/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/050107.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, January 7, 2005, Vol. 6, Issue 5 Headlines A R G E N T I N A ARGENTINE BANKING SYSTEM: Moody's Releases Annual Report ASTEC S.R.L.: Reports Submission Set CORTINAS HNOS: Initiates Bankruptcy Proceedings EASA: Fitch Maintains D(arg) Rating on $200M ONs FRIGORIFICO SAN JOSE: Verification Deadline Approaches GRANITOS ALCAZAR: Court Grants Reorganization Plea INGENIERO JORGE KOLKER: Enters Bankruptcy on Court Orders IRSA: Convertible Note Holders Exercise Warrants MAG S.A.: Court Grants Reorganization Plea METROGAS: Extends Consent Solicitation to Mar. 1 OLIVEIRA & ASOCIADOS: Liquidates Assets to Pay Debts PAMET S.A.: Gets Court OK for Reorganization PLASTICOS ARCOBALENO: Court Designates Trustee For Bankruptcy PRODUCTOS PANIFICADOS: Court Orders Liquidation SOLDIMAR S.R.L.: Initiates Bankruptcy Proceedings SPORTIVO BALNEARIA: Court Appoints Trustee for Reorganization VARTULI HNOS: Liquidates Assets to Pay Debts YACYRETA: Argentina, Paraguay Ink Accord to Complete Dam By 2008 B E R M U D A PEMBROKE B737-7003: Proceeds With Voluntary Liquidation PREMIER: Names Robin Mayor as Liquidator PROMOTIONAL INSURANCE: Sole Member Opts for Wind-Up B R A Z I L EMBRATEL: Shareholders Approve New Share Issuance C O L O M B I A COLOMBIA TELECOMUNICACIONES: Secures Approval to Get $158M Loan C O S T A R I C A ICE: Seeks Restructured Payment Plan to Pay Ericsson Debt D O M I N I C A N R E P U B L I C EDESUR: Moves to Settle Conflict With Santo Domingo Municipality J A M A I C A AIR JAMAICA: To Implement Extensive Cost-Cutting Measures M E X I C O TV AZTECA: Responds to SEC Charges P A N A M A DELTEC HOLDINGS: Up for Auction January 20 U R U G U A Y UTE: Board Yet to Decide on Combined Cycle Tender - - - - - - - - ================= A R G E N T I N A ================= ARGENTINE BANKING SYSTEM: Moody's Releases Annual Report -------------------------------------------------------- Moody's Investors Service has released its annual report on Argentina's banking industry. In the report entitled "Banking System Outlook: Argentina," Moody's explains why it has a stable outlook for Argentina's low bank ratings. Below is a summary opinion of Moody's report: "Our credit outlook for the Argentine banks continues to hinge largely on the sovereign's slow progress in rescheduling its external debt. After three years, this lack of resolution continues to burden the financial system not only due to its holdings of public sector debt, but also because of the effects that political, financial and legal ambiguities have had on the overall business climate and asset values in Argentina. This backdrop continues to weigh on the bank ratings because of the considerable impact it has on bank fundamentals and franchise value. Our global foreign currency deposit and bank financial strength ratings remain at the same low levels of Caa2 and E, respectively. Our "E" bank financial strength ratings, which are indicative of intrinsic financial strength, reflect the banks' continued weak core profitability and earnings quality, reflecting their uncertain recurring earnings, pressured asset quality, and weak economic capitalization. In addition, the banks face operational and transition risks as the system undergoes a major reconstruction. Deposit levels, though apparently more stable, remain lackluster. The Argentine banks are also still challenged by an uncertain rule of law, particularly as it concerns the right to foreclose on problem debts, as well as the never-ending debate on the "amparos", lawsuits by depositors claiming the original value of their dollar deposits. Financial margins also remain relatively volatile, resulting in part from the structural mismatch of assets and liabilities partly as a result of the asymmetric pesification and indexation of the financial system in 2002. While moderate loan growth and provisioning have helped improve asset quality, it remains fundamentally weak. This points to further credit costs down the road, especially given present high unemployment levels and still relatively weak corporate credit quality. That said, the system's overall performance improved during the first nine months of 2004, aided by more benign inflation and interest rates as well as the banks' own efforts to adjust their operations to the more difficult business climate. Loss levels declined as a result of higher securities gains and as funding costs eased. The banks also continued to tackle operating cost overages in the context of still weak revenue growth. We expect the moderate upturn in lending to continue in the near term in light of attractive rates and marketing campaigns, which should provide better coverage of costs. We remain cautiously optimistic as the banks begin to turn the corner, while they cope with a pressured business environment and a hard-to-plan-for sovereign debt problem. Mergers and consolidations, which began to pick up pace in 2004, should help to further the restructuring of the financial system." ASTEC S.R.L.: Reports Submission Set ------------------------------------ Mr. Hector Rodolfo Arzu, the trustee assigned to supervise the liquidation of Astec S.R.L., will submit the validated individual claims for court approval on March 14. These reports explain the basis for the accepted and rejected claims. He will also submit a general report on April 29. Infobae reports that Court No. 11 of Mar del Plata's civil and commercial tribunal has jurisdiction over this bankruptcy case. CONTACT: Astec S.R.L. 9 de Julio 127 Moron Mr. Hector Rodolfo Arzu, Trustee Belgrano 236 Moron CORTINAS HNOS: Initiates Bankruptcy Proceedings ----------------------------------------------- Court No. 8 of Buenos Aires' civil and commercial tribunal declared Cortinas Hnos y Cia S.R.L. "Quiebra," reports Infobae. Ms. Sara Maria Rey de Lavolpe, who has been appointed as trustee, will verify creditors' claims until March 31 and then prepare the individual reports based on the results of the verification process. The individual reports will be submitted in court on May 16 followed by the general report due on June 28. The city's Clerk No. 15 assists the court on the case that will close with the liquidation of the Company's assets to repay creditors. CONTACT: Ms. Sara Maria Rey de Lavolpe, Trustee Cerrito 1136 Buenos Aires EASA: Fitch Maintains D(arg) Rating on $200M ONs ------------------------------------------------ Fitch Argentina Calificadora de Riesgo S.A. confirmed the D(arg) rating assigned to US$200 million worth of Obligaciones Negociables ON issued by Electricidad Argentina S.A. (EASA). EASA is struggling to meet debt obligations. Local distributor Edenor, upon which EASA derives its sole income, has seen its ability to generate funds deteriorate due to the devaluation of the Argentine peso and frozen tariffs. However, Edenor is still able to make interest payments on its debt due to efficient cash flow management. Edenor bought back US$12 million worth of debt in 4Q04, while EASA has not been able to make its three final US$30.4 million capital payments for a US$91.2 million bond issue nor has it been able to pay off a US$7 million loan from Argentine bank Banco Europeo para AmＳica Latina. EASA is up to date on interest payments corresponding to these debts, Fitch said in a statment. EASA was founded in 1992 with the aim to acquire the majority share capital of Edenor S.A. (51%). Edenor owns the concession to supply electricity in the north area of Capital federal and Greater Buenos Aires for a period of 95 years. Edenor is the first electricity supplier company in Argentina with 2.27 M of clients. EASA is controlled by EDF International (100%). FRIGORIFICO SAN JOSE: Verification Deadline Approaches ------------------------------------------------------ The verification of claims for the Frigorifico San Jose S.R.L. bankruptcy will end on February 28 according to Infobae. Creditors with claims against the bankrupt company must present proof of the liabilities to Ms. Elba G. Hirigoity, the court- appointed trustee, before the deadline. Court No. 4 of Buenos Aires' civil and commercial tribunal handles the company's case with the assistance of Clerk No. 7. The bankruptcy will conclude with the liquidation of the company's assets to pay its creditors. CONTACT: Mr. Elba G. Hirigoity, Trustee Avda Cordoba 1388 Buenos Aires GRANITOS ALCAZAR: Court Grants Reorganization Plea -------------------------------------------------- Granitos Alcazar S.A., a company operating in La Rioja, continues with its reorganization on orders from Court No. 4 of the city's civil and commercial tribunal, which 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. Infobae reports that trustee Carlos Alberto Gomez closed the verification of creditors' claims on November 15 last year. Mr. Gomez is expected to submit a general report on the case on March 2. CONTACT: Granitos Alcazar S.A. Bazan y Bustos 914 La Rioja Mr. Carlos Alberto Gomez, Trustee Hipolito Irigoyen 3250 La Rioja INGENIERO JORGE KOLKER: Enters Bankruptcy on Court Orders --------------------------------------------------------- Court No. 11 of Buenos Aires' civil and commercial tribunal declared Ingeniero Jorge Kolker S.A. bankrupt after the company defaulted on its debt payments. The order effectively places the company's affairs as well as its assets under the control of court-appointed trustee Jorge Guillermo Podesta. As trustee, Mr. Podesta is tasked with verifying the authenticity of claims presented by the company's creditors. The verification phase is ongoing until March 16. Following claims verification, the trustee will submit the individual reports based on the forwarded claims for final approval by the court on April 29. A general report will also be submitted on June 13. Infobae reports that the city's Clerk No. 21 assists the court on this case that will end with the sale of the company's assets in favor of its creditors. CONTACT: Mr. Jorge Guillermo Podesta, Trustee Reconquista 336 Buenos Aires IRSA: Convertible Note Holders Exercise Warrants ------------------------------------------------ By letter dated January 03, 2005, the Company reported that on December 31, 2004 holders of Company's Convertible Notes that already had exercised their conversion right exercised their warrant rights. Hence, a reduction of 895,369 warrants and an increase of 1,642,875 ordinary shares face value pesos 1 (V$N 1) each was made. As a result, the amount of shares of the Company goes from 259,877,372 to 261,520,247. The new amount of warrants in circulation is 86,838,669. The exercised of the warrant was performed according to terms and conditions established in the prospectus of issuance. The amount of shares acquired is equal to the amount of shares into which it was converted the convertible note at a price of US$ 0.6541 for each share face value pesos 1. Therefore US$ 1,074,604.54 entered into the Company. CONTACT: IRSA Inversiones y Representaciones S.A. 1066 Phone: 541-342-7555 Bolivar 108 Buenos Aires Argentina MAG S.A.: Court Grants Reorganization Plea ------------------------------------------ Mag S.A. successfully petitioned for reorganization after Court No. 11 of Mar del Plata's civil and commercial tribunal issued a resolution opening the company's insolvency proceedings. Under insolvency protection, the company will continue to manage its assets subject to certain conditions imposed by Argentine law and the oversight of a court-appointed trustee. Infobae relates that Ms. Elsa Beatriz Palavecino will serve as trustee during the course of the reorganization. The firm will be accepting creditors' proofs of claims for verification until February 21. CONTACT: Mag S.A. Ituzaingo 5166 Mar del Plata Ms. Elsa Beatriz Palavecino, Trustee Alberti 3065 Mar del Plata METROGAS: Extends Consent Solicitation to Mar. 1 ------------------------------------------------ MetroGAS S.A. (the "Company") announced Wednesday that it is further extending its solicitation (the "APE Solicitation") from holders of its 9-7/8% Series A Notes due 2003 (the "Series A Notes"), its 7.375% Series B Notes due 2002 (the "Series B Notes") and its Floating Rate Series C Notes due 2004 (the "Series C Notes" and, together with the Series A Notes and the Series B Notes, the "Existing Notes") and its other unsecured financial indebtedness (the "Existing Bank Debt" and, together with the Existing Notes, the "Existing Debt"), subject to certain eligibility requirements, of powers of attorney authorizing the execution on behalf of the holders of its Existing Notes of, and support agreements committing holders of its Existing Bank Debt to, execute an acuerdo preventivo extrajudicial (the "APE") until 5:00 p.m., New York City time, on March 1st, 2005 (the "New Expiration Date"), unless further extended by the Company. APE Solicitation As of 5:00 p.m., New York City time, on January 4, 2005, powers of attorney and support agreements had been received with respect to approximately US$85,203,900 principal amount of Existing Debt. The APE Solicitation will remain in all respects subject to all terms and conditions described in the Company's Solicitation Statement dated November 7, 2003. This press release is not an offer in any jurisdiction, including the United States and Italy, of the rights or the interests in the ape arising from the execution of the ape or any of the securities that may be issued if the ape is approved by the reviewing court. Neither the rights nor the interests in the ape arising from the execution of the ape nor any of the securities that may be issued if the ape is approved by the reviewing court may be sold (a) in the united states absent registration or an exemption from registration under the united states securities act of 1933, as amended (the "securities act"), or (b) in any other jurisdiction in which such sale is prohibited. The company has not registered and will not register under the securities act the rights or the interests in the ape arising from the execution of the ape or any of the securities that may be issued if the ape is approved by the reviewing court. The ape solicitation is not being and will not be made to holders of existing debt located in Italy and will be made to them, if at all, at a later date and in full compliance with Italian laws and regulations. The Settlement Agent for the APE Solicitation is JPMorgan Chase Bank and its telephone and fax numbers are (212) 623-5136 and (212) 623-6216, respectively. Any holder wishing to receive a copy of the Solicitation Statement and/or ancillary documents should contact: J.P. Morgan Securities Inc. Phone: 1-877-217-2484 in the United States; or JPMorgan Chase Bank Buenos Aires Phone: 54-11-4348-3475/4325-8046 in Argentina. OLIVEIRA & ASOCIADOS: Liquidates Assets to Pay Debts ---------------------------------------------------- D.V.D. de Oliveira & Asociados S.A. will begin liquidating its assets following the bankruptcy pronouncement issued by Court No. 15 of the Buenos Aires' civil and commercial tribunal, Infobae reports. The bankruptcy ruling places the company under the supervision of court-appointed trustee Hector Jorge Garcia. The trustee will verify creditors' proofs of claims until March 28. CONTACT: Mr. Hector Jorge Garcia, Trustee Montevideo 734 Buenos Aires PAMET S.A.: Gets Court OK for Reorganization -------------------------------------------- Pamet S.A. begins reorganization following the approval of its petition by Court No. 1 of Buenos Aires' civil and commercial tribunal. The opening of the reorganization will allow the company to negotiate a settlement with its creditors in order to avoid a straight liquidation. Ms. Renee Alba Montuega will oversee the proceedings as the court-appointed trustee. The verification of creditors claims closed on November 26 last year. The trustee is 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 March 22. 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 September 9. CONTACT: Pamet S.A. Domecq Garcia 555 Puerto Madryn (Chubut) Ms. Renee Alba Montuega, Trustee Marcos A Zar 885 Puerto Madryn (Chubut) PLASTICOS ARCOBALENO: Court Designates Trustee For Bankruptcy ------------------------------------------------------------- Buenos Aires accounting firm "Estudio Moyano, Guelman y Asociados" was assigned trustee for the bankruptcy of local company Plasticos Arcobaleno S.A., relates Infobae. The trustee will verify creditors' claims until March 8, the source adds. After that, the firm will prepare the individual reports, which are to be submitted in court on April 21. The general report submission should follow on May 5. CONTACT: "Estudio Moyano, Guelman y Asociados" Riobamba 1234 Buenos Aires PRODUCTOS PANIFICADOS: Court Orders Liquidation ----------------------------------------------- Productos Panificados S.A. moves to wind-up its operations following the bankruptcy pronouncement issued by the civil and commercial tribunal of Buenos Aires. The declaration effectively prohibits the company from administering its assets, control of which will be transferred to a court-appointed trustee. Infobae reports that the court appointed Ms. Mabel Alba Herrera as trustee. She will be reviewing creditors' proofs of claims until February 15. The verified claims will be the basis for the individual reports to be presented for court approval on April 1. Afterwards, the trustee will also submit a general report on May 13. CONTACT: Productos Panificados S.A. Santander 5581 Buenos Aires Ms. Mabel Alba Herrera, Trustee Rodriguez Pena 694 Buenos Aires SOLDIMAR S.R.L.: Initiates Bankruptcy Proceedings ------------------------------------------------- The civil and commercial tribunal of Buenos Aires had declared local company Soldimar S.R.L. "Quiebra," reports Infobae. Mr. Roberto Alfredo Mazzarella, who has been appointed as trustee, will verify creditors' claims until April 15 and then prepare the individual reports based on the results of the verification process. The individual reports will then be submitted in court on May 30 followed by the general report on July 12. CONTACT: Mr. Roberto Alfredo Mazzarella, Trustee Laprida 1411 Buenos Aires SPORTIVO BALNEARIA: Court Appoints Trustee for Reorganization ------------------------------------------------------------- Asociacion Mutual Entre Asociados y Adherentes Del Club Sportivo Balnearia, a company operating in San Francisco, Cordoba, is ready to start its reorganization after Court No. 5 of the city's civil and commercial tribunal appointed Mr. Horacio Ricardo Angel Favot to supervise the proceedings as trustee. Infobae states that the trustee will verify creditors claims until February 25. Afterwards, the trustee will present these claims as individual reports for final review by the court on April 15. Mr. Favot will also provide the court with a general report pertaining to the reorganization on June 1. The court has scheduled the informative assembly on November 3. CONTACT: Asociacion Mutual Entre Asociados y Adherentes Del Club Sportivo Balnearia Independencia 200 Balnearia Cordoba Mr. Horacio Ricardo Angel Favot, Trustee Libertad 1325 San Francisco Cordoba VARTULI HNOS: Liquidates Assets to Pay Debts -------------------------------------------- Vartuli Hnos S.A. of Buenos Aires will begin liquidating its assets following the liquidation pronouncement issued by the city's civil and commercial tribunal. The bankruptcy ruling places the company under the supervision of court-appointed trustee Anibal Diego Carrillo. The trustee will verify creditors' proofs of claims until March 29. The validated claims will be presented in court as individual reports on May 10. The trustee will also submit a general report, containing a summary of the company's financial status as well as relevant events pertaining to the bankruptcy, on June 22. The bankruptcy process will end with the disposal company assets in favor of its creditors. CONTACT: Mr. Anibal Diego Carrillo, Trustee Juncal 615 Buenos Aires YACYRETA: Argentina, Paraguay Ink Accord to Complete Dam By 2008 ---------------------------------------------------------------- Argentina's planning minister Julio de Vido and Paraguay's public works minister Jose Alderete reached an agreement Wednesday to raise water levels and finally complete work on the bi-national Yacyreta dam project by 2008. "It is a firm commitment by both countries to conclude the project with total transparency," de Vido said. The agreement, under which the project known as the "Plan de Terminacion de Obras" will be carried out, calls for US$560 million coming from Argentine coffers and an additional US$90 million from the Inter-American Development Bank. The Entidad Binacional Yacyreta (EBY) joint venture that administers Yacyreta will also manage the expansion project, which lies on the border of Argentina and Paraguay. Work will start this year to raise the level of the dam to 83m from its current level of 76m, de Vido said. The project will be completed by 2008, increasing the generation capacity by 58% to some 19,000GWh a year. The Yacyreta project has been plagued by troubles since it was launched in the early 1970s. Massively over budget and years behind schedule, the Yacyreta project has, for some critics, become a poster child of mismanagement and corruption. ============= B E R M U D A ============= PEMBROKE B737-7003: Proceeds With Voluntary Liquidation ------------------------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 And IN THE MATTER OF Pembroke B737-7003 The Sole Member of Pembroke B737-7003, acting by written consent without a meeting on December 30, 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 Pembroke B737-7003, which is being voluntarily wound up, are required, on or before January 19, 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 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 Sole Member of Pembroke B737- 7003 will be held at the offices of Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda on 9th February 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 PREMIER: Names Robin Mayor as Liquidator ---------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 And IN THE MATTER OF Premier Marketing Ltd. The Sole Member of Premier Marketing Ltd., acting by written consent without a meeting on December 30, 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 Premier Marketing Ltd., which is being voluntarily wound up, are required, on or before January 19, 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 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 Sole Member of Premier Marketing Ltd. will be held at the offices of Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda on February 9, 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, Trustee Clarendon House, Church Street Hamilton, Bermuda PROMOTIONAL INSURANCE: Sole Member Opts for Wind-Up --------------------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 And IN THE MATTER OF Promotional Insurance Limited The Sole Member of Promotional Insurance Limited, acting by written consent without a meeting on December 30, 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 Promotional Insurance Limited, which is being voluntarily wound up, are required, on or before January 19, 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 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 Sole Member of Promotional Insurance Limited will be held at the offices of Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda on February 9, 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 =========== B R A Z I L =========== EMBRATEL: Shareholders Approve New Share Issuance ------------------------------------------------- Brazilian long distance carrier Embratel Participacoes SA obtained unanimous approval from its shareholders on its plan to issue BRL1.9 billion (US$700mn) worth of new shares, reports Dow Jones Newswires. The approval came at a meeting Wednesday, where shareholders representing 90% of Embratel's voting capital were present. An issue price wasn't set at the shareholder meeting. Analysts have said investors are nervous about a dilution from the issuance of new shares, as well as the potential issue price, with estimates varying between BRL5 and BRL9.50 per lot of 1,000 shares. 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 =============== C O L O M B I A =============== COLOMBIA TELECOMUNICACIONES: Secures Approval to Get $158M Loan --------------------------------------------------------------- State-owned telco Colombia Telecomunicaciones (Telecom) gained authorization from the finance ministry to secure a loan of COP370 billion (US$158 million) to pay off debt held with international providers, reports Business News Americas. The loan, which will be provided by BBVA Colombia, Banco de Credito, Banco Davivienda, Megabanco, Granahorrar and Bancafe, is part of Telecom's total debt of up to COP900 billion authorized by the Colombian government in April 2004. The loan matures in nine years and includes a grace period of three years. Telecom recently signed an agreement to pay off US$68.5 million of debt with German telecoms vendor Siemens. Siemens tried to negotiate for US$212 million owed by Telecom for its part in fixed line build-out contracts signed in 1995-1997. Upon payment of the US$68.5 million, the Colombian operator would have full ownership of 162,000 lines installed by Siemens, thus saving nearly US$144 million. Similar agreements were signed with Canada's Nortel Networks and Sweden's Ericsson. Telecom expects to close remaining agreements with NEC, Itochu and Alcatel during this year. Colombia Telecomunicaciones was created by the government from the ashes of the defunct Telecom, which it liquidated due to unsustainable pension and wage bills, and pressures caused by lawsuits. =================== C O S T A R I C A =================== ICE: Seeks Restructured Payment Plan to Pay Ericsson Debt --------------------------------------------------------- Costa Rica's electricity and telecoms monopoly ICE is seeking a restructured payment plan for a new GSM network. According to Business News Americas, ICE struck an agreement with Swedish equipment firm Ericsson for 600,000 GSM mobile lines, which it plans to have installed by mid-2005. The agreement requires ICE to pay Ericsson some US$24.8 million for the network the first year. However, ICE's revenues will not be high enough the first year to pay the debt owed to Ericsson. "That's why we're asking for a restructuring of the payment plan," ICE director Pablo Urena was reported as saying. ICE analysts developed two revenue scenarios based on the expected number of new mobile phone users that will sign up in the first year, neither of which will be sufficient for ICE to cover its payment to Ericsson. =================================== D O M I N I C A N R E P U B L I C =================================== EDESUR: Moves to Settle Conflict With Santo Domingo Municipality ---------------------------------------------------------------- The municipal officials of Santo Domingo and the electricity distributor EdeSur have taken positive steps to settle their dispute, according to DR1 Daily News. At a recent meeting, Mayor Roberto Salcedo and EdeSur administrator Ruben Bichara agreed to let their legal people work out an agreement that will cover the payment due to EdeSur for public lighting and the 3% of gross income that the electricity distributor owes the municipality under the Electricity Law 125-01. ============= J A M A I C A ============= AIR JAMAICA: To Implement Extensive Cost-Cutting Measures --------------------------------------------------------- The new management of Air Jamaica announced Wednesday that a massive restructuring is about to be implemented to save the embattled airline. "Air Jamaica is in deep trouble and requires significant adjustments and changes and significant cost restructuring for it to survive," said Dr. Vincent Lawrence, the new government- appointed executive chairman of Air Jamaica. According to Dr. Lawrence, the restructuring will include a big salary cut from the executive staff and the slashing of unprofitable routes. Members of the airline's executive staff, numbering about 50 out of a staff complement of 3,000, have agreed to an average salary reduction of 18%, resulting in annual savings of US$1 million (J$62 million), Dr. Lawrence disclosed. Unprofitable routes targeted for slashing are Antigua, Manchester/England and London/Havana. Other major aspects of the restructuring program include fuel management and improved maintenance and engineering. Since retaking Air Jamaica on December 23 last year, the Government has been able to secure financing - US$35 million (J$2.1 billion), including US$5 million (J$310 million) of the US$20 million (J$1.2 billion) committed by Gordon 'Butch' Stewart, the former chairman. Dr. Lawrence revealed that the management team had started to look at ways to restructure large amounts of the airline's liabilities, including having meetings with creditors while seeking long-term financing for the airline. Air Jamaica is expected to post losses of US$90 million for 2004. CONTACT: Corporate Communications Tel: 876-922-3460 ext 4060-5 URL: www.airjamaica.com =========== M E X I C O =========== TV AZTECA: Responds to SEC Charges ---------------------------------- TV Azteca, S.A. de C.V. (NYSE: TZA; BMV:TVAZTCA; Latibex: XTZA), one of the two largest producers of Spanish language television programming in the world, announced that the U.S. Securities and Exchange Commission (the "SEC") issued a press release informing that it filed a civil action Tuesday against the company, its parent company, Ricardo B. Salinas, founder, chairman and majority shareholder, and Pedro Padilla Longoria, board member and former CEO, in a U.S. Federal Court. The SEC alleges violations of U.S. federal securities laws in connection with public disclosures concerning the 2003 transactions among Unefon, Nortel and Codisco, which have been discussed in detail in the company's most recent annual report on Form 20-F. For the past twelve months TV Azteca has been providing information and cooperating with the SEC on inquiries regarding the transactions, and has received several settlement offers that the company considered unacceptable. "Principles are not negotiable. We could have settled for money, but this is not about money, it is about standing up for what you believe to be right. The transactions discussed in the SEC press release benefited Unefon, TV Azteca and their shareholders and I stand behind them," said Ricardo B. Salinas. "The SEC accusations are false, in bad faith and discriminatory. We will prevail because we acted correctly." "It's absurd for the SEC to use a Mexican company and Mexican citizens to try to impose U.S. regulations in an extraterritorial manner, unilaterally ignoring international laws and the Mexican legal framework. In my view they are trying to politically compensate their deficiencies in supervising U.S. companies in the past," added Mr. Salinas. "It is these irresponsible and arbitrary SEC actions, not the Unefon debt transactions, which are adversely affecting both minority and majority shareholders." TV Azteca is certain that its officers and directors acted in full compliance with the applicable legal framework and are determined to continue to do so, and to firmly defend what we believe to be correct. The company noted that today's SEC action could result in a prolonged andexpensive legal process. Should there be a favorable decision the company will seek reimbursement for all damages arising from the legal action. Company Profile 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. CONTACT: Investor Relations Mr. Bruno Rangel Phone: 5255 1720 9167 E-mail: jrangelk@tvazteca.com.mx Mr. Omar Avila Phone: 5255 1720 0041 E-mail: oavila@tvazteca.com.mx Media Relations: Mr. Tristan Canales Phone: 5255 1720 5786 E-mail: tcanales@tvazteca.com.mx Mr. Daniel McCosh Phone: 5255 1720 0059 E-mail: dmccosh@tvazteca.com.mx =========== P A N A M A =========== DELTEC HOLDINGS: Up for Auction January 20 ------------------------------------------ NOTICE OF PUBLIC FORECLOSURE SALE AT AUCTION Notice is hereby given that, pursuant to: (1) A Judgment entered by the U.S. District Court (SDNY), (2) Section 9-610 of the New York State Uniform Commercial Code, (3) the Loan and Security Agreement dated as of November 30, 2001 ("Loan Agreement") between Deltec Holdings, Inc. ("Debtor") and Cardell Financial Corporation ("Secured Party"); and (4) the Non-Recourse Stock Pledge Agreement dated as of November 30, 2001 ("Pledge Agreement") among certain shareholders of Debtor, and Secured Party, up to 50(but not less than 25) shares (the "shares") of the common stock of Deltec Holdings, Inc., a Panama corporation with its principal properties located at in the city of Sao Paulo, State of Sao Paulo, Brazil, will be sold at a PUBLIC FORECLOSURE SALE ("Auction") on January 20, 2005, at 10:00 a.m. New York City time at the offices of Anderson, Kill & Olick, P.C., located at 1251 Avenue of the Americas, New York, N.Y. 10020, by Secured Party or its representatives. The Shares were pledged to Secured party by certain shareholders of Debtor under the Pledge Agreement as security for a certain promissory note dated as of November 30, 2001 ("the Note") issued by Debtor under the Loan Agreement. Debtor is in default under the Note and the Loan Agreement. The total amount of principal and interest due under the Note as of October 31, 2004. (Not including certain costs and expenses) is approximately US$9.7 million dollars. The shares represent approximately 44% of the issued and outstanding capital stock of Debtor. The shares will be sold to the highest qualified bidder at the Auction. In order to participate in the bidding, the bidder must tender a written unconditional all cash bid and a 15% cash deposit prior to the Auction. The Minimum Bid for all 50 shares shall be US$2 million and Minimum Deposit for any bid (including any bid for less than all 50 shares (but not less than 25 shares) shall be US$1 million plus US$40,000 per Share in excess of 25 shares) The Secured Party and its representatives make no representations as to the financial condition of the issuer of the Shares, or its subsidiaries. A bidder will be required to provide evidence to the satisfaction of the Secured Party that (1) such bidder is qualified to purchase securities in a transaction exempt from registration under the Act (as defined below) and any applicable State Acts (as defined below) and is purchasing the shares for its own account; or (2) that the Offer (as defined below) and sale of the Shares is not subject to the jurisdiction of the Act or the Sate Acts. The Successful qualified bidder at the Auction must pay the balance of the purchase price for the Shares (in excess of the deposit) in cash in US dollars, in immediately available funds, as soon as possible (and no later than 2 business days) after the Auction. Failure to pay the balance will result in forfeiture of the deposit, and the shares may be sold to another party. The secured party may credit bid for the shares at the Auction. Deposits will be returned to unsuccessful bidders after the Auction, without interest. The certificates representing the shares bear a legend indicating that they have not been registered under the Act or the State Acts, and any certificates issued to a successful qualified bidder will bear a similar legend. The sale may be adjourned from time to time, and notice of any adjourned sale date will be given only at the time of the scheduled sale an to those who are represented at the sale. For more information, Additional terms of sale (including qualifications of bidders) and purchase agreement ("offer") please contact: John Y. Freeman, Broke, Houghton & Company, Inc., 444 Madison Avenue, 25th floor, New York, NY 10022, (212) 329-1680; Fax: (212) 753-7730; e-mail: jfreeman@brookshoughton.com The announcement is neither an offer to sell nor a solicitation of an offer to sell nor a solicitation of an offer to purchase the Shares (as defined above). The Offer (as defined above) will only be made at the Auction to a qualified bidder pursuant to an exemption from registration under the U.S. Securities Act of 1933 ("Act") and any applicable state or securities laws ("State Acts"). The Offer is not being made nor will bids be accepted from or on behalf of persons in any jurisdiction in which the making of the offer or the acceptance thereof would not be in compliance with the laws of such jurisdiction. ============= U R U G U A Y ============= UTE: Board Yet to Decide on Combined Cycle Tender ------------------------------------------------- Uruguay's state power company UTE is awaiting the decision of the board whether to continue with a tender for its 350-400MW combined cycle thermoelectric project, Business News Americas reports, citing UTE spokesperson Graciela Santero. The board met in mid-December to discuss the options but no decision was made, Santero said. UTE asked the four bidders on the turnkey contract in November 2004 to revise their offers under a direct contract scheme instead of a public tender. Two of the bidders, Alstom and Siemens Westinghouse, did not comply with the mechanical requirements related to the turbines and the other two, Fiat Engineering do Brasil and General Electric, failed to present complete documentation. General Electric says it complied with the original bidding rules, so it is not fair that other bidders that did not comply with all the rules should have a chance to adjust their economic bids. *********** 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 2005. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is $575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *