/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040721.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, July 21, 2004, Vol. 5, Issue 143 Headlines A R G E N T I N A AGUAS ARGENTINAS: Signs Interim Debt Restructuring Agreement CENTRO DE ACCION: Enters Bankruptcy on Court Orders CROWS INTERNATIONAL: Will Liquidate Assets to Pay Debts DATA BASIC: Asks to Reorganize After Defaulting on Debt FARMACIA LUCERNA: Court Orders Liquidation FINCA DORADA: Enters Bankruptcy After Debt Default KOCH POLITO: Court Moves Assembly Date LACKROM GRAPHIC: Begins Bankruptcy on Court Orders LE BLUE: Judge OKs Bankruptcy Call LLOYDS TSB: Sells Businesses In Argentina, Colombia M.C. INGENIERA: Initiates Bankruptcy Proceedings SADEN S.A.: Seeks Insolvency Protection SARSIS S.A.: Files For Bankruptcy SITRA S.A.: Concludes Reorganization SORVET S.A.: Will Liquidate Assets to Pay Debts TECNOLASER S.A.: Verification Period Extended TITANIO S.A.: Begins Liquidation Proceedings B E R M U D A NORTHERN OFFSHORE: Provisional Bankruptcy Managers Named B R A Z I L ENRON: Bankruptcy Plan Confirmed; Ratings Withdrawn ENRON: Sells Stakes in Brazilian Gas Distributors to Gas Natural TELEMAR: STJ Rules in Favor of Company on Revenue Freeze VARIG: To Sign Code-Share Deal With TAP in October C H I L E TELEFONICA CTC: S&P's Comments on Mobile Unit's Sale TELEFONICA CTC: Aims to Up Broadband Subscriber Base E L S A L V A D O R BANCO DE COMERCIO: Fitch Affirms Ratings; Outlook to Stable J A M A I C A KAISER ALUMINUM: U.S. Court Confirms Noranda-Century Acquisition M E X I C O EMPRESAS ICA: To Get $17.1M From Panamanian Government GRUPO IMSA: Posts Second Quarter 2004 Results GRUPO IMSA: To Exit Automotive Battery Business GRUPO IUSACELL: Close to Bankruptcy, Says Director GRUPO MEXICO: Cananea Workers Threaten to Walk Off the Job GRUPO SIMEC: Gets Approval for Sidenor Acquisition GRUPO TMM: Posts Exchange Offer Info SATMEX: Faces Launch Delay, Possible Government Takeover VITRO: Pricing of $170M Notes From VENA P A R A G U A Y COPACO: Conatel Head Takes Over Amidst Accounting Scandal V E N E Z U E L A EDC: S&P Upgrades Ratings; Outlook Stable PDVSA: Moody's Issues Update on Situation - - - - - - - - ================= A R G E N T I N A ================= AGUAS ARGENTINAS: Signs Interim Debt Restructuring Agreement ------------------------------------------------------------ Aguas Argentinas (AASA) has signed an interim financial agreement with its private creditors* for a debt reduction through a partial debt repurchase and interest rate adjustment covering the period 2002 through 2004. This agreement takes effect immediately and remains in place through the end of 2004. The partial debt restructuring amounts to USD 145 million and comprises, on the one hand, a 35% discount on the repurchased debt total, without any increase in the commitments of AASA stakeholders. On the other hand, the agreement also provides for a reduction to 4% per annum in the interest rate paid during 2004. This agreement was reached two months after the signing of the interim agreement between AASA and the Government of Argentina. The interim agreement paves the way for sustained water and sanitation services during 2004 throughout the concession area and the completion of an investment program for expanded service to the poorest neighborhoods financed through the company's cash flow. Negotiations with the Government of Argentina and creditors are ongoing to provide for a return to sustained and normalized conditions for the concession area in early 2005. These negotiations aim to definitively solve the dispute between AASA and the Government of Argentina, which started in 2002. SUEZ (www.suez.com ) is an international industrial and services Group, active in sustainable development, providing companies, municipalities, and individuals innovative solutions in Energy and the Environment. SUEZ is listed on the Euronext Paris, Euronext Brussels, Luxembourg, Zurich and New York Stock Exchanges and is an official supporter of Paris 2012. *Private banks and multi-lateral financial institutions: International Finance Corporation, Inter-American Development Bank, and the European Investment Bank CONTACTS: SUEZ 16, rue de la Ville-l 'Evˆque 75383 PARIS Cedex 08 France Tel: +33 1 40 06 64 00 Webmaster: webmaster@suez.com PRESS: Press Department Tel: +33 1 40 06 66 51 / 68 Fax: +33 1 40 06 64 76 Press Officiers: Catherine Guillon, E-mail: catherine.guillon@suez.com Antoine Lenoir, E-mail: antoine.lenoir@suez.com CENTRO DE ACCION: Enters Bankruptcy on Court Orders --------------------------------------------------- Centro de Accion Mutual Personal del Estado entered bankruptcy protection after Salta Court No. 1 ordered the company's liquidation. The order transfers control of the company's assets to the court-appointed trustee who will supervise the liquidation proceedings. Infobae reports that the court selected accounting firm Estudio Cornejo & Gimenez as trustee. The firm will verify creditors' proofs of claims until the verification phase ends on August 13, 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 30, 2004 followed by the general report, due on November 15, 2004. CONTACT: Centro de Accion Mutual Personal del Estado (C.A.M.P.E.) Cordoba 660 Salta Estudio Cornejo & Gimenez Trustee General Guemes 1349 Salta CROWS INTERNATIONAL: Will Liquidate Assets to Pay Debts ------------------------------------------------------- Buenos Aires based bookstore Crows International S.A. will begin liquidating its assets after Judge Dieuzeide of the city's Court No. 1 declared the company bankrupt The ruling places the company under the supervision of court- appointed trustee, Ms. Marta Mabel Linares. Ms. Linares will verify creditors' proofs of claims until September 29, 2004. Infobae says that Banco Regional de Cuyo S.A. filed the liquidation petition after Crows International defaulted on a US$300,406.25 debt payment. CONTACT: Crows International S.A. Avenida Cordoba 1351 Buenos Aires Ms. Marta Mabel Linares, Trustee Parana 145 Buenos Aires DATA BASIC: Asks to Reorganize After Defaulting on Debt ------------------------------------------------------- Judge Kolliker Frers is currently studying the merits of Data Basic System S.A.'s request to reorganize. La Nacion recalls that the Company filed the petition after failing to pay its debts since December 31, 2004. Once approved in court, reorganization will allow the software development company to avoid bankruptcy by negotiating a settlement with its creditors. Dr. Yacante, Clerk No. 32, assists the court on this case. CONTACT: Data Basic System S.A. 3 de Febrero 3620 Buenos Aires FARMACIA LUCERNA: Court Orders Liquidation ------------------------------------------ Laboratorio Cuenca S.A. successfully sought the liquidation of Farmacia Lucerna S.C.S. after the troubled pharmacy was declared bankrupt. The creditor asked for the Company's bankruptcy after the latter failed to pay debts amounting to US$4,355.22. Judge Ottolenghi of Buenos Aires Court No. 4 assigned Mr. Gustavo Pagliere to supervise the liquidation as trustee. Creditors of the Company must submit their proofs of claim to the trustee before September 15, 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. Juarez, Clerk No. 7, assists the court on the case, which will culminate in the liquidation of all of its assets. CONTACT: Farmacia Lucerna S.C.S. Avenida Corrientes 6118 Buenos Aires Mr. Gustavo Pagliere, Trustee Tucuman 1428 Buenos Aires FINCA DORADA: Enters Bankruptcy After Debt Default -------------------------------------------------- The Buenos Civil and Commercial Tribunal Court No. 19 ordered the liquidation of Finca Dorada S.A. after the company defaulted on its obligations, Infobae reveals. The liquidation pronouncement effectively places the company's affairs as well as its assets under the control of Mr. Manuel Camilo Arias, the court-appointed trustee. Mr. Arias will verify creditors' proofs of claims until August 10, 2004. These claims will serve as basis for the individual reports to be submitted in court on September 22, 2004. The submission of the general report follows on November 4, 2004. Clerk No. 38 assists the court on this case, which will end with the disposal of the company's assets in favor of its creditors. CONTACT: Finca Dorads S.A. Gascon 246 Buenos Aires Mr. Manuel Camilo Arias, Trustee Conesa 3518 Buenos Aires KOCH POLITO: Court Moves Assembly Date -------------------------------------- Court No. 5 of Buenos Aires' Civil and Commercial Tribunal has moved the informative assembly for the Koch Polito y Compania S.A.I.C.A. y M. reorganization to November 11, 2004. Validated creditors will ratify the Company's completed settlement plan during the said assembly. CONTACT: Koch Polito y Compa¤ia S.A.I.C.A. y M. Brigadier Gral J. M. De Rosas 17 Buenos Aires LACKROM GRAPHIC: Begins Bankruptcy on Court Orders -------------------------------------------------- Buenos Aires Court No. 22, assisted by Clerk No. 44, declared local company Lackrom Graphic S.R.L. bankrupt after it defaulted on its debt payments, says Infobae. Ms. Marta Estela Acuna will oversee the Company's liquidation as the court-appointed trustee. She will verify the authenticity of claims presented by the company's creditors until September 15, 2004. After claims verification, the trustee will prepare individual reports based on the forwarded claims and submit them in court on October 27, 2004. A general report will also be submitted on December 9, 2004. CONTACT: Ms. Marta Estela Acuna, Trustee Combate de los Pozos 129 Buenos Aires LE BLUE: Judge OKs Bankruptcy Call ---------------------------------- Buenos Aires restaurant Le Blue S.R.L. was declared bankrupt after Judge Sala of the city's Court No. 14 approved a liquidation petition against the Company. Argentine daily La Nacion reports that Ms. Nelida Villareal, the company's creditor, filed the petition after the Company defaulted on a US$5,699.69 obligation. The court assigned Mr. Ricardo Paurici to supervise the liquidation as trustee. He will validate creditors' proofs of claims until September 22, 2004. Clerk No. 27, Dr. Aleman, assist the court with the proceedings. CONTACT: Le Blue S.R.L. Avenida Rivadavia 5499 Buenos Aires Mr. Ricardo Paurici, Trustee San Martin 793 Buenos Aires LLOYDS TSB: Sells Businesses In Argentina, Colombia --------------------------------------------------- Lloyds TSB Group announced Monday the sale of businesses in Argentina and Colombia. The sales continue the process started last year with the sale of The National Bank of New Zealand and the Group's operations in Brazil, and will allow the Group to concentrate on its core franchises. Lloyds TSB Group has agreed the transfer by its wholly owned subsidiary, Lloyds TSB Bank plc, of the business of its branch in Argentina, to Banco Patagonia Sudameris S.A. At 30 June 2004 the net assets to be transferred, as consolidated in the Group balance sheet, totalled approximately GBP8 million. The Group has also agreed the sale of its principal businesses in Colombia comprising its interests in Lloyds TSB Bank S.A. and in Lloyds Trust S.A. and certain offshore assets, to Primer Banco del Istmo, S.A. At 30 June 2004 the net assets of the businesses and the offshore assets to be sold totalled approximately GBP34 million. The transfers are subject to approval by the relevant regulatory authorities. Some GBP13 million of goodwill relating to the earlier acquisition of minority shares in the Colombian business is being written-off in the Lloyds TSB Group profit and loss account for the half-year to 30 June 2004. Upon completion, the net impact of the disposals to be recognised in the Group profit and loss account is not expected to be material. Eric Daniels, Lloyds TSB Group Chief Executive, said: "These transactions will further focus the Group on its main franchises, where we believe there are significant opportunities for growth." CONTACT: LLOYDS TSB GROUP PLC 25 Gresham St. London EC2V 7HN, United Kingdom Phone: +44 20 7626 1500 Fax: +44 20 7489 3484 Web site: http://www.lloydstsbgroup.co.uk Investor Relations Michael Oliver Director of Investor Relations Phone: +44 (0) 20 7356 2167 E-mail: michael.oliver@ltsb-finance.co.uk Ian Gordon Senior Manager, Investor Relations Phone: +44 (0) 20 7356 1264 E-mail: ian.gordon@ltsb-finance.co.uk Media Terrence Collis Director of Group Corporate Communications Phone: +44 (0) 20 7356 2078 E-mail: terrence.collis@lloydstsb.co.uk Mary Walsh Head of Media Relations Phone: +44 (0) 20 7356 2121 E-mail: mary.walsh@lloydstsb.co.uk M.C. INGENIERA: Initiates Bankruptcy Proceedings ------------------------------------------------ Court No. 7 of Buenos Aires' Civil and Commercial Tribunal declared MC Ingenieria y Construcciones S.A. "Quiebra," reports Infobae. Mr. Guillermo Alberto Ickowicz, acting as trustee, will verify creditors' claims until September 20, 2004 and then prepare the individual reports based on the results of the verification process. The individual reports will be submitted in court on November 2, 2004, followed by the general report on December 15, 2004. Clerk No. 14 assists the court on this case, which will close with the liquidation of the Company's assets to repay creditors. CONTACT: Mr. Guillermo Alberto Ickowicz, Trustee Talcahuano 768 Buenos Aires SADEN S.A.: Seeks Insolvency Protection --------------------------------------- Saden S.A., a medical services provider in Buenos Aires, asked for reorganization after failing to pay its liabilities after March 1 this year. The case is pending before Judge Sala of the city's Civil and Commercial Tribunal Court No. 14. Dr. Aleman, Clerk of Court No. 27, assists on this case. CONTACT: Saden S.A. Lavalle 482 Buenos Aires SARSIS S.A.: Files For Bankruptcy --------------------------------- Sarsis S.A. of Buenos Aires voluntarily filed for bankruptcy after failing to pay its obligations since 1994. The company will proceed with the liquidation of its assets once Judge Ferrario of the city's Court No. 6 approves this request. Dr. Sicoli, Clerk No. 11, assists the court on this case. CONTACT: Sarsis S.A. Bogota 2249 Buenos Aires SITRA S.A.: Concludes Reorganization ------------------------------------ The settlement plan proposed by Sitra S.A. for its creditors acquired the number of votes necessary for confirmation. As such, the plan has been endorsed by the court and will now be implemented by the company. Court No. 10 of Buenos Aires' Civil and Commercial Tribunal, assisted by Clerk No. 20, has jurisdiction over this case. CONTACT: Sitra S.A. Av. L N Alem 592, 9th. Fl. Buenos Aires SORVET S.A.: Will Liquidate Assets to Pay Debts ----------------------------------------------- Sorvet S.A. will begin liquidating its assets in compliance with the bankruptcy pronouncement issued by Buenos Aires Court No. 24, says Infobae. The order places the company under the supervision of court- appointed trustee, Mr. Hugo Edgardo Borgert. Mr. Borgert will verify creditors' proofs of claims until September 23, 2004. Afterwards, the validated claims will be presented in court as individual reports on November 5, 2004. The Trustee will also submit a general report, containing a summary of the company's financial status as well as relevant events pertaining to the bankruptcy, December 20, 2004. Clerk No. 47 assists the court on this case. CONTACT: Mr. Hugo Edgardo Borgert, Trustee Montevideo 665 Buenos Aires TECNOLASER S.A.: Verification Period Extended --------------------------------------------- The closing of the verification period for the Tecnolaser S.A. bankruptcy has been moved to August 13, 2004. Creditors are asked to submit their proofs of claims before this date to qualify for any post-liquidation payments to be made. Infobae reports that Mr. Fernando Ezequiel Aquilino, the trustee, will provide the court with individual reports on the claims on October 8, 2004. He will also present an audit of the Company's accounting and business records through a general report to be submitted on November 19, 2004. Buenos Aires Court No. 2, with the assistance of Clerk No. 4, has jurisdiction over this case. CONTACT: Mr. Fernando Ezequiel Aquilino, Trustee Lavalle 1459 Buenos Aires TITANIO S.A.: Begins Liquidation Proceedings -------------------------------------------- Titanio S.A., a company operating in Buenos Aires, will liquidate its assets after the city's Court No. 24 declared the company bankrupt. Infobae reveals that the bankruptcy process will proceed under the supervision of court-appointed trustee, Ms. Susana Luisa Erusalimsky. The trustee will review claims forwarded by the company's creditors until September 17, 2004. After claims verification, Ms. Erusalimsky will submit the individual reports for court approval on November 1, 2004. The general report presentation will follow on December 14, 2004. Clerk No. 48 assists the court on this case. CONTACT: Ms. Susana Luisa Erusalimsky, Trustee Espinosa 2501 Buenos Aires ============= B E R M U D A ============= NORTHERN OFFSHORE: Provisional Bankruptcy Managers Named -------------------------------------------------------- The Supreme Court of Bermuda named Mr. Mike Morrison from KPMG Financial Advisory Services Ltd. in Bermuda and Mr. Philip Wallace from KPMG LLP in the U.K. as provisional bankruptcy managers for Northern Offshore, reports Dow Jones. "Our aim, if achievable, is to negotiate a restructuring of the company's debt obligations. Meanwhile, we intend to work with the creditors and other stake holders of the company to preserve the assets of the company and the value of the Northern Offshore Group," Dow Jones quoted Morrison as saying. "I would stress that these appointments are to Northern Offshore Ltd., which is a holding company, and therefore the day-to-day operations of Northern Offshore Ltd.'s subsidiaries, which are not parties to the Bermuda proceedings, should not be affected," Morrison added. Represented by Norwegian trustee services company Norsk Tillitsmann ASA, bondholders earlier applied for liquidation proceedings in Bermuda, citing the Company's failure to pay interest on its Norwegian bond loans. Prior to this, the group tried to negotiate, but failed to reach an agreement with management. Northern Offshore Ltd. is a public limited company registered in Bermuda. The Company was founded in May 2000 and is engaged in providing drilling and production services to the offshore oil and gas industry. The Company's shares are traded on the Oslo Stock Exchange under ticker symbol NOF. Northern Offshore Ltd. is an extension of the offshore drilling and production business of Northern Offshore ASA, a public limited company registered in Norway. CONTACT: NORTHERN OFFSHORE LTD. PO Box HM 1593 Par-la-Ville Place, 4th Floor 14 Par-la-Ville Road Hamilton HMGX Bermuda Phone: +1 441 295 6178 Fax: +1 441 295 3494 Web site: http://www.northern.no/ =========== B R A Z I L =========== ENRON: Bankruptcy Plan Confirmed; Ratings Withdrawn --------------------------------------------------- Fitch Ratings withdrew its 'D' ratings for Enron Corp.'s unsecured debt and preferred securities following Monday's announcement that the U.S. Bankruptcy Court has confirmed Enron's amended plan of reorganization (POR). Enron's prior 'D' rating status reflected modest recoveries for senior unsecured creditors (originally estimated by Fitch within the 20%-40% bracket, and now expected to be in the lower end of the range). While POR confirmation is a significant step toward bankruptcy resolution, the confirmation order is subject to appeal and several outstanding issues will need to be settled before the effective date for the plan. In addition, sales are pending for Portland General Electric Co. (PGE) and for CrossCountry Energy, LLC (CrossCountry) the newly formed holding company for Enron's domestic natural gas investments. As a result, Enron-related risk continues to constrain or otherwise negatively affect the ratings of certain affiliates that are not debtors in Enron's bankruptcy, including PGE and CrossCountry subsidiaries; Northern Border Partners, L.P. (NBP), Northern Border Pipeline Co. (NBPL), and Transwestern Pipeline Co. (Transwestern). Recoveries under the POR vary for the different debtor Enron companies with the average recovery equal to roughly 20% of par. Under the POR, assuming the pending sales of PGE and CrossCountry are consummated, Enron's creditors will receive a combination of cash and equity in Prisma Energy International, Enron's international energy business. Based on current estimated sale prices, the proportion of cash to equity is expected to be 92% cash and 8% equity. On Nov. 18, 2003, Enron reached agreement to sell PGE for $2.35 billion to Oregon Electric Utility Company, LLC, an investment group backed by Texas Pacific Group, subject to regulatory approvals. Then, on June 24, 2004, Enron's bankruptcy judge approved the $2.35 billion bid of Southern Union Co. and GE Commercial Finance to purchase CrossCountry as the leading offer. The judge also approved a plan for a final auction that could result in higher proceeds. Written bids are due by Aug. 23, 2004. The bids will be opened on Sept. 1, 2004 and the winning bid awarded on Sept. 9. The sales of both PGE and CrossCountry could be completed by the end of 2004. While the credit picture for the affected affiliates has generally improved as bankruptcy risks have lessened, details on the ultimate ownership structures and long- term operating and financial plans remain uncertain and incomplete. Fitch will continue to follow the bankruptcy process and could take company specific rating action as outstanding issues are clarified or resolved. The third subsidiary, Prisma Energy has been formed to hold Enron's international infrastructure assets. None of the ratings assigned by Fitch to companies that are expected to be transferred into Prisma have been affected by the Enron bankruptcy and no rating actions are anticipated at this time as a result of this decision. Enron Corp. domestic affiliate ratings listed below: NBP --Senior unsecured debt 'BBB+'; --Rating Outlook Negative. NBPL --Senior unsecured debt 'A-'; --Rating Outlook Negative. PGE --Senior secured debt 'BBB-'; --Senior unsecured debt 'BB'; --Preferred securities 'B+'; --Rating Outlook Positive. Transwestern --Secured term loan and revolving credit facility 'BB'; --Senior unsecured debt (indicative) 'B+'; --Rating Watch Positive. CONTACT: Ralph Pellecchia +1-212-908-0586, New York Philip Smyth, CFA +1-212-908-0531, New York MEDIA RELATIONS: Brian Bertsch +1-212-908-0549, New York ENRON: Sells Stakes in Brazilian Gas Distributors to Gas Natural ---------------------------------------------------------------- Spain's Gas Natural SDG has wrapped its US$160-million purchase of stakes in Brazilian distributors CEG and CEG Rio from US company Enron, reports Business News Americas. Through its subsidiary, Gas Natural Internacional, the Spanish company now owns 54.2% of CEG and 72% of CEG Rio. TELEMAR: STJ Rules in Favor of Company on Revenue Freeze -------------------------------------------------------- Mr. Edson Vidigal, president of Brazil's federal appeals court STJ, suspended a decision by the regional federal court TRF to freeze 1% of telecom operator Telemar Norte Leste's operational revenue, says Business News Americas. The ruling grants an appeal by Telemar, which contended that such measure will cause irreparable damage. The suspension will remain in effect pending a review by the second circuit STJ. The TRF's decision to freeze 1% of Telemar's revenues came at the behest of the National Institute of Social Security (INSS). Telemar said that in September 2003, it presented documents detailing real estate and property titles in excess of BRL74 million (US$24.7 million) along with certificates of deposit (CDs) and treasury notes. However, the INSS refused to analyze the documents and reiterated its request for a revenue freeze. CONTACT: Mr. Kevin Kirkeby Global Consulting kkirkeby@hfgcg.com Tel: 1 646.284.9416 TNE - INVESTOR RELATIONS invest@telemar.com.br Web Site: www.telemar.com.br VARIG: To Sign Code-Share Deal With TAP in October -------------------------------------------------- Brazilian airline Varig and TAP-Air Portugal will enter into a code-share deal for their flights this coming October, according to an O Globo report. The deal will be signed in Portugal by Varig Vice-Chairman Alberto Fajerman, TAP Chairman Fernando Pinto and TAP Vice- Chairman Luiz da Gama Mor. With the deal, passengers of both companies (Lisbon, Rio de Janeiro, Sao Paulo and the Brazilian Northeast capital routes) will use the same terminals and lounges and share and accumulate the benefits of the mileage program. The new deal takes place amid rumors that TAP is looking to take a 20% stake in Varig. The companies have earlier denied such rumors. CONTACT: VARIG (Viacao Aerea Rio-Grandense, S.A.) Rua 18 de Novembro No. 800, Sao Joao 90240-040 Porto Alegre, Rio Grande do Sul, Brazil Phone: (51) 358-7039/7040 (51) 358-7010/7042 Fax: +55-51-358-7001 Home Page: www.varig.com.br/english/ Contacts: Dorival Ramos Schultz, EVP Finance and CFO E-mail: dorival.schultz@varig.com.br Investor Relations: Av. Almirante Silvio de Noronha, n 365-Bloco "B" - s/458 / Centro Rio de Janeiro, Brazil ========= C H I L E ========= TELEFONICA CTC: S&P's Comments on Mobile Unit's Sale ---------------------------------------------------- Compania de Telecomunicaciones de Chile S.A. (CTC; BBB/WatchNeg/--), the largest Chilean telecommunications operator, announced that its shareholders approved the sale of Telefonica M¢vil de Chile S.A. to Telef¢nica M¢viles (TEM) with a 69.1% acceptance. The approval was given assuming that, on top of its original proposal, TEM also agrees to bear the taxes of the transaction for an amount up to $51 million. The materialization of the transaction will require the acceptance by the buyer of the matters approved at the shareholders' meeting. The changes introduced to the transaction are not material from a credit perspective. Therefore, Standard & Poor's Ratings Services expects to affirm its ratings on CTC upon final approval of the transaction. ANALYSTS: Ivana Recalde, Buenos Aires (54) 114-891-2127 Marta Castelli, Buenos Aires (54) 114-891-2128 TELEFONICA CTC: Aims to Up Broadband Subscriber Base ---------------------------------------------------- Telefonica CTC will concentrate on broadband services, Chilean daily El Mercurio reports, citing Chief Executive Claudio Munoz. According to the daily, the Company is looking to more than triple the number of its broadband customers to over 500,000 by 2006 from the present 160,000. The Company, Chile's dominant fixed-line telecom with some 80% of installed lines, also has the largest share of broadband connections with 41%. 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 ===================== E L S A L V A D O R ===================== BANCO DE COMERCIO: Fitch Affirms Ratings; Outlook to Stable ----------------------------------------------------------- Fitch Ratings affirmed Banco de Comercio de El Salvador's (BanCo) ratings at long-term foreign currency 'BB', short-term foreign currency 'B', individual 'D', and support '5'. The Rating Outlook on the long-term foreign currency rating has been changed to Stable from Negative. The change in Rating Outlook is based on the bank's gradually improving asset quality and profitability. The ratings also reflect the bank's position within the local market as the fourth largest bank in El Salvador and its well-diversified client base but also high levels of non-earning assets as a proportion of equity. Established in 1949, BanCo is the fourth largest bank in the Salvadorian financial system with an 11.7% asset market share at the end of March 2004. The bank's consolidated subsidiaries are companies involved in securities brokerage, credit card administration, factoring and leasing, and remittances. BanCo has traditionally served the corporate market, although in recent years it has expanded into consumer and mortgage lending. The Belismelis Group, which also has sizable investments in the insurance and other economic sectors, controls a significant stake in the bank's equity. CONTACT: Akiko Kudo +1-212-908-0819, New York Gustavo Lopez +1-212-908-0853, New York Larisa Arteaga +011 503 263 1300, El Salvador MEDIA RELATIONS: James Jockle +1-212-908-0547, New York ============= J A M A I C A ============= KAISER ALUMINUM: U.S. Court Confirms Noranda-Century Acquisition ---------------------------------------------------------------- Noranda Inc. (NYSE:NRD)(TSX:NRD) and Century Aluminum Company ("Century") announced Monday that a U.S. bankruptcy court approved the May 17 agreement for their subsidiaries to buy the Gramercy alumina refinery in Louisiana and an interest in the St. Ann bauxite mine in Jamaica from Kaiser Aluminum & Chemical Corporation ("Kaiser") for US$23 million, subject to certain closing adjustments. Noranda and Century each own a 50% interest in Gramercy Alumina LLC and St. Ann Bauxite Limited. "We are very pleased with the Court's decision and are eager to implement our business plan with our joint-venture partner," said Bill Brooks, President of Noranda's Aluminum business. "This transaction secures long-term supplies of raw materials for our New Madrid, Missouri primary aluminum reduction facility and provides us with the benefits of a fully-integrated aluminum business, from bauxite all the way through to value-added foil products. The transaction complements the continuing ramp-up of our recently-modernized aluminum foil business where we are achieving production records quarter after quarter." Bauxite Mining Assets Kaiser owns a 49% partnership interest in the bauxite mine ("Kaiser Jamaica Bauxite Co.") and the remaining 51% is owned by the Government of Jamaica. The mine supplies bauxite ore to the Gramercy facility. Gramercy Refinery The Gramercy refinery has the capacity to produce 1.25 million tonnes of alumina per year. Noranda and Century each purchase approximately 500,000 tonnes of alumina per year for their respective primary aluminum reduction plants in New Madrid and Hawesville, Kentucky. The Gramercy refinery was extensively modernized between 2000 and 2002. The related St. Ann bauxite mining and processing operations in Jamaica began in 1967 and currently have a capacity of approximately four million tonnes per year. Noranda operates an aluminum reduction smelter in New Madrid with a capacity of 250,000 tonnes annually. The smelter has procured substantially all of its alumina requirements from the Gramercy alumina refinery due to the Mississippi River location of the New Madrid smelter and the Gramercy refinery, which facilitates logistics and transportation. Noranda Inc. is a leading copper and nickel company with investments in fully-integrated zinc and aluminum assets. It employs 15,000 people at its operations and offices in 18 countries and is listed on The New York Stock Exchange and The Toronto Stock Exchange (NRD). Century Aluminum Company owns 615,000 metric tons of annual primary aluminum capacity. The company owns and operates plants at Hawesville, KY, Ravenswood, WV and at Grundartangi, Iceland. It also owns a 49.67-percent interest in a plant at Mt. Holly, SC. Century's corporate offices are located in Monterey, CA. =========== M E X I C O =========== EMPRESAS ICA: To Get $17.1M From Panamanian Government ------------------------------------------------------ The Conciliation Court of the Chamber of Commerce and Industry of Panama ruled that the government must pay US$17.1 million to the Mexican group Ingenieros Civiles Asociados (ICA) for damages it caused during the construction of a highway located in the country's capital city, reports Notimex. ICA, Mexico's biggest construction company, filed the lawsuit in 1999 requesting that it be awarded US$134 million as compensation for damages it suffered after the Panamanian government decided to change the route of the Corredor Sur highway, which required US$222 million in investments. ICA claimed that the Panamanian government committed a breach on its original contract when it modified the route and thus caused major financial losses. Additionally, the government also did not fully hand over land of a former Panama City airport that was to be used as part of the payment. The Minister of Public Works (MOP) of Panama accepted the court's resolution as fair, unsurprisingly after it originally offered ICA US$19 million. CONTACT: Empresas ICA Sociedad Controladora SA de CV Mineria No. 145, Edificio Central 11800 Mexico, D.F., Phone: (212) 688-6840 Email: jose.guerrero@ica.com.mx Web Site: http://www.ica.com.mx/ GRUPO IMSA: Posts Second Quarter 2004 Results --------------------------------------------- Grupo Imsa, S.A. de C.V. (NYSE:IMY) announced Monday results for the second quarter of 2004. Unless otherwise stated, all figures are presented in millions of June 30, 2004 pesos (Ps), or in millions of nominal U.S. dollars(a) (US$). Second Quarter 2004 Highlights -- Second quarter revenues of all four business segments rose. Total sales reached a historic quarterly maximum of Ps 10,589, an increase of 34.3% year-over-year and of 20.4% quarter-over- quarter. In dollar terms, revenues grew 32.3% compared to the second quarter of 2003 to a total of US$930. -- IMSA ACERO's second quarter 2004 sales volume was 10.2% higher than that of the same quarter of 2003. -- Operating expenses as a percent of sales were 8.1% in second quarter 2004, down from 11.0% in second quarter 2003. -- Operating income for second quarter 2004 reached a historic quarterly maximum of Ps 1,345, an increase of 101.3% compared to the same period of 2003 and of 115.9% quarter-over-quarter. In dollar terms, operating income grew 101.7% compared to second quarter 2003 to US$119. -- Second quarter EBITDA also reached a historic maximum, totaling Ps 1,738, 69.7% above that of the same period of 2003 and 72.4% more than first quarter 2004. In dollar terms, EBITDA grew 69.6% compared to the second quarter of 2003 to US$153. -- Grupo Imsa's net debt was reduced by US$16 in the second quarter of 2004, and by US$130 during the past twelve months. -- Net interest coverage -- defined as EBITDA divided by net interest expense -- was 16.2 times for the past twelve months, while leverage -- defined as total debt divided by EBITDA -- was 2.1 times. -- Grupo Imsa and Johnson Controls formalized an agreement whereby Grupo Imsa will exit the automotive battery business and Johnson Controls, its JV partner since 1998, will assume 100% ownership. Web site: http://www.grupoimsa.com GRUPO IMSA: To Exit Automotive Battery Business ----------------------------------------------- Grupo Imsa, S.A. de C.V. (BMV:IMSA) (NYSE:IMY) and Johnson Controls, Inc. (NYSE:JCI) announced Monday an agreement whereby Grupo Imsa will exit the automotive battery business and Johnson Controls, its JV partner since 1998, will assume 100% ownership. Grupo Imsa will obtain US$525 million, which includes absorption of debt by JCI, for its ownership of the automotive battery business. The primary use of the proceeds obtained from this transaction will be used to pay debt. This transaction is expected to close once the approval of the regulatory authorities is granted. Mr. Eugenio Clariond, CEO of Grupo Imsa, said, "Over the last six years, we have worked in a very close and friendly relationship with Johnson Controls in order to build a strong automotive battery business, achieve lower costs, a more efficient operation and increase our market share in both the North and South American markets while at the same time protecting the environment according to our commitment with the principles of Sustainable Development. These accomplishments have led to better results year after year since the joint venture started. We at Grupo Imsa are applying the best of these experiences throughout our organization. This business will create more value as a wholly owned subsidiary of Johnson Controls who is the world's automotive battery leader. For Grupo Imsa this transaction represents an opportunity to exit the battery business at the right time and to look for opportunities to create value for its shareholders and further strengthen its balance sheet." Grupo Imsa, a holding company, dates back to 1936 and is today one of Mexico's leading diversified industrial companies, operating in four businesses: steel processed products; automotive batteries and related products; steel and plastic construction products; and aluminum and other related products. Grupo Imsa operates manufacturing and distribution facilities in Mexico, the United States, Europe and throughout Central and South America. In 2003 the Company's sales reached US$2.8 billion, of which close to 55% was generated outside Mexico. Grupo Imsa shares trade on the Mexican Stock Exchange (IMSA) and, in the United States, on the NYSE (IMY). Johnson Controls is a global market leader in automotive systems and facility management and control. In the automotive market, it is a major supplier of integrated seating and interior systems, and batteries. For nonresidential facilities, Johnson Controls provides control systems and services including comfort, energy and security management. Johnson Controls (NYSE:JCI), founded in 1885, has headquarters in Milwaukee, Wisconsin. GRUPO IUSACELL: Close to Bankruptcy, Says Director -------------------------------------------------- Grupo Iusacell (NYSE: CEL) is teetering on the edge of bankruptcy, a director at the ailing Mexican wireless telco admitted to local newspaper Reforma. In an interview with the daily, Iusacell finance director Jose Luis Riera said: "The reality is that any creditor could ask the firm to seek bankruptcy protection... what is happening is that the short-term debts are more than the capital. The accumulated losses exceed the capital." But the director is confident that the Company will be able to restore its financial health once it implements its business plan. The Company carries a US$350 million bond maturing in 2006, a US$266 million syndicated credit and another US$150 million in additional debts. CONTACTS: Grupo Iusacell SA de CV Prolongacion Paseo, De La Reforma 1236 Mexico, D.F., 05348 Phone: (525) 109-4400 Web Site: www.iusacell.com.mx GRUPO MEXICO: Cananea Workers Threaten to Walk Off the Job ---------------------------------------------------------- Mexican copper mining company Grupo Mexico SA faces yet another looming strike, Dow Jones Newswires indicates. Workers at the Company's Cananea complex, Mexico's largest copper mine, are reportedly making the same demands as the workers at Grupo Mexico's La Caridad mine, who entered their second week of protest. Talks between the Company and union officials are ongoing. But according to a spokesman for the local chapter of the National Mining, Metallurgical and Similar Workers Union, a strike has been called unless an agreement is reached. Dow Jones recalls that workers at La Caridad went on strike last Monday demanding profit-sharing, payment of overtime and temporary promotions, as well as improved safety measures and a return in the size of work crews to between 11 and 14 workers from the current six or seven. Juan Rebolledo, Grupo Mexico's vice president for international relations, said the Company considers the demands to be "solvable." CONTACT: Mr. German Larrea Mota Velasco Chairman & CEO GRUPO MEXICO Av. Baja California No. 200 Colonia Roma Sur 06760 Mexico, D.F. Tel. Conm. 52 (55) 5080-0050 GRUPO SIMEC: Gets Approval for Sidenor Acquisition -------------------------------------------------- Grupo Simec, S.A. de C.V. (Amex: SIM - News; "Simec") announced Monday, that the Mexican Comision Federal de Competencia (Federal Commission of Competition) notified Industrias CH, S.A. de C.V. ("ICH") and Simec, of its authorization to acquire the Mexican steel-making facilities of Industrias Ferricas del Norte, S.A. (Grupo Sidenor). Simec expects the acquisition to close during the third quarter of 2004. The acquisition will be financed with internally generated resources of Simec and borrowings from ICH. Simec will not acquire any liabilities as part of this acquisition (other than seniority premiums associated with certain employees) and, as a result, will maintain its solid financial structure, free of indebtedness. Simec expects this acquisition to substantially increase its installed capacity, sales and net income. The acquisition will be made by Simec and its subsidiaries due to the greater synergy and economies of scale between Simec's plants in Mexicali and Guadalajara and Grupo Sidenor's plants in Apizaco, Tlaxcala and Cholula, Puebla. CONTACT: Grupo Simec SA de CV Calzada Lazaro Cardenas #601 Guadalajara Jalisco, 44440, Email: simecweb@prodigy.net.mx Web Site: http://www.simec.com.mx GRUPO TMM: Posts Exchange Offer Info ------------------------------------ Grupo TMM, S.A. (NYSE: TMM and BMV: TMM A; "TMM") announced that as of 5:00 p.m., New York City time, on July 16, 2004, the Company has achieved acceptance of approximately 94.85 percent of the company's outstanding 2003 notes, or $167,771,000 principal amount, and approximately 96.35 percent of the outstanding 2006 notes, or $192,657,000 principal amount for its exchange offer and consent solicitation for its 9« percent senior notes due 2003 and 10¬ percent senior notes due 2006. The exchange offer is being conducted to implement the previously announced restructuring of the existing notes. The exchange offer is conditioned upon, among other things, receipt of valid tenders (including exchanges pursuant to the voting agreements) representing at least 98 percent of the outstanding principal amount of the 2003 notes and at least 95 percent of the outstanding principal amount of the 2006 notes. The exchange offer will expire at, and the ballots for the pre- packaged plan must be received by, 5:00 p.m., New York City time, on Thursday, July 22, 2004, unless extended. Holders whose consents are validly received may not withdraw any existing notes once they are tendered, except under limited circumstances. Questions regarding the proposed restructuring should be directed to Mr. Martin F. Lewis and Ronen Bojmel of Miller Buckfire Lewis Ying & Co., LLC, Company Financial Advisors or Alan D. Fragen and Oscar A. Mockridge of Houlihan Lokey Howard & Zukin Capital, the Ad Hoc Bondholders' Committee's financial advisor. Akin Gump Strauss Hauer & Feld LLP is legal counsel to the Ad Hoc Bondholders' Committee. This announcement is neither an offer to purchase nor a solicitation of an offer to sell Grupo TMM Notes. The exchange offer and consent solicitation, when made, will not be made to, nor will tenders be accepted from, or on behalf of, holders of Existing Notes in any jurisdiction, in which the making of exchange offers and consent solicitations or the acceptance thereof would not be in compliance with the laws of such jurisdiction. In any jurisdiction where securities, blue sky laws or other laws require exchange offers and consent solicitations to be made by a licensed broker or dealer, the exchange offers and consent solicitations will be deemed to be made on behalf of Grupo TMM by the dealer manager or one or more registered brokers or dealers licensed under the laws of such jurisdiction. Headquartered in Mexico City, Grupo TMM is a Latin American multimodal transportation company. Through its branch offices and network of subsidiary companies, Grupo TMM provides a dynamic combination of ocean and land transportation services. Grupo TMM also has a significant interest in TFM, which operates Mexico's Northeast railway and carries over 40 percent of the country's rail cargo. Grupo TMM's web site address is www.tmm.com.mx and TFM's web site is www.tfm.com.mx. CONTACTS: Mr. Martin F. Lewis Miller Buckfire Lewis Ying & Co., LLC 250 Park Avenue New York, New York 10177 Phone: 001-(212)-895-1805 E-mail: martin.lewis@mbly.com or Mr. Ronen Bojmel Miller Buckfire Lewis Ying & Co., LLC 250 Park Avenue New York, New York 10177 Phone: 001-(212)-895-1807 E-mail: ronen.bojmel@mbly.com or Mr. Alan D. Fragen Houlihan Lokey Howard & Zukin Capital 1930 Century Park West Los Angeles, California 90067 Phone: 001-(310)-788-5338 E-mail: afragen@hlhz.com or Mr. Oscar A. Mockridge Houlihan Lokey Howard & Zukin Capital 685 Third Avenue New York, New York 10017 Phone: 001-(212)-497-4175 E-Mail: omockridge@hlhz.com SATMEX: Faces Launch Delay, Possible Government Takeover -------------------------------------------------------- Satelites Mexicanos' (Satmex) money troubles has hampered the launch of its new satellite and exposed the company to a possible government take-over. El Universal reports that the embattled satellite company will have to enter a government supervised restructure if it is to raise the US$50 million needed to launch Satmex 6. The company's recent difficulties in restructuring its debt have increased operating costs and will delay the satellite's launch. A timely launch is crucial for the Company at this point because a delay could mean the loss of some clients and hurt Satmex's chance to improve its bottom line. Satmex's net loss jumped to US$79.2 million at the end of last year compared to just US$20 million in 2002. Further, Company authorities admit that the government could take over the firm if Servicios Corporativos Satelitales, its controlling company, fails to pay off its debt to the state. VITRO: Pricing of $170M Notes From VENA --------------------------------------- Vitro, S.A. de C.V. announced Monday that its subsidiary Vitro Envases Norteamerica S.A. de C.V. ("VENA"), Vitro's glass containers division, has agreed to sell US$170 million aggregate principal amount of 10.75% senior secured guaranteed notes due 2011 (the "Notes"). The closing of this sale is expected to occur on July 23, 2004. VENA intends to use the proceeds of the issuance to repay existing indebtedness. The Notes will be issued by VENA and guaranteed by VENA's principal Mexican subsidiaries and Vitro Packaging, VENA's trading company in the United States. The Notes will be secured by first priority liens on most of VENA's and its subsidiaries' assets. The Notes have not been, and will not be, registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes. Vitro, through its subsidiary companies, is one of the world's leading glass producers. Vitro is a major participant in three principal businesses: flat glass, glass containers and glassware. Vitro serves multiple product markets, including construction and automotive glass; food and beverage, wine, liquor, cosmetics and pharmaceutical glass containers; glassware for commercial, industrial and retail uses, and aluminum containers. Founded in 1909 in Monterrey, Mexico based Vitro has joint ventures with major world-class partners and industry leaders that provide its subsidiaries with access to international markets, distribution channels and state-of-the-art technology. Vitro's subsidiaries have facilities and distribution centers in eight countries, located in North, Central and South America, and Europe, and export to more than 70 countries worldwide. CONTACTS: Media Monterrey Mr. Albert Chico Smith Vitro, S. A. de C.V. +52 (81) 8863-1335 achico@vitro.com Media Mexico D.F. Mr. Eduardo Cruz Vitro, S. A. de C.V. +52 (55) 5089-6904 ecruz@vitro.com Financial Community Ms. Beatriz Martinez or Mr. Alejandro Doehner Vitro, S. A. de C.V. +52 (81) 8863-1210 bemartinez@vitro.com adoehner@vitro.com Web Site: www.vitro.com =============== P A R A G U A Y =============== COPACO: Conatel Head Takes Over Amidst Accounting Scandal --------------------------------------------------------- Mr. Omar Ramos will take over the helm of Paraguay's state telecom outfit Copaco after accounting irregularities led to the ouster of the Company's former president. La Nacion says that the Paraguayan government fired Copaco President Juan Francisco Godoy over allegations that he was involved in a dubious US$9 million join venture contract with Citsa, a local infrastructure firm. The report adds that this project was already part of a pre-existing US$122 million contract. State auditors have also looked into the network digitalization and rural mobile telephony projects awarded to Siemens and Ericsson. The audit highlighted Copaco's use of the direct sale model in awarding the contracts. Questions about the Ericsson contract were also raised because its local agent, DC Ingenieria, has ties with Paraguay's vice-president Luis Castiglioni. Mr. Ramos served as chief of telecom regulator Conatel before the recent appointment. Mr. Luis Antonio Reinoso will replace him when he assumes his new post. ================= V E N E Z U E L A ================= EDC: S&P Upgrades Ratings; Outlook Stable ----------------------------------------- Standard & Poor's Ratings Services raised its foreign currency corporate credit rating on C. A. La Electricidad de Caracas (EDC) to 'B-' from 'CCC+'. The outlook is now stable. The rating action reflects the ability of EDC to operate in Venezuela, which faces foreign currency controls and macroeconomic volatility. As EDC's financial performance is more than adequate for the rating category, its ratings are closely correlated with the sovereign ratings assigned to Venezuela and the macroeconomic environment in which the company operates. The ratings on EDC have been so far strongly constrained by the country's foreign currency control exercised by Comision de Administracion de Divisas (CADIVI), a federal body established on February 2003 to control the country's currency balances, and the uncertainties about the risks CADIVI could bring on EDC's foreign currency repayment capacity. In 2003, funds from operations (FFO) to interest coverage was 2.94x, up from 1.93x in 2002, while FFO to total debt was 39.3%, up from 17.7% during the same period. EDC also has been able to keep its profit margin at adequate levels, as EBITDA margin has been over 47% in the last five years (58.9% in 2003). EDC also counts on historical cash reserves of about US$200 million (about US$250 million in March 2004), which is a cushion to any unexpected events and improves the company's financial flexibility. Standard & Poor's expects EDC to continue presenting those cash holdings as a way to partially overcome a possible liquidity crisis. EDC is a vertically integrated utility in Venezuela, operating in electricity distribution, transmission, and generation in the capital city of Caracas and its metropolitan area. It is the largest private electric utility in the country and is owned by U.S.-based AES Corp. PDVSA: Moody's Issues Update on Situation ----------------------------------------- In its latest report about Petroleos de Venezuela (PDVSA), Moody's said the Venezuelan state oil company exemplifies many of the more difficult trends some Latin American oil companies are currently facing. "Challenges include a government with a leftist tilt exercising increasing interference in PDVSA's operations, the potential for political instability and civil unrest in the face of the looming presidential referendum, an uncertain outlook for internal production growth, and questions over the ability to attract foreign investment," says Moody's Senior Vice President Thomas Coleman. However, PDVSA is likely to have record year for cash flow in 2004. Moody's is projecting US$12 billion of cash flow from operations, and free cash flow in the area of US$3.5 billion. On the other hand, it is not clear production has recovered fully since the 2003 strike, Venezuela could face political turmoil after the August 15 recall referendum on President Chavez, and the government continues to tap PDVSA's cash flow to fund social development programs. "PDVSA's Caa1 ratings - equal to the sovereign rating for Venezuela - primarily relates to political risk, rather than current financial performance or balance sheet leverage concerns," says Coleman. *********** 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. 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