/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040616.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, June 16, 2004, Vol. 5, Issue 118 Headlines A R G E N T I N A COINDEL: Court Orders Liquidation COMPANIA LACTEA: Verification Deadline Approaches CONDUCTIL: Initiates Bankruptcy Proceedings EXPRESO ANGELICA: Court Approves Concurso Motion FRANCISCO SANCHEZ E HIJOS: Liquidates Assets to Pay Debts GALTRUST I: Fitch Places Financial Trusts' Ratings at Junk Level GARAVAGLIA Y CIA: Enters Bankruptcy on Court Orders GRYNER: Proceeds to Bankruptcy HEY DI ARGENTINA: Enters Bankruptcy on Court Orders IEBA: $230M of Corporate Bonds Remain at Junk Level IN & OUT: Credit Verification Continues INVESTMENT TERMS: Court Orders Liquidation JUAN CARLOS HERRERO: Verification Deadline Fixed LECTRA: Court Issues Bankruptcy Ruling NAPOLES DEL SUD: Court Declares Company Bankrupt ORENGO: Court Favors Creditor's Bankruptcy Petition PETROBRAS ENERGIA: Oil Production Down in May TECNOLASER: Judge Approves Bankruptcy TELECOM/AGUAS/DISCO: Judge Dismisses Probe Into Execs TELEFONICA DE ARGENTINA: Robbery Leaves Clients Without Service VIPLAN: Submits Extra-Judicial Settlement Proposal VIRTU: Bankruptcy Process Begins By Court Order * Another Bondholder Group Shuns Argentine Debt Offer B E R M U D A FOSTER WHEELER: Launches Equity for Debt Exchange Offer B R A Z I L AHOLD: Q1 2004 Results Negatively Impacted By Divestments GERDAU: Enters New Phase in Gerdau Acominas Restructuring M E X I C O BANSI: S&P Affirms Ratings; Outlook Stable EL INDEPENDIENTE: Publication Suspended After Huge Losses GRUPO IUSACELL: Presents Information on Syndicated Credit HYLSAMEX: To Raise $150M In Capital SATMEX: Debt Accord With Creditors Nearing Completion XIGNUX: S&P Affirms Ratings; Outlook Negative T R I N I D A D & T O B A G O CDC: Striking Workers To Appear Before Industrial Court - - - - - - - - ================= A R G E N T I N A ================= COINDEL: Court Orders Liquidation --------------------------------- Coindel S.A.I.C.F.I. y A.G. is preparing to close its operations following the bankruptcy ruling issued by the Buenos Aires Civil and Commercial Tribunal. The declaration effectively prohibits the Company from administering its assets, control of which will be transferred to a court-appointed trustee. Infobae reports that the court assigned the accounting firm Estudio Soto, Torresin, to serve as trustees. The firm will be reviewing creditors' proofs of claims until August 27, 2004. The verified claims will be the basis for the individual reports to be presented for court approval on September 24, 2004. Afterwards, the trustee will also submit a general report on November 8, 2004. CONTACT: Coindel S.A.I.C.F.I. y A.G. Talcahuano 439 Buenos Aires Estudio Soto, Torresin, Trustee French 2394 Buenos Aires COMPANIA LACTEA: Verification Deadline Approaches ------------------------------------------------- The verification of claims for the Compania Lactea Argentina S.A. bankruptcy will end on August 23, 2004 according to news source Infobae. Creditors with claims against the bankrupt company must present proof of the liabilities to Mr. Ernesto Iob, the court-appointed trustee, before the said deadline. The bankruptcy process will conclude with the liquidation of the Company's assets to pay its creditors. CONTACT: Mr. Ernesto Iob, Trustee Presidente Peron 1186 Buenos Aires CONDUCTIL: Initiates Bankruptcy Proceedings ------------------------------------------- A Buenos Aires Court has declared Conductil S.A.C.I.F.I.A. bankrupt, reports Infobae. This declaration automatically divests the Company of its assets, which would be eventually sold to repay its debts. Accounting firm Chiaia Stoltzing & Asociados, court-appointed trustees, will verify creditors' claims until August 17, 2004. Creditors who fail to present their claims for validation cannot participate in the payments that will be made once the Company's assets are liquidated. CONTACT: Chiaia Stoltzing & Asociados, Trustees Sarmiento 1574 Buenos Aires EXPRESO ANGELICA: Court Approves Concurso Motion ------------------------------------------------ Judge di Noto of Buenos Aires Court No. 15 approved a petition for reorganization filed by Expreso Angelica S.A. According to a notice from Argentine daily La Nacion, the transport company claims assets of US$891,398.09 and liabilities totaling US$986,919.35 Mr. Hector Garcia, the court-appointed trustee, will verify claims forwarded by creditors until August 24, 2004. After verifying the claims, the trustee will then submit the individual and general reports to court. Dates for submission of these reports are yet to be disclosed. Dr. Tevez, Clerk No. 29, assists the court on the case. CONTACT: Expreso Angelica S.A. Almirante Segui 309 Buenos Aires Mr. Hector Garcia, Trustee Montevideo 734 Buenos Aires FRANCISCO SANCHEZ E HIJOS: Liquidates Assets to Pay Debts --------------------------------------------------------- Francisco Sanchez e Hijos S.R.L. will begin liquidating its assets following the pronouncement of Buenos Aires Civil and Commercial Tribunal that the Company is bankrupt, Infobae reports. The ruling places the Company under the supervision of court- appointed trustee, Ms. Nora Cristina Roger. The trustee will verify creditors' proofs of claim until August 23, 2004. The validated claims will be presented in court as individual reports on October 4, 2004. Ms. Roger 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 November 15, 2004. The bankruptcy process will end with the disposal of company assets in favor of its creditors. CONTACT: Francisco Sanchez e Hijos S.R.L. Cramer 2175 Buenos Aires Mr. Nora Cristina Roger Hipolito Yrigoyen 1349 Buenos Aires GALTRUST I: Fitch Places Financial Trusts' Ratings at Junk Level ---------------------------------------------------------------- Fitch Argentina Calificadora de Riesgo S.A. assigned junk ratings to a total of US$400 million worth of financial trusts issued by Galtrust I. On its Web site, Argentina's securities regulator, the Comision Nacional de Valores (CNV), reveals that Fitch assigned a `C(arg)' rating to US$200 million worth of financial trusts described as "Certificados de Participacion" and a `CCC(arg)' rating to US$200 million worth of financial trusts described as "Titulos de Deuda Clase B." The maturity dates of both issues were not disclosed. A `C(arg)' rating indicates a highly uncertain capacity for timely payment of financial commitments relative to other issuers or issues in the same country. Capacity for meeting financial commitments is solely reliant upon a sustained, favorable business and economic environment, said Fitch. A `CCC(arg)' rating denotes an extremely weak credit risk relative to other issues in the same country. Capacity for meeting financial commitments is solely reliant upon sustained, favorable business or economic developments. GARAVAGLIA Y CIA: Enters Bankruptcy on Court Orders --------------------------------------------------- A Buenos Aires court declared Garavaglia y Cia 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, Mr. Alfredo Ruben Dario Rodriguez. As the Trustee, Mr. Rodriguez is tasked with verifying the authenticity of claims presented by the Company's creditors. The verification phase is ongoing until August 30, 2004. CONTACT: Garavaglia y Cia S.A. 25 de Mayo 196 Buenos Aires Mr. Alfredo Ruben Dario Rodriguez, Trustee Marcelo T de Alvear 1775 Buenos Aires GRYNER: Proceeds to Bankruptcy ------------------------------ Buenos Aires-based Gryner S.A. enters the bankruptcy process after a city court ordered the Company's liquidation, states Infobae. The bankruptcy pronouncement transfers control of the Company's assets to Ms. Eva Rodriguez, the court-appointed trustee. CONTACT: Ms. Eva Roriguez, Trustee Presidente Peron 1509 Buenos Aires HEY DI ARGENTINA: Enters Bankruptcy on Court Orders --------------------------------------------------- Buenos Aires Civil and Commercial Tribunal declared Hey di Argentina 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, Mr. Roberto Alfredo Mazzarella. As the Trustee, Mr. Mazarella is tasked with verifying the authenticity of claims presented by the Company's creditors. Infobae states that the verification phase is ongoing until September 22, 2004. Following claims verification, the trustee will submit the individual reports based on the forwarded claims for final approval by the court on November 5, 2004. A general report will also be submitted on December 17, 2004. CONTACT: Mr. Roberto Alfredo Mazzarella, Trustee Laprida 1411 Buenos Aires IEBA: $230M of Corporate Bonds Remain at Junk Level --------------------------------------------------- Standard & Poor's International Ratings, Ltd. Sucursal Argentina maintains an `raD' on a total of US$230 million of corporate bonds issued by Inversora Electrica de Buenos Aires S.A. (IEBA) According to the CNV, the rating applies to US$130 million of bonds described as" Obligaciones Negociables Simples no convertibles en acciones", which will come due Sep. 16 this year. The rating also affects US$100 million of " Obligaciones Negociables Simples no convertibles en acciones", which expired on Sep. 16, 2002. The rating action is based on IEBA's financial status as of March 31, 2004. S&P said that an `raD' rating is assigned when it is in payment default or if the obligor has filed for bankruptcy. The rating may also be used when principal payments are not made on the due date even if the applicable grace period has not expired, unless the ratings agency believes that such payments will be made during such grace period. IN & OUT: Credit Verification Continues --------------------------------------- The submission of proofs of claim for the creditors of bankrupt Argentine company In & Out S.R.L. will continue until August 3, 2004. Infobae states that creditors should present the claims to Mr. Juan Carlos Rico, the court-appointed trustee, before the deadline to qualify for the post-liquidation payments. CONTACT: Mr. Juan Carlos Rico, Trustee Viamonte 1546 Buenos Aires INVESTMENT TERMS: Court Orders Liquidation --------------------------------------------- A Buenos Aires Judge ordered the liquidation of Investment Terms S.A. after the Company defaulted on its debt payments, Infobae reveals. In line with the bankruptcy order, the court-appointed trustee, Mr. Jorge Juan Gerhkovich, will verify creditors' proofs of claim until August 6, 2004. The verified claims will serve as basis for the individual reports to be submitted in court on September 20, 2004. The submission of the general report follows on November 2, 2004. CONTACT: Mr. Juan Gerchkovich, Trustee Lavalle 1882 Buenos Aires JUAN CARLOS HERRERO: Verification Deadline Fixed ------------------------------------------------ Ms. Norma Elida Fistzen, court-appointed trustee for the Juan Carlos Herrero S.A. bankruptcy case, will be accepting creditors' proofs of claim for verification until August 30, 2004. Analyzing these claims is important because the outcome of the process will determine the amount each creditor will get after all the assets of the Company are liquidated. The case will conclude with the sale of the Company's assets in order to pay its creditors. CONTACT: Ms. Norma Elida Fistzen, Trustee Viamonte 1446 Buenos Aires LECTRA: Court Issues Bankruptcy Ruling -------------------------------------- Lectra S.A. will now enter bankruptcy after a Buenos Aires court declared it "Quiebra," reports Infobae. The court named Ms. Haydee Nelida Grumblatt de Nobile as trustee. She will verify creditors' claims until July 15, 2004. Following claims verification, the trustee will submit the individual reports, which were prepared based on the verification results, to the court on September 10, 2004. The general report is due for submission on October 25, 2004. The Company's bankruptcy case will close with the liquidation of its assets to pay its creditors. CONTACT: Ms. Haydee Nelida Grumblatt de Nobile, Trustee Felipe Vallese 1195 Buenos Aires NAPOLES DEL SUD: Court Declares Company Bankrupt ------------------------------------------------ Napoles del Sud S.R.L. begins the bankruptcy process after a Buenos Aires Court ordered the Company's liquidation, reveals Infobae. The court assigned Ms. Raquel Steinhaus as trustee for the proceedings. She is to verify creditors' claims until September 7, 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 due on October 19, 2004, are to be prepared upon completion of the verification process. The court also requires the trustee to prepare a general report and file it on November 29, 2004. This report contains a summary of the results in the individual reports. CONTACT: Napoles del Sud S.R.L. Pacheco de Melo 2432 Buenos Aires Ms. Raquel Steinhaus, Trustee Paraguay 577 Buenos Aires ORENGO: Court Favors Creditor's Bankruptcy Petition --------------------------------------------------- Mr. Miguel Eboli successfully petitioned for the liquidation of Orengo S.A. after Judge Dieuzeide of Buenos Aires Court No. 1 declared the Company bankrupt. La Nacion states that Mr. Eboli sought for the Company's bankruptcy after the latter failed to pay debts amounting to US$35,516.13. With the court's order, the troubled food products distributor will now start the bankruptcy process under the direction of Ms. Marta Linares, the trustee. Creditors must submit proofs of the Company's indebtedness to the trustee before August 17, 2004 for authentication. Failure to do so will mean a disqualification from the payments that will be made after the Company's assets are liquidated. Dr. Galli, Clerk No. 2, assists the court on the case, which will end in the liquidation of all of its assets. CONTACT: Orengo S.A. Cerrito 836 Buenos Aires Ms. Marta Linares, Trustee Parana 145 Buenos Aires PETROBRAS ENERGIA: Oil Production Down in May --------------------------------------------- Petrobras Energia SA, the Argentine unit of Brazilian oil giant Petroleo Brasiliero SA, reported a reduction in its oil and gas output last month, reports Dow Jones Newswires The Company, in a filing to the local stock exchange, said it produced only 167,800 daily equivalent oil barrels in May, slightly lower than the previous month's 173,400. Oil production in May was 118,000 daily barrels, compared with 125,600 barrels in April and 114,700 barrels in May 2003, the filing said. The filing showed that production in Argentina and Venezuela accounted for almost all of the oil production decline, with Argentine output dipping 4,100 barrels daily and the Company's Venezuelan production dropping 1,800 barrels. The filing didn't give reasons for the decline, says Dow Jones. However, with Argentine hiking export duties on oil sales, President Nestor Kirchner heavily criticizing oil companies for an energy crisis and the government successfully pressing companies to keep domestic fuel prices frozen, executives may have decided to hold back output until the situation settled. However, reduced output doesn't necessarily mean the Company saw reduced revenue last month. Production of gas rose in May, with 49,800 daily oil equivalent barrels produced compared with 47,800 in April. Production in Argentina rose in May to 36,700 daily barrels from 35,500 in April. CONTACTS: Daniel E. Rennis E-mail: drennis@petrobrasenergia.com Alberto Jankowski E-mail: ajankows@petrobrasenergia.com Tel: (5411) 4344-6655 TECNOLASER: Judge Approves Bankruptcy ------------------------------------- Tecnolaser S.A. was declared bankrupt after Judge Garibotto of Buenos Aires Court No. 2 endorsed the petition of Electro Tucuman S.A. for the Company's liquidation. La Nacion reports that Electro Tucuman has claims totaling US$4,389.76 against the insolvent construction company. The court assigned Mr. Fernando Aquilino to supervise the liquidation process as trustee. He will validate creditors' proofs of claims until August 13, 2004. CONTACT: Tecnolaser S.A. Gallardo 484 Buenos Aires Mr. Fernando Aquilino, Trustee Lavalle 1459 Buenos Aires TELECOM/AGUAS/DISCO: Judge Dismisses Probe Into Execs ----------------------------------------------------- Executives of Argentine firms Telecom Argentina, Aguas Argentinas and Disco, who have been called to testify in a probe into suspected tax evasion by the companies, are now off the hook. Dow Jones Newswires reports that lower court Judge Julio Speroni dismissed the investigation into executives at the three companies on Friday after declaring there was a lack of evidence. Two years ago, Argentina's tax agency AFIP, denounced suspected evasion by the three companies, accusing the firms of using fake billing to avoid paying income tax. Previously, a source close to Disco said the retailer could have unwittingly been on the receiving end of fake bills from fraudulent companies and thus would be innocent of any tax evasion charges. The probe will continue into officials from some of the other companies. Telecom Argentina, one of the country's top two telephone companies, is majority owned by Telecom Italia Spa and W de Argentina, an affiliate of Argentinean investment company Los W group. Embattled waterworks concessionaire Aguas Argentinas is a unit of French company Suez (SZE). The Company recently signed a transitional agreement with the Argentine government committing it to invest ARS242 million this year and requiring its parent company to suspend a claim against Argentina in the World Bank's arbitration tribunal. Supermarket chain Disco, on the other hand, is a unit of the troubled Dutch retail giant Royal Ahold NV. The unit is on the process of being sold to Chilean retailer Cencosud. 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 DISCO S.A. Larrea 847, Piso 1 1117 Buenos Aires, Argentina Phone: +54-11-4964-8000 Fax: +54-11-4964-8076 Home Page: http://www.disco.com.ar TELEFONICA DE ARGENTINA: Robbery Leaves Clients Without Service --------------------------------------------------------------- Robbery of copper wire has left 381,000 clients of fixed-line provider Telefonica de Argentina without service since the beginning of the year, reports Dow Jones Newswires. Telefonica de Argentina revealed 180 tons of copper telephone wire, or about 68,000 kilometers, have been stolen so far this year, with 85% of those thefts taking place in the suburbs of Buenos Aires. The Company said it "has intensified preventive measures," from modifying the heights of telephone poles to installing alarms, to ensure that the number of clients without service doesn't reach the 1 million-plus levels of 2002. That year was the peak of Argentina's economic crisis, which had provoked a widespread crime wave. CONTACT: TELEFONICA DE ARGENTINA Tucuman 1, 18th Floor, 1049 Buenos Aires, Argentina Phone: (212) 688-6840 Home Page: http://www.telefonica.com.ar VIPLAN: Submits Extra-Judicial Settlement Proposal -------------------------------------------------- The settlement plan drafted by Viplan S.A. for its creditors is due for court ratification. Infobae announces that all oppositions regarding the terms of the proposed agreement must be filed in court before June 28, 2004. Once approved by the court, the settlement plan will be binding to all acknowledged creditors and may not be attacked by future or present creditors in the event that the Company liquidates. CONTACT: Viplan S.A. Buenos Aires VIRTU: Bankruptcy Process Begins By Court Order ----------------------------------------------- Virtu S.A. of Buenos Aires will begin liquidating its assets after a city court ruled in favor of the Company's bankruptcy, Infobae reveals. The declaration signals the Company to proceed with the bankruptcy process, which will close with the liquidation of its assets. The court appointed Mr. Juan Jose Castronuovo as trustee who will authenticate proofs of claim until August 2, 2004. Afterwards, the trustee will prepare the individual reports based on the results of the authentication and then submit these reports to court on September 13, 2004. The trustee will also submit a general report on October 25, 2004. CONTACT: Mr. Juan Jose Castronuovo Presidente Peron 1509 Buenos Aires * Another Bondholder Group Shuns Argentine Debt Offer ----------------------------------------------------- German bondholders' association Interessengemeignschaft Argentinien e. V. (IGA), which holds US$200 million of Argentine defaulted debt, refuses to negotiate with Argentina any further over the latter's planned debt restructuring. "We left the table," IGA founder, Stefan Engelsberger, said, adding "I have no time for this anymore." Speaking to reporters after a meeting with Argentine Finance Secretary Guillermo Nielsen and representatives of the government's advisory banks, Engelsberger said Argentina had treated Argentines with "bad faith," a reference to his and other bondholders' claims that the country is in breach of a commitment to the International Monetary Fund to conduct "good faith" negotiations. He said he would file a formal complaint with the German representative to the International Monetary Fund "about the lack of bona fide negotiations" and demand that the IMF refuse to approve Argentina's compliance with commitments established under its current financial program with the international lender. An IMF team is in Buenos Aires to initiate a review process of those targets, one of which is that it will conduct good-faith negotiations with its private creditors. "We have leverage," Engelsberger said. "If the IMF continues to authorize the program, it will be acting unlawfully. The German constitutional court will have to rule on the case in pending proceedings." According to its recently unveiled debt proposal, Argentina would pay investors 25 cents per $1 of defaulted debt as measured by the discounted present value of the bond payments. That's about half what Russia and Ecuador paid in debt restructurings in the past six years. Bondholder groups have said Argentina, South America's second- largest economy, can afford to pay more with gross domestic product expanding at a pace of 9 percent a year and tax revenue surging to a record. But the government said paying more would jeopardize the economic recovery. ============= B E R M U D A ============= FOSTER WHEELER: Launches Equity for Debt Exchange Offer ------------------------------------------------------- Foster Wheeler Ltd. (OTCBB: FWLRF - News) announced Monday that its proposed equity for debt exchange offer has been launched. Foster Wheeler is in the process of distributing the offering materials to security holders. The offer will expire on July 12, 2004, unless extended. A copy of the prospectus relating to these securities and other related documents may be obtained from the information agent. The information agent for this exchange offer and consent solicitation is Georgeson Shareholder Communications Inc., 17 State Street, 10th Floor, New York, New York 10014. Georgeson's telephone number for bankers and brokers is 212-440-9800 and for all other security holders is 800-891-3214. Individuals holding their securities through brokers are urged to contact their brokers to receive a copy of the prospectus and to tender their securities. 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 Rothschild at 212- 403-3784 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). 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: Foster Wheeler Ltd. Media Contact Ms. Maureen Bingert 908-730-4444 Investor Contact: Mr. John Doyle 908-730-4270 Other Inquiries: 908-730-4000 Web Site: www.fwc.com =========== B R A Z I L =========== AHOLD: Q1 2004 Results Negatively Impacted By Divestments --------------------------------------------------------- Highlights of Q1 2004 - Net loss EUR 405 million (Q1 2003: net income EUR 84 million) due to exceptional losses related to divestments - Operating loss EUR 145 million (Q1 2003: operating income EUR 402 million) including exceptional losses on divestments of EUR 450 million (Q1 2003: no loss on divestments) - Net sales EUR 15.4 billion, a decrease of 11.3% compared to Q1 2003. Net sales growth was approximately 1.3% excluding currency impact and impact of divestments - Net cash generated before financing activities was EUR 485 million (Q1 2003: EUR 24 million net cash outflow) Ahold published Monday its first quarter 2004 results. "We announced that 2004 will be a year of transition," said Anders Moberg, Ahold President and CEO, commenting on the results. "In March we sold Bompreco and Hipercard in Brazil and we have completed our departure from Asia, all of which were important milestones on our `Road to Recovery' program. The results were heavily impacted by the exceptional losses that we previously communicated relating to these divestments. Apart from these exceptional losses that have no impact on equity or cash, the main operating companies performed in line with our expectations." Summary Net sales In the first quarter of 2004 net sales amounted to EUR 15.4 billion, a decrease of 11.3% compared to the same period in 2003. Net sales growth was approximately 1.3% excluding currency impact and the impact of divestments. Ahold's retail operations in the United States have experienced ongoing challenging market conditions. In the European retail operations net sales excluding currency impact and the impact of divestments remained unchanged compared to the same quarter of 2003. Net sales at U.S. Foodservice increased in U.S. dollars by 4.6% to USD 5.5 billion, mainly driven by food price inflation. Operating loss: mainly due to losses related to divestments The operating loss amounted to EUR 145 million (Q1 2003: operating income EUR 402 million) and was primarily caused by exceptional losses of EUR 450 million (Q1 2003: EUR 0 million) related to the divestments of Bompreco, Hipercard and operations in Thailand. These exceptional losses were mainly caused by accumulated foreign currency translation adjustments ("CTA losses") and goodwill reversals. (See "Definitions" below for an explanation of CTA losses and goodwill reversals.) These losses, which were expected, have no impact on equity or cash. Operating income from the U.S. retail operations was heavily impacted by a weaker U.S. dollar. Furthermore, non-recurring costs for the integration of Stop & Shop and Giant-Landover and the U.S. corporate office (USD 25 million) impacted operating income negatively. Ahold expects this integration to generate significant benefits in 2005 and beyond. The operating loss at U.S. Foodservice was lower than last year's quarter. Operating income from the European retail operations was impacted by a weaker performance in Spain and higher costs related to pensions in the Netherlands. Both Albert Heijn and Central Europe performed resiliently in the first quarter of this year. Net loss: favorable impact of lower interest expenses The net loss of EUR 405 million (Q1 2003: net income EUR 84 million) was primarily caused by the exceptional losses on divestments as described above. Net interest declined by 29.2% to EUR 223 million with the repayment of debt during 2003, the increase of the cash balance to EUR 3.8 billion and much lower bank fees. Further reduction of net debt Net debt was further reduced from EUR 7.5 billion at the end of 2003 to EUR 7.1 billion at the end of the first quarter of 2004, the result of our ongoing efforts to strengthen our balance sheet. Strong cash flow generation Net cash generated before financing activities was EUR 485 million in the first quarter of 2004 (Q1 2003: net cash outflows EUR 24 million). This improvement was mainly due to cash inflows from divestments and lower capital expenditure. Full-year 2004: a year of transition With regard to the outlook for 2004, Ahold refers to its full- year 2003 financial statements, published on April 19, 2004. As previously announced, exceptional items related to certain divestments, of which a substantial portion was booked in the first quarter, will have a significant impact on net income for 2004. However, this will have no impact on equity or cash. Ahold Q1 2004 Results Ahold prepares its financial statements in accordance with accounting principles generally accepted in the Netherlands ("Dutch GAAP"). Dutch GAAP differs in certain material respects from accounting principles generally accepted in the United States ("US GAAP"). All financial information in this press release is based on Dutch GAAP unless otherwise noted. The quarterly figures reported in this press release are unaudited. In certain instances, results presented in this press release either exclude the impact of fluctuations in currency exchange rates used in the translation of Ahold's foreign subsidiaries' financial results into Euro or are presented in local currencies, which Ahold's management believes provides a better insight into the operating performance of foreign subsidiaries. For more information regarding the non-GAAP financial measure `excluding currency impact', see "Definitions" below. In addition, in certain instances, operating income for Ahold's business segments is presented excluding the impact of the impairment and amortization of goodwill and exceptional items. Operating income before impairment and amortization of goodwill and exceptional items is a non-GAAP financial measure. A reconciliation of this non-GAAP financial measure to the Dutch GAAP measure of operating income, as well as management's explanation for the use of this measure, are set forth in Annex B. In this press release net cash flow before financing activities refers to the sum of net cash from operating activities and net cash from investing activities. The results for Q1 2003 presented in this press release have been adjusted to make them comparable to the results for Q1 2004. These adjustments to the Q1 2003 results relate to accounting for vendor allowances, and reflect the following: ? In the fourth quarter of 2003 Ahold adopted EITF 02-16 "Accounting by a Customer (including a Reseller) for certain Consideration Received from a Vendor"("EITF 02-16"). As the adoption of EITF 02-16 in the fourth quarter includes the effect of EITF 02-16 from December 30, 2002, Ahold adjusted the results for Q1 2003 for the portion of the effect that related to Q1 2003, which resulted in an increase in net income for Q1 2003 by EUR 27 million (as previously announced); and ? In response to the irregularities announced in February 2003 relating to vendor allowances we conservatively deferred the recognition of certain vendor allowances in Q1 2003 until Q2 2003. After analyzing the accounting of our vendor allowance arrangements Ahold determined that EUR 65 million of income from vendor allowances, net of tax effect, could have been recognized in Q1 2003 instead of Q2 2003 in accordance with the current accounting policies. The financial reporting calendar has been amended versus previously announced: the results for Q4 2004 and year 2004 will be published on March 29, 2005. Net sales In the first quarter of 2004 net sales amounted to EUR 15.4 billion, a decrease of 11.3% compared to the same period in 2003. Net sales growth excluding currency impact and impact of divestments was approximately 1.3% in the first quarter. Net sales were significantly impacted by lower currency exchange rates against the Euro, in particular that of the U.S. dollar. In challenging conditions, the U.S. retail operations experienced net sales growth, excluding currency impact and the impact of the divestment of Golden Gallon, of 0.3%. In the European retail operations, net sales excluding currency impact and the impact from divestments, remained unchanged compared to the same quarter last year. U.S. Foodservice showed an increase in net sales in U.S. dollar of 4.6%, mainly driven by food price inflation. Operating income Operating income before impairment and amortization of goodwill and exceptional items The operating income before impairment and amortization of goodwill and exceptional items, decreased by 22.9% to EUR 351 million, heavily impacted by the weak U.S. dollar against the Euro. In addition there were non-recurring costs in the first quarter of USD 25 million relating to the integration process of Stop & Shop, Giant-Landover and the U.S. corporate office. This integration is expected to yield significant benefits in 2005 and beyond. Operating income from the European retail operations was impacted by a weaker performance in Spain and higher costs related to pensions in the Netherlands. Both Albert Heijn and Central Europe performed resiliently in the first quarter of this year. U.S. Foodservice showed an improved operating income before impairment and amortization of goodwill and exceptional items. This improvement was largely due to currency impact and an increased leverage of fixed costs over a higher amount of sales in U.S. dollars. Operating income The operating loss of EUR 145 million (Q1 2003: operating profit EUR 402 million) was mainly due to exceptional losses of EUR 450 million relating to the divestments of Bompreco and the operations in Thailand. These exceptional losses, which were expected and also discussed in prior press releases, have no impact on equity or cash. Goodwill amortization Goodwill amortization in Q1 2004 amounted to EUR 46 million, a decrease of 13.2% compared to Q1 2003. This decrease was primarily due to a lower U.S. dollar exchange rate. Goodwill impairment No goodwill impairment charges were required in the first quarter of 2004. Loss on disposal of tangible fixed assets In the first quarter the loss on disposal of tangible fixed assets amounted to EUR 6 million compared to a gain of EUR 8 million in the same period last year. Exceptional loss An exceptional losses of EUR 450 million was recorded in Q1 2004 compared to no exceptional losses in Q1 2003. The Q1 2004 exceptional losses was related to the divestments of Bompreco, Hipercard and operations in Thailand. Of these exceptional items, EUR 322 million related to CTA losses and EUR 213 million to the partial reversal of goodwill, both of which had previously been charged to shareholders' equity. These negative impacts were partly offset by a EUR 85 million gain representing the difference between the selling price and the book value of certain assets. See "Definitions" below. Net loss Ahold reported a net loss of EUR 405 million in Q1 2004 compared to a net income of EUR 84 million in Q1 2003, mainly due to the above-mentioned exceptional losses. The weakening of the U.S. dollar against the Euro also had a negative impact. Net financial expense showed a significant decrease Net financial expense was EUR 218 million in Q1 2004 compared to EUR 292 million in Q1 2003. Net interest amounted to EUR 223 million, a decrease of 29.2% compared to Q1 2003. The decrease was primarily caused by lower banking fees, higher interest income and lower interest expenses, related to the substantially decreased net debt and the lower U.S. dollar exchange rate. The gain on foreign exchange in Q1 2004 amounted to EUR 5 million, compared to EUR 23 million in Q1 2003, both mainly related to the positive impact of the revaluation of the Argentine Peso on U.S. dollar-denominated debt in Argentina. Income taxes The effective income tax rate, excluding the impact of non-tax- deductible impairment and amortization of goodwill and exceptional items, increased to 48.5% in Q1 2004 compared to 33.1% in Q1 2003, mainly as a result of the impact of a different geographic mix of income and consequences of the divestments. Share in income (loss) of joint ventures and equity investees Share in income of joint ventures and equity investees in the first quarter of 2004 was in line with the same quarter last year. Further improved Balance Sheet Ahold closed Q1 2004 with an improved balance sheet. Since year- end 2003 Ahold reduced net debt by EUR 422 million to EUR 7.1 billion mainly due to cash inflows from divestments and lower capital expenditure. Balance sheet total is reduced, reflecting reduced capital expenditure and divestments The USD to EUR exchange rate went up to EUR 0.83 per U.S. dollar at the end of Q1 2004 compared to EUR 0.80 at year-end 2003. Despite the currency impact of the stronger U.S. dollar against the Euro, the company continued to strengthen the balance sheet by decreasing net debt. The balance sheet total decreased by EUR 130 million. The cash balance increased to EUR 3.8 billion. The balance sheet total as per year-end 2003 of the companies divested in March 2004 amounted to EUR 714 million. Equity increased by almost EUR 0.3 billion Details related to changes in equity are outlined in Annex C. Net debt reduced by EUR 0.4 billion In the first quarter of 2004 Ahold was in compliance with the financial ratios contained in its December 2003 Credit Facility. The main covenants consist of Net Debt / EBITDA and EBITDA / Net Interest Expense Ratios. Net debt decreased due to cash inflows mainly related to divestments and lower capital expenditure. Cash flow Net cash inflow before financing activities improved mainly as a result of the divestment of Bompreco and Hipercard and the operations in Thailand. Operational Information Lower operating income impacted by integration costs Net sales in the U.S. retail trade operations in Q1 2004 decreased 1.2% in U.S. dollars compared to Q1 2003. Net sales in the first quarter were negatively impacted by the Easter calendar effect by approximately 0.8%; i.e. the first quarter of 2004 included the week after Easter, which in food retail is a slow week, compared to 2003 where the first quarter ended with the week before Easter, which is usually a strong week. Excluding the impact of the divestment of Golden Gallon in 2003 net sales in U.S. dollars increased slightly by 0.3%. Identical sales in U.S. dollars declined by 1.6% and comparable sales in U.S. dollars declined by 1.0% in Q1 2004 compared to Q1 2003, partly caused by the earlier-mentioned Easter calendar effect. During the first quarter of 2004 Ahold began integrating the two largest U.S. retail operating companies, Stop & Shop and Giant- Landover, into one arena. The integration will improve long-term competitiveness and cost-effectiveness of these companies. In addition, Ahold started integrating the U.S. retail corporate functions into this new arena. These steps will generate significant benefits in 2005 and beyond. Operating income before impairment and amortization of goodwill and exceptional items in the U.S. retail trade business in U.S. dollars decreased by 12.6% compared to Q1 2003 impacted heavily by the non-recurring integration costs (USD 25 million). Both Stop & Shop and Giant- Carlisle showed a solid performance in the first quarter of 2004. Resilient performance in the Netherlands and Central Europe The net sales decline of 1.1% in the first quarter of 2004 in the European retail operations is partly related to the divestments of De Tuinen and Jamin in 2003. Excluding currency impact in Central Europe and impact from divestments, net sales were unchanged compared to the same quarter of 2003. In the European retail operations, net sales were also negatively impacted by the Easter calendar effect. Sales volume at Albert Heijn increased as a result of the price repositioning campaign. The impact of food price deflation was largely offset by a higher sales volume. The identical sales at Albert Heijn declined by 0.2% compared to the same quarter of 2003. (Note that net sales at Albert Heijn were EUR 6 million lower versus previously announced in the Q1 2004 trading statement resulting from a final adjustment.) Operating income before impairment and amortization of goodwill and exceptional items in the European retail operations decreased by 16.7%, primarily due to higher pension costs (EUR 15 million) and a weaker performance in Spain. At Albert Heijn the price repositioning in combination with ongoing cost reductions led to a slightly higher operating income. The operations in Central Europe reported a lower operating loss due to increased net sales, improved margins and cost reductions resulting from the integration of the Central European retail operations. U.S. Foodservice U.S. Foodservice showed an increase in net sales excluding currency impact of 4.6%, primarily driven by food price inflation. The operating loss at U.S. Foodservice in the first quarter of 2004 was EUR 58 million, compared to a loss of EUR 73 million in the first quarter of 2003. This improvement was largely due to currency impact and an increased leverage of fixed costs over a higher amount of sales in U.S. dollars. During the first quarter of 2004, U.S. Foodservice continued the process of improving the effectiveness of its procurement contracts and organization, as well as evaluating the profitability of its largest customer accounts. South America Net sales in the South American retail trade operations in Q1 2004 were EUR 336 million, compared to EUR 581 million in the same period last year. The decrease was primarily a result of the divestments of Santa Isabel in 2003 and Bompreco in March 2004. CTA loss and reversal of goodwill resulting from the divestment of Bompreco heavily impacted operating income. Operating income before impairment and amortization of goodwill and exceptional items decreased from EUR 2 million in Q1 2003 to an operating loss of EUR 1 million in Q1 2004. Asia Net sales in the Asian retail trade operations in Q1 2004 amounted to EUR 51 million, a decrease of 53.2% compared to Q1 2003. This decrease was primarily due to the divestments of the operations in Malaysia and Indonesia completed in September 2003 and the divestment of the Thai operations in March 2004. The operating loss increased from EUR 7 million to EUR 18 million due to exceptional losses in the form of CTA loss and reversal of goodwill related to the divestment of the Thai operations. Other activities Other activities mainly include operations of three real estate companies that acquire, develop and manage store locations in Europe and the U.S. and corporate overhead costs of the Ahold parent company. GERDAU: Enters New Phase in Gerdau Acominas Restructuring --------------------------------------------------------- The Gerdau Group has completed a new phase in restructuring the debts of Gerdau Acominas, the company responsible for its steelmaking operations in Brazil, with the placement of the second US$ 128 million tranche of its export receivable notes program. The program, with a total value of US$ 400 million, is secured with the company's future export sales. Market demand was 30% higher than the company's proposed starting price, and the notes are being purchased by international investment funds, North American insurance companies and global financial institutions. The second tranche bears interest of 7.321% p.a. and matures in April 2012 (eight years). The US$ 128 million will be amortized quarterly as of July 2006. The operation was rated "BBB-" by Fitch Ratings. "Despite the nominal cost of 7.321% p.a., the real cost of the operation was 6.798% p.a., because we contracted a parallel derivative instrument called a US Treasury Lock," said Osvaldo Schirmer, Executive Vice President for Finance and Director of Investor Relations. "This mechanism protects the company from fluctuations in the US government's debt instrument, which is the basis for the calculation of the final cost of the operation." The cost of the export receivable notes operation is 488 basis points below that of the Brazilian debt instrument of equivalent maturity, and 292 basis points above the rate for five year US Treasury notes. The first US$ 105 million tranche of the Gerdau Acominas S.A. export receivable notes program was placed in September 2003. In the first quarter of 2004, Gerdau mills in Brazil exported 714,000 metric tons of steel products, generating revenues of US$ 220 million. Export sales corresponded to 43.8% of sales by volume, which totaled 1.6 million metric tons. CONTACT: Press Office Tel: +55(51) 3323-2170 E-mail: imprensa@gerdau.com.br Web Site: www.gerdau.com.br =========== M E X I C O =========== BANSI: S&P Affirms Ratings; Outlook Stable ------------------------------------------ Standard & Poor's Ratings Services said Monday that it affirmed its 'B+/B' counterparty credit ratings on Bansi S.A. (Bansi). The outlook is stable. The ratings on Bansi consider the improvement in its credit portfolio performance during 2003 derived from collection improvement, and management experience in its market. Ratings are balanced by a still-high concentration of the business and assets with a small client base and a declining profitability trend. As of June 2003, Bansi's nonperforming loans (NPLs) represented 4% of the total credit portfolio and have been increasing from 2002. "Bansi has strengthened its credit policies and collecting efforts, implementing a stricter asset classification, and improving legal collecting procedures. This effort has been positive for the bank and has helped it to improve its asset quality," said Standard & Poor's credit analyst Silvia Ruiz. NPLs decreased almost 20% during the second half of 2003. For March 2004, the bank reached a relatively stable level of NPLs of 2.7%. Bansi expects to maintain NPLs less than 3%. The current reserve coverage is good, higher than 3x NPLs. Although the bank's activities are limited, they have been consistently well focused on a market niche of small and middle- market companies and high-income individuals, helping its market penetration. Management's knowledge, experience, and business contacts in the area have helped Bansi increase its customer base and expand its loans and deposits. Bansi maintains loan concentration by individuals and regions, which heightens the overall risk of its loan portfolio and its business. These concentrations are partly explained by the fact that the bank's operations are originated in only two cities of the country and because of the relatively small client base. Even though management is taking steps to expand its infrastructure and market reach, it does not expect this characteristic to change dramatically in the medium term. Like other banks in the system, Bansi faces a difficult operating environment characterized by still-low credit demand and decreasing margins. Management faces important challenges, such as controlling NPLs and operating costs growth, and it continues increasing its loan portfolio and deposits while focusing on recovering its previous profitability levels. ANALYSTS: Silvia Ruiz, Mexico City (52) 55-5081-4418 Angelica Bala, Mexico City (52) 55-5081-4405 Ursula M Wilhelm, Mexico City (52) 55-5081-4407 EL INDEPENDIENTE: Publication Suspended After Huge Losses --------------------------------------------------------- The Mexican government suspended publication of El Independiente newspaper Monday, saying the paper was no longer economically viable, relates Dow Jones Newswires. El Independiente is published by Nueva Perspectiva Editores, which is owned by Argentine businessman Carlos Ahumada, who was arrested in Cuba and deported to Mexico in April to face fraud charges. Following Ahumada's arrest, the government intervened the paper. However, the paper, which had been operating for just over a year, ran up liabilities of MXN240 million ($1=MXN11.4250) and losses of MXN156 million, leaving the government with no other choice but to suspend its publication. Meanwhile, the Finance Ministry said the managers of El Independiente, while deciding what to do with the newspaper, will attempt to "safeguard the interests and rights" of employees. Options for the paper include shutting it down, filing for bankruptcy, merging it or selling it, the ministry said. GRUPO IUSACELL: Presents Information on Syndicated Credit --------------------------------------------------------- Grupo Iusacell, S.A. de C.V. (NYSE: CEL - News; BMV: CEL) informed on June 11 that, in line with its disclosure in its annual reports for fiscal year 2002 filed in June 2003 with the Mexican Stock Exchange and the New York Stock Exchange (20-F), and in accordance with the terms of the US$266 million Amended and Restated Syndicated Credit Agreement (Syndicated Loan) dated March 29, 2001 entered into by its principal subsidiary, Grupo Iusacell Celular, S.A. de C.V., the maturity date for the total principal amount under this credit was to be accelerated to March 31, 2004 in the event that Grupo Iusacell Celular was unable to refinance by such date its US$150 million 10% senior notes due 2004. Grupo Iusacell Celular has not reached any agreement with the holders of its senior notes. Nonetheless, the company continues to work on the process of restructuring its indebtedness. Grupo Iusacell, S.A. de C.V. (NYSE: CEL - News; BMV: CEL) is a wireless cellular and PCS service provider in seven of Mexico's nine regions, including Mexico City, Guadalajara, Monterrey, Tijuana, Acapulco, Puebla, Leon and Merida. The Company's service regions encompass a total of approximately 92 million POPs, representing approximately 90% of the country's total population. CONTACT: Grupo Iusacell SA de CV Prolongacion Paseo, De La Reforma 1236 Mexico, D.F., 05348 Phone: (525) 109-4400 Web Site: http://www.iusacell.com.mx HYLSAMEX: To Raise $150M In Capital ----------------------------------- Mexican steelmaker Hylsamex informed Mexico City's bourse Monday that it is eyeing a US$150 million a capital increase, relates Business News Americas. Last week, the Company announced plans to propose to shareholders at a meeting scheduled for June 25, the issuance of up to 180 million special 'L' shares. 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. Hylsamex 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 SATMEX: Debt Accord With Creditors Nearing Completion ----------------------------------------------------- Satelites Mexicanos (Satmex) expects to conclude the almost 18- month long debt restructuring talks with its creditors soon. Insiders interviewed by local daily El Universal say that the favorable response gained by the company from national and foreign investors bodes well for the negotiations. Parties to the negotiations are currently discussing the possibility of surrendering all Satmex share to creditors. Such a move would prevent the company from going into bankruptcy and cancel its debts at the same time. Satmex's liabilities stand at US$555 mln, with US$320-million in bonds and US$205 million at floating interest rates. Bonds worth US$205 million are set to expire June 30, although the company has a 30-day grace period to make the payments. Aside from these debts, the company also owes the Mexican government around US$190mln. XIGNUX: S&P Affirms Ratings; Outlook Negative --------------------------------------------- Standard & Poor's Rating Services affirmed Monday its 'BB-' local and foreign currency corporate credit rating on Xignux S.A. de C.V. (Xignux). Standard & Poor's also affirmed the senior unsecured 'B+' ratings assigned to Xignux's notes due August 2004 and its notes due 2009. The outlook is negative. The ratings affirmation reflects the progress of Xignux's refinancing plan, particularly the successful exchange and issuance of new notes to meet the maturity of its notes due August 2004. The negative outlook reflects that the failure to successfully refinance the company's remaining debt maturities and to improve its key financial indicators could lead to a downgrade. "The ratings on Xignux (formerly Axa S.A. de C.V.) reflect its high leverage, the cyclical nature of some of its end-markets, and increasing costs as a result of the strength of the Mexican peso in recent years," said Standard & Poor's credit analyst Jose Coballasi. "The ratings also consider Xignux's significant market-share positions, product diversity, and vertical integration. Its emphasis on high quality has attracted world- recognized joint-venture partners, providing Xignux, a diversified holding company, with low-cost access to state-of- the-art technology and enhancement of its export possibilities." Xignux is a diversified holding company whose subsidiaries manufacture a variety of products, mostly for industrial markets. The company sells auto parts, chemicals, food, cable, foundry, power, and distribution transformers. The outlook is negative. Failure to successfully refinance the company's remaining debt maturities and to improve the company's key financial indicators during the year could lead to a downgrade. The successful refinancing of the company's short- term debt maturities and an improvement in the company's key and financial measures during the year could lead to a stable outlook. ANALYST: Jose Coballasi, Mexico City (52) 55-5081-4414 ================================= T R I N I D A D & T O B A G O ================================= CDC: Striking Workers To Appear Before Industrial Court ------------------------------------------------------- Striking workers at Caribbean Development Company (CDC) were scheduled to appear before the Industrial Court yesterday morning as part of their effort to seek an end to the ongoing lockout, says the Trinidad Guardian. The workers have asked the court to slap an injunction on the Company's decision to lock them out. CDC's management decided to lock workers out on May 24 after learning that on the previous day, workers voted to go on strike. The lockout action took place to protect the equipment and the plant. Members of the National Union of Government and Federated Workers (NUGFW) voted to go on strike demanding a 17% increase in salary, which is more than the Company's offer of a 12% hike. In addition, the workers demand a special bonus plan whereby workers will receive 50 cents on each saleable carton. Aside from the demands, the union is also objecting to CDC's proposal to include random drug testing in the collective agreement, as well as reduce the number of union officers at the plant. *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and Lucilo Junior M. Pinili, Editors. Copyright 2004. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is $575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *