/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040901.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, September 1, 2004, Vol. 5, Issue 173 Headlines A R G E N T I N A CLINICA PRIVADA: Liquidating Assets to Pay Debts CONCESION OESTE: Court OKs Creditor's Bankruptcy Call CRESUD: Reduces Debt by $88,139 DECANO INDUSTRIAL: Initiates Bankruptcy Proceedings GAS TRELEW: Asks Court to Grant Reorganization Petition IANSON S.A.: Court Grants Reorganization Plea INTERCARPA S.A.: Seeks Reorganization Approval From Court MIGUEL GONZALEZ: Court Converts Bankruptcy to Reorganization MULTICANAL: 30 Days to Fix Debt Deal Glitches, Says U.S. Judge NUROGA S.A.: Court Declares Company Bankrupt SCP: Bourse Resumes Trading After Getting Court Ruling Info SIDERFER: Court Reschedules Insolvency Proceedings SUIPACHA 732: Court Favors Creditor's Bankruptcy Petition SUYMA S.A.: Court Orders Liquidation TRESDE S.R.L.: Court Orders Liquidation TRI-ECO S.A.: Gears for Reorganization B E R M U D A FOSTER WHEELER: Extends Debt Offer; Minimum Thresholds Not Met B R A Z I L BRASKEM: To Launch $306M Share Issue This Month NET SERVICOS: Transfers Full Interest in Vicom to Comsat TELEMAR: Trades Shares on a Grouped Basis UNIBANCO: Creates Credit Company with Sonae UNIBANCO: Ratings Unaffected By Partnership, Says S&P C H I L E ENERSIS: Exchange Offer to Expire Friday C O L O M B I A AVIANCA: Returns to Profitability in the Seven Months of 2004 M E X I C O ALFA: Subsidiary Expands Latin American Presence SATMEX: No More Pressure From SCT UNITED RENTALS: SEC Opens Inquiry, S & P Changes Ratings V E N E Z U E L A EDC: Considers Paying Dividends PDVSA: President Remains Silent Amid Shell Argentina Rumors - - - - - - - - ================= A R G E N T I N A ================= CLINICA PRIVADA: Liquidating Assets to Pay Debts ------------------------------------------------ Clinica Privada Haedo S.A. will begin liquidating its assets following the bankruptcy pronouncement issued by the Court No. 23 of Buenos Aires' civil and commercial tribunal, reports Infobae. The bankruptcy ruling places the company under the supervision of court-appointed trustee, accounting firm "Estudio Adolfo Cervantes y Asociados". The trustee will verify creditors' proofs of claims until October 29, 2004. The validated claims will be presented in court as individual reports on December 10, 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, on February 23 next year. CONTACT: Clinica Privada Haedo S.A. Campana 2315 Buenos Aires "Estudio Adolfo Cervantes y Asociados" - Trustee Avda Luis Maria Campos 1001 Buenos Aires CONCESION OESTE: Court OKs Creditor's Bankruptcy Call ----------------------------------------------------- Concesion Oeste S.R.L. entered bankruptcy after Judge Chomer of Buenos Aires' civil and commercial tribunal Court No. 10 approved a bankruptcy motion filed by Mr. Walter Borghiani. La Nacion reports that the Company's failure to pay US$11,377.20 in debt prompted the bankruptcy petition. Working with Dr. D'Alesandri, Clerk No. 19, the court assigned Mr. Jorge Ceballos as trustee for the bankruptcy process. The trustee's duties include the authentication of the Company's debts and the preparation of the individual and general reports. Creditors are required to present their proofs of claims to the trustee before October 14, 2004. The Company's assets will be liquidated at the end of the bankruptcy process to repay creditors. Payments will be based on the results of the verification process. CONTACT: Concesion Oeste S.R.L. Guamini 2131 Buenos Aires Mr. Jorge Ceballos, Trustee Aguaribay 6736 Buenos Aires CRESUD: Reduces Debt by $88,139 ------------------------------- By a letter dated August 27, 2004, Cresud S.A.C.I.F. y A reported that a holder of the Company's Convertible Notes exercised its conversion rights. Hence, the financial indebtedness of the Company shall be reduced in US$ 88,139 and an increase of 173,570 ordinary shares face value pesos 1 (V$N 1) each was made. The conversion was performed according to terms and conditions established in the prospectus of issuance at the conversion rate of 1.96928 shares, face value pesos 1 per Convertible Note of face value US$ 1. As a result of that conversion the amount of shares of the Company goes from 150,772,819 to 150,946,389. On the other hand, the amount of registered Convertible Notes is US$ 43,045,014. CONTACT: Cresud S.A.C.I.F. y A Av. Roque Saenz Pena 832 8th Fl. Buenos Aires Argentina Phone: 001-54-1-3287808 DECANO INDUSTRIAL: Initiates Bankruptcy Proceedings --------------------------------------------------- Court No. 1 of Buenos Aires' civil and commercial tribunal declared local company Decano Industrial S.A. "Quiebra," reports Infobae. The city's Clerk No. 1 assists the court on the case, which will close with the liquidation of the Company's assets to repay creditors. Mr. Tito Jorge Gargaglione, who has been appointed as trustee, will verify creditors' claims until October 27, 2004. CONTACT: Mr. Tito Jorge Gargaglione, Trustee Medrano 833 Buenos Aires GAS TRELEW: Asks Court to Grant Reorganization Petition ------------------------------------------------------- Gas Trelew S.A., a company operating in Buenos Aires, requested for reorganization after failing to pay its liabilities, says Infobae. The reorganization petition, once approved by the court, will allow the company to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending before Court No. 21 of Buenos Aires' civil and commercial tribunal. Clerk No. 41 assists the court on this case. CONTACT: Gas Trelew S.A. Buenos Aires IANSON S.A.: Court Grants Reorganization Plea --------------------------------------------- Ianson S.A. en Liquidacion, formerly Ianson S.R.L., successfully petitioned for reorganization after Court No. 26 of Buenos Aires' civil and commercial tribunal issued a resolution opening the company's insolvency proceedings. During insolvency, the company will continue to manage its assets subject to certain conditions imposed by Argentine law and the oversight of a court-appointed trustee. Infobae relates that the firm "Israelson, Kohan Consultores" will serve as trustee during the course of the reorganization. The firm will be accepting creditors' proofs of claims for verification until October 4, 2004. After the verification deadline, the trustee will prepare the individual reports and submit it in court on November 16, 2004. The firm will also present a general report for court review on December 30, 2004. The company will endorse the settlement proposal, drafted from the submitted claims, for approval by the creditors during the informative assembly scheduled on May 20 next year. CONTACT: "Israelson, Kohan Consultores" - Trustee Lavalle 1672 Buenos Aires INTERCARPA S.A.: Seeks Reorganization Approval From Court --------------------------------------------------------- Judge Sala, serving for Court No. 11 of Buenos Aries' Civil and Commercial Tribunal is currently reviewing the merits of the reorganization petition filed by Intercarpa S.A. Argentine daily La Nacion reports that the company filed the request after defaulting on its debt payments since April 11, 2002. The reorganization petition, if granted by the court, will allow the Company to negotiate a settlement with its creditors in order to avoid a straight liquidation. Dr. Aleman, Clerk No. 27, assists the court on this case. CONTACT: Intercarpa S.A. Avenida Corrientes 1642 Buenos Aires MIGUEL GONZALEZ: Court Converts Bankruptcy to Reorganization ------------------------------------------------------------ Miguel Gonzalez e Hijos S.A. will proceed with reorganization after Court No. 5 of Quilmes' civil and commercial tribunal converted the Company's ongoing bankruptcy case into a "concurso preventivo", states Infobae. Under Insolvency protection, the Company will be able to draft a proposal designed to settle its debts with creditors. The reorganization also prevents the Company's outright liquidation. Ms. Rosa Del Carmen Irigoyen, the court-appointed trustee, will verify creditors' proofs of claims "por via incidental". Creditors with unverified claims cannot participate in the Company's settlement plan. CONTACT: Miguel Gonzalez e Hijos S.A. Sarmiento 1375 Berazategui Quilmes Ms. Rosa Del Carmen Irigoyen, Trustee Moreno 525 Quilmes MULTICANAL: 30 Days to Fix Debt Deal Glitches, Says U.S. Judge -------------------------------------------------------------- Argentine cable operator Multicanal SA must meet two conditions within 30 days in order to have its Argentine out-of-court debt restructuring (APE) recognized in the U.S., Judge Allan Gropper of the U.S. District Court for the Southern District of New York ruled Friday. Dow Jones Newswires recalls that Multicanal had petitioned to restructure US$509 million in debts under Section 304 of the US Bankruptcy Code, which allows foreign debtors to ask a court to stay actions against companies or assets in the U.S. Subsequently, New Jersey investment fund W.R. Huff and two other bondholders had filed an involuntary bankruptcy petition against Multicanal. W.R. Huff is the main holdout creditor in Multicanal's debt restructuring and had sought to dismiss the Section 304 petition. Judge Gropper ruled that Multicanal's APE could be recognized in the U.S. and the involuntary bankruptcy petition dismissed if the company meets two conditions within 30 days: "a proposed cure for the discrimination against U.S. retail noteholders" and justification of criminal proceedings filed in Argentina against Huff representatives. Huff will then have 15 days to respond. "A foreign proceeding cannot discriminate against U.S. creditors and expect recognition under 304," the court ruling said. Multicanal's bondholders approved the company's debt restructuring offer at a December meeting and received legal approval in April. Under APE rules, two-thirds agreement from creditors allows a company to seek formal legal clearance, which then would make the restructuring terms binding on all creditors. About 80% of Multicanal's creditors are based in the U.S. and at least 5% were retail bondholders. Multicanal's debt restructuring proposal, originally issued in January 2003 and sweetened in July 2003, offered three alternatives. One was a cash option and the other two involved swapping old debt for new notes. Multicanal offered only the cash alternative to U.S. retail bondholders, and didn't significantly improve that option when it sweetened its proposal. NUROGA S.A.: Court Declares Company Bankrupt -------------------------------------------- Judge Favier Dubois of Buenos Aires' civil and commercial tribunal Court No. 9 declared local company Nuroga S.A. "Quiebra", relates local daily La Nacion. The court approved the bankruptcy petition filed by Mr. Ruben Acevedo, the Company's creditor. Nuroga will undergo the bankruptcy process with Mr. Abraham Yalovetzky as its trustee. Creditors are required to present their proofs of claims to the trustee for verification before October 22, 2004. Creditors who fail to have their claims authenticated by the said date will be disqualified from the payments that will be made after the Company's assets are liquidated at the end of the bankruptcy process. Dr. Raisberg de Merenzon, Clerk No. 17, assists the court on the case. CONTACT: Nuroga S.A. Cervino 3701 Buenos Aires Mr. Abraham Yalovetzky, Trustee Lavalle 1567 Buenos Aires SCP: Bourse Resumes Trading After Getting Court Ruling Info ----------------------------------------------------------- In response to a request made by the Buenos Aires Stock Exchange Monday, conglomerate Sociedad Comercial del Plata (COME.BA) released more information about an appeals court ruling that blocks its debt restructuring agreement, reports Dow Jones Newswires. On Friday, SCP issued a statement to the bourse, saying only that the prosecutor in a federal appeals court has issued an "adverse" ruling in its bankruptcy proceedings and that SCP's legal advisors were taking "pertinent measures" to defend its rights. On Monday, before the market opened, stock exchange authorities said they were suspending trading in SCP until they received more information on the court decision. SCP issued a response shortly before the opening bell on Monday saying that it has knowledge of the court ruling but hasn't been officially notified. SCP also said its legal team was in the process of getting a copy of the ruling. With the new statement from SCP, the bourse has decided to resume trading effective Tuesday. SCP received approval for its bankruptcy proceedings and debt restructuring in March. But the appeals court has recommended that the lower court overseeing the debt restructuring revoke the approval of the offer. Among the reasons cited for rescinding the approval was "discriminatory" creditor treatment - particularly between holders of local currency and foreign currency debt - and the voting methodology used. In addition, the appeals court decision finds fault with the debt restructuring of former SCP energy unit Compania General de Combustibles, whose offer is moving through the courts in tandem with that of its parent. CONTACT: Sociedad Comercial del Plata Av. Davila 350 Buenos Aires, Argentina Phone: 54 1 310-0490 Fax: 54 1 310-0493 SIDERFER: Court Reschedules Insolvency Proceedings -------------------------------------------------- Key dates in the Siderfer S.R.L. bankruptcy case have been moved to these dates: 1. General Report Submission - August 27, 2004 2. Informative Assembly - February 25, 2005 Court No. 1 of Buenos Aires' civil and commercial tribunal, assisted by Clerk No. 1, has jurisdiction over this case. CONTACT: Siderfer S.R.L. Luis Vernet 4085 (1757) Laferrere - BUENOS AIRES Tel: (011) 4457-3154 Fax:(011) 4457-8914 SUIPACHA 732: Court Favors Creditor's Bankruptcy Petition --------------------------------------------------------- Mr. Juan Estrella successfully sought for the bankruptcy of Suipacha 732 S.R.L. after Judge Ferrario of Buenos Aires' civil and commercial tribunal Court No. 6 declared the Company "Quiebra," reports La Nacion. As such, the Company will now start the bankruptcy process under the supervision of Mr. Ruben Suez, the court-appointed trustee. Creditors of the Company must submit their proofs of claim to the trustee before November 12, 2004 for authentication. Failure to do so will mean disqualification from the payments that will be made after the Company's assets are liquidated. Mr. Estrella sought for the Company's bankruptcy after the latter failed to pay debts amounting to US$1,436.00. Dr. Sicoli, Clerk No. 11, assists the court on the case, which will culminate in the liquidation of all of its assets. CONTACT: Suipacha 732 S.R.L. Suipacha 732 Buenos Aires Mr. Ruben Suez, Trustee Cesar Diaz 2324 Buenos Aires SUYMA S.A.: Court Orders Liquidation ------------------------------------ Suyma S.A. prepares to wind-up its operations following the bankruptcy pronouncement issued by Court No. 5 of 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 appointed Ms. Monica Costa as trustee. She will be reviewing creditors' proofs of claims until October 29, 2004. The verified claims will be the basis for the individual reports to be presented for court approval on December 13, 2004. The trustee will also submit a general report on March 6 next year. Clerk No. 10 assists the court on this case, which will end with the disposal of the company's assets to cover its liabilities. CONTACT: Ms. Monica Costa, Trustee Reconquista 715 Buenos Aires TRESDE S.R.L.: Court Orders Liquidation --------------------------------------- Judge Villar, serving for Court No. 13 of Buenos Aires' civil and commercial tribunal, declared local company Tresde S.R.L. bankrupt. La Nacion states that the ruling comes in approval of the bankruptcy petition filed by the Company's creditor, YPF S.A. The trustee, Mr. Ruben Acosta, will examine and authenticate creditors' claims until October 15, 2004. This is done to determine the nature and amount of the Company's debts. Creditors must have their claims authenticated by the trustee by the said date in order to qualify for the payments that will be made after the Company's assets are liquidated. Clerk No. 25, Dr. Guerri, assists the court on the case, which will conclude with the liquidation of the Company's assets. CONTACT: Tresde S.R.L. Cramer 1715 Buenos Aires Mr. Ruben Acosta, Trustee Tucuman 1545 Buenos Aires TRI-ECO S.A.: Gears for Reorganization -------------------------------------- Judge Vasallo, working for Court No. 5 of Buenos Aires' civil and commercial tribunal, issued a resolution opening the reorganization of Tri-Eco S.A., says La Nacion. The Company has assets totaling US$8,163,866 and liabilities totaling US$7,610,173. This pronouncement authorizes the Company to begin drafting a settlement proposal with its creditors in order to avoid liquidation. The reorganization further allows the Company to retain control of its assets subject to certain conditions imposed by Argentine law and the oversight of the court appointed trustee. Ms. Flora Pazos will serve as trustee during the course of the reorganization. She will be validating creditors' proofs of claims until Novemeber 3, 2004. The Company will present the completed settlement proposal to its creditors during the informative assembly scheduled on August 9 next year. Dr. Perex Casado, Clerk No. 9, assists the court on this case. CONTACT: Tri-Eco S.A. Lavalle 534 Beunos Aires Ms. Flora Pazos, Trustee Montevideo 527 Buenos Aires ============= B E R M U D A ============= FOSTER WHEELER: Extends Debt Offer; Minimum Thresholds Not Met -------------------------------------------------------------- Foster Wheeler Ltd. (OTCBB: FWLRF) announced Monday that minimum thresholds related to its equity-for-debt exchange were not met for two classes of securities. Specifically, only 50.1% of the minimum threshold of 75% has been tendered by holders of the 9.00% Preferred Securities, and 86.0% of the minimum threshold of 90% has been tendered by holders of the 6.75% Senior Notes. Foster Wheeler is extending its exchange offer until 5:00 p.m., New York City time, on September 2, 2004. "We need increased participation by holders of the Preferred Securities and Senior Notes to meet our minimum tender conditions," said Raymond J. Milchovich, chairman, president and chief executive officer. Legal Details The securities proposed to be exchanged are as follows: (1) Foster Wheeler's Common Shares and its Series B Convertible Preferred Shares (the "Preferred Shares") for any and all outstanding 9.00% Preferred Securities, Series I issued by FW Preferred Capital Trust I (liquidation amount $25 per trust security) and guaranteed by Foster Wheeler Ltd. and Foster Wheeler LLC, including accrued dividends; (2) Foster Wheeler's Common Shares and Preferred Shares for any and all outstanding 6.50% Convertible Subordinated Notes due 2007 issued by Foster Wheeler Ltd. and guaranteed by Foster Wheeler LLC; (3) Foster Wheeler's Common Shares and Preferred Shares for any and all outstanding Series 1999 C Bonds and Series 1999 D Bonds (as defined in the Second Amended and Restated Mortgage, Security Agreement, and Indenture of Trust dated as of October 15, 1999 from Village of Robbins, Cook County, Illinois, to SunTrust Bank, Central Florida, National Association, as Trustee); and (4) Foster Wheeler's Common Shares and Preferred Shares and up to $150,000,000 of Fixed Rate Senior Secured Notes due 2011 of Foster Wheeler LLC guaranteed by Foster Wheeler Ltd. and certain Subsidiary Guarantors for any and all outstanding 6.75% Senior Notes due 2005 of Foster Wheeler LLC guaranteed by Foster Wheeler Ltd. and certain Subsidiary Guarantors; and solicitation of consents to proposed amendments to the indenture relating to the 9.00% Junior Subordinated Deferrable Interest Debentures, Series I of Foster Wheeler LLC, the indenture relating to the 6.50% Convertible Subordinated Notes due 2007 and the indenture relating to the 6.75% Notes due 2005. As of 5:00 p.m. on August 30, 2004, holders have tendered the following dollar amounts and percentages of the following original securities: (1) 9.00% Preferred Securities, $87,599,400 (50.1%); (2) 6.50% Convertible Subordinated Notes, $208,296,000 (99.2%); (3) Robbins Series C Bonds due 2024, $56,640,249 (73.4%), Robbins Series C Bonds due 2009, $12,027,440 (99.2%), and Robbins Series D Bonds, $35,488,159 based on the balance due at maturity (99.1%); and (4) 6.75% Senior Notes, $172,091,000 (86.0%). A copy of the prospectus relating to the New Notes and other related documents may be obtained from the information agent. The information agent for the 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. 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. The exchange agent for the exchange offer is the Bank of New York, London Branch. 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 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, upstream oil and gas, LNG and gas-to-liquids, petrochemicals, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA. CONTACTS: Foster Wheeler Ltd. Perryville Corporate Park Service Rd. E. 173 Clinton NJ 08809-4000 USA Phone: 908-730-4000 Web site: http://www.fwc.com =========== B R A Z I L =========== BRASKEM: To Launch $306M Share Issue This Month ----------------------------------------------- Executives of Brazil's Braskem (NYSE: BAK) decided at an August 27 meeting with analysts that the petrochemicals company will launch a BRL900-million (US$306mn) share issue this month, Business News Americas reports, citing newspaper Gazeta Mercantil. The paper reported that bookbuilding will run from Sep. 8 to Sep. 24, when the price would be announced. Ten percent of the shares will be issued on the Brazilian market and 90% on Wall Street, and the shares would be sold Sep. 29, increasing the company's free float to 45% from 36%. Braskem revealed in its preliminary filing of the share issue with the US securities and exchange commission that the proceeds of the issue would go to general corporate affairs, including working capital and paying down short-term debt. Braskem, a world-class Brazilian petrochemical producer, is a leader in thermo-plastics in Latin America and it figures among the five biggest Brazilian private industrial companies. Braskem's 13 industrial plants are located all over the country and they produce 5 million tons of petrochemical products annually. CONTACT: Ms. Claudia Bredarioli Communication Phone: 11 3443-9099 claudia@prumocom.com.br NET SERVICOS: Transfers Full Interest in Vicom to Comsat -------------------------------------------------------- Net Servicos de Comunicacao S.A. (Nasdaq: NETC)(Bovespa: PLIM4)(Bovespa: PLIM3)(Latibex: XNET) the largest Pay-TV multi- service operator in Latin America, an important provider of bi- directional broadband Internet access (Virtua) and multimedia and data communication services for corporate networks a publicly held company, announces, in compliance with CVM Instruction # 358/02, the following relevant notice: On November 4, 2003, the Company and Comsat International signed a Purchase and Sale Agreement, referring to the transfer of its total interest in Vicom Ltda. (Vicom), which was subject to certain conditions. As informed in the Relevant Notice announced on January 20, 2004, the Company, as of November 11, 2003, submitted to the Brazilian Telecommunications Agency (Anatel) a request for authorizing the transfer of its interests in Vicom Ltda. Such request was approved through the issue of Act # 41,767, which was published in Diario Oficial da Uniao (Brazilian Official Gazette) on January 21, 2004, satisfying one of these conditions. Upon the completion of all conditions implied in the Agreement and the conclusion of certain adjustments, the Company concluded this transaction Monday, resulting in the transfer of its full interest in Vicom to Comsat Brasil Ltda. (Comsat), which is the assignee of Comsat International's rights and obligations. Due to this transaction, the Company will be entitled to receive the following: 1) R$ 16.2 million, divided into 5 annual installments, monetarily adjusted according to the IPCA (Consumer Price Index); and 2) R$ 6.3 million divided into 5 annual installments. Such installments will be tied to Vicom's net cash generation. The remaining balance will be fully settled by the end of the fifth year. Additionally, due to the completion of the transaction, the Company assumed US$ 2.1 million debt currently held by Vicom; The sale of Vicom will not have a significant impact on Net's EBITDA (earnings before interest, taxes, depreciation and amortization). Also, this transaction will not impact the Company's cash flow, once Vicom's Capex was limited to its own cash generation. Thus, the newly concluded transaction meets the Company's goal to strengthen and focus on Pay TV and Broadband segments. TELEMAR: Trades Shares on a Grouped Basis ----------------------------------------- Tele Norte Leste Participacoes S.A. and Telemar Norte Leste S.A. confirm that the period for adjusting shareholding positions to multiples of one thousand shares ended [Friday]. Effective Monday, August 30, 2004, shares of both companies will only be traded on a grouped basis and quoted per unit. Fractional share resulting from the grouping will be detached, grouped into whole numbers and sold on the Bovespa. The corresponding proceeds will be made available to the respective shareholders following the final financial settlement of the auction sale, pursuant to the criteria set forth in our Notice to Shareholders of May 24, 2004. Also effective August 30, 2004, each Tele Norte Leste Participacoes' ADR - American Deposit Receipt listed on NYSE will represent one preferred share. CONTACT: TNE - INVESTOR RELATIONS Mr. Roberto Terziani (terziani@telemar.com.br) 55 21 3131 1208 Mr. Carlos Lacerda (carlosl@telemar.com.br) 55 21 3131 1314 Fax: 55 21 3131 1155 The Global Consulting Mr. Kevin Kirkeby (kkirkeby@hfgcg.com) Tel: 1 646.284.9416 UNIBANCO: Creates Credit Company with Sonae ------------------------------------------- Unibanco Group ("Unibanco") and Sonae ("Sonae") have signed a partnership for the establishment of a new credit company, thus celebrating a new stage of a long lasting 14 year-old relationship. The credit company will be equally controlled by Unibanco and Sonae. Unibanco has been working with Sonae's stores selling financial products such as private label cards, consumer finance, personal lending and insurance, among other consumer credit products. Sonae has 21 thousand employees in Brazil and is present in the hypermarket segment, under the BIG brand with 46 stores (in the states of Sao Paulo, Rio Grande do Sul, Santa Catarina and Paranc) and in the supermarket segment, with 24 stores under the Mercadorama brand in Paranc and 67 "Nacional" stores in Rio Grande do Sul. Sonae also controls the "Maxxi Atacado" chain, with 11 stores in the South region, and owns 3 Distribution Centers. In 2003, Sonae had revenues in excess of R$ 3.8 billion in Brazil, the third biggest of the sector, according to Abras - Associa�ao Brasileira de Supermercados (Brazilian Supermarkets Association) ranking. The partnership reinforces Unibanco's strategy of growth in the retail consumer finance sector and consolidates Sonae's expansion strategy in Brazil. The establishment of the credit company is subject to the approval of the relevant authorities. CONTACT: Unibanco - Uniao de Bancos Brasileiros S.A. Ave. Eusebio Matoso, 891 - 15th floor Sao Paulo, SP 05423-901- Brazil Tel.: (55 11) 3097-1313 Fax: (55 11) 3097-6182 e-mail: investor.relations@unibanco.com.br Web Site: www.ir.unibanco.com UNIBANCO: Ratings Unaffected By Partnership, Says S&P ----------------------------------------------------- Standard & Poor's Ratings Services said Monday that Uniao de Bancos Brasileiros S.A.'s (Unibanco) announcement of the creation of a financial company in partnership with the Brazilian chain of supermarkets Sonae Distribuicao Brasil S/A (Sonae) would not affect the ratings for or outlooks on Unibanco (Foreign Currency: B+/Positive/B) or its related entities. Unibanco was already a partner of Sonae (with a 14-year relationship) in the consumer finance business. Unibanco already had a presence in Sonae's stores through the bank's consumer finance company Fininvest. Also, Unibanco serves as a correspondent bank in the retail chain's stores--Sonae's clients can utilize stores to pay water, light, credit card, and other obligations. Unibanco will remain in charge of the credit approval process and will provide funding for the operations, while Sonae will serve as a distribution channel exclusively for Unibanco. For Unibanco, the possibility of having access to Sonae's base of clients may allow Unibanco to increase cross- selling of Sonae's already established clients. With operations in Sao Paulo and with 148 stores in the country and total revenues of BrR3.8 billion in 2003, Sonae is a large supermarket chain in the Brazilian South region (notably in Rio Grande do Sul, Santa Catarina, and Parana). ANALYSTS: Claudio Gallina, Sao Paulo (55) 11-5501-8938 Daniel Araujo, Sao Paulo (55) 11-5501-8939 ========= C H I L E ========= ENERSIS: Exchange Offer to Expire Friday ---------------------------------------- ENERSIS S.A. (NYSE: ENI), announced on August 6, 2004 the commencement of its offer to exchange (the "Exchange Offer") up to $350,000,000 of its new 7.375% notes due 2014 (the "New Notes"), registered under the Securities Act of 1933, as amended (the "Securities Act"), for its outstanding, unregistered 7.375% notes due 2014 (the "Old Notes"). The offer is valid for 20 business days and is set to expire Friday, Sep. 3, 2004. Enersis does not currently intend to extend the exchange offer period. The terms of the New Notes are identical in all material respects to the terms of the Old Notes, except that the New Notes have been registered under the Securities Act, and the transfer restrictions and registration rights relating to the Old Notes do not apply to the New Notes. Upon settlement of the Exchange Offer, which is expected to occur on or about September 10, 2004, the tendering holders of the Company's Old Notes Due 2014 will receive a like principal amount of its New Notes. The Company will not receive any proceeds from the issuance of the New Notes in the Exchange Offer. A copy of the prospectus may be obtained by contacting the information agent, D.F. King & Co., Inc., 48 Wall Street, 22nd Floor New York, NY 10005, bankers and brokers call collect: (212) 269-5550, all others call toll free: (800) 714-3313. Deutsche Bank Trust Company Americas is serving as the Exchange Agent in connection with the Exchange Offer. CONTACTS: Enersis S.A. Santa Rosa 76 Santiago, Chile Ms. Susana Rey Head of Investor Relations Web Site: www.enersis.cl =============== C O L O M B I A =============== AVIANCA: Returns to Profitability in the Seven Months of 2004 ------------------------------------------------------------- Colombian flagship airline Avianca, whose restructuring plan gained approval from a U.S. bankruptcy judge last week, booked a net profit in the first seven months of 2004. Citing a company press release, Dow Jones Newswires reports that Avianca posted a net profit of US$18.9 million between January and July compared with a net loss of US$49.8 million in the first seven months of 2003. Earnings before interest, taxes, depreciation and amortization, or Ebitda, totaled US$50.6 million, up from US$46.4 million reported in the like period in 2003. Operating revenues at the airline reached US$398.2 million, up 25.5% from the year-earlier period. The company's expenses grew 11% in the seven months due to higher costs in jet oil, the press release added. Avianca filed for Chapter 11 bankruptcy protection in March of 2003 and delivered its reorganization plan to a U.S. court in July of this year. A week ago, a U.S. bankruptcy judge approved the plan that would transfer control to Brazil's Grupo Sinergy if creditors support the proposal. Sinergy offered in March to inject US$64 million of capital into Avianca and assume nearly US$300 million in debt in return for a 75% stake in the world's second-oldest airline. =========== M E X I C O =========== ALFA: Subsidiary Expands Latin American Presence ------------------------------------------------ Sigma Alimentos, S. A. de C. V. (Sigma), a subsidiary of the Mexico-based conglomerate ALFA, announced it has made significant progress in the execution of its business strategy, which is designed to expand the company's presence in the refrigerated foods businesses. "Today, we have taken an important step for the future of our company," said Mr. Mario Paez, Sigma's President. "First, we have established an association with Grupo Chen that will allow us to expand our dairy products operations in Mexico. Second, we bought the Sosua business in the Dominican Republic, which makes our presence there even stronger," he added. Details of Monday's announcement follow: Association with Grupo Chen With more than 40 years of experience in the Mexican dairy products market, Grupo Chen is one of the most successful companies operating today in the sector. It produces and commercializes cheese, yoghurt, cream and other dairy products under the "Chen", "Normex", "Norteno", "Nortenita" and "Camelia" brands, among others. In 2003, Grupo Chen reported sales of more than US$ 100 million. The association between Sigma and Chen will result in one of the most important players in the Mexican dairy products market. To that effect, a new company owned by Sigma and Chen will be established, which will combine the business experience of both partners in the dairy business, plus Sigma's excellent distribution network. Acquisition of Sosua Sigma also announced it recently acquired the assets and brands belonging to Sosua, one of the leading processed food companies in the Dominican Republic. This acquisition joins another one made by Sigma in the same country in 2003 (Productos Checo), and allows it to gain market leadership in the cheese business and a strong second place in the cold cuts market. Sosua operates cold cuts and cheese plants in Puerto Plata, Dominican Republic. It also has five distribution centers in the country. The company markets its products under de "Sosua" brand. In 2003, Sosua reported sales of more than US$ 40 million. Sigma is the leader in the Mexican refrigerated foods market. It has operations in Mexico, Central America, the Caribbean and the US. Its product line includes cold cuts, dairy products and prepared foods. In 2003, Sigma reported sales of about US$ 1,050 million and employed almost 16,000 people. CONTACTS: Mr. Hector Acosta Phone: 011 52 81 8748-9012 e-mail: hacosta@sigma-alimentos.com Mr. Javier Gonzalez Phone: 011 52 81 8748-9060 e-mail: jgonzale@sigma-alimentos.com SATMEX: No More Pressure From SCT --------------------------------- Pedro Cerisola y Weber, Secretary of Mexico's Transportation and Communications (SCT), assured that the secretariat "will not put any more pressure" on Satelites Mexicanos (Satmex) regarding its debt restructuring efforts, reports El Universal. The official said that the State, which has a 23.75% stake in Satmex, is prepared to safeguard the business in case Satmex, headed by Lauro Gonzalez, is unable to reach an agreement with its creditors. Nevertheless, he warned that Satmex must clean up its financial situation. Otherwise, private creditors and the government will be forced to execute their guarantees. Satmex officials stated that they are holding negotiations with creditors to reach an agreement that will please all involved. Creditors have demanded that, independent of Satmex's debt restructuring, the firm make serious internal changes to lower its administrative and operative costs because these account for too much of the company's capital. Satmex has a total liability of approximately US$800 million. UNITED RENTALS: SEC Opens Inquiry, S & P Changes Ratings -------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB' corporate credit rating and its other ratings on United Rentals (North America) Inc. (URI) on CreditWatch with negative implications. The action followed the announcement by the company that it received notice from the SEC of a non-public, fact-finding inquiry of the company. Although no specific reason or scope has been cited for the investigation, the notice was accompanied by a subpoena requesting the production of documents relating to certain of the company's accounting records. "The lack of specific information reflected in the company's announcement and the possibly broad parameters of the investigation are a cause of concern," said Standard & Poor's credit analyst John Sico. "We will review events as further information becomes available and could lower the ratings if events unfold that have a material effect on credit quality or are detrimental to the company's liquidity." Greenwich, Conn.-based URI offers a broad range of construction and industrial equipment through a network of 730 locations in the U.S., Canada, and Mexico with sales of about $3 billion in 2003 and total debt outstanding of $3 billion. About United Rentals United Rentals, Inc. is the largest equipment rental company in North America, with an integrated network of more than 730 rental locations in 47 states, seven Canadian provinces and Mexico. The company's 13,300 employees serve construction and industrial customers, utilities, municipalities, homeowners and others. The company offers for rent over 600 different types of equipment with a total original cost of $3.7 billion. United Rentals is a member of the Standard & Poor's MidCap 400 Index and the Russell 2000 Index(R) and is headquartered in Greenwich, CT. CONTACTS: UNITED RENTALS, INC. Chuck Wessendorf Tel: 203/618-7318 E-mail: cwessendorf@ur.com Web site: http://www.unitedrentals.com ================= V E N E Z U E L A ================= EDC: Considers Paying Dividends ------------------------------- C.A. La Electricidad de Caracas revealed Friday that it will consider approving a dividend and fresh financing at a Sep. 13 shareholders meeting, Dow Jones Newswires reports, citing a company statement. The dividend, if approved, will be VEB36.65 per share, EDC said, adding that it could issue bonds in local or international markets. EDC further said it may bring its two subsidiaries, C.A. Luz Electrica de Venezuela and C.A. Electricidad de Guarenas y Guatire, under the EDC name through a merger. EDC reported a profit of VEB13 billion in the second quarter of the year, reversing a loss of VEB6.6 billion in the same period a year ago. The improved performance was partly due to lower interest rates and finance expenses. 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. CONTACT: AES VENEZUELA Avenida Rio de Janeiro Qta. Tres Pinos Chuao, VE-1061 Caracas, Venezuela Phone: +58 14 929 2552 Fax: +58 2 9937296 E-mail: venezuela@aes.org Contact: Elmar Leal, Chairman Juan Font, Vice Chairman PDVSA: President Remains Silent Amid Shell Argentina Rumors ----------------------------------------------------------- The head of Venezuelan state oil company, Petroleos de Venezuela SA, refuses to comment on speculation that the Company is interested in the Argentine assets of Royal/Dutch Shell Group, which include refining operations and service stations. "We are not making comments until a deal is concrete. We are not going to announce anything," PDVSA President Ali Rodriguez Araque told Argentine business daily El Cronista in an interview. When asked to comment on remarks by Venezuelan Energy and Mines Minister Rafael Ramirez, who was quoted two weeks ago by another news service as saying that a PDVSA purchase of Shell's Argentine service stations was a "possibility," Rodriguez said Ramirez later denied making the statement. He went on to say, however, that "there are many conversations on the issue of refining and distribution (in Argentina). I don't have any announcements to make." Shell revealed in its Web site that its unit in Argentina, Shell CAPSA, has more than 900 service stations in the country and a refinery in Buenos Aires province. The unit had 2,998 employees at the end of 2002 and a fleet of 350 trucks and 5 tankers. Shell has been looking to consolidate its operations and sell non-core assets in the wake of an accounting scandal earlier this year. *********** 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. 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