/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040427.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 Tuesday, April 27, 2004, Vol. 5, Issue 82 Headlines A R G E N T I N A ALIMENTOS FARGO: Fitch Retains `D(arg)' Rating on $120M of Bonds ATLANTIC SPORT: Bankruptcy Process Begins By Court Order BANCO DE GALICIA: Gets Green Light To Proceed With Debt Swap BUENA ALIMENTACION: Court OKs Creditor's Bankruptcy Motion CASA SARA: Court Issues Bankruptcy Ruling COMERCIAL TUCUMAN: Court Sets Deadline For Submission of Reports CORREO ARGENTINO: Govt. Readies Conditions for Reprivatization DELTA CALZADOS: Reorganization Authorized, Claims Check Next ESERBAIRES: Court OKs Creditor's Bankruptcy Call L ARLESIENNE: Court Declares Company Bankrupt LA SUDAMERICANA: Initiates Bankruptcy Proceedings MADIE: Court Rules Bankruptcy MONLEM SERVICE: Court Issues Bankruptcy Ruling PARMALAT ARGENTINA: Bondi Travels to Argentina to Outline Sale PLUS ONE: Declared Bankrupt by Court TELECOM ARGENTINA: $3.2B Of Bonds Remain in Default TRANSPORTE RAFAEL: Banfield Court Approves Reorganization V LEHMANN: Court Decrees Bankruptcy, Names Receiver * ARGENTINA: Puts Use Of Defaulted Bonds In Tax Payments On Hold B E R M U D A FOSTER WHEELER: Names New Chief Corporate Compliance Officer B R A Z I L EMBRATEL: Calais Again Increases Offer EMBRATEL: Report Alleges Consortium Will Raise Embratel Rates EMBRATEL: Calais Denies Report Of Rate Hike Plans M E X I C O SAVIA: Shares Suspended After Loss U R U G U A Y UTE: To Put 70MW Contract Bidding Rules Forward V E N E Z U E L A PDVSA: Hovensa Sells $50.7M in '22 Bonds - - - - - - - - ================= A R G E N T I N A ================= ALIMENTOS FARGO: Fitch Retains `D(arg)' Rating on $120M of Bonds ---------------------------------------------------------------- Fitch Argentina Calificadora de Reisgo S.A. maintains a `D(arg)' rating on some US$120 million of corporate bonds issued by local company Compania de Alimentos Fargo S.A., the National Securities Commission or CNV reports. The rating, which is assigned to financial commitments that are currently in default, was given based on the Company's finances as of December 31, 2003. The bonds affected are given the description "Obligaciones Negociables Simples" and will mature on July 24, 2008. These bonds were classified under "Simple Issue" ATLANTIC SPORT: Bankruptcy Process Begins By Court Order -------------------------------------------------------- Buenos Aires Court No. 22 declared Atlantic Sport S.A. "Quiebra," reports Infobae. The declaration allows the Company to proceed with the bankruptcy process, which will close with the liquidation of its assets. The court, assisted by Clerk No. 43, appointed Mr. Alberto Antonio Vilela as receiver who will authenticate proofs of claim until May 19, 2004. Afterwards, the receiver will prepare the individual reports based on the results of the authentication and then submit these reports to court on July 2, 2004. After these results are processed in court, the receiver will consolidate these reports into a general report and submit it to court on August 31, 2004. CONTACT: Alberto Antonio Vilela, Receiver Rodriguez Pena 431 Buenos Aires BANCO DE GALICIA: Gets Green Light To Proceed With Debt Swap ------------------------------------------------------------ Argentina's national securities commission approved Friday afternoon plans by Banco de Galicia y Buenos Aires SA to issue up to US$1.4 billion in bonds that will be used in its proposed debt swap. The approval, according to Bloomberg News, came after the securities regulator approved the bank's plans to issue as many as 149 million preferred rights, which will be converted into ordinary Class B shares in a year. Galicia needs to reschedule payments on some of the US$1.6 billion it owes creditors. Earlier Friday, the bank announced an extension of its offer until April 27 as it waited for the regulator's clearance to issue the bonds. Delays in the Court's approval prompted the bank to postpone its rescheduling plans four times. The bank, which postponed its deadline to April 27, said it had secured agreement from creditors representing 97% of its US$1.32 billion debt burden. The bank has now surpassed the 95% goal it had set for its creditor agreement rate. Argentine bankruptcy law requires just a two-thirds approval rate from bondholders. It now can submit its debt-restructuring proposal for legal approval and authorization from the central bank. CONTACT: BANCO DE GALICIA Y BUENOS AIRES Tte Gral Juan D Peron 407 Buenos Aires Argentina C1038AAI Phone: +54 11 6329 0000 Fax: +54 11 6329 6100 Home Page: http://www.bancogalicia.com.ar Contact: Juan Martin Etchegoyhen, Chairman Antonio R. Garces, Vice Chairman BUENA ALIMENTACION: Court OKs Creditor's Bankruptcy Motion ---------------------------------------------------------- Judge Gustavo Ottolenghi of Buenos Aires Court No. 4 declared Buena Alimentacion SA bankrupt, reports Argentine newspaper La Nacion. The ruling comes in approval of the bankruptcy petition filed by the Company's creditor, Juan Caracoche, for nonpayment of US$1116.24 in debt. Clerk No. 8, Dra. Anta, assists the court on the case, the source added. The Company's receiver, Mr. Gustavo Pagliere, will examine and authenticate creditors' claims until June 9, 2004. This is done to determine the nature and amount of the Company's debts. Creditors must have their claims authenticated by the receiver by the said date in order to qualify for payments to be made after the Company's assets are liquidated. CONTACT: Buena Alimentacion SA Jose Cubas 2153 Buenos Aires Gustavo Pagliere, Receiver Tucuman 1424, Piso 8§ "E" Buenos Aires CASA SARA: Court Issues Bankruptcy Ruling ----------------------------------------- Casa Sara S.R.L. will now enter bankruptcy after Buenos Aires Court No. 22 declared it "Quiebra," reports Infobae. With assistance from Clerk No. 43, the court named Mr. Miguel Angel Loustau as receiver. He will verify creditors' claims until May 24, 2004. Following claims verification, the receiver will submit the individual reports, which were prepared based on the results of the verification, to the court on July 2, 2004. The general report is due for submission on September 3, 2004. The Company's bankruptcy case will close with the liquidation of its assets to pay its creditors. CONTACT: Miguel Angel Loustau, Receiver Viamonte 993 Buenos Aires COMERCIAL TUCUMAN: Court Sets Deadline For Submission of Reports ---------------------------------------------------------------- Mr. Isaac Jospe, the court-appointed receiver overseeing the reorganization process of Comercial Tucuman S.R.L., must submit individual reports to court on June 30, 2004. Submission of these reports follows the verification of the creditors claims, which will run through May 26, 2004. After the individual reports are processed in court, the receiver will then prepare the general report and submit this to court on August 13, 2004. The informative assembly, the last stage of a reorganization process, is slated for December 15, 2004. Judge Ballerini of Court No. 24, with assistance from Dr. Medina, Clerk No. 47, authorized the reorganization of Comercial Tucuman early this month. The Company is undergoing the process listing assets of US$68,391.71 and liabilities of US$158,458.48 CONTACT: Comercial Tucuman SRL Tucuman 457 Buenos Aires Isaac Jozpe, Receiver Jose Evaristo Uriburu 1054 Buenos Aires CORREO ARGENTINO: Govt. Readies Conditions for Reprivatization -------------------------------------------------------------- Argentina's Communications Secretariat has finished outlining the terms and conditions for the new auctioning of the national postal concession. Under the new conditions, the State will keep at least a 5% stake in the operator and a "golden share" that will give it power of veto on all the decisions made by the Company. Aside from that, the new concessionaire will no longer pay a semi- annual fee but an annual exploitation right during the concession term. This fee will consist of a fixed sum and a variable portion. A source close to the making of the concession terms said that everything was ready and the tender process will be called for when the president decides. The government wants the Company to be handed to a private investor in July as the latest. The government rescinded former postal operator Correo Argentino's concession in November, faulting the Company for missed payments and failure to meet other terms of the contract through the decree 1075. This decree also established that the service would be re-privatized within 180 days, term that is expiring May 20. Some of the investors that have already shown interest in acquiring the national postal concession are media group Clarin, businessman Mario Montoto, the Werthein group and the official postal services of Canada and New Zealand. DELTA CALZADOS: Reorganization Authorized, Claims Check Next ------------------------------------------------------------ La Plata Civil and Commercial Court No. 8 authorized Delta Calzados S.H. to start its reorganization process, reports Infobae. The court granted the Company's "Concurso Preventivo" motion, appointing Ms. Olga Susana Urriza as receiver. Creditors have until May 24, 2004 to submit their proofs of claims to the receiver, who will verify these claims and submit them to court as individual reports on July 12, 2004. After these reports are processed in court, the receiver will then prepare the general report and submit it to court on September 8, 2004. The informative assembly, the last stage of a reorganization process, will be held on March 1, 2005. CONTACT: Olga Susana Urriza, Receiver Calle 18 Nro. 425 La Plata ESERBAIRES: Court OKs Creditor's Bankruptcy Call ------------------------------------------------ Eserbaires SA entered bankruptcy after Judge Chomer of Buenos Aires Court No. 10 approved a bankruptcy petition filed by Juan De Rosa Moreno reports La Nacion. The Company's failure to pay US$4718.30 in debt prompted the creditor to file the petition. Working with Dra. D'Alessandri, Clerk No. 19, the court assigned Mr. Carlos Montana as receiver for the bankruptcy process. The receiver's duties include the authentication of the Company's debts and the preparation of the individual and general reports. Creditors are required to present their proofs of claims to the receiver before May 26, 2004. The Company's assets will be liquidated at the end of the bankruptcy process to repay creditors. Payments will be based on the results of the verification process. CONTACT: Eserbaires SA Sarmiento 4071 Buenos Aires Carlos Montana, Receiver Ayacucho 457, Piso 5§ "53" Buenos Aires L ARLESIENNE: Court Declares Company Bankrupt --------------------------------------------- L Arlesienne S.R.L. entered bankruptcy on orders from Buenos Aires Court No. 14, reveals Infobae. Working with Clerk No. 28, the court assigned Mr. Alberto Jorge Rotenberg as receiver. He will verify creditors' claims until June 14, 2004. Creditors who fail to have their claims validated before the deadline will be disqualified from receiving any payments to be made after the Company's assets are liquidated. The individual reports, which are to be prepared upon completion of the verification process, are due in court on August 16, 2004. The court also requires the receiver to prepare a general report and file it on September 28, 2004. This report contains a summary of the results contained in the individual reports. CONTACT: Alberto Jorge Rotenberg, Receiver Av Cordoba 1336 Buenos Aires LA SUDAMERICANA: Initiates Bankruptcy Proceedings ------------------------------------------------- Buenos Aires Court No. 24 declared La Sudamericana C.I.S.A. "Quiebra," reports Infobae. Clerk No. 47 assists the court on the case, which will close with the liquidation of the Company's assets to repay creditors. Mr. Eduardo Ruben Pronsky, who has been appointed as receiver, will verify creditors' claims until July 5, 2004 and then prepare the individual reports based on the results of the verification process. The individual reports will then be submitted to court on August 13, 2004 followed by the general report on September 16, 2004. CONTACT: Eduardo Ruben Pronsky, Receiver Parana 480 Buenos Aires MADIE: Court Rules Bankruptcy ----------------------------- Buenos Aires Court No. 22 declared Madie S.R.L. "Quiebra," reports Infobae. The Company will now proceed with the bankruptcy process, which will close with the liquidation of its assets. The court, assisted by Clerk No. 44, appointed Mr. Juan Enrique Reindhardt, as receiver who will authenticate proofs of claim until June 8, 2004. Afterwards, the receiver will prepare the individual reports based on the results of the authentication process and then submit these reports to court on August 4, 2004. After these results are processed in court, the receiver will then submit the general report on September 15, 2004. CONTACT: Juan Enrique Reindhardt Viamonte 1348 Buenos Aires MONLEM SERVICE: Court Issues Bankruptcy Ruling ---------------------------------------------- Monlem Service S.R.L. (formerly Alpar Service S.R.L.) will now enter bankruptcy after Buenos Aires Court No. 24 declared it "Quiebra," reports Infobae. With assistance from Clerk No. 47, the court named Mr. Juan Carlos Sosa as receiver, who will verify creditors' claims until July 6, 2004. Following claims verification, the receiver will submit the individual reports, which were prepared based on the verification results, to court on September 7, 2004. The general report is due for submission on October 11, 2004. The Company's bankruptcy case will close with the liquidation of its assets to pay its creditors. CONTACT: Juan Carlos Sosa, Receiver Viamonte 783 Buenos Aires PARMALAT ARGENTINA: Bondi Travels to Argentina to Outline Sale -------------------------------------------------------------- A representative of Parmalat S.p.A.'s administrator Enrico Bondi is in Argentina underlying the structure and legal procedures for the sale of local assets. The goal is to have all the legal issues worked out this week. KPMG is the agent hired by Parmalat Argentina to gather and evaluate bids. Law firm Allende & Brea will take care of the legal issues. Private equity funds Pegasus, headed by Mario Quintana, and Southern Cross, led by Norberto Morita, have recently expressed interest in acquiring Parmalat's operation in Argentina. Morita is also interested in Chile and Uruguay. Though none of these companies have made official statements, New Zealand's Fonterra (partnered with Nestle), Spanish Iparlat and Danish Arla Foods are also after Parmalat's assets. Danone, who is only interested in the brands, would be a step behind, since Parmalat wants to sell its two plants along with the brands. U.S.' Kraft, which was invited by the organizers of the sale, denied being interested. PLUS ONE: Declared Bankrupt by Court ------------------------------------ Buenos Aires Court No. 24 declared Plus One S.A. bankrupt, reports Infobae. Clerk No. 47 assists the court on this particular case, which will close with the liquidation of the Company's assets to repay creditors. Ms. Angel Romano Pozzi, who has been appointed as receiver, will verify creditors' claims until June 14, 2004 and then prepare the individual reports based on the results of the verification process. The individual reports will then be submitted to the court on August 6, 2004, followed by the general report September 20, 2004. CONTACT: Angel Romano Pozzi, Receiver Combate de los Pozos 129 Buenos Aires TELECOM ARGENTINA: $3.2B Of Bonds Remain in Default --------------------------------------------------- Fitch Argentina Calificadora de Riesgo S.A. maintains a `D(arg)' rating on a total of US$3.2 billion of corporate bonds issued by Telecom Argentina S.A. (formerly Telecom Argentina STET-France Telecom S.A.), the Comision Nacional de Valores (CNV) reports. The bonds in default are: -- US$200 million worth of "Programa de ON simples." Maturity date was not indicated; -- US$1.5 billion worth of "Programa Global de ONs autorizado por Asamblea de fecha 16.3.99", due on August 2, 2004; and -- US$1.5 billion of "Programa de obligaciones negociables", with undisclosed maturity date. All the above bonds were classified under "Program." The rating action was taken based on the Company's finances as of December 31, 2003. CONTACT: TELECOM ARGENTINA S.A. Alicia Moreau de Justo 50, 10th Floor Capital Federal (1107) Republica Argentina Phone: +54 11 4968 4000 Home Page: http://www.telecom.com.ar Contacts: Alberto J. Ricciardi, Chief Financial Officer Elvira Lazzati, Finance Director Pedro Insussarry, Investor Relations Manager Phone: (5411) 4968-3626/3627 Fax: (5411) 4313-5842/3109 E-mail: inversores@intersrv.telecom.com.ar TRANSPORTE RAFAEL: Banfield Court Approves Reorganization --------------------------------------------------------- Banfield Civil and Commercial Court No. 9 approved the "Concurso Preventivo" petition filed by Transporte Rafael Calzada S.R.L., reports Infobae. Along with the approval of the petition is the appointment of Francisco Allende, Monti N. Delfor, Villalva Julio as receivers, who will authenticate creditors' claims until June 11, 2004. The receivers will prepare the individual reports after the credit verification process is completed and submit these reports to court on August 10, 2004. After these reports are processed in court, the receivers will prepare the general report and submit it to court on September 23, 2004. The informative assembly, one of the last parts of the reorganization process, will be held on February 14, 2005. CONTACT: Francisco Allende, Monti N. Delfor, Villalva Julio Vergara 1780 Banfield V LEHMANN: Court Decrees Bankruptcy, Names Receiver --------------------------------------------------- V Lehamann will now undergo a bankruptcy process after Buenos Aires Court No. 14 declared it "Quiebra," reports Infobae. Mr. Ruben Joaquin Toytoyndjian will act as the Company's receiver, who will verify creditors' proofs of claim until June 21, 2004. The results of the verification process will be submitted to court on August 24, 2004 via individual reports. These reports, after being process in court, will be consolidated into one general report, which is due for submission on October 5, 2004. Clerk No. 28 assists the court in handling this case, which will close with the liquidation of the Company's assets to repay creditors. CONTACT: Ruben Joaquin Toytoyndjian Luis Saenz Pena 1219 Buenos Aires * ARGENTINA: Puts Use Of Defaulted Bonds In Tax Payments On Hold ---------------------------------------------------------------- Through a Presidential Decree published Thursday in the Official Bulletin, the Argentine government has suspended a program that allowed some Argentine holders of certain bonds issued before its December 2001 default to use them to pay income taxes, reports Dow Jones. Citing the need for "equitable" treatment of all holders of its defaulted debt, the government said that until Argentina has completed its planned debt exchange to restructure some US$100 billion in defaulted debt, for which it will launch a final offer in June, it will suspend the use of fiscal credit certificates, or CCFs, to pay taxes. Under a plan introduced in November 2002, certificates with a face value of ARS80 million were being auctioned each month to holders of various types of bonds issued before August 2001, which could then be used to cancel debts with the federal government. Two months ago, however, the Economy Ministry stopped the auctions, with Thursday's decree giving that decision presidential authority and establishes a time frame under which the auctions will be restored. It is the second suspension in the bonds-for-taxes program, which was first introduced by Economy Minister Domingo Cavallo in 2001 as a face value swap open to all bondholders. ============= B E R M U D A ============= FOSTER WHEELER: Names New Chief Corporate Compliance Officer ------------------------------------------------------------ Foster Wheeler Ltd. (OTCBB: FWLRF) announced Friday that Peter D. Rose has been appointed vice president of Internal Audit and chief corporate compliance officer of Foster Wheeler Inc. Ms. Lisa Fries Gardner, who is currently the vice president and secretary of the company, has been appointed chief governance officer. Ms. Fries Gardner will retain her position as vice president and secretary of the company. "Pete and Lisa have been key members of Foster Wheeler's management team for some time and they are both very well suited to take on these important new responsibilities," said Raymond J. Milchovich, chairman, president and chief executive officer. "These appointments will allow us to better manage the many related compliance and governance functions at our corporate center." As Vice President Internal Audit, Mr. Rose will be responsible for conducting internal audits, and managing the Internal Audit Department. As chief corporate compliance officer, he will be responsible for directing the company's worldwide self- governance activities as well as establishing uniform standards and practices for management testing and certifications of Internal Controls under the Sarbanes-Oxley Act, and assuring compliance with corporate policies. Mr. Rose will be a member of the Disclosure Committee and participate in their activities with respect to the Sarbanes-Oxley Act. As Chief Governance Officer, Ms. Fries Gardner will focus on corporate governance rules and regulations, governance of the Board of Directors and its Committees and implementing continuous improvement in governance policies and practices. She will continue to oversee the Code of Business Conduct and Ethics, including responsibility for the Foster Wheeler Ethics Compliance Helpline. Ms. Fries Gardner will remain a member of the Disclosure Committee and will also continue her oversight of the corporate structure and corporate policies. Foster Wheeler Ltd. is a global company offering, through its subsidiaries, a broad range of design, engineering, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, oil and gas, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA. CONTACT: Foster Wheeler Ltd. Media Contact: Richard Tauberman, 908-730-4444 or Other Inquiries: 908-730-4000 Web site: http://www.fwc.com =========== B R A Z I L =========== EMBRATEL: Calais Again Increases Offer -------------------------------------- Calais Participacoes S.A. ("Calais") filed Thursday an enhanced offer with the U.S. Bankruptcy Court for the Southern District of New York to acquire the common stock of Embratel Participacoes S.A. (NYSE: EMT - News; "Embratel") from MCI, Inc. This modified offer addresses increases the guaranteed immediate payment from $396 million to $470 million and addresses the concerns attributed to MCI's Board of Directors and cited as the grounds for MCI's rejection of Calais' previous offer. The offer also provides an additional $80 million, less any approved break up fee, once Calais acquires the Embratel stock, bringing the value of the transaction to $550 million. "We are confident that there are absolutely no regulatory problems whatsoever," stated a Calais spokesperson, "and today we filed with ANATEL all of the documents related to our consortium, as well as a copy of our offer to MCI." The enhanced offer provides an immediate, non-refundable payment of $470 million plus a reimbursement of a $12.2 million break up fee, if such a fee is approved by the Court. In order to address the MCI Board's concerns about obtaining prior approval from CADE (the Brazilian antitrust authority), the structure of the transaction has been significantly altered to incorporate a form that MCI knows from its own experience has worked in Brazil before -- appointing a person of impeccable credentials and reputation as trustee of an interim trust. A Calais spokesperson stated, "We believe that our offer as modified hereby continues to be vastly superior to the Telmex offer both with respect to price and execution risk. It represents $70 million more in immediate non-refundable payments to MCI which are not subject to any prior regulatory approval. Through the trustee structure, it affords a very high likelihood that Embratel will soon cease to be a management distraction to MCI; it provides insulation from purported liability concerns; and will result in a substantially higher purchase price upon the ultimate acquisition by Calais." On Thursday, April 22, 2004, citing a sales process that was "fundamentally flawed both in its structure and its execution," Calais filed an objection to MCI's proposed sale of the common stock of Embratel to Telefonos de Mexico, S.A. de C.V. (Telmex) (NYSE: TMX - News). In that filing, Calais stated that it has "repeatedly brought to the Debtors offers superior to the one they seek to consummate, and Calais indicated that it would soon submit a revised offer which is substantially higher from a financial point of view, and deals with the Debtors' purported concerns regarding execution risk." This latest enhanced offer accomplishes both of those objectives. "We believe Embratel should be sold to the highest bidder, as in the case of any normal auction," added the Calais spokesperson. Attached is a copy of the offer letter that Calais filed with the Court and sent to MCI late last night. Calais is owned by Geodex Communications S.A. and three of Brazil's leading telecom companies, Brasil Telecom S.A. (symbol: BTM), Telemar Norte Leste S.A. (symbol: TNE) and SP Telecommunicacoes Holding Ltda., a Brazilian unit of Telefonica (symbol: TEF). EMBRATEL: Report Alleges Consortium Will Raise Embratel Rates ------------------------------------------------------------- Days after the Calais consortium raised its bid for Brazil's biggest long-distance carrier Embratel for the fourth time, a report by local daily Folha de Sao Paulo Sunday revealed that Calais is considering increasing rates once their bid for the carrier succeeds, relates Reuters. The report said that police uncovered an internal document by Spain's Telefonica saying that the Embratel acquisition would allow them to raise phone "tariffs to the ceiling." Telefonica, along with Tele Norte Leste Participacoes, Brasil Telecom and Brazilian telecommunications infrastructure maker Geodex make up Calais, which is trying to outbid Mexico's Telmex for a 52% voting stake in Embratel from U.S. operator MCI Inc. However, the report quoted Eduardo Navarro, vice president of strategic planning for Telefonica, as saying the document is invalid as the companies, if they gain control, will have to sell Embratel's long-distance phone concessions anyway. The local daily also managed to reproduce a Telefonica document saying that there would be no objections to its Embratel bid from the Brazilian government, though the document did not say who in government would not object. The final say in the deal is in the hands of Brazil's independent telecommunications regulator Anatel and the Cade antitrust agency, which must both approve the purchase. According to Folha, the document also said the companies would gain by eliminating discounts offered by Embratel, thus reducing competition in the market. On Friday, Calais improved its offer for Embratel, by guaranteeing that MCI would receive at least $470 million up front, even if the purchase is rejected by regulators, out of its $550 million bid. The improved offer also included other terms it hoped would address MCI's concerns that the purchase would be rejected on antitrust grounds in Brazil. EMBRATEL: Calais Denies Report Of Rate Hike Plans ------------------------------------------------- In a statement, the consortium bidding for Brazilian long- distance carrier Embratel has denied a report by local daily Folha de Sao Paulo Sunday that it plans to raise rates once it acquires the country's largest long distance operator, says Reuters. Calais denied in its statement every point made in the Folha report, which claimed that police had found an internal document by Spain's Telefonica, one of Calais' members, which said the purchase would allow the consortium's to raise phone "tariffs to the ceiling." "Calais repudiates the insinuations that it is acting in an illegal way and reaffirms its commitment to act to preserve competition in the telecommunications market," Calais said in its statement. It said the document had been obtained illegally. According to the statement, Calais only has eyes for Embratel's data transmission and corporate client business. Geodex would then take care of the rest of Embratel's operations in a completely independent manner, it said. The consortium also denied Folha's claims that a Telefonica document it reproduced says the Brazilian government would pose no objection to its acquisition of the operator, saying the government had been informed of its plans but it would only make a judgment after the buyer has been decided. The purchase needs the approval of both the country's independent telecommunications regulator Anatel and the Cade anti-trust agency. Telefonica, along with Tele Norte Leste Participacoes, Brasil Telecom and Brazilian telecommunications infrastructure maker Geodex make up Calais, which is trying to outbid Mexico's Telmex for a 52% voting stake in Embratel from U.S. operator MCI Inc. =========== M E X I C O =========== SAVIA: Shares Suspended After Loss ---------------------------------- The Mexican Stock Exchange suspended Friday the trading in Mexican agro-technology conglomerate Savia after its shares lost 21.24 percent to MXN3.30 and said they would remain suspended until "the company divulges information about relevant events," according to Reuters. This comes after Savia's stock (SAVIAA) surged close to 170 percent between April 16 and April 22 on unusually high volume, although the company repeatedly denied it had any relevant news. The stock exchange did not suspend trading in Savia during the rally. "It looks like people are rushing to get out," one trader said. Another said, "There have been rumors that the company was going to delist their shares." "Another rumor is that they have more cash than anyone thought." Other traders said most of their clients had been buying based on rumors, while some were betting the stock would continue its skyrocketing. In the past week, daily share volume has been steadily above 3 million, compared to recent months, when it was well below half a million. ============= U R U G U A Y ============= UTE: To Put 70MW Contract Bidding Rules Forward ----------------------------------------------- The bidding rules for a contract to supply 70 MW to Uruguay will be put forward by the country's state power company UTE on April 26, BNamericas reports, citing local daily El Pais. The daily added that the contract will be awarded by the company before the existing 70MW contract with Brazil expires on May 3. According to the report, UTE President Ricardo Scaglia said prospective suppliers of the 70MW can be hydro, thermo or mixed sources and the cost must be less than US$30/MWh. However, how much Brazil will charge the company for transporting the power through the Rivera-Livramento station on the border between the two countries is yet to be determined. It can be remembered that up to the present day, Brazil has not charged Uruguay for transport through Rivera-Livramento as repayment for Uruguayan power supplies during Brazil's energy crisis in 2001. The contracts with Brazil are a stopgap solution designed to lower generation costs in Uruguay and make up for an energy shortfall after Argentina suspended export contracts for 338MW in March. ================= V E N E Z U E L A ================= PDVSA: Hovensa Sells $50.7M in '22 Bonds ---------------------------------------- Venezuelan state oil company Petroleos de Venezuela SA (Pdvsa) said Friday that some US$50.66 in 2022 bonds with a 5.875% coupon have been sold by its Hovensa refining joint venture with U.S. oil firm Amerada Hess, reports Reuters. Sold at face value, the bonds will be used for the early payment of a US$65 million debt owed by Hovensa due in 2006. Hovensa, a large supplier of gasoline and other refined products to the U.S. East Coast, is 50% owned by Pdvsa and Amerada Hess. *********** 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 prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is $575 per half-year, delivered via e-mail. 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