/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/050225.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, February 25, 2005, Vol. 6, Issue 40 Headlines A R G E N T I N A DULCES DEL PLATA: Court Grants Reorganization Plea FARMACIA CHILE: Judge Approves Bankruptcy INVESTIGACIONES DUQUE: Case Reverts to Reorganization JIF S.A.: Verification Deadline Fixed MASTELLONE HERMANOS: Reveals $10M Investment Plan MEGASPORT S.A.: Verification Ends April 13 NEGOCIOS INTERNACIONALES: Reports Submission Set OBRYMSA S.A.: Begins Liquidation on Court Orders ODISSEY S.R.L.: Liquidates Assets to Pay Debts PETROBRAS ENERGIA: To Prepay Capital on Series K Bonds Due `07 RABBIONE SU TRANSPORTE: Verification Deadline Approaches ROAR S.A.: Enters Bankruptcy on Court Orders SILVER AR S.A.: Liquidates Assets to Pay Debts TATEDETUTI S.A.: Court Rules for Liquidation TELECOM PERSONAL: Awards Nokia GSM/Edge Network Deal * ARGENTINA: To Reveal Results of Debt Swap Next Week B E R M U D A JACANA FUND: R. Craig Christensen Appointed Liquidator LORAL SPACE: Amicably Resolves Differences With Chinasat LORAL SPACE: dbsxmedia to Acquire BTV Product Line LORAL SPACE: Secures Commission to Build PanAmSat Satellite LORAL SPACE: Beats DirecTV8 Satellite Deadline by Two Months MENTOR INSURANCE: Court Releases Ernst & Young From Proceedings B R A Z I L AES ELETROPAULO: Earmarks BRL536.9 Mln for Brazilian Investments BANCO ITAU: CEO Dispels Rumors About Future Sale BANCO VOTORANTIM: Net Profit Soars 18% in 2004 EMBRATEL: Board Ratifies Capital Increase EMBRATEL: Provides Telephone Services To Sao Paulo Govt Office KLABIN: S&P Releases Report on Ratings LIGHT SERVICOS: Parent Not Mulling Market Pullout TAM/VARIG: CADE Backs Plan to End Code-Sharing Agreement J A M A I C A KAISER ALUMINUM: US Court Approves Disclosure Statements P U E R T O R I C O DORAL FINANCIAL: Denies Involvement in Regulatory Investigation U R U G U A Y * URUGUAY: IMF Approves $213.8M Disbursement V E N E Z U E L A PDVSA: Energy Commission to Probe Into Recent Firings - - - - - - - - ================= A R G E N T I N A ================= DULCES DEL PLATA: Court Grants Reorganization Plea -------------------------------------------------- Dulces del Plata S.A.I. y C., a Company operating in Buenos Aires, begins reorganization proceedings after Court No. 4 of the city's civil and commercial tribunal granted its petition for "concurso preventivo". During the reorganization, the Company will be able to negotiate a settlement 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. Daniel E. Altman, the court-appointed trustee. Creditors with claims against the Company must present proofs of the Company's indebtedness to the trustee by April 7. These claims will constitute the individual reports to be submitted in court on May 19. The court also requires the trustee to present an audit of the Company's accounting and business records through a general report due on July 4. The Company's informative assembly with its creditors is scheduled on October 26. Clerk No. 7 assists the court on this case. CONTACT: Mr. Daniel E. Altman, Trustee Parana 774 Buenos Aires FARMACIA CHILE: Judge Approves Bankruptcy ----------------------------------------- Farmacia Chile S.R.L. was declared bankrupt after Court No. 3 of Mendoza's civil and commercial tribunal endorsed a petition for the Company's liquidation, says Infobae. The court assigned Mr. Ricardo Jose Peron to supervise the liquidation process as trustee. CONTACT: Farmacia Chile S.R.L. Las Heras 501 Mendoza Mr. Ricardo Jose Peron, Trustee Espana 713 Mendoza INVESTIGACIONES DUQUE: Case Reverts to Reorganization ----------------------------------------------------- Investigaciones Duque S.A. proceeds with reorganization after Court No. 5 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. Mr. Guillermo Torres, the court-appointed trustee, will verify creditors' proofs of claims until April 15. Creditors with unverified claims cannot participate in the Company's settlement plan. Further, individual reports are up for court submission on May 30. The general report submission follows on July 12. Clerk No. 9 assists the court on this case. CONTACT: Mr. Guillermo Torres, Trustee Avda Corrientes 922 Buenos Aires JIF S.A.: Verification Deadline Fixed ------------------------------------- The verification of creditors' claims for the Jif S.A. insolvency case is set to end on April 14, states Infobae. Mr. Miguel Adolfo Kupchik, the court-appointed trustee tasked with examining the claims, will submit the validation results as individual reports on May 27. He will also present a general report in court on July 11. On December 22, the Company's creditors will vote on the settlement proposal prepared by the Company. The Company's reorganization is under the jurisdiction of Court No. 10 of Buenos Aires' civil and commercial tribunal. The city's Clerk No. 20 assists the court with the proceedings. CONTACT: Mr. Miguel Adolfo Kupchik Adolfo Alsina 1360 Buenos Aires MASTELLONE HERMANOS: Reveals $10M Investment Plan ------------------------------------------------- Just a few months after it completed a US$329-million debt restructuring, Argentine dairy producer Mastellone Hermanos announced plans to invest US$10 million, which would enable it to double its actual production of milk powder. With these investments, Mastellone, owner of La Serenisima, the leading dairy milk producer will be able to produce 5 million of liters of milk per day in 2007. In the meantime, the Company, headed by Mr. Pascual Mastellone, has shown a good recovery on the volume of its sales. MEGASPORT S.A.: Verification Ends April 13 ------------------------------------------ The verification of creditors' claims for the Megasport S.A. insolvency proceedings will continue until April 13 after Court No. 7 of Buenos Aires' civil and commercial tribunal commuted the Company's ongoing liquidation into reorganization. Infobae reports that Mr. Juan Ignacio Estevez oversees this case as the court appointed trustee. The city's Clerk No. 13 assists the court with the proceedings. CONTACT: Mr. Juan Ignacio Estevez, Trustee Uruguay 750 Buenos Aires NEGOCIOS INTERNACIONALES: Reports Submission Set ------------------------------------------------ Mr. Ruben Eduardo Gonzalez, the trustee assigned to supervise the reorganization of Negocios Internacionales Sur de America S.A., will submit validated individual claims for court approval on March 9. These reports explain the basis for the accepted and rejected claims. Infobae reports that Mr. Gonzalez will also submit a general report of the case on July 7. The Company's creditors are scheduled to approve a completed settlement plan during the informative assembly on November 11. Court No. 2 of Mendoza's civil and commercial tribunal has jurisdiction over this case. CONTACT: Mr. Ruben Eduardo Gonzalez, Trustee Monsenor Zabalza 30 Mendoza OBRYMSA S.A.: Begins Liquidation on Court Orders ------------------------------------------------ Obrymsa S.A. of Buenos Aires will begin liquidating its assets after Court No. 11 of the city's civil and commercial tribunal declared the Company bankrupt. Infobae reveals that the bankruptcy process will commence under the supervision of court- appointed trustee Rosa Isabel Santos. Ms. Santos will review claims forwarded by the Company's creditors until April 13. After claims verification, the trustee will submit the individual reports for court approval on May 26. The general report submission will follow on July 7. Clerk No. 22 assists the court on this case. CONTACT: Ms. Rosa Isabel Santos, Trustee Avda Corrientes 6031 Buenos Aires ODISSEY S.R.L.: Liquidates Assets to Pay Debts ---------------------------------------------- Odissey S.R.L. will begin liquidating its assets following the bankruptcy pronouncement issued by Court No. 3 of Buenos Aires' civil and commercial tribunal, Infobae reports. The ruling places the Company under the supervision of court- appointed trustee Maria Cenatiempo. Ms. Cenatiempo will verify creditors' proofs of claims until March 28. The validated claims will be presented in court as individual reports on May 9. 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 of the Company's assets in favor of its creditors. CONTACT: Ms. Maria Cenatiempo, Trustee Avda de Mayo 1365 Buenos Aires PETROBRAS ENERGIA: To Prepay Capital on Series K Bonds Due `07 -------------------------------------------------------------- Petrobras Energia SA (Buenos Aires: PESA) informed the Buenos Aires stock market of its intent to prepay US$90.9 million of capital on its US$286 million series K bonds that expire 2007, relates Business News Americas. The Company, a unit of Brazil's federal energy producer Petrobras (NYSE: PBR), also said it intends to pay interest corresponding to the period January 4-February 25. The bonds pay annual interest at Libor plus 4%. In a separate statement, Petrobras Energia also said it plans to prepay part of the capital on its US$182 million class M bonds due 2007. The Company, however, didn't say how much of the capital it will pay or when. CONTACT: Petrobras Energia Participaciones SA Avenida de Mayo 701, Piso 16 Buenos Aires, Phone: (212) 657-5100 Fax: (212) 825-5674 Web Site: http://www.petrobrasenergia.com RABBIONE SU TRANSPORTE: Verification Deadline Approaches -------------------------------------------------------- The verification of claims for the Rabbione Su Transporte S.A. bankruptcy case will end on April 29 according to Infobae. Creditors with claims against the bankrupt Company must present proof of the liabilities to Mr. Jorge Raul Mencia, the court- appointed trustee, by the said deadline. Court No. 1 of Buenos Aires' civil and commercial tribunal handles the Company's case with the assistance of Clerk No. 1. The bankruptcy will conclude with the liquidation of the Company's assets to pay its creditors. CONTACT: Mr. Jorge Raul Mencia, Trustee Avda Roque Saenz Pena 615 Buenos Aires ROAR S.A.: Enters Bankruptcy on Court Orders -------------------------------------------- Roar S.A. enters bankruptcy protection after Court No. 11 of Buenos Aires' civil and commercial tribunal, with the assistance of Clerk No. 22, 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. Silvio Mordkowicz as trustee. He will be verifying creditors' proofs of claims until the end of the verification phase on April 5. 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 17 followed by the general report that is due on June 30. CONTACT: Mr. Silvio Mordkowicz, Trustee Vicente Lopez 1739 Buenos Aires SILVER AR S.A.: Liquidates Assets to Pay Debts ---------------------------------------------- Buenos Aires-based Silver Ar S.A will begin liquidating its assets following the bankruptcy pronouncement issued by Court No. 21 of the city's civil and commercial tribunal. The ruling places the Company under the supervision of court- appointed trustee Fidel Augusto Pandolfi. The trustee will verify creditors' proofs of claims until March 31. The bankruptcy process will end with the disposal Company assets in favor of its creditors. Clerk No. 42 assists the court on this case. CONTACT: Silver Ar S.A. Avda Cordoba 1351 Buenos Aires Mr. Fidel Augusto Pandolfi, Trustee Capdevilla 3169 Buenos Aires TATEDETUTI S.A.: Court Rules for Liquidation -------------------------------------------- Court No. 15 of Buenos Aires' civil and commercial tribunal ordered the liquidation of Tatedetuti S.A. after the Company defaulted on its obligations, Infobae reveals. The liquidation pronouncement will effectively place the Company's affairs as well as its assets under the control of local accounting firm "Estudio Estevez, Musante." As trustee, the firm will verify creditors' proofs of claims until May 2. The city's Clerk No. 30 assists the court on this case that will end with the disposal of the Company's assets in favor of its creditors. CONTACT: "Estudio Estevez, Musante" Trustee Sarmiento 1426 Buenos Aires TELECOM PERSONAL: Awards Nokia GSM/Edge Network Deal ---------------------------------------------------- Telecom Personal has selected Nokia to supply a GSM/EDGE radio network to cover nine provinces in northern Argentina. Telecom Personal is a new network customer for Nokia. The new network is already in service. Under the agreement, Nokia has deployed EDGE-capable base stations and related equipment in the provinces of La Rioja, Catamarca, Formosa, Misiones, Santa Fe, Chaco, Corrientes, Entre Rios, and Cordoba. In addition, Nokia has provided operations support system (OSS), implementation services, base station optimization, spare parts, and project management. The services will be provided using Nokia NetActa, the only fully featured, multi-vendor, multi-technology operations support system on a single platform. * ARGENTINA: To Reveal Results of Debt Swap Next Week ----------------------------------------------------- Argentina's economy ministry said Tuesday that the government will announce the final results of its historic debt swap on March 2 or 3, reports Reuters. As of Feb. 18, creditors holding US$41 billion worth of Argentine bonds had accepted its restructuring offer. Analysts expect investors to sign up in droves just before the deadline on Feb. 25. Analyst Carola Sandy at CSFB in New York said the dollar figure could indicate acceptance stood at around 41 percent, in line with expectations. Argentina is offering creditors around the world up to US$41.8 billion in new debt in exchange for US$81.8 billion in debt principal on which it defaulted in early 2002, or US$102.6 billion including past due interest. ============= B E R M U D A ============= JACANA FUND: R. Craig Christensen Appointed Liquidator ------------------------------------------------------ IN THE MATTER OF THE COMPANIES ACT 1981 And IN THE MATTER OF Jacana Fund Ltd. At a special general meeting of the Members of Jacana Fund Ltd., duly convened and held at the registered office at Century House, 16 Par-la-Ville Road, Hamilton, Bermuda, on February 18, 2005, the following resolutions were passed: (1) that the Company be wound up voluntarily, pursuant to the provisions of the Companies Act 1981; and (2) that R. Craig Christensen 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 Jacana Fund Ltd., which is being voluntarily wound up, are required, on or before the 18th day of March 2005 to send their names and addresses and the particulars of their debts or claims to the Liquidator of the Company and, if so required by notice in writing from the said Liquidator, to come in and prove their debts or claims at such time and place as shall be specified in such notice or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. - A final general meeting of the Members of Jacana Fund Ltd. will be held at the offices of Arthur Morris, Christensen & Co., Century House, 16 Par-la-Ville Road, Hamilton, Bermuda on March 31, 2005 at 10.00 a.m. for the following purposes: (1) receiving an account showing the manner in which the winding-up of the Company has been conducted and its property disposed of and hearing any explanation that may be given by the Liquidator; (2) by resolution determining the manner in which the books, accounts and documents of the Company and of the Liquidator shall be disposed of; and (3) by resolution dissolving of the Company. CONTACT: R. Craig Christensen, Liquidator Century House 16 Par-la-Ville Road Hamilton, Bermuda LORAL SPACE: Amicably Resolves Differences With Chinasat -------------------------------------------------------- Loral Space & Communications announced Wednesday that it has reached a settlement with China Telecommunications Broadcast Satellite Corporation (ChinaSat) regarding the Space Systems/Loral-built ChinaSat 8 satellite and its launch. Beneficial to both parties, this settlement amicably resolves all outstanding differences between the Company and ChinaSat. Under the terms of the settlement, which is subject to bankruptcy court approval, Space Systems/Loral (SS/L) will continue to seek the required State Department approvals to export the satellite and agrees to assume its contract with ChinaSat, as amended to reflect the terms of the settlement. Further, SS/L has no obligation to deliver the ChinaSat 8 satellite until all required export licenses are received. Also pursuant to the agreement, ChinaSat will withdraw all claims filed against SS/L and release it from any related liabilities. Furthermore, ChinaSat has the right under the settlement to assign its rights in the satellite contract to a third party under certain circumstances. "We are very pleased with the outcome of our settlement discussions with ChinaSat," stated Bernard L. Schwartz, Loral's chairman and CEO. "This accord resulted from a high degree of cooperation between the parties to arrive at a solution that is favorable to both of us." About Chinasat Based in Beijing, China, ChinaSat is the first satellite Company that operates satellites and provides satellite telecommunications and broadcast services in China. About Loral Space Loral Space & Communications is a satellite communications Company. Its Space Systems/Loral division is a world-class leader in the design and manufacture of satellites and satellite systems for commercial and government applications including direct-to-home television, broadband communications, wireless telephony, weather monitoring and air traffic management. Through its Loral Skynet division, it owns and operates a fleet of telecommunications satellites used to broadcast video entertainment programming, distribute broadband data, and provide access to Internet services and other value-added communications services. CONTACT: Ms. Jeanette Clonan Mr. John McCarthy Phone: (212) 697-1105 Web site: http://www.loral.com/ LORAL SPACE: dbsxmedia to Acquire BTV Product Line -------------------------------------------------- Loral Skynet announced Wednesday that it has selected dbsXmedia, part of the Ariel Way, Inc. group of companies, to assume the management and further development of Loral Skynet's traditional business television services (BTV), subject to certain closing conditions, including bankruptcy court approval. Under the terms of the transaction, dbsXmedia will acquire Loral Skynet's BTV client base in exchange for cash, stock in the Company of its funding partner, Ariel Way, Inc., and ongoing contracts for infrastructure support from Loral Skynet. The ownership transition will leave unchanged the services for current customers under an agreement that maintains the existing teleport and satellite infrastructure provided by Loral Skynet. dbsXmedia has agreed that some of the employees of Loral Skynet's BTV group will transfer to dbsXmedia's new offices in Plymouth, England and Frederick, Maryland. This highly experienced team will take over the daily operations of customers' corporate communications networks, ensuring seamless, high quality service. "dbsXmedia's management team, dedication to effective corporate communications networks, and financial backing make it the ideal partner for both Loral Skynet and our BTV customers," said Patrick Brant, president, Loral Skynet. "And, the divesture of the BTV business allows Loral Skynet to focus on its core fixed satellite and network services businesses." "We aim to provide the BTV client base with both continuity and rapid improvements to the overall service offer," said David Howgill, CEO, dbsXmedia. "Loral Skynet will provide the core of our services infrastructure; we will provide the know-how, technology and service - the combination of which allows us to provide state- of-the-art solutions for video, radio and digital signage solutions for the corporate and retail world." About dbsXmedia dbsXmedia aims to provide communication infrastructure and integrated multimedia services to corporations throughout the United States and Europe. dbsXmedia is part of the Ariel Way, Inc. group of companies (OTCBB:NFDV). dbsXmedia's executive management has over 25 years of experience in the video and transmission industry. dbsXmedia will operate from offices in the United States and United Kingdom, providing industry-leading solutions for BTV, digital signage and interactive media delivered over a combination of satellite, terrestrial and wireless networks. About Ariel Way Ariel Way is a technology and services Company providing highly secure global communications solutions. The Company is focused on developing innovative and secure technologies, acquiring and growing advanced emerging technology companies and national and global communications service providers. The Company also intends to create strategic alliances with companies offering complementary product lines and services. Ariel Way's technology development effort includes highly secure communications solutions and services. About Loral Skynet A pioneer in the satellite industry, Loral Skynet delivers the superior service quality and range of satellite solutions that have made it an industry leader for more than 40 years. Through the broad coverage of the Telstar satellite fleet, in combination with its hybrid VSAT/fiber global network infrastructure, Skynet meets the needs of companies around the world for broadcast and data network services, Internet access, IP and systems integration. Headquartered in Bedminster, New Jersey, Loral Skynet is dedicated to providing secure, high- quality connectivity and communications. CONTACT: Mr. John McCarthy Phone: (212) 338-5345 Web site: http://www.loral.com LORAL SPACE: Secures Commission to Build PanAmSat Satellite ----------------------------------------------------------- Space Systems/Loral (SS/L) announced Wednesday that it has been selected by PanAmSat Corporation, Wilton, Conn., to build Galaxy 18, a new Fixed Satellite Service (FSS) satellite that will deliver 10 kilowatts of power over a 15-year lifetime. "We are pleased to once again be selected by PanAmSat to build an important piece of its global network," said Patrick DeWitt, president, Space Systems/Loral. "Because of SS/L's cost- effective integration of advanced satellite features with high performance, space-proven technology, PanAmSat will be able to deliver highly competitive and reliable services to their customers." The satellite's hybrid communications payload will carry a total of 48 operating transponders, including 24 high-power Ku-band and 24 C-band transponders. The satellite is designed to operate from PanAmSat's 123 degrees West orbital location. The contract is subject to standard bankruptcy court approval. When delivered in 2007, Galaxy 18 will become PanAmSat's newest satellite covering the contiguous United States, Alaska, Hawaii, and Puerto Rico, in addition to Canada and Mexico, and will be the fifth spacecraft built for PanAmSat by SS/L. Galaxy 16 is also under construction at SS/L's facility in Palo Alto, California and is planned for delivery in 2006. The satellite is based on SS/L's flight-proven, 1300, geostationary satellite platform, which has a long and proven record of reliable operation. Currently, there are 48 SS/L 1300 satellites on orbit, performing a variety of critical communications functions. About PanAmSat Through its owned and operated fleet of 23 satellites, PanAmSat is a leading global provider of video, broadcasting and network distribution and delivery services. In total, the Company's in- orbit fleet is capable of reaching over 98 percent of the world's population through cable television systems, broadcast affiliates, direct-to-home operators, Internet service providers and telecommunications companies. In addition, PanAmSat supports the largest concentration of satellite-based business networks in the U.S., as well as specialized communications services in remote areas throughout the world. LORAL SPACE: Beats DirecTV8 Satellite Deadline by Two Months ------------------------------------------------------------ Space Systems/Loral (SS/L) announced Wednesday that it has successfully completed all assembly, integration and tests of the DIRECTV 8 satellite, more than two months ahead of the contracted schedule. This progress was capped recently by the successful completion of the pre-shipment readiness reviews held in Palo Alto, Calif. The acCompanying photo shows the satellite in the SS/L antenna test range. The DIRECTV 8 satellite, built for The DIRECTV Group, Inc. of El Segundo, Calif., is a high power Ku/Ka-band hybrid satellite. The satellite's primary mission is to maintain high quality, high power DBS service to existing DIRECTV customers. The Ka- band payload will improve DIRECTV's ability to collect and deliver high quality television programming. "I am impressed by the ability of SS/L to complete this satellite so far ahead of schedule," said Jim Butterworth, senior vice president, communication systems, DIRECTV, Inc. "This is almost unheard of in the satellite industry and is emblematic of SS/L's demonstrably improved manufacturing processes." C. Patrick DeWitt, president, Space Systems/Loral, said, "We are proud to contribute to the success of DIRECTV. SS/L understands the importance of meeting our commitments to customers, which is why we have made a considerable investment in recent years to improve our industry-leading high power satellites. The DIRECTV 8 program was the first to fully benefit from the process improvements SS/L has developed and put in place. I could not be happier with the efforts of SS/L's employees to deliver this satellite more than two months early." The DIRECTV 8 satellite will provide selectable medium and high power Ku-band broadcast services to the U.S. on up to 32 transponders. The service is optimized to support the current and next generation higher coding rate services that DIRECTV provides. The Ka-band payload will use the full 1,000 MHz of Ka- band communications bandwidth available to link DIRECTV facilities as part of DIRECTV's dramatic infrastructure development for the upcoming launch of local digital and high definition services in the Ka-band. The satellite is designed to provide almost 8,500 watts of DC power at the end of its 15-year mission life and will weigh less than 3,800 kilograms at separation from the Proton launch vehicle. The satellite will remain in Palo Alto until it is time to ship the satellite to the launch site for integration with the Proton launch vehicle. About DirecTV DIRECTV is the nation's leading and fastest growing digital multichannel television service provider with more than 13.9 million customers. DIRECTV and the Cyclone Design logo are registered trademarks of DIRECTV, Inc., a unit of The DIRECTV Group Inc. (NYSE: DTV). The DIRECTV Group is a world-leading provider of digital multichannel television entertainment and broadband satellite networks and services. The DIRECTV Group is 34 percent owned by Fox Entertainment Group, which is approximately 82 percent owned by News Corporation. MENTOR INSURANCE: Court Releases Ernst & Young From Proceedings --------------------------------------------------------------- IN THE SUPREME COURT OF BERMUDA COMPANIES (WINDING-UP) And IN THE MATTER OF THE COMPANIES ACT 1981 And IN THE MATTER OF SECTIONS 33 AND 35 OF THE INSURANCE ACT 1978 AND IN THE MATTER OF: Mentor Insurance Limited By Order of the Supreme Court dated February 17, 2005, Mr. Charles W. Kempe Jr. of Ernst & Young, Reid Hall, 3 Reid Street, Hamilton HM 11, Bermuda and Mr. Nigel J. Hamilton of Ernst & Young LLP, 1 More London Place, London SE1 2AF, London , England have been released as the Joint Liquidators of Mentor Insurance Limited pursuant to Section 178 of The Companies Act 1981. CONTACT: "Appleby, Spurling & Hunter" Attorneys for the Joint Liquidators Canon's Court 22 Victoria Street Hamilton, Bermuda =========== B R A Z I L =========== AES ELETROPAULO: Earmarks BRL536.9 Mln for Brazilian Investments ---------------------------------------------------------------- The companies controlled by the AES Group in Brazil intend to invest, together, R$ 536,9 million in 2005. It is the highest amount that the group, of North American origin and a major one in the electric sector worldwide, has designed for its local operators since it arrived in Brazil in 1998. Power distributors AES Eletropaulo, based in Sao Paulo, and AES Sul, of Rio Grande do Sul, should demand the greatest amount of those resources. The former, the largest utility in the country, has been proposed R$ 428 million, and AES Sul, R$ 65,5 million. Generators AES Tiete (with 10 hydroelectric plants in the State of Sao Paulo) and AES Uruguaiana (thermoelectric plant located in Rio Grande do Sul) intend to invest, respectively, R$ 35,9 million and R$ 7,5 million. Excluding the amounts for 2005, since it came to Brazil, the AES Group has invested approximately R$ 2,5 billion in the controlled local companies' operation. The acquisition of AES Sul, AES Tiete and AES Eletropaulo, in privatization auctions, demanded over R$ 3,3 billion. More than R$ 900 million was invested in the construction of the AES Uruguaiana thermoelectric power plant alone. The new proposals were announced on Tuesday, the 22nd, by the Group's chief officer in Brazil, Eduardo Jose Bernini, during an event oriented to trendsetters and sector agents. According to Bernini, the year 2004 was dedicated to the implementation of new business guidelines. "We want 2005 to be the year of consolidation of those very same guidelines that involve economic-financial balance, on-going improvement in the quality of services, enhanced customer service, a closer relationship with the communities the companies belong to and greater transparency with all interlocutors". It is because of such a transparency proposal that the AES Group holds, on an annual basis, the Conjuntura e Estrategia [State of Affairs and Strategy] breakfasts, when it renders account of what it achieved in the previous year and produces the projects for the year running. In 2004 the event focused on AES Eletropaulo. This year it comprised all operator companies controlled by the Group. Funding AES Eletropaulo intends to invest R$ 77 million in the system expansion and R$ 54 million in the system modernization, in addition to R$ 57 million in customer service. To recover business losses R$ 26 million-worth of investments is projected. To the AES Sul utility, funding of R$ 25,7 million is intended to be applied in customer service, R$ 22,3 million in the quality of service and R$ 11,1 million in transmission systems. As for the year 2004, a good portion of efforts focused on AES Eletropaulo's and AES Sul's financial areas, aiming to readjust their debts profile and hold a closer relationship with investors. In December, AES Eletropaulo joined Level 2 of the Bovespa Corporate Governance. Also, the companies underwent a deep reformulation in their internal framework and developed several special projects, among which, fight against fraud and the regularization of clandestine connections (in the case of AES Eletropaulo) and preparation to join the carbon credits market (AES Tiete). CONTACT: AES Corporation 1001 N. 19th St. Suite 2000 Arlington, VA 22209 USA Phone: 703-522-1315 Web site: http://www.aesc.com BANCO ITAU: CEO Dispels Rumors About Future Sale ------------------------------------------------ Banco Itau (ITU), Brazil's second-largest private bank, is "not for sale," Roberto Setubal, the bank's chief executive officer, was quoted on Tuesday as saying. Dow Jones says Setubal's comments came amid speculations in the market that Itau or some other large local bank could go under the hammer with Citigroup often named as the buyer. "It would be very expensive to buy Itau," Setubal said, adding "I doubt anyone would want to try it. Setubal said Itau was worth the equivalent of US$20 billion, on paper, but that anyone buying it would likely have to pay a premium. CONTACT: Banco Itau Holding Financiera S.A. Praca Alfredo Egydio de Souza Aranha 100 - Torre Conceicao - 11 Sao Paulo, 04344-902 Brazil Website: http://www.itau.com.br Phone: +55 11 3242 1771 Officer: Roberto E. Setubal, Pres. & CEO BANCO VOTORANTIM: Net Profit Soars 18% in 2004 ---------------------------------------------- Banco Votorantim, Brazil's ninth largest bank in terms of equity, posted a net profit of BRL741 million (US$285 million) for 2004, 18% higher than the profit in 2003, reports Business News Americas. The bank's full year profit translated into an annualized ROE of 24%. Banco Votorantim executive VP Wilson Masao is looking at an even higher net profit this year despite last year's strong performance. During 2004, Banco Votorantim sold a total of US$516 million in Euro bonds, making it one of the most active Brazilian banks on the international capital markets. Banco Votorantim was also the first among Brazilian banks to begin selling real-denominated bonds on the international markets last year. Just recently, the bank completed an overseas Brazilian real-denominated bond issue totaling the equivalent of US$100 million. The 36-month bonds were placed at an annual yield of 17.1%. Banco Votorantim, a unit of the industrial conglomerate Grupo Votorantim, reported equity of BRL3.1 billion at the end of 2004. EMBRATEL: Board Ratifies Capital Increase ----------------------------------------- DATE & TIME: February 23, 2005, 3:00 P.M. PLACE: Rua Regente Feijo 166/1687-B Centro, Rio de Janeiro CALL TO THE MEETING AND PRESENCE: The Members of the Board of Directors were called to the meeting in a regular manner as well as, in accordance with terms of Article 163 of Law n� 6.404/76. AGENDA: To rectify and ratify the decision taken by the Board of Directors on February 03, 2005 at 07:00PM. OPINION OF THE BOARD OF AUDITORS: Initially, it was reiterated to the Board Members that the Board of Auditors had already issued, on February 03, 2005, an opinion in favor of the proposed capital increase, which is transcribed as follows: "After having examined the Company's management proposal, the Board of Auditors has issued an opinion that favors the Company's management proposal, under the following terms: (i) increase the capital stock, which is currently R$2,273,913,387.00 (two billion, two hundred seventy three million, nine hundred thirteen thousand, three hundred eighty seven reais), to up to R$4,096,713,387.00 (four billion, ninety six million, seven hundred thirteen, three hundred eighty seven reais), with an increase, therefore, of up to R$1,822,800,000.00 (one billion, eight hundred twenty two million, eight hundred thousand reais), of which up to 157,658,651,441 (one hundred fifty seven billion, six hundred fifty eight million, six hundred fifty one thousand, four hundred forty one) in common shares and up to 266,248,325,303 (two hundred sixty six billion, two hundred forty eight million, three hundred twenty five thousand, three hundred and three) in preferred shares, all of them identical to the outstanding shares, at an issue price of R$4.30 (four reais and thirty cents) per lot of one thousand shares, through a private subscription by the current shareholders; and (ii) the maintenance by the Company of its decision to increase the capital stock provided that the amount subscribed reaches the minimum level of R$911,400,000.00 (nine hundred eleven million, four hundred thousand reais). DECISIONS: The members of the Board of Directors present to the meeting unanimously approved the resolutions below without restrictions, considering that: (a) On February 16, 2005, the Brazilian Securities and Exchange Commission (Comissao de Valores Mobiliarios - "CVM"), through Deliberation CVM #478, suspended the process to subscribe to new shares of the Company, as approved by the February 03, 2005 meeting of the Board of Directors at 07:00PM, until the conditions contained in that Deliberation were met. On February 18, 2005, through Deliberation CVM #479, CVM authorized Embratel Partcipacoes' management to resume the capital increase process, it being necessary, however, to change all dates and/or time intervals originally approved on the February 03, 2005 meeting; and (b) The Board Members also deliberated on a new wording to item (iii), including item (iv) and reordering the items of sub-item 4.6., of item 4, of Deliberation (A), with the purpose to clarify the procedures relative to the subscription of leftover shares, rectified and ratified the decision taken by the Board of Directors on February 03, 2005 at 07:00PM under the following terms: (A) CAPITAL INCREASE OF THE COMPANY. 1. Following the decision taken on the Board Meeting on December 15, 2004 and having examined the Company management's proposal as well as the opinion of the board of auditors, the final terms of the capital increase were approved, within the limits of the authorized capital, of R$2,273,913,387.00 (two billion, two hundred seventy three million, nine hundred thirteen thousand, three hundred eighty seven reais), to up to R$4,096,713,387.00 (four billion, ninety six million, seven hundred thirteen, three hundred eighty seven reais), with an increase, therefore, of up to R$1,822,800,000.00 (one billion, eight hundred twenty two million, eight hundred thousand reais), of which up to 157,658,651,441 (one hundred fifty seven billion, six hundred fifty eight million, six hundred fifty one thousand, four hundred forty one) in common shares and up to 266,248,325,303 (two hundred sixty six billion, two hundred forty eight million, three hundred twenty five thousand, three hundred and three) in preferred shares, all of them identical to the outstanding shares, at an issue price of R$4.30 (four reais and thirty cents) per lot of one thousand shares, for both classes of shares of the Company, through a private subscription by the current shareholders, with preemptive right being extended to the holders of American Depositary Shares ("ADSs"), considering the proposal presented by the management of the Company and the justifications mentioned in item 2 below, as well as the favorable opinion issued by the Board of Auditors. The Company shall maintain its decision to increase the capital stock provided that the subscription amount reaches a minimum level of R$911,400,000.00 (nine hundred eleven million, four hundred thousand reais). 2. The following reasons justify the capital increase: (a) The Company intends to reduce its net debt levels and the financial costs of its controlled Company, Empresa Brasileira de Telecomunicacoes S.A. - Embratel, through injection of funds to: (i) redeem 35%, or US$96,250,000.00 (approximately R$250,635,000.00), of the aggregate principal amount outstanding under Embratel's US$275,000,000.00 (approximately R$716,100,000.00) guaranteed notes due 2008. The guaranteed notes bear interest at 11.0% per annum and mature in 2008. Under the terms of the guaranteed notes, the redemption price would equal 111% of the principal amount of the notes, which would result in an aggregate redemption payment of US$106,837,500.00 (approximately R$278,204,850.00) plus accrued interest; and (ii) pay short-term debt as it matures. Short-term debt, which may be repaid with part of the proceeds from the offering or with other funds, includes R$1,000,000,000.00 in commercial paper issued by Embratel in Brazil in Reais, maturing in the second quarter of 2005; and (b) The Company intends to gain financial flexibility to fund the capital expenditures of the Company and of its subsidiaries. Proceeds from this capital increase may be used for the acquisition of certain assets from the controlling shareholder in Brazil, although no specific transaction has been proposed. 3. The issue price will be of R$4.30 (four reais and thirty cents) per lot of one thousand shares, for both classes of shares of the Company. The issue price for the new common and preferred shares was determined based on the share price of the preferred shares on Bolsa de Valores de Sao Paulo ("BOVESPA"), due to its high degree of liquidity, according to terms in Article 170, paragraph 1, of Law No. 6.404 of December 15, 1976, as amended ("Lei das Sociedades Anonimas"), and to CVM Advisory Opinions No. 1 of September 27, 1978, and No. 5 of December 3, 1979. The determination of the issue price of the new shares to be issued by the Company, based on what was proposed by the Company management, which was supported by studies made by the financial advisors of the Company - Goldman Sachs & Co., is a function of market conditions and is intended to stimulate shareholder participation and to enable the formation of a market price for the subscription rights. The issue price represents (i) a discount of approximately 9% (nine percent) on the volume weighted average closing price of the preferred shares in the last thirty (30) trading days at BOVESPA dating from February 03, 2005; and (ii) a discount of approximately 19% (19 percent) on the volume weighted average closing price of the preferred shares in the last sixty (60) trading days at BOVESPA dating from February 03, 2005. 4. The capital increase approved herein shall be done in accordance with the following terms and conditions: 4.1. Record and Subscription List: Shareholders holding common and preferred shares of the Company on March 07, 2005, shall have preference in the subscription of the capital increase decided herein, for shares identical to the shares held by them, in the proportion of: (i) 1.267668090 common shares of each common share held by them, (ii) 1.267668090 preferred shares for each preferred share held by them. Shareholders holding ADSs of the Company on March 10, 2005, shall have preference in the subscription of the capital increase decided herein, for shares identical to the shares held by them, in the proportion of and (iii) 1.267668090 ADSs of each ADS held by them. 4.2. Ex-Rights Trading: Common and preferred shares acquired beginning on March 08, 2005 shall not entitle the purchaser to the subscription right. 4.3. Dividends: After ratification of the capital increase by the Board of Directors, the shares issued will be entitled to receive the full amount of any dividends to be declared by the Company thereafter. 4.4. Period to Exercise the Subscription Right: (i) in the Brazilian market: from March 10, 2005 to April 11, 2005, and (ii) in the US market: from March 15, 2005 to April 07, 2005. 4.5. Manner of Payment: The shares shall be paid for in cash in Brazilian currency at the time of subscription. 4.6. Procedure To Subscribe Remaining Shares: (i) after the end of the exercise period of the preemptive rights, shareholders who indicated an interest in their subscription bulletins in subscribing for any leftover unsubscribed shares shall have a period of three (3) business days after the determination of the number of leftover shares to subscribe for such leftover shares; (ii) shares that remain unsubscribed after the first reoffering round will again be reoffered to shareholders that have indicated interest in reserving of new leftover in the leftover subscription bulletin. Shareholders shall have a period of three (3) business days after the announcement of the number of leftover shares from the first offering to subscribe for new leftover shares; (iii) the maximum number of shares (including shares in the form of ADSs) to be allocated to each subscriber will be determined by multiplying the total number of shares (including shares in the form of ADSs) that were not subscribed by the percentage calculated by dividing the number of shares (including shares in the form of ADSs) subscribed by the respective subscriber by the total number of shares subscribed (including shares in the form of ADSs), subscribed by all subscribers that have expressed interest in subscribing to leftover shares. Note that the maximum number of leftover shares (including shares in the form of ADSs) that each subscriber will be entitled to in the second reoffering round will be calculated based on the result of the first reoffering round. (iv) Each subscriber will initially subscribe the leftover shares relative to the same class of shares that he/she subscribed for having exercised his/hers preemptive right, up to the limit of the maximum amount of leftover shares to which each subscriber will be entitled to, calculated in according to aforementioned item (iii), at a ratio to be determined by multiplying the total number of leftover shares of each class by the percentage calculated by dividing the (x) number of shares of this same class, subscribed by the respective subscriber who had indicated interest to subscribe leftover shares by the (z) number of total shares of the same class subscribed by all subscribers who had indicated interest to subscribe leftover shares. If the total amount of leftover shares of the same class attributable to the respective subscriber is lower than the total number of shares that he/she is entitled to subscribe, as calculated according to aforementioned item (iii), the respective subscriber may subscribe this difference in a different class of share. If the total amount of leftover shares of a same class attributable to the respective subscriber is greater than the total number of shares that that he/she is entitled to subscribe, as calculated according to aforementioned item (iii), the respective subscriber will be limited to subscribe to the total number of shares calculated in the aforementioned item (iii). (v) in addition, the Company's management is authorized to decide if any leftover unsubscribed shares, after two reoffering rounds, shall be sold in an auction at BOVESPA, for the benefit of the Company (article 171, paragraph 7, item "b" of Lei das S.A.s), which auction, if necessary, will be held on May 03, 2005, or shall be allocated among the shareholders through additional reoffering rounds. 4.7. Ratification: After subscribers effectively pay in the capital increase approved herein, a new meeting of the Board of Directors shall be convened to ratify the capital increase of the Company. 4.8. Notice to the Shareholders: The Company will publish, on March 02, 2005, a Notice to the Shareholders in a newspaper of wide circulation in Brazil to communicate the capital increase approved herein and the terms and conditions for the exercise of the preemptive subscription rights. 4.9. F-3: In order to enable holders of ADSs traded in the U.S. market to exercise preemptive rights to subscribe for preferred shares in the capital increase, Company management filed F-3 Registration Statement with the U.S. Securities and Exchange Commission and shall make amendments to it to reflect the terms and conditions approved herein. 4.10. Ratification: The Board of Directors ratifies all acts taken to date by the Company's management with respect to the capital increase approved herein." CONTACT: Embratel Participacoes S.A. Rua Regenta Feijo 166 sala 1687-B Centro Rio de Janeiro, 20060-060 Brazil Phone: 5521-519-6474 Web site: http://www.embratel.net.br EMBRATEL: Provides Telephone Services To Sao Paulo Govt Office -------------------------------------------------------------- Local, DDD and IDD calls are now placed through Embratel and get cheaper Embratel is in charge of providing the wireline telephone service to Palacio dos Bandeirantes, headquarters of the Government of the state of Sao Paulo. The local, DDD and IDD calls placed from the building located at Avenida Morumbi will now be via Embratel. Embratel will make some modifications in the telecommunications infrastructure of the building, whose numbers of more than 1,000 extensions will be changed. With this new system, the telephone costs of the management staff will drop by as much as 57%. In addition to cutting significantly its management staff costs, the Palacio dos Bandeirantes will be able to improve the control over its phone bills, since Embratel offers local rates per minute and delivers its bills in a CD format or through the Internet, thus enabling the control of all its phone extensions. Embratel offers fully digital telephone service, connecting the customer's PABX directly to its exchanges. The service offered to the corporate market is available nationwide. Sobre a Embratel Embratel offers a range of complete telecommunications solutions to the market all over Brazil, including local, long distance domestic and international telephone services, data, video and Internet transmission, and is present all over the country with its satellite solutions. KLABIN: S&P Releases Report on Ratings -------------------------------------- ISSUER CREDIT RATING Corporate Credit Rating Local currency BB/Stable/-- Corporate Credit Rating Foreign currency BB-/Stable/-- Major Rating Factors Strengths: * Leading market standpoint in the Brazilian packaging paper and board industry * Favorable cost position due to full integration of forests and industrial facilities * Improved liquidity position after the completion of asset sale program Weaknesses: * Larger participation of domestic sales on Klabin's portfolio adds more risk and volatility to the business profile * Significantly aggressive capital expenditure and dividend distribution in the future could result in weaker financial measures Rationale The foreign currency rating on Klabin S.A. (Klabin) reflects the rating assigned to the Federative Republic of Brazil. The local currency rating reflects that, apart from the existing sound financial standpoint it presents, the Company will remain committed to keeping a disciplined financial policy, even when considering the larger capital expenditure program (US$500 million) to increase its board production capacity to 650,000 from 320,000 tons per year. As a result of the major asset divestment carried out in 2003, which resulted in a cash raise used to cut down half of its gross indebtedness, Klabin currently presents a significant level of cash holdings and sound financial ratios. Nevertheless, Standard & Poor's Ratings Services expects that this excess of cash is a momentary condition, as the Company plans to carry out a sizable investment plan to double its boards installed capacity. As a result, Klabin's figures in the long run (through the cycle) will likely show financial ratios more converged to the rating category. Nevertheless, the decision on the expansion project will depend on the arrangement of proper long-term financing; thus, Standard & Poor's does not expect deterioration of the Company's capital structure or an increase in refinancing risks. The local currency rating on Klabin also reflects the Company's leading position on Brazilian paper packaging and board markets; its very competitive cost position, which derives from high forest yields and full integration of forest and production plants; and its more comfortable debt profile going forward. In addition, the Company's expansion project will be mostly directed to exports, which will continue to represent an important cushion to the volatilities of the domestic markets. These strengths are partially counterbalanced by Klabin's increased focus on packaging products and the strong correlation of sales to the performance of the volatile Brazilian economy, as well as a still-fragmented market for corrugated boxes that does not allow for rational pricing policies. Klabin's financial profile had already improved substantially during 2003 as the Company used resources from asset sales to pay down debt, reducing its total net debt position to US$174 million in September 2004, down from US$798 million in 2002. Although EBITDA volume has been steady since 2000 in the range of US$300 million, cash generation measured by FFO has improved post-divestment in 2003. This is a result of the significant debt reduction and the consequent interest burden reduction. In the nine months ended in September 2004, FFO reached US$222 million (US$138 million in year-to-date (YTD) September 2003), and FFO-to-total-debt was 62% in the same period (46% in YTD September 2003 and 28% in full-year 2002). EBITDA to interest coverage also improved to a high 13.9x in the accumulated figures of September 2004 (annualized) from 2.83x in the same period of 2003 and 3.2x in full-year 2002, due to the same reason. Liquidity Klabin's liquidity is highly comfortable for the rating category. The Company's liquid cash position in Sept. 30, 2004, amounted to $302 million, while total debt amounted to US$476 million, with maturities spread out over the next several years. In 2005 and 2006, total debt maturities amount to some US$130 million and US$168 million, respectively. According to Standard & Poor's projections, Klabin's cash position and its free operating cash flow of some $150 million/year (in average over the next four years, and after nondiscretionary investments) would allow it to repay such maturities without having to resort to external sources of funding. After its divestments, Klabin focused on packaging products and wood logs as its core businesses. With a much more conservative financial profile and free cash flow, Klabin is expected to boost its capital expenditure program. Besides nondiscretionary investments of some US$70 million per year, the Company is planning a major expansion project to increase production by 500,000 tons per year in the next five years (reaching a total installed capacity of two million up to 2009 from the current 1.5 million tons per year), mostly directed to the external markets. Counting on this additional capacity, the Company should be able to increase the contribution of exports in total revenues from the current 30% to 40%. However, the current rating level takes into consideration that the Company will make the investment spread out over the next five years. The Company is committed to carrying on the project only with well-defined long-term funding, which will include BNDES and suppliers credit, and as long as financial targets are met. With proper funding, refinancing risk is expected to remain low and cash flow protection measures to be sustained at the comfortable levels Klabin achieved after the 2003 asset divestment program. Outlook The stable outlook on the foreign currency rating mirrors that of the Federative Republic of Brazil. The stable outlook on the local currency rating reflects Standard & Poor's expectation that Klabin will continue to present low debt position and strong operating margins despite uncertainties about the level of local consumption and a relatively more aggressive capital expenditure. The ratings could go under downward pressure if the Company decides to implement its capital program without proper long-term funding or if it fails to maintain its conservative financial guidelines, which would translate into ratios of net debt to EBITDA higher than 1.5x, and EBITDA to interest lower than 4x. On the other hand, the outlook of the local currency rating could be changed to positive if the current conservative financial measures are maintained throughout the implementation of the expansion project and after further testing of Klabin's capacity to deal successfully with the volatilities of the Brazilian market. Klabin S.A. is the largest Brazilian producer of packaging paper and boards, with expected total sales volume of some 1.5 million tons per year of packaging paper and boards, and some 2.5 million tons of eucalyptus and pine logs. Excluding the wood segment, the Company's product portfolio is comprised of a wide range of packaging paper and board, corrugated boxes, and sacks. The Company counts on 19 industrial sites, which provides for broad industrial geographic coverage and efficient distribution logistics. In recent years, Klabin has defined packaging paper and boards and wood logs as its core businesses and is seeking to establish itself as a provider of packaging solutions for its clients' needs. In line with this strategy, Klabin implemented a program in 2003 to divest its assets in the segments of market pulp, dissolving pulp, tissue, and newsprint. Upon the conclusion of this wide asset sale, Klabin raised some US$833 million in cash that was partially used to reduce about US$400 million in its indebtedness (total debt of US$832 million in December 2002 and US$427 million in December 2003). The Company is controlled by the Klabin family, which holds 59.5% of the Company's ordinary shares. The remaining ordinary shares are held by Monteiro Aranha (20%) and by the public (20.5%). Preferred shares are largely held by the public in Brazil (44%) and abroad (25%), and by BNDESPar (31.7%). Primary Credit Analyst: Marcelo Costa, Sao Paulo (55) 11-5501-8955; marcelo_costa@standardandpoors.com Secondary Credit Analyst: Milena Zaniboni, Sao Paulo (55) 11-5501-8945; milena_zaniboni@standardandpoors.com LIGHT SERVICOS: Parent Not Mulling Market Pullout ------------------------------------------------- The financial woes surrounding Brazilian electric power distributor Light Servicos de Eletricidade SA will not be reason enough for its French parent to withdraw from the local market, according to Light president Jean-Pierre Bel. In an interview with financial daily Valor Economico, Bel said that a Company like EdF, which is ready to convert BRL400 million worth of interCompany loans into equity cannot be envisaging pulling out. However, Bel acknowledges that the tariff issue is crucial. Just recently, electricity regulator Aneel granted Light a 6.13% tariff hike. However, the Company is yet to implement the increase pending authorization from the finance ministry. Getting the ministry's approval would prove to be a tough one as public prosecutors are asking the finance ministry to veto the increase. Aneel managing director Jerson Kelman has said Light is entitled to raise its tariffs and if it was not allowed to do so this month, then an increase would definitely be allowed in November, when the next tariff review takes place. Meanwhile, industry sources reveal that Light has started to delay payments for the electricity it buys from the hydroelectric plant Itaipu. This payment delay has not been denied by Light, Valor noted. CONTACT: LIGHT SERVICOS DE ELETRICIDADE S.A. Avenida Marechal Floriano, 168 20080-002 Rio de Janeiro, Brazil Phone: +55-21-2211-2794 Fax: +55-21-2211-2993 Home Page: http://www.lightrio.com.br Contact: Bo Gosta Kallstrand, Chairman Michel Gaillard, President and CEO Joel Nicolas, Executive Director, Operation Paulo Roberto Ribeiro Pinto, Executive Director, Investor Relations and CFO TAM/VARIG: CADE Backs Plan to End Code-Sharing Agreement -------------------------------------------------------- Brazil's two largest airlines, Varig and TAM, have gained the support of the National Anti-Trust Department (CADE) on its plan to end a code-sharing agreement they started two years ago. According to the Justice Ministry's antitrust division, the agreement between the two airlines will be dissolved within three months. Varig and TAM started a code-sharing agreement after they announced they were considering a merger early in 2003. But the merger plan collapsed after the nonprofit Rubem Berta Foundation, which owns 87% of Varig, balked at handing over control of the airline. Since then, CADE has been pushing for the companies to end their partnership. The end of the code-sharing agreement could spell yet more financial trouble for Varig, which is struggling to pay an estimated BRL6 billion of debts. But reports have it that Varig's financial advisor, Unibanco, is drawing up a restructuring plan for the airline. 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 ============= J A M A I C A ============= KAISER ALUMINUM: US Court Approves Disclosure Statements -------------------------------------------------------- Kaiser Aluminum announced that, with some clarifying modifications announced at a hearing Wednesday, the U.S. Bankruptcy Court for the District of Delaware has approved the amended disclosure statements for two separate liquidating plans relating to the subsidiaries through which the Company has conducted certain alumina operations in Jamaica and Australia. The Company expects to file amended plans and disclosure statements containing these modifications within the next few days. None of the modifications is expected to affect any of the proposed distributions previously contained in the prior filed documents. The first is for the liquidating plan relating to Alpart Jamaica Inc. (AJI) and Kaiser Jamaica Corporation (KJC), the subsidiaries through which Kaiser Aluminum & Chemical Corporation (KACC) owned its interests in Alumina Partners of Jamaica (Alpart), a partnership that owns and operates a bauxite mining operation and alumina refinery located in Jamaica. As previously announced, AJI and KJC sold their interests in Alpart on July 1, 2004. The second disclosure statement is for the liquidating plan relating to Kaiser Alumina Australia Corporation (KAAC) and Kaiser Finance Corporation (KFC). A wholly owned subsidiary of KACC, KAAC owns a 20% interest in Queensland Alumina Limited (QAL), which owns and operates an alumina refinery located in Australia. KACC and KAAC expect to close on the sale of their interests in QAL to Rusal around the end of the first quarter or early in the second quarter of 2005. KFC is a wholly owned subsidiary of KAAC. Its primary assets are interCompany loans to KACC and certain of KACC's other subsidiaries. Approval of these disclosure statements marks the point from which solicitation and voting on the liquidating plans can begin. The Court has scheduled a hearing to begin on April 13 to consider confirmation/approval of the two liquidating plans. Separately, the Court has approved an extension of the period of exclusivity through April 30 for AJI, KJC, KAAC, and KFC - and through June 30 for KACC and the remaining Kaiser entities. Kaiser Aluminum (OTCBB:KLUCQ) is a leading producer of fabricated aluminum products and owns interests in alumina and primary aluminum. CONTACT: Kaiser Aluminum Houston Mr. Scott Lamb Phone: 713-332-4751 ===================== P U E R T O R I C O ===================== DORAL FINANCIAL: Denies Involvement in Regulatory Investigation --------------------------------------------------------------- Doral Financial Addresses Misplaced Investor Concerns Relating to Investments in Corporate Bond and Loan Obligations by Another Local Institution Mr. Salomon Levis, Chairman of the Board and Chief Executive Officer of Doral Financial Corporation (NYSE: DRL), said that a recent announcement by a local institution related to charges taken by that institution with respect to its investments in corporate bond obligations ("CBOs") and corporate loan obligations ("CLOs") had caused confusion among certain investors. The Chairman stated that Doral has not made any investment in CBOs and CLOs and that the Company was not the subject of any regulatory investigation. The Chairman reiterated that despite an uncertain interest rate environment the fundamentals of the Company remained healthy with continued strong demand for new housing loans, strong production of refinancing loans for debt consolidation purposes, growth in banking operations and increased fee income, principally from the insurance agency business. The Company, a financial holding Company, is the largest residential mortgage lender in Puerto Rico, and the parent Company of Doral Bank, Puerto Rico's fastest growing commercial bank, Doral Securities, a Puerto Rico based investment banking and institutional brokerage firm, Doral Insurance Agency, Inc. and Doral Bank FSB, a federal savings bank based in New York City. CONTACT: Doral Financial Corp. Mr. Mario S. Levis Phone: 787-474-6709 ============= U R U G U A Y ============= * URUGUAY: IMF Approves $213.8M Disbursement -------------------------------------------- The Executive Board of the International Monetary Fund (IMF) completed today the seventh review under the SDR 1.99 billion (US$ 3.04 billion) Stand-By Arrangement for Uruguay. Completion of this final review makes SDR 139.8 million (about US$ 213.8 million) immediately available to Uruguay. In completing the review, the Board granted a waiver for the nonobservance of one performance criterion related to the incorporation of loan information in the liquidation funds into the credit registry. The Stand-By Arrangement was approved on March 25, 2002 in an amount equivalent to SDR 594.1 million (about US$ 908.7 million) for a 24-month period starting April 1, 2002 (see Press Release No. 02/14) and was augmented by SDR 1.16 billion (about US$ 1.77 billion) on June 25, 2002 (see News Brief. No. 02/54), and by SDR 376.0 million (about US$ 575.1 million) on August 8, 2002 (see News Brief. No. 02/87), and reduced by SDR 139.8 million (about US$ 213.8 million) on August 27, 2004 (see Press Release No. 04/180). Total disbursements under the Stand-By Arrangement, including the amount approved today, is SDR 1.99 billion (about US$ 3.04 billion) In commenting on the Executive Board decision, Mr. Agustin Carstens, Deputy Managing Director and Acting Chair, said: "Supported by the current IMF Stand-By Arrangement, Uruguay's economic program has successfully steered the economy out of the 2002 financial crisis while boosting economic growth, keeping inflation well under control, and substantially strengthening the international reserve position. The favorable results reflect the implementation of prudent macroeconomic policies, diversification of trade, and structural reforms, especially in the banking system, as well as a supportive external environment. The authorities should be commended for leaving behind stronger public finances and a reinforced policy platform for the incoming government to launch its own policy package aimed at achieving high quality growth and sustainable public finances for the medium to long term. "Uruguay's public finances have strengthened considerably. However, despite significant improvement in the public debt profile, the debt burden remains high, and further fiscal tightening will be needed to bring it down to a sustainable level. Key fiscal reforms for the medium term should include strengthening the tax system and tax administration, reforming the specialized pension funds, and improving the budgetary process. "Monetary policy has been conducted prudently. The incoming government's decision to continue with the current policy framework is appropriate. Uruguay will benefit from taking advantage of the favorable external situation to bolster its international reserves further. In addition, steps to strengthen the autonomy and financial position of the central bank will be helpful in bolstering its ability to pursue appropriate monetary policies. "Banking reforms have progressed well, and the health of the financial system has improved markedly. Insolvent banks have been closed, and the liquidation of their assets is moving forward. Bank supervision and regulation have been strengthened, and the authorities are working to bring them fully in line with international standards. The restructuring process will need to ensure that the banking system can return quickly to its role of channeling financial resources to support economic growth, and to reduce the government's exposure to contingent costs from the restructuring process. "The incoming authorities have made a welcome commitment to build on the progress made to date. They face important challenges that still confront the Uruguayan economy. Going forward there is clear potential for the recent virtuous cycle of strong policies, economic growth, and social progress to continue, if-based on a broad domestic consensus-the new authorities reinvigorate the process of carrying out pending structural fiscal reforms, completing ongoing banking reforms, and creating an environment conducive to increased private investment and productivity growth. The incoming authorities' intention to ensure that any increased spending under the social emergency program is accommodated within the existing overall budget constraint is welcome. The recent accord among the main political parties on key policy principles bodes well for Uruguay's prospects," Mr. Carstens said. CONTACT: IMF - External Relations Department 700 19th Street, NW Washington, D.C. 20431 USA Public Affairs Phone: 202-623-7300 Fax: 202-623-6278 Media Relations Phone: 202-623-7100 Fax: 202-623-6772 ================= V E N E Z U E L A ================= PDVSA: Energy Commission to Probe Into Recent Firings ----------------------------------------------------- Venezuela's National Assembly will investigate into the recent dismissals at state oil Company Petroleos de Venezuela SA (PDVSA), Dow Jones Newswires reports, citing Pedro Jimenez, the head of the National Assembly's energy commission. In a phone interview with Dow Jones, Jimenez, a ruling-party lawmaker, revealed the commission met Wednesday with some members of PDVSA who were fired for alleged corruption. At the meeting, the parties agreed to include alleged acts of corruption as a topic of debate for next week. PDVSA President Rafael Ramirez said over the weekend that the Company had sacked 30 executives in oil-rich Zulia state for jobs trafficking. Analysts said Ramirez was responding to President Hugo Chavez Frias' clamp down on corruption. Ramirez is tackling the age-old problem of selling job positions by foremen and trade union officials. *********** 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. 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