/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040902.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 Thursday, September 2, 2004, Vol. 5, Issue 174 Headlines A R G E N T I N A ARIANTE S.A.: Bankruptcy Initiated by Court Order BOBIGRAL S.A.: Required Report Submission Dates Set BONI S.A.: Debt Payments Halted, Readies To Reorganize CRONOMETAL: Court Schedules Submission Deadlines FARGO S.A.: $120M Bond Issue Gets D Rating HIERROS CAMPANA: Court Deems Liquidation Necessary INDUSTRIAS METALURGICAS: Enters Bankruptcy on Court Orders IN TEC: Court Rules in Favor of Creditor's Bankruptcy Petition LOGISTICA LA SERENISIMA: Danone Looks to Acquire Full Ownership MARIO ROCHMAN: Initiates Bankruptcy Process MATTULICH S.A.: Files Petition to Reorganize PARRI S.A.: Court Declares Company Bankrupt PILGRIM S.A.: Claims Review Deadline Set SIDECO AMERICANA: Court Endorses Preventive Agreement SOUTHERN WINDS: Government Extends Accord With LAFSA WINE CONSULTING: Proceeds With Restructuring * ARGENTINA: IMF Supports Kirchner's Economic Programs B E L I Z E * S&P Lowers Foreign Currency Ratings; Outlook Negative B E R M U D A FOSTER WHEELER: Adjusts Interest Rate on New Notes B R A Z I L BRASKEM: Selling 11,700,000,000 Class A Preferred Shares CEMIG: Stockholders to Vote on Board Proposals USIMINAS: Expects Financial Aid From JBIC on Expansion Plans C H I L E ENAMI: Codelco May Seek New Sources to Fund Ventanas Transfer ROYAL SHELL: Mining Minister Says ENAP Not Eyeing Local Assets M E X I C O GRUPO MEXICO: Railway Unit Strikes Contract Deal With Workers U R U G U A Y NUEVO BANCO: Fitch Assigns 'B' to LTFC Debt Rating - - - - - - - - - - ================= A R G E N T I N A ================= ARIANTE S.A.: Bankruptcy Initiated by Court Order ------------------------------------------------- Ariante S.A. will enter bankruptcy protection after Court No. 19 of Buenos Aires' civil and commercial tribunal ordered the company's liquidation. The bankruptcy order effectively transfers control of the company's assets to the court-appointed trustee who will supervise the liquidation proceedings. Infobae reports that the court selected Mr. Mario Rafael Cabrosi as trustee. He will be verifying creditors' proofs of claims until the end of the verification phase on September 22, 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 November 4, 2004 followed by the general report, which is due on December 17, 2004. CONTACT: Ariante S.A. Suipacha 355 Buenos Aires Mr. Mario Rafael Cabrosi, Trustee Uruguay 390 Buenos Aires BOBIGRAL S.A.: Required Report Submission Dates Set --------------------------------------------------- Ms. Irma Aguilera, the trustee assigned to supervise the liquidation of Bobigral S.A., will submit the validated individual claims for court approval on November 3, 2004. These reports explain the basis for the accepted and rejected claims. The trustee will also submit a general report on December 16, 2004. Infobae reports that Court No. 19 of Buenos Aires' civil and commercial tribunal has jurisdiction over this bankruptcy case. Clerk No. 38 assists the court with the proceedings. CONTACT: Bobigral S.A. Larrazabal 1031 Buenos Aires Ms. Irma Aguilera, Trustee Luis Saenz Pena 1690 Buenos Aires BONI S.A.: Debt Payments Halted, Readies To Reorganize ------------------------------------------------------ Judge Di Noto of Buenos Aires' civil and commercial tribunal Court No. 15 is now analyzing whether to grant Boni S.A. approval for its petition to reorganize. La Nacion recalls that the company sought insolvency protection after defaulting on its debt obligations. The Company reported assets worth US$1,179,357 and liabilities totaling US$1,719,640. Dr. Tevez, Clerk No. 29, assists the court on this case. CONTACT: Boni S.A. Chile 427 Buenos Aires CRONOMETAL: Court Schedules Submission Deadlines ------------------------------------------------ Mr. Oscar Chapiro, the trustee supervising the liquidation of Cronometal S.R.L., will submit relevant documents from the case on these dates: 1. Individual Reports (Article 35) - December 7, 2004 2. General Report (Article 39) - February 21, 2005 The Company's creditor, Mr. Jose Moral sought for the Company's bankruptcy after the latter failed to pay debts amounting to US$ 47,951.96. CONTACT: Cronometal S.R.L. Eleodoro Lobos 459 Buenos Aires Mr. Oscar Chapiro, Trustee Lavalle 1290 Buenos Aires FARGO S.A.: $120M Bond Issue Gets D Rating ------------------------------------------ About US$120 million of corporate bonds issued by Compania de Alimentos Fargo S.A. was rated `D' by rating agency Evaluadora Latinoamericana S.A. Calificadora de Riesgo. The bonds, according to the information on Argentina's National Securities Commission, is described as "obligaciones de negociables simples." Securities regulator Comision Nacional de Valores (CNV) posted the rating Tuesday. The D rating was assigned based on the Company's financial status as of June 30, 2004. No further details accompanied the announcement. CONTACT: Compan｛ de Alimentos Fargo S.A. Panamericana y Marcos Sastre (B1618FAU) Gral. Pacheco Buenos Aires Tel:(5411)4736-6500 Web Site: http://www.fargo.com.ar/ HIERROS CAMPANA: Court Deems Liquidation Necessary -------------------------------------------------- Court No. 19 of Buenos Aires civil and commercial tribunal ordered the liquidation of Hierros Campana S.A. after the company defaulted on its obligations, Infobae reveals. The liquidation pronouncement will effectively place the company's affairs as well as its assets under the control of Mr. Jaime Feigielson, the court-appointed trustee. The trustee will verify creditors' proofs of claims until September 17, 2004. The verified claims will serve as basis for the individual reports to be submitted in court on November 1, 2004. The submission of the general report follows on December 14, 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: Hierros Campana S.A. Jose Evaristo Uriburu 754 Buenos Aires Mr. Jaime Feigielson, Trustee Sarmiento 1287 Buenos Aires INDUSTRIAS METALURGICAS: Enters Bankruptcy on Court Orders ---------------------------------------------------------- Court No. 2 of Bell Ville's civil and commercial tribunal declared local company Industrias Metalurgicas Martellono S.R.L. bankrupt after it defaulted on its debt payments. The verification of creditors' claims is ongoing until September 30, 2004. Following claims verification, the trustee will submit the individual reports based on the forwarded claims for final approval by the court on November 11, 2004. Infobae reports that Clerk no. 3 assists the court on this case, which will end with the disposal of the company's assets in favor of its creditors. CONTACT: Industrias Metalurgicas Martellono S.R.L. Presidente Peron 37 Ballesteros (Cordoba) IN TEC: Court Rules in Favor of Creditor's Bankruptcy Petition -------------------------------------------------------------- Ms. Gabriela Mariuzza successfully sought for the bankruptcy of In Tec S.R.L. after Judge Ballerini, serving for Court No. 24 of Buenos Aires' civil and commercial tribunal, declared the Company "Quiebra." Infobae reports that the Company will now start the bankruptcy process under the supervision of Ms. Haydee Kravetz, the court-appointed trustee. Creditors must submit their proofs of claim to the trustee before October 5, 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. The creditors sought for the Company's bankruptcy after the latter failed to pay debts amounting to US$24,617.75. Dr. Diaz, Clerk No. 48, assists the court on this case that will culminate in the liquidation of all of its assets. CONTACT: In Tec S.R.L. Cahue 9 Buenos Aires Ms. Haydee Kravetz, Trustee Tucuman 1484 Buenos Aires LOGISTICA LA SERENISIMA: Danone Looks to Acquire Full Ownership --------------------------------------------------------------- French group Danone is negotiating with its Argentine partner, Mastellone Hnos., to acquire 100% ownership in Logistica La Serenissima, the logistics firm they share, in exchange for a debt of the Argentine dairy company. The partnership between Danone and Mastellone began in 1995, when they subscribed an alliance destined to work together in the yogurt and desserts segments. Then Danone ended up purchasing the whole division, which currently manages on its own and has a high market share. Danone and Mastellone still share the ownership of Logistica La Serenissima -the company that distributes both companies' products- with a 51% and 49% stake, respectively. Mastellone owes Danone around US$30 million. "It was a loan granted by Danone to Pascual Mastellone during the post-devaluation crisis in early 2002. Mastellone had serious cash flow issues and the French partner didn't want the company to go down. That's why they lent the money under the condition that they would discuss later how it would be repaid," a dairy sector source pointed out. Although Danone and Mastellone spokespersons declined to comment on the matter, it is said that the Argentine company would have offered Danone its 49% stake in Logistica La Serenissima as a way to pay off the debt. Logistica La Serenissima has 13 warehouses strategically located across the country and a fleet of 900 trucks. A source said that the companies would have already agreed on the deal off-the-record, though Mastellone doesn't want to announce it until once it has closed its out-of-court debt restructuring (APE). Mastellone is trying to refinance ARS457.4 million in debt. MARIO ROCHMAN: Initiates Bankruptcy Process ------------------------------------------- Court No. 19 of Buenos Aires' civil and commercial tribunal declared local company Mario Rochman y Raul Rochman S.H. "Quiebra," reports Infobae. Mr. Eduardo Fermin Luis Aguinaga, who has been appointed as trustee, will verify creditors' claims until September 21, 2004 and then prepare the individual reports based on the results of the verification process. The individual reports will then be submitted in court on November 3, 2004, followed by the general report on December 16, 2004. Clerk No. 38 assists the court on the case, which will close with the liquidation of the Company's assets to repay creditors. CONTACT: Mario Rochman y Raul Rochman S.H. Avda Corrientes 2635 Buenos Aires Mr. Eduardo Fermin Luis Aguinaga, Trustee Maipu 374 Buenos Aires MATTULICH S.A.: Files Petition to Reorganize -------------------------------------------- Buenos Aires-based Mattulich S.A. filed for "Concurso Preventivo" states La Nacion. The Company is seeking to reorganize its finances following cessation of debt payments since June 4 this year. The Company's case is pending before Court No. 5 of Buenos Aires' civil and commercial tribunal under Judge Vasallo. Dr. Perez Casado, Clerk No. 9, assist the court on this case. CONTACT: Mattulich S.A. Fernando de Montalvo 158 Buenos Aires PARRI S.A.: Court Declares Company Bankrupt ------------------------------------------- Judge Ferrario, serving for Court No. 6 of Buenos Aires' civil and commercial tribunal, declared local company Parri S.A. bankrupt, reports La Nacion. The order comes in approval of the petition filed by Ms. Leticia Pepili, to whom the Company has outstanding debts amounting to US$8,800. The real estate company will undergo the bankruptcy process with Mr. Luis Traverso as its trustee. Creditors are required to present their proofs of claims to the trustee for verification before November 5, 2004. Creditors who fail to have their claims authenticated by the said date will be disqualified from receiving post-liquidation payments. Dr. Mendez Sarmiento, Clerk No. 12, assists the court on this case. CONTACT: Parri S.A. Av. Triunvirato 5380 Buenos Aires Mr. Luis Traverso, Trustee Av. Corrientes 1820 Buenos Aires PILGRIM S.A.: Claims Review Deadline Set ---------------------------------------- The verification of claims for the Pilgrim S.A. bankruptcy will end on October 8, 2004 according to Infobae. Creditors with claims against the bankrupt company must present proof of the liabilities to Mr. Adolfo Kupchik, the court-appointed trustee, before the deadline. Court No. 13 of Buenos Aires' civil and commercial tribunal handles the company's case with the assistance of Clerk No. 25. The bankruptcy will conclude with the liquidation of the company's assets to pay its creditors. CONTACT: Mr. Adolfo Kupchik, Trustee Adolfo Alsina 1360 Buenos Aires SIDECO AMERICANA: Court Endorses Preventive Agreement ----------------------------------------------------- The extra-judicial settlement proposed by Sideco Americana S.A. for its creditors acquired the number of votes necessary for confirmation, says Infobae. As such, the plan was endorsed by the court and will now be implemented by the company. Sideco Americana is diversified operations include engineering and construction, infrastructure development and public services, with most of its operations in Argentina and Brazil. CONTACT: Sideco Americana S.A. Carlos Maria Della Paolera 299 P 27 1001) Buenos Aires Tel: (011) 4319-3800 Fax:(011) 4319-3880 SOUTHERN WINDS: Government Extends Accord With LAFSA ---------------------------------------------------- A spokeswoman for Argentina's Transportation Secretariat announced Tuesday that the government has extended an accord between start-up state-owned carrier Lineas Aereas Federales (LAFSA) and Southern Winds SA, adding another six months to a fuel subsidy for the private carrier. Last September, Argentine government authorities, including president Nestor Kirchner, signed an accord between LAFSA and Southern Winds, in a move to preserve jobs at Southern Winds that would be lost if the carrier were to go bankrupt. Under the accord, the government will pay up to ARS3.2 million (US$1.08 million) a month for fuel and will also be responsible for the salaries. In exchange for the government funds, Southern Winds agreed to share its fleet and infrastructure with LAFSA, a state company formed in July 2003 to provide jobs for 800 former workers at financially troubled airlines Lapa and Dinar. According to a report from local news agency Diarios y Noticias, the government said it will allow a maximum ARS4.5 million ($1=ARS3.0075) to subsidize fuel costs, up from the original ARS3.2 million contained in the September 2003 agreement. But the Transportation Secretariat spokeswoman said she couldn't confirm that the government had increased the fuel subsidy as part of the rollover, saying she didn't have immediate access to specific numbers. WINE CONSULTING: Proceeds With Restructuring -------------------------------------------- Judge Garibotto, serving for Court No. 2 of Buenos Aires' civil and commercial tribunal approved the "Concurso Preventivo" petition filed by Wine Consulting S.R.L., reports local news source La Nacion. The Company, which listed assets of US$99,281.94 and liabilities of US$121,296.58, will undergo a reorganization process under the supervision of Ms. Liliana Oliveros Peralta, the trustee. Ms. Peralta will verify creditors' proofs of claim until November 2, 2004. Verifications are done to ascertain the nature and amount of the Company's debts. The receiver will also prepare the individual and general reports on the case. A settlement plan will be presented to creditors during the informative assembly on August 3 next year. Dr. Romero, Clerk No. 4, assists the court in resolving this case. CONTACT: Wine Consulting S.R.L. Figueroa Alcorta 3351 Buenos Aires Ms. Liliana Oliveros Peralta, Trustee Viamonte 1337 Buenos Aires * ARGENTINA: IMF Supports Kirchner's Economic Programs ------------------------------------------------------ Mr. Rodrigo de Rato, Managing Director of the International Monetary Fund (IMF), made the following statement Thursday at the conclusion of his visit to Argentina: "During my brief, but productive, visit to Argentina, my first stop in South America as Managing Director, I have had the privilege to meet President Nestor Kirchner and to hold very constructive meetings with Minister Roberto Lavagna, Central Bank President Alfonso Prat-Gay and their economic teams. "My main goal in coming to Buenos Aires was to offer my support to the President for normalizing Argentina's economy and standing in the financial markets, with a view to attracting the new investments necessary for sustaining growth and poverty reduction for the benefit of all its citizens. There are two particularly important and inter-twined elements in this regard: the completion of a comprehensive and sustainable restructuring of Argentina's sovereign debt to private creditors, and a supporting medium-term fiscal framework. "In this context, I discussed with the President the steady improvement in Argentina's fiscal position since 2002 and the recovering banking system. Our discussions revealed many common understandings on the economic policy priorities that lie ahead. We agreed that prudent budgetary policy, within a framework of rising public savings, had been a key achievement of Argentina's federal government and provinces; this recent track record has bolstered consumer and investor confidence while also allowing considerable room for meeting the government's poverty reduction objectives. Safeguarding and building on this good performance in the future is a key policy priority and we look forward to a commensurately strong budget framework for 2005 and the medium term. "The President and I agreed to resume program discussions at the first possible opportunity, and once we have had a chance to assess the outcome of the debt restructuring and the continued further work on the structural issues outlined in the structural reform agenda of Argentina's program supported by a Stand-By Arrangement with the Fund. I was encouraged by the President's continued commitment to the objectives of the program and his stated willingness to work together to find shared understandings on the policy requirements of the program." CONTACT: International Monetary Fund External Relations Department 700 19th Street, NW Washington, D.C. 20431 USA Public Affairs: Phone: 202-623-7300 Fax: 202-623-6278 Media Relations: Phone: 202-623-7100 Fax: 202-623-6772 =========== B E L I Z E =========== * S&P Lowers Foreign Currency Ratings; Outlook Negative ------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term foreign currency sovereign credit rating on Belize to 'B-' from 'B'. Standard & Poor's also lowered its long-term local currency sovereign credit rating on Belize to 'B' from 'B+'. The outlook on the ratings remains negative. At the same time, Standard & Poor's lowered its short-term local currency sovereign credit rating on Belize to 'C' from 'B' and affirmed its 'C' short-term foreign currency sovereign credit rating. According to Standard & Poor's credit analyst Olga Kalinina, the downgrades and negative outlook follow the announcement made by the government of Belize on Aug. 30, 2004, that its long-delayed offering of bonds in the international capital markets will not be proceeding. "The government stated in its press release that 'On August 17, 2004, the term of the Government's engagement of Morgan Stanley & Co. Incorporated as lead manager in respect of the offering expired in accordance with the terms of the engagement letter between the Government and Morgan Stanley. In lieu of the bond offering, the Government presently intends to refinance the principal amounts involved directly with the corresponding banks,'" said Mrs. Kalinina. "With the proceeds from the foregone bond no longer forthcoming, the government will be challenged to find other financing sources to meet its amortization needs, an increasingly complex challenge given its deteriorating credit profile and the country's unsettled political situation," she added. The principal repayments from the public sector total US$42 million between Sept. 1, 2004, and year-end 2004, and include US$33 million from the central government and US$9 million from the Development Finance Corporation. Of the amount due from the central government, US$27.2 million is due to various commercial banks, with the largest repayments outstanding owed to the Bank of Miami (US$23.3 million), Royal Merchant Bank of Trinidad & Tobago (US$1.5 million), and Citibank, Trinidad & Tobago (US$857,000). On a monthly basis, the central government's amortization repayments to the commercial banks amount to US$510,000 (September), US$2 million (October), US$60,000 (November), and US$24.6 million (December). In addition to the public sector financing needs, the private sector is estimated to require around US$100 million in order to refinance its obligations through year-end 2004, while the coverage of the current account deficit will necessitate another US$60 million. Altogether, the country's financing needs of more than US$200 million are dangerously high compared with the available official reserves of just above US$70 million. "Finally, Belize's ratings could fall further if the country's liquidity situation deteriorates, which may lead to exchange- rate pressures," noted Mrs. Kalinina. "The worsening of the political situation will also impair Belize's creditworthiness," she concluded. ANALYSTS: Olga Kalinina, CFA, New York (1) 212-438-7350 Helena Hessel, New York (1) 212-438-7349 ============= B E R M U D A ============= FOSTER WHEELER: Adjusts Interest Rate on New Notes --------------------------------------------------- Foster Wheeler Ltd. announced Thursday the recalculated interest rate applicable to the Fixed Rate Senior Secured Notes due 2011, Series A (the "New Notes"), to be issued by Foster Wheeler LLC in the equity for debt exchange offer that the company launched on June 11, 2004. If the exchange offer expires as currently scheduled on September 2, 2004, the New Notes will bear interest at a rate of 10.390% per annum. This rate is equal to 6.65% plus the yield on U.S. Treasury notes having a remaining maturity equal to the maturity of the New Notes determined as of 2:00 p.m. New York City time on the second business day prior to the expiration of the exchange offer. The terms of the New Notes are described in the registration statement on Form S-4 (File No. 333-107054) relating to the exchange offer. The interest rate set forth above supersedes the rate previously announced on August 26, 2004. 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. Telephone: Bankers and brokers: 212-440-9800 Other security holders: 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. Phone: 212-403-3784 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). 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. CONTACT: Foster Wheeler Ltd. Media: Ms. Maureen Bingert Phone: 908-730-4444 or Investors: Mr. John Doyle Phone: 908-730-4270 or Other Inquiries: Phone: 908-730-4000 Web site: http://www.fwc.com =========== B R A Z I L =========== BRASKEM: Selling 11,700,000,000 Class A Preferred Shares -------------------------------------------------------- Braskem, a Brazilian petrochemical and utilities generation company, is selling 7,800,000,000 class A preferred shares in the form of American Depositary Shares, or ADSs, according to an amended Form F-1 filed with the Securities and Exchange Commission. Each ADS represents 1,000 class A preferred shares. In the filing, the company said it is selling 7,800,000 ADSs in the United States and other countries outside Brazil through international underwriters. Braskem is also concurrently offering 3,900,000,000 class A preferred shares in Brazil, the filing added. The ADSs are listed on The New York Stock Exchange under the symbol "BAK." The last reported sale price of the ADSs on The New York Stock Exchange on August 27, 2004 was US$27.41 per ADS. The class A preferred shares are listed on the Sao Paulo Stock Exchange in lots of 1,000 shares under the symbol "BRKM5." The closing price of the class A preferred shares on the Sao Paulo Stock Exchange on August 27, 2004 was BRL81.40 per 1,000 class A preferred shares, which is equivalent to approximately US$27.52 per 1,000 class A preferred shares, based upon an exchange rate of BRL2.957 to US$1.00. The international underwriters have an option to purchase a maximum of 1,170,000 additional ADSs to cover over-allotments of ADSs. The Brazilian underwriters also have an option to purchase a maximum of 585,000,000 additional class A preferred shares to cover over-allotments of class A preferred shares in the concurrent Brazilian offering. Credit Suisse First Boston, Unibanco and UBS Investment Bank were listed as underwriters for the offering. Braskem said it intends to use the net proceeds from the global offering for general corporate purposes, including working capital and the repayment of short-term debt. CEMIG: Stockholders to Vote on Board Proposals ---------------------------------------------- The Companhia Energetica de Minas Gerais (CEMIG) Extraordinary General Meeting scheduled on September 16, 2004, 10:30 A.M., at the company's head office, Avenida Barbacena 1200, 18th floor, Belo Horizonte, in the state of Minas Gerais, Brazil will take up these proposals submitted by the Company's Board of Directors: a) For Cemig to adapt to the new model for the electricity sector, established by Law 10848 of 15 March 2004, a stockholding restructuring is necessary; b) the stockholding reorganization currently in progress provides for the constitution of two wholly-owned subsidiaries, one for Generation and Transmission, and one for Distribution, with Cemig maintaining the role of holding company, and stockholding control of the two companies to be created; c) for the transfer of assets to the wholly-owned subsidiaries which will be constituted it is necessary to contract a technical expert or specialized company for the preparation of a Statement of Valuation, which states reasons, of all the assets of Cemig, related to the activities of generation, transmission and distribution of electricity; d) since Cemig is a company with mixed private-public-sector stockholdings, this contracting was preceded by a tender process, in view of Law 8666/93, and the Executive Officers were authorized to start the administrative process of tender, and to contract services of Valuation of Assets and Physical-Accounting Reconciliation of the Assets of Cemig for the purpose of the process of "unbundling" ("de-verticalization") of the Company; e) the company Servicos Tecnicos de Avaliacoes do Patrimonio e Engenharia S/C Ltda. was declared winner of the said tender; and f) in conformity with Article 8 of Law 6404/76, as amended, the company specialized in valuation of assets must be appointed by the General Meeting of Stockholders; The Board of Directors proposes to submit to the approval of the Extraordinary General Meeting of Stockholders a proposal for appointment of the company Setape - Servicos Tecnicos de Avaliacoes do Patrimonio e Engenharia S/C Ltda. to provide services of Valuation of Assets and Physical-Accounting Reconciliation of the Assets of Cemig, as provided for by Law 6404/76, as amended, and the valuation assessment to be produced by the company will be used in the transfer of the assets to the wholly-owned subsidiaries which will be constituted to effect the stockholding reorganization of the Company. CONTACT: Companhia Energetica de Minas Gerais Avenida Barbacena, 1.200 - Terreo Belo Horizonte, 30190 Phone: (877) 248-4237 e-mail: rv@cemig.com.br Web Site: http://www.cemig.com.br/ USIMINAS: Expects Financial Aid From JBIC on Expansion Plans ------------------------------------------------------------ The Minas Gerais state government said in a statement on its Web site that steelmaker Usiminas is likely to get financial help from the Japan Bank for International Cooperation (JBIC) on its expansion plans. Business News Americas reports that state governor Aecio Neves and Usiminas CEO Rinaldo Campos Soares met with JBIC's executives on Monday (August 30) during an ongoing visit of Minas Gerais state and business officials to Japan. Usiminas, which has Japan's Nippon Steel as one of its shareholders, recently gained approval from its board to build a 60MW thermoelectric plant to increase power generation capacity. No details were provided on the investment required for the construction of the plant, but company executives earlier indicated that the thermoelectric project would involve about US$60 million. The power project should be ready for commercial operation in 2007, said an Usiminas spokesperson. With the new plant, Usiminas will produce 53% of the power it uses, up from the current 24%. ========= C H I L E ========= ENAMI: Codelco May Seek New Sources to Fund Ventanas Transfer ------------------------------------------------------------- The board of state copper company Codelco spent their last meeting trying to figure out how to raise money to finance the transfer of the Ventanas refinery from state mining company Enami, Business News Americas reports, citing Chile's mining minister Alfonso Dulanto. "We need at least US$400mn to take over Enami operations so we looked at what possibilities there were to issue a bond or to look for some financial instrument which would be more appropriate and allow us to take over operations," Dulanto said. But first, Codelco needs to know if the Ventanas transfer will be approved, he said. "How can we take on a loan if we don't even know yet if this will be approved by congress?" The senate mining committee is yet to schedule another meeting to vote on a bill to transfer Ventanas from Enami to Codelco. The recent voting came to a tie as committee members could not come to an agreement to approve the government bill, which seeks to reduce Enami's debt. The disagreement was over the government supposedly not living up to its promise to stop making withdrawals from Enami's profits until completing the US$164 million in fiscal credit the state has with the company. Opposition mining committee senators Baldo Prokurica and Jaime Orpis had both alleged that the government had not fulfilled its part of the bargain. If the next voting comes to a tie once again, the bill's principal article will be formally rejected. The Chilean government had proposed the ownership transfer in order to cut Enami's US$500 million debt, which had began to cripple the company's finances. CONTACT: ENAMI (Empresa Nacional de Mineria) MacIver 459, Santiago, Chile Phone: 637 52 78 637 50 00 Fax: 637 54 52 Email: webmaster@enami.cl Home Page: www.enami.cl/ Contact: Jorge Rodriguez Grossi, President ROYAL SHELL: Mining Minister Says ENAP Not Eyeing Local Assets -------------------------------------------------------------- Chile's Mining Minister Alfonso Dulanto indicated Tuesday that state energy company Empresa Nacional del Petroleo (ENAP) won't vie for the local assets of Royal Dutch/Shell, relates Dow Jones Newswires. Enap, together with a closely held Peruvian conglomerate, agreed to buy Shell's distribution assets in Peru last month. Enap had been searching for an export market for its fuels given the tight competition in the Chilean market. The Peruvian deal marks the first time that Enap has entered the retail fuels business, but similar deals - though possible sometime in the future - won't happen in the near term, Dulanto said. Meanwhile, Shell is expected to sell its Chilean assets in a move to consolidate investments in key countries such as Russia. Local media have speculated that Brazilian state energy company Petroleo Brasileiro (Petrobras) and Repsol YPF SA (REP) are the most likely buyers of the Chilean operation. Last week, Petrobras executives met industry peers in Chile as Petrobras continued its quest for an asset purchase in the Andean country, one of only three South American countries in which it isn't yet active and whose energy market is a declared target. =========== M E X I C O =========== GRUPO MEXICO: Railway Unit Strikes Contract Deal With Workers ------------------------------------------------------------- Grupo Mexico S.A. de C.V. announced Tuesday that its railway subsidiary, Ferrocarril Mexicano (Ferromex), has satisfactorily concluded its contractual negotiation with the National Railroad Workers Union. In a press release, the Mexican copper mining and railroad concern said that the contract revision covered wage and benefits increases above inflation. The agreement with Ferromex workers wrapped up Grupo Mexico's domestic labor issues, after the company settled a strike late last month at its La Caridad mining complex and averted another at Cananea after weeks of negotiations. Those strikes were in part over disagreements about profit sharing. On Tuesday, Grupo Mexico announced that Ferromex workers have received profit sharing for the past five years, largely as a result of "a new labor culture that has allowed greater efficiencies, and above all continuous operations without labor interruptions." CONTACT: GRUPO MEXICO S.A. DE C.V. Avenida Baja California 200, Colonia Roma Sur 06760 Mexico, D.F., Mexico Phone: +52-55-5264-7775 Fax: +52-55-5264-7769 Home Page: http://www.gmexico.com Contacts: Germ n Larrea Mota-Velasco, Chairman and CEO Xavier Garca de Quevedo Topete, President and COO Alfredo Casar Perez, COO, Ferrocarril Mexicano Daniel Chavez Carren, COO, Industrial Minera Mexico Daniel Tellechea Salido, VP and Administration and Finance President ============= U R U G U A Y ============= NUEVO BANCO: Fitch Assigns 'B' to LTFC Debt Rating -------------------------------------------------- Fitch Ratings assigned a long-term foreign currency debt rating of 'B' and a support rating of '4' to Uruguay's Nuevo Banco Comercial S.A. (NBC.YY). The Rating Outlook on the long-term debt rating is Stable. The assigned ratings are based on the bank's broad franchise and important position within the Uruguayan banking system, its good liquidity, adequate capital levels, and its current shareholder, the Uruguayan government. At the same time, the ratings also consider the challenges presented by the process of restructuring assets and liabilities that were acquired from three liquidated entities (Banco de Montevideo, Banco Caja Obrera y Banco Comercial) as well as the challenge of building its business in the context of a weak operating environment. In addition, given that NBC is owned by the government, its relatively high public sector exposure and the risk of political influence in the bank's management are also factored. NBC was created by the Uruguayan government in order to purchase recoverable assets from the three private financial institutions that were liquidated during the banking crisis of 2002. The bank offers universal banking services and ranks fourth largest in the system and second largest among private banks with asset and deposit market shares of roughly 9.4% and 8.4%, respectively. NBC has one of the largest networks in Uruguay with 48 branches, while internationally, it owns a subsidiary in Brazil, Banco Comercial Uruguai. *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and Lucilo Junior M. Pinili, Editors. Copyright 2004. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is $575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *