/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/041217.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, December 17, 2004, Vol. 5, Issue 250 Headlines A R G E N T I N A AGUAS ARGENTINAS: Settles Labor Conflict With Union AMOBLAMIENTOS INTEGRALES: Court Concludes Reorganization BANCO HIPOTECARIO: Buys Back Dollar-Denominated '13, '10 Bonds BANCO SUQUIA: Central Bank Authorizes Transfer to Bansud CRESER CREDITO: Court Names Trustee for Bankruptcy EDEMSA: Fitch Retains 'D(arg)' Rating on $150M Worth of Bonds GAS ARGENTINO: Moody's Maintains `D' Ratings on $130M of Bonds GATIC: Auction Sale Attracted No Interest GRUPO IDEAR: Reports Submission Set HIDROELECTRICA PIEDRA: Bonds Get Default Ratings From Moody's LA ENRAMADA: Initiates Bankruptcy Proceedings MATYS S.R.L.: Gets Court OK for Reorganization METROGAS: Moody's Retains `D' Ratings on Corporate Bonds MULTICANAL: Court Tosses Debt Deal Appeal REPSOL YPF: Interim Dividend 25% Higher Than 2003 SANATORIO QUINTANA: Seeks Reorganization Approval From Court * ARGENTINA: Secures $500M IDB Loan for Social Services B E R M U D A AGRICULTURAL FINANCE: Appoints Robin Mayor as Liquidator AGROMIN HOLDINGS: Winds Up Operations AZIMUS LIMITED: Sets Final Meeting for January 14 FITX GROUP: Appoints Nicholas Hoskins as Liquidator LIAG AGRICULUTURAL: Members Vote To Wind Up Operations MONDAY LTD: Cyrus Pardiwala to Oversee Voluntary Liquidation B O L I V I A COEUR D'ALENE: Board Approves San Bartolome Mine Construction B R A Z I L BANCO SANTOS: Loses to Kasil in Federal Court VARIG: Officials' Announcements Put Future in Doubt * BRAZIL: IMF Completes Review of Stand-By Arrangement C H I L E EMBONOR: Obtains Credit Facility for Debt Refinancing C O L O M B I A BBVA COLOMBIA: Fitch Upgrades LC Debt, Individual Ratings VALORES BAVARIA: Completes Divestment of Avianca Stake M E X I C O CYDSA: Adjourns Noteholders Meeting GRUPO DESC: S&P Withdraws Desc Automotriz's Rating GRUPO TMM: Enters Into Amended Acquisition Agreement With KCS GRUPO TMM: S&P Puts Ratings On CreditWatch Positive GRUPO TMM: S&P Puts KCS Ratings On Watch Negative ISPAT INTERNATIONAL: Shareholders OK LNM Holdings Acquisition MINERA AUTLAN: Outlines Goals for Next Year TFM: S&P Puts Ratings On CreditWatch Positive TV AZTECA: To Prepay $300M Notes Due 2007 - - - - - - - - ================= A R G E N T I N A ================= AGUAS ARGENTINAS: Settles Labor Conflict With Union --------------------------------------------------- Water operator Aguas Argentinas averted a planned labor strike after it reached an agreement with the local sanitation workers under the union umbrella Sgbatos (as known by its Spanish acronym). About 80% of Aguas Argentinas' 3,600-workforce staged a partial work stoppage Tuesday demanding a salary hike. Sgbatos officials threatened to go on a full strike Wednesday to march toward the Company's headquarters in protest. But the Company prevented the planned strike after its General Director, Jean-Bernard Lemire, signed an agreement late Tuesday with Jose Luis Lingeri, secretary-general of the Sgbatos sanitation union. No details were released about the new salary accord. AMOBLAMIENTOS INTEGRALES: Court Concludes Reorganization -------------------------------------------------------- Buenos Aires-based Pinoplas S.A. concluded its reorganization process, according to data released by Infobae on its Web site. The closure came after Court No. 7 of the City's civil and commercial tribunal, with assistance from Clerk No. 13, homologated the debt plan signed between the Company and its creditors. BANCO HIPOTECARIO: Buys Back Dollar-Denominated '13, '10 Bonds -------------------------------------------------------------- Dow Jones Newswires reports that Argentine mortgagor Banco Hipotecario SA (BHIP.BA) has bought back US$6.52 million in dollar-denominated 2013 bonds and US$3.98 million in dollar- denominated 2010 bonds. The remaining face value amount of the 2013 notes in circulation is now US$443.36 million and the 2010 bonds is US$71 million, the bank said. Last month, Banco Hipotecario bought back US$12.97 million in the 2010 bonds. Banco Hipotecario is majority-controlled by local real estate developer IRSA-Inversiones y Representaciones SA (IRS). The Argentine government controls another 44% stake. CONTACTS: Marcelo Icikson Nicolas Vocos Capital Markets Tel. (54-11) 4347-5798 Fax (54-11) 4347-5874 E-mail: micikson@hipotecario.com.ar nmvocos@hipotecario.com.ar Gabriel G. Saidon, Chief Financial Officer Tel. (54-11) 4347-5759/5212 Fax (54-11) 4347-5874/5113 E-mail: gsaidon@hipotecario.com.ar BANCO SUQUIA: Central Bank Authorizes Transfer to Bansud -------------------------------------------------------- Argentina's Banco Macro Bansud S.A. (BSUD.BA) has received authorization from the central bank to take over local bank Banco Suquia. State-owned Banco de la Nacion took control of Suquia and two other institutions after French parent Credit Agricole left Argentina in early 2002. In late September, Nacion signed an agreement with Bansud for the sale of Suquia. Bansud was pre-awarded the tender for Suquia in late April, beating out three other competitors with its bid of ARS288 million. The two other Credit Agricole banks, Banco Bisel and Banco de Entre Rios, are yet to find new owners. CRESER CREDITO: Court Names Trustee for Bankruptcy -------------------------------------------------- Buenos Aires accountant Cecilia Beatriz Montelvetti was assigned trustee for the bankruptcy of local Company Creser Credito y Servicio S.A. relates Infobae. Ms. Montelvetti will verify creditors' claims until February 21 next year, the source adds. After that, she will prepare the individual reports, which are to be submitted in Court on April 6, 2005. The submission of the general report should follow on May 18, 2005. The city's civil and commercial Court No. 24 holds jurisdiction over the Company's case. Clerk No. 43 assists the Court with the proceedings. CONTACT: Creser Credito y Servicio S.A. Saladillo 1032 Buenos Aires Ms. Cecilia Beatriz Montelvetti, Trustee General Urquiza 2134 Buenos Aires EDEMSA: Fitch Retains 'D(arg)' Rating on $150M Worth of Bonds ------------------------------------------------------------- Fitch Argentina Calificadora de Riesgo S.A. maintains the 'D(arg)' rating on bonds issued by Empresa Distribuidora de Electricidad de Mendoza S.A. 'D(arg)'. The rating was based on the Company's finances as of September 30, 2004. The affected bonds were described as "Programa de emision de Obligaciones Negociables simples". Argentina's securities regulator, the Comision Nacional de Valores relates that the bonds, worth a total of US$150M, will mature on April 13, 2005. Fitch said that the given rating is assigned to bonds that are currently in default. GAS ARGENTINO: Moody's Maintains `D' Ratings on $130M of Bonds -------------------------------------------------------------- Moody's Latin America Calificadora de Riesgo S.A. maintained the `D' rating given to US$130 million worth of corporate bonds issued by Argentine Company Gas Argentino S.A., says the CNV. The rating, which is assigned to financial obligations that are in default, applies to bonds described as "Obligaciones negociables simples por US$130.000.000". These bonds, classified under "Simple Issue", matured on June 07, 2000. The Company's financial status as of the end of September 30, 2004 determined the rating action. GATIC: Auction Sale Attracted No Interest ----------------------------------------- Two tender processes for the sale of plants of Argentine troubled textile Company Gatic had no bidders. However, Judge Francisco Carrega, which oversees the Company's bankruptcy proceedings, received an offer to buy two of the plants from Indular, an investment group headed by Guillermo Gotelli. Court sources stated that the businessman, who has been showing interest in Gatic's plants, offered to pay ARS4.5 million for the assets. Then Carrega launched a public auction in order to improve Gotelli's bid. In the meantime, some other assets have been already sold and the proceeds from this deal will be used to pay part of Gatic's ARS500 million debt. GRUPO IDEAR: Reports Submission Set ----------------------------------- Mr. Julio Ramon Coy, the trustee assigned to supervise the liquidation of Grupo Idear S.R.L., will submit the validated individual claims for Court approval on April 27, 2005, says Infobae. These reports explain the basis for the accepted and rejected claims. The trustee will also submit a general report on June 9, 2005. Infobae reports that Court No. 20 of Buenos Aires' civil and commercial tribunal has jurisdiction over this bankruptcy case. The city's Clerk No. 40 assists the Court with the proceedings. CONTACT: Mr. Julio Ramon Coy, Trustee Piedras 181 Buenos Aires HIDROELECTRICA PIEDRA: Bonds Get Default Ratings From Moody's ------------------------------------------------------------- Moody's Latin America Calificadora de Riesgo S.A. assigned a 'D'rating to various bonds issued by Hidroelectrica Piedra del Aguila S.A. Moody's assigns `D' ratings to bonds that are in payment default and have a poor prospect of repaying all obligations. The affected bonds are: - US$97.3 million worth of bonds described as "Clase I dentro del Programa de U$S 300 millones" maturing on July 31, 2009. - US$97.3 million worth of "Clase II dentro del Programa de U$S 300 millones" maturing on June 30, 2009. - US$62.5 million worth of "Clase III dentro del Programa de U$S 300 millones" maturing on December 31, 2023. Comision Nacional de Valores (CNV), Argentina's securities egulator, reports that the action was based on the Company's financial status as of September 30, 2004. LA ENRAMADA: Initiates Bankruptcy Proceedings --------------------------------------------- Court No. 14 of La Plata's civil and commercial tribunal declared La Enramada S.H. "Quiebra," reports Infobae. Mr. Ricardo Alberto Bouche, who has been appointed as trustee, will verify creditors' claims until December 30 and then prepare the individual reports based on the results of the verification process. The individual reports will be submitted in Court on March 14, 2005 followed by the general report on April 27, 2005. CONTACT: Mr. Ricardo Alberto Bouche, Trustee Calle 50 Nro. 408 La Plata MATYS S.R.L.: Gets Court OK for Reorganization ---------------------------------------------- Matys S.R.L. begins reorganization proceedings following approval of its "concurso preventivo" petition by Court No. 2 of Buenos Aires' civil and commercial tribunal. The opening will allow the Company to negotiate a settlement with its creditors in order to avoid a straight liquidation. Mr. Mario Norberto Aragon will oversee the reorganization as Court-appointed trustee. He will verify creditors' claims until February 14, 2005. The validated claims will be presented in Court as individual reports on April 18, 2004. The trustee is also required by the Court to submit a general report essentially auditing the Company's accounting and business records as well as summarizing important events pertaining to the reorganization. This report will be presented in Court on May 20, 2005. The Informative Assembly, the final stage of a reorganization where the settlement proposal is presented to the Company's creditors for approval, is scheduled on November 11, 2005. CONTACT: Mr. Mario Norberto Aragon, Trustee Adolfo Alsina 1535 Buenos Aires METROGAS: Moody's Retains `D' Ratings on Corporate Bonds -------------------------------------------------------- Moody's Latin America Calificadora de Reisgo S.A. maintains a 'D' rating on corporate bonds issued by Metrogas S.A., according to data revealed by the CNV. The action, which was based on Metrogas' financial health as of September 30, 2004, applies to these bonds: - US$600 million worth of "obligaciones negociables simples", classified under "program." The maturity of the bonds was not disclosed; - US$100 million worth of "Serie A por U$S 100.000.000 dentro del Programa Global de U$S 600 millones." These bonds, classified under "series and/or class", matured on April 1, 2003; - EUR110 million worth of "Serie B por euros 110 millones." These bonds classified under "Series and/or Class," matured on September 27, 2002; - US$130 million worth of "Serie C por U$S 130.000.000 dentro del Programa Global de U$S 600 millones." These bonds, which are classified under "Series and/or Class," will mature on May 7, 2004. CONTACT: Metrogas S.A. Gregorio Araoz de Lamadrid 1360 Buenos Aires, CPA C 1267 Argentina Phone: +54 11 4309 1010 +54 11 4309 1025 MULTICANAL: Court Tosses Debt Deal Appeal ----------------------------------------- Argentina's Multicanal said Wednesday that an appeals Court has rejected a final appeal to its approval of the cable Company's US$509 million debt restructuring offer in October, reports Dow Jones Newswires. The ruling confirms Multicanal's debt exchange in local Courts. Multicanal is still tussling with creditors in U.S. Courts. While the New York bankruptcy judge overseeing the cable Company's case granted broad recognition to its out-of-Court restructuring plan (APE) in late August, several issues are still unresolved - including the Company's compliance with the judge's order to remedy discrimination of U.S. retail bondholders. The main holdout creditor involved in the Court battle, an entity linked to New Jersey investment fund W.R. Huff Asset Management, could appeal to federal district Court even if the bankruptcy judge rules against the creditor. REPSOL YPF: Interim Dividend 25% Higher Than 2003 ------------------------------------------------- Repsol YPF's Board of Directors approved in its meeting Wednesday to pay a pretax interim dividend of EUR0.25 per share on 2004 earnings. This is 25% higher than the interim dividend distributed for 2003. At the Board of Directors Meeting the Repsol YPF Chairman and CEO, Mr. Antonio Brufau, expressed his intention to propose at the next Annual General Shareholders' Meeting that a total pretax dividend of EUR0.50 per share be paid out against 2004, a 25% rise year-on-year. The interim dividend will be paid January 11, 2005. SANATORIO QUINTANA: Seeks Reorganization Approval From Court ------------------------------------------------------------ Court No. 20 of Buenos Aires' civil and commercial tribunal is currently reviewing the merits of the reorganization petition filed by Sanatorio Quintana S.A., reports Infobae. The reorganization petition, if granted by the Court, will allow the Company to negotiate a settlement with its creditors in order to avoid a straight liquidation. The city's Clerk No. 40 assists the Court on this case. CONTACT: Sanatorio Quintana S.A. Avda Roque Saenz Pena 1119 Buenos Aires * ARGENTINA: Secures $500M IDB Loan for Social Services ------------------------------------------------------- The Inter-American Development Bank announced Wednesday the approval of a $500 million loan to Argentina to improve and streamline social assistance under the social sector program "Argentina Avanza." IDB financing will support Argentina's transition from emergency programs to a more permanent social inclusion policy, grounded in universal access to health and education, improved employment training and placement, and streamlined income support. After dealing with the severe political, economic and social crisis of 2001-2002, when the IDB helped the country overcome the difficult situation by providing immediate support for social programs in priority areas to help the most vulnerable population, the government is now embarking upon a larger-scale effort of economic growth with social equity. The new loan is part of a broad 2004-2008 Strategy the Bank agreed upon with Argentine authorities, based on a scenario of gradual economic growth and fiscal sustainability. The IDB supports ongoing health, education and neighborhood improvement projects and cash transfer programs for poor households designed to help Argentina assist the population living under the poverty line. The new program aims at building a more up-to-date social safety net, strengthening employability and job placement programs for the unemployed and implementing health and education initiatives targeted at the most vulnerable population groups. The Ministry of Economy will be in charge of the "Argentina Avanza" Program. The loan is for a 20-year term, with a five-year grace period at a variable interest rate. It will be disbursed in two tranches. An initial tranche of $150 million will be disbursed before the end of 2004. A second tranche of $350 million will be released in the second quarter of 2006. ============= B E R M U D A ============= AGRICULTURAL FINANCE: Appoints Robin Mayor as Liquidator -------------------------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 and IN THE MATTER OF Agricultural Finance Company (Bermuda) Limited The Members of Agricultural Finance Company (Bermuda) Limited, acting by written consent without a meeting on December 8, 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 informs that: - Creditors of Agricultural Finance Company (Bermuda) Limited, which is being voluntarily wound up, are required, on or before December 29, 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 Agricultural Finance Company (Bermuda) Limited will be held at the offices of Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda on January 19, 2005 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 AGROMIN HOLDINGS: Winds Up Operations ------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 and IN THE MATTER OF: AGROMIN HOLDINGS LIMITED The Members of Agromin Holdings Limited, acting by written consent without a meeting on December 8, 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 informs that: - Creditors of Agromin Holdings Limited, which is being voluntarily wound up, are required, on or before December 29, 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 Mr. Robin J Mayor, the undersigned, 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 Agromin Holdings Limited will be held at the offices of Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda on January 19, 2005 at 9.30am, 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 AZIMUS LIMITED: Sets Final Meeting for January 14 ------------------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 And IN THE MATTER OF Azimus Limited The Members of Azimus Limited duly convened and held a special general meeting at the Offices of the Company, Hamilton, Bermuda on December 14 2004, and passed the following resolutions: (a) THAT the Company be wound up voluntarily pursuant to the provisions of The Companies Act, 1981; and (b) THAT Nicholas Hoskins be appointed Liquidator for the purposes of such winding-up, such appointment to be effective forthwith. The liquidator informs that: - Creditors of Azimus Limited, which is being voluntarily wound up, are required, on or before January 14, 2005 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 attorneys (if any) to the Liquidator of the said Company at Wakefield Quin, Chancery Hall, 52 Reid Street, Hamilton, Bermuda and if so required by notice in writing from the said Liquidator, and personally or by their attorneys, 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 Azimus Limited will be held at the offices of Wakefield Quin, Chancery Hall, 52 Reid Street, Hamilton, Bermuda on January 21, 2005 at 11:30 a.m., or soon as possible thereafter, for the purposes of: 1) having an account laid before them showing the manner in which the winding-up has been conducted and how the property of the Company has been disposed of and of hearing any explanation that may be given by the Liquidator; and 2) determining by Resolution the manner in which the books, accounts and documents of the Company and of the Liquidator thereof, shall be disposed of; and 3) by resolution dissolving the Company. CONTACT: Nicholas Hoskins, Liquidator Chancery Hall 52 Reid Street Hamilton, Bermuda FITX GROUP: Appoints Nicholas Hoskins as Liquidator --------------------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 and IN THE MATTER OF Fitx Group Limited The following resolutions of Fitx Group Limited, were adopted by the Members of the Company on December 10, 2004: (a) THAT the Company be wound up voluntarily pursuant to the provisions of The Companies Act, 1981; and (b) THAT Nicholas Hoskins be appointed Liquidator for the purposes of such winding-up, such appointment to be effective forthwith. The liquidator informs that: - Creditors of the above named Company, which is being voluntarily wound up, are required, on or before January 14, 2005 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 attorneys (if any) to Liquidator of the said Company at Wakefield Quin, Chancery Hall, 52 Reid Street, Hamilton, Bermuda and if so required by notice in writing from the said Liquidator, and personally or by their attorneys, 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 the above named Company will be held at the offices of Wakefield Quin, Chancery Hall, 52 Reid Street, Hamilton, Bermuda on January 21, 2005 at 10:30 a.m., or soon as possible thereafter, for the purposes of: 1) having an account laid before them showing the manner in which the winding-up has been conducted and how the property of the Company has been disposed of and of hearing any explanation that may be given by the Liquidator; and 2) determining by resolution the manner in which the books, accounts and documents of the Company and of the Liquidator thereof, shall be disposed of; and 3) by Resolution dissolving the Company. CONTACT: Mr. Nicholas Hoskins, Liquidator Chancery Hall 52 Reid Street Hamilton, Bermuda LIAG AGRICULUTURAL: Members Vote To Wind Up Operations ------------------------------------------------------ IN THE MATTER OF THE COMPANIES ACT 1981 and IN THE MATTER OF Liag Agricultural Investment (Bermuda) Limited The Members of Liag Agricultural Investment (Bermuda) Limited, acting by written consent without a meeting on December 8, 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 informs that: - Creditors of Liag Agricultural Investment (Bermuda) Limited, which is being voluntarily wound up, are required, on or before December 29, 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 Liag Agricultural Investment (Bermuda) Limited will be held at the offices of Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda on January 19, 2005 at 9.30am, 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 MONDAY LTD: Cyrus Pardiwala to Oversee Voluntary Liquidation ------------------------------------------------------------ IN THE MATTER OF THE COMPANIES ACT 1981 and IN THE MATTER OF Monday Ltd. The Members of Monday Ltd., acting by written consent without a meeting on December 9, 2004 passed the following resolutions: (1) THAT the Company be wound up voluntarily, pursuant to the provisions of the Companies Act 1981; (2) THAT Cyrus N. Pardiwala be and is hereby appointed Liquidator for the purposes of such winding-up, such appointment to be effective forthwith. The Liquidator informs that: - Creditors of Monday Ltd., which is being voluntarily wound up, are required, on or before December 29, 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 Cyrus N. Pardiwala 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 Monday Ltd. will be held at the offices of Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda on January 20, 2005 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. Cyrus N. Pardiwala, Liquidator Clarendon House Church Street Hamilton, Bermuda ============= B O L I V I A ============= COEUR D'ALENE: Board Approves San Bartolome Mine Construction ------------------------------------------------------------- Coeur d'Alene Mines Corporation (NYSE: CDE), the world's largest primary silver producer, announced Wednesday the Company's Board of Directors has approved the final decision to proceed with construction of its San Bartolome silver project in Bolivia. San Bartolome is expected to increase Company-wide silver production over 40% from current levels beginning in 2006 and will further solidify the Company's position as the world's largest primary silver producer. "The construction of San Bartolome further solidifies Coeur's position as the world's leading primary silver producer," said Dennis E. Wheeler, Chairman and Chief Executive Officer. "We expect to produce approximately eight million ounces of silver annually during the first five years of production at an extremely competitive cash operating cost of $3.50 per ounce, which will generate significant cash flow for the Company. The mine has an initial estimated mine life of 15 years. In addition, it's important to note that this is the largest new primary silver mine built in the Americas in decades, the first modern silver project in Bolivia and a major boon to the country's local and national economies." Construction of the open pit milling operation and processing facility is currently expected to cost approximately $135 million. Total reserves of 123 million ounces of silver are contained in surface gravel deposits, or pallacos, which lend themselves to simple, low-tech surface-mining techniques. These reserves, which measure 35.3 million tons at average grades of 3.48 ounces of silver per ton, are contained in three major areas. Additional mineral resources also hold potential for future expansion. San Bartolome is located near established industrial infrastructure in the historically silver-rich region of Potosi where more than two billion ounces of silver have been mined. The building of the new mine represents the first modern, large- scale primary silver mine built in Bolivia, generating an expected 500 local jobs during construction, and approximately 370 full-time jobs during operations. The project will also establish a foundation, called Fundespo, to assist in the development of new local industries, such as silversmithing and tourism. Coeur d'Alene Mines Corporation is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The Company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile and Bolivia. CONTACT: Mr. Tony Ebersole Director of Investor Relations Coeur d'Alene Mines Corporation Phone: 800-523-1535. Web Site: http://www.coeur.com =========== B R A Z I L =========== BANCO SANTOS: Loses to Kasil in Federal Court --------------------------------------------- Brazilian intervened bank Banco Santos lost in a BRL27-million (US$9.8 million) lawsuit filed by local Company Kasil Participacoes in a federal Court, reports Business News Americas. Kasil filed the lawsuit to recover money involved in foreign exchange contracts that it had signed with Banco Santos, the 21st largest in Brazil with BRL6.3 billion of assets. Last month, Brazil's central bank took over Banco Santos after the financial institution and its brokerage unit ran out of cash to cover its bad loans. At the time of the intervention, local authorities said that the bank and the brokerage would remain closed during a 60-day intervention process, which could see both go into liquidation in the worst case. Local press have cited the central bank as saying Santos would need an injection of some BRL700 million to open its doors again. VARIG: Officials' Announcements Put Future in Doubt --------------------------------------------------- The future of Brazil's flagship airline Varig remains uncertain even after a top official announced that the government was taking over the carrier to save it from collapsing under a mountain of debt. Carlos Wilson Campos, the head of Brazil's federal aviation authority Infraero, said late Tuesday night that the government would intervene soon to take control of Varig, and Brazilian media reported the takeover could occur as soon as Friday. But according to a report released by the Associated Press WorldStream, the country's Vice President Jose Alencar said he did not think such intervention was being considered. He stopped short of dismissing the idea altogether. After meeting with Varig officials, Alencar said the government supports a plan for Varig's debt to be turned into equity. Creditors would end up owning a big chunk of Brazil's largest airline, but any Varig rescue plan probably won't happen until after December, Alencar said. "The best solution for Varig is to keep flying," he said. Varig has about 100 planes that fly to 110 Brazilian cities and 27 international destinations in 18 other countries. Though the airline has never disclosed its debt, analysts estimate it owes about BRL6 billion (US$2.2 billion). CONTACT: VARIG (Viacao Aerea Rio-Grandense, S.A.) Rua 18 de Novembro No. 800, Sao Joao 90240-040 Porto Alegre, Rio Grande do Sul, Brazil Phone: (51) 358-7039/7040 (51) 358-7010/7042 Fax: +55-51-358-7001 Home Page: www.varig.com.br/english/ Contacts: Dorival Ramos Schultz, EVP Finance and CFO E-mail: dorival.schultz@varig.com.br Investor Relations: Av. Almirante Silvio de Noronha, n 365-Bloco "B" - s/458 / Centro Rio de Janeiro, Brazil * BRAZIL: IMF Completes Review of Stand-By Arrangement ------------------------------------------------------ The Executive Board of the International Monetary Fund (IMF) completed Wednesday the ninth review of Brazil's performance under an SDR 27.4 billion (about US$41.95 billion) Stand-By Arrangement originally approved in September 2002, and later augmented and extended in December 2003. Total drawings under the Stand-By Arrangement to date have amounted to SDR 17.2 billion (about US$26.36 billion). Completion of the ninth review makes available a further amount equivalent to SDR 911 million (about US$1.4 billion). However, the Brazilian authorities have not drawn under the arrangement since September 2003. The authorities are treating the arrangement as precautionary as part of a strategy to exit from IMF financial support. On this basis, Brazil is expected to reduce its obligations to the IMF by SDR 2.9 billion (about US$4.44 billion) in 2004. A final review will be conducted before the IMF arrangement expires on March 31, 2005. Following the Executive Board's discussion of Brazil's economic performance, Mr. Rodrigo de Rato, Managing Director and Chair, said: "Brazil's performance under the Stand-By Arrangement has remained strong. A broad-based economic recovery is continuing, with GDP growth exceeding 6 percent over the last four quarters and all economic sectors expanding. While export growth remains impressive, the strong pick-up in domestic demand, employment, and real incomes has made the recovery more robust in the face of an uncertain external environment. The sharp rebound in investment this year, partly in response to emerging capacity constraints, is especially encouraging and bodes well for a continuation of the current economic expansion. "Macroeconomic policy has responded with appropriate caution to inflationary pressures. The central bank has gradually tightened monetary conditions in order to maintain a downward path for inflation while avoiding an abrupt adjustment of interest rates that could derail the recovery. The government has supported this effort by taking advantage of strong revenue performance to raise the 2004 primary fiscal surplus target to 4� percent of GDP. This, together with sound debt management, should help to further accelerate debt reduction and strengthen fiscal sustainability. "Sustained strong revenue performance and spending restraint in 2005 should provide further opportunities for the government to reduce debt, continue to pursue tax reform, and increase spending on high-quality infrastructure projects. In consultation with IMF and World Bank staff, the government is finalizing a plan to accommodate higher infrastructure investment in priority areas such as transport, while maintaining fiscal sustainability. The law on public-private partnerships, which is currently being considered by congress, will encourage increased private sector investment in infrastructure within a sound legal and accounting framework. "External vulnerabilities have continued to decline as a result of prudent macroeconomic policies, increasing trade openness, and corporate sector efforts to reduce external debt. Markets have reacted positively to recent developments, with the real appreciating and sovereign bond spreads declining, and the authorities have taken advantage of the benign environment to begin pre-financing their external requirements for 2005 and to purchase additional foreign exchange reserves. "Advancing the structural reform agenda is key to strengthening Brazil's medium-term growth potential. The recent passage of the bankruptcy law is a welcome step in this direction. It will be important to complete several initiatives already in progress, and then to take advantage of the opportunity provided by the strong economy to establish a suitably ambitious reform agenda for 2005 and beyond. Priority measures will be needed to reduce budget rigidities, and strengthen the investment environment, including through broad tax reforms, and measures to reduce the costs of financial intermediation and the administrative barriers to doing business. Such policies should strengthen the foundations for medium-term growth and allow more resources to be channeled into anti-poverty programs and infrastructure investment, in order to address Brazil's pressing needs in these areas. "The Brazilian authorities continue to treat the program as precautionary, as part of a strategy to exit from Fund financial support," Mr. de Rato said. CONTACT: IMF 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 ========= C H I L E ========= EMBONOR: Obtains Credit Facility for Debt Refinancing --------------------------------------------------- Chilean Coca-Cola bottler Coca Cola Embonor S.A. (Embonor; BB+/Stable/--) recently announced that it has obtained a syndicated credit facility for up to $180 million to pay, prepay, and/or refinance existing debt, mainly its bilateral credits and 144 'A' rated bonds that are due in 2006. The new credit facility is available to be drawn by the Company through March 2006. The new financing will result in significant interest savings from 2006 as the interest rate based on LIBOR plus a margin (dependent on certain consolidated financial ratios) compares favorably to the 9.875% rate for the existing bonds. The new line also somewhat improves Embonor's debt maturity profile, as it establishes a two-year grace period for principal payments and an amortization schedule for the three subsequent years. Standard & Poor's Rating Services said that the announcement would not have an immediate impact on the ratings of Embonor as these changes will help to better meet the expected improvements in financial performance already factored in the current rating levels. Primary Credit Analyst: Ivana Recalde, Buenos Aires (54) 114-891-2127; ivana_recalde@standardandpoors.com Secondary Credit Analyst: Pablo Lutereau, Buenos Aires (54) 114-891-2125; pablo_lutereau@standardandpoors.com =============== C O L O M B I A =============== BBVA COLOMBIA: Fitch Upgrades LC Debt, Individual Ratings --------------------------------------------------------- Fitch Ratings, the international ratings agency, upgraded BBVA Colombia as follows: --Long-term local currency to 'BBB-' from 'BB+' --Short-term local currency to 'F3' from 'B' --Individual rating to 'C/D' from 'D'. At the same time, Fitch has affirmed all other ratings assigned to the bank as follows: --Long-term foreign currency 'BB'; --Short-term foreign currency 'B'; --Support '3'. The bank's foreign currency ratings are at the country ceiling and the Rating Outlook on its long-term foreign currency and long-term local currency ratings are Stable. The upgrade of BBVA Colombia's local currency and individual ratings reflect the positive evolution in the bank's performance and asset quality over the past two years, as well as the lower risk profile of its government securities portfolio. The bank's ratings also continue to take into account its strong franchise and systemic importance, as well as its strong parent bank, Spain's Banco Bilbao Vizcaya Argentaria (BBVA; long-term foreign currency rated 'AA-' by Fitch). The bank's high exposure to the Colombian government, common throughout the system, it's somewhat low, albeit rising capital levels, and the economic risks inherent in its operating environment are also factored into the ratings. Due in large part to a successful strategy that has prioritized growth in consumer lending, as well as to more favorable economic conditions, the bank returned to profits in 2003 following four years of losses, and profitability continued to rise strongly in the first half of 2004, with the bank posting an return on average assets (ROAA) of 1.9% at the end of June 2004. Asset quality has also steadily improved over the past few years due to strong credit risk management coupled with improving economic conditions. Past due loans (more than 30 days past due) stood at a relatively low 3.8% of total loans at the end of June 2004, somewhat above its large bank peers, but below the system average. While an additional 12.9% of the loan portfolio was restructured at the end of June 2004, these loans are seasoned and generally speaking, have been performing well. Moreover, the bank's reserve policy is conservative and at the end of June 2004, loan loss reserves were adequate, representing 196% of past due loans (PDLs) and 44.4% of PDLs and restructured loans combined. While the bank's high holdings of government securities (26% of assets) remains a concern, the risk profile of these securities has improved since the end of 2002, as the bank has shifted to shorter term, local currency obligations. Driven principally by retained earnings, capital levels have been rising, particularly Tier 1 capital; despite asset growth and more stringent regulations, the bank's total and tier 1 capital ratios rose to 11.8% and 8.5% at the end of June 2004, respectively, up from 10.7% and 5.9% at the end of 2002. BBVA Colombia is Colombia's third largest bank ranked by deposits, providing a wide range of commercial banking and financial services and reporting a 7.9% deposit market share at the end of June 2004. Originally established by the government in 1956, BBVA Colombia was fully privatized in 1992, and in 1996 Spain's BBVA acquired a 34.7% stake and assumed managerial control. Since then, BBVA has progressively increased its stake to 95.3%, where it stood at the end of 2003. The remaining shares are widely held. In April 2004, the bank's name was changed to BBVA Colombia from BBVA Banco Ganadero. VALORES BAVARIA: Completes Divestment of Avianca Stake ------------------------------------------------------ Colombian holding company Valorem (VALBAVARI.BO), formerly known as Valores Bavaria, announced Wednesday that it has completed the sale of its approximately 50% stake in Avianca (ANC.YY) to Brazil's Synergy Group, relates Dow Jones Newswires. "The transaction ends the shareholding relationship of Valorem and Avianca, and will have almost no effect on Valorem's results," Valored said in a press release. Valorem said the divestment of Avianca and other non-strategic investments over the past three years will allow the Company to focus on activities that create shareholder value. Javier Aguirre, president of Valorem, said recently that the Company plans to sell everything that has wings and that it will focus on media investments, among others. Valorem has stakes in some of Colombia's leading companies, including Caracol, the largest television broadcaster in the Andean nation. It also has stakes in the local industrial sector, and in foreign companies, such as Canal America in Peru. Valorem registered a net loss of COP33.61 billion in the first nine months of the year, lower than the COP106.27-billion net loss in the same period in the previous year. The Company expects to post profits next year following the sale of its stake in Avianca. =========== M E X I C O =========== CYDSA: Adjourns Noteholders Meeting ----------------------------------- Cydsa, S.A. de C.V. ("Cydsa") announced Wednesday that it has adjourned the meeting of holders of its U.S.$158,997,000 9.375% Notes due 2009 (the "Existing Notes"), for want of a quorum, to Wednesday, January 19, 2005 at 9 a.m., New York City time (2:00 p.m., London time), and it has extended the deadline for submitting proxies to Friday, January 14, 2005 at 12:00 noon, New York City time (5:00 p.m., London time). On November 16, 2004, Cydsa launched a proxy solicitation in favor of an extraordinary resolution (the "Extraordinary Resolution") to exchange (the "Exchange") each U.S.$1,000 principal amount outstanding of its Existing Notes plus accrued and unpaid interest for 172.12117 shares of its Series A Common Stock, 860.60585 shares of its Series C Stock and U.S.$160.38038 principal amount of its newly issued Convertible Debentures. The Exchange will be effected on the terms and the conditions set forth in Cydsa's Proxy Solicitation Statement and Offering Circular, dated November 16, 2004, as Supplemented on December 15, 2004 (the "Statement"), and related offering documents. To more fully understand the terms of the proxy solicitation, holders of the Existing Notes should carefully read the entire Statement and the other documents to which it refers, including the proxy. Holders who held Existing Notes as of the close of business, New York City time, on Monday, November 29, 2004 are entitled to vote on the Extraordinary Resolution. Cydsa urges all holders of its Existing Notes to deliver their originally executed proxies in respect of the Extraordinary Resolution to the proxy and exchange agent as soon as possible. Proxies submitted by holders of record before the original proxy submission deadline, in anticipation of the originally scheduled meeting on December 15, 2004, remain valid, if given by holders of Existing Notes who were holders of record on November 29, 2004, unless revoked. Cydsa will distribute revised proxies and other materials reflecting the new meeting and proxy submission dates; however, holders may also use the forms previously distributed. Cydsa also urges holders, including those who already have submitted proxies, to ensure that their proxy forms contain their requested account information at Euroclear and Clearstream, to facilitate the proper crediting of the New Securities issued in the Exchange. Holders should contact the information agent, at the number listed below, with any questions. The passing of the Extraordinary Resolution at the adjourned meeting requires votes cast, in person or by proxy, in favor of the Extraordinary Resolution amounting to at least 75% of the votes cast at a meeting at which a quorum of more than 50% in aggregate principal amount of the outstanding Existing Notes, other than Existing Notes held by Cydsa, its subsidiaries or its nominees, is represented in person or by proxy. As of the original proxy submission deadline, which was Monday, December 13, 2004 at 10:00 a.m. New York City time (3:00 p.m. London time), votes representing U.S.$43,360,000 principal amount (or 27.3% of the principal amount outstanding) were cast. Votes representing U.S.$43,000,000 principal amount were in favor of the Extraordinary Resolution, U.S.$110,000 principal amount were against and U.S.$250,000 principal amount abstained. As of Tuesday, December 14, 2004 at 10:00 a.m. New York City time (3:00 p.m. London time), votes representing U.S.$94,927,000 principal amount (or 59.7% of the principal amount outstanding) were cast. Votes representing U.S.$94,377,000 principal amount were in favor of the Extraordinary Resolution, U.S.$300,000 principal amount were against and U.S.$250,000 principal amount abstained. Global Bondholder Services Corporation has been selected as information agent. Requests for assistance or documents should be directed to Harvey Eng of Global Bondholder Services Corporation, in New York, at (212) 430-3774. The proxy and exchange agent is Citibank, N.A., in London (attention: Stuart N. Hoare at +44.207.500.5309) and New York (attention: Sebastian Andrieszyn at 212.657.9055). This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Cydsa is a major Mexican industrial Company with leading market share in some of its lines of business and with long-standing relationships with major Mexican and international companies. Cydsa is engaged in manufacturing and marketing products and services in the following industries: petrochemicals and specialty chemicals; synthetic fibers and yarns; packaging film and folding carton. Cydsa's operations are organized and managed through the following business segments: Chemicals and Plastics; Fibers and Yarns and Packaging Film and Folding Carton. CONTACT: Avenida Ricardo Margain Zozaya 565-B Col. Parque Corporativo Santa Engracia San Pedro Garza Garcia,Nuevo Lesn, Mixico, C.P. 66267 URL: http://cydsa.com/Espanol/index.htm GRUPO DESC: S&P Withdraws Desc Automotriz's Rating -------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'B+' corporate credit rating on Mexican auto parts producer Desc Automotriz S.A. de C.V. at the request of its parent Company Desc S.A. de C.V. (Desc, B+/Negative/--). Desc Automotriz's 'mxBBB' national scale rating has also been withdrawn. Desc Automotriz has no rated debt outstanding. Desc Automotriz is one of Mexico's largest independent auto parts manufacturers. The Company produces 36 different types of products, including light, medium, and heavy duty manual transmissions; constant velocity joints; rear and front axles; tappets; pistons and piston pins; stamped metal products; propeller shafts; steel wheels; gears; and gaskets and seals. GRUPO TMM: Enters Into Amended Acquisition Agreement With KCS ------------------------------------------------------------- Kansas City Southern (NYSE:KSU) ("KCS") and Grupo TMM, S.A. (NYSE:TMM) and (BMV:TMMA) ("TMM") announced Wednesday that the companies have entered into an amended acquisition agreement whereby TMM will sell its 51 percent voting interest in Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. ("Grupo TFM") to KCS for $200 million in cash, 18 million shares of KCS common stock, $47 million in a two-year promissory note, and up to $110 million payable in a combination of cash and KCS common stock upon successful resolution of the current proceedings related to the VAT Claim and the Put with the Mexican Government. The $47 million promissory note and a portion of the $110 million contingent payment will be subject to certain escrow arrangements to cover potential indemnification claims. The boards of directors of both companies have approved the transaction. As part of the transaction, KCS will also enter into a three- year consulting contract with a consulting firm controlled by Jose Serrano Segovia. KCS and TMM have also agreed that upon completion of the transaction all litigation between the two companies will be dismissed. Consummation of the transaction remains subject to the satisfaction of certain conditions, including KCS shareholder approval. TMM's controlling shareholders have entered into a voting trust providing for approval of the transaction. Both the Mexican Foreign Investment Commission and the Mexican Federal Competition Commission have approved acquisition of the controlling interest in TFM by KCS. Although KCS and TMM previously satisfied the requirements of the U.S. Hart-Scott- Rodino Antitrust Improvements Act of 1976, that authorization has expired and the parties have agreed to file the required information promptly with the U.S. Department of Justice. This authorization is required prior to consummation of the transaction. "We are very pleased to have entered into this amended agreement with TMM, and believe it will enhance rail competition and give shippers in the NAFTA trade corridor a strong transportation alternative in this important and growing trade corridor," said Michael R. Haverty, chairman, president and chief executive officer of KCS. "This transaction, along with our recently approved control of The Texas Mexican Railway Company, offers our shareholders greater value through operating efficiencies and opportunities that will come from common ownership and control. Our customers, both north and south of the border, will benefit from these efficiencies as well." Jose Serrano, TMM chairman and CEO said, "We're very pleased with the outcome of the transaction. It creates significant value for all shareholders. The combination of KCS and TFM creates an efficient shipping route between the U.S. and Mexico. TMM shareholders will continue to benefit from significant ownership in this valuable franchise. The net cash proceeds of this transaction will be used by TMM to reduce its debt obligations. This transaction is truly in the best interests of TMM shareholders and will ensure long term growth and flexibility at TMM." Javier Segovia, TMM president added, "We are extremely pleased to become a significant shareholder in KCS, a strong rail alternative between the U.S. and Mexico. TMM and TFM will continue to work closely, and they have entered into a marketing agreement to further our shared goals of providing end-to-end transportation for our customers. In addition, the sale of TFM to KCS puts TMM on a superior financial footing." TFM, S.A. de C.V., the operating subsidiary of Grupo TFM, and KCSR will continue as separate corporations, all under the common control of KCS. Following consummation of the transaction, KCS will continue to operate under the KCS name and will maintain its headquarters in Kansas City, Missouri. Grupo TFM and TFM will remain Mexican corporations, with their corporate headquarters located in Mexico City. TFM holds the concession to operate Mexico's Northeast Rail Lines through June 2047, and has the option to extend the concession for an additional 50 years. The TFM rail network consists of more than 2,600 miles of mainline track. The combined system will exceed 5,300 miles of mainline track. Morgan Stanley acted as exclusive financial advisor to KCS on the transaction. J.P. Morgan Securities Inc. and Elek Moreno Valle y Asociados S.A. acted as exclusive financial advisors to TMM on the transaction. Headquartered in Mexico City, TMM is a Latin American multimodal transportation Company. Through its branch offices and network of subsidiary companies, TMM provides a dynamic combination of ocean and land transportation services. Visit TMM's web site at http://www.grupotmm.comand TFM's web site at http://www.tfm.com.mx.Both sites offer Spanish/English language options. Grupo TMM is listed on the New York Stock Exchange under the symbol "TMM" and Mexico's Bolsa Mexicana de Valores under the symbol "TMM A." KCS is a transportation holding Company that has railroad investments in the United States, Mexico and Panama. Its primary holding in the United States is The Kansas City Southern Railway Company. KCS owns 51% of The Texas Mexican Railway Company, which connects The Kansas City Southern Railway Company and TFM. Headquartered in Kansas City, Missouri, KCS serves customers in the central and south central regions of the United States. KCS' rail holdings and investments are primary components of a NAFTA Railway system that links the commercial and industrial centers of the United States and Mexico. KCS' web site is www.kcsi.com. CONTACTS: GRUPO TMM Investor Relations Brad Skinner, 011-525-55-629-8725 or 203-247-2420 E-mail: brad.skinner@tmm.com.mx Media Relations Proa/StructurA Marco Provencio, 011-525-55-629-8708 and 011-525-55-442-4948 E-mail: mp@proa.structura.com.mx AT DRESNER CORPORATE SERVICES: (general investors, analysts and media) Kristine Walczak, 312-726-3600 E-mail: kwalczak@dresnerco.com KANSAS CITY SOUTHERN MEDIA & INVESTORS William H. Galligan, 816-983-1551 william.h.galligan@kcsr.com MEXICO Media Relations Gabriel Guerra, 011-525-55-273-5359 E-mail: gguerra@gcya.net GRUPO TMM: S&P Puts Ratings On CreditWatch Positive --------------------------------------------------- Standard & Poor's Ratings Services placed its 'CCC' corporate credit and other ratings on Grupo TMM S.A. (TMM) on CreditWatch with positive implications. The CreditWatch placement followed Kansas City Southern's (KCS) announcement that it has reach an agreement with TMM to take control of TFM S.A. de C.V. The CreditWatch Positive listing for TMM means that the ratings could be raised or affirmed based on the possibility that its financial profile could improve if the merger with KCS is completed. The ratings on TMM could be affirmed if no transaction is consummated and its business and credit profiles remain unchanged. "We will monitor developments and resolve the CreditWatch placement after both TMM and KCS shareholders approve the transaction, and financing plans have been announced," said Standard & Poor's credit analyst Juan P. Becerra. The rating on the Company reflects its still-weak financial profile, higher concentration in the railroad industry, low liquidity, and minor cash-flow generation. Headquartered in Mexico City, TMM provides a combination of ocean and land transportation services. TMM currently holds 41.2% of TFM, while KCS holds 38.8%. Although both together hold 80% of TFM, they represent 100% of the voting stake (51.8% TFM and 48.5% KCS). GRUPO TMM: S&P Puts KCS Ratings On Watch Negative ------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on Kansas City Southern and unit Kansas City Southern Railway Co., including its 'BB-' corporate credit ratings on both entities, on CreditWatch with negative implications. This follows the rail Company's announcement that it has reached an agreement with Grupo TMM S.A. (TMM; CCC/Stable/--) to take control of Grupo Transportacion Ferroviaria Mexicana S.A. de C.V. (TFM), the main privatized freight railroad in Mexico. "Based on preliminary information, Standard & Poor's believes that the planned acquisition of TFM, as currently proposed, would likely result in an affirmation of Kansas City Southern ratings or a one notch downgrade," said Standard & Poor's credit analyst Lisa Jenkins. A similar deal was proposed in April 2003. However, the prospects of the deal became uncertain in August 2003 when TMM shareholders voted against the deal, despite the fact that the controlling shareholder of TMM is also the chairman and chief executive of TMM. The two companies have now entered into an amended agreement, which has been approved by the boards of both companies. Standard & Poor's also assigned its 'BB+' rating and a recovery rating of '1', indicating high expectation of full recovery of principal in the event of default, to Kansas City Southern Railway Co.'s term loan bank facility, which is being increased to $249.25 million from $149.25 million. Ratings on the bank debt, which is guaranteed by parent Kansas City Southern and certain subsidiaries, were also placed on CreditWatch with negative implications as a result of the TFM announcement. To resolve the CreditWatch listing, Standard & Poor's will meet with management to discuss the financial and strategic implications of the deal and will assess the operating prospects for both Kansas City Southern and TFM. While the proposed deal should enhance the Company's business profile, increased financial risk following the completion of the transaction will make the Company more vulnerable to cyclical pressures. Kansas City Southern is a Class 1 (major) railroad, but it is significantly smaller and less diversified than its peers. Its core rail operations cover a 10-state region that includes Missouri, Kansas, Arkansas, Oklahoma, Mississippi, Alabama, Tennessee, Louisiana, Texas, and Illinois. Since the late 1990s, Kansas City Southern has maintained an ownership interest in TFM. TFM's economic ownership interest is currently split as follows: Kansas City Southern, 37.3%; Grupo TMM S.A., 38.8%; and the Mexican government, 23.9%. Primary Credit Analyst: Lisa Jenkins, New York (1) 212-438-7697; lisa_jenkins@standardandpoors.com ISPAT INTERNATIONAL: Shareholders OK LNM Holdings Acquisition ------------------------------------------------------------- Ispat International N.V. [NYSE and Euronext Amsterdam: IST] announced Wednesday that its shareholders approved the acquisition of LNM Holdings N.V. by Ispat International N.V. at an Extraordinary General Meeting of Shareholders held Wednesday in Rotterdam. The transaction is expected to close on December 17, 2004. The combined Company, which will be named Mittal Steel Company N.V. and will trade on the New York Stock Exchange and Euronext Amsterdam under the ticker symbol "MT," will be one of the world's largest steel companies, with pro forma revenues for the nine months ending September 30, 2004 of approximately $16 billion, steel shipments of 32 million tons, and 168,000 employees in 14 countries, across four continents. At the Extraordinary Meeting, Ispat shareholders also approved the appointment of Ms. Vanisha Mittal Bhatia to the Board of Directors of Mittal Steel. All other proposals were also approved by a large majority of shareholders. About Ispat International Ispat International N.V. is one of the largest and most global steel producers, with major steelmaking operations in the United States, Canada, Mexico, Trinidad, Germany and France. The Company produces a broad range of flat and long products sold mainly in the North American Free Trade Agreement (NAFTA) participating countries and the European Union (EU) countries. Ispat International N.V. is a member of the LNM Group. Ispat International's operating philosophy embraces both integrated mini-mill and blast furnace processes for steel making. Its steel shipments have increased from 1.5 million tons in 1992 to 15.2 million tons in 2003 and were 12.4 million tons for the first nine months of 2004. In 2003, Ispat International's consolidated sales, operating income and net income were $5,441 million, $151 million and $66 million respectively. For the nine months ended September 30, 2004, Ispat International's consolidated sales, operating income and net income were $6,320 million, $1,243 million and $887 million, respectively. Ispat International is currently listed on Euronext Amsterdam and the NYSE. About LNM Holdings N.V. LNM Holdings is one of the world's largest steel producers, and operates steel-making and processing facilities in eight countries. LNM Holdings has in recent years significantly increased its production and shipments of steel products, primarily through the acquisition of additional steel producing assets. LNM Holdings shipped a total of 12.3 million tons of steel and steel products in 2003 and 19 million tons for the first nine months of 2004. The Company has acquired several steelmaking businesses over the past three years, notably in Poland, the Czech Republic, Romania and South Africa. The Company has an integrated business model with steelmaking facilities in six countries providing a diversified portfolio of flat and long products. CONTACT: Ms. Nicola Davidson General Manager, Communications +44 20 7543 1172 Mr. T.N. Ramaswamy Director, Finance +44 20 7543 1174 Mr. Chuck Burgess Ms. Gillian Angstadt Abernathy MacGregor Group +1 212-371-5999 URL: http://www.ispat.com MINERA AUTLAN: Outlines Goals for Next Year ------------------------------------------- Mexican manganese producer Minera Autlan (BMV: AUTLANB) outlined its key objectives for 2005, reports Business News Americas. Company Director General Jose Hilario Madero Marcos said the Company aims to satisfy the demand for manganese-ferroalloy in the local market as well as export the product to the US, Canada, Central and South America. The Company also aims to "consolidate" operations, reduce energy costs by investing in energy conservation projects and to develop a business model to ensure the Company's long-term profitability. Madero is confident that Autlan's workforce and technology are capable of achieving the Company's objectives. In the second quarter of 2004, Autlan reactivated all its units and has since been operating at full capacity in both its mining and production sectors. Trading in Autlan's shares resumed just last month on the Mexican City stock exchange (BMV). Stock regulators suspended the shares in February 2001 after Autlan failed to make a US$7- million eurobond payment to its creditors at a time when the Company and the general industry was experiencing difficulties. Autlan said it has since overcome these difficulties and improved its finances. For the first nine months of 2004, the Company posted net profits of MXN138 million (US$12mn) compared to net losses of MXN76 million in the same period last year. TFM: S&P Puts Ratings On CreditWatch Positive --------------------------------------------- Standard & Poor's Ratings Services placed its 'B' long-term corporate credit rating on TFM S.A. de C.V. on CreditWatch with positive implications. The CreditWatch placement followed Kansas City Southern's (KCS) announcement that it has reached an agreement with Grupo TMM S.A. to take control of TFM. The CreditWatch Positive listing for TFM means that the ratings could be raised or affirmed based on the possibility that its financial or business profile could be enhanced if the merger with KCS is completed. TFM's ratings could be affirmed if no transaction is consummated and its business and credit profiles remain unchanged or upgraded by one notch. "We will monitor developments and resolve the CreditWatch placement after both TMM and KCS shareholders approve the transaction, and financing plans have been announced," said Standard & Poor's credit analyst Juan P. Becerra. Until the acquisition takes place, the rating reflects TFM's low cash-flow generation, financial policy driven by TMM, high fuel prices, underperformance of the automotive industry (22% of TFM's 2002 total sales), and unresolved value-added tax and government put option. The rating also reflects TFM's position as the leading provider of rail transportation service in Mexico, the improving relationship between partners, and a potential switch to rail from truck. TMM currently holds 41.2% of TFM, while KCS holds 38.8%. Although both together hold 80% of TFM, they represent 100% of the voting stake (51.8% TFM and 48.5% KCS). The Mexican government holds the other 20%. TFM holds a 50-year concession title, renewable for an additional 50 years, to provide freight transportation services over the Mexican northeast rail lines. TFM's railroad network runs through Mexico's industrial heartland. It is a direct link with Mexico City and Monterrey; with the major ports of Tampico, Altamira, Veracruz, and Lazaro Cardenas; and with the cities of Matamoros and Laredo, located on the border with the U.S. TV AZTECA: To Prepay $300M Notes Due 2007 ----------------------------------------- TV Azteca S.A. de C.V. announced December 15 that it is fully funded to prepay, on December 23, its US$300 million 10-1/2% Series B Guaranteed Senior Notes due February 15, 2007. On November 23 the Company submitted to bondholders formal notification of the prepayment, based on the terms of the indenture governing the notes. The redemption price for the bonds will be 101.75. The source funds for the prepayment include proceeds from an issuance today in Mexico of Structured Securities Certificates, yielding TIIE + 2.7%, for the peso equivalent of approximately US$176 million, as well as approximately US$124million from a secured credit line denominated in pesos with Banco Inbursa, S.A., under the terms that have been previously detailed in Azteca Holdings'20F. "The facilities provide for longer maturities compared with the existing notes and have gradual amortizations, consistent with our progressive debt reduction strategy," said Carlos Hesles, Chief Financial Officer of TV Azteca. "In addition, the pesos denominated loans substantially reduce the overall foreign exchange risk on TV Azteca's debt, increasing the predictability of our financial results." 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. *********** 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. 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