem between NB Power and PDVSA revolves around the price that NB will pay for the Orimulsion, he added. "We don't want to affect the Canadians, but we also don't want to affect the Venezuelan economy," he said. He noted that PdVSA and NB Power aren't currently talking, but said PDVSA is perfectly willing to negotiate with the Canadian firm. ********* 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. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is $575 per half-year, delivered via e-mail. 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