/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/041022.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, October 22, 2004, Vol. 5, Issue 210 Headlines A R G E N T I N A ARGEN SERVI: Enters Bankruptcy on Court Orders BOHAPUI S.A.: Liquidates Assets to Pay Debts CABLEVISION S.A.: Awaits Approval of its APE LIBERO S.A.: Court Rules for Liquidation MARDULCE S.R.L.: Enters Bankruptcy on Court Orders MASTELLONE HERMANOS: Closes Debt Restructuring Accord METROGAS: Extends Solicitation of Consents to Restructure Debt MULTIFINAN S.A.: To Begin Liquidation on Court Orders O.I.P. S.A.: Will Liquidate Assets to Pay Debts PLAN MEDICO SAN MARTIN: Court Resets Concurso Dates TELECOM ARGENTINA: Reveals $40M Investment Investment for Arnet TRAFFIC PACK: Initiates Bankruptcy Proceedings B E R M U D A CM CONCEPT: Appoints Robin Mayor as Liquidator CM CONVOY: Members Move on Wind-Up LORAL SPACE: Unit Inks Satellite Deal with HPT ROYAL BLUE: Proceeds with Voluntary Wind-Up ROYAL SKY: Initiates Winding-Up Process SEA CONTAINERS: Declares Cash Dividends on Common Shares B R A Z I L CELG: Inks Power Purchase Agreement With CDSA COPEL: Analyzing $125M Debt Issue EMBRATEL: Moody's Changes Rating Outlook to Positive From Stable VASP: To Pay BRL11.7 Mln Debt With Infraero in Installments D O M I N I C A N R E P U B L I C AES CORP.: Affiliate Denies Violation of Electricity Law M E X I C O GRUPO DESC: Approves NYSE Delisting of ADSs HYLSAMEX: Stock Declines On Possible Easing of Steel Prices TV AZTECA: EBITDA Grows 20% in 3Q04 P E R U NUEVO CONTINENTE: Govt. Steps in to Ensure Ops Continuity U R U G U A Y * URUGUAY: IDB Grants $77M Loan for Infrastructure Improvements V E N E Z U E L A CITGO: Gets Required Consents to Amend Indenture SIDOR: Workers Accept Terms of New Collective Contract - - - - - - - - ================= A R G E N T I N A ================= ARGEN SERVI: Enters Bankruptcy on Court Orders ---------------------------------------------- Argen Servi S.R.L. will enter bankruptcy protection after court no. 11 of Buenos Aires' civil and commercial tribunal, with the assistance of clerk no. 21, 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. Ricardo Oscar Garcia as trustee. He will be verifying creditors' proofs of claims until the end of the verification phase on October 28. 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 December 10 followed by the general report, which is due on February 23 next year. CONTACT: Mr. Ricardo Oscar Garcia, Trustee Lavalle 1206 Buenos Aires BOHAPUI S.A.: Liquidates Assets to Pay Debts -------------------------------------------- Buenos Aires-based Bohapui S.A. will begin liquidating its assets following the pronouncement of the city's court no. 19 that the Company is bankrupt, reports Infobae. The bankruptcy ruling places the Company under the supervision of court-appointed trustee, Ms. Raquel Steinhaus. The trustee will verify creditors' proofs of claims until December 21. The validated claims will be presented in court as individual reports on March 2, 2005. The trustee will also submit a general report, containing a summary of the Company's financial status as well as relevant events pertaining to the bankruptcy, on April 13, 2005. The bankruptcy process will end with the disposal of Company assets in favor of its creditors. CONTACT: Bohapui S.A. Posadas 1564 Buenos Aires Ms. Raquel Steinhaus, Trustee Paraguay 577 Buenos Aires CABLEVISION S.A.: Awaits Approval of its APE -------------------------------------------- Cablevision is waiting the approval of its 'Acuerdo Preventivo Extrajudicial', APE. This is registered at the Juzgado Nacional de Primera Instancia en lo Comercial N§11', in charge of Dr. Miguel F. Bargallo, Secretar¡a N§22, in charge as well of the secretary, Dra. Paula Susana Marino, addresed at Callao N§635, Piso 5¦, Buenos Aires. Cablevision has invited the holders of the following titles admitted: - Obligaciones Negociables Serie N§5 at the 13,75 % with due in 2009; - Obligaciones Negociables Serie N§9 at the 12.50 % with due in 2003; - Obligaciones Negociables Serie N§10 at the 13.75 %, with due in 2007; - Obligaciones Negociables Serie N§11, at variable rate with due in 2002; The assembly will take place on November 17 at 11:00 a.m. (Buenos Aires time), on 'Low lands Club', located at Blanco Encalada N§1221 (C1428DCH), Buenos Aires. The results of the assembly will be formally presented in court 48 hours after the assembly date. LIBERO S.A.: Court Rules for Liquidation ---------------------------------------- Court no. 2 of Buenos Aires' civil and commercial tribunal ordered the liquidation of Libero 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. Mauricio Mudric, the court-appointed trustee. Mr. Mudric will verify creditors' proofs of claims until December 7. The verified claims will serve as basis for the individual reports to be submitted in court on March 4, 2005. The submission of the general report follows on April 15, 2005. The city's clerk no. 4 assists the court on this case that will end with the disposal of the Company's assets in favor of its creditors. CONTACT: Ms. Mauricio Mudric, Trustee Tucuman 893 Buenos Aires MARDULCE S.R.L.: Enters Bankruptcy on Court Orders -------------------------------------------------- Court no. 10 of Buenos Aires' civil and commercial tribunal declared Mardulce S.R.L. bankrupt after the Company defaulted on its debt payments. The order effectively places the Company's affairs as well as its assets under the control of court- appointed trustee, Mr. Carlos Montana. As trustee, Mr. Montana is tasked with verifying the authenticity of claims presented by the Company's creditors. The verification phase is ongoing until November 11. Following claims verification, the trustee will submit the individual reports based on the forwarded claims for final approval by the court on December 29. A general report will also be submitted on March 13. Infobae reports that clerk no. 19 assists the court on this case that will end with the disposal of the Company's assets in favor of its creditors. CONTACT: Mr. Carlos Montana, Trustee Ayacucho 457 Buenos Aires MASTELLONE HERMANOS: Closes Debt Restructuring Accord ----------------------------------------------------- Argentine dairy Company Mastellone Hermanos has closed its US$328.9 million debt-restructuring offer with the approval of 97.8% of creditors, the Company announced Tuesday. Given the high level of approval, Mastellone won't have to go ahead with its out-of-court debt settlement, or APE. According to the local bankruptcy law, if an APE gets two-third creditor's approval, the Company can submit the accord for court approval and make the terms mandatory to all creditors. Mastellone had said it wouldn't carry out the APE proceeding if obtained at least 98% approval by bondholders. The Company had improved the conditions of its offer in mid September and the final term expired on October 19. METROGAS: Extends Solicitation of Consents to Restructure Debt -------------------------------------------------------------- MetroGAS S.A. (the "Company") announced Wednesday that it is further extending its solicitation (the "APE Solicitation") from holders of its 9-7/8% Series A Notes due 2003 (the "Series A Notes"), its 7.375% Series B Notes due 2002 (the "Series B Notes") and its Floating Rate Series C Notes due 2004 (the "Series C Notes" and, together with the Series A Notes and the Series B Notes, the "Existing Notes") and its other unsecured financial indebtedness (the "Existing Bank Debt" and, together with the Existing Notes, the "Existing Debt"), subject to certain eligibility requirements, of powers of attorney authorizing the execution on behalf of the holders of its Existing Notes of, and support agreements committing holders of its Existing Bank Debt to, execute an acuerdo preventivo extrajudicial (the "APE") until 5:00 p.m., New York City time, on November 5, 2004 (the "New Expiration Date"), unless further extended by the Company. APE Solicitation As of 5:00 p.m., New York City time, on October 19, 2004, powers of attorney and support agreements had been received with respect to approximately US$90,234,336 principal amount of Existing Debt. The APE Solicitation will remain in all respects subject to all terms and conditions described in the Company's Solicitation Statement dated November 7, 2003. The Information Agent for the APE Solicitation outside Argentina is GBR Information Services and its telephone number is (212) 644-1772. The Information Agent within Argentina is JP Morgan Chase Bank Buenos Aires Branch and its telephone number is 5411- 4348-3475/4325-8046. CONTACT: MetroGAS S.A. Pablo Boselli, Financial Manager E-mail: pboselli@metrogas.com.ar Tel: 5411-4309-1511 Citigate Financial Intelligence Lucia Domville E-mail: Lucia.Domville@citigatefi.com Tel: 201-499-3548 MULTIFINAN S.A.: To Begin Liquidation on Court Orders ----------------------------------------------------- Multifinan S.A. of Buenos Aires will begin liquidating its assets after court no. 18 of the city's civil and commercial tribunal declared the Company bankrupt. Infobae reveals that the bankruptcy process will commence under the supervision of court- appointed trustee, Mr. Gustavo Daniel Micciullo. The trustee will review claims forwarded by the Company's creditors until November 19. After claims verification, the trustee will submit the individual reports for court approval on February 3, 2005. The general report will follow on March 17, 2005. Clerk no. 35 assists the court on this case. CONTACT: Mr. Gustavo Daniel Micciullo, Trustee Avda Cordoba 1417 Buenos Aires O.I.P. S.A.: Will Liquidate Assets to Pay Debts ----------------------------------------------- O.I.P. S.A. will begin liquidation proceedings following the pronouncement of the city's civil and commercial tribunal court no. 24 that the Company is bankrupt, Infobae reports. The bankruptcy ruling places the Company under the supervision of court-appointed trustee Juana Bilenca. The trustee will verify creditors' proofs of claims until November 29. Next, the validated claims will be presented in court as individual reports on February 16, 2005. The trustee will also submit a general report, containing a summary of the Company's financial status as well as relevant events pertaining to the bankruptcy, on March 30, 2005. The bankruptcy process will end with the disposal of Company assets in favor of its creditors. CONTACT: Ms. Juana Bilenca, Trustee Lavalle 1675 Buenos Aires PLAN MEDICO SAN MARTIN: Court Resets Concurso Dates --------------------------------------------------- Court no. 8 of Buenos Aires' civil and commercial tribunal reset key events in the Plan Medico San Martin de Porres S.A. " Concurso Mercantil Liquidatorio" proceedings to these dates: 1. Claims verifications deadline - December 1, 2004 2. Submission of Individual Reports - February 18, 2004 3. Submission of General Report - April 5, 2005 Creditors are required to present proof of their claims to trustee Pedro Mazzola for authentication before the deadline. Failure to submit the documents within the verification period will mean disqualification from the post-liquidation distributions that will be made. CONTACT: Mr. Pedro Mazzola, Trustee Cramer 1859 Buenos Aires TELECOM ARGENTINA: Reveals $40M Investment Investment for Arnet --------------------------------------------------------------- Telecom Argentina (NYSE: TEO), a subsidiary of Telecom Italia, will spend up to US$40 million next year to improve its Internet division Arnet, reports Business News Americas. Improvement includes upgrading its fiber optic network, installing new equipment, such as gateways and modems, and expanding international connectivity. "We have a very aggressive plan, considering that demand for broadband services grows 5% monthly while demand for fixed line telephones only grows 5% a year," said Telecom strategy and wholesale operations director Edmundo Poggio. In addition, Telecom plans to offer double speed in ADLS access to new clients from November 1 without changing current prices. Double speed will expand to current subscribers next February. Arnet's client base reached 156,700 subscribers for dial-up service and 59,400 for broadband at the end of June 2004. CONTACT: TELECOM ARGENTINA Pablo Caride Pedro Insussarry (54-11) 4968-3627/3743 TRAFFIC PACK: Initiates Bankruptcy Proceedings ---------------------------------------------- Court no. 24 of Buenos Aires' civil and commercial tribunal declared local Company Traffic Pack S.R.L. "Quiebra," reports Infobae. Mr. Hugo Edgardo Borgert, who has been appointed as trustee, will verify creditors' claims until November 15 and then prepare the individual reports based on the results of the verification process. The individual reports will then be submitted to court on February 2, 2005, followed by the general report on March 16, 2005. Clerk no. 47 assists the court on the case that will close with the liquidation of the Company's assets to repay creditors. CONTACT: Mr. Hugo Edgardo Borgert, Trustee Montevideo 665 Buenos Aires ============= B E R M U D A ============= CM CONCEPT: Appoints Robin Mayor as Liquidator ---------------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 and IN THE MATTER OF CM Concept Shipping Limited The Members of CM Concept Shipping Limited, acting by written consent without a meeting on October 13, 2004 passed the following resolutions: 1) That the Company be wound up voluntarily, pursuant to the provisions of the Companies Act 1981; and 2) That Robin J. Mayor be and is hereby appointed Liquidator for the purposes of such winding-up, such appointment to be effective forthwith. Mr. Mayor informs that: - Creditors of CM Concept Shipping Limited, which is being voluntarily wound up, are required, on or before November 3, 2004 to send their full Christian and Surnames, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their lawyers (if any) to Robin J Mayor at Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, HM DX, Bermuda, the Liquidator of the said Company, and if so required by notice in writing from the said Liquidator, and personally or by their lawyers, to come in and prove their debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. - A final general meeting of the Members of CM Concept Shipping Limited will be held at the offices of Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda on November 30, 2004 at 9:30 a.m., or as soon as possible thereafter, for the purposes of: 1) receiving an account laid before them showing the manner in which the winding-up of the Company has been conducted and its property disposed of and of hearing any explanation that may be given by the Liquidator; 2) by resolution determining the manner in which the books, accounts and documents of the Company and of the Liquidator shall be disposed of; and 3) by resolution dissolving the Company. CONTACT: Mr. Robin J. Mayor, Liquidator Clarendon House Church Street, Hamilton Bermuda CM CONVOY: Members Move on Wind-Up ---------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 and IN THE MATTER OF CM Convoy Shipping Limited The Members of CM Convoy Shipping Limited, acting by written consent without a meeting on 13 October, 2004 passed the following resolutions: 1) That the Company be wound up voluntarily, pursuant to the provisions of the Companies Act 1981; and 2) That Robin J. Mayor be and is hereby appointed Liquidator for the purposes of such winding-up, such appointment to be effective forthwith. The Liquidator notifies that: - Creditors of CM Convoy Shipping Limited, which is being voluntarily wound up, are required, on or before November 3, 2004 to send their full Christian and Surnames, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their lawyers (if any) to Robin J Mayor at Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, HM DX, Bermuda, the Liquidator of the said Company, and if so required by notice in writing from the said Liquidator, and personally or by their lawyers, to come in and prove their debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. - A final general meeting of the Members of CM Convoy Shipping Limited will be held at the offices of Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda on November 30, 2004 at 9:30 a.m., or as soon as possible thereafter, for the purposes of: 1) receiving an account laid before them showing the manner in which the winding-up of the Company has been conducted and its property disposed of and of hearing any explanation that may be given by the Liquidator; 2) by resolution determining the manner in which the books, accounts and documents of the Company and of the Liquidator shall be disposed of; and 3) by resolution dissolving the Company. CONTACT: Mr. Robin J. Mayor, Liquidator Clarendon House Church Street, Hamilton Bermuda LORAL SPACE: Unit Inks Satellite Deal with HPT ---------------------------------------------- Loral Skynet announced Wednesday that it has signed an agreement with Hawaii Pacific Teleport (HPT), a provider of teleport services between North America and Asia, to provide capacity on Loral's recently launched Telstar 18 satellite. "The broad reach and power of Telstar 18 makes it a premier satellite to offer our customers with feeds coming into or out of Asia," said Vince Waterson, vice president of business development, Hawaii Pacific Teleport. "In addition to our regular digital and analog turnaround services, HPT plans to use Telstar 18 for its public switched videophone network (PSVN) to provide low-cost videoconferencing services throughout Asia for a new customer." "Skynet's growing relationship with Hawaii Pacific Teleport is emblematic of how important Asia is for our two companies," said Patrick K. Brant, president, Loral Skynet. With Telstar 18 and the already orbiting Telstar 10 at 76.5 East, customers around the world can now choose from two satellites that offer excellent coverage of Asia and links to the Americas and Europe through Skynet's global network." Telstar 18, located at 138 degrees East longitude, is a powerful Space Systems/Loral-built 1300 satellite whose extensive coverage stretches from Central Asia through the Indian sub- continent, China, Korea, Japan, South East Asia, Australia and Hawaii. In addition to hosting intra-regional applications, Telstar 18 offers highly reliable and low cost connectivity to and from the US mainland via the satellite's Hawaiian coverage and Skynet's fiber network that connects Hawaii with North America. HPT is located on the southwest shore of the island of Oahu, Hawaii, from where it connects global businesses through a network of satellites and fiber optic cables reaching from North America as far west as the Indian subcontinent. Unlike American mainland teleports, HPT can 'see' all the Asia Pacific orbital slots between 128 degrees East and 165 degrees East. This coverage enables HPT to serve customers located as far West as Pakistan and in all countries eastward to Hawaii plus customers in Australia, New Zealand and many Pacific Islands. A pioneer in the satellite industry, Loral Skynet continues to deliver the superior service quality and range of satellite solutions that have made it an industry leader for more than 40 years. Through the broad coverage of the Telstar satellite fleet, in combination with its hybrid VSAT/fiber global network infrastructure, companies around the world count on Skynet to meet their needs for broadcast and data network services, Internet access, IP and systems integration Headquartered in Bedminster, New Jersey, Loral Skynet is dedicated to providing secure, high-quality connectivity and communications. In addition to being the parent Company of Loral Skynet, Loral Space & Communications (OTC BB: LRLSQ) is a world-class leader in the design and manufacture of satellites and satellite systems for commercial and government applications through its Space Systems/Loral subsidiary. Telstar 18 carries a total of 54 active transponders, of which sixteen are high-power Ku-band transponders and thirty-eight are C-band transponders. In consideration for funding a portion of the satellite project's cost, APT Satellite Company Limited, Hong Kong, will initially use 68.5 percent of Telstar 18's transponder capacity for APSTAR-V services. The number of transponders used by APT will be reduced over time, ultimately to 54 percent of the satellite's capacity. CONTACT: Mr. John McCarthy Phone: (212) 338-5345 Web Sites: www.loralskynet.com www.loral.com ROYAL BLUE: Proceeds with Voluntary Wind-Up ------------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 and IN THE MATTER OF Royal Blue Shipping Limited The Members of Royal Blue Shipping Limited, acting by written consent without a meeting on October 13, 2004 passed the following resolutions: 1) THAT the Company be wound up voluntarily, pursuant to the provisions of the Companies Act 1981; 2) THAT Robin J. Mayor be and is hereby appointed Liquidator for the purposes of such winding-up, such appointment to be effective forthwith. Mr. Mayor notifies that - Creditors of Royal Blue Shipping Limited, which is being voluntarily wound up, are required, on or before November 3, 2004 to send their full Christian and Surnames, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their lawyers (if any) to Robin J Mayor at Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, HM DX, Bermuda, the Liquidator of the said Company, and if so required by notice in writing from the said Liquidator, and personally or by their lawyers, to come in and prove their debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. - A final general meeting of the Members of Royal Blue Shipping Limited will be held at the offices of Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda on November 30, 2004 at 9:30 a.m., or as soon as possible thereafter, for the purposes of: 1) receiving an account laid before them showing the manner in which the winding-up of the Company has been conducted and its property disposed of and of hearing any explanation that may be given by the Liquidator; 2) by resolution determining the manner in which the books, accounts and documents of the Company and of the Liquidator shall be disposed of; and 3) by resolution dissolving the Company. CONTACT: Mr. Robin J. Mayor Clarendon House Church Street, Hamilton Bermuda ROYAL SKY: Initiates Winding-Up Process --------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 and IN THE MATTER OF Royal Sky Shipping Limited The Members of Royal Sky Shipping Limited, acting by written consent without a meeting on October 13, 2004 passed the following resolutions: 1) THAT the Company be wound up voluntarily, pursuant to the provisions of the Companies Act 1981; 2) THAT Robin J Mayor be and is hereby appointed Liquidator for the purposes of such winding-up, such appointment to be effective forthwith. The Liquidator announces that: - Creditors of Royal Sky Shipping Limited, which is being voluntarily wound up, are required, on or before November 3, 2004 to send their full Christian and Surnames, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their lawyers (if any) to Robin J Mayor at Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, HM DX, Bermuda, the Liquidator of the said Company, and if so required by notice in writing from the said Liquidator, and personally or by their lawyers, to come in and prove their debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. - A final general meeting of the Members of Royal Sky Shipping Limited will be held at the offices of Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda on November 30, 2004 at 9:30 a.m., or as soon as possible thereafter, for the purposes of: 1) receiving an account laid before them showing the manner in which the winding-up of the Company has been conducted and its property disposed of and of hearing any explanation that may be given by the Liquidator; and 2) by resolution determining the manner in which the books, accounts and documents of the Company and of the Liquidator shall be disposed of; and 3) by resolution dissolving the Company. CONTACT: Mr. Robin J. Mayor, Liquidator Clarendon House Church Street, Hamilton Bermuda SEA CONTAINERS: Declares Cash Dividends on Common Shares -------------------------------------------------------- The Board of Directors of Sea Containers Ltd. declared Wednesday quarterly cash dividends on the Company's Class A and Class B common shares. The dividend will be $0.025 per share on the Class A common shares and $0.0225 per share on the Class B common shares. Class B common shares are convertible at any time into Class A common shares. The dividends will be payable November 22, 2004 to shareholders of record November 5, 2004. The Class A and B common shares of Sea Containers Ltd. are listed on the New York Stock Exchange under the symbols SCRA and SCRB, respectively. =========== B R A Z I L =========== CELG: Inks Power Purchase Agreement With CDSA ---------------------------------------------- After more than a year of negotiations, Brazilian state power Company Companhia Energetica de Goias (Celg) and power generator CDSA have reached an accord over power purchase contracts, reports Business News Americas. The conflict between Celg and CDSA broke out in early 2003 when Celg pulled out of a contract that compelled it to pay BRL85/MWh for CDSA's power. At that time, Celg was claiming the prices and inflation correction set in the contract were too high. With the new agreement, Celg will have to pay only BRL79.50/MWh for CDSA's power. The agreement was made possible after Aneel and a local court helped arbitrate the dispute. Aneel allowed Celg to pass through some of the costs to end consumers. On September 9, Aneel allowed the state Company to raise prices, a move that will allow Celg to pay the BRL135 million it owes CDSA for outstanding power bills over three years. The decision to lower the power prices will reduce Celg's power purchase costs by some BRL60 million a year, Celg said, allowing it to raise rates by a lower amount. CONTACT: Companhia Energetica De Goias (Celg) Rua 2, Qd A - 37 S/N Jardim Goias, 74805-180 Goiania - GO 74043-011 BRAZIL +55 62 243-1041 +55 62 243-1070 COPEL: Analyzing $125M Debt Issue --------------------------------- A spokesperson from Brazil's Copel confirmed local press reports that the power Company is planning to issue BRL360 million (US$125mn) in debt in the coming months, relates Business News Americas. The spokesperson wouldn't disclose the details of the planned operation until permission for the issue has been filed with the local securities exchange commission CVM. Also, the spokesperson didn't confirm local press reports that suggested the Company will either use the money to pay part of its BRL1.87-billion debt or finance some of the BRL400 million investments planned for 2005. Copel is controlled by the government of southern Paran state, where it produces and sells power. 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 EMBRATEL: Moody's Changes Rating Outlook to Positive From Stable ---------------------------------------------------------------- Moody's America Latina changed the outlook for Embratel's B1 Global Local Currency issuer rating and Baa1.br Brazil National Scale issuer rating to positive from stable. Moody's America Latina maintains a stable outlook for the B1 foreign currency rating on Embratel's US$275 million in guaranteed senior unsecured notes because the rating also incorporates currency convertibility risk implied by Brazil's ceiling for foreign currency bonds and notes of B1. The improved outlook reflects the rating agency's expectation that Embratel will be able to reduce its cost of debt and increase its financial flexibility as it refinances its short term obligations with senior unsecured debt, in addition to management's intention to use free cash flow for debt reduction. Embratel revealed plans this week that it will refinance up to US$600 million of debts by the end of the year. Moreover, the positive outlook also incorporates an improvement in the Company's top line growth, reduced bad debt expenses, an improving economic environment and strong growth in the Company's competitive local service business. To view financial statements: http://bankrupt.com/misc/Emb3Q.pdf CONTACT: Embratel Participacoes S.A. Rua Regenta Feijo 166 sala 1687-B Centro Rio de Janeiro, 20060-060 Brazil Phone: 5521-519-6474 Website: http://www.embratel.net.br VASP: To Pay BRL11.7 Mln Debt With Infraero in Installments ------------------------------------------------------------ Cash-strapped Brazilian airline Vasp has agreed to pay BRL11.7 million ($1=BRL2.87) of its debts with the federal airport authority Infraero, reports Dow Jones Newswires. According to an Infraero source, Vasp will pay the debt in three installments over the next three months. It will pay the first installment of BRL1.15 million on Oct. 30, the second installment of BRL3.5 million on Nov. 30 and the third BRL7 million on Dec. 22. The agreement covers payment of airport charges for three months between mid-July and mid-October. Vasp reportedly owes the agency BRL760 million relating to airport charges not paid since the 1990s. =================================== D O M I N I C A N R E P U B L I C =================================== AES CORP.: Affiliate Denies Violation of Electricity Law -------------------------------------------------------- AES EdeEste, an affiliate of U.S. power Company AES Corp., denied a Diario Libre report that said the utility has violated Art. 11 of Electricity Law 125-01, relates DR1 Daily News. The law in question specifies that no Company may supply more than 15% of the national demand for electric generation. A story published in Diario Libre early this week claimed that an AES affiliate was generating 50% of the supply, which violates the said law. But according to a spokesman for the distributor, AES EdeEste has not breached the legal limit set forth in the said law because the Company that generates power is a separate entity from AES EdeEste. AES's interpretation of Paragraph I, Article 11 of Law 125-01 is that the legislation prohibits the distributors from owning the generators' operations. By their understanding, this does not apply if a separate Company operates the generation business, regardless of its affiliation to the same parent corporation. AES EdeEste confirmed that it purchases power from Dominican Partners (the AES Los Minas affiliate), but stated that it also buys power from other generation companies as well. Diario Libre cited Radhames Segura, the CDEEE administrator, as saying that AES is selling power to itself for resale through its affiliate distributor. =========== M E X I C O =========== GRUPO DESC: Approves NYSE Delisting of ADSs ------------------------------------------- The shareholders' meeting of DESC, S.A. de C.V. held on October 19, 2004 approved the following resolutions: I. Presentation and approval, as applicable, of (1) (a) the proposal to voluntarily delist from the New York Stock Exchange the American Depositary Shares ("ADSs") issued by DESC, S.A. DE C.V., (b) cancel the registration of the ADSs and the Series "B" shares under the Securities Exchange Act of 1934, (c) terminate the Amended and Restated Deposit Agreement dated June 29, 1994, as amended, among the Company, Citibank, N.A., and the holders of American Depositary Receipts evidencing the ADSs, and (d) cancel the registration of the Series "B" shares of the Company in the special section of the National Securities Registry, as well as (2) resolutions to effectuate the foregoing. I.1 The shareholders approved the proposal to (a) delist from the New York Stock Exchange ("NYSE") the ADSs issued by the Company, (b) cancel the registration of the ADSs and the Series "B" shares under the Securities Exchange Act of 1934, (c) terminate the Amended and Restated Deposit Agreement dated June 29, 1994, as amended, among the Company, Citibank, N.A., and the holders of American Depositary Receipts evidencing the ADSs, and (d) cancel the registration of the Series "B" shares of the Company in the special section of the National Securities Registry. I.2 The shareholders approved the proposal to empower Messrs. Fernando Senderos Mestre, Juan Marco Gutierrez Wanless, Arturo D'Acosta Ruiz, Ramon F. Estrada Rivero, Marisol Vazquez Mellado Mollon y Fabiola G. Quezada Nieto, to jointly or individually, as applicable, perform all acts and execute all documents necessary for the implementation of the foregoing resolutions in both Mexico and the United States of America. Among the principal reasons why these proposals were submitted to the Shareholders Meeting's consideration were the following: 1. The fact that the number of Series B Shares represented by ADSs has remained very small (comprising only approximately 1.09% of the total outstanding Series B Shares and 0.53% of the shares representing all of the capital stock-Series "A" and Series "B"-as of September 30, 2004). 2. The limited trading volume on the NYSE of the ADSs (the average daily trading volume for the nine months ended September 30, 2004 was 4,155 ADSs). 3. The fact that Desc has no plans at this time to access the U.S. public capital markets as a source of capital. 4. The regulatory burden and expense required to maintain a registration in the U.S. and a listing on the NYSE. 5. The availability for Mexicans and foreigners of a market for Series "B" shares on the Bolsa Mexicana de Valores (the Mexican Securities Exchange). 6. The conclusion that the benefits to Desc and its stockholders in maintaining a U.S. trading market are outweighed by the costs. II. Appointment of delegates, as applicable, to formalize the resolutions adopted by the Shareholders Meeting. Messrs. Fernando Senderos Mestre, Ernesto Vega Velasco, Juan Marco Guti‚rrez Wanless, Arturo D'Acosta Ruiz, Ramon F. Estrada Rivero, Marisol V zquez Mellado Mollon and Fabiola G. Quezada Nieto were appointed Delegates of the Shareholders Meeting in order that they may jointly or individually perform the acts necessary to formalize and comply with the resolutions adopted by the Shareholders Meeting, and carry out the notarization of these minutes in relevant part, signing the relevant instrument, and processing, directly or through a third party, the registration thereof with the Public Registry of Commerce. III. Reading and approval of the minutes of the Shareholders' Meeting. The minutes were approved in full, which were prepared and read by the Secretary, and the Chairman, Secretary, and Alternate Statutory Examiner were authorized to sign them for the record. Additional Information for Stockholders On October 19, 2004, Desc gave notice to the Depositary to terminate the Deposit Agreement effective as of November 29, 2004. The Depositary is expected to send a notice to ADR holders in the United States in the next few days, which notifies the termination of the Deposit Agreement and explains the alternatives available to ADR holders who wish to retain their Desc deposited securities. As a result of the termination of the Deposit Agreement, it is expected that the NYSE will suspend the listing of the ADRs on November 30, 2004. However, the Series B shares of Desc will continue to be traded on the Mexican Stock Exchange. Following the delisting of the ADSs on the NYSE, Desc expects to terminate the registration of its Series B shares under the Securities Exchange Act of 1934, as amended. In accordance with the Deposit Agreement, holders of ADRs are entitled to surrender their ADRs and, upon payment of the surrender charges and applicable taxes or governmental charges, to receive the Series B shares of Desc represented by the ADSs evidenced by such ADRs. After November 29, 2004, the Depositary will discontinue the registration of transfers of ADRs, will suspend the distribution of dividends to holders, and will not give any further notices or perform any further acts under the Deposit Agreement, except that the Depositary will continue to collect dividends and other distributions pertaining to the Desc deposited securities, will sell property and rights as provided in the Deposit Agreement, and will continue to deliver the Desc deposited securities, together with any dividends or other distributions received with respect to the Desc deposited securities and the net proceeds of the sale of any rights or other property, in exchange for ADRs surrendered to the Depositary (after deducting, in each case, the fee of the Depositary for the surrender of an ADR, any expenses for the account of the holder of such ADR in accordance with the terms and conditions of the Deposit Agreement, and any applicable taxes or governmental charges). At any time after the expiration of six (6) months from the date of termination, the Depositary may sell the Desc deposited securities then held and may thereafter hold uninvested the net proceeds of any such sale, together with any cash then held by it, in an unsegregated escrow account, without liability for interest, for the pro rata benefit of the holders of ADRs which have not been surrendered prior to such time. After making such sale, the Depositary shall be discharged from all obligations under the Deposit Agreement, except to account for such net proceeds and other cash (after deducting, or charging, as the case may be, the fees of the Depositary for the surrender of an ADR, any expenses for the account of the holder of an ADR and any applicable taxes or governmental charges or assessments) and except for any indemnification obligations of the Depositary under the Deposit Agreement. HYLSAMEX: Stock Declines On Possible Easing of Steel Prices ----------------------------------------------------------- Mexican steel producer Hylsamex's B series stock (HYLSAMXB.MX) dropped 4.76% to MXN24.42 on Wednesday on concerns that the cycle of high prices may be nearing an end. "Prices may have reached their limit, but I doubt we will see [steel stocks] fall over the next few months - they should maintain their high levels," said Vector Casa de Bolsa analyst Carlos Hermosillo. Hylsamex is forecasting an Ebitda of US$232 million for the third quarter of 2004, five times that reported for last year's third quarter. Mexican conglomerate Alfa, which controls Hylsamex, is in the process of splitting its shares in the steel Company, which sold 2.89Mt of steel products last year. CONTACT: Othon Diaz Del Guante (52-81) 8865-1240 E-mail: odiaz@hylsamex.com.mx Ismael De La Garza (52-81) 8865-1224 E-mail: idelagarza@hylsamex.com.mx TV AZTECA: EBITDA Grows 20% in 3Q04 ----------------------------------- TV Azteca, S.A. de C.V. (NYSE: TZA; BMV: TVAZTCA), one of the two largest producers of Spanish language television programming in the world, announced Wednesday all-time high third quarter net sales of Ps.2,217 million (US$194 million) and a record EBITDA level for a third quarter of Ps.948 million (US$83 million), 23% and 20% increases, respectively, over the prior year period. EBITDA margin for the quarter was 43%. "Solid drivers of growth domestically and abroad, complemented this quarter by the 2004 Summer Olympics, lead us to sizeable top line expansion, while preserving robust profitability," said Mario San Roman, Chief Executive Officer of TV Azteca. "Results show strong momentum, as [Wednes]day's numbers mark six years of uninterrupted growth in sales and EBITDA for a third quarter." "On the strategic front we made further advances on our cash- usage plan, with the board's approval of US$210 million in cash distributions by 2005. We also announced the prepayment of our US$300 million note due 2007, with peso-denominated debt, which furthers our goals of reducing financial expense and FX risk," added Mr. San Rom n. As previously detailed, the Company's plan for uses of cash entails making cash distributions to shareholders above US$500 million and reducing TV Azteca's debt by approximately US$250 million within a six-year period that started in 2003. Third Quarter Results Net sales grew 23% to a record high of Ps.2,217 million (US$194 million), up from Ps.1,799 million (US$158 million) for the same quarter of 2003. Total costs and expenses rose 25% to Ps.1,269 million (US$111 million), from Ps.1,012 million (US$89 million) for the same period of last year. As a result, the Company reported EBITDA of Ps.948 million (US$83 million), 20% higher than Ps.787 million (US$69 million) in the third quarter of 2003. Net income was Ps.409 million (US$36 million), 17% higher than net income of Ps.351 million (US$31 million) for the same period of 2003. On a pro forma basis, excluding Ps.255 million (US$22 million) of revenue and Ps.142 million (US$12 million) of costs recorded during the quarter in connection with the transmission of the 2004 Summer Olympic Games, net sales grew 9% and EBITDA increased 6%. Net Sales "Content appealing to a wide array of target markets in Mexico was carefully positioned on our networks, and effectively satisfied rising advertising demand throughout the quarter," added Mr. San Roman. "The Summer Olympics, with our in-depth sports analysis, was a supplemental boost to the ongoing dynamism in domestic sales." Third quarter net revenue includes sales from Azteca America-the Company's wholly-owned broadcasting network focused on the U.S. Hispanic market-of Ps.94 million (US$8 million), compared with Ps.54 million (US$5 million) for the same period a year ago. Azteca America revenue is composed of Ps.64 million (US$6 million) in sales from the Los Angeles station KAZA-TV, and Ps.30 million (US$3 million) from network sales. TV Azteca also reported sales of programming to other countries of Ps.24 million (US$2 million), compared with Ps.41 million (US$4 million) in the same period a year ago. This quarter's programming exports were primarily driven by the Company's novelas La Heredera, Belinda and Las Juanas, which were sold mostly in Latin American markets. TV Azteca reported Ps.34 million (US$3 million) in advertising sales to Unefon, compared with Ps.31 million (US$3 million) in the third quarter of 2003. In accordance with the terms of the advertising contract between Unefon and TV Azteca, during the third quarter Unefon paid to TV Azteca in cash the Ps.32 million (US$3 million) of advertising purchases placed within the prior three month period. During the quarter, content and advertising sales to Todito.com were Ps.49 million (US$4 million), compared with Ps.59 million (US$5 million) in the same period of the prior year. Barter sales were Ps.101 million (US$9 million), compared with Ps.88 million (US$8 million) in the same period of last year. Inflation adjustment of advertising advances was Ps.91 million (US$8 million), compared with Ps.53 million (US$5 million) for the third quarter of 2003. Costs and Expenses The 25% increase in third quarter costs and expenses resulted from the combined effect of a 32% rise in programming, production and transmission costs to Ps.982 million (US$86 million), from Ps.742 million (US$65 million) in the prior year period, and a 6% growth in administration and selling expense to Ps.287 million (US$25 million), from Ps.270 million (US$24 million) in the same quarter a year ago. On a pro froma basis, excluding exhibition rights and production costs during the third quarter related to the 2004 Summer Olympics of Ps.142 million (US$12 million), programming, production and transmission costs grew 13%. "Congruent with dynamic seasonal demand for advertising in Mexico and in the US, we triggered strategic television programming initiatives during the quarter, which contributed to the increase in costs. As a result of the new shows, we have captured growing advertising opportunities in the two expanding markets," said Carlos Hesles, Chief Financial Officer of TV Azteca. Consistent with the growing production efforts, TV Azteca increased the overall number of hours of its internally produced programming during the three month period to 2,211-excluding the transmission of the 2004 Summer Olympics-from 2,039 in the same quarter of the previous year. The 6% growth in administration and selling expense primarily results from the Company's increased operations in Mexico and in the US Hispanic market. EBITDA and Net Income The 23% increase in third quarter net sales, combined with the 25% growth in costs and expenses, resulted in EBITDA of Ps.948 million (US$83 million), up 20% from Ps.787 million (US$69 million) a year ago. The EBITDA margin was 43%, compared with 44% in the same period of 2003. Below EBITDA, third quarter results were negatively impacted by an increase in other expense to Ps.205 million (US$18 million) from Ps.87 million (US$8 million) a year ago. Other expense for the quarter was primarily composed of charitable donations of Ps.50 million (US$4 million), legal expenses of Ps.47 million (US$4 million), loss from the sale of fixed assets of Ps.38 million (US$3 million), Ps.29 million (US$3 million) from the recognition of 50% of the net loss of Todito.com in TV Azteca's financial statements, and Ps.41 million (US$4 million) for the net effect of the recognition of the results from Monarcas, TV Azteca's soccer team, and other expenses. Net comprehensive financing cost during the quarter was Ps.223 million (US$20 million) compared with Ps.276 million (US$24 million) a year ago. The decline was primarily influenced by a Ps.5 million (US$0.4 million) exchange loss following a constant exchange rate during the three month period, compared with a Ps.128 million (US$11 million) exchange loss resulting from a 5% depreciation of the peso in the same period of 2003. The lower exchange loss was partly compensated by other financing expense of Ps.46 million (US$4 million) compared with Ps.17 million (US$1 million) in the prior year period, primarily reflecting fees and costs related to the opening of the recently announced secured credit line for the peso equivalent of US$300 million with Banco Inbursa. Additionally, loss on monetary position was Ps.27 million (US$2 million), compared with a gain of Ps.3 million (US$0.3 million) a year ago, coming from a net asset monetary position this quarter. Provision for income tax was Ps.15 million (US$1 million), compared with an Ps.18 million (US$2 million) tax benefit in the same period of the prior year, reflecting lower fiscal losses from subsidiaries this quarter. Net income was Ps.409 million (US$36 million), 17% higher than net income of Ps.351 million (US$31 million) for the same period of 2003. Uses of Cash The Company noted its sound financial results have translated into solid cash generation in the first nine months of 2004, in line with targets to create free cash-before debt payment and distributions to shareholders-of US$150 million in 2004. During the quarter, TV Azteca announced that its board of directors unanimously approved US$210 million cash distributions to shareholders by 2005, of which US$130 million are expected to be distributed during the fourth quarter of 2004 and US$80 million in 2005. The distributions are part of the Company's cash-usage plan, and are in addition to the approximately US$22 million of cash disbursements scheduled for November 11, 2004, which were approved by the Company's shareholders on April 15. Within the cash usage-plan the Company has made aggregate distributions of US$173 million, consisting of a US$125 million disbursement on June 30, 2003, US$15 million on December 5, 2003, and US$33 million on May 13, 2004. The accumulated distributions are equivalent to a 9% yield based on the closing price of the TV Azteca ADR on October 19, 2004. The distributions made to date, when added to the upcoming US$22 million and US$210 million disbursements, will represent an aggregate amount of US$405 million cash distributions, equivalent to a 22% yield on the October 19, 2004 ADR price. Under the cash plan, TV Azteca has also reduced its total debt by US$82 million, on a nominal US dollar basis, since June 2003. Additionally the Company announced the prepayment of its US$300 million 10 «% note due February 15, 2007, with resources coming from the Company's new credit facility denominated in pesos with Banco Inbursa, with a Structured Securities Certificate, or with a combination of both. On October 15, the trust that will be issuing the Certificates filed with the Mexican Securities Authorities (CNBV) an application for the issuance in the Mexican debt markets. Debt Outstanding As of September 30, 2004, the Company's total outstanding debt was Ps.5,967 million (US$523 million). TV Azteca's cash balance was Ps.1,320 million (US$116 million), resulting in net debt of Ps.4,647 million (US$407 million). The total debt to last twelve months (LTM) EBITDA ratio was 1.6 times, and net debt to EBITDA was 1.3 times. LTM EBITDA to net interest expense ratio was 6.3 times. The Company noted that excluding-for analytical purposes- Ps.1,366 million (US$120 million) debt due 2069, total debt was Ps.4,601 million (US$403 million), and total debt to EBITDA ratio was 1.2 times. TV Azteca is one of the two largest producers of Spanish language television programming in the world, operating two national television networks in Mexico, Azteca 13 and Azteca 7, through more than 300 owned and operated stations across the country. TV Azteca affiliates include Azteca America Network, a new broadcast television network focused on the rapidly growing US Hispanic market, and Todito.com, an Internet portal for North American Spanish speakers. To view financial statements: http://bankrupt.com/misc/Azteca.pdf CONTACTS: Investor Relations: Mr. Bruno Rangel Phone: 5255 1720 9167 e-mail: jrangelk@tvazteca.com.mx Mr. Omar Avila Phone: 5255 1720 0041 e-mail: oavila@tvazteca.com.mx Media Relations: Mr. Tristan Canales Phone: 5255 1720 5786 e-mail; tcanales@tvazteca.com.mx Mr. Daniel McCosh Phone: 5255 1720 0059 e-mail: dmccosh@tvazteca.com.mx ======= P E R U ======= NUEVO CONTINENTE: Govt. Steps in to Ensure Ops Continuity --------------------------------------------------------- The Peruvian government has ordered state fuel supplier Perupetro to provide troubled airline Nuevo Continente SA with more credit to buy fuel, reports Reuters. The order came after Nuevo Continente, which has cut three- quarters of its flights due to shortage of cash to buy fuel, approached the government to assist it in seeking more funds for its operations. The privately held carrier has a US$300,000 line of credit with Perupetro but has exceeded that line by US$150,000. It is now requesting an additional US$200,000 line of credit. According to Nuevo Continente spokesman Gonzalo Iwasaki, Petroperu has not extended the credit line yet. "PetroPeru is seeking guarantees," Iwasaki said, adding he did not know what kind of guarantees were being sought. ============= U R U G U A Y ============= * URUGUAY: IDB Grants $77M Loan for Infrastructure Improvements --------------------------------------------------------------- The Inter-American Development Bank announced Wednesday the approval of a $77 million loan to Uruguay for a road infrastructure program to improve transportation of freight and passengers along key corridors of the country's road system. The program will lower transportation costs and travel times, preserve Uruguay's road assets and increase road safety by improving roads and bridges along integration corridors with Argentina and Brazil and key national highways linking Uruguayan production centers with domestic and external markets. It will improve road management efficiency and allow savings in road maintenance, and it will enhance regional integration and Uruguay's competitiveness. The MTOP* will carry out the program through two units that form part of its organizational structure: the National Highways Department and the Office of the External Financing Advisor within the MTOP. The IDB loan is for a 20-year term, with a four-year grace period, at a variable interest rate. Local counterpart funds total $33 million. ================= V E N E Z U E L A ================= CITGO: Gets Required Consents to Amend Indenture ------------------------------------------------ CITGO Petroleum Corporation ("CITGO") announced Wednesday that, in connection with its pending offer to purchase (the "Offer") any and all of the $550 million aggregate principal amount of its outstanding 11-3/8 percent senior notes due 2011 and the related consent solicitation (the "Consent Solicitation"), it has received the required consents to amend the indenture governing the 11-3/8 percent notes as detailed in the Offer to Purchase and Consent Solicitation Statement dated Oct. 8, 2004. As a result of obtaining the required consents, CITGO executed and delivered a supplemental indenture setting forth the amendments. The supplemental indenture provides that the amendments will only become operative when the 11-3/8 percent notes tendered prior to 5 p.m. New York time on Tuesday, Oct. 19, 2004 (the "Consent Date") and not validly withdrawn, are purchased by CITGO. As of the Consent Date, CITGO had received tenders of notes and deliveries of related consents from holders of 98.15 percent of the 11-3/8 percent notes outstanding. Those holders who tendered their 11-3/8 percent notes prior to the Consent Date will be eligible to receive a total consideration of 122.584 percent of the principal amount of the 11-3/8 percent notes validly tendered, which includes a consent payment of 3 percent of the principal amount of the 11-3/8 percent notes validly tendered. Holders who tender their 11-3/8 percent notes after 5 p.m. New York time on the Consent Date but prior to midnight New York time on Nov. 5, 2004, unless extended or earlier terminated, will be eligible to receive 119.584 percent of the principal amount of the 11-3/8 percent notes validly tendered, which is equal to the total consideration less the consent payment of 3 percent. In each case, holders that validly tender their 11-3/8 percent notes will be eligible to receive accrued and unpaid interest up to, but not including, the relevant payment date. The Offer and Consent Solicitation is conditioned upon the satisfaction of certain conditions, including a financing condition. A more comprehensive description of the Offer and Consent Solicitation and its conditions can be found in the Offer to Purchase and Consent Solicitation Statement. Lehman Brothers Inc. is the Dealer Manager and Solicitation Agent, and D.F. King & Co., Inc. is the Information Agent, in connection with the Offer and Consent Solicitation. Requests for information should be directed to Lehman Brothers Inc. at 212- 528-7581 (call collect) or 800-438-3242 (toll free). Requests for documents should be directed to D.F. King & Co., Inc. at 212-269-5550 (call collect) or 800-290-6431 (toll free). This press release is not an offer to purchase, a solicitation of an offer to sell or a solicitation of consents with respect to any securities, including the 11-3/8 percent notes. The Offer and Consent Solicitation is being made solely pursuant to the Offer to Purchase and Consent Solicitation Statement. CITGO Petroleum Corporation is a leading refining and marketing Company based in Houston with approximately 4,000 employees and annual revenues of approximately $25 billion. CITGO's ultimate parent is Petr¢leos de Venezuela , S.A. ("PDVSA"), the national oil Company of the Bolivarian Republic of Venezuela and its largest supplier of crude oil. CITGO operates fuels refineries in Lake Charles, La.; Corpus Christi, Texas; and Lemont, Ill.; and asphalt refineries in Paulsboro, N.J.; and Savannah, Ga. CITGO has long-term crude oil supply agreements with PDVSA for a portion of the crude oil requirements at these facilities. CITGO is also a 41 percent participant in LYONDELL-CITGO Refining LP, a joint venture fuels refinery located in Houston . CITGO's interests in these refineries result in a total crude oil capacity of approximately 865,000 barrels per day. Serving nearly 14,000 branded, independently owned and operated retail locations, CITGO is also one of the five largest branded gasoline suppliers within the United States. SIDOR: Workers Accept Terms of New Collective Contract ------------------------------------------------------ After five months of negotiations, Venezuelan steelmaker Sidor and the Suttis workers' union have reached an agreement over a collective contract, Business News Americas reports, citing labor executive Alsacia Vahlis. In September, Sidor announced that it has reached an agreement with Suttis for the last round of collective bargaining in which all the clauses were discussed and agreed upon. But the workers rejected the contract, prompting the union to hold another vote on October 15, wherein 2,125 workers approved the contract. Sidor and Suttiss will now sign the collective contract valid for 28 months. The approved contract, which will benefit more than 4,000 workers, includes: guaranteed work for 26 months; a 13,000- bol¡var (US$6.70) raise for the duration of the 28-month contract; and a one-off bonus of 1 million bol¡vares to be paid on October 22. Sidor is in Puerto Ordaz city in the Guayana region and is 60%- owned by the Amazonia consortium. Amazonia is made up of Mexican companies Hylsamex (Alfa group) and Tamsa (Techint group), Argentine Company Siderar (Techint group), Brazil's Usiminas and Venezuela's Sivensa. The remaining 40% is owned by the state. The Company's plants are in Puerto Ordaz city in eastern Venezuela's Bol¡var state. *********** 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 * * *