/raid1/www/Hosts/bankrupt/TCRLA_Public/040614.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
Monday, June 14, 2004, Vol. 5, Issue 116
Headlines
A R G E N T I N A
AGENCIA MARITIMA: Judge Approves Involuntary Bankruptcy
CABLEVISION: Clarifies Participation in Liberty Media Spin-Off
CENTRAL TERMICA: Prepares for Reorganization
EDEMSA: Parent Will Finalize Sale to Local Investors
EDIFICIO TORRE ALSINA: Bankruptcy Initiated on Court Orders
G. CACERES Y CIA: Creditor's Bankruptcy Motion Approved
GRUPO LIDER ASESORES: Court Issues Bankruptcy Ruling
IMPSAT: Posts US$13.4 Million 1Q04 EBITDA
LAHER MERCANTIL: Initiates Bankruptcy Proceedings
PARMALAT ARGENTINA: New Bidder Surfaces
PIRAMIDE: Liquidates Assets to Pay Debts
RESIDENCIA GERIATRICA: Schedule for Reports Set
WORL TRADE MED: Enters Bankruptcy on Court Orders
* Argentina Submits New Debt-Restructuring Plan With US SEC
B E R M U D A
FOSTER WHEELER: SEC Declares Equity for Debt Exchange Effective
LORAL SPACE: Appoints New Business Development VP
B O L I V I A
BOLIVIA: IMF Approves $126M Disbursement, Arrangement Extension
B R A Z I L
EMBRATEL: Brazil Submits Formal Offer for Star One
C H I L E
AES GENER: Solvency Rating Improves to BBB+
TELEFONICA CTC: Shareholders to Meet With Telefonica Reps
TELEFONICA CTC: Allocates $70M for Broadband
C O L O M B I A
* World Bank Approves $280M For Colombia
M E X I C O
HYLSAMEX: Mulls Capital Increase to Improve Financial Situation
INDUSTRIAS UNIDAS: S&P Affirms Ratings, Removes from CreditWatch
P E R U
AERO CONTINENTE: To Deal With Legal Battle Against U.S. Alone
T R I N I D A D & T O B A G O
BWIA: Faces Lawsuit After Detaining Passengers
- - - - - - - - - -
=================
A R G E N T I N A
=================
AGENCIA MARITIMA: Judge Approves Involuntary Bankruptcy
-------------------------------------------------------
Agencia MarĄtima Sudamericana S.A. was declared bankrupt after
Judge Di Noto of Court No. 15 granted the petition of Mr.
Ricardo Baez for the Company's liquidation. Argentine daily La
Nacion reports that Mr. Baez has claims totaling US$2,715.09
against the shipping company.
The court assigned Ms. Mabel Lopez to supervise the liquidation
process as trustee. She will validate creditors' proofs of
claims until September 2, 2004.
CONTACT: Agencia MarĄtima Sudamericana S.A.
Reconquista 538
Buenos Aires
Ms. Mabel Lopez, Trustee
Murguiondo 3607
Buenos Aires
CABLEVISION: Clarifies Participation in Liberty Media Spin-Off
--------------------------------------------------------------
Cablevision SA, an Argentine cable television operator, informed
Thursday that it has not been fully included in the spin-off of
the international cable-TV assets by its major shareholder
Liberty Media Corp., relates Dow Jones Newswires. Liberty Media
Corp. owns 50% of Cablevision through VLG Argentina LLC, while
Hicks Muse Tate & Furst owns the other 50%.
Liberty Media Corp. said in March that it was spinning off its
international operations to its shareholders through a new
publicly traded company called Liberty Media International.
In a statement to the local stock exchange, Cablevision said
Liberty Media International Holdings LLC, previously known as
Liberty Media International, has transferred 78.2% of its
"economic rights" in VLG Argentina LLC to Liberty Media Corp. -
the original company. However, it also appeared from
Cablevision's statement that the Argentine company's shareholder
is still considered part of the newly formed international
group.
"This operation, as it relates only to certain economic rights,
doesn't imply a change in control in VLG Argentina LLC,"
Cablevision said.
CENTRAL TERMICA: Prepares for Reorganization
--------------------------------------------
Buenos Aires Judge No. 4, with assistance from Clerk No. 8, has
issued a resolution opening the reorganization of Central
Termica Sorrento S.A. The pronouncement authorizes the Company
to begin drafting a settlement proposal with its creditors in
order to prevent the liquidation of the Company.
The reorganization allows Central Termica to retain control of
its assets subject to certain conditions imposed by Argentine
law and the oversight of the court appointed trustee.
Accounting firm Estudio Rosen Mario y Jablonsky Leonardo will
serve as trustees during the course of the reorganization. The
firm will be validating creditors' proofs of claims until August
6, 2004.
The results of the claims verification will be presented in
court as individual reports on September 20, 2004. The trustee
is also obligated to give the court a general report of the case
on November 2, 2004. The general report summarizes events
relevant to the reorganization and provides an audit of the
company's accounting and business records.
Central Termica will present the completed settlement proposal
to its creditors during the informative assembly scheduled on
June 8, 2005.
CONTACT: Estudio Rosen Mario y Jablonsky Leonardo, Trustees
Hipolito Yrigoyen 2699
Buenos Aires
EDEMSA: Parent Will Finalize Sale to Local Investors
----------------------------------------------------
EDF, France's state-controlled power Company, is set to sell its
interest in troubled Argentine energy distributor Edemsa to a
group of local businessmen. Local news source Infobae states
that Mr. Jos Angulo, Mr. Jacques Matas, Mr. Omar Alvarez and an
unidentified foreign investor would pay US$50 mln for EDF's
stake in Edemsa. The report adds that the opposition of
international banks to which EDF owes US$100 mln in relation to
Edemsa prevented the completion of the deal some weeks ago.
EDF, through the Sodemsa consortium, purchased Edemsa for US$237
mln in a 1998 privatization. Edemsa has over 1,000km of high
voltage transmission lines, over 12,000km of distribution lines,
and a 110,000sq. km concession area.
Edemsa has been buffeted by the country's rates freeze in recent
months. The pesofication of these rates as well as the end of
dollarization has also affected the company's bottom line.
EDIFICIO TORRE ALSINA: Bankruptcy Initiated on Court Orders
-----------------------------------------------------------
Edificio Torre Alsina S.A. will enter bankruptcy protection
after Buenos Aires Court No. 3, with the assistance of Clerk No.
5, ordered the Company's liquidation. The bankruptcy order
effectively transfers control of the Company's assets to the
court-appointed trustee who will supervise the liquidation
proceedings.
Infobae reports that the court selected Ms. Carina Silvia
Bianchi as trustee. She will be verifying creditors' proofs of
claim until the end of the verification phase on August 9, 2004.
Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the company's accounting
and business records. The individual reports will be submitted
on September 21, 2004 followed by the general report, which is
due on November 3, 2004.
CONTACT: Edificio Torre Alsina S.A.
Posadas 1516
Buenos Aires
Ms. Carina Silvia Bianchi, Trustee
Paraguay 729
Buenos Aires
G. CACERES Y CIA: Creditor's Bankruptcy Motion Approved
-------------------------------------------------------
Judge Vassallo of Buenos Aires Court No. 5 declared local
construction company G. Caceres y Cia S.R.L. bankrupt, says La
Nacion. The ruling comes in approval of the bankruptcy petition
filed by the Company's creditor, Mr. Jose Luis Arocha for
nonpayment of US$5,313.92 in debt.
Clerk No. 10, Dr. Djivaris assists the court on the case, which
will conclude with the liquidation of the Company's assets. The
Company's trustee, Mr. Gustavo Vignale, will examine and
authenticate creditors' claims until August 27, 2004. This is
done to determine the nature and amount of the Company's debts.
Creditors must have their claims authenticated by the trustee by
the said date in order to qualify for the payments that will be
made after the Company's assets are liquidated.
CONTACT: G. Caceres y Cia S.R.L.
Avenida Forest 5160
Buenos Aires
Mr. Gustavo Vignale, Trustee
Vuelta de Obligado 2717
Buenos Aires
GRUPO LIDER ASESORES: Court Issues Bankruptcy Ruling
----------------------------------------------------
Grupo LĄder Asesores de Seguros S.A. entered bankruptcy after
Judge Gonzalez of Buenos Aires Court No. 8 approved a bankruptcy
motion filed by Sancor Cooperativa de Seguros Ltda., reports La
Nacion. The Company's failure to pay US$45,000 in debt prompted
the creditor to file the petition.
Working with Dr. Lezaeta, the city's Clerk No. 15, the Company
assigned Mr. Pedro Mazolla as trustee for the bankruptcy
process. The trustee'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
trustee before September 28, 2004. The Insurance 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: Grupo Lider Asesores de Seguros SA
Avenida Leandro N. Alem 690
Buenos Aires
Mr. Pedro Mazolla, Trustee
Cramer 1759
Buenos Aires
IMPSAT: Posts US$13.4 Million 1Q04 EBITDA
-----------------------------------------
Impsat Fiber Networks, Inc. ("Impsat" or the "Company"), a
leading provider of integrated broadband data, Internet and
voice telecommunications services in Latin America, announced
its results for the first quarter of 2004. All figures are in
U.S. dollars.
(First quarter 2003 results discussed below are those of the
Company before "fresh start" reporting required after its
emergence from Chapter 11 at the end of the first quarter of
2003. As a consequence of "fresh start" reporting, the Company's
financial results after its Chapter 11 emergence are not
comparable to those of prior periods.)
Total revenues for the first quarter of 2004 were $55.1 million,
$ 3.7 million or 7.1% more than revenues of the previous
quarter. Operating expenses totaled $51.8 million, a decrease of
$10.1 million, or 16.3%, compared to operating expenses for the
corresponding period of 2003.
EBITDA for the first quarter of 2004 totaled $13.4 million, an
increase of $5.1 million as compared to EBITDA for the previous
quarter. Impsat Brazil continues to record positive EBITDA.
First quarter 2004 EBITDA totaled $0.7 million as compared to
$0.6 million of the fourth quarter of 2003.
Impsat recorded a net loss of $6.5 million for the three months
ended March 31, 004, compared to net loss of $9.6 million for
the three months ended December 31, 2003.
At March 31, 2004, Impsat's total indebtedness was $264.1
million, compared to $267.5 million at March 31, 2003.
FIRST QUARTER 2004 RESULTS
Overview
Impsat Fiber Networks, Inc. is pleased to report its results of
operations for the first quarter of 2004.
During the first quarter of 2004, the Company's operating
expenses decreased without any reduction in revenues, as
compared to the quarter ended December 31, 2003. During the
first three months of 2004, operating expenses totaled $51.8
million, a 3.2% decrease from the quarter ended December 31,
2003.
Commenting on the results, Ricardo Verdaguer, Chairman and CEO
of Impsat, stated: "Impsat continues to enhance operating
efficiency. During the first quarter of 2004, we continued with
our efforts to improve operational margins and reduce our
expenses.
We are encouraged by the improved demand for our services
throughout the region. This, coupled with the improving global
telecom sector is positive for our continued good performance."
Revenues
Total net revenues for the first quarter of 2004 were $55.1
million; a 7.1%, or $3.7 million, increase as compared to
revenues for the three months ended December 31, 2003.
This increase in revenues over the two most recent fiscal
quarters is the result of certain factors that negatively
affected revenues in the fourth quarter of 2003. Primarily,
during the fourth quarter of 2003, revenues were negatively
affected by the Company's previously reported settlement of a
series of disputes with Global Crossing Ltd. (Global Crossing)
and certain of its subsidiaries. These effects reduced the total
net revenues for that fourth quarter by approximately $3.1
million.
Compared to the three months ended March 31, 2003, our net
revenues decreased $1.0 million, or 1.8%. However, revenues for
the first quarter of 2003, included $1.1 million corresponding
to deferred revenues from the sale of IRUs that the Company was
formerly recognizing as revenues over the life of the IRU.
Starting in the second quarter of 2003, as a consequence of the
application of fresh start reporting, the Company ceased
recognition of these deferred revenues. Also, this cause
affected principally our broadband and satellite line of
business.
Excluding the effect of this event, revenues for the first
quarter of 2004 would have increased by $0.1 million as compared
to revenues for the first quarter of 2003.
Telephony revenues increased by $1.0 million, or 25.3%, during
the first quarter of 2004 as compared to the same quarter in
2003 because of increased delivery of switched voice services to
corporate customers in Argentina, increased traffic, new
customers and new products in Peru, and the positive effect on
revenues of certain consumer-price-index-based adjustments to
certain of Company's peso-denominated contracts in Argentina
pursuant to Argentina's February 2002 "pesification" law.
Three Months Ended March 31,
---------------------------
2003 %change(1) 2004
--------- --------- ------
(dollar amounts in thousands)
Broadband and satellite $41,382 (4.4) $39,573
Value added services (2) 4,781 (12.0) 4,206
-------- --------
Internet 5,733 4.4 5,984
Telephony 4,106 25.3 5,145
-------- --------
Total net revenues from services $56,002 (2.0) $54.908
======== ========
(1) Percentage increase (decrease) in first quarter of 2004
compared to first quarter of 2003.
(2) Includes data center services, systems integration and
other information technology solutions services.
Operating Expenses
Operating expenses for the three-month period ended March 31,
2004 totaled $51.8 million, a $10.1 million, or 16.3%, decrease
from operating expenses for the corresponding period of 2003.
Total direct costs totaled $24.0 million, a decrease of $2.3
million, or 8.8%, as compared to direct costs for the first
quarter of 2003. This decrease is mainly due to lower other
direct costs and leased capacity costs.
Other direct costs for the first quarter of 2004 totaled $3.8
million, which represented a decrease of $0.9 millions or 20%
compared to other direct cost for the first quarter of 2003.
Other direct costs principally include sales commissions paid to
Impsat's sales force and to third-party sales representatives;
provision for doubtful accounts; and licenses and other fees.
Leased capacity costs for the first quarter of 2004 totaled
$15.8 million, which represented a decrease of $1.6 million or
9.3% compared to the first quarter of 2003. For the first
quarter of 2004, satellite capacity costs decreased by $1.3
million to $5.9 million compared to satellite costs of $7.2
million for the corresponding period in the previous year. This
reduction reflects favorable renegotiation of certain capacity
agreements.
Salaries and wages for the first quarter of 2004 totaled $12.2
million, an increase of $1.5 million, or 13.8%, compared to the
first quarter of 2003. This increase was, in part, related to
the appreciation of the Brazilian Real and the Argentine peso in
comparison to the same period in the previous year that was
partially offset by a 2.4% decrease in headcount.
Selling, general and administrative expenses totaled $5.5
million for the first quarter of 2004, a decrease of $0.1
million, or 0.9%, compared to the first quarter of 2003. SG&A
expenses for the first quarter of 2004 declined due principally
to overall cost control measures.
Depreciation and amortization expenses for the first quarter of
2004 totaled $10.2 million, a decrease of $9.2 million (or
47.5%) compared to depreciation and amortization for the first
quarter of 2003. The decrease in depreciation and amortization
is primarily due to the application of fresh start accounting.
Interest Expense, Net
Net interest expense for the three months ended March 31, 2004
totaled $4.6 million, consisting of interest expense of $4.9
million and interest income of $0.3 million. This represented an
increase of $2.9 million or 170.5 % as compared to the net
interest expense for first quarter of 2003. Net interest expense
increased principally because of "payment in kind" accretion to
the Company's outstanding senior guaranteed convertible notes
and certain indebtedness of its subsidiaries, which collectively
represented $3.3 million of the total interest expense for the
three months ended March 31, 2004. Impsat's total indebtedness
at March 31, 2004 was $264.1 million, as compared to $267.5
million at March 31, 2003.
Effect of Foreign Exchange Losses and Gains
The Company recorded a net loss on foreign exchange for the
first quarter of 2004 of $4.4 million, compared to a net gain on
foreign exchange of $10.0 million for the three months ended
March 31, 2003. The net loss on foreign exchange was primarily
due to the depreciation during the first quarter of 2004 of the
Venezuelan bolivar and the Brazilian real on the book value of
the Company's monetary assets and liabilities in Venezuela and
Brazil. Impsat Argentina recorded a net loss on foreign exchange
for the first quarter of 2004 of $0.6 million compared to a net
gain on foreign exchange for the first quarter of 2003 of $0.6
million. Impsat Brazil recorded a net loss on foreign exchange
for the first quarter of 2004 of $1.8 million, compared to a net
gain of $9.6 million for the first quarter of 2003.
Operating (Loss) Income and Net (Loss) Income
For the three months ended March 31, 2004, Impsat recorded a net
loss of $6.5 million, compared to a net loss of $9.6 million for
the three months ended December 31, 2003. For the first quarter
of 2004, Impsat recorded operating income of $3.2 million,
compared to operating loss of $2.0 for the previous quarter and
operating loss of $5.8 million for the first three months of
2003.
EBITDA
The Company achieved positive EBITDA of $13.4 million during the
first quarter of 2004. This represents a $5.1 million, or 62%,
increase over EBITDA from the previous quarter.
As compared to the same period of 2003, EBITDA slightly
decreased by 1% and totaled $13.5 million.
Impsat Brazil continued to post positive EBITDA, with EBITDA for
the first quarter of 2004 totaling $0.7 million.
The Company's EBITDA margin reached 24.3% during the first
quarter of 2004, compared to 24.1% in the corresponding period
of 2003.
Liquidity and Capital Resources
At March 31, 2004, we had total cash, cash equivalents and
trading investments of $60.3 million, compared to $61.9 million
at March 31, 2003.
Non-GAAP Financial Measures
The Company presents EBITDA as a supplemental measure of
performance because it believes that EBITDA provides a more
complete understanding of our operating performance before the
impact of investing and financing transactions. EBITDA and
EBITDA margins are among the more significant factors in
management's evaluation of Company-wide performance.
EBITDA can be computed by adding depreciation and amortization
to operating income (loss), excluding gains on extinguishment of
debt. The reconciliation of EBITDA to Operating Income (Loss) is
presented in Appendix I Supplemental Financial Information in
this Press Release. EBITDA (earnings before interest, taxes,
depreciation, amortization, and non-recurring items) should not
be considered as an alternative to any measure of operating
results as promulgated under accounting principles generally
accepted in the United States such as operating income or net
income, nor should it be considered as an indicator of our
overall financial performance.
EBITDA does not fully consider the impact of investing or
financing transactions as it specifically excludes depreciation
and interest charges, which should also be considered in the
overall evaluation of results. Moreover, our method for
calculating EBITDA may differ from the method utilized by other
companies and therefore comparability may be limited.
IMPSAT Fiber Networks, Inc. is a leading provider of private
telecommunications network and Internet services in Latin
America. The Company offers integrated data, voice, data center
and Internet solutions, with an emphasis on broadband
transmission, including IP/ATM switching, DWDM, and non-zero
dispersion fiber optics.
IMPSAT provides telecommunications, data center and Internet
services through our networks, which consist of owned fiber
optic and wireless links, teleports, earth stations and leased
satellite links. The Company owns and operates 15 metropolitan
area networks in some of the largest cities in Latin America,
including Buenos Aires, Bogota, Caracas, Quito, Guayaquil, Rio
de Janeiro and Sao Paulo. It has also deployed fourteen
facilities to provide hosting services.
IMPSAT currently provides services to nearly 2,800 national and
multinational companies, financial institutions, governmental
agencies, carriers, ISPs and other service providers throughout
the region. The Company has operations in Argentina, Colombia,
Brazil, Venezuela, Ecuador, Chile, Peru and the United States
and also provide our services in other countries in Latin
America. More information about the company is available at at
www.impsat.com
To see Financial Statements:
http://bankrupt.com/misc/Impsat_Fiber.htm
CONTACT: Impsat Fiber Networks, Inc.
Mr. Hector Alonso
Chief Financial Officer
Mr. Facundo Castro
Investor Relations
Tel: 54.11.5170.3700
Web Site: www.impsat.com
LAHER MERCANTIL: Initiates Bankruptcy Proceedings
-------------------------------------------------
Buenos Aires Court No. 3 declared Laher Mercantil S.A.
"Quiebra," reports Infobae. Clerk No. 6 assists the court on the
case, which will close with the liquidation of the Company's
assets to repay creditors.
Accounting firm, Estudio Sastre, Lostao, Romano, who has been
appointed as trustee, will verify creditors' claims until July
02, 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
September 07, 2004, followed by the general report on October
20, 2004.
CONTACT: Estudio Sastre, Lostao and Romano, Trustees
Tucuman 1539
Buenos Aires
PARMALAT ARGENTINA: New Bidder Surfaces
---------------------------------------
Servicios Portuarios is the new candidate in the competition for
the Argentine assets of Parmalat Finanziaria S.p.A. Even though
the company, which acquired the food products brand La
Vascongada last year, does not have millions of dollars as
private equity fund Dolphin or has a global operation as Arla
Foods, it is believed to be one of the candidates with higher
chances during the next stage of the sale process.
Now that the submission of preliminary bids from interested
investors has been completed, the Italian parent company will
make an initial selection. It will select a group of candidates,
based on the reasonability of the offer and the financial
backing of the bidders, and will ask them for further
information. Sources from the local dairy business pointed
Servicios Portuarios is better known in Italy than locally.
The firm operates three ports in Argentina. It has also acquired
a flour mill and a slaughter house. In addition, the company
owns a hotel in its hometown and acquired La Vascongada last
year.
In this way, Servicios Portuarios has set up a conglomerate that
goes beyond the port activity and is starting to gain relevance
in the food market.
Servicios Portuarios is currently outsourcing the making of La
Vascongada products, but it plans to start producing on its own,
once it has purchased a couple of plants.
PIRAMIDE: Liquidates Assets to Pay Debts
----------------------------------------
Piramide Corp S.R.L. will begin winding up its operations and
selling its assets following the pronouncement of the city's
Court No. 21 that the Company is bankrupt, Infobae reports. The
bankruptcy ruling places the Company under the supervision of
court-appointed trustee, Ms. Patricia Monica Narduzzi. The
trustee will verify creditors' proofs of claim until October 22,
2004. The validated claims will be presented in court as
individual reports on December 13, 2004.
Ms. Narduzzi will also submit a general report, containing a
summary of the Company's financial status as well as relevant
events pertaining to the bankruptcy, on March 8, 2005. The
bankruptcy process will end with the disposal of company assets
in favor of its creditors.
CONTACT: Ms. Patricia Monica Narduzzi, Trustee
Lavalle 1675
Buenos Aires
RESIDENCIA GERIATRICA: Schedule for Reports Set
-----------------------------------------------
Ms. Susana H. Vacchelli, the trustee assigned to supervise the
liquidation of Residencia Geriatrica Bauness S.R.L., will submit
on August 27, 2004 the validated individual claims for court
approval. These reports explain the basis for the accepted and
rejected claims. She will also submit a general report on
October 8, 2004.
Infobae reports that Buenos Aires Court No. 23, assisted by
Clerk No. 45, has jurisdiction over this bankruptcy case.
CONTACT: Residencia Geriatrica Bauness S.R.L.
Bauness 2112
Buenos Aires
Ms. Susana H Vacchelli, Trustee
Montevideo 571
Buenos Aires
WORL TRADE MED: Enters Bankruptcy on Court Orders
-------------------------------------------------
Buenos Aires Court No. 20 declared Worl Trade Med S.A. bankrupt
after the Company defaulted on its debt payments. The bankruptcy
order effectively places the Company's affairs as well as its
assets under the control of court-appointed trustee, Ms. Nora
Cristina Roger.
As the trustee, Ms. Roger is tasked with verifying the
authenticity of claims presented by the Company's creditors. The
verification phase is ongoing until August 26, 2004.
Following claims verification, the trustee will submit the
individual reports based on the forwarded claims for final
approval by the court on October 7, 2004. A general report will
also be submitted on November 19, 2004.
Infobae reports that Clerk No. 40 assists the court on this
case, which will end with the disposal of the company's assets
in favor of its creditors.
CONTACT: Ms. Nora Cristina Roger, Trustee
Hipolito Yrigoyen 1349
Buenos Aires
* Argentina Submits New Debt-Restructuring Plan With US SEC
-----------------------------------------------------------
Argentina announced Thursday that it has submitted its revised
US$100 billion debt restructuring proposal to the U.S.
Securities and Exchange Commission, reports Reuters. According
to an Economy Ministry press statement, Argentina had presented
"the characteristics of the different instruments to be issued
in the debt exchange."
The required report on Argentina's political and economic
situation in the last years will be sent to the SEC later in the
month, the statement added. According to the government's
previous outline, the exchange will include "a nominal debt
reduction and three types of bonds, plus a unit linked to actual
economic growth."
Argentina is seeking a 75% reduction in the net present value of
some US$100 billion in debt. Argentine and foreign creditors
have rejected the offer, but President Nestor Kirchner has said
there will be no further negotiations.
=============
B E R M U D A
=============
FOSTER WHEELER: SEC Declares Equity for Debt Exchange Effective
---------------------------------------------------------------
Foster Wheeler Ltd. (OTCBB: FWLRF) announced Thursday that its
registration statement relating to its proposed equity for debt
exchange offer has been declared effective by the Securities and
Exchange Commission (SEC). Foster Wheeler intends to make a
further announcement when the offer is launched.
The dealer manager for the exchange offer and consent
solicitation is Rothschild Inc., 1251 Avenue of the Americas,
51st floor, New York, New York 10020. Contact Stephen Ledoux or
Daniel Gilligan of Rothschild at 212-403-3710 and 212-403-5222,
respectively, with any questions on the exchange offer.
Investors and security holders are urged to read the following
documents filed with the SEC, as amended from time to time,
relating to the proposed exchange offer because they contain
important information:
(1) the registration statement on Form S-4 (File No. 333-107054)
and (2) the Schedule TO (File No. 005-79124), when it is filed.
These and any other documents relating to the proposed exchange
offer, when they are filed with the SEC, may be obtained free at
the SEC's Web site at www.sec.gov. or from the information agent
as noted above.
The foregoing reference to the proposed registered exchange
offer and any other related transactions shall not constitute an
offer to buy or exchange securities or constitute the
solicitation of an offer to sell or exchange any securities in
Foster Wheeler Ltd. or any of its subsidiaries.
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: Ms. Maureen Bingert
Media Contact
908-730-4444
Mr. John Doyle
Investor Contact
908-730-4270
Other Inquiries
908-730-4000
Web Site: www.fwc.com
LORAL SPACE: Appoints New Business Development VP
-------------------------------------------------
Space Systems/Loral (SS/L) announced Thursday that Mr. Robert
Prevaux has been named vice president, business development and
will assume SS/L's marketing and sales responsibilities for the
National Aeronautics and Space Administration (NASA), the
National Oceanic and Atmospheric Administration (NOAA) and other
civil agencies. He will report to Arnold Friedman, senior vice
president of marketing and sales.
Mr. Prevaux, a 27-year veteran of the space and
telecommunications industries, was most recently executive
director for SS/L's satellite radio programs, responsible for
complete program management of mobile broadcasting satellites
including MBSAT and the Sirius Satellite Radio constellation. In
addition to managing large satellite programs, he has also
participated in the design and implementation of satellite
systems, communications payloads and industrial
telecommunications systems. Prior to joining SS/L, he was
president of CTS Inc., an aerospace services company.
"In addition to focusing on SS/L's heritage civil government
programs, such as GOES meteorological satellites for NOAA and
power systems for the International Space Station, Robert will
work to expand the company's customer base in additional key
government-related markets," said Mr. Friedman. "He brings
important experience and relationships to SS/L that will
continue to foster the company's growth in government programs."
Mr. Prevaux holds a bachelor's degree in electrical engineering
from the University of Michigan and is a member of the American
Institute of Aeronautics and Astronautics (AIAA) and the
Institute of Electrical and Electronics Engineers (IEEE). In
2002, SS/L's Sirius program team, led by Mr. Prevaux, was
inducted into the Space Foundation Technology Hall of Fame for
contributions to satellite radio.
SS/L manufactured five GOES (Geostationary Operational
Environmental Satellite) satellites under contract to NASA for
delivery to NOAA. In 2003, SS/L was awarded one of the advanced
architecture study contracts for NOAA's next series of
spacecraft, GOES-R. Recently, SS/L delivered the MTSAT-1R dual-
use satellite to Japan's space center in Tanegashima, Japan. The
meteorological and air traffic control satellite was built for
the Japanese Meteorological Agency and the Japanese Civil
Aviation Bureau (JCAB), both of the Ministry of Land,
Infrastructure and Transport (MLIT).
Space Systems/Loral, a subsidiary of Loral Space &
Communications (OTCBB: LRLSQ), is a premier designer,
manufacturer, and integrator of powerful satellites and
satellite systems. SS/L also provides a range of related
services that include mission control operations and procurement
of launch services. Based in Palo Alto, Calif., the company has
an international base of commercial and government customers
whose applications include broadband digital communications,
direct-to-home broadcast, defense communications, environmental
monitoring, and air traffic control. SS/L satellites have
amassed more than 1000 years of reliable on-orbit service. SS/L
is ISO 9001:2000 certified. For more information, visit
www.ssloral.com.
Loral Space & Communications is a satellite communications
company. In addition to Space Systems/Loral, through its Loral
Skynet subsidiary, Loral owns and operates a fleet of
telecommunications satellites used to broadcast video
entertainment programming, and for broadband data transmission,
Internet services and other value-added communications services.
CONTACT: Mr. John McCarthy
Loral Space & Communications
212/697-1105\
Web Site: www.loral.com
=============
B O L I V I A
=============
BOLIVIA: IMF Approves $126M Disbursement, Arrangement Extension
---------------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF) on
June 10 completed the third review of Bolivia's performance
under a one-year, SDR 85.75 million (about US$126 million)
Stand-By Arrangement that was approved on April 2, 2003. This
decision enables the release of SDR 10.72 million (about US$16
million) to Bolivia, which would bring total disbursements under
the program to SDR 75.04 million (about US$110 million).
In completing the review, the Executive Board approved Bolivia's
request for waivers for the nonobservance of performance
criteria. In addition, the Executive Board approved to extend
the Stand-By Arrangement until December 31, 2004, and augmented
access to Fund resources by SDR 42.89 million (about US$63
million) to support the government's 2004 economic policies.
Following the Executive Board discussion on Bolivia, Anne
Krueger, First Deputy Managing Director and Acting Chair, said:
"Bolivia's economy is gradually picking up, with moderate growth
projected for this year and the current account in small
surplus, while inflation remains subdued. The macroeconomic and
financial situation has also stabilized in recent weeks, as the
Bolivian authorities, with strong support from the international
community, work to address social and political concerns while
pursuing a challenging agenda of adjustment and reform.
"The authorities' program is based on a four-pronged strategy:
(i) a budgetary framework to limit the 2004 fiscal deficit to
available noninflationary financing; (ii) financing assurances
from the international community that would minimize
nonconcessional credits and avoid central bank financing of the
government; (iii) measures to strengthen the financial sector;
and (iv) a process towards implementing a viable hydrocarbons
strategy.
"The authorities aim to reduce the fiscal deficit this year
through measures already implemented or approved by Congress,
and to implement reforms that will permit timely disbursements
of concessional funds from bilateral donors and the multilateral
institutions. The government is determined to monitor
developments closely to assure that fiscal targets are met, so
as to preserve hard-won financial stability. While some of the
measures are temporary, they should provide breathing space for
the government to prepare medium-term tax and expenditure
reforms. At the same time, the government plans to continue to
increase pro-poor spending and the national dialogue to build
domestic consensus for its reform agenda.
"The authorities have made progress in implementing an action
plan to address weak banks and reduce financial sector
vulnerabilities, and have established funds for both financial
and corporate restructuring. Moreover, they have sought to
minimize domestic debt roll-over risk by allowing interest rates
to be more responsive to market liquidity conditions and have
recently begun to place domestic paper in the markets again.
"Looking further ahead, broadening and consolidating the
national consensus for policies to support growth and poverty
reduction, including through the efficient development of
Bolivia's rich hydrocarbon resources, will enable the government
to develop a medium-term program that could form the basis for a
revised Poverty Reduction Strategy Paper later this year, and a
possible Poverty Reduction Growth Facility," Ms. Krueger said.
CONTACT: IMF EXTERNAL RELATIONS DEPARTMENT
International Monetary Fund
700 19th Street, NW
Washington, D.C. 20431 USA
Public Affairs: 202-623-7300 - Fax: 202-623-6278
Media Relations: 202-623-7100 - Fax: 202-623-6772
Web Site: www.imf.org
===========
B R A Z I L
===========
EMBRATEL: Brazil Submits Formal Offer for Star One
--------------------------------------------------
The Brazilian government submitted to Telefonos de Mexico
(Telmex) Wednesday its official proposal of a "golden share"
accord that will allow the government to have an influence in
Star One, an Embratel unit that operates the satellites used by
the army to send information.
Brazilian long-distance carrier Embratel Participacoes SA, which
was recently acquired by Mexican businessman Carlos Slim's
Telmex for US$400 million, owns 80% of Star One.
The details of the proposal will not be made public until the
minority shareholders of Telmex, owned by businessman Carlos
Slim, become familiar with the Brazilian government's offer.
CONTACT: Silvia M.R. Pereira, Investor Relations
Tel: (55 21) 2121-9662
Fax: (55 21) 2121-6388
E-mail: silvia.pereira@embratel.com.br
invest@embratel.com.br
=========
C H I L E
=========
AES GENER: Solvency Rating Improves to BBB+
-------------------------------------------
Chilean credit rating agency Feller Rate upgraded its solvency
rating on local power generator AES Gener to BBB+ from BBB- and
assigned a stable outlook, taking the utility off creditwatch
positive. Citing a Feller Rate statement, Business News Americas
reports that the rating action follows AES Gener's positive
development in its financial restructuring plan.
At the end of May, AES Gener repurchased bonds issued on the
local market, and after accounting for all measures taken to
date, it has gathered enough resources to reduce its
consolidated debt by some US$300mn, as well as extend a number
of maturities, Feller said.
Liquidity levels are adequate and financial coverage ratios are
expected to improve. However, the rating is restricted by high
levels of contracted power, which makes the Company vulnerable
to weather conditions and the availability of natural gas.
Meanwhile, AES Gener shares continue to be rated first class
level 4.
CONTACT: AES Gener S.A.
Mr. Daniel Aninat
(562) 686-8938
OR
Vanessa Thiers
(562) 686-8948
Web Site: www.aesgener.cl
TELEFONICA CTC: Shareholders to Meet With Telefonica Reps
---------------------------------------------------------
Shareholders of Chilean telco Telefonica CTC Chile didn't
schedule a meeting for last week to vote on the sale of its
mobile division Telefonica Movil, as what Business News Americas
has reported last Tuesday. In a follow up report issued
Wednesday, Business News Americas said that minority
shareholders will in fact be meeting with representatives of CTC
majority owner Spain's Telefonica SA to air their concerns prior
to the vote, which is still set to occur before mid-July.
In May, Telefonica, through Telefonica Moviles S.A., announced
plans to acquire Telefonica Movil for US$1 billion, plus a
compromise to take on US$243 million in debt.
The CTC board has already recommended that shareholders accept
the offer but some minority shareholders believe Telefonica has
used its 43% share in CTC to ensure a price, which is to its
advantage. Shareholders are also concerned that CTC will lose
value after offloading the division with most growth potential.
CONTACT: TELEFONICA CTC CHILE
Sofia Chellew
E-mail: schelle@ctc.cl
Tel.:56-2-691 3867
Veronica Gaete
E-mail: vgaete@ctc.cl
Tel.:56-2-691 3867
M.Jose Rodriguez
E-mail: mjrodri@ctc.cl
Tel.:56-2-691 3867
Florencia Acosta
E-mail: macosta@ctc.cl
Tel.:56-2-691 3867
TELEFONICA CTC: Allocates $70M for Broadband
--------------------------------------------
Chilean telecommunications company Telef˘nica CTC Chile plans to
exploit the expected rise in broadband clients over the next two
years by beefing up its networks with a US$70 Mln investment
this year. CTC product manager Mr. Juan Pablo Karmy says that
the company is optimistic that subscriber growth will push
broadband service revenues 10% this year compared to 4% in 2003.
Business News Americas reports that with the increase, CTC could
end the year with 240,000 broadband clients.
The sale of CTC's fastest growing unit, mobile division
Telefonica Movil, further opens the way for the company's goal
of redefining itself as a broadband service provider rather than
a basic telephony provider.
Together with coverage expansion and direct marketing
strategies, CTC is seeking to expand on the value-added services
it can bundle with broadband, such as Wi-Fi. The company expects
to place 300 hotspots in service by the end of the year compared
to 150 today.
===============
C O L O M B I A
===============
* World Bank Approves $280M For Colombia
----------------------------------------
The World Bank approved Thursday two loans for $280 million for
Colombia to support a peace and development project, as well as
a national urban transport system in large and medium cities.
"The efforts of the government of Colombia to achieve a lasting
peace require effective policies for greater social and economic
development," said Isabel Guerrero, World Bank Director for
Colombia and Mexico. "Supporting the poor and the displaced in
the countryside and strengthening public infrastructure in the
cities will certainly contribute to this goal."
The first $30 million loan is to finance the first of the two-
phase Peace and Development Project that aims to reduce the
vulnerability of low-income and displaced population in five
regions affected by the armed conflict in Colombia - Magdalena
Medio, Oriente Antioqueno, Macizo Colombiano-Alto PatĄa, North
of Santander and Montes de Maria.
The project will directly benefit about 450,000 people living in
these regions who may find themselves displaced in the near
future and those who have already been displaced and are trying
to re-establish themselves in a new location or to return to
their original home towns.
It will do so by supporting:
- Social, economic and environmental development initiatives
driven by community priorities and implemented by them;
- A reestablishment package intended to provide returned or
relocated displaced families with a basic safety net (food
security, basic sanitation, home improvements, access to social
services and support for productive activities);
- The enhancement of the implementation capacity of the
Territorial Units of the Government of Colombia's Social
Solidarity Network, the territorial committees of the National
System for Integrated Services for Displaced Populations, and
the Partner Organizations operating in the regions of the
project.
"Building assets and improving safety nets are key to mitigate
the risk of displacement and restoring basic safety nets to the
already displaced families is a vital step in their social and
economic stabilization," said Jairo Arboleda, World Bank task
manager for the project. "This loan will support those in danger
of being displaced or the already displaced, but also the
projects implementation capacity of the local public and private
institutions as good governance is a key element to prevent
violence."
This $30 million, fixed-spread loan from the International Bank
for Reconstruction and Development (BIRF) is repayable in 10.5
years, and includes a grace period of 10.5 years.
The Integrated Mass Transit Systems Project
The second loan approved today is a $250 million for Colombia's
Integrated Mass Transit Systems Project. It will allow cities to
expand or/and construct bus rapid transit systems in medium and
large cities, such as Bogota, Pereira, Cartagena, Barranquilla,
Soacha, Bucaramanga and MedellĄn, improving the standard of
living of millions of Colombians, by decreasing time and costs
of public transport. The disabled people, who cannot currently
use mass public transport, will have access to the new bus rapid
transit system, as it does already in the modern Transmilenio
system of Bogota.
The Integrated Mass Transit Systems Project will:
- Develop high quality and sustainable bus rapid transit systems
in selected medium and large cities to improve mobility along
the most strategic mass transit corridors;
- Improve the accessibility for the poor though more feeder
services from and to poor areas and though fare integration in
order to decrease the cost for users who take more than one bus
to travel in one same route;
- Build greater institutional capacity at the national level in
order to formulate integrated urban transport policies, and at
the local level to improve urban transport planning and
transport management.
"The experience of the Transmilenio bus rapid transit system has
been a success and this project will try to replicate that
experience but tailoring it to the specific conditions of other
cities," said Mauricio Cuellar, World Bank task manager for the
project. "This will definitely provide the poor with a good and
comfortable transit system, and improve both the quality of life
and urban entourage in the cities."
This $250 million, fixed-spread loan from the International Bank
for Reconstruction and Development (BIRF) is repayable in 14
years, and includes a grace period of 8 years. Total project
cost is $464 million.
CONTACTS: Gabriela Aguilar
Tel.: (5255) 5480-4200
E-mail: Gaguilar2@worldbank.org
Alejandra Viveros
Tel.: (202) 473-4306
E-mail: Aviveros@worldbank.org
===========
M E X I C O
===========
HYLSAMEX: Mulls Capital Increase to Improve Financial Situation
---------------------------------------------------------------
Mexican steelmaker Hylsamex informed the local stock exchange
Thursday that it would propose a capital increase at a
shareholders' meeting scheduled for June 25. The proposed
measure includes the issuance of up to 180 million special 'L'
shares, the filing with the bourse said. Share prices will be
established once the issue is cleared. The 'L' shares are
convertible into normal 'B' series shares, which carry voting
rights after being listed on the bourse for one year.
"Funds would be used to prepay debt as an additional step in the
administration's continuing process of strengthening Hylsamex's
capital structure and increasing its financial flexibility," the
filing said.
Hyslamex ended the first quarter of this year with a net debt of
US$962 million. But last Monday, the Monterrey-based company,
which is a unit of conglomerate Alfa SA, said it expects to
report earnings before interest, taxes, depreciation and
amortization, or EBITDA, between US$190 million and US$210
million in the second quarter, compared with US$45 million in
the year-ago period.
CONTACT: Hylsamex S.A. de C.V.
101 Ave Munich Cuauhtemoc
66452 San Nicolas de los Garza
Nuevo Leon
Mexico
Phone: +52 81 8865 2828
Fax: +52 81 8865 1210
Home Page: http://www.hylsamex.com.mx
Contact:
Engr. Dionisio Garza Medina, Chairman
Alejandro Elizondo Barragan, Chief Executive Engr
INDUSTRIAS UNIDAS: S&P Affirms Ratings, Removes from CreditWatch
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' long-term
foreign and local currency corporate credit ratings on
Industrias Unidas S.A. de C.V. (IUSA). The outlook is negative.
Both ratings were removed from CreditWatch, where they were
placed April 7, 2004.
"The rating affirmation reflects the improved operating and
financial performance of IUSA during the past 12 months," said
Standard & Poor's credit analyst Jose Coballasi. The negative
outlook reflects Standard & Poor's concern regarding the
company's tight liquidity. Failure to improve the company's
capital structure and liquidity before the end the year could
lead to a downgrade.
The ratings reflect the company's tight liquidity and high
leverage. These factors are partially offset by the company's
leading market positions in Mexico and the United States in the
manufacture and distribution of copper and copper-alloy
products, electrical products, and watt-hour meters.
IUSA is one of Mexico's largest diversified industrial
companies, offering a large variety of products through
integrated manufacturing and distribution operations located
principally in Mexico and the U.S. The company's operations are
conducted by seven principal business groups: copper tubing,
wire and cable, copper alloys, electrical products, watt-hour
meters, valves and controls, and diversified assets group.
Failure to improve the company's capital structure and liquidity
before the end of the year could lead to a downgrade.
Nevertheless, Standard & Poor's expects that IUSA will be able
to continue to roll over its short-term debt maturities while it
moves forward with its efforts to improve its capital structure.
A stable outlook could be assigned if the company is able to
improve its debt maturity profile through the issuance of long-
term debt before year-end.
ANALYSTS: Jose Coballasi, Mexico City (52) 55-5081-4414
Santiago Carniado, Mexico City (52) 55-5081-4413
=======
P E R U
=======
AERO CONTINENTE: To Deal With Legal Battle Against U.S. Alone
-------------------------------------------------------------
Aero Continente is on its own to fight a decision by the U.S.
Government to freeze the American assets of the largest airline
in Peru, the AP indicates. On June 1, the U.S. Treasury
Department froze the American assets belonging to the Company
and its founder Fernando Zevallos as part of the U.S. Drug
Kingpin program. Peru's Transportation Minister said Thursday
that the Peruvian government will not help Aero Continente fight
the U.S. measure.
"If a problem has arisen, based on a decision by the U.S.
government that affects Mr. Zevallos ... that's something Aero
Continente has to resolve," Transportation Minister Jose Ortiz
told Radioprogramas. "This is a situation that is totally
unrelated to the Peruvian government," he continued.
The Peruvian official's comments came amidst intense lobbying
campaign by Aero Continente employees, demanding that the
government help them fight the U.S. measure.
=================================
T R I N I D A D & T O B A G O
=================================
BWIA: Faces Lawsuit After Detaining Passengers
----------------------------------------------
Trinidad-based carrier BWIA faces a GYD60 million (US$303,000)
lawsuit from a Guyanese family after airline officials seized
their travel documents at the Grantley Adams Airport in Barbados
early this year. The plaintiffs, Ms. Dian Balram and her
daughter Nicola, are claiming indemnity for negligence; breach
of contract; defamation of character; breach of contract of
carriage; trespass to their person and property and for punitive
and exemplary damages.
In addition, The Balrams have also presented claims for costs
and interest at 6 per cent per annum under the provisions of the
Law Reform (Miscellaneous Provisions) Act.
Court documents obtained by Asia Intelligence Wire show that the
Balrams purchased BWIA tickets worth US$1,065 for an April 12
flight to Miami. The family failed to arrive in the U.S. because
their passports were confiscated and they were forcibly taken
off the flight after the plane touched-down in Bermuda.
BWIA has not issued an official comment to the charges.
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)
***********
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,
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Copyright 2004. All rights reserved. ISSN 1529-2746.
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