/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040324.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 24, 2004, Vol. 5, Issue 59 Headlines A R G E N T I N A AGRITECH INVERSORA: Evaluadora Latinoamericana Rates Bonds `D' COLEGIO SAN ANDRES: Court Approves "Concurso Preventivo" Motion EDENOR: Argentina S&P Maintains Default Ratings on Bonds FARMACIA DEL NORTE: Court Declares Company Bankrupt FIDEICOMISO CREDICUOTAS III: Local S&P Maintains Default Ratings G.M.S.: Court Grants Permission to Undergo Reorganization LAMI: Seeks to Reorganize Finances MOVICOM BELLSOUTH: Bond Debt Prices Grow in Secondary Market PURITY ARGENTINA: Court Orders Bankruptcy *IMF Completes Second Review of Argentina's Stand-By Arrangement B E R M U D A GLOBAL CROSSING: Slim Acquires Stake GLOBAL CROSSING: Reaches Settlement With Ex-Shareholders GLOBAL CROSSING: Enhances Channel Partner Program B O L I V I A *Fitch ReportS on Bolivian Banks: Slim Chance for Quick Recovery B R A Z I L EMBRATEL: MCI Seeks Court's Approval on Sale to Telmex EMBRATEL: BNDES Complaint May Spoil Telmex's Bid PARMALAT BRAZIL: Authorities Question Former Head C H I L E AES GENER: Fitch Ups Rating to 'BB' M E X I C O AHMSA: Hires Vector as Representative in Debt Negotiations DIRECTV MEXICO: Sky Denies Statements Suggesting Merger GRUPO TMM: Arbitration Panel Rules in Favor of KCS GRUPO TMM: Issues Statement On Interim Award IUSACELL: Signs Definitive Agreement With QUALCOMM VITRO: Signs 5-Year Agreement With Michigan's Largest Winery P E R U PAN AMERICAN: Files Prelim Prospectus, Registration Statement - - - - - - - - ================= A R G E N T I N A ================= AGRITECH INVERSORA: Evaluadora Latinoamericana Rates Bonds `D' -------------------------------------------------------------- Evaluadora Latinoamericana S.A. Calificadora de Riesgo assigned a `D' rating to ARS4.5 million worth of corporate bonds issued by Agritech Inversora S.A., reports the National Securities Commission of Argentina. The rating, which was given based on the Company's financial status as of December 31, 2003, affected bonds described as "Primera Serie de obligaciones negociables." The bonds, which were classified under `Program' will mature on Oct. 5, 2007. A `D' rating is issued to bonds that are in default, said the ratings agency. The rating was based on the Company's finances as of the end of Dec. 2003. COLEGIO SAN ANDRES: Court Approves "Concurso Preventivo" Motion --------------------------------------------------------------- Lomas de Zamora Court No. 4 approved the "Concurso Preventivo" petition filed by Colegio San Andres S.R.L., reports Infobae. Mr. Bernardo A. D Ambrosio was appointed as receiver, who will authenticate creditors' claims until May 17, 2004. The receiver will prepare the individual reports after the credit verification process is completed. These reports are due for filing on July 1, 2004. The general report, a summary of all information gathered from the individual reports, must be submitted to the court on August 31, 2004. The court is yet to schedule an informative assembly, one of the last parts of the reorganization process. CONTACT: COLEGIO SAN ANDRES S.R.L. Alvear 60 Monte Grande Mr. Bernardo A. D Ambrosio, Receiver Pasaje Las Delicias 1181 Adrogue EDENOR: Argentina S&P Maintains Default Ratings on Bonds -------------------------------------------------------- Standard & Poor's International Ratings, Ltd. Sucursal Argentine maintains an `raD' rating on US$600 million worth of Edenor S.A.'s corporate bonds. The rating was determined from the Company's finances as of December 31, 2003. Argentine securities regulator Comision Nacional de Valores described the bonds as "Programa Global de Obligaciones Negociables". Classified under "Program", the bonds would mature on November 5, 2006. The ratings agency said that an obligation is rated `raD' when it is in payment default, or the obligor has filed for bankruptcy. The rating is used when interest or principal payments are not made on the date due, even if the applicable grace period has expired, unless Standard & Poor's believes that such payments will be made during such grace period. FARMACIA DEL NORTE: Court Declares Company Bankrupt --------------------------------------------------- Buenos Aires Court No. 12 ruled that Farmacia del Norte S.R.L. is "Quiebra", effectively putting the Company under bankruptcy protection. A report by Argentine news portal Infobae indicates that the court, assisted by Clerk No. 23, appointed Mr. Humberto Enrique Zaina as receiver, who will oversee the bankruptcy process. Creditors are required to present their proofs of claim to the receiver for verification before May 31, 2004. This is done to determine the nature and amount of the Company's debt, and to check the claims' authenticity. Results will be submitted to the court on June 13, 2004 as individual reports. The receiver is also required to submit the general report on August 24, 2004 CONTACT: Humberto Enrique Zaina, Receiver Esmeralda 320 Buenos Aires FIDEICOMISO CREDICUOTAS III: Local S&P Maintains Default Ratings ---------------------------------------------------------------- The Argentine arm of ratings agency Standard & Poor's maintains an `raD' rating on ARS5,897,876 of Fideicomiso Credicuotas III financial trust, says the National Securities Commission of Argentina. The rating means that the debt is in payment default or the obligor has filed for bankruptcy, said the ratings agency. The financial trust - Participation Certificate Class C - will mature on February 25, 2005. G.M.S.: Court Grants Permission to Undergo Reorganization --------------------------------------------------------- La Plata Court No. 6 granted G.M.S. S.R.L.'s petition to undergo a reorganization process, reports Infobae. Designated to oversee the process is Ms. Graciela Nelida Maciel, the receiver. Creditors have until April 26, 2004 to present their claims to the receiver for verification. Afterwards, the receiver will prepare the individual reports and then submit these to the court on June 10, 2004. The informative assembly will be held on Feb. 3, 2005. CONTACT: G.M.S. S.R.L. Diagonal 74 Nro. 978 La Plata Graciela Nelida Maciel, Receiver Calle 18 Nro. 425 La Plata LAMI: Seeks to Reorganize Finances ---------------------------------- Buenos Aires company filed a petition to undergo a reorganization. According to Infobae, the case is now pending before Buenos Aires Court No. 7, with assistance from Clerk No. 14. Important dates involved in the case will be disclosed shortly. CONTACT: Lami S.A. Avenida Julio A. Roca 546 Buenos Aires MOVICOM BELLSOUTH: Bond Debt Prices Grow in Secondary Market ------------------------------------------------------------ Prices for the bond debt of Argentina's Movicom BellSouth has grown 21% in secondary market since Spain's Telefonica's (NYSE: TEM) announcement that it will buy the Company as part of a regional transaction. Citing El Cronista, Business News Americas reports that Movicom's negotiation options jumped to US$98, from US$81 before the announcement by Telefonica. The Argentine mobile operator's financial liabilities include US$150 million worth of negotiable options, carrying a 9.25% interest rate and maturing in 2008, plus US$300 million of bank debt, El Cronista said. Movicom had defaulted on the debt due to the impact of Argentina's 2002 economic crisis. It did not make payments between June 2002 and March 2003, and creditors have yet to restructure the terms of the debt to cover those missed payments. Creditors are expecting more favorable terms from Telef▋ica, since its Argentine subsidiaries never defaulted on their debt, instead landing an agreement to extend terms for three years. By contrast, Bellsouth had yet to even propose a restructuring arrangement to its creditors. PURITY ARGENTINA: Court Orders Bankruptcy ----------------------------------------- Buenos Aires Court No. 10 declared local company Purity Argentina S.R.L. "Quiebra", relates argentine news source Infobae. The Company will undergo the bankruptcy process with Mr. Jorge David Jalfin as receiver. The court instructed the receiver to verify creditors' claims until June 11, 2004, and determine the nature and amount of the Company's debts. The results of the verification process will be presented to the court through the individual reports, which are due for filing on August 10, 2004. After the individual reports are processed in court, the receiver will consolidate the data into a general report, which must be submitted to the court on October 6, 2004. Clerk No. 20 assists the court on the case, which will close with the liquidation of the Company's assets to reimburse creditors. CONTACT: Jorge David Jalfin, Receiver Sarmiento 1452 Buenos Aires *IMF Completes Second Review of Argentina's Stand-By Arrangement ---------------------------------------------------------------- The Executive Board of the International Monetary Fund (IMF) completed Monday the second review of Argentina's performance under a three-year SDR 8.98 billion (about US$13.3 billion) Stand-By Arrangement that was approved on September 20, 2003. Completion of the review will entitle Argentina to a disbursement equivalent to SDR 2.1 billion (about US$3.1 billion). In completing the review, the Executive Board approved the modification of a structural performance criterion and a waiver for the nonobservance of a performance criterion. Following the Executive Board's discussion of Argentina, Anne Krueger, Acting Managing Director and Chair, stated: "Argentina's economy continues to recover rapidly, facilitating steady improvements in employment and poverty indicators. Progress is also being made in implementing reforms in key structural areas such as the banking system and the utilities sector. The authorities have indicated their willingness to negotiate with their private creditors with the aim of reaching an early comprehensive and sustainable sovereign debt restructuring. "Disciplined macroeconomic policies have contributed to lifting consumer and investor confidence and have supported rapid economic growth. Monetary policy has kept inflation low and allowed interest rates to decline, while international reserves have recovered further in recent months. Looking ahead, the authorities recognize that monetary policy will need to take into account the narrowing output gap that could affect inflation expectations. "Fiscal performance in 2003 was better than envisaged as a result of strengthened tax collections and restrained spending at the federal and provincial levels. These favorable trends are continuing in 2004 and afford considerable flexibility to the government to increase fiscal savings over the medium term as committed in their Letter of Intent, while also reducing distortive taxes and strengthening support of well-targeted social and capital projects. "A number of important structural fiscal reforms are to be implemented in the coming months to strengthen the macroeconomic policy framework and address systemic weaknesses in the public finances. In particular, the federal government is working closely with provincial governors to secure an early political consensus on reforms to place intergovernmental financial relations on a permanent sound footing. These reforms aim to simplify the tax revenue-sharing arrangements, enhance incentives to raise own revenues, and introduce binding debt and deficit limits for provincial governments. Additional steps are to be taken to improve tax compliance for customs duties and social security contributions. "In the banking area, there are welcome signs of return to overall profitability, and measures are being implemented steadily to reduce outstanding weaknesses in bank balance sheets, including by enhancing supervisory control through on- site inspections and the submission of banks' business plans. However, the authorities need to expedite the pending compensation payments to banks and to carry forward the agreed timetable for the strategic review and financial diagnostic of the two largest public banks. "Some progress has been made with utility sector reform- including by initiating electricity and gas tariff increases for large users-but additional efforts are needed to improve the financial position of some of the regulated concessionaires. An important priority in this area is to develop a balanced regulatory framework that will facilitate the process of renegotiation of concessions of public services and encourage new private investment in the sector, while protecting lower income groups from tariff increases. "The authorities' commitment to reach a collaborative agreement with their private creditors on a sovereign debt restructuring is welcome. The main elements of the authorities' framework include: (i) appointing investment banks throughout the restructuring process to assist in preparations and help market the debt exchange offer; (ii) engaging in constructive negotiations with all representative creditor groups; and (iii) formulating an offer that will result in a sustainable debt for Argentina and attain broad support from creditors. The authorities have already implemented elements of this agreed debt restructuring strategy: three international and three domestic investment banks were appointed and the terms of their engagement were disclosed; and 25 representative creditor groups were invited to hold separate discussions in Buenos Aires during March 24-April 16, 2004. The groups invited include the Global Committee for Argentine Bondholders, domestic institutional and retail holders such as the Asociacion de Ahorristas de la Republica Argentina, and European retail bondholder organizations such as the Comitato Investitori di Titoli Argentini. The authorities will endeavor to avoid a piecemeal approach to the debt restructuring and intend to finalize, with the assistance of their investment banks, an appropriate minimum participation threshold necessary for a broadly-supported restructuring. "Consistent implementation of this debt restructuring framework will be essential for the continued support of the international community. In particular, the authorities' intention to discuss with creditors all aspects of the debt exchange offer, including how best to take into account proposals received from creditors, is crucial. The authorities are encouraged to work diligently to design a debt exchange offer that attains the highest possible creditor participation, reduces the risk of protracted litigation, and restores debt sustainability," Ms. Krueger said. CONTACT: INTERNATIONAL MONETARY FUND 700 19th Street, NW Washington, D.C. 20431 USA IMF EXTERNAL RELATIONS DEPARTMENT Public Affairs: 202-623-7300 - Fax: 202-623-6278 Media Relations: 202-623-7100 - Fax: 202-623-6772 ============= B E R M U D A ============= GLOBAL CROSSING: Slim Acquires Stake ------------------------------------ Global Crossing issued Monday, March 22, 2004, the following statement: We're pleased to acknowledge that experienced investors in the telecom sector, Carlos Slim and his family, have accumulated a 9.1 percent share of the company's common equity (5 percent of our total equity). We believe their investment shows confidence in our future, as we pursue our goal of a leadership position in the telecommunications industry. ST Telemedia's majority position remains unchanged. 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. CONTACT: GLOBAL CROSSING Press Contact Becky Yeamans + 1 973-937-0155 PR@globalcrossing.com Analysts/Investors Contact Mitch Burd +1 800-836-0342 glbc@globalcrossing.com URL: http://www.globalcrossing.com GLOBAL CROSSING: Reaches Settlement With Ex-Shareholders -------------------------------------------------------- A US$325-million securities class-action settlement for former shareholders and employees of Global Crossing Ltd. was announced Friday, the Wall Street Journal reports. Under the settlement, shareholders and employees who lost billions in the troubled telecommunications company will receive US$325 million from Global Crossing's former officers, directors and outside lawyers. Company founder and former Chairman Gary Winnick will pay a total of US$55 million, while insurance companies for former officers and directors agreed to pay roughly US$280 million. The Company's former law firm, Simpson, Thatcher & Bartlett LLP, which was not a defendant and did not admit to any wrongdoing, agreed to pay US$19.5 million. The US$325-million settlement could pave the way for a settlement deal between the telecom company and the Securities and Exchange Commission over alleged accounting fraud, the Journal suggests. The SEC and Justice Department began investigating alleged accounting misdeeds at the fiber-optic company more than two years ago, after accusations from a former finance executive surfaced in public. People familiar with the matter say that criminal charges are not expected, but that some kind of deal will be hammered out with securities regulators. Terms of a SEC settlement are expected to be less severe than originally anticipated in mid- 2002, when the Company had collapsed under US$12.4 billion in debt and a storm of bad publicity, these people say. GLOBAL CROSSING: Enhances Channel Partner Program ------------------------------------------------- Global Crossing (NASDAQ: GLBC) announced Monday at the Channel Partners Conference and Expo that it is enhancing its channel partners program as a critical component of its offer to small and medium enterprises (SMEs). Bolstered by the company's strategic relationship with Covad Communications, the expanded agent program leverages Global Crossing's unique global network and IP solutions to allow greater flexibility in network and service offerings for business partners. "Channel partners play a key role in delivering telecommunications services to small and medium enterprises," said Paul O'Brien, Global Crossing's senior vice president, enterprise sales. "We've developed attractive market offers and invested in channel-specific tools that support and reward our partners. Additionally, our integration path to IP-based services such as VoIP and IP VPN helps customers derive greater value over a converged platform." As part of its commitment to the partnership channel and to provide diversified access options, Global Crossing expanded its strategic agreement with Covad Communications, a leading national broadband service provider of high-speed Internet and network access utilizing Digital Subscriber Line (DSL) technology. The enhanced agreement includes incentives for partners. Global Crossing and Covad Communications continue to evaluate other access solutions to offer jointly. "Our partnership with Global Crossing offers partners the solutions their customers want," said David McMorrow, Covad's executive vice president, sales and marketing. "Covad's market leading business-class DSL builds a natural bridge to Global Crossing's service offerings for small and medium enterprises, as well as multinational corporations. Global Crossing's IP, IP- VPN and Frame Relay/ATM services, coupled with Covad, advantageously position us, together, in a very competitive marketplace." Global Crossing offers its partners attractive promotions designed to help them sell our products, including: - Managed dedicated Internet access (DIA) end-to-end package: Global Crossing can deploy and manage a customer's DIA solution, allowing the customer's IT resources to focus on core competencies. - Frame Relay/ATM end-to-end package: Global Crossing can deploy and manage a customer's FR/ATM solution, including seamless integration to Global Crossing's MPLS-based IP VPN to insure "future proofing" of legacy services to next-generation voice, video and data offerings. - Non-Recurring Charge (NR) Waiver: Global Crossing will waive service installation fees for customers buying from a varied suite of services, including US and Canada Toll Free Services, IP VPNs, private lines, frame relay/ATM networks, dedicated Internet access, Remote Access Service, Financial Services and more. All product promotions are detailed on the newly re-engineered partner extranet, a destination site that highlights offers, incentives, partner recognition, and up-to-date marketing and communications tools. Global Crossing has committed other resources to satisfy partners' unique needs, including: - Additional staff in the Partner Support Center to continue delivering responsive service. This one-stop support center manages back-office tasks so that partners stay focused on selling. - Easily accessed training options enhance partners' knowledge and familiarity with Global Crossing offers. - uCommand, Global Crossing's customer service portal, and other improved ways for partners to access Global Crossing's operating systems, help better integrate partners for maximum efficiencies. "As agents, we naturally gravitate towards carriers that make it easy for us to do business," said Rick Dellar, co-founder of Intelisys Communications. "Global Crossing's extensive support, comprehensive solutions, clear migration path to IP, and financial viability make them an attractive partner/sponsor who help us execute on our business plans." This announcement is the first of a forthcoming series detailing Global Crossing's success in implementing its indirect strategy. Global Crossing recognizes that SMEs have unique needs that are best served by resellers, agents and value-added resellers. By allying itself with these partners, Global Crossing aims to bring its innovative, flexible solution suite to this high- spending market. CONTACT: Press Catherine Berthier +1 212-412-4666 PR@globalcrossing.com Analysts/Investors Contact Mitch Burd +1 800-836-0342 glbc@globalcrossing.com ============= B O L I V I A ============= *Fitch ReportS on Bolivian Banks: Slim Chance for Quick Recovery ---------------------------------------------------------------- A number of factors are limiting recovery of the Bolivian banking system, principally the country's poor economic performance, according to a new report released March 19 by Fitch Ratings. Bolivia, which has seen social instability and the reversal of social progress since 1999, also may witness additional governmental intervention into its banking system, the Fitch report adds. 'Few changes are anticipated in the short-term,' says Ricardo Chaves, senior director at Fitch Ratings and the author of the report. 'An improvement of the system's currently poor financial performance will be contingent on a stabilization of the operating environment in the longer term.' Fitch Ratings assigned a 'B-' rating to the long-term foreign and local currency obligations of Bolivia earlier this month. The Rating Outlook was Stable. The Fitch report, 'Bolivian Banks: When Are Things Going to Get Better?' cites that while asset quality indicators improved in 2003, the underlying pace of deterioration has remained fairly constant due to loan restructuring and a high level of foreclosures. 'The loan restructuring programs may result in a 'slow death' of companies which under a conservative valuation might not be considered going concerns,' Chaves adds. 'The classification of borrowers as restructured may ease short- term loan/loss reserve pressures, yet it could have a detrimental effect on banks as they increase their exposure to troubled companies.' Currently, Fitch assigns national ratings to six commercial banks, which represented roughly 40% of the system's assets at end-2003. 'These ratings could come under pressure if the current banking trends persist,' Chaves said. =========== B R A Z I L =========== EMBRATEL: MCI Seeks Court's Approval on Sale to Telmex ------------------------------------------------------ U.S. telecommunications giant MCI filed with the bankruptcy court Friday a request for approval of an offer by Telefonos de Mexico SA (Telmex) to purchase Embratel Participacoes SA, its unit in Brazil, the AP Worldstream reveals. According to the filing, Bankruptcy court judge Arthur Gonzalez will consider the request at an April 13 hearing in New York. The latest filing indicates that MCI has decided to stick with its decision last week to accept Telmex's US$360-million cash bid for a 51.8% stake in Embratel. The figure is US$190 million less than what was offered by a consortium including Brazil's three-biggest fixed line carriers - Tele Norte Leste Participacoes (Telemar) (nyse:TNE), Brasil Telecom Participacoes (nyse:BRP), and Spain's Telefonica . MCI had rejected the offer from the three Brazilian carriers because it believed that potential regulatory obstacles would delay or prevent the consortium from buying Embratel. "The risk that the consortium will be unable to obtain the requisite regulatory and antitrust approvals is significant, due to the fact that the members of the consortium are the dominant wire line operators in each of their respective regions in Brazil," MCI said in the filing. MCI said that its assessment of the best bid was based on a number of factors including price, regulatory approval and the time needed to close the deal. Representatives for the three fixed-line carriers have insisted that the structure of their consortium wouldn't have violated any competition laws. One representative said last week that the group would challenge MCI's decision, though a formal complaint does not appear to have been filed yet. The consortium of the three Brazilian fixed-line carriers has until April 8 to contest MCI's decision, which must still be approved by the court as long as the company remains under Chapter 11 protection. If, however, MCI manages to exit the Chapter 11 process in the weeks ahead, the Company wouldn't need the court's permission to sell Embratel. MCI, formerly known as WorldCom , is currently navigating its way through Chapter 11 bankruptcy protection following the disclosure of an US$11 billion accounting scandal. CONTACT: MCI PR Contact: Name: Peter Lucht Tel: (800) 644-NEWS PR Contact: Name: Brad Burns Tel: 800-644-NEWS PR Contact: Name: Gregory Pettit Role: Investors Tel: (877) 624-9266 EMBRATEL Silvia M.R. Pereira, Investor Relations Tel: (55 21) 2121-9662 Fax: (55 21) 2121-6388 Email: silvia.pereira@embratel.com.br invest@embratel.com.br EMBRATEL: BNDES Complaint May Spoil Telmex's Bid ------------------------------------------------ Telmex may not be able to consummate its purchase of Embratel from US parent MCI if it fails to resolve a conflict with Brazil's national development bank BNDES. Business News Americas reports that BNDES is accusing Telmex of breaching shareholder rights laws when its mobile unit America Movil (NYSE: AMX) bought operations in Brazil. BNDES paid BRL343 million (US$118mn) in 1997 for an 18% share in two mobile operators, Americel and Telet, subsequently acquired by America Movil in June 2002, a BNDES spokesperson confirmed to Business News Americas. The bank claims that America Movil did not honor BNDES's 1997 shareholder contract which said any subsequent owner of the two operators would be obliged to offer to buy BNDES's stake for the same price paid for control of the units. In September 2003, America Movil offered BNDES BRL15.4 million for the bank's 18% stake but the bank rejected the offer, considering it too low. If Telmex has breached the BNDES contract, Brazilian authorities could reject the Mexican operator's bid for Embratel. Telmex needs approval from telecoms regulator Anatel, securities commission CVM and antitrust authority Cade to buy Embratel from US parent MCI. Meanwhile, local papers have reported that the government considers the BRL343 million to be credit it holds against Telmex, and wishes to convert at least part of the sum into shares in Embratel's satellite unit Star One. BNDES president Carlos Lessa said Friday the bank is willing to hand over US$220 million in the government's quest to gain control of Star One. He did not explain if the funds were dependent on the reception of Telmex' past-due payments. PARMALAT BRAZIL: Authorities Question Former Head ------------------------------------------------- Gianni Grisendi, the former head of Parmalat's Brazilian operation, is being investigated in connection with the near- collapse of the Italian dairy giant, Dow Jones reports, citing a tax police official. Prosecutors in Parma questioned Grisendi last week over Parmalat's operations, then formally notified him that he was under investigation, said Maurizio Raponi, an official of the Bologna tax police. Grisendi was president of Parmalat Brazil between 1989 and 2000. Parmalat Brazil, which filed for bankruptcy in January, accounts for second-largest parmalat debt. The Italian parent issued US$11.6 billion in bonds worldwide, according to a survey by Houlihan Lokey Howard & Zukin, an investment bank. Of the US$11.6 billion total, 65% or US$7.5 billion were issued by three Parmalat companies based in the Netherlands - Parmalat Finance Corp., Parmalat Netherlands and Parmalat Capital Netherlands. The Brazilian subsidiary, meanwhile, issued US$1.52 billion. Adding bank loans, Parmalat owes an estimated US$1.96 billion in Brazil. ========= C H I L E ========= AES GENER: Fitch Ups Rating to 'BB' ----------------------------------- Fitch Ratings has upgraded the international foreign and local currency ratings of AES Gener S.A. (Gener) to 'BB' from 'BB-' and the Chilean national scale rating to 'chl BBB' from 'chl BBB-'. Fitch has further assigned a final rating of 'BB' rating to Gener's 7.5% 10-year US$400 million 144A bond issuance. The upgrade reflects the completion of a significant portion of the company's recapitalization plan, including the successful placement of the international bond issuance and receipt of US$298 million representing repayment of the mercantile account. The company is expected to apply proceeds from both transactions to reduce debt by US$300 million and refinance maturing debt with the new bond, which should improve Gener's prospective capitalization, leverage and interest coverage ratios. The upgrade 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 company has repaid approximately US$146 million of the US$200 million of Yankee bonds due in 2006 with proceeds from the mercantile account and has tendered for US$500 million of Chilean and U.S. convertible bonds due in 2005. The tender for the convertible bonds will expire on March 24. Fitch expects the convertible bonds to be fully repaid in the near term with proceeds from the new bond and cash on hand. The remaining Yankee bonds (US$52 million) that were not tendered will be repaid by their scheduled maturity of January 2006. The company further expects to receive proceeds from an equity increase, estimated to be between US$100 million and US$200 million. Gener also paid a US$100 million dividend on Feb. 27, of which AES's share, approximately US$98 million, will be held in a trust account until the convertible bonds have been repaid. The underlying credit quality of Gener 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 affords the company 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. =========== M E X I C O =========== AHMSA: Hires Vector as Representative in Debt Negotiations ---------------------------------------------------------- Mexican steelmaker Altos Hornos de Mexico S.A. (Ahmsa) hired local stockbroker Vector Casa de Bolsa SA to help it restructure around US$1.8 billion in defaulted debt, Vector informed Friday. Vector signed Thursday an agreement with Ahmsa to represent the Company during its debt talks. "We have just started," said Valdemar Villarreal, Vector's CFO in Monterrey, Mexico. "We have certain ideas on how." The Coahuila-state steelmaker has defaulted on roughly US$2 billion in debt payments and has been in bankruptcy protection for more than four years. Creditors include Citibank-Banamex and BBVA-Bancomer. CONTACT: AHMSA Prolongacion B. Juarez s/n, Monclova , Coahuila 25770 Mexico http://www.AHMSA.com Phone: +52 86 33 81 72 Fax: +52 86 33 65 66 Contacts: Alonso Ancira Elizondo, CEO, Vice Chairman, Pres/CEO Jorge Ancira Elizondo, Chief Financial Officer Manuel Ancira Elizondo, Chief Operating Officer DIRECTV MEXICO: Sky Denies Statements Suggesting Merger ------------------------------------------------------- Televisa has not reached any agreement with News Corp on a merger of operations between Sky and DirecTV, despite statements to the contrary made by Gustavo Cisneros, Venezuelan magnate with investments in DirecTV Latin America, relates El Universal. Sky general director Alexandre Penna, however, admits that there are talks between both firms. "What is true is that Televisa has no intention of allowing Sky Mexico to buy DirecTV Mexico as a company, with the facilities. That is an alternative that is not being considered," said Penna. The financial situation of DirecTV Mexico is quite poor, so acquiring the firm would affect Sky's healthy finances, Penna added. GRUPO TMM: Arbitration Panel Rules in Favor of KCS -------------------------------------------------- Kansas City Southern (KCS) (NYSE:KSU) announced Monday that the panel of the AAA International Centre for Dispute Resolution hearing the dispute between KCS and Grupo TMM, S.A. (TMM) issued its interim award on March 19, 2004 finding that the Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. (Grupo TFM) Acquisition Agreement remains in force and is binding on KCS and TMM in accordance with its terms. Under the Acquisition Agreement, KCS would acquire all of the shares of Grupo TFM. Grupo TFM owns all of the common stock of TFM, S.A. de C.V., Mexico's premier freight railroad. The dispute arose out of TMM's attempt on August 22, 2003 to terminate the Acquisition Agreement following the vote of its shareholders' against approval of the April 20, 2003 Acquisition Agreement. The arbitration panel concluded that the rejection of the Acquisition Agreement by TMM's shareholders did not authorize TMM's purported termination of the Agreement. KCS and TMM will now move on to the second phase of the arbitration, which will decide the remaining issues, including KCS's remedies and damages. KCS is a transportation holding company that has railroad investments in the United States, Mexico and Panama. Its primary holding is The Kansas City Southern Railway Company (KCSR). Headquartered in Kansas City, Missouri, KCSR serves customers in the central and south central regions of the U.S. KCS' rail holdings and investments are primary components of a NAFTA Railway system that links the commercial and industrial centers of the United States, Canada and Mexico. GRUPO TMM: Issues Statement On Interim Award -------------------------------------------- Grupo TMM, S.A. (NYSE:TMM) and (BMV:TMM A) announced Monday the three-member panel in the arbitration proceeding between KCS and TMM concluded, in an interim award, that the rejection of the Acquisition Agreement by Grupo TMM's shareholders in its vote on August 18, 2003, did not authorize the Company to terminate the Agreement. Accordingly, the three-member panel indicated the Agreement will remain in force and binding on the parties until otherwise terminated according to its terms or by law. In reaching the conclusion, the panel found it unnecessary to determine whether approval by Grupo TMM's shareholders is a "condition" of the Agreement. Grupo TMM continues to believe that any transaction cannot occur without approval of the Company's shareholders, and the panel's decision did not reach a conclusion on that issue. The arbitration process will continue, and Grupo TMM will review the interim award with its counsel and analyze the alternatives available to it in this process. Headquartered in Mexico City, Grupo TMM is a Latin American multimodal transportation company. Through its branch offices and network of subsidiary companies, Grupo TMM provides a dynamic combination of ocean and land transportation services. Grupo TMM also has a significant interest in TFM, which operates Mexico's Northeast railway and carries over 40 percent of the country's rail cargo. Grupo TMM's web site address is www.grupotmm.com and TFM's web site is www.tfm.com.mx. CONTACT: Grupo TMM Investor Relations Brad Skinner, 011-525-55-629-8725 or 203-247-2420 brad.skinner@tmm.com.mx or Dresner Corporate Services General Investors, Analysts and Media Kristine Walczak, 312-726-3600 kwalczak@dresnerco.com or Proa/StructurA Media Relations Marco Provencio, 011-525-55-629-8708 011-525-55-442-4948 mp@proa.structura.com.mx IUSACELL: Signs Definitive Agreement With QUALCOMM -------------------------------------------------- QUALCOMM Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, and Iusacell, a provider of cellular telephony products and services in Mexico, announced Monday the companies have signed a definitive agreement for Iusacell to deploy downloadable wireless applications and services based on QUALCOMM's BREW solution. The rollout of BREW-based services will enable subscribers to browse and download a variety of applications -- such as e-mail, entertainment, communication services, games and ring tones -- on their wireless devices using the operator's new third-generation (3G) CDMA2000(R) 1X network. "The potential for growth in Mexico's wireless data market is strong, and QUALCOMM is excited to team with Iusacell in this endeavor," said Dr. Paul E. Jacobs, president of the QUALCOMM Wireless and Internet Group. "Iusacell's selection of the BREW solution positions it as the leader in the Mexican wireless market and validates the solution as the best option for operators due to its flexibility, ease of implementation and the wide support it receives from an international community of developers." "We expect services powered by the BREW solution to quickly improve our customers' wireless experience with ready access to information, entertainment and communication tools through their wireless handsets," said Gustavo Guzman, chief executive officer, Iusacell. "QUALCOMM's BREW solution is a perfect fit for Iusacell. It will enable us to quickly and effectively provide value-added services that respond to the evolving needs of our subscribers." QUALCOMM's BREW system provides products and services that connect the mobile marketplace value chain, which includes application developers, publishers, content providers, device manufacturers, operators and consumers. Publishers and developers worldwide are generating revenue from BREW-based applications and content, and 24 manufacturers have offered more than 120 BREW-enabled device models to consumers. BREW is successfully enabling the commercial wireless data services of many very successful operators, including Verizon Wireless, ALLTEL, Cellular One, MetroPCS, Midwest Wireless and U.S. Cellular in the United States; China Unicom, KDDI in Japan, KTF in South Korea, Hutch in Thailand, Telstra in Australia, VIVO in Brazil, BellSouth Chile, BellSouth Colombia, BellSouth Ecuador, BellSouth Guatemala, BellSouth Panama, BellSouth Perz, Telefsnica Msviles in Peru, Movicom in Argentina, Telcel and Movilnet Venezuela, Verizon Dominican Republic, Verizon Wireless in Puerto Rico, and Pelephone in Israel.Grupo Iusacell, S.A. de C.V. Iusacell (NYSE, BMV: CEL) is a wireless cellular and PCS service provider in seven of Mexico's nine regions, including Mexico City, Guadalajara, Monterrey, Tijuana, Acapulco, Puebla, Leon and Merida. The Company's service regions encompass a total of approximately 92 million POPs, representing approximately 90% of the country's total population. QUALCOMM Incorporated (www.qualcomm.com ) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2003 FORTUNE 500(R) company traded on The Nasdaq Stock Market(R) under the ticker symbol QCOM. QUALCOMM is a registered trademark of QUALCOMM Incorporated. BREW is a trademark of QUALCOMM Incorporated. CDMA2000 is a registered trademark of the Telecommunications Industry Association (TIA USA). All other trademarks are the property of their respective owners. CONTACT: QUALCOMM Internet Services Michele Bakic Tel: +1-858-651-4017 E-mail: mbakic@qualcomm.com Emily Gin, Corporate Public Relations Tel: +1-858-651-4084 E-mail: publicrelations@qualcomm.com Bill Davidson, Investor Relations Tel: +1-858-658-4813 E-mail: ir@qualcomm.com VITRO: Signs 5-Year Agreement With Michigan's Largest Winery ------------------------------------------------------------ - Vitro Packaging consolidates its presence in the wine segment in the United States - Showing the Wine industry commitment to deliver high-quality customer service, flexibility and innovative solutions. Very soon, US consumers will be able to taste an excellent semi- sweet white wine named Blue Heron, developed and produced in the Midwest. Blue Heron's glass bottles will be manufactured by Vitro. Vitro Packaging, Vitro's U.S. subsidiary, announced Friday that it signed a five-year contract with St. Julian, Michigan's largest and oldest winery, to supply all of its Still wine requirements. Most of the requirements will be converted to Vitro bottles that use a roll-on finish compatible with a Stel capsule. St. Julian is the first winery, east of California, to use this new Stel capsule that has a screw-cap capability. The advantages of using screw-caps is that the chance of musty-smelling cork taint, a mold infestation estimated to affect 3-10% of wine bottles sealed with cork, is eliminated. Also, it is a convenience offered to the consumer, who no longer has to use a cork screw. Blue Heron, semi-sweet white wine; Simply White, semi-dry white wine, and Simply Red, a semi-dry red wine are the three brands that will be supplied by Vitro for St. Julian with the roll-on finish. Blue Heron glass 750ML Hock bottles are being made by Vidriera Los Reyes facility, and Simply White and Simply Red 750ML Bordeaux/Claret bottles are being made by Vidriera Monterrey plant, two of Vitro's six manufacturing plants in Mexico. Blue Heron's first shipment arrived at St. Julian's facility in early January. The bottles were filled on January 8. Bottles are already in the market. Among other winning recognitions, Blue Heron's quality was reaffirmed when it received a Gold Medal at the Florida State Fair in 2002. "St. Julian chose Vitro as the glass supplier for our new ROTE packages due to Vitro's staff proactive attitude towards venturing into uncharted waters, their willingness to take the risk involved in designing and making new molds for ROTE wine bottles, and their belief in this closure eventually becoming the norm in the future of our industry", said Chas Catherman, St. Julian's Executive Vice President and Director of Operations. "Considerations for a glass supplier, now and in the future, in addition to the obvious ones of competitive pricing and quality products, has to include exactly what brought us here today. That is, being innovative and creative in the constant quest to improve the packages offered both in terms of function and of esthetics" assured Catherman. "Vitro Packaging was flexible enough to provide two new molds with volume that normally does not justify the building of new molds. These molds were built because we are confident of the plans St. Julian has for this package and their successful track record in the wine industry. This demonstrates Vitro's commitment to the wine bottle market and to our desire to be on the forefront of new trends and technologies", said Rick Croak, Midwest Sales Manager. "Vitro's reputation as an excellent wine bottle supplier and competitive price, as well as to what we believe is the largest selection of wine molds in the Wine industry, allows us to supply to United States industry the largest selection of shapes, sizes, colors and new closure alternatives to add value to their products", assured Lee Farlander, President of Vitro Packaging. St. Julian has been making wine at its present location in Paw Paw, Michigan since 1936. It currently distributes its products to 10 different states, including Michigan, Indiana, Illinois, Ohio, Minnesota, Rhode Island, Wisconsin, Kentucky, Florida, and California. It was in 1936 when Mariano Meconi bought out his partner and moved his now family-owned company from Detroit to the fruit- growing region along the shores of Lake Michigan. But the history of Michigan's oldest and largest winery did not start with that significant westward move: it dates back another twentyfive years and includes two other countries. With production facilities located in Paw Paw (The Original Winery), Frankenmuth, Dundee, Union Peer, and Parma, Michigan, St. Julian has over 1,000 tanks and barrels, and bottles 40 different types of wines, ten different juices and Italian Dressing, and currently distributes its products to 10 different states, including Michigan, Indiana, Illinois, Ohio, Minnesota, Rhode Island, Wisconsin, Kentucky, Florida, and California. St. Julian uses three types of grapes varieties: vinifera varieties (which originated in Europe), hybrid varieties from Europe (which are the result of cross breeding native American grapes with French grapes) and native American varieties. Hybridization produces varieties which can survive cold Michigan winters and which make high quality wines. "This joint venture between St. Julian and Vitro strengthens our participation in the North American economy", said Alfonso Gomez Palacio, President of Vitro's Containers business unit. "When the product reaches its market, this project will involve a Michigan-based Company, our Texas Commercial headquarters, our glass containers production facility located in Monterrey and Mexico City, aswell as thousands of US and foreign consumers. This is a huge opportunity for us to show our capabilities and abilities to a worldwide wine industry." Lee Farlander, President of Vitro Packaging, emphasized, "Another competitive advantage of Vitro Packaging, is the Company's focus on delivering high-quality customer service; each client is part of a dedicated team. With offices in Napa, Sacramento, Dallas, Atlanta and New York, Vitro Packaging serves the U.S. in the 48 contiguous states. Its sales account for approximately 26% of Vitro's Glass Containers business' total sales. Thanks to the efforts of its close to 100 employees, Vitro Packaging is committed to grow in 2004. Vitro, S.A. de C.V. (NYSE: VTO; BMV: VITROA), through its subsidiary companies, is one of the world's leading glass producers. Vitro is a major participant in three principal businesses: flat glass, glass containers and glassware. Its subsidiaries serve multiple product markets, including construction and automotive glass; fiberglass; food and beverage, wine, liquor, cosmetics and pharmaceutical glass containers; glassware for commercial, industrial and retail uses; plastic and aluminum containers. Vitro also produces raw materials and equipment and capital goods for industrial use. Founded in 1909 in Monterrey, Mexico-based Vitro has joint ventures with major world-class partners and industry leaders that provide its subsidiaries with access to international markets, distribution channels and state-of-the-art technology. Vitro's subsidiaries have facilities and distribution centers in eight countries, located in North, Central and South America, and Europe, and export to more than 70 countries worldwide. For further information, please visit our website at: CONTACT: VITRO, S. A. DE C.V. (Media Monterrey): Albert Chico Smith +52 (81) 8863-1335 achico@vitro.com (Media Mexico D.F.): Eduardo Cruz +52 (55) 5089-6904 ecruz@vitro.com (Financial Community): Beatriz Martinez/Jorge Torres +52 (81) 8863-1258/1240 bemartinez@vitro.com jtorres@vitro.com BREAKSTONE & RUTH INT. (U.S. Contacts): Alex Fudikidis/Susan Borinelli (646) 536-7012 / 7018 afudukidis@breakstoneruth.com sborinelli@breakstoneruth.com URL: http://www.vitro.com ======= P E R U ======= PAN AMERICAN: Files Prelim Prospectus, Registration Statement ------------------------------------------------------------- PAN AMERICAN SILVER CORP. (NASDAQ: PAAS; TSX: PAA) announced Monday that it has filed a preliminary short form prospectus with securities commissions in the Provinces of British Columbia, Alberta, Manitoba and Ontario and a corresponding registration statement with the United States Securities and Exchange Commission. The filing relates to the issuance of up to US$3.45 million in common shares of the Company in connection with the Company's pending offer to encourage early conversion of its US$86.25 million outstanding principal amount of 5.25% convertible unsecured senior subordinated debentures due July 31, 2009 (the "Debentures"). Pan American expects to make a formal offer to its Debenture holders as soon as all regulatory approvals have been obtained. Pan American expects to receive these approvals 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 31 business days and will not be subject to any minimum amount of debentures being converted. Pursuant to the pending Offer: (i) each holder who converts all or a portion of his or her Debentures will receive proceeds from the Company of $131.25 in cash per $1,000 principal amount of Debentures converted; plus (ii) the conversion price of the Debentures will be reduced by an amount, which will effectively result in each holder who converts receiving additional common shares of the Company having a value of $40 for each $1,000 principal amount of Debentures converted, 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 Pan American would pay approximately US$11.32 million in cash and issue US$3.45 million in common shares. A registration statement relating to these securities has been filed with the United States Securities and Exchange Commission but has not yet become effective. The securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State. CONTACT: Pan American Silver Corp. Suite 1500, 625 Howe Street Vancouver, B.C. V6C 2T6 Phone: (604) 684-1175 Fax: (604) 684-0147 *********** 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. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *