/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040903.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 Friday, September 3, 2004, Vol. 5, Issue 175 Headlines A R G E N T I N A BANCO NACION: Government Considering $638Mln Infusion CONSTRUCCIONES EDILICIAS: Trustee to Submit General Report El MAGO: General Report Deadline Nears JUNIN 1721: Court Allows Reorganization PRINDAL S.R.L.: Reorganization Concluded QUIMETIL: Trustee Prepares General Report for Submission STOCK INDUSTRIAL: Individual Reports Due Monday TED SAM: Claims Check Ends Monday TELEMONITOREO: Court Orders Liquidation TRANSENER: Enarsa, Dolphin May Purchase Petrobras' Interest B E R M U D A FOSTER WHEELER: Secures Power Plant Deal in Italy B O L I V I A COMIBOL: To Complete Restructuring in October B R A Z I L COPEL: Reveals 4-Yr, $547M Investment Plan CSN: To Retire BRL540Mln of Debt Early PARMALAT: EBITDA Improves 8.4% From Last Year TAM: Launches e-TAM Website TAM/TRANSBRASIL/VARIG/VASP: To Face Fines Pending Final Review TELESP CELULAR: Launches Voluntary Cash Tender Offer UNIBANCO: BOVESPA Includes Units in IBrX-50 Index USIMINAS: Reveals $600Mln Investment for Mill Expansion C H I L E ENAMI: Codelco Board OKs $500M Bond Issuance D O M I N I C A N R E P U B L I C TRICOM: Fails to Make Principal Payment on Senior Notes M E X I C O AHMSA: Turns to Russians for Funds CYDSA: To Propose $169M Capital Increase PEMEX: Issues Another $44M in Short-Term Bonds P U E R T O R I C O CENTENNIAL COMMUNICATIONS: Lowers Net Loss to $22.8M for FY 2004 T R I N I D A D & T O B A G O WASA: Wants Government To Write Off $500M Debt U R U G U A Y * URUGUAY: IMF Director Challenges Government to Sustain Growth - - - - - - - - ================= A R G E N T I N A ================= BANCO NACION: Government Considering $638Mln Infusion ----------------------------------------------------- As part of an effort to bolster Argentine bank Banco Nacion's finances, the government plans to inject ARS1.9 billion (US$638 million) into the country's largest federally run bank, local daily Ambito Financiero reports, citing central bank sources. The move follows a recent meeting between IMF's managing director Rodrigo de Rato and central bank chief Alfonso Prat-Gay regarding Argentina's state bank reform. The local daily suggested that the IMF is irritated with the slow progress and many delays in Argentina's attempts to reform its largest state banks. Specifically, Banco Nacion is making little progress in its reform as the local authorities have called for a new selection process after the first round of bids were deemed unsatisfactory. The problem of the current state bank reform in Argentina is not technical but political because any recommended changes that may imply, for example, staff reductions, would be highly unpopular in today's dire unemployment situation, Rafael Ber, managing director of local consultancy Argentine Research told Business News Americas. CONSTRUCCIONES EDILICIAS: Trustee to Submit General Report ---------------------------------------------------------- Mr. Daniel Alberto Del Castillo, the trustee serving in the Construcciones Edilicias S.R.L. bankruptcy, will submit a general report of the case on Monday, September 6, 2004. The general report provides the court with an audit of the Company's accounting and business records. Court No. 22 of Buenos Aires' civil and commercial tribunal has jurisdiction over the proceedings. Clerk No. 44 assists the court on this case. CONTACT: Ms. Daniel Alberto Del Castillo, Trustee Presidente Peron 1558 Buenos Aires El MAGO: General Report Deadline Nears -------------------------------------- A general report on the EL Mago S.A. bankruptcy case will be presented in Court No. 6 of Buenos Aires' civil and commercial tribunal on Monday, September 6, 2004. Court-appointed trustee, Mr. Luis Traverso, will consolidate the Company's accounting and business records to come up with the general report. The report will also provide information regarding events relevant to the ongoing bankruptcy. CONTACT: El Mago SA Azcuenaga 668 Buenos Aires Mr. Luis Traverso, Trustee Avenida Corrientes 1820, piso 10 "B" Buenos Aires JUNIN 1721: Court Allows Reorganization --------------------------------------- Court No. 17 of Buenos Aires' civil and commercial tribunal issued a resolution opening the reorganization of Junin 1721 S.R.L. 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. Dina Leonor Lorenzon will serve as trustee during the course of the reorganization. She will be validating creditors' proofs of claims until October 14, 2004. The results of the verification will be presented in court as individual reports on November 25, 2004. The trustee is also obligated to give the court a general report of the case on February 8 next year. The general report summarizes events relevant to the reorganization and provides an audit of the Company's accounting and business records. Junin will present the completed settlement proposal to its creditors during the informative assembly scheduled on June 3 next year. CONTACT: Ms. Dina Leonor Lorenzon, Trustee Viamonte 749 Buenos Aires PRINDAL S.R.L.: Reorganization Concluded ---------------------------------------- The settlement plan proposed by Prindal S.R.L. 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. CONTACT: Prindal S.R.L. Buenos Aires QUIMETIL: Trustee Prepares General Report for Submission -------------------------------------------------------- Buenos Aires-based Quimetil S.A. nears the completion of its reorganization with the submission of the general report on Monday, September 6, 2004. Mr. Pedro Luis Santa Maria, overseeing the reorganization proceedings as trustee, will prepare and submit this report for Court No. 9 of the city's civil and commercial tribunal. The informative assembly, the last stage of the reorganization, is scheduled on November 9. CONTACT: Pedro Luis Santa Maria, Receiver Lavalle 1430 Buenos Aires STOCK INDUSTRIAL: Individual Reports Due Monday ----------------------------------------------- Court No. 7 of Buenos Aires' civil and commercial tribunal will finalize the list of Stock Industrial S.R.L. creditors eligible for post-liquidation payment after reviewing the individual reports due for submission on Monday, September 6, 2004. Court Appointed trustee, Mr. Luciano Arturo Melagari, will prepare these report from the claims submitted by the Company's creditors during the credit verification period. CONTACT: Stock Industrial S.R.L. Guemes 4338 Buenos Aires Mr. Luciano Arturo Melagari, Trustee Bartolome Mitre 1131 Buenos Aires TED SAM: Claims Check Ends Monday --------------------------------- Trustee Carlos Manuel Carrescia will validate creditors' proofs of claims until Monday, September 6, 2004. After Verifications, the results will be presented in court as individual reports on October 20, 2004. The trustee is also required to provide a general report for court submission on November 30, 2004. The general report summarizes events relevant to the reorganization and provides an audit of the Company's accounting and business records. CONTACT: Mr. Carlos Manuel Carrescia, Trustee Tucuman 1621 Buenos Aires TELEMONITOREO: Court Orders Liquidation --------------------------------------- Telemonitoreo Internacional S.A. prepares to wind up its operations following the bankruptcy pronouncement issued by Court No. 14 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. Adriana Beatriz Elisii as trustee. She will be reviewing creditors' proofs of claims until September 10, 2004. The verified claims will be the basis for the individual reports to be presented for court approval on October 26, 2004. Afterwards, the trustee will also submit a general report on December 9, 2004. Clerk No. 28 assists the court on this case, which will end with the disposal of the company's assets to cover its liabilities. CONTACT: Ms. Adriana Beatriz Elisii, Trustee Avda Cabildo 2040 Buenos Aires TRANSENER: Enarsa, Dolphin May Purchase Petrobras' Interest ----------------------------------------------------------- Argentina's new state-owned energy company Energia Argentina SA (Enarsa) may partner with the local Dolphin Group in buying Brazilian federal energy company Petrobras' stake in Transener, Business News Americas reports, citing Argentine newspaper Ambito Financiero. Petrobras owns 50% of the Citilec holding that owns 65% of Argentine transmission company Transener. Earlier, Dolphin, which is headed by businessman Marcelo Mindlin, offered US$16 million for the 50% stake while also assuming all debt. But Petrobras, which is seeking US$40 million for the stake, turned down Dolphin's offer. The newspaper indicated that Dolphin and Enarsa would each put up US$16 million. Dolphin already owns 50% of Citilec. In December 2003, Dolphin bought a 7.52% stake from another private equity fund, The Argentine Investment Company. It then purchased another 42.5% from British company National Grid (NGG) in March. If the latest plan to buy Petrobras' stake goes thru, Dolphin would end up with 75% of Citilec. CONTACT: Paseo Colon 728 6th Floor (1063) Buenos Aires Republica Argentina Tel: (54-11) 4342-6925 Fax: (54-11) 4342-7147 Email: info-trans@transx.com.ar Web site: http://www.transener.com.ar ============= B E R M U D A ============= FOSTER WHEELER: Secures Power Plant Deal in Italy ------------------------------------------------- Foster Wheeler Ltd. (OTCBB: FWLRF) announced Wednesday that its subsidiary Foster Wheeler Italiana S.p.A. has been awarded a lump-sum turnkey contract by SET S.r.l. for the engineering, procurement, and construction (EPC) of a 400 MW grassroots combined-cycle plant to be built at Teverola, Italy. SET is a project company. Its majority shareholder is Ratia Energie AG, a Swiss utility company, and its minority shareholder is Merloni S.p.A. The terms of the contract were not disclosed, and the booking is included in the second-quarter. "This award is a major win for Foster Wheeler and confirms our leading position in executing major EPC projects in the power- generation sector," said Umberto della Sala, president and CEO, Foster Wheeler Italiana. "This new facility will be built in an area where Foster Wheeler Italiana, in partnership with Merloni, already owns and operates a 150 MW combined-cycle cogeneration plant," added Gianfranco Brustia, Director of Foster Wheeler Italiana's Power Division, "which reconfirms Foster Wheeler's position as one of the major players in this strategic market." The plant is a natural gas-fired power station and will produce electricity to be delivered to the Italian National Grid. The power island includes a multi-shaft arrangement consisting of a gas turbine, a heat recovery steam generator (HRSG), and a steam turbine, connected to an air-cooled condenser. Foster Wheeler Italiana will provide engineering, materials supply, erection, construction supervision, pre-commissioning, commissioning, start-up, and testing, up to commercial operation. Foster Wheeler Italiana's Equipment Division will design and supply the HRSG. General Electric will supply the power package, which includes the gas turbine, the steam turbine, the associated generators, and auxiliary equipment. The plant is expected to be fully operational by the end of 2006. 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 Contact: Ms. Maureen Bingert Phone: 908-730-4444 or Other Inquiries: Phone: 908-730-4000 Web Site: http://www.corporate-ir.net ============= B O L I V I A ============= COMIBOL: To Complete Restructuring in October --------------------------------------------- Bolivian mining firm Comibol will once again operate as a production company when it emerges from a restructuring this October, says Business News Americas. Although Comibol will continue as a mining project managing company, its recent control of the Huanuni and Caracoles mines enlarges its scope to include production. The Company assumed control of the Huanuni after its joint venture partner in the operation filed for bankruptcy. Last June, Comibol took control of the Caracoles mines after the Embas concession contract was revoked. Comibol's entry into the metals production market coincides with rising prices in the international markets. =========== B R A Z I L =========== COPEL: Reveals 4-Yr, $547M Investment Plan ------------------------------------------ Brazil's Parana state integrated power company Copel (NYSE: ELP) plans to invest up to BRL1.6 billion (US$547mn) through 2007 to expand generation, transmission and distribution operations, reports Business News Americas. The company plans to invest BRL390 million this year, BRL400 million in 2005, BRL420 million in 2006 and BRL425 million in 2007. The investment program includes the conclusion of the 250MW Elejor hydroelectric project, which requires an estimated BRL400 million investment. Original plans included the national development bank BNDES providing the funds for the project. Recently, however, Aneel and state legislators allowed Copel to raise its stake in the Elejor project to 70% from 30%. Since Copel is state-controlled, the higher stake in the project means that the financing from BNDES is no longer available because an agreement between Brazil and the International Monetary Fund (IMF) limits financing to state-controlled companies. According to a Gazeta Mercantil report, Governor Requiao is in talks with the federal government to ease financing rules to allow Copel to sell debt to finance the conclusion of the project. CONTACT: Companhia Paranaense de Energia - Copel Investor Relations Department Mr. Ricardo Portugal (55-41) 331-4311 Mr. Alves Solange Maueler Gomide (55-41) 331-4359 E-Mail: ri@copel.com Web Site: www.copel.com CSN: To Retire BRL540Mln of Debt Early -------------------------------------- Brazil's Companhia Siderurgica Nacional (CSN), Latin America's largest integrated steel maker, plans to make early payments on BRL540 million ($1=BRL2.93) of debt due February 2005, Dow Jones Newswires reports. In a statement sent to Brazil's stock exchange Wednesday, the company revealed it will pay a premium of 1% of the principal on the debt it plans to retire, as well as all interest payments, through Oct. 4. Dow Jones recalls that CSN sold two series of bonds in January 2002, raising BRL690 million. The first series, which will be retired early, pays interest of 2.75% a year on top of the interbank overnight interest rate, the CDI. The second series of BRL150 million, which comes due in February 2006, pays interest of 13.25% a year on top of the IGP-M inflation index. In related news, the company confirmed plans unveiled last month to sell new five-year debentures not convertible into shares. CSN had originally proposed to issue BRL750 million but has reduced the minimum offering to BRL625 million. The company, however, said it may eventually raise the total to the higher amount. CONTACT: CSN Luciana Paulo Ferreira, Investor Relations Tel: 5511 3049-7591 E-mail: luferreira@csn.com.br Web site: http://www.csn.com.br PARMALAT: EBITDA Improves 8.4% From Last Year --------------------------------------------- Parmalat Finanziaria S.p.A. in Extraordinary Administration communicates the financial and economic results for the Parmalat Group as at 31 July 2004: A number of the non-Italian operations of the Group identified in previous months as being subject to "Special Proceedings" (for example USA Dairy, Brazil, Chile, EVH) and some financial companies (for example Parmalat Capital Finance) are currently subject to certain restrictions on their management as a result of the same local proceedings with the result that these operations are effectively outside of the control of Parmalat Finanziaria S.p.A. in Extraordinary Administration. It has for this reason been decided to remove these businesses from the total consolidation area of the Group and to record them according to a net equity methodology. This will be the case while any eventual obligations Parmalat Finanziaria S.p.A. in Extraordinary Administration may be found to have on the basis of legislation in force in the countries in which these businesses are headquartered, together with any guarantees to those that financed these companies, have been examined in greater detail and checked. More specifically: - USA Dairy (Parmalat USA Corp., Farmland Dairies, Milk Products of Alabama) is the American business operating in the milk and milk related products sector and which is subject to Chapter 11 protection; - for two Brazilian companies (Parmalat Brasil and Parmalat Partecipa�oes) a local Concordata procedure has been agreed that also covers their subsidiary companies; - the Chilean business is also subject to a local concordat procedure; - EVH, a company incorporated in Canada, has been laced into liquidation; - Parmalat Capital Finance has been placed into a procedure granting protection by the local court. This group of compamies includes Eurofood IFSC, which is currently subject to a dispute with the Irish judicial authorities who contend that the Italian Extraordinary Administration proceedings do not apply to this company. As a consequence of taking account of the above, pro forma results for the revised consolidation relating to the previous financial year have been drawn up. It is these figures that are comparable with the relevant results for the current year. HIGHLIGHTS: Core Activities Parmalat's Core Activity revenues have generally held up well when compared to the same period in the previous year (?2.110,6 million compared to ?2,168.9 million), while Ebitda improved by 8.4% to ?146.8 million compared to ?135.4 million for the same period in 2003. This improvement in operating results is largely due to initiatives of a commercial nature and thanks to operating and structural cost reduction measures. These results do not take account of the extraordinary costs relating to the Administration procedure of some ?34 million for the period to date, since these relate only to the 2004 financial year. Revenues for the last month (the difference between the revenue figure reported for the end of July 2004 and that to the end of June 2004) were ?325.8 million, while EBITDA was ?22.2 million (6.8% of revenues), substantially maintained the improving trend of previous months. Specifically, looking at the Group's main geographical areas of operation, the following is evident: Italy Revenues for the period to the end of July reached ?806.3 million, down 7.8% compared to the ?874.1 million recorded in the same period in 2003. However, Ebitda improved by 11.5% moving from ?50.4 million at 31 July 2003 to ?56.2 million as at 31 July 2004. Revenues for the month of July were ?114.3 million while EBITDA was ?6.7 million (5.9% of revenues). The trend remains a positive one even if reduced in magnitude compared to the previous months as a result of a lower contribution from fruit juices compared to the same period of last year. This is as a result of the different weather conditions and to the seasonality of pasteurized milk, the level of whose sales falls in the summer months, all of which has translated into a lower contribution to results. It should also be noted that there has been an increase in the cost of some raw materials and an increased impact in percentage terms of fixed business costs (which remain unchanged in absolute terms compared to the previous year). Steps are under way in the second half of the year in order to reduce the level of these costs. Spain Revenues for the period were ?136.7 million compared to the ?139.5 million achieved as at 31 July 2003. Ebitda for the same period was down from ?14.3 million to ?10.3 million. Revenues for the month of July 2004 were ?22.4 million while Ebitda reached ?2.4 million (10.7% of revenues), an improvement on the trend of recent months. The factors underlying the decrease in Ebitda were an increase in the cost of milk, a lower contribution from the seasonally influenced Royne branded ice creams given the less clement weather conditions than were seen in the same period last year, as well as increased price competition and the launch of new products by competitors. South Africa Revenues as at 31 July 2004 of ?135.2 million grew of 31.1% compared to the ?103.2 million of the same period in 2003. Ebitda also grew significantly from ?8.1 million to ?10.6 million (+30.7%). This increase in profitability was principally due to the acquisition of new brands (Simonsberg) as well as to the appreciation of the South African Rand against the Euro (+8.2% compared to the same period of last year). Revenues for the month of July 2004 were ?22.1 million and Ebitda for the month was ?1.6 million (7.2% of revenues). The month was characterised particularly by a marked increase in sales volumes of low margin products. Venezuela Relative to the same period in 2003, the Venezuelan Bolivar has undergone a significant depreciation against the Euro (-25.2%), in part following to domestic political uncertainty. This, along with the absence of sufficient credit lines for the import of raw materials (powdered milk) and reduced sales volumes in fruit juices, led to a reduction in revenues which fell from ? 116 million as at 31 July 2003 to ?87.2 million as the end of July 2004 (-24.8%) and, above all, the strong decrease in operating profitability which fell from ?15.5 million to ?2.4 million as a result of increased local raw material costs that were not balanced by a rise in retail pricing, and higher relative structural costs. Revenues for the month of July 2004 were ?12.4 million and Ebitda was ?0.3 million, without any issues of specific note for the period. Canada As seen in previous months the Canadian market maintained the slight growth trend of the previous months at the revenue level moving from ?659.6 million to ?668.4 million offsetting the slight depreciation of the Canadian dollar relative to the Euro (-2.5%). Ebitda of ?42.9 million at the end of July 2004 improved of 4.2% compared to the same period in 2003 (?41.1 million). July 2004 volumes increased compared to the average volumes seen in the first half of 2004, with profitability remaining stable. Revenues for the month were ?110.8 million while Ebitda was ?7.3 million (6.6% of revenues). Australia In a context of a reduced average unit selling price, a favorable trend in the Australian dollar exchange rate (+6.3%) and an increase in volumes, revenues reached ?220 million, up 4.4% compared to the ?210.7 million of the same period in 2003. These same factors, together with a reduction in general and promotional expenses and improved raw materials purchasing, contributed to an improvement in Ebitda (?17.3 million for the period) compared to the ?16.2 million in the same period in the previous year (+6.5%). Revenues for the month of July were ?37.4 million, a strong increase on the average revenues of the first six months, while Ebitda of ?3.5 million (9.4% of revenues), was also up on the previous month. Non-Core Activities Non-Core Activities registered a significant fall in revenues as at 31 July 2004 compared to the same period last year (?357.8 million compared to ?502.5 million, down 28.8%) although Ebitda for the same businesses, while still heavily negative, showed an improvement at a negative ?15.2 million compared to a negative ?29.7 million for the same period in 2003. In July 2004 total sales were ?49.5 million and Ebitda was a negative ?2.7 million (a negative 5.5% of revenues). The strong reduction in losses compared to 2003 is principally linked to actions undertaken in Italy and at the US bakery operations. Italy The Non-Core activities of Parmalat Spa (consisting principally of businesses in the bakery, juice and tomato sectors) more than halved their losses for the period (from a negative ? 9.5 million to a negative ?4,1 million) thanks principally to the suspension of the activities in the mineral water sector and a drastic reduction in promotional and advertising activities related to bakery and juices. In the same way greater attention to commercial expenses and reduced structural costs led to a reduction in losses at other Non-Core Italian businesses, falling from a negative ?7 million in 2003 to a negative ?2.7 million as at the end of July 2004. USA Bakery The US bakery activities, whilst experiencing a fall in revenues have seen a marked improvement in operating profitability (even if this still remains in negative territory, moving as it has from a negative ?13 million in 2003 to a negative ?5.4 million at the end of July 2004), this thanks to the reorganization and repositioning under way in the business. Heavily negative results have been recorded in Mexico where operations have been badly hit by the Group's financial crisis and the resulting impact on their operating performance. Ebitda has worsened from ?0.5 million at 31 July 2003 to a negative ?2.4 million as at 31 July 2004. The assets of the Mexican business have, moreover, been divested during the month of July. Net Financial Position: Compared to the situation at 31 December 2003, the Group's net financial position as at 31 July 2004 shows the following characteristics: increased levels of liquidity, thanks largely to the attention paid to the management of available resources and to the disposal of Parmalat S.p.A.'s holdings in MCC S.p.A. and Banca di Roma S.p.A. and of Parmalat Finanziaria S.p.A.'s disposal of its holding in Fondo Alfieri. On the liability side there has been a small increase almost entirely resulting from a change in the rates of exchange between the Euro and currencies in countries outside Europe where the Group operates, from an increase in accruals for liabilities for interest and from an increase in the indebtedness of the Group's Canadian businesses as noted below. No use has been made until now of the line of credit of ?105.8 million provided by a pool of banks on 4 March 2004. With reference to those companies that have been consolidated in their entirety, the net financial debt with third parties is divided as follows: Situation Situation Situation Pro-Forma as at as at as at 31 December 30 June 31 July 2003 2004 2004 Values in millions of Euro Companies in extraordinary administration subject to proposed composition with creditors 10.055,3 10.058,2 10.048,6 Other companies in extraordinary administration 56,9 40,6 41,4 Other companies 1.329,3 1.354,5 1.386,9 ------------------------------------------------------------ Financial indebtedness/Total 11.441,5 11.453,3 11.476,9 Companies in Extraordinary Administration The net indebtedness of these companies towards third parties, incurred prior to their entry into Extraordinary Administration, should be considered as being largely short-term in nature, given the current situation of default on the covenants underlying the financial contracts. Of particular note is the increased levels of liquidity at the companies subject to proposed Composition with Creditors, this having increased from ?24 million as at 31 December 2003 to ?68.5 million as at 31 July 2004; ?19.4 million of this amount is subject to a restriction by a credit institution with regard to its use. Other Companies The remaining operating and financial companies not subject to the Procedure and totally consolidated, have net financial indebtedness towards third parties as at 31 December 2003 of ?1,329.3 million, at 30 June 2004 of ?1,354.5 million and at 31 July 2004 of ?1,386.9 million. Of this amount ?710.3 million is represented by debt of a medium or long term nature. A number of companies are currently in talks to renegotiate their debt in order to consolidate it. Amongst the companies which have already closed such agreements it should be noted that the Group's Canadian operating companies have finalized during the course of July the refinancing of their debt. This entailed a ?43.7 million penalty for the early redemption of the previous debt as a result of the default situation. Following payment of this penalty new financing was put in place that will be repaid by 2012 and that has been included in the calculation of the Group's financial position as at 30 June of this year. The further increase in debt during the month of July also relates to the Canadian operations and derives from the repayment of a securitization of commercial credits and to the financing costs linked to the transaction, for a total amount of ?32 million. Principal Companies in Extraordinary Administration The net financial position of the company is substantially unchanged. The increase of ?1.5 million in intercompany financial debt in the month of July 2004 compared to the month of June 2004 (which under financial assets can be seen in an increase in liquidity) relates to the granting of a loan by Parmalat S.p.A. The net financial position of Parmalat S.p.A. is substantially unchanged. More specifically, compared to 31 December 2003, the financial resources of the company were positively effected by the divestment of the holdings in MCC S.p.A. and Banca di Roma S.p.A. These divestments along with the performance of the operating business, generated new cash that permitted, above and beyond covering the ongoing requirements of the business, an increase in the total available liquidity (up from ?6.6 million to ?19.7 million) and the granting of inter-company credits of ?22.4 million, principally in favour of units in North America (?10.7 million), Parmalat Finanziaria (?4.6 million), Parmalat Uruguay (?1.7 million) and units in Germany (?1.6 million) Finally it should be noted that during the course of July 2004 liquid resources decreased (from ?22.7 million to ?19.7 million) principally as a result of financing granted to other Group companies (?2.3 million). Eurolat S.p.A. This company also saw its debt position consolidated compared to the month of December 2003 having not had to seek new financing. The cash position at the end of the month of July produced a level of liquidity that was lower compared to the previous month as a result of having had to make supplier payments that were higher than the running average of previous months. Lactis S.p.A. Available liquidity grew from ?0.4 million to ?3.7 million, while financial liabilities remained unchanged compared to 31 December 2003. Significant Events during July and August The events listed in the following summary that occurred during the course of July and in the month of August are already covered by specific press releases available to view in their entirety on the website www.parmalat.com. 12 July Completion of the refinancing of the Group's Canadian subsidiaries 14 July Announcement of the recovery ratios in the proposed Composition with Creditors and publication of sections of the non-final version of the Group's Restructuring Plan. 19 July Publication of the economic and balance sheet positions of Parmalat S.p.A. in Extraordinary Administration, Parmalat Finanziaria S.p.A. in Extraordinary Administration and the consolidated figures for the Parmalat Group. With regard to the latter a brief report was also published covering the management of the Group as well as a report by the external auditors. 19 July Sale of the Assets of Parmalat De Mexico S.A. De CV and signing of licensing contracts for Parmalat brands. 21 July Establishment of the Parmalat Creditors Foundation by those Parmalat companies in Extraordinary Administration that are subject to the proposed Composition with Creditors. 22 July Initiation by the Competition Authorities in Italy of two cases against Parmalat relating to the failure to comply with conditions set out in 1999 relating to the authorisation to require Eurolat from the Cirio Group (specifically the disposal of Newlat) and for the failure to communicate in advance the acquisition of a controlling position in Carnini. The actions that are the subject of the investigation are entirely attributable to the previous management of Parmalat. 23 July Authorisation of the Parmalat Restructuring Plan by the Minister of Production Activities, Antonio Marzano, in agreement with the Minister for Agricultural and Forestry Affairs Gianni Alemanno. 26 July The acquisition by the Parmalat Creditors Foundation of the entire share capital of Parmalat S.p.A. (formerly Cimabue S.r.l.). This company will become the third party Assumptor for the Composition with Creditors. 27 July The recognition of the legal validity of the Parmalat Creditors Foundation by the Prefecture of Parma. 29 July The announcement of an agreement, without the payment of any fine, by Parmalat Finanziaria S.p.A. in Extraordinary Administration to settle the case bought before the New York Court by the Securities and Exchange Commission of the United States. 29 July The filing by the Extraordinary Commissioner of a complaint with the uperior ourt of Bergen County in the State of New Jersey requesting hat Citigroup Inc. and a number of its subsidiaries be required to pay damages. The Extraordinary Commissioner contends that the companies named in the action played an active part over an extended period of time in bringing about damages to the Parmalat Group which as at today are estimated to be a value of approximately US$10 billion. 30 July The admission into Extraordinary Administration, by decree of the Minister of Production Activities, of Streglio S.p.A. and the appointment of Dr. Enrico Bondi as Extraordinary Commissioner of the above mentioned company. On 27 July 2004 Streglio S.p.A. had requested insolvency status with the Civil Court of Parma. 6 August Request to the Court of Parma that UBS Limited be subject to a claw-back action following bankruptcy for an amount of ?290 million plus interest. 9 August Request to the Court of Parma that Deutsche Bank S.p.A be subject to a clawback action following bankruptcy for an amount of ?17 million plus interest. 10 August Publication on a number of European daily newspapers of the decrees of the delegated Judge dated 3 August 2004 and 6 August 2004 relative to the proposed Composition with Creditors and the summary Restructuring Plan for the Parmalat Group. The relevant press release was not distributed into the United States of America or other restricted territories. 11 August Notification to bond holders of the procedure to unblock their securities. As a consequence of this holders of such bonds are able to trade their securities. 13 August Approval by the local court in Brazil of the request for protection from creditors of Parmalat Brasil and Parmalat Partecipa�oes as presented by Felsberg & Associates. 17 August Publication of a Notice relating to the registration as credits of Private Placements. This Notice makes clear that holders of Private Placements are required to request inclusion amongst the issuing company's creditors in order to have their status as creditors confirmed. 18 August The filing by the Extraordinary Commissioner of a complaint with the Circuit Court of Cook County in the State of Illinois requesting that the former external auditors of Parmalat, Grant Thornton International and Deloitte Touche Tohmatsu and their US and Italian subsidiaries be required to pay damages relating a series of accusations. The Extraordinary Commissioner asserts that the former external auditors played an absolutely central role in the causing of damages that overcame the Parmalat Group and in relation to this is requesting that the firms in questions be condemned to pay damages of no less than US$10 billion. 19 August Request to the Court of Parma that Credit Suisse First Boston International be subject to a claw-back action following bankruptcy for an amount of ?248.3 million plus interest. TAM: Launches e-TAM Website --------------------------- The e-TAM website, local airline TAM's alternative to the expensive Global Distribution System (GDS), is expected to lure more travel agents into using the network to book seats and sell tickets, Valor Economico reports. The project, according to commercial logistics director Mr. Ubiratan Motta, will save the company US$40 million per year. In 2003, overall expenses with sales amounted to BRL700 million. TAM has invested over BRL30 million to implement the scheme. To date, e-tam has already conquered 70 percent of the 1,500 travel agents composing the GDS market. TAM/TRANSBRASIL/VARIG/VASP: To Face Fines Pending Final Review -------------------------------------------------------------- Four leading Brazilian airlines could pay fines equivalent to 1% of their 1999 gross revenues if Brazil's antitrust watchdog upholds its decision, says Reuters. On Wednesday, four councilors of the antitrust body Cade (Administrative Council for Economic Defense) voted to impose the fines on Varig, TAM, VASP and the defunct Transbrasil. The decision, however, is not yet final as the head of the watchdog body asked for a suspension of the process to give her more time to decide. Technically, that means the agency's four councilors who voted in favor of the fines could still change their minds, although they rarely do. The fines apply to 1999 revenues because that is the year preceding 2000, when the complaint against the companies was lodged. A rough calculation of the companies' results in 1999 indicated Varig's fine would come to about BRL45 million (US$15.4 million), Vasp BRL14.3 million, TAM BRL8.2 million and Transbrasil BRL7.8 million. TELESP CELULAR: Launches Voluntary Cash Tender Offer ---------------------------------------------------- Telesp Celular Participacoes S.A. (NYSE: TCP; BOVESPA: TSPP3 (common shares), TSPP4 (preferred shares))("TCP" or "the Company") and Tele Centro Oeste Celular Participacoes S.A. (NYSE: TRO; BOVESPA: TCOC3 (common shares), TCOC4 (preferred shares))"TCO" inform their respective shareholders that TCP, the controlling shareholder of TCO, commenced Wednesday a Voluntary Public Tender Offer ("VTO") for the acquisition of up to 84,252,534,000 preferred shares issued by TCO ("Maximum Number of Shares") in an auction to occur on the Sao Paulo Stock Exchange (the "BOVESPA"). In no event will TCP purchase more than the Maximum Number of Shares. In the event of excess of demand in the auction, a pro rata adjustment will be made among the shareholders participating in the VTO. The VTO price is R$10.70 (ten Brazilian reals and seventy cents) per lot of thousand shares ("price"), which represents a premium of 20% (twenty percent) over the weighted average closing price of the preferred shares of TCO over the 30 (thirty) trading days on the BOVESPA up to and including the date of the initial announcement of the VTO on August 24, 2004. Unless otherwise extended or terminated, the acquisition of any shares tendered in the VTO will occur on October 8, 2004. The price will be paid upon delivery of the shares, in Brazilian reals, pursuant to the rules issued by the Companhia Brasileira de Liquidacao e Custodia -- CBLC (the Brazilian Settlement and Custody Company) and the terms that will be set forth in the public notice (Edital) for the VTO. The other terms and conditions of the VTO have been published by means of an Edital in Brazil and a summary advertisement in the New York Times in the United states, in each case dated September 1, 2004. The Company has filed, with the Securities and Exchange Commission ("SEC"), a tender offer statement on Schedule TO dated September 1, 2004, which contains the complete terms of the offer. The number of shares that TCP is offering to acquire was determined to allow TCP to increase its participation in the share capital of TCO without suppressing the liquidity of the remaining preferred shares for purposes of applicable regulations (specifically Instruction no. 361 of the Brazilian Comissao de Valores Mobiliarios ("CVM") of March 5, 2002). In accordance with the terms and conditions of the Announcement to the Shareholders published in the newspaper Gazeta Mercantil on August 17, 2004, relating to the exercise of appraisal rights in the context of the mergers of shares of Telegoias Celular S.A., Telems Celular S.A., Telemat Celular S.A., Teleacre Celular S.A. and Teleron Celular S.A. by TCO, the shareholders of such companies which, by August 24, 2004, have exercised their appraisal rights will be entitled to the positive difference between the (i) reimbursement amount under the appraisal rights, and (ii) the amount they would have been entitled to receive if they had participated fully in the VTO (taking into account pro rata adjustments). Any shareholder who has exercised the appraisal rights, as provided in the paragraph above, will receive the payment to which it is entitled, as mentioned in the paragraph above, through BANCO ABN AMRO REAL S.A. according to the same procedure contemplated for the payment of the reimbursement amount under the appraisal rights. This press release does not constitute an offer to purchase or a solicitation of an offer to sell securities of TCO. TCO shareholders are strongly advised to read carefully the Edital and other relevant documents related to the VTO that have been published by TCP or filed with the CVM or the SEC, including the tender offer statement on Schedule TO (and, in the case of the English-language documents filed with the SEC, shareholders may read the Portuguese translations, which will be filed with the CVM) because they contain important information. TCP intends to fund the tender offer with debt, and, taking into account the outcome of the tender offer, among other factors, the Company will evaluate a potential capital increase if it considers a reduction of its level of indebtedness to be advisable. CONTACT: Telesp Celular Participacoes SA Rua Abilio Soares 409, - 10o andar Sao Paulo, 04005 Phone: (212) 889-4350 UNIBANCO: BOVESPA Includes Units in IBrX-50 Index ------------------------------------------------- Unibanco reports that Sao Paulo Stock Exchange (BOVESPA) announced Wednesday the new composition of the IBrX-50 index, comprising the 50-best classified stocks according to a negotiability index, calculated by BOVESPA, and that have a trading floor presence of at least 80%, measured in the last twelve months. The UNITs (BOVESPA: UBBR11), certificates consisting of one preferred share of Unibanco and one preferred share of Unibanco Holdings, are now index members with 2.724% weight as of September 1st. This weight represents the 11th position in the index portfolio. The new index portfolio will be effective from September 1st to December 31st, 2004. The inclusion of the UNITs in the IBrX-50 portfolio is another step to increase their liquidity in the Brazilian market. CONTACT: Unibanco - Uniao de Bancos Brasileiros S.A. Av. Eusebio Matoso 891, 15th Floor Sao Paulo, 05423 e-mail: investor.relations@unibanco.com.br Web Site: http://www.unibanco.com.br/ USIMINAS: Reveals $600Mln Investment for Mill Expansion ------------------------------------------------------- Brazil's Minas Gerais state government announced on its Web site that flat steelmaker Usiminas will invest about US$600 million in the coming months to increase output capacity at its Ipatinga mill, relates Business News Americas. The announcement follows a meeting in Tokyo between Minas Gerais state governor Aecio Neves, Usiminas CEO Rinaldo Campos Soares and executives at Japan's Nippon Steel, one of Usiminas' shareholders. Nippon Steel has approved the investments in the construction of a coke plant, a blast furnace and a thermoelectric unit, Minas Gerais state said. ========= C H I L E ========= ENAMI: Codelco Board OKs $500M Bond Issuance --------------------------------------------- Chile's state copper company Codelco has gained approval from its board to issue of up to US$500 million in bonds on local and international markets, reports Business News Americas. In a brief filing to the Santiago stock exchange Wednesday, the company said that the decision to authorize the issue was adopted in a board meeting on August 30. Earlier, Chile's Mining Minister Alfonso Dulanto, who is also Codelco's president, indicated that the proceeds will be used to finance the transfer of the Ventanas refinery from state minerals company Enami. Dulanto said that Codelco needs at least US$400 million to take over Ventanas. The transfer of Ventanas to Codelco is part of a government strategy to pay off Enami's debts but requires congressional approval. 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 =================================== D O M I N I C A N R E P U B L I C =================================== TRICOM: Fails to Make Principal Payment on Senior Notes ------------------------------------------------------- Tricom, S.A. (OTC: TRICY) announced Wednesday that it will not be making the $200 million principal payment on its 11-3/8% Senior Notes due Wednesday. The Company suspended principal and interest payments on its unsecured indebtedness and principal payments on its secured indebtedness, including the 11-3/8% Senior Notes, in October 2003. About Tricom Tricom, S.A. is a full-service communications services provider in the Dominican Republic. It offers local, long-distance, mobile, cable television and broadband data transmission and Internet services. Through Tricom USA, it is one of the few Latin American-based long-distance carriers licensed by the U.S. Federal Communications Commission to own and operate switching facilities in the United States. Through its subsidiary, TCN Dominicana, S.A., it is the largest cable television operator in the Dominican Republic based on its number of subscribers and homes passed. It also offers digital mobile integrated services including two-way radio and paging services in Panama using iDEN(R) technology. CONTACT: Investor Relations Tel: (809) 476-4044 / 4012 E-mail: investor.relations@tricom.net Web site: http://www.tricom.net =========== M E X I C O =========== AHMSA: Turns to Russians for Funds ---------------------------------- Iron and steel manufacturer Altos Hornos de Mexico (AHMSA) intends to get fresh capital from Russian investors in its bid to regain financial health. Comtex Business reports that the strategic alliance will allow current Company investors to retain the majority of stocks. Monclava Mayor Jorge Williamson Bosque added that the deal will not constitute a sale of assets. AHMSA, in debt default since April 1999, has debts exceeding US$1.8 billion. CYDSA: To Propose $169M Capital Increase ---------------------------------------- Troubled textile firm Cydsa hopes to firm up its finances with a planned capital increase worth US$169 million coupled with US$29.5 million in new debt, says Reuters. Cydsa has been struggling to regain financial health since December 2002 when it defaulted on interest payments for a $159 million debt. In June this year, the company inked a restructuring plan with creditors exchanging this debt for new stocks and bonds. This deal effectively gives the creditors a majority stake on the company. The company plans to carry the restructuring proposal through three peso denominated issues totaling US$169 million: 1. a US$27.4 series A shares for a total 270 million pesos; 2. a 136.8 million C series shares - no voting rights shares - for 1.5 billion pesos. 3. a 360.4 million A series shares for 300 million pesos to back the floating rate bonds. Cydsa will present the restructuring deal at the shareholders' meeting on September 15. new debt to restructure its ailing balance sheet. PEMEX: Issues Another $44M in Short-Term Bonds ---------------------------------------------- Mexico's state oil company Pemex will sell MXN500 million (US$43.9mn) worth of short-term bonds on the Mexico City stock exchange BMV on September 2, Business News Americas reports According to BMV registration documents, the 28-day, fixed interest bonds are priced at MXN100 pesos each. JP Morgan will act as fiduciary and Scotia Inverlat and Santander Serfin will act as placing agents. This is the third 28-day local bond issue for Pemex in the last two weeks. It sold MXN500 million short-term bonds on August 18 and another set of short-term bonds of the same size in August 26. In both cases the issues were heavily oversubscribed. ===================== P U E R T O R I C O ===================== CENTENNIAL COMMUNICATIONS: Lowers Net Loss to $22.8M for FY 2004 ---------------------------------------------------------------- Centennial Communications Corp. (Nasdaq:CYCL) announced Wednesday results for the quarter and fiscal year ended May 31, 2004. Consolidated revenues for fiscal year 2004 increased 11% from the prior year to $828.8 million. Net loss was $22.8 million for fiscal year 2004, as compared to a $111.6 million loss in the prior year. "Adjusted Operating Income" ("AOI") was $330.5 million, an 11% increase from the prior year. AOI is net income (loss) before minority interest in income of subsidiaries, income tax (expense) benefit, other income (expense), loss on extinguishment of debt, interest expense-net, income from equity investments, loss (gain) on disposition of assets, loss on impairment of assets, depreciation and amortization, and other non-cash charges. Please refer to Exhibit A -- "Non-GAAP Financial Measures." During the fiscal fourth quarter ended May 31, 2004, the Company reported consolidated revenues of $214.8 million. Net income for the fourth quarter was $3.2 million, a decrease of $55.3 million from the same quarter last year. The Company reported AOI of $88.8 million for the fourth quarter, an increase of 8% from the same quarter last year. Other significant events reported during and after fiscal 2004 include: - The Company launched its global system for mobile communications ("GSM") network in every cell site in its Midwest cluster ahead of schedule and within budget. The Company began receiving GSM roaming traffic in late November and has gradually introduced GSM service features and phones in all of its Midwest markets. Over 80% of the Company's gross subscriber additions in its Midwest cluster are now subscribing to GSM services. The Company expects to launch GSM service in its Southeast cluster by the end of calendar year 2004. - The Company's consolidated free cash flow (AOI minus capital expenditures) reached a record $198 million for fiscal 2004 up from $164 million in fiscal 2003, with contributions from Caribbean Wireless and Caribbean Broadband now approaching that of U.S. Wireless. Caribbean Wireless and Caribbean Broadband AOI for Fiscal 2004 exceeded that of U.S. Wireless for the first time in the Company's history. - The Company consummated a series of refinancing transactions aggregating $1.6 billion during fiscal 2004 that significantly improved the Company's balance sheet. The new financings extended the weighted average maturities of the Company's long- term debt and eliminated approximately $600 million in scheduled amortization payments over the next four years. In addition, these transactions resulted in greater financial and operating flexibility through a reduced number of financial covenants and simplified capital structure. The Company also significantly improved the liquidity of its common stock through a 10- million-share equity offering in November 2003. - In August 2004, the Company announced that it had exercised its options to purchase 10 MHz of PCS spectrum from AT&T Wireless covering an aggregate of approximately 4.1 million population equivalents (POPs) contiguous to the Company's existing footprint in Michigan and Indiana. The aggregate exercise price of the spectrum is $19.5 million. At the same time, the Company also announced that it entered into a definitive agreement to sell to Verizon Wireless for $24 million in cash the Indianapolis and Lafayette, Indiana licenses that it expects to acquire from AT&T Wireless. If consummated, the net result of these transactions will be that the Company will obtain licenses covering approximately 2.2 million incremental POPS, and receive $4.5 million of cash. Both transactions are subject to customary closing conditions, including regulatory approvals and are expected to close before calendar year-end 2004. - In May 2004, the Company announced its intention to seek strategic options for its Puerto Rico cable operations. The Company is currently in advanced negotiations regarding a potential sale of the cable operations. There can be no assurance that the Company will consummate any transaction with respect to its cable operations. "I am delighted by the strength of our operating results for the quarter and fiscal year ended May 31, 2004. The results demonstrate the power of the Centennial brand and the positive customer experience it has come to signify. Centennial's focus on providing an outstanding customer experience is clearly paying dividends and bodes well for our prospects in fiscal 2005 and beyond", said Michael J. Small, Chief Executive Officer. The Company's wireless subscribers at May 31, 2004 were 1,051,200, an increase of 12% over fiscal 2003. In the fourth quarter, Caribbean Wireless subscribers increased 21,600 as compared to the prior quarter, due to strong subscriber growth in both Puerto Rico and the Dominican Republic. In the fourth quarter, U.S. Wireless subscribers increased 2,900 from the prior quarter, aided by GSM and national rate plans. Postpaid churn for the quarter was 1.8% in U.S. Wireless and 2.4% in Caribbean Wireless. During fiscal year 2004, Caribbean Wireless subscribers increased by 97,600 as compared to 62,300 in fiscal 2003 and in U.S. Wireless by 16,500 as compared to no subscriber growth in fiscal 2003. Caribbean Broadband switched access lines reached 50,210 and dedicated access line equivalents were 213,920 at May 31, 2004, up 24% and 18%, respectively from May 31, 2003. Cable TV subscribers were 73,400 at May 31, 2004, down 4,800 from the prior year. For the year, total Caribbean revenues (consisting of the Caribbean Wireless and Caribbean Broadband segments) were $458.6 million and AOI was $181.0 million. AOI for the year was up 33% from the prior year. Caribbean Wireless revenues for the year reached $306.2 million, an increase of 17% from the prior year. Caribbean Wireless AOI for the year was $121.6 million, an increase of 26% from the prior year. Caribbean Broadband revenues for the year were $164.7 million and AOI reached $59.4 million, up 16% and 51% respectively, from the prior year. U.S. Wireless revenues were $370.2 million for the year ended May 31, 2004 and AOI was $149.5 million. Revenue increased 4% from the prior year due to a 13% increase in service revenue, partially offset by a 30% reduction in roaming revenue. Roaming revenue was $54.3 million in fiscal 2004, or 7% of consolidated revenue, as compared to $77.6 million or 10% of consolidated revenues in fiscal 2003. U.S. Wireless AOI decreased by 7% from the prior year due to the reduction in roaming revenue, partially offset by an increase in service revenue and improved margins on retail revenue. Service revenue per subscriber increased to $45 from $40 in the prior year, primarily due to the introduction of national rate plans. Consolidated capital expenditures for the year ended May 31, 2004 were $132.9 million or 16% of revenue. Net debt at May 31, 2004 was $1,655.8 million as compared to $1,691.6 million at May 31, 2003. The Company projects AOI growth for fiscal 2005 of 5-10% as compared to $330.5 million in fiscal 2004. The Company projects capital expenditures of approximately $160 million in fiscal 2005, which includes approximately $25 million associated with the build out of the Lansing and Grand Rapids, Michigan licenses we expect to acquire from AT&T Wireless. A reconciliation of projected AOI is not included as it is not possible to project certain components of such reconciliation at this time. In preparation for complying with the provisions of the Sarbanes-Oxley Act of 2002 relating to internal control over financial reporting that will be effective for the Company for its fiscal year ending May 31, 2005, and recent guidance surrounding such legislation, the Company has restated its financial statements as of May 31, 2003 and for the years ended May 31, 2003 and 2002. Such restatements primarily relate to adjustments that were identified in the ordinary course of prior audits of the Company's financial statements, but not recorded at the time due to their immateriality. All comparisons to the fiscal year ended May 31, 2003 made in this release give effect to this restatement. Revised financial statements for the first through third quarters of fiscal 2004 are included in the attached tables. Additional information regarding the restatement is contained in the Company's Form 10-K filed on August 31, 2004. In addition to the financial results determined in accordance with Generally Accepted Accounting Principles ("GAAP"), this press release contains non-GAAP financial measures such as AOI and free cash flow. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. Reconciliations from GAAP to these non-GAAP financial measures are provided in Exhibit A to this press release. Centennial is one of the largest independent wireless telecommunications service providers in the United States and the Caribbean with approximately 17.3 million Net Pops and approximately 1,051,200 wireless subscribers. Centennial's U.S. operations have approximately 6.1 million Net Pops in small cities and rural areas. Centennial's Caribbean integrated communications operation owns and operates wireless licenses for approximately 11.2 million Net Pops in Puerto Rico, the Dominican Republic and the U.S. Virgin Islands, and provides voice, data, video and Internet services on broadband networks in the region. Welsh, Carson Anderson & Stowe and an affiliate of the Blackstone Group are controlling shareholders of Centennial. To view financial statements: http://bankrupt.com/misc/Cent_A.htm CONTACT: Centennial Communications Corp. Mr. Eric S. Weinstein Phone: 732-556-2220 Web Site: www.centennialwireless.com ================================= T R I N I D A D & T O B A G O ================================= WASA: Wants Government To Write Off $500M Debt ---------------------------------------------- Trinidad and Tobago's Water and Sewerage Authority (WASA) has appealed to the government to consider writing off the almost US$500 million debt it has accumulated, a WASA spokesperson told Business News Americas reports. The spokesperson said a strategic plan is already in place for the 2004 to 2006 period that should solve WASA's financial problems. "WASA has in effect produced a strategic plan which we are certain can turn the authority around, turn around the financial viability of the organization and also improve service output," Business News Americas quoted the spokesperson as saying. Plan recommendations include the introduction of water metering, as well as an increase in rates to more accurately reflect water production costs. A Joint Select Committee of Parliament at the Red House recently obtained information that WASA piled up debts amounting to TT$3.2 billion (US$448 million) between 1994 and 2003. And that figure is climbing, according to information gathered. Committee Chairperson Senator Parvatee Anmolsingh-Mahabir revealed between 1998 and 2001, WASA borrowed over TT$1.1 billion to finance various projects, and that as of March 29 this year, WASA was owed TT$507 million by customers and wanted to write off TT$300 million of this as doubtful or bad debts. ============= U R U G U A Y ============= * URUGUAY: IMF Director Challenges Government to Sustain Growth --------------------------------------------------------------- Mr. Rodrigo de Rato, the Managing Director of the International Monetary Fund (IMF), made the following statement Wednesday at the conclusion of his visit to Uruguay: "This is my first visit to Uruguay as Managing Director of the IMF. My meetings with President Batlle's senior economic team and other political leaders have provided me with a welcome opportunity to obtain a closer understanding of economic and social developments and the key policy issues in Uruguay and the region. "I would like to commend President Batlle and his government for the sound management of the economy which has delivered impressive results over the past two years. Prudent fiscal and monetary policies have been maintained; last year's landmark debt exchange has improved the medium-term debt profile; and important steps have been taken to strengthen the banking system. As a result of these policies, and supported by the favorable external environment, the economy's recovery from its long recession has been stronger than expected; financial indicators have improved steadily; and confidence is increasing. Achieving the program's fiscal objectives will be critical to laying the basis for ensuring Uruguay's debt sustainability, and sustaining the reform momentum in the banking sector is crucial for restoring a sound financial system that can support investment and growth. "The challenge for Uruguay now is to build on these achievements and sustain the recovery of growth and employment. In this context, I have had very productive discussions with the presidential candidates on the broad framework and direction of economic policies in the coming years. I have come away from these discussions with a strong sense that there is a basic consensus in Uruguay on the need to continue with prudent macroeconomic policies and to move ahead with key structural reforms that would bolster the environment for private investment, which is crucial for Uruguay to compete successfully in the global market place. "Raising the long-term growth potential of the country will also require improving the efficiency of public investment. Toward this end, and in reflection of our concern that public investment has been low or declining in Latin America, the Fund has initiated pilot programs in several countries aimed at strengthening the performance of public investment. One of the lessons we have learned from our involvement in Latin America is that any public investment program must be seen within a sound debt sustainability framework or it will not contribute to growth and social development, and that this generally requires more flexible budget structures, well-designed projects, and appropriate financing. "As Uruguay heads toward its fifth general election since democracy was restored in the 1980s, I would like to commend the Uruguayan people for their long democratic tradition and strong civil society. These foundations have enabled Uruguay's citizenry and government to make the difficult choices needed to return the economy to a path of rapid growth. "The Fund looks forward to continuing the close dialogue with the next government that will take office early next year. The Fund has provided substantial financial support to Uruguay, and we stand ready to continue our joint efforts in support of sustained rapid growth and improved living standards for all Uruguayans." 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 *********** 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 * * *