/raid1/www/Hosts/bankrupt/TCRLA_Public/040422.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
Thursday, April 22, 2004, Vol. 5, Issue 79
Headlines
A R G E N T I N A
ARZOL Y ASOCIADOS: Creditor's Bankruptcy Motion Approved
CABLEVISION: Details Debt Offer Vote Count Error
ELEVADORES SANSONETTI: Bankruptcy Motion Filed; Court OK's
GALTRUST: $400M of Bonds' Junk Rating Unchanged
PAPELERA RAMOS: Files Petition to Reorganize
QUINTIMIL: Court Approves Motion to Reorganize
TARJETA NARANJA: $200M of Bonds Maintain `D' Rating
TURBINE POWER: Moody's Maintains `D' Rating on $20M of Bonds
UBS BRINSON: Fitch Assigns `CCC(arg)' Rating to Financial Trust
B E R M U D A
SEA CONTAINERS: S&P Assigns, Affirms Various Ratings
B R A Z I L
CEMIG: Extraordinary Shareholders' Meeting Announced
EMBRATEL: MCI Emerges From U.S. Chapter 11 Protection
EMBRATEL: MCI Sale Still Subject To Court Ruling
EMBRATEL: MCI Board of Directors Adopts Shareholder Rights Plan
C H I L E
AES GENER: Successfully Refinances Argentine Units
MADECO: High 1Q Demand Supports Forecasts
MASISA: First Quarter Profit Soars
TELEFONICA CTC: 1Q04 Profit Falls 52%
TELEFONICA CTC: Mobile Arm Reportedly Investing US$100M in '04
C O L O M B I A
AVIANCA: Granted Time To Choose Buyer
M E X I C O
DESC: Boosts Capital With Investor Slim's Help
INDUSTRIAS PENOLES: Posts Record 1Q04 Sales
P A R A G U A Y
MILLICOM INTERNATIONAL: Revenues Surge in 1Q04
T R I N I D A D & T O B A G O
BWIA: To Raise US$40 Million With Rights Issue
V E N E Z U E L A
PDVSA: To Upgrade Refineries, Trim Fuel Oil Output
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A R G E N T I N A
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ARZOL Y ASOCIADOS: Creditor's Bankruptcy Motion Approved
--------------------------------------------------------
Judge Di Noto of Buenos Aires Court No. 15 declared Arzol y
Asociados SRL "Quiebra," granting approval to a bankruptcy
petition filed by Clinica y Maternidad Santa Isabel SA on
nonpayment of US$15,000 in debt.
Local online newspaper La Naicon reports that the court, aided
by Dr. Tevez, appointed Ms. Marta Serra as receiver, who will
verify creditors' proofs of claim until June 18, 2004. Results
of the claims verification process will determine who will be
eligible for the repayment, which will be done after the
Company's assets are liquidated.
CONTACT: Arzol y Asociados SRL
Lavalle 1675, piso 10§ "8"
Buenos Aires
Marta Serra, Receiver
Tte. Gral. Donato Alvarez 862
Planta Baja
CABLEVISION: Details Debt Offer Vote Count Error
------------------------------------------------
In an unprecedented move, Argentine cable television operator
Cablevision SA (CBV.YY) admitted in a statement to the local
stock exchange that it has committed an error when it counted a
major creditor's assenting vote for its debt restructuring offer
twice, Dow Jones relates.
Last month, Cablevision announced that it has obtained the
minimum two-thirds majority approval from creditors required by
Argentine bankruptcy law for its out-of-court debt restructuring
accord, known as an APE in Spanish. This type of restructuring
allows a company that has gathered two-thirds creditor agreement
to submit its offer for legal approval, making the repayment
terms binding on all creditors.
Cablevision said in its statement that on April 16, it
discovered that a "holder of a substantial amount" of its US$725
million in defaulted debt had "transferred its holding and
granted authorization to HSBC Bank USA, as a settlement agent,
to exercise the APE, and separately, subscribed to the APE."
This, the company explained, has resulted in the double-counting
of that creditor's vote in the APE tabulation in March.
The company said it is now verifying all of the votes and will
file more information to stock exchange authorities as it
becomes available.
ELEVADORES SANSONETTI: Bankruptcy Motion Filed; Court OK's
----------------------------------------------------------
Elevadores Sansonetti SA entered bankruptcy after Buenos Aires
Court No. 18 approved a bankruptcy motion filed by Ramon Juarez,
reports La Nacion. Working with Dr. Vivono, Clerk No. 36, the
court assigned Mr. Nestor Iribe as receiver for the bankruptcy
process.
The receiver's duties include the authentication of the
creditors' claims and the preparation of the individual and
general reports. Creditors are required to present their proofs
of claim to the receiver before June 4, 2004. The Company's
assets will be liquidated at the end of the bankruptcy process
to repay creditors. Payments will be done based on the results
of the verification process.
CONTACT: Elevadores Sansonetti SA
Santiago del Estero 2065
Buenos Aires
Nestor Iribe, Receiver
Avenida Corrientes 1250, piso 6§ "F"
Buenos Aires
GALTRUST: $400M of Bonds' Junk Rating Unchanged
-----------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. maintains a
`D' rating on a total of US$400 million Financial Trusts issued
by Galtrust I, Argentina's securities regulator, the Comision
Nacional de Valores (CNV), reveals on its Web site.
The issues affected by the rating include:
- US$200 million worth of `Participation Certificate' described
as "Certificados de Participacion"
- US$200 million worth of `Debt Security' described as "TĄtulos
de Deuda Clase B"
The CNV didn't reveal the maturity dates of the issues.
A `D' rating is assigned to bonds that are in default, said the
ratings agency.
PAPELERA RAMOS: Files Petition to Reorganize
--------------------------------------------
Paper company Papelera Ramos SA filed a "Concurso Preventivo"
motion, reports La Nacion. The Company is seeking to reorganize
its finances following cessation of debt payments since 1999.
The Company's case is now pending before Judge Bavastro of
Buenos Aires Court No. 17. Clerk No. 34, Dra. Vanoli, assists
the court on the case.
CONTACT: Papelera Ramos SA
Avenid a Cabildo 2040, Piso 6§ "A"
Tucuman 688, Lomas de Zamora
QUINTIMIL: Court Approves Motion to Reorganize
----------------------------------------------
Judge Favier Dubois of Buenos Aires Court No. 9 approved a
petition for reorganization filed by Quintimil SA, according to
data provided by Argentine daily La Nacion. The Company is
entrusted to its receiver, Mr. Pedro Santa Maria, who will
verify claims and prepare the necessary reports.
Creditors must present their claims for authentication before
May 28, 2004. The receiver will then prepare the individual and
the general report and present these reports to court at a yet
to be disclosed date.
The informative assembly, one of the last parts of the
reorganization process, will be held on April 9, 2005.
Dr. Raisberg de Merenzon, Clerk No. 17, assists the court on the
case.
CONTACT: Quintimil SA
Avenida Montes de Oca 1640, Piso 2§ "A"
Buenos Aires
Pedro Santa Maria, Receiver
Lavalle 1403, Piso 2§ "A".
Buenos Aires
TARJETA NARANJA: $200M of Bonds Maintain `D' Rating
---------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. maintains a
`D' rating on some US$200 million worth of bonds issued by
Tarjeta Naranja S.A., the CNV revealed on its web site.
The CNV described the affected bonds as "Programa de
Obligaciones Negociables de Corto y Mediano Plazo," without
indicating the maturity date of the issue. The bonds were
classified under `Program.'
The rating was given based on the Company's finances as of
December 31, 2003.
TURBINE POWER: Moody's Maintains `D' Rating on $20M of Bonds
------------------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. maintains a
`D' rating on some US$20 million worth of corporate bonds issued
by Turbine Power Company S.A.
According to the CNV, the action affects bonds called
"obligaciones negociables garantizadas", which matured in
November 2002. The bonds were classified under "Simple Issue".
The rating action is based on the Company's financial health as
of December 31, 2003.
UBS BRINSON: Fitch Assigns `CCC(arg)' Rating to Financial Trust
---------------------------------------------------------------
Some US$21.4 million worth of UBS Brinson Forestal I Financial
Trust were rated `CCC(arg)' by Fitch Argentina Calificadora de
Riesgo S.A., the CNV reveals, indicating that these particular
security possess a significant risk of non-payment. The bonds,
classified as `Debt Security,' were described as `Titulos de
Deuda por VN U$S 21.400.000.' Maturity date is unknown.
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B E R M U D A
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SEA CONTAINERS: S&P Assigns, Affirms Various Ratings
-----------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' rating to
Sea Containers Ltd.'s (SCRa.N: Quote, Profile, Research)
(SCRb.N: Quote, Profile, Research) proposed $150 million senior
unsecured notes and its 'BB' rating to the proposed $120 million
secured credit facility. A recovery rating of '1' is also
assigned to the credit facility, indicating a high expectation
of full recovery of principal in a default scenario. At the same
time, Standard & Poor's affirmed its other ratings, including
the 'BB-' corporate credit rating, on the provider of
transportation services and lessor of marine cargo containers.
The outlook is stable.
"The ratings on Bermuda-based Sea Containers Ltd. reflect a
relatively weak financial profile and financial flexibility,
partially offset by fairly strong competitive positions in its
major businesses," said Standard & Poor's credit analyst Betsy
Snyder. Sea Containers is involved in passenger transport
operations and marine cargo container leasing. It also has a 42%
stake in Orient-Express Hotels Ltd. (OEH). Passenger transport
is the largest operation, accounting for approximately 90% of
total revenues. This business includes passenger and vehicle
ferry services in the English Channel, the Irish Sea, and the
Northern Baltic Sea; and passenger rail service between London
and Scotland, GNER (Great North Eastern Railway). While Sea
Containers is one of the larger ferry participants on routes it
serves, this is a highly competitive business, with several
participants.
Sea Containers' earnings and cash flow have recovered somewhat
since 2001, due to improving conditions at the passenger
transport and GE SeaCo operations. Demand for marine cargo
containers has been strong since mid-2002, and passenger train
travel has recovered since a series of accidents that occurred
in 2000 and 2001. GNER's franchise expires in April 2005, and
the company plans to bid for a renewal, as well as bid for other
rail franchises. Although nonrenewal of the GNER franchise will
result in reduced consolidated EBITDA, it will also reduce debt
since all GNER's assets are financed through operating leases.
The company has sold assets to redeem debt and has indicated it
could sell a portion of its OEH stake to redeem $80 million of
debt securities due in December 2004 if the proposed $150
million debt financing is unsuccessful. While the assets that
were sold are noncore, their sale will leave the company with
reduced cash flow and fewer assets available for sale.
Earnings from several of Sea Containers' businesses have begun
to improve, which has aided its credit ratios. The company
expects to use proceeds of the proposed $150 million debt
financing to redeem $80 million of debt securities maturing in
December 2004. The company has also indicated it would sell a
portion of its stake in OEH to redeem debt if necessary. As a
result, concerns regarding refinancing risk have been
alleviated. The extension of the GNER franchise remains another
element of uncertainty. While a range of possibilities could
occur, none are likely to have a rating effect.
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B R A Z I L
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CEMIG: Extraordinary Shareholders' Meeting Announced
----------------------------------------------------
Stockholders of Cemig are hereby called to an Extraordinary
General Meeting, to be held on 7 May 2004 at 10:30 a.m. local
time (GMT-3), at the company's head office, Avenida Barbacena
1,200, 18th floor, Belo Horizonte, in the state of Minas Gerais,
Brazil, to decide on a proposal for renewal of the company's
Board, with election of members and their substitute members, by
the cumulative voting method, pursuant to a request by the
stockholder Southern Electric Brasil Participacoes Ltda.
Pursuant to Clause 3 of CVM Instruction 165 of 11 December 1991,
notice is hereby given that adoption of a requisition to elect
members of the Board by the cumulative voting method requires
the affirmative vote of stockholders representing in aggregate a
minimum of 5% (five percent) of the company's total voting
stock.
Any stockholder who wishes to be represented by proxy in this
General Meeting should obey the terms of Article 126 of Law
6406/76, as amended, and the sole paragraph of Article 9 of the
company's By-laws, by depositing, preferably by 6 May 2004,
proofs of ownership of the shares, issued by a depositary
financial institution, and a power of attorney with special
powers, at the management office of the General Secretariat of
the company at Av. Barbacena 1,200 - 19th floor, B1 wing, Belo
Horizonte, state of Minas Gerais, Brazil, or by showing the said
proofs of ownership at the time of the meeting.
Issued and signed by the members of the Board.
Belo Horizonte, Brazil, 16 April 2004
CONTACT: COMPANHIA ENERGETICA DE MINAS GERAIS
Av.Barbacena, 1200
Santo Agostinho - CEP 30190-131
Belo Horizonte - MG - Brasil -
Fax (0XX31)299-4691 - Tel.: (0XX31)349-2111
EMBRATEL: MCI Emerges From U.S. Chapter 11 Protection
-----------------------------------------------------
MCI (WCOEQ, MCWEQ) formally emerged Tuesday from U.S. Chapter 11
protection. Tuesday's emergence signifies that MCI's plan of
reorganization, confirmed on October 31, 2003, by the U. S.
Bankruptcy Court for the Southern District of New York is now
effective and the company has begun to distribute securities and
cash to its creditors. With the Chapter 11 process behind it,
the company is now officially known as MCI, Inc.
"MCI's turnaround is a tribute to the human spirit and the
amazing will of our 50,000 dedicated employees," said Michael D.
Capellas, MCI president and CEO. "This is a symbolic day for MCI
employees, who have remained committed to serving our customers.
I feel a great sense of pride for all we've accomplished
together."
"We are emerging with a new Board and management team, a sound
financial position, unmatched global assets, a strong customer
base and industry-leading service quality."
Industry Shifts Play to MCI's Advantage
The telecommunications industry is going through a period of
transformation. Increased competition, wireless displacement,
regulatory restrictions and technological changes make for a
tough industry climate. Despite seismic shifts in the telecom
industry, Internet usage is still increasing, people are
communicating more often and in more ways and computing and
communications are converging. This convergence unquestionably
plays to MCI's core strengths.
"The real winner will be whoever is able to provide simple,
converged products and services that can manage digitized
content on a global IP network securely and reliably," said
Capellas. "MCI is uniquely positioned to do just that, with an
end-to-end global communications network spanning 150 countries
on six continents."
Customer Focus Remains Top Priority
MCI emerges with a strong enterprise customer base, retaining
all of its largest corporate customers as well as signing many
new accounts.
In the past six months, longstanding MCI customers such as
DaimlerChrysler and NASDAQ have signed new agreements with MCI.
In addition, other customers such as Emerson, Hughes Supply and
Siebel Systems continue to rely on MCI to meet their evolving
communications needs.
Emerson was an early adopter of MCI's IP services in 1999, and
today MCI provides the company with a global IP VPN solution
that spans more than 400 sites around the globe.
"MCI has consistently delivered the highest level of quality
service and support we need to conduct critical business
operations," said Ken Hahn, Emerson CIO. "We believe in MCI's
long-term strategy to deliver the next generation of IP services
and the company's ability to deliver the solutions we need to
succeed today and in the future."
In the upcoming weeks and months, MCI will roll-out new products
and services, as well as announce several new partnerships that
extend its IP leadership position.
"Our emergence is not the finish line, it's the beginning of a
new race," said Capellas. "Somewhere between telecommunications
and computing there's a new kind of company, and that's what MCI
will be."
About MCI
MCI, Inc., (WCOEQ, MCWEQ), is a leading global communications
provider, delivering innovative, cost-effective, advanced
communications connectivity to businesses, governments and
consumers. With the industry's most expansive global IP
backbone, based on the number of company-owned points of
presence, and wholly-owned data networks, MCI develops the
converged communications products and services that are the
foundation for commerce and communications in today's market.
PR Contact: Name: Brad Burns
Tel: 800-644-NEWS
PR Contact: Name: Peter Lucht
Tel: (800) 644-NEWS
PR Contact: Name: Gregory Pettit
Role: Investors
Tel: (877) 624-9266
Web site: http://www.mci.com
EMBRATEL: MCI Sale Still Subject To Court Ruling
------------------------------------------------
Despite the emergence Tuesday of MCI from Chapter 11 protection,
a spokesperson for the former WorldCom said a United States
bankruptcy court will still rule on the proposed sale of
Brazil's largest long-distance carrier Embratel, reports
BNamericas. The spokesperson said that as planned, The New York
Southern District Bankruptcy Court will hear the case on April
27.
MCI has agreed to sell its controlling stake in Embratel to
Mexico's Telmex (NYSE: TMX) for US$360mn. But Brazilian holding
company Calais Participaoes, composed of Brazil's three
incumbent local phone companies, is lobbying the court for the
approval of its higher bid of US$550mn, including a US$396
million payment if Brazilian antitrust authorities block the
sale.
Brazilian carrier-of-carriers Geodex owns 100% of Calais, while
Brasil Telecom (NYSE: BRP), Telemar (NYSE: TNE) and Telesp
(NYSE: TSP) own 100% of preferred shares.
EMBRATEL: MCI Board of Directors Adopts Shareholder Rights Plan
---------------------------------------------------------------
MCI, Inc., (MCIAV.PK) announced Tuesday its Board of Directors
has adopted a Shareholder Rights Plan designed to protect
company shareholders in the event of takeover activity. Under
the plan, shares of MCI Common Stock would be made available to
shareholders at a reduced price should anyone acquire 15 percent
or more of outstanding shares of that stock.
"MCI's Board believes that the Rights Plan represents a sound,
reasonable and customary means of safeguarding the interests of
our shareholders," said MCI Chairman Nicholas Katzenbach. "It is
designed to ensure they realize the long-term value of their
investment. The Rights Plan encourages anyone seeking to acquire
the Company to treat all shareholders fairly."
In adopting the Rights Plan, the MCI Board declared a dividend
of one right ("Right") for each outstanding share of MCI Common
Stock to stockholders of record on April 30, 2004. The Rights
become exercisable upon the earlier of: 1) 10 days following a
public announcement by another person or group that it has
acquired beneficial ownership of 15 percent or more of the
outstanding shares of common stock; or 2) 10 business days
following the commencement of a tender offer or exchange offer
to acquire beneficial ownership of 15 percent or more of the
outstanding shares of MCI common stock. Certain qualifying
tender offers made to all stockholders will not trigger the
Rights.
The Rights expire on the date of the 2007 annual meeting, unless
earlier redeemed at a price of $.001 per Right. If the Rights
become exercisable, they permit the holders to acquire common
stock with a market value equal to twice the exercise price or
could permit holders to acquire common stock of an acquirer of
MCI with a market value equal to twice the exercise price.
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C H I L E
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AES GENER: Successfully Refinances Argentine Units
--------------------------------------------------
In a statement to Chile's securities regulator, Chilean power
company AES Gener said it has successfully wrapped up on April
16 the financial restructuring of generator TermoAndes and
transmission firm InterAndes, its two Argentine units, says
BNamericas.
TermoAndes is a gas-fired generator based in Salta which sells
only to Chile's northern grid (SING), transporting the power
along InterAndes' lines.
The holders of US$151.4 million in TermoAndes and InterAndes
outstanding notes received an upfront payment funded with cash
currently held in the TermoAndes' and InterAndes' trust accounts
along with a proportion of AES Gener's cash on hand. In
exchange, the holders of TermoAndes and InterAndes notes have
agreed to extend a US$93.5 million loan to AES Gener, which is
amortizable in 2004-2010.
MADECO: High 1Q Demand Supports Forecasts
-----------------------------------------
In support of its forecasts for increased output in 2004,
Chilean copper and aluminum products manufacturer Madeco (NYSE:
MAD) said it is experiencing high customer demand from Brazil's
electrical distribution sector, Argentina's construction
industry and Chile's telecommunications and energy markets for
the first quarter, according to BNamericas, citing a report by
local daily El Mercurio.
El Mercurio also reported that in its aim to end five straight
years of losses, Madeco, which is 76%-owned by Chilean
conglomerate Qui¤enco, which in turn is majority owned by
Chile's Luksic Group, has opened up its products to new markets,
primarily in Europe. Depending on lower operational costs,
expected regional economic recovery and domestic exchange rates
against the dollar, the company has forecasted a 10% growth from
its US$400 million revenue last year.
MASISA: First Quarter Profit Soars
----------------------------------
In a major turnaround, Chilean wood products company Masisa
reported Tuesday a US$8.28 million net profit for the January-
March period--more than 10 times higher than the US$700,000 it
registered for the same period in 2003, reveals Reuters.
In a report to Chile's stock market regulator, Masisa's revenue
soared to nearly 41 percent to US$87.9 million while operating
profit -- earnings before interest, taxes, extraordinary items
and non-cash financial charges -- more than doubled to US$11.6
million. The company attributed the jump on improved economies
in Latin America compared with a year earlier.
"The increase is explained by the continuous improvement of the
Latin American markets after the weak performance registered
during the first half of 2003," the company said in a statement.
Masisa reduced its sales in Argentina in the first quarter of
2003 due to the economic crisis, redirecting sales to other
export markets. Production costs also rose upon its introduction
of new technology in its Chilean fiberboard plants. Since then,
prices for its products have risen in world markets but Masisa
said it has suffered from a shortage of ships to transport its
products overseas in early 2004.
TELEFONICA CTC: 1Q04 Profit Falls 52%
-------------------------------------
Blaming higher costs associated with its expanding mobile
telephone business, Chilean telecommunications company
Telefonica CTC Chile (CTC) said Tuesday its net profit for the
first quarter dropped 52%, according to Reuters.
From a quarterly net income of CLP7.258 billion last year,
CTC said it only posted a net income of CLP3.513 billion for the
quarter, a fall that was bigger than expected. The average
forecast in an earlier Reuters poll of six analysts was for CTC
first-quarter net income of CLP4.6 billion.
TELEFONICA CTC: Mobile Arm Reportedly Investing US$100M in '04
--------------------------------------------------------------
A report by business daily Diario Financiero revealed Tuesday
that the mobile telephone unit of Compania de Telecomunicaciones
de Chile SA (CTC) will be investing US$100 million in boosting
transmission speeds on its network, Dow Jones reports.
Citing CTC Chief Executive Oliver Floegel, the report said the
investment of CTC's Telefonica Movil will go to extending the
coverage of high-speed mobile data transfer from Santiago and
adjacent areas to 27 other cities in Chile. He added that the
mobile unit will invest less than planned this year because of
the 26% cut in mobile telephone grid access fees regulated by
the government in January.
CTC, a unit of Spanish Telefonica SA (TEF), is the only
Telefonica unit that holds both fixed-line and mobile assets.
===============
C O L O M B I A
===============
AVIANCA: Granted Time To Choose Buyer
-------------------------------------
Colombian flag carrier Avianca said Tuesday a U.S. bankruptcy
judge gave it a one-month extension to negotiate a restructuring
plan so it could have more time to choose between two competing
takeover bids, Reuters reports. The deadline for the proposal of
a restructuring plan will now be May 30 instead of April 30, the
carrier said.
"The judge determined that an extension until the end of May
would permit the company to analyze the proposals for investment
and decide which is most adequate," Avianca said.
Grupo Sinergy, a Brazilian company led by German Efromovich,
which was the first firm to express interest in Avianca, was
joined in recent weeks by COPA-Continental, a partnership
between Panama's Copa Airlines and Continental Airlines.
Taking advantage of the existence of a U.S. subsidiary to seek
Chapter 11 bankruptcy protection, which allows companies to
continue operating while renegotiating debts and is more
generous than Colombian bankruptcy law, Avianca began Chapter 11
proceedings to renegotiate at least US$269 million in debt in
the New York court early last year.
Last month, Sinergy offered to assume Avianca's total debt
amounting to US$300 million, in addition to a US64 million
capital injection in exchange for a 75% stake in the struggling
airline, which is owned by Colombia's National Coffee Federation
and conglomerate Valores Bavaria. Continental and Copa then made
a joint bid, whose terms have not been disclosed, but the head
of Avianca's pilots' union, who participates in the Chapter 11
negotiations, said it offered more money than Sinergy.
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M E X I C O
===========
DESC: Boosts Capital With Investor Slim's Help
----------------------------------------------
Mexican conglomerate Desc SA (DES) said Tuesday it has concluded
a MXN2.74 billion capital increase, with local financial group
Grupo Financiero Inbursa SA (GFINBUR.MX) controlled by Mexican
billionaire Carlos Slim taking a 24.9% stake by infusing some
US$90 million into Desc, Dow Jones says. The company said
proceeds from the deal will be used to pay its debts.
In a statement, the company said, "One hundred percent of the
912,719,584 common shares issued for this capital increase were
subscribed and settled, totaling MXN2.74 billion pesos ($242
million)." "The funds generated by this capital increase will be
used to reduce the companys debt," it added.
Of the new common shares offered, 55% were subscribed to in a
rights offering, and Inbursa snapped up the remainder, the
statement said. According to Desc, Inbursa bought shares for
only MXN1.02 billion of the possible MXN2 billion originally
agreed upon by the two companies due to the positive investor
response to the rights offering.
Desc, which has auto parts, petrochemicals, processed foods and
real estate divisions, said the company will still be under the
control of chairman Fernando Senderos Mestre and his family, who
participated in the rights offering.
INDUSTRIAS PENOLES: Posts Record 1Q04 Sales
-------------------------------------------
Dow Jones reports that the world's biggest producer of silver,
Mexican mining company Industrias Penoles SA (PE&OLES.MX) said
Tuesday that for the first quarter, its sales reached US$377.2
million, a record for any quarter. Penoles attributed its gains
to higher metals prices and a weaker peso.
The company also reported a net profit of MXN342.5 million in
the quarter on sales of MXN4.16 billion, compared with a net
loss of MXN86.4 million on sales of MXN3.3 billion in the first
quarter of 2003. Meanwhile, the company's operating profit rose
to MXN555.3 million from MXN31.7 million for the same period
last year.
Penoles said that its strong first quarter was also made
possible by higher production volumes for most of its metals,
including a record 21.5 million ounces of refined silver. The
company added that higher prices also helped, with lead prices
rising 84% to 38 cents a pound, silver 43.9% to US$6.71 an
ounce, zinc 36.2% to 49 cents a pound, and gold 16% to $408.44
an ounce.
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P A R A G U A Y
===============
MILLICOM INTERNATIONAL: Revenues Surge in 1Q04
----------------------------------------------
Millicom International Cellular SA (Nasdaq:MICC)
Stockholmsborsen:MIC), the global telecommunications investor,
announced Tuesday results for the quarter ended March 31, 2004.
Marc Beuls, MIC's President and Chief Executive Officer stated:
"We have changed our financial reporting to reflect the five
operational clusters in the group which are South East Asia,
South Asia, Africa, Central America and South America. Countries
within a cluster have historically shown similar developments
and breaking down the numbers in this way provides greater
transparency and enables our shareholders, bondholders and
analysts to gain a better understanding of the trends we see in
certain parts of the company."
"MIC has had a buoyant start in 2004, building on the growth
seen last quarter, by producing increases in revenues and EBITDA
of 54% and 55% respectively over the first quarter of 2003. Our
African operations in particular continued to show very
impressive growth with revenues up 76% and EBITDA up 92% year on
year, fuelled by annual total subscriber growth of 81%. Asia
continued to perform well and we are encouraged by definite
signs of recovery in South America. Our priority for 2004 is to
accelerate the growth of our existing operations, whilst seeking
opportunities in adjacent markets. Our current licence renewals
are progressing well. We signed a Memorandum of Understanding in
Vietnam and, in Pakistan, our licence extension has been
confirmed and negotiations continue with the Ministry of
Telecoms regarding final terms."
Financial Results for the Three Months Ended March 31, 2004*
Total revenues for the three months ended March 31, 2004 were
$213.9 million, an increase of 54% from the first quarter of
2003, reflecting the increasing trend of growth in MIC's
operations. MIC recorded revenue growth in Africa of 76% to
$31.7m in the first quarter of 2004 compared with the same
period in 2003, with Ghana producing growth of 153%. Revenues
for Asia for the first quarter of 2004 increased by 34% from the
same period last year, to $86.4 million, with $55.7 million for
South East Asia and $30.6 million for South Asia.
First quarter revenues for Latin America increased by 76% from
the first quarter of 2003, mainly because of the reconsolidation
of El Salvador, or by 13% if El Salvador is excluded. The
Central American market continued to perform strongly with
Guatemala and Honduras producing increases in revenues of 20%
and 19% respectively from the first quarter of 2003. In South
America, Bolivia and Paraguay produced revenue increases of 6%
and 4% respectively, their highest year-on-year quarterly
increases for several years, pointing to an upturn in the
region.
EBITDA for the three months ended March 31, 2004 was $106.8
million, an increase of 55% from the quarter ended March 31,
2003. EBITDA for Africa increased by a 92% to $13.3 million in
the first quarter of 2004 from $7.0 million in the first quarter
of 2003, with the most impressive growth occurring in Ghana and
Senegal. EBITDA for Asia was $50.0 million for the first
quarter, an increase of 37% from the same period in 2003, with
increases of 45% and 34% for South Asia and South East Asia
respectively. Latin America recorded growth in EBITDA of 74%
from the first quarter of 2003 to $43.5 million, following the
reconsolidation of El Salvador, with a particularly strong
increase of 37% produced by Guatemala. Excluding El Salvador,
EBITDA grew by 17%. The quarterly EBITDA margin for Asia was
58%, (59% for South East Asia and 55% for South Asia), for Latin
America it was 46% (49% for Central America and 39% for South
America) and for Africa it was 42%.
The profit per common share on a non-dilutive basis for the
first quarter of 2004 was $0.22. Excluding the gain on exchange
and disposal of investments, the valuation movements on
securities, the fair value result on financial instruments and
the exchange gain on the 5% Mandatory Exchangeable Notes, the
profit per share was $0.21. The corresponding loss per share for
the first quarter of 2003 was ($0.20), derived from the profit
per share of $0.40 after deduction of $0.60 relating to a non-
recurring gain on exchange and disposal of investments and
valuation movements on securities.
Millicom International Cellular S.A. is a global
telecommunications investor with cellular operations in Asia,
Latin America and Africa. It currently has a total of 16
cellular operations and licenses in 15 countries. The Group's
cellular operations have a combined population under license of
approximately 387 million people.
To see financial summary:
http://bankrupt.com/misc/Financial_Summary.txt
CONTACTS: Millicom International Cellular S.A.
Marc Beuls
President and Chief Executive Officer
+352 27 759 327
Shared Value Ltd
Andrew Best
Investor Relations
+44 20 7321 5022
Web site: http://www.millicom.com
=================================
T R I N I D A D & T O B A G O
=================================
BWIA: To Raise US$40 Million With Rights Issue
----------------------------------------------
Trinidad and Tobago carrier BWIA announced last week that it has
approved a rights issue of new shares to be offered to
stockholders for the purpose of raising around US$40 million
that is "urgently required to reduce some critical liabilities
and to stabilise the company," reports The Trinidad Express.
The troubled airline said the rights issue will offer 27 new
shares for every one currently held at a price of TT$0.20. BWIA
said it is urgently seeking the approval of the regulatory
authorities for the operation.
The carrier, which has piled up huge financial losses over the
years, has been at the receiving end of assistance packages from
the government. Earlier this month, Cabinet agreed to
restructure BWIA's balance sheet by pumping in US$30 million to
convert debt to equity at the carrier, in addition to the US$10
million the government will directly infuse into the cash-
strapped airline.
BWIA said in a statement that the government has appointed
consultants SH&E to advise on the future of BWIA and has agreed,
as an interim measure that it will be prepared to support the
rights issue to the extent of the full amount not taken up by
other shareholders.
CONTACT: BRITISH WEST INDIES AIRWAYS
Phone: + 868 627 2942
E-mail: mailto:mail@bwee.com
Home Page: http://www.bwee.com/
Contacts:
Conrad Aleong, President and CEO (Trinidad)
Beatrix Carrington, VP Marketing and Sales (Barbados)
Paul Schutz, CFO (Trinidad)
=================
V E N E Z U E L A
=================
PDVSA: To Upgrade Refineries, Trim Fuel Oil Output
--------------------------------------------------
With the intention of improving the quality of its oil products,
a corporate advisor to Venezuelan state oil company Petroleos de
Venezuela (PVZ.YY) said Tuesday it is planning to upgrade its
refinery network and possibly add new refineries, and may
gradually cut back on the production of fuel oil, Dow Jones
relates.
"First we need investment in our refinery system," Mr. Carlos
Figueredo said, adding that PdVSA is "analyzing" the possibility
of building new refineries. "The idea is to reduce (fuel oil)
production as much as possible," he said.
Mr. Figueredo said that fuel oil production would probably
remain stable this year as the company begins to upgrade its
domestic refinery network, which has an oil product output of
around 1 million barrels a day. He said PdVSA will increase
revenue if it replaces cheap fuel oil production with other
products.
***********
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 and Edem Psamathe P. Alfeche,
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
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Information contained herein is obtained from sources believed
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The TCR Latin America subscription rate is $575 per half-year,
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