/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/041221.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 Tuesday, December 21, 2004, Vol. 5, Issue 252 Headlines A R G E N T I N A ACESITA: Pays Interest on Equity AGUAS ARGENTINAS: Long-Term Contract With Government Unrealized BANCO COMAFI: Moody's Assigns Global Ratings BANCO CREDICOOP: Moody's Gives New Ratings BANCO DE VALORES: Moody's Assigns New Ratings BANCO DEL TUCUMAN: New Ratings Assigned by Moody's CABLEVISION: Moves Closer to Completing Debt Exchange CAP-HAT: Reports Submission Set CLINICA SALUD: Enters Bankruptcy on Court Orders CON MAG S.R.L.: Court Converts Bankruptcy to Reorganization EDEMSA: Retains D(arg) Rating From Local Fitch EDICIONES LATINOAMERICANA: Liquidates Assets to Pay Debts GUIA INTERNACIONAL: Court Orders Liquidation METALURGICA PASTORIZA: Concludes Reorganization PRODUCTOS PANIFICADOS: Enters Bankruptcy on Court Orders REMUL S.R.L.: Begins Liquidation Proceedings ROSARIO PRODUCTOS: Court Authorizes Settlement Plan SCHWANEK AUTOMATIZACIONES: Court Grants Reorganization Plea SEGURIDAD INTERMUNDO: Liquidates Assets to Pay Debts B A R B A D O S C&W CARIBBEAN: Expands Roaming Coverage B E R M U D A BERMUDA HEALTH ALLIANCE: Proceeds to Wind-up Operations ELAN PHARMACEUTICALS: Members Opt for Voluntary Liquidation GLOBAL CROSSING: Unit Sets Price Guidance for Bond Offering B R A Z I L AMBEV: S&P Raises Foreign Currency, Local Currency Ratings CEMIG: To Distribute Dividends Dec. 28 CEMIG: Stockholders to Vote on Asset Transfer to Subsidiaries EMBRATEL: Shares Decline on BRL450 Million Settlement Payment GERDAU: BNDES Finances BRL174.6Mln for Aracariguama Steel Plant C H I L E * CHILE: Gets $50M Loan From World Bank C O L O M B I A AVIANCA: Name Change Planned M E X I C O BALLY TOTAL: Appoints Eric Langshur to Board CFE: Pidiregas Could Pose Problems in the Long Term Says Analyst P E R U PAN AMERICAN SILVER: Holds 3Q04 Silver Production Market Lead - - - - - - - - ================= A R G E N T I N A ================= ACESITA: Pays Interest on Equity -------------------------------- Acesita S.A. informs its Shareholders that the Board of Directors, in a meeting held on December 17, 2004, approved the payment of interest on equity in the amount of fifty nine million, two hundred and eighty three thousand, one hundred and seventeen reais and eighty six cents (R$59,283,117.86) relating to fiscal year 2004. In due compliance with the rights of preferred shares to receive a distribution in an amount 10% higher than that distributed to common shares, such interest will be distributed as follows: Nominative Common Shares R$0.748069 Nominative Preferred Shares R$0.822876 The payment of the amount above will be subject to the following conditions: a) Withholding income tax of 15%, except in regard to shareholders that are exempt or free from such tax; b) Interest on equity will be ascribed to mandatory minimum dividends to be paid by the Company relating to fiscal 2004. This amount will be incorporated into the dividends distributed by the Company, for all the legal purposes provided for in the corporate law; c) Any and all outstanding shares on December 27, 2004, the base date, will be entitled to receive interest on equity that is the object of this notice; d) The corresponding credits will be entered in the Company's accounting books on December 30, 2004 in the name of the shareholders based on the shareholdings as of December 27, 2004; e) The shares will be traded on the stock exchange, "ex-interest on equity" on and after December 28, 2004; f) Interest on equity relating to fiscal 2004 will start to be paid on February 15, 2005, with no monetary adjustment; g) Shareholders resident or domiciled in a country in which income is not taxed or in which it is taxed at a maximum rate of twenty per cent (20%), will be subject to withholding income tax of 25%, as provided for in art. 24 of Law 9,430 of 12/27/96; h) So that they do not become subject to withholding income tax, exempt entities shall comply with the legislation in force and forward any supporting documentation related to the exemption up to December 27, 2004. Such documentation is to be sent to the Company's Investor Relations Department at Av. Joao Pinheiro, 580 - Centro - Belo Horizonte, MG - CEP 30130-180. The credits will be made available to shareholders on the date on which payments begin to be made, according to the current account and bank address informed to Banco Itau S.A., the depositary institution for the Company's shares. The payment of interest on equity that is the object of this notice will be made by Banco Itau, by means of automatic credit to the account of shareholders whose reference file includes the number of the corporate/individual taxpayer number and the respective banking account. Shareholders who have not provided such information will have their interest credited within tree (03) business days as from the updating of their reference file with Banco Itau. CONTACT: Investor Relations Department Av. Joao Pinheiro 580 Centro - Belo Horizonte MG - CEP 30130-180 Phone: +55 31 3235 4270/4235/4299 Fax: +55 31 3235 4300. AGUAS ARGENTINAS: Long-Term Contract With Government Unrealized --------------------------------------------------------------- The interim accord that waterworks operator, Aguas Argentinas and the Argentine government signed in May expires on Dec. 31 but up to now, there's still no transitional agreement in place. Dow Jones Newswires reveals that Company President Yves-Thibault de Silguy came to visit Buenos Aires last week but returned Friday to France, where Aguas Argentinas' parent company, Suez (SZE), is based, without reaching a long-term contract with the government. The water company was the first privatized utility to reach a bridge accord with the government. The agreement kept rates frozen and required Suez to suspend a claim against Argentina in ICSID, the World Bank's arbitration tribunal. BANCO COMAFI: Moody's Assigns Global Ratings -------------------------------------------- Moody's Investors Service assigned new ratings to Argentine bank Banco Comafi S.A. as outlined below: - Long Term Global Local Currency Deposits: B1 - Short Term Global Local Currency Deposits: Not Prime - Bank Financial Strength Rating: E - Long Term Foreign Currency Deposits: Caa2 - Short Term Foreign Currency Deposits: Not Prime - National Scale Rating for Foreign Currency Deposits: B1.ar In addition, Moody's affirmed the Aa3.ar National Scale Rating for local currency deposits assigned to Banco Comafi. Moody's noted that Global Local Currency deposit ratings indicate the relative credit risk of the bank on a globally comparable basis. The Global Local Currency deposit ratings for the Argentine bank reflect the bank's financial strength as well as the relative importance of the bank's deposit franchises within the Argentine financial system and its ownership characteristics. These factors are among the main considerations in Moody's analysis of the predictability of institutional support for local currency deposit obligations. Taken together, the National Scale and Global Local Currency ratings provide a more comprehensive opinion about the credit risk of a bank's deposits. The rating agency also explained that the Global and National Scale Foreign Currency deposit ratings of the Argentine bank reflect foreign currency transferability and convertibility risk. National Scale Ratings differentiate or rank a bank's creditworthiness on a relative basis in comparison with other banks within the same country. National Scale Ratings are designed for use at the national level, and are not globally comparable. In addition, Moody's National Scale Ratings do not constitute an opinion about a firm's absolute probability of default or failure to meet financial obligations as do the global scale ratings. Therefore, in countries having low sovereign credit ratings, even enterprises having high National Scale Ratings may be susceptible to default. Bank financial strength ratings represent Moody's opinion of a bank's intrinsic creditworthiness, excluding external support elements. They may also be understood as a measure of the likelihood that a bank will require assistance from third parties such as its owners or official institutions. BANCO CREDICOOP: Moody's Gives New Ratings ------------------------------------------ Moody's Investors Service assigned new ratings to Argentine bank Banco Credicoop Cooperativo Limitado as outlined below: - Long Term Global Local Currency Deposits: Ba3 - Short Term Global Local Currency Deposits: Not Prime - Bank Financial Strength Rating: E - Long Term Foreign Currency Deposits: Caa2 - Short Term Foreign Currency Deposits: Not Prime - National Scale Rating for Foreign Currency Deposits: B1.ar In addition, Moody's affirmed the Aaa.ar National Scale Rating for local currency deposits assigned to Banco Credicoop Cooperativo Limitado. Moody's noted that Global Local Currency deposit ratings indicate the relative credit risk of the bank on a globally comparable basis. The Global Local Currency deposit ratings for the Argentine bank reflect the bank's financial strength as well as the relative importance of the bank's deposit franchises within the Argentine financial system and its ownership characteristics. These factors are among the main considerations in Moody's analysis of the predictability of institutional support for local currency deposit obligations. Taken together, the National Scale and Global Local Currency ratings provide a more comprehensive opinion about the credit risk of a bank's deposits. The rating agency also explained that the Global and National Scale Foreign Currency deposit ratings of the Argentine bank reflect foreign currency transferability and convertibility risk. National Scale Ratings differentiate or rank a bank's creditworthiness on a relative basis in comparison with other banks within the same country. National Scale Ratings are designed for use at the national level, and are not globally comparable. In addition, Moody's National Scale Ratings do not constitute an opinion about a firm's absolute probability of default or failure to meet financial obligations as do the global scale ratings. Therefore, in countries having low sovereign credit ratings, even enterprises having high National Scale Ratings may be susceptible to default. Bank financial strength ratings represent Moody's opinion of a bank's intrinsic creditworthiness, excluding external support elements. They may also be understood as a measure of the likelihood that a bank will require assistance from third parties such as its owners or official institutions. BANCO DE VALORES: Moody's Assigns New Ratings --------------------------------------------- Moody's Investors Service assigned new ratings to Argentine bank Banco de Valores S.A. as outlined below: - Long Term Global Local Currency Deposits: Ba2 - Short Term Global Local Currency Deposits: Not Prime - Bank Financial Strength Rating: E - Long Term Foreign Currency Deposits: Caa2 - Short Term Foreign Currency Deposits: Not Prime - National Scale Rating for Foreign Currency Deposits: B1.ar In addition, Moody's affirmed the Aaa.ar National Scale Rating for local currency deposits assigned to Banco de Valores. Moody's noted that Global Local Currency deposit ratings indicate the relative credit risk of the bank on a globally comparable basis. The Global Local Currency deposit ratings for the Argentine bank reflect the bank's financial strength as well as the relative importance of the bank's deposit franchises within the Argentine financial system and its ownership characteristics. These factors are among the main considerations in Moody's analysis of the predictability of institutional support for local currency deposit obligations. Taken together, the National Scale and Global Local Currency ratings provide a more comprehensive opinion about the credit risk of a bank's deposits. The rating agency also explained that the Global and National Scale Foreign Currency deposit ratings of the Argentine bank reflect foreign currency transferability and convertibility risk. National Scale Ratings differentiate or rank a bank's creditworthiness on a relative basis in comparison with other banks within the same country. National Scale Ratings are designed for use at the national level, and are not globally comparable. In addition, Moody's National Scale Ratings do not constitute an opinion about a firm's absolute probability of default or failure to meet financial obligations as do the global scale ratings. Therefore, in countries having low sovereign credit ratings, even enterprises having high National Scale Ratings may be susceptible to default. Bank financial strength ratings represent Moody's opinion of a bank's intrinsic creditworthiness, excluding external support elements. They may also be understood as a measure of the likelihood that a bank will require assistance from third parties such as its owners or official institutions. BANCO DEL TUCUMAN: New Ratings Assigned by Moody's -------------------------------------------------- Moody's Investors Service assigned new ratings to Argentine bank Banco del Tucuman S.A. as outlined below: - Long Term Global Local Currency Deposits: B1 - Short Term Global Local Currency Deposits: Not Prime - Bank Financial Strength Rating: E - Long Term Foreign Currency Deposits: Caa2 - Short Term Foreign Currency Deposits: Not Prime - National Scale Rating for Foreign Currency Deposits: B1.ar In addition, Moody's affirmed the Aa3.ar National Scale Rating for local currency deposits assigned to Banco del Tucuman. Moody's noted that Global Local Currency deposit ratings indicate the relative credit risk of the bank on a globally comparable basis. The Global Local Currency deposit ratings for the Argentine bank reflect the bank's financial strength as well as the relative importance of the bank's deposit franchises within the Argentine financial system and its ownership characteristics. These factors are among the main considerations in Moody's analysis of the predictability of institutional support for local currency deposit obligations. Taken together, the National Scale and Global Local Currency ratings provide a more comprehensive opinion about the credit risk of a bank's deposits. The rating agency also explained that the Global and National Scale Foreign Currency deposit ratings of the Argentine bank reflect foreign currency transferability and convertibility risk. National Scale Ratings differentiate or rank a bank's creditworthiness on a relative basis in comparison with other banks within the same country. National Scale Ratings are designed for use at the national level, and are not globally comparable. In addition, Moody's National Scale Ratings do not constitute an opinion about a firm's absolute probability of default or failure to meet financial obligations as do the global scale ratings. Therefore, in countries having low sovereign credit ratings, even enterprises having high National Scale Ratings may be susceptible to default. Bank financial strength ratings represent Moody's opinion of a bank's intrinsic creditworthiness, excluding external support elements. They may also be understood as a measure of the likelihood that a bank will require assistance from third parties such as its owners or official institutions. CABLEVISION: Moves Closer to Completing Debt Exchange ----------------------------------------------------- Argentine cable television provider Cablevision SA (CBV.YY) announced Friday that it has "formally presented" its US$725 million debt restructuring offer to a local Court, says Dow Jones Newswires. Cablevision already has 98.6% approval from all creditors for the out-of-Court debt restructuring that the company is pursuing. But despite the high level of creditor acceptance, it appears the company still has to go through the Court approval process for this kind of debt restructuring, known in Spanish as an APE. Cablevision gave no indication Friday as to when final Court approval would come. The legal clearance process involves a period for creditors to present objections, as well as an opportunity for appeals after the Court makes its initial ruling. The Company's main holdout creditor was an entity related to New Jersey investment fund W.R. Huff Asset Management. In November, shortly before the second creditor vote, the Huff group sold its Cablevision bonds to another buyer. As a result, the two sides also dropped litigation that had been pending in U.S. Courts over the debt restructuring. CONTACTS: Mr. Santiago Pena Phone: (5411) 4778-6520 e-mail: mpigretti@cablevision.com.ar Mr. Martin Pigretti Phone: (5411) 4778-6546 e-mail: spena@cablevision.com.ar Web Site: www.cablevision.com.ar CAP-HAT: Reports Submission Set ------------------------------- Ms. Susana Haydee Mugnai, the trustee assigned to supervise the liquidation of Cap-Hat S.R.L., will submit the validated individual claims for Court approval on April 13, 2005. These reports explain the basis for the accepted and rejected claims. The trustee is also required to submit a general report on May 30, 2005. Infobae reports that Court No. 14 of Buenos Aires' civil and commercial tribunal has jurisdiction over the case. The city's Clerk No. 28 assists the Court with the proceedings. CONTACT: Ms. Susana Haydee Mugnai, Trustee Lavalle 1459 Buenos Aires CLINICA SALUD: Enters Bankruptcy on Court Orders ------------------------------------------------ Clinica Salud D Elia S.A. enters bankruptcy protection after Court No. 4 of Lomas de Zamora's civil and commercial tribunal ordered the company's liquidation. The 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. Roberto Di Martino as trustee. He will be verifying creditors' proofs of claims until the end of the verification phase on February 10, 2005. 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 March 29, 2005 followed by the general report that is due on May 26, 2005. CONTACT: Clinica Salud D Elia S.A. Santiago Plaul 2082 Lanus Mr. Roberto Di Martino, Trustee Basavilbaso 2026 Lanus CON MAG S.R.L.: Court Converts Bankruptcy to Reorganization ----------------------------------------------------------- Con Mag S.R.L. will proceed with reorganization after Court No. 19 of Buenos Aires civil and commercial tribunal converted the Company's ongoing bankruptcy case into a "concurso preventivo", states Infobae. Under Insolvency protection, the Company will be able to draft a proposal designed to settle its debts with creditors. The reorganization also prevents an outright liquidation. Ms. Mabel Alba Nieves Herrera, the Court-appointed trustee, will verify creditors' proofs of claims until February 2, 2005. Creditors with unverified claims cannot participate in the Company's settlement plan. The Court further requires the trustee to submit individual reports culled from the validated claims on March 16, 2005 and a general report on April 29, 2005. CONTACT: Ms. Mabel Alba Nieves Herrera, Trustee Rodriguez Pena 694 Capital Federal EDEMSA: Retains D(arg) Rating From Local Fitch ---------------------------------------------- The Argentine arm of credit ratings agency Fitch Ratings confirmed the D(arg) local scale ratings on a US$150 million debenture issue of Mendoza power distributor Edemsa, reports Business News Americas. The rating action reflects Edemsa's struggles amid frozen and "pesofied" tariffs, rising levels of uncollectibles and illegal power connections. The company's financial condition is further worsened by an unpaid debt from the provincial and federal governments that as at September this year stood at ARS31 million (US$10.3 million) in principal and interest. CONTACT: Empresa Distribuidora de Electricidad de Mendoza S.A. San Martin 322 (5500) Mendoza EDICIONES LATINOAMERICANA: Liquidates Assets to Pay Debts --------------------------------------------------------- Buenos Aires-based Compania de Ediciones Latinoamericana S.A. will begin liquidating its assets following the bankruptcy pronouncement issued by Court No. 13 of the city's civil and commercial tribunal, reports Infobae. The ruling places the company under the supervision of trustee Norberto Isidoro Sapir. The trustee will verify creditors' proofs of claims until February 21, 2005. The bankruptcy process will end with the disposal company assets in favor of its creditors. CONTACT: Mr. Norberto Isidoro Sapir, Trustee Jose Evaristo Uriburu 1010 Buenos Aires GUIA INTERNACIONAL: Court Orders Liquidation -------------------------------------------- Court No. 19 of Buenos Aires' civil and commercial tribunal ordered the liquidation of Guia Internacional de Trafico S.R.L. after the Company defaulted on its debt obligations, Infobae reveals. The liquidation pronouncement will effectively place the Company's affairs as well as its assets under the control of Mr. Eduardo Fermin Aguinaga, the Court-appointed trustee. Mr. Aguinaga will verify creditors' proofs of claims until February 16, 2005. The verified claims will serve as basis for the individual reports to be submitted in Court on April 1, 2005. The submission of the general report should follow on May 13, 2005. The city's Clerk No. 38 assists the Court on this case that will end with the disposal of the Company's assets in favor of its creditors. CONTACT: Guia Internacional de Trafico S.R.L. Suipacha 207 Buenos Aires Mr. Eduardo Fermin Aguinaga, Trustee Maipu 374 Buenos Aires METALURGICA PASTORIZA: Concludes Reorganization ----------------------------------------------- The reorganization of Buenos Aires-based Metalurgica Pastoriza S.A.I. y C. has ended. Information released by Infobae on its Web site indicated that the process was concluded after Court No. 8 of the city's civil and commercial tribunal, with assistance from Clerk No. 15, homologated the debt agreement signed between the Company and its creditors. PRODUCTOS PANIFICADOS: Enters Bankruptcy on Court Orders -------------------------------------------------------- Court No. 19 of Buenos Aires' civil and commercial tribunal declared Productos Panificados S.A. bankrupt after the company defaulted on its debt payments. The order places the company's affairs as well as its assets under the control of Court- appointed trustee Mabel Alba Nieves Herrera. As trustee, Ms. Herrera is tasked with verifying the authenticity of claims presented by the company's creditors. The verification phase is ongoing until December 29. Following claims verification, the trustee will submit the individual reports based on the forwarded claims for final approval by the Court on March 10, 2005. A general report will also be submitted on April 25, 2005. Infobae reports that the city's Clerk No. 38 assists the Court on this case that will end with the disposal of the company's assets to repay creditors. CONTACT: Productos Panificados S.A. Santander 5581 Buenos Aires Ms. Mabel Alba Nieves Herrera, Trustee Rodriguez Pena 694 Buenos Aires REMUL S.R.L.: Begins Liquidation Proceedings -------------------------------------------- Remul S.R.L. of Buenos Aires will begin liquidating its assets after Court No. 19 of the civil and commercial tribunal declared the Company bankrupt. Infobae reveals that the bankruptcy process will commence under the supervision of Court-appointed trustee Jose Luis Cueli. The trustee will review claims forwarded by the Company's creditors until February 8, 2005. After claims verification, the trustee will submit the individual reports for Court approval on March 22, 2005. The general report will follow on May 5, 2005. The city's Clerk No. 38 assists the Court on this case. CONTACT: Remul S.R.L. Avda Santa Fe 3312 Buenos Aires Mr. Jose Luis Cueli, Trustee Junin 55 Buenos Aires ROSARIO PRODUCTOS: Court Authorizes Settlement Plan --------------------------------------------------- Buenos Aires-based Company Rosario Productos Quimicos S.R.L. concluded its reorganization process, according to Infobae. The conclusion came after Court No. 1 of the civil and commercial tribunal approved the debt plan signed between the Company and its creditors. SCHWANEK AUTOMATIZACIONES: Court Grants Reorganization Plea ----------------------------------------------------------- Schwanek Automatizaciones S.A., a company operating in Buenos Aires, begins reorganization proceedings after the city's civil and commercial Court No. 19, with assistance from Clerk No. 38, granted its petition for "concurso preventivo". During the reorganization, the Company will be able to negotiate a settlement proposal for its creditors so as to avoid a straight liquidation. According to Argentine news source Infobae, the reorganization will be conducted under the direction of Mr. Juan Carlos Caro, the Court-appointed trustee. Creditors with claims against the Company must present proofs of the company's indebtedness to the trustee by February 18, 2005. These claims will constitute the individual reports to be submitted in Court on April 5, 2004. The Court also requires the trustee to present an audit of the company's accounting and business records through a general report due on May 17, 2005. CONTACT: Schwanek Automatizaciones S.A. San Martin 933 Buenos Aires Mr. Juan Carlos Caro, Trustee San Martin 793 Buenos Aires SEGURIDAD INTERMUNDO: Liquidates Assets to Pay Debts ---------------------------------------------------- Seguridad Intermundo S.A. will begin liquidating its assets following the bankruptcy pronouncement issued by Court No. 19 of the city's civil and commercial tribunal, Infobae reports. The ruling places the company under the supervision of Court- appointed trustee Susana H. Ventura. Ms. Ventura will verify creditors' proofs of claims until February 4, 2005. Next, the validated claims will be presented in Court as individual reports on March 18, 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, May 3, 2005. The bankruptcy process will end with the disposal company assets in favor of its creditors. CONTACT: Seguridad Intermundo S.A. Avda San Juan 1981 Buenos Aires Ms. Susana H Ventura, Trustee Argerich 3369 Buenos Aires =============== B A R B A D O S =============== C&W CARIBBEAN: Expands Roaming Coverage --------------------------------------- Cable & Wireless, the Caribbean's leading communications provider, has added even more service and value for its GSM pre- paid mobile customers by introducing pre-paid roaming across all 12 of the Caribbean markets it serves. Cable & Wireless pre-paid customers can now take their mobiles with them and enjoy the strongest wireless network in the Caribbean. And, early in 2005, pre-paid customers will also be able to roam in Trinidad & Tobago and the U.S. "Our pre-paid mobile users can now benefit from truly seamless mobility," said Stephen Brewer, CEO of Cable & Wireless Caribbean Mobile. "They can just go, make and receive calls as if they were still at home, and save with one low rate for roaming in all 12 Cable & Wireless countries. Plus, they can use their voice mail, as well as send and receive text messages.and all incoming text messages are free," Brewer added. All Cable & Wireless GSM mobile customers can now enjoy the largest roaming area in the Caribbean, including Anguilla, Antigua and Barbuda, Barbados, Cayman Islands, Dominica, Grenada, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, and the Turks and Caicos Islands. No contracts, deposits or activation fees are required for pre- paid roaming. Customers simply register by calling customer service or visiting their nearest Cable & Wireless store. About Cable & Wireless Cable & Wireless is one of the world's leading international communications companies and the leading provider of communications in the Caribbean. With operations in Anguilla, Antigua & Barbuda, Barbados, Cayman Islands, Dominica, Grenada, Jamaica, Montserrat, St Kitts & Nevis, St Lucia, St Vincent & the Grenadines and Turks & Caicos, the company provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. Cable & Wireless' principal operations are in the United Kingdom, continental Europe, Asia, the Caribbean, Panama and the Middle East. ============= B E R M U D A ============= BERMUDA HEALTH ALLIANCE: Proceeds to Wind-up Operations ------------------------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 and IN THE MATTER OF Bermuda Health Alliance The Liquidator informs that: - Creditors of Bermuda Health Alliance, which is being voluntarily wound up, are required, on or before December 31, 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 Member of Bermuda Health Alliance will be held at the offices of Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda on January 21, 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 ELAN PHARMACEUTICALS: Members Opt for Voluntary Liquidation ----------------------------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 and IN THE MATTER OF Elan Pharmaceutical Investments II, Ltd The Member of Elan Pharmaceutical Investments II Ltd, acting by written consent without a meeting on December 15, 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 Elan Pharmaceutical Investments II Ltd, which is being voluntarily wound up, are required, on or before December 31, 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 Member of Elan Pharmaceutical Investments II, Ltd will be held at the offices of Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda on January 21, 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 GLOBAL CROSSING: Unit Sets Price Guidance for Bond Offering ----------------------------------------------------------- A banker announced that Global Crossing (UK) Finance Plc (GCUK), an indirectly wholly-owned subsidiary of formerly bankrupt Global Crossing Ltd (GLBC), set price guidance for a US$350 million two-part 10-year high-yield bond that it plans to sell this week. Citing the unnamed banker, Reuters reports that GCUK will price a dollar-denominated bond to yield around 11 percent, while a sterling-denominated bond will be priced to yield around 100 basis points more, or around 12 percent. Some of the covenants on the bonds have been amended in the face of concerns from investors. The amount of debt the company can incur has been limited to a lower level, while restrictions have been put on the amount of money that can be transferred to the parent company Global Crossing Ltd. Standard & Poor's has assigned a B- rating to the proposed bond, while Moody's Investors Service has assigned a Caa1 rating, one notch lower. Both agencies cite concerns over the company's high debt level and the upstreaming of a substantial portion of the company's free cash flow to its parent. CONTACT: Press Contacts Ms. Becky Yeamans Phone: + 1 973-937-0155 e-mail: PR@globalcrossing.com Ms. Kendra Langlie Latin America Phone: + 1 305-808-5912 e-mail: LatAmPR@globalcrossing.com Mr. Mish Desmidt Europe Phone: + 44 (0) 7771-668438 e-mail: Europe@globalcrossing.com Analysts/Investors Contact Ms. Laurinda Pang Phone: +1 800-836-0342 e-mail: glbc@globalcrossing.com Web Site: www.globalcrossing.com =========== B R A Z I L =========== AMBEV: S&P Raises Foreign Currency, Local Currency Ratings ---------------------------------------------------------- Standard & Poor's Ratings Services raised its foreign and local currency corporate credit ratings on Brazil-based brewery Compahia de Bebidas das Americas (AmBev). The foreign currency corporate credit rating was raised to 'BBB-' from 'BB-', and the local currency corporate credit rating was raised to 'BBB' from 'BBB-'. The ratings were removed from CreditWatch, where they were placed with positive implications on March 4, 2004 following the announcement of the combination of AmBev and Interbrew (now InBev). The outlooks on the local and foreign currency ratings are stable. "The three-notch foreign currency upgrade to 'BBB-' incorporates the substantial change in AmBev's ability to access foreign currency flows in case of an exchange control event in Brazil, by virtue of its expected access to Canadian source cash-flows of its now 100% owned direct-owned subsidiary Labatt Canada," said Standard & Poor's credit analyst Tamara Berenholc. "The one-notch local currency rating upgrade reflects the improvement in AmBev's business and financial profile with the incorporation of the Canadian brewer operations and the combination with Interbrew, which together with AmBev formed the largest brewery in the world, with consolidated revenues of $11.9 billion dollars and 14% share of global beer consumption." The new enlarged AmBev is the second-largest brewer in the Americas in terms of volumes and cash generation (EBITDA), producing about 110 million hectoliters of beer and soft drinks. The stable outlook on the foreign currency rating reflects the expected maintenance of AmBev's foreign currency net debt level (including the debt level in Canada and Brazil) and prudent financial policies. An upgrade in the foreign currency ratings is seen as unlikely unless InBev provides a stronger commitment to financially support AmBev in the event of transfer and convertibility constraints. On the other hand, any significant increase in the net foreign currency debt of AmBev could lead to a foreign currency rating downgrade. In addition, there is still some linkage to the Brazil sovereign rating (foreign currency: BB-/Stable/B). A future sovereign rating action, while not currently anticipated given the stable outlook, could affect AmBev foreign currency rating, depending on the drivers of the rating action. The stable outlook on the local currency rating indicates the expectation that AmBev will be successful in integrating Labatt despite the challenge of incorporating different cultures and markets. Even though we did not fully incorporate the cost improvements anticipated by AmBev with the incorporation of Labatt, Standard & Poor's expects the company to be successful in the integration given the experience of the management team with other acquisition processes and each company's expertise. Financial ratios are expected to be maintained at strong levels for this rating category, with total debt to EBITDA below 2x and EBITDA to interest coverage of about 6.5x in the next three years. Difficulties in the integration process that would have an impact on AmBev' strong business positions and the reduction of its financial strength would put negative pressure on the rating. CEMIG: To Distribute Dividends Dec. 28 -------------------------------------- Stockholders of Companhia Energetica De Minas Gerais are advised that the Interest on Equity approved by the meetings of the Board of Directors held on 28 November 2003 and 18 December 2003, and the dividends approved at the Ordinary and Extraordinary General Meetings of Stockholders held on 30 April 2004, will be paid on 28 December 2004, as follows: - Interest on Equity in the amount of R$ 150,000,000.00 (one hundred and fifty million Reais), corresponding to R$ 0.925442 per thousand shares, which will be paid to all stockholders whose names were on the Company's Nominal Share Register on 8 December 2003; - Interest on Equity in the amount of R$ 100,000,000.00 (one hundred million Reais), corresponding to R$ 0.616961 per thousand shares, which will be paid to all stockholders whose names were on the Company's Nominal Share Register on 29 December 2003; - Dividends in the amount of R$ 70,494,031.79 (seventy million, four hundred and ninety-four thousand and thirty-one Reais and seventy-nine centavos), corresponding to R$ 0.434920 per thousand shares, which will be paid to all stockholders whose names were on the Company's Nominal Share Register on 30 April 2004. The payment will be made automatically for all stockholders whose details are up to date in the registry of Banco Itau S.A CONTACT: Companhia Energetica De Minas Gerais (CEMIG) Av. Barbacena 1200 Santo Agostinho - CEP 30190-131 Belo Horizonte MG Brasil Fax: (0XX31)299-4691 Tel.: (0XX31)349-2111 CEMIG: Stockholders to Vote on Asset Transfer to Subsidiaries ------------------------------------------------------------- Stockholders of Companhia Energetica De Minas Gerais (CEMIG) are hereby called to an Extraordinary General Meeting, to be held on December 30, 2004, at 9:30 a.m. at the company's head office at Avenida Barbacena 1200, 18th floor, in the city of Belo Horizonte, Minas Gerais State, Brazil, to decide on the following matters: I - Authorization for the transfer of the generation, transmission and distribution establishments of Companhia Energetica de Minas Gerais to the wholly-owned subsidiaries Cemig Geracao e Transmissao S.A. and Cemig Distribuicao S.A., by transfer of assets, rights, obligations intruding tax obligations, employees, clientele and other elements related to these activities. II - Approval of the Opinion on Valuation of Goods and Physical/accounting Reconciliation of Assets of Companhia Energetica de Minas Gerais, as provided for in Article 8 of Law 6404/76, prepared by SETAPE - Servicos Tecnicos de Avaliacoes do Patrimonio e Engenharia Ltda, and also the transfer of the goods of Cemig's fixed assets in service to the wholly owned subsidiaries Cemig Geracao e Transmissao S.A. and Cemig Distribuicao S.A. III - Approval of the Opinion on Monetary Special Obligations, Assets and Liabilities of Companhia Energetica de Minas Gerais, as provided for by Article 8 of Law 6404/76, prepared by the company Deloitte Touche Tohmatsu Auditores Independentes, and also the transfer of the monetary special obligations, assets and liabilities of Cemig to the wholly-owned subsidiaries Cemig Geracao e Transmissao S.A. and Cemig Distribuicao S.A. IV - Authorization for the transfer, by 31 January 2005, through the paying up of the registered capital of the wholly-owned subsidiaries Cemig Geracao e Transmissao S.A. and Cemig Distribuicao S.A., of the net value specified in the above- mentioned Opinions. V - Authorization for the registration, in the account line Advances for future increases of capital, in Companhia Energetica de Minas Gerais, of the accounting balances at 31 December 2004 of the goods, rights and obligations of Cemig, deducting the amount corresponding to the net amount of the values specified by the above-mentioned Opinions, the result of which shall be subscribed to the registered capital of the wholly owned subsidiaries Cemig Geracao e Transmissao S.A. and Cemig Distribuicao in 2005. VI - Change in the composition of the Board of Directors and, consequently, election of the sitting and substitute members of the said Board, through cumulative vote, as requested by the stockholder Southern Electric Brasil Participacoes Ltda. and as a result of the resignation of one Board Member. Pursuant to Clause 3 of CVM Instruction 165 of 11 December 1991, adoption of a requisition to elect members of the Board by the cumulative voting method requires the affirmative vote of stockholders representing in aggregate a minimum of 5% (five percent) of the company's total voting stock. Any stockholder who wishes to be represented by proxy in this General Meeting should obey the terms of Article 126 of Law 6406/76, as amended, and the sole paragraph of Article 9 of the Company's By-laws, by depositing, preferably by 28 December 2004, proofs of ownership of the shares, issued by a depositary financial institution, and a power of attorney with special powers, at the management office of the General Secretariat of Cemig at Av. Barbacena 1,200 - 19th floor, B1 wing, Belo Horizonte, state of Minas Gerais, Brazil, or by showing the said proofs of ownership at the time of the meeting. PROPOSAL BY THE BOARD OF DIRECTORS TO THE EXTRAORDINARY GENERAL MEETING TO BE HELD ON 30 DECEMBER 2004. In view of the following: a) the need to change the bylaws to improve the attributions of the Board of Directors, and to establish guiding procedures for preparation of the Company's Master Guidelines Plan; b) the requirement that any changes in the Bylaws should be previously approved by the National Electricity Agency (ANEEL); c) that for Cemig to adapt to the new model for the electricity sector established by Law 10848 of 15 March 2004, it is necessary for it to carry out a stockholding restructuring; d) that State Law 15290 of 4 August 2004 authorized the stockholding restructuring of Cemig, through the creation of wholly-owned subsidiaries constituted specifically for the activities of generation, transmission and distribution, upon decision by the Board of Directors of the company, with Cemig having the role of a holding company and keeping stockholding control of the companies to be created; e) that the Board of Directors of Cemig, through CRCA/105/2004, of 27 August 2004, approved the creation of two wholly owned subsidiaries, one to be named Cemig Geracao e Transmissao S.A. and the other Cemig Distribuicao S.A.; f) that there will be transferred to these wholly-owned subsidiaries goods, rights and obligations of Cemig related to the activities of generation, transmission and distribution of electricity; g) that the company SETAPE - Servicos Tecnicos de Avaliacoes do Patrimonio e Engenharia Ltda. was appointed by the Extraordinary General Meeting of Cemig held on 16 September 2004 to prepare Opinions on Valuation of Goods and Physical-accounting Reconciliation of the Assets of Cemig, as provided for by Clause 8 of Law 6404/76; h) that the company Deloitte Touche Tohmatsu Auditores Independentes was appointed by the Extraordinary General Meeting of Cemig to prepare another Opinion attesting to the balance of Monetary Special Obligations, Assets and Liabilities of Cemig, to be transferred to the subsidiaries Cemig Geracao e Transmissao S.A. and Cemig Distribuicao S.A.; THE BOARD OF DIRECTORS PROPOSES TO SUBMIT TO THE EXTRAORDINARY GENERAL MEETING: A) Authorization for the transfer of the establishments of generation, transmission and distribution of Cemig to the wholly-owned subsidiaries Cemig Geracao e Transmissao S.A. and Cemig Distribuicao S.A., through the transfer of goods, rights, obligations including tax obligations, employees, clientele and other elements related to these activities. B) Approval of the Opinions on Valuation of Goods and Physical- accounting Reconciliation of Assets of Cemig, as provided for by Clause 8 of Law 6404/76, prepared by SETAPE - Servicos Tecnicos de Avaliacoes do Patrimonio e Engenharia Ltda., and also the transfer of the goods of Cemig's fixed assets in service to the wholly-owned subsidiaries Cemig Geracao e Transmissao S.A. and Cemig Distribuicao S.A., for the amounts, net of depreciation, of R$ 3,834,690,584.97 and R$ 4,143,272,149.71, respectively. C) Approval of the Opinion on Monetary Special Obligations, Assets and Liabilities of Cemig, as provided for by Clause 8 of Law 6404/76, prepared by the company Deloitte Touche Tohmatsu Auditores Independentes, and also the transfer of the monetary special obligations, assets and liabilities of Cemig to the wholly-owned subsidiaries Cemig Geracao e Transmissao S.A and Cemig Distribuicao S.A., in the net negative amounts of R$ 1,575,671,165.99 and R$ 3,667,520.935.34, respectively. D) Authorization for the transfer, up to 31 January 2005, through the paying-up of the registered capital of the wholly- owned subsidiaries Cemig Geracao e Transmissao S.A. and Cemig Distribuicao S.A., of the net amount of the values specified in the above-mentioned Opinions to be approved in the Extraordinary General Meeting to be held on 30 December 2004. E) Authorization for registration in the account line Advances for future increases of capital of Companhia Energetica de Minas Gerais, of the accounting amounts at 31 December 2004 of the goods, rights and obligations of Cemig, less the amount of R$ 2,734,770,633.35, corresponding to the net amount of the above- mentioned Opinions to be approved at the said EGM, the result of which shall be incorporated into the registered capital of the wholly-owned subsidiaries Cemig Geracao e Transmissao S.A and Cemig Distribuicao S.A in 2005. As can be seen, the aim of this proposal is to meet legitimate interests of the stockholders and of the Company, and for this reason the Board of Directors expects that it will be approved by the stockholders. EMBRATEL: Shares Decline on BRL450 Million Settlement Payment ------------------------------------------------------------- Embratel Participacoes SA's (EMT) shares closed 4.8% lower at BRL5.19 on Dec. 17 after the company agreed to pay BRL450 million ($1=BRL2.71) to settle legal disputes with other operators. According to Dow Jones, Embratel has agreed to pay BRL304 million to Tele Norte Leste SA (Telemar) and another BRL150 million to Brasil Telecom Participacoes SA (BRP), to settle a dispute over interconnection fees and infrastructure sharing agreements, some of which date back to 1994. Embratel is reported to be negotiating a similar settlement with the third fixed line operator, Sao Paulo's Telesp Participacoes SA (TSP). The deal with the three fixed line operators is seen as a move by the new management at Embratel, appointed by Mexican phone giant Telefonos de Mexico SAde CV (TMX), to clean up the company's balance sheet. CONTACT: Ms. Silvia M.R. Pereira Investor Relations Phone: (55 21) 2121-9662 Fax: (55 21) 2121-6388 e-mail: silvia.pereira@embratel.com.br invest@embratel.com.br GERDAU: BNDES Finances BRL174.6Mln for Aracariguama Steel Plant --------------------------------------------------------------- The board of Banco Nacional de Desenvolvimento Economico e Social (BNDES) approved a financing in the amount of R$ 174.6 million for Gerdau Acominas to implement a manufacturing unit in the Municipality of Aracariguama (SP), with capacity to produce 900 thousand ton/year of steel. The implementation, expected for 2005, will generate 400 direct jobs. Financing will be made in two modalities: R$ 73.8 million will be granted directly to Gerdau Acominas; and R$ 100.8 million will be transferred by Santander, for the purchase of domestic machinery and equipment (Finame). The operation is part of the company's investment in the first phase of implementation of Aracariguama (SP) unit, in the amount of R$ 282 million, from which R$ 174.6 million (61.9%), will be financed by BNDES. The company already made, between January and September of current year, investments of R$ 23.3 million in the project, from which BNDES participated with R$ 4 million. The complete implementation of the manufacturing unit assumes investments around R$ 820 million and will have a total installed capacity of 1.3 million ton/year of steel and lamination of 1.2 million ton/year of iron bars, GG50type, directed to the civil construction and used in concrete frames. Beginning of production of iron bars is expected for April 2006. Founded in 1901, Gerdau group is the leading producer of long steel for the American continent, with 26 steel plants, from which 10 are located in Brazil, with 13 thousand employees. The group has a total installed production capacity of 16 million ton/year of raw steel and 13.5 million ton/year of laminated products. Production of long steel in Brazil has been growing at a rate of 5.4% in the last five years. Long semifinished (bars, blocks and dowels) are the main exportation items of the sector and Gerdau group accounts for almost 95% of total production. The Brazilian steel industry is competitive for its low cost and for the high quality of iron ore, abundant in the country. In 2003, the Brazilian steel sector was comprised of 26 plants, with a combined production capacity of 33.8 million ton/year of raw steel, ranking ninth worldwide. The steel industry uses intensively capital and natural resources and has strong connections with various economic sectors, such as civil construction, which has a big employment potential. Beginning in 2001, there was an increase in steel international demand, mainly in function of the Chinese economy expansion, which consumed around 28% of worldwide production. ========= C H I L E ========= * CHILE: Gets $50M Loan From World Bank --------------------------------------- The World Bank approved a $50.26 million loan for Chile to increase the effective and productive use of infrastructure services in poor rural communities. "Expanding infrastructure services into hard-to-reach, dispersed rural populations is key to ensure that all Chileans enjoy a basic standard of living and benefit from income generating opportunities that can help them rise out of poverty," said Axel van Trotsenburg, World Bank Country Director for Argentina, Chile, Paraguay and Uruguay. "Specifically, the project will beneficiate the half a million Chileans in rural areas who live in poverty and who is many cases lack basic services." The Infrastructure for Territorial Development Project aims to improve the livelihood of rural communities in the regions of Coquimbo, Maule, Bio Bio, Araucania, and Los Lagos by improving the provision of infrastructure services, including water supply, sanitation, roads, Information Communications Technology (ICT), and electricity, in the context of participatory territorial planning. In particular, the project will help: - Elaborate territorial development plans with active participation of local stakeholders, and a strategic and integrated vision of infrastructure subprojects and productive potentialities; - Upgrade about 1,000 km of existing secondary rural roads, paths, bridges and foot bridges to improve transportation accessibility; - Rehabilitate and build water and sanitation facilities in rural communities; - Improve quality of conventional electricity services, off-grid and renewable energy solutions, such as generators, solar panels and wind turbines; - Enhance connectivity to the telecommunications access network for schools, municipalities, micro enterprises, health centers, and communities; and - Finance consultant services to strengthen community-based structures for managing and sustaining the infrastructure services. The $50.26 million fixed-spread loan has a repayment period of 6.5 years, including 4.5 years of grace. CONTACTS: Buenos Aires: Ms. Yanina Budkin Phone: 4316-9700 e-mail: Ybudkin@worldbank.org Washington: Ms. Alejandra Viveros Phone: (202) 473-4306 e-mail: Aviveros@worldbank.org =============== C O L O M B I A =============== AVIANCA: Name Change Planned ---------------------------- Brazilian entrepreneur German Efromovich announced Wednesday that his recently acquired Colombian airline Avianca will change its name to Aerovias del Continente Americano, or ACA, during the first half of 2005. The object is to carry the Colombian flag to more destinations more frequently than the Avianca routes already approved in Europe and the Americas and to increase the frequency of flights to countries like Spain and the United States. "We are responsible for Avianca's presence in the world's skies and it is in our hands to preserve the airline's preferred status among national and international travelers. We will do everything necessary to accomplish that goal," Efromovich said. Efromovich said that with the bankruptcy proceedings in the United States ended, Avianca can reach for new heights. Efromovich owns the Sinergy Group, which recently acquired a 75% share in Avianca. The remaining 25% of the airline is owned by the National Coffee Growers Association of Colombia (Fedecafe). "If in the past we worked hard on the restructuring that has been completed, we will work harder now to speed up consolidation and development of the enterprise," Efromovich added. =========== M E X I C O =========== BALLY TOTAL: Appoints Eric Langshur to Board -------------------------------------------- Bally Total Fitness Holding Corporation (NYSE:BFT), North America's leader in health and fitness products and services, announced Friday that Eric Langshur has been appointed to the Company's Board of Directors, effective immediately. "Eric is an excellent addition to the Company's Board of Directors," said Paul Toback, chairman, CEO and president, Bally Total Fitness. "He has an exceptional background in business and finance along with a particular expertise in corporate turnarounds. I look forward to taking advantage of his knowledge and experience, and working closely with him as we move forward with Bally's turnaround." Eric Langshur is the founder and CEO of TLContact, Inc., a privately held company that delivers innovative patient communications and education services to the healthcare industry. Prior to starting TLContact in 2000, he served as President of Bombardier Aerospace, CAS, where he lead commercial aerospace service operations for a world leader in the design and manufacture of innovative aviation products and services for the business, regional and amphibious aircraft markets. Before Bombardier, Mr. Langshur spent 13 years with United Technologies Corporation, where he held a variety of senior management and turnaround positions at Hamilton Sundstrand, Pratt & Whitney and UTC's corporate office. Mr. Langshur holds an MBA from Columbia University and a BSc from the University of New Brunswick in Finance and Information Systems. About Bally Total Fitness Bally Total Fitness is the largest and only nationwide commercial operator of fitness centers, with approximately four million members and approximately 440 facilities located in 29 states, Mexico, Canada, China, Korea and the Caribbean under the Bally Total Fitness(R), Crunch Fitness(SM), Gorilla Sports(SM), Pinnacle Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada(R) brands. With an estimated 150 million annual visits to its clubs, Bally offers a unique platform for distribution of a wide range of products and services targeted to active, fitness- conscious adult consumers. For more information, visit http://www.ballyfitness.com. CONTACT: Bally Total Fitness Holding Corp. Chicago Mr. Jon Harris Phone: 773-864-6850 Web site: www.ballyfitness.com or MWW Group Mr. Joe Cohen Phone 201-964-2443 e-mail: jcohen@mww.com CFE: Pidiregas Could Pose Problems in the Long Term Says Analyst ---------------------------------------------------------------- State power company CFE's debt could snowball in the long-term under the Pidiregas financing scheme because the infrastructure projects covered under it have turned out to be more expensive than CFE's initial estimates, reports Business News Americas. Mr. Ivan Zea, analyst for Cambridge Energy Research Associates (CERA), has cautioned against a prolonged dependence on the scheme, saying that project costs in excess of the Company's initial price calculations and has, in effect, placed the Company in heavy debt. Pidiregas works by allowing private companies to shoulder project construction costs while the Government repays the money over a certain period of time. Ideally, an investment should be fully paid and self-supporting by the time a project is finished. CFE's financial chief, Mr. Francisco Santoyo had earlier announced that the Company has enough funds to cover around US$2 billion in debt payments for 2005 to 2006. ======= P E R U ======= PAN AMERICAN SILVER: Holds 3Q04 Silver Production Market Lead ------------------------------------------------------------- Pan American Silver led the market in terms of silver production in the third quarter of 2004 after resolving dewatering and ore- related problems at its La Colorada silver mine in west-central Mexico. Business News Americas reports that the Company had expected to produce 3.5Moz of silver in 2004 before technical problems forced the Company to lower its estimates to 1.8Moz of silver by year-end. In 2005, the Company hopes to ramp up production from 2.8Moz to 3.5Moz. Ms. Brenda Radies, the Company's vice-president for corporate relations, also told Business News Americas that cash costs at La Colorada will "substantially" fall next year. In the first nine months of 2004, cash costs at the mine were recorded at US$6.17/oz. Ms. Radies further revealed recent developments for its Alamo Dorado project in Mexico and the newly acquired Morococha silver mine in Peru. Depending on the outcome of the feasibility study to be completed in February 2005, Pan American could begin construction and pre-stripping in the first half of 2005 at Alamo Dorado. The Company is also making progress at the Morococha mine in Peru. Next year, the Company has outlined plans to carry out 6,000m of drilling at the site, half to upgrade resources into reserves, half to explore the rest of the 11,000ha property. *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and Lucilo Junior M. Pinili, Editors. Copyright 2004. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is $575 per half-year, delivered via e-mail. 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