/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/050110.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 Monday, January 10, 2005, Vol. 6, Issue 5 Headlines A R G E N T I N A AHOLD: Past Corporate Affairs Under Scrutiny CANBOT S.A.: Reorganization Concluded CRESUD: Note Holders Exercise Warrants EDEMSA: S&P Maintains Default Rating on Bonds EDITORIAL PERFIL: $25M in Bonds Remain in Default GEJAMAS S.A.: Court Rules for Liquidation SURENA PAPELES S.A.: Liquidation Reverts to Reorganization TELECOM ARGENTINA: Introducing New Fixed-Line Unit TRANSFRIGO S.R.L.: Enters Bankruptcy on Court Orders B R A Z I L CEMIG: Records 24.6% Net Profit Rise in 2004 VARIG: Scrambles to Cut Debts to Stay Afloat D O M I N I C A N R E P U B L I C EDESUR/EDENORTE: Government Revising Buyback Contract H A I T I * HAITI: Secures US$73Mln World Bank Loan Arrangement M E X I C O GRUPO DESC: Suspends SEC Reporting Obligations GRUPO TMM: Details Court's Positive VAT Decision MINERA AUTLAN: Praises Trade Modification Regulations NII HOLDINGS: Comsat to Provide Backbone Services in LatAm SATMEX: Seeks Restructuring Agreement With Creditors TV AZTECA: Fitch Comments on Recent SEC Suit TV AZTECA: CNBV Completes Probe, Enters Notification Phase TV AZTECA: Analysts Say SEC Suit Puts Shares at High Risk P E R U BCP: S&P Leaves Ratings Unchanged Following Portfolio Buy - - - - - - - - - - ================= A R G E N T I N A ================= AHOLD: Past Corporate Affairs Under Scrutiny -------------------------------------------- Ahold announced Thursday that the Enterprise Chamber of the Amsterdam Court of Appeal has ordered an inquiry into the conduct of certain actions of Ahold during the period from January 1, 1998 through December 18, 2003. The request for the inquiry was submitted in February 2004 by the Vereniging van Effectenbezitters ("VEB") and several other shareholders. The inquiry is limited to the following subjects: consolidation of joint ventures, Ahold's acquisition of its subsidiary U.S. Foodservice and Ahold's supervision on the organization and operation of internal controls of subsidiaries, including U.S. Foodservice. All other requests for inquiry made by the petitioners have been rejected by the Enterprise Chamber, including all challenges of policies pursued after February 24, 2003. Also, the request for precautionary measures, which might have interfered with present management policies, has been rejected. Peter Wakkie, member of the Ahold Executive Board and Chief Corporate Governance Counsel, commented that "Recently, two important investigations with respect to the Company have been completed. Settlements have been effected with the Dutch Public Prosecutions Department and, without a fine, with the SEC. This was primarily due to the fact that Ahold has cooperated fully in these investigations and to the major recovery measures we have taken. We will also fully co-operate with this inquiry, ordered by the Enterprise Chamber. Ahold will attempt to ensure that the inquiry will be concluded as soon as possible in the interest of its shareholders and other stakeholders." The subject of the inquiry is not to seek damages from Ahold. CANBOT S.A.: Reorganization Concluded ------------------------------------- The settlement plan proposed by Canbot S.A. for its creditors acquired the number of votes necessary for confirmation. As such, the plan has been endorsed by the court and will now be implemented by the Company. CONTACT: Canbot S.A. Rivadavia 84 - Adrogue 1846 Prov.de Buenos Aires Phone/Fax: (+5411)4214-1002/3/4 CRESUD: 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 1,121,505 warrants and an increase of 2,208,554 ordinary shares face value pesos 1 (V$N 1) each was made. As a result, the amount of shares of the Company goes from 153,508,988 to 155,717,542. The amount of warrants in circulation is 42,164,361. 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$ 0.6093 for each share face value pesos 1. Therefore US$ 1,345,671.95 entered into the Company. CONTACT: Cresud S.A.C.I.F. y A Av. Roque Saenz Pena 832 8th Fl. Buenos Aires Argentina Phone: 001-54-1-3287808 EDEMSA: S&P Maintains Default Rating on Bonds --------------------------------------------- Standard & Poor's International Ratings, Ltd. Sucursal Argentina maintained its default ratings on US$150 million bonds issued by Empresa Distribuidora de Electricidad de Mendoza S.A. (EDEMSA). The bond issue described as "Programa de emisi>n de Obligaciones Negociables simples" earned the `D' rating based on EDEMSA's financial standing as of September 30, 2004, says CNV. A `D' rating is assigned when the issuer has filed for bankruptcy or when interest or principal payments are not made on the due date, even if the applicable grace period has not expired, unless S&P believes that such payments will be made during such grace period. The bond issue is set to mature on April 13 this year. CONTACT : Empresa Distribuidora de Electricidad de Mendoza S.A. San Martin 322 (5500) Mendoza EDITORIAL PERFIL: $25M in Bonds Remain in Default ------------------------------------------------- Some US$25 million worth of corporate bonds issued by Editorial Perfil S.A. remain in default, says Argentine securities regulator Comision Nacional de Valores. Fitch Argentina Calificadora de Riesgo reaffirmed the `D(arg)' rating assigned to bonds described as "Primera serie de obligaciones Negociables." The maturity of such issue was not disclosed. The rating action is based on the Company's finances as of September 30, 2004. GEJAMAS S.A.: Court Rules for Liquidation ----------------------------------------- Court No. 4 of Mercedes' civil and commercial tribunal ordered the liquidation of Gejamas S.A. after the Company defaulted on its obligations, Infobae reveals. The pronouncement will effectively place the Company's affairs as well as its assets under the control of Mr. Jose Luis Carriquiry, the court- appointed trustee. Mr. Carriquiry will verify creditors' proofs of claims until March 4. The verified claims will serve as basis for the individual reports to be submitted in court on April 19. The submission of the general report follows on June 01. The city's Clerk No. 7 assists the court on this case that will end with the disposal of the Company's assets in favor of its creditors. CONTACT: Gejamas S.A. 12 de Octubre 2068 Bragado Mr. Jose Luis Carriquiry, Trustee Calle 40 Nro. 726 Mercedes SURENA PAPELES S.A.: Liquidation Reverts to Reorganization ---------------------------------------------------------- Surena Papeles S.A. proceeds with reorganization after Court No. 2 of Bahia Blanca's 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. Creditors of the Company have until March 15 to submit proof of their claims to the trustee for authentication. CONTACT: Surena Papeles S.A. Ramon y Cajal 4249 Bahia Blanca TELECOM ARGENTINA: Introducing New Fixed-Line Unit -------------------------------------------------- Argentine telco Telecom Argentina (NYSE: TEO) said it has created a unit exclusively oriented to the fixed-line market, reports Business News Americas. The Company named former strategy and wholesale operations director, Edmundo Poggio, as the new general director for the fixed-line unit. The new unit has the same degree of autonomy as the mobile unit Telecom Personal. Both divisions will report directly to CEO Carlos Felices. Meanwhile, Carlos Felices has been appointed as Telecom Personal's interim general director. CONTACT: TELECOM ARGENTINA S.A. Alicia Moreau de Justo 50, 10th Floor Capital Federal (1107) Republica Argentina Phone: +54 11 4968 4000 Home Page: http://www.telecom.com.ar Contacts: Alberto J. Ricciardi, Chief Financial Officer Elvira Lazzati, Finance Director Pedro Insussarry, Investor Relations Manager Phone: (5411) 4968-3626/3627 Fax: (5411) 4313-5842/3109 E-mail: inversores@intersrv.telecom.com.ar TRANSFRIGO S.R.L.: Enters Bankruptcy on Court Orders ---------------------------------------------------- Transfrigo S.R.L. will enter bankruptcy protection after Court No. 3 of Buenos Aires' civil and commercial tribunal, with the assistance of Clerk No. 5, ordered the Company's liquidation. The bankruptcy order effectively transfers control of the Company's assets to the court-appointed trustee who will supervise the liquidation proceedings. Infobae reports that the court selected Mr. Ulderico Luis Laudren as trustee. He will be verifying creditors' proofs of claims until the end of the verification phase on March 31. 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 May 12 followed by the general report that is due on June 27. CONTACT: Mr. Ulderico Luis Laudren, Trustee Libertad 293 Buenos Aires =========== B R A Z I L =========== CEMIG: Records 24.6% Net Profit Rise in 2004 -------------------------------------------- Cemig hereby advises stockholders and investors of its preliminary, unaudited, consolidated financial results for 2004: - Net profit: R$ 1.493 billion, or R$ 9.21 per thousand shares- an increase of 24.6% over the net profit of R$ 1.198 billion for 2003. - Net revenue of approximately R$ 6.749 billion. - Ebitda (net profit before interest, tax, depreciation and amortization) of R$ 2.390 billion, an increase of 33% over 2003. The following items are included in these results: - Regulatory assets arising from the recovery of an amount of R$ 342.7 million in Cofins tax not covered by the present tariff. - A capital gain of R$ 102.2 million on the sale of 40% of the total capital of Gasmig. - An adjustment (of R$ 51 million) in operational expenses, arising from the receipt of the CVA credits, included in the present tariff. These results are subject to possible changes before their final publication, following final calculations of amounts relating to the Company's operations, events subsequent to this present announcement, and subsequent validation by the Company's auditors. Total electricity sales in 2004 were approximately 35.966 GWh, 3.1% more than in 2003. The Company's capital expenditure in 2004 totaled R$ 888.9 million, a highlight being the acquisition of 100% of the shares of Rosal Energia S.A., for R$ 134 million. In a meeting on 17 December the Board of Directors approved the financial basis of the capital expenditure program for 2005, in the amount of R$ 1.2897 billion, of which R$ 564.8 million will be for expansion of generation and transmission, R$ 552.7 million for expansion of distribution, and R$ 172.2 million for investments to be made by Cemig Holding. Additionally, subject to entry of the funds, the following special projects, arising from the undertaking to universalize electricity service assumed by the Company under the concession contract, were approved: - The Luz Para Todos ("Light For All") special project, under the aegis of the federal program for universalization of electricity service, in accordance with Law 10438 of 26 April 2002, for a total of R$ 575.1 million (five hundred and five million one hundred thousand Reais), to be made possible with funds originating from the federal government (CDE and RGR), on a sinking fund basis and/or with costs subsidized in accordance with Board Decision CRCA 142/04 of 9 November 2004; - Medium and low-voltage works projects for a total of R$ 123 million (one hundred and twenty-three million Reais) to be financed with funds entirely provided by consumers. CONTACT: Cemig - Companhia Energetica AV. Barbacenda 1200 Bello Horizonte MG, 30161-970 Brazil VARIG: Scrambles to Cut Debts to Stay Afloat -------------------------------------------- Heavily indebted Brazilian carrier Varig intends to slash debts soon in order to ensure the continuity of its business, the AP reports. To do this, the Company, which has an estimated BRL6 billion debt, said it will use the proceeds of a December court decision expected to give the carrier about BRL2 billion ($1=BRL2.723) for losses from government-imposed price controls on airline ticket prices in the late 1980s and early 1990s. But the Company may have to wait a while longer to get the money, as the government has said it will appeal the decision to the Supreme Court. As such, Varig will have no other choice but to cut less profitable domestic routes. Brazilian officials have made it clear they want to make sure Varig keeps flying. The Company is Brazil's No. 1 airline, has been operating since 1927 and is a source of deep national pride. CONTACT: VARIG (Viacao Aerea Rio-Grandense, S.A.) Rua 18 de Novembro No. 800, Sao Joao 90240-040 Porto Alegre, Rio Grande do Sul, Brazil Phone: (51) 358-7039/7040 (51) 358-7010/7042 Fax: +55-51-358-7001 Home Page: www.varig.com.br/english/ Contacts: Dorival Ramos Schultz, EVP Finance and CFO E-mail: dorival.schultz@varig.com.br Investor Relations: Av. Almirante Silvio de Noronha, n 365-Bloco "B" - s/458 / Centro Rio de Janeiro, Brazil =================================== D O M I N I C A N R E P U B L I C =================================== EDESUR/EDENORTE: Government Revising Buyback Contract ----------------------------------------------------- Ruben Bichara, administrator of Dominican Republic power distribution Company EdeSur, said the government is in the process of revising the buyback contract of Edesur and fellow power distribution Company Edenorte from Spain's Union Fenosa, reports DR1 Daily News. According to him, the agreement reached by the past administration calls for the retaining of almost RD$200 million month in revenues from the better paying clients for meeting the debt authorized by the Mejia government to the otherwise collapsed power distribution companies. Meanwhile, Bichara announced that they have detected and put an end to fraudulent operations of RD$800 million carried out by EdeSur employees. ========= H A I T I ========= * HAITI: Secures US$73Mln World Bank Loan Arrangement ----------------------------------------------------- The World Bank Group's Board of Directors approved Thursday a package of $73 million in credits and grants for Haiti and endorsed a Transitional Support Strategy which projects up to $150 million in credit and grant commitments over a two-year period. The package of loans approved today includes an Economic Governance Reform Operation of $61 million and an Emergency Recovery and Disaster Management Project of $12 million from the International Development Association, the Bank's concessional window. This assistance includes $36 million available as grants and $37 million as zero-interest credits. "The chief goal of the Bank is to help the Government deliver urgently needed basic services to the Haitian people and strengthen the transparency and credibility of public institutions," said World Bank President James Wolfensohn. "Given the urgent need to support recovery efforts in the country, we plan to disburse $46 million of this assistance in the next couple of days." An estimated 76 percent of Haiti's 8 million people live in poverty and income inequality is among the highest in the world. The two-year strategy aims to restore hope by supporting the provision of basic services and creating jobs, rehabilitating areas devastated by floods in 2004, and working with communities to support local development. The strategy also seeks to restore credibility in Haiti's public institutions by strengthening economic governance, bolstering efforts to fight corruption, improve transparency, strengthen institutions, and promote inclusion and consensus on development priorities. The Bank's Transitional Support Strategy was developed in coordination with other donors, in consultation with government and civil society, and on the basis of the Interim Cooperation Framework (ICF), the Transitional Government of Haiti's two-year program supported by donors. The ICF was prepared in 2004 through a joint international effort led by the Government of Haiti with the coordination support of the World Bank, UNDP, the Inter-American Development Bank, and the European Union. The preparation of the ICF included the participation of 26 bilateral and multilateral agencies, UN agencies, civil society and the private sector. In July 2004, donors pledged over $1 billion to support the ICF, including $150 million pledged by the Bank. Clearance of Arrears On January 4, 2005, Haiti settled $52.6 million in overdue service payments to the Bank using its own reserves and a US$12.7 million grant contribution from Canada. This paved the way for the Bank to reinstate the country's rights to make withdrawals under credit and grant agreements. With the exception of special grant programs, disbursements had been suspended since January 30, 2001, due to the accumulation of overdue payments to the Bank. Economic Governance Reform Operation The $61 million Economic Governance Reform Operation aims to restore credibility in Haiti's public institutions by increasing transparency and efficiency in the use of public resources and external assistance. In particular, the operation will support reforms in budget management and financial controls, strengthen the public sector's institutional capacity in human resources management and procurement, and an anti-corruption strategy. In addition the operation will promote economic governance reforms at the sectoral level, including to strengthen a road maintenance fund, key public enterprises and public-private partnerships to increase access to health and education services. Civil society organizations and representatives from the private sector will be involved in monitoring and evaluating Government reforms supported by the operation. The $61 million IDA operation will be financed through a SDR 24.3 million (US$36.5 million) credit and a SDR 16.4 million (US$24.5 million) grant. Emergency Recovery and Disaster Management Project The $12 million Emergency Recovery and Disaster Management Project aims to rehabilitate areas of the country that were devastated by floods in 2004, strengthen the country's capacity to manage disaster risks and respond to emergencies, and reduce vulnerability of local communities while mitigating the effects of future disasters. Some 50 percent of the operation's financing would be used to help communities identify and reduce risks. A community-driven development approach would be used to implement most activities under this component and ensure local ownership, build local institutions and generate employment. The project is financed through an IDA grant. More information about the World Bank's program in Haiti is available at: http://www.worldbank.org/ht CONTACT: In Washington Ms. Alejandra Viveros Phone:(202)-473-4306 E-mail: Aviveros@worldbank.org In Port-au-Prince Ms. Maryse Calixte Phone: (509) 510-3797 E-mail: Mcalixte@worldbank.org =========== M E X I C O =========== GRUPO DESC: Suspends SEC Reporting Obligations ---------------------------------------------- Desc, S.A. de C.V. (BMV: DESC) (the Company) filed Thursday Form 15 with the Securities and Exchange Commission (the SEC) to suspend its reporting obligations under the Securities Exchange Act of 1934. As a result of the Form 15 filing, the Company's obligation to file with the SEC certain reports and forms, including annual reports on Form 20-F and current reports on Form 6-K, will immediately be suspended. This action follows the termination of the Company's ADR Depositary Facility and the delisting of the Company's American Depositary Receipts on the New York Stock Exchange. The Series B Shares will continue to be listed on the Mexican Stock Exchange and the Company will continue to meet all reporting obligations and other requirements mandated by applicable Mexican law. CONTACT: Investor Relations Ms. Marisol Vazquez Mellado Mr. Jorge Padilla Ezeta Paseo de los Tamarindos 400-B, Piso 28 Bosques de las Lomas Mexico, D.F. 05210 Phone: (5255) 52 61 80 00 Fax: (5255) 52 61 80 96 E-mail: investor.relation@desc.com.mx GRUPO TMM: Details Court's Positive VAT Decision ------------------------------------------------ Grupo TMM, S.A. (BMV: TMM A and NYSE: TMM) ("TMM") and Kansas City Southern (NYSE: KSU) ("KCS") announced that TFM, S.A. de C.V. ("TFM") was served Wednesday with the favorable decision of the Federal Appellate Court, dated November 24, 2004. The decision upholds TFM's claim that it is entitled to inflation and interest from 1997 on the value added tax ("VAT") refund it received from the Mexican Government. As previously announced, TFM received a VAT refund certificate on January 19, 2004, in the original amount of its claim (approximately 2.1 billion pesos), without any adjustment for accrued inflation or interest. The Federal Appellate Court has remanded the case to the Fiscal Court with instructions to enter a new order consistent with this decision. The notification of this decision represents another step in the process of recovering the full value of the VAT refund. This decision had been expected and was publicly announced by TMM and KCS on November 29, 2004. TMM and KCS also announced that TMM, Grupo Transportaci�n Ferroviaria Mexicana, S.A. de C.V. ("Grupo TFM"), and TFM have been served with a commercial lawsuit brought before a Mexican Federal Court by the Mexican Federal Government. KCS is also named as a defendant, but it has not yet been served. The Court refused to accept several claims asserted by the Mexican Government in the lawsuit. The Mexican Government has appealed that decision. The Court accepted for consideration the Mexican Government's request to determine whether the defendants have complied with all of the legal obligations they assumed during the process of the privatization of Ferrocarril del Noreste, S.A. de C.V. (today, TFM). TMM and KCS believe that this issue is without merit and that they have fully satisfied their legal obligations related to the privatization of TFM. Notwithstanding the ongoing litigation, TMM and KCS will continue discussions with the Mexican Government aimed at resolving the outstanding disputes between the parties over the value added tax refund and the obligation to purchase the remaining shares of TFM, in accordance with law and the applicable agreements. Headquartered in Mexico City, TMM is a Latin American multimodal transportation Company. Through its branch offices and network of subsidiary companies, TMM provides a dynamic combination of ocean and land transportation services. KCS is a transportation holding Company that has railroad investments in the United States, Mexico and Panama. Its primary holding in the United States is The Kansas City Southern Railway Company. KCS owns 51% of The Texas Mexican Railway Company, which connects The Kansas City Southern Railway Company and TFM. Headquartered in Kansas City, Missouri, KCS serves customers in the central and south central regions of the United States. KCS' rail holdings and investments are primary components of a NAFTA Railway system that links the commercial and industrial centers of the United States and Mexico. CONTACT: Grupo TMM S.A. Av. de la Cuspide # 4755 Colonia Parquer del Pedregal Tlalpan, 14010 Mexico Phone: 525-629-8866 Web site: http://www.grupotmm.com MINERA AUTLAN: Praises Trade Modification Regulations ----------------------------------------------------- Minera Autlan applauded the modifications to the foreign trade regulations made to prevent illegal imports of ferroalloys in Mexico, Comtex Business Reports. In a statement, the Company pointed out that it was very important to the sector that the government provide greater certainty and carry out better supervision of imports of ferroalloys in Mexico. Minera Autlan also noted that in the Appendices to the Fifth Resolution of Modifications to the General Regulations in Foreign Trade Matters, published in the official government gazette El Diario Oficial de la Federacion on December 24, Appendix 18 was added for manganese ferroalloys. "In the case of manganese ferroalloys, the regulation will prevent foreign competitors from importing these products into Mexico under false information to avoid import tariffs or active anti-dumping quotas", stated Autlan. The Company added that the application of Appendix 18 would be of great benefit for the transparency and legality of its market. In December, the Company laid out its plans for 2005, including its goal to satisfy the demand for manganese-ferroalloy in the local market as well as export the product to the US, Canada, Central and South America. In addition, the Company aims to "consolidate" operations, reduce energy costs by investing in energy conservation projects and to develop a business model to ensure the Company's long- term profitability. Company Director General Jose Hilario Madero Marcos is confident that Autlan's workforce and technology are capable of achieving the Company's objectives. In the second quarter of 2004, Autlan reactivated all its units and has since been operating at full capacity in both its mining and production sectors. NII HOLDINGS: Comsat to Provide Backbone Services in LatAm ---------------------------------------------------------- Comsat International, a full-service provider of voice and data communications throughout Latin America, announced Wednesday it has signed an agreement to be the backbone provider for NII Holding's recently launched International Direct Connect in Latin America. Through its robust fiber backbone and multiple regional data centers, Comsat will supply NII both long-haul and local access services in Argentina, Brazil, Peru, Mexico and the United States. Under the three-year contract, Comsat has committed to providing the capacity required to support this rapidly expanding service. International Direct Connect(TM) (IDC) enables subscribers to communicate instantly -with the touch of one button- within workgroups, and among customers, suppliers and key contacts, whether conducting business in their country or while traveling in Latin markets where the service is available. Together with the Comsat-provided backbone, IDC overcomes barriers associated with making international calls and provides a cost-effective alternative to international and local long distance dialing. "Comsat is delighted to have been chosen as a vendor for NII Holdings in Latin America. Given Nextel International's rapidly expanding presence in Latin America, and Comsat's extensive regional network, this partnership makes perfect sense," commented George Kappaz, CEO of Comsat International. "We feel very strongly that as cross-border business and regional trade continue to expand, Nextel International's Push-to-Talk service is very well positioned for continued growth. Comsat is very pleased to be a part of that expansion." About Comsat International Comsat International, Inc. provides local, national and pan- regional network services and solutions for more than 1,800 enterprise and service-provider customers over modern, integrated terrestrial and satellite network facilities in key Latin American markets. It owns domestic networks in Argentina, Brazil, Colombia, Mexico, Peru, Guatemala, Venezuela and Turkey and has two gateways interconnect points in the USA. It also provides services via terrestrial and satellite links to Bolivia, Chile, Ecuador and Uruguay. In addition, it operates over 2,000 square meters of data center and teleport collocation space throughout the region. Comsat International, Inc. is headquartered in McLean, Virginia USA. About NII Holdings NII Holdings, Inc., a publicly held Company based in Reston, Va., is a leading provider of mobile communications for business customers in Latin America. NII Holdings, Inc. has operations in Argentina, Brazil, Mexico and Peru, offering a fully integrated wireless communications tool with digital cellular service, text/numeric paging, wireless Internet access and Nextel Direct Connect(R), a digital two-way radio feature. NII Holdings, Inc. trades on the NASDAQ market under the symbol NIHD. The Company's website is http://www.nii.com. CONTACTS: Comsat International, Inc. Media Contacts: Luiz Sa, (Brasil) + 55 11 - 6844-7200 E-mail: luiz.sa@comsat.com.br URL: www.comsatintl.com Brian Brooks, +1-703-556-9500 or 1-877-554-9555 (U.S.A. only) E-mail: media@comsatinternational.com info@comsatinternational.com URL: www.comsatinternational.com PR Rs Oficina de Arte e Comunicacao/Primeira Comunicacao Fone/Fax: +55 (11) 3889-8293 Jornalista responsavel: Marcia Amazonas celular 11- 3889-8293 E-mail: sueli@rsoficinadearte.com.br SATMEX: Seeks Restructuring Agreement With Creditors ---------------------------------------------------- Satelites Mexicanos (Satmex), the ailing satellite telecommunication services provider, needs to forge an acceptable restructuring plan with creditors or face the risk of bankruptcy as early as next year, according to El Economista. The Mexican government is on its trail, taking legal action to recover its investments from the Company. The report adds that through the Transportation and Communications Secretariat (SCT), the government has proposed to restructure liabilities amounting to US$760 million. The move comes after Satmex froze interest payments to the government on December 29. To save the Company from bankruptcy, shareholders have suggested a new repayment scheme including the discharge of its US$190 debt with the government. The government, however, has reportedly rebuffed this proposal. TV AZTECA: Fitch Comments on Recent SEC Suit -------------------------------------------- The recent U.S. Securities and Exchange Commission (SEC) filing of civil fraud charges against TV Azteca S.A. de C.V. (TV Azteca) and some of its officers will likely result in litigation and the continuation of legal risks for TV Azteca over the near future, according to Fitch Ratings. Fitch has incorporated a measure of litigation risk into the ratings of TV Azteca since early 2004 after the SEC launched an investigation into several related party transactions between Mexican wireless provider Unefon, a subsidiary 46.5% owned and controlled by TV Azteca until its spin-off last year, and investment Company Codisco, co-owned by Ricardo Salinas Pliego, chairman of TV Azteca, and Moises Saba, chairman of Unefon. Litigation risk also includes several pending shareholder lawsuits. Independent of the SEC announcement and following the prepayment of all of TV Azteca's international debt securities on Dec. 23, 2004, Fitch has affirmed and withdrawn the 'B+' international scale foreign and local currency senior unsecured ratings of TV Azteca as well as the 'B+' rating of TV Azteca's $300 million 10.5% senior notes due 2007. The prepayment was funded with proceeds from a $125 million bank loan and a $175 million issuance of peso-denominated certificados bursatiles. Fitch rates the structured certificados bursatiles issuance 'AA (mex)' on the Mexican national rating scale and will continue to monitor this security. TV Azteca is the second-largest broadcasting Company in Mexico. The Company operates two national television channels, Azteca 13 and Azteca 7, through more than 300 owned and operated stations across the country. TV Azteca is controlled by holding Company Azteca Holdings, which is not rated by Fitch. CONTACT: Guido Chamorro +1-312-368-5473, Chicago Alberto Moreno +5281-8335-7239, Monterrey MEDIA RELATIONS: Brian Bertsch +1-212-908-0549, New York TV AZTECA: CNBV Completes Probe, Enters Notification Phase ---------------------------------------------------------- Mexico's banking and securities regulator, the CNBV, has completed the investigation it began in January 2004 into the actions of TV Azteca, Codisco [Investments LLC], Unefon [mobile communications Company, a joint venture between the Saba family and TV Azteca] and the leading shareholders of the Grupo Azteca on alleged violations of the Securities Market Law. Now the action has entered the notification phase, during which the alleged violators of the law will be notified and will have 10 to 15 days to defend themselves and submit evidence in their defense. According to the regulator's VP Miguel Angel Garza, a probe by the US securities commission SEC into alleged fraud on the part of TV Azteca chairman Ricardo Salinas and other TV Azteca directors and officers would not necessarily influence the CNBV judgment because the two nations' laws are different and the investigations are independent, although the regulatory agencies are cooperating closely. The SEC filed last week a civil suit against TV Azteca, Salinas and two Company directors for not revealing details of a controversial debt deal, estimated at US$218 million, involving TV Azteca sister Company Unefon. 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 TV AZTECA: Analysts Say SEC Suit Puts Shares at High Risk --------------------------------------------------------- The suit brought against TV Azteca by the US Securities and Exchange Commission (SEC) has put the Company's shares at high risk, according to analysts. Specialists representing brokerages Merrill Lynch, Scotia Inverlat and Deutsche Ixe stated that the possible sanctions, if the defendants are found guilty, will affect the TV firm's future profits and the confidence of minority investors "even more". This is the first time ever that the commission has arraigned a Mexican firm under such circumstances. Treasury Secretary Francisco Gil Diaz explained that Mexican authorities will wait and see how the case unfolds in the United States before taking a stance in Mexico. He added that laws in the United States are much more rigorous than in Mexico. ======= P E R U ======= BCP: S&P Leaves Ratings Unchanged Following Portfolio Buy --------------------------------------------------------- Standard & Poor's Rating Services said Thursday that ratings on Banco de Credito del Peru (CREDITC1.VL; BB-/Stable/B) would remain unaffected after the bank announced its agreement to acquire BankBoston N.A.'s $403 million loan portfolio in Peru. The portfolio is largely concentrated in the commercial segment and is allocated among 1,300 customers. The transaction is expected to be finalized by the end of January and will be financed with BCP's existing excess liquidity. The bank's BIS capitalization ratio will remain at comfortable levels-above 13%-following the acquisition. The transaction consolidates the bank's already significant leadership position, increasing its market share in loans to 33% from 30%. BCP is the largest bank in Peru. The institution is engaged in retail banking, asset management, private banking, and treasury and corporate banking activities directly or through subsidiaries. BCP has Peruvian new soles 23.1 billion ($6.9 billion) in assets as of September 2004, with the largest branch network nationwide. Primary Credit Analyst: Carina Lopez, Buenos Aires (54) 11-4891- 2118; carina_lopez@standardandpoors.com *********** 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. 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