/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/050607.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Tuesday, June 7, 2005, Vol. 6, Issue 111 Headlines A R G E N T I N A AGUAS PROVINCIALES: Legislature Seeks Exit Details CANADA MUEBLES: Court Converts Bankruptcy to Reorganization COELSA: Liquidates Assets to Pay Debts ESCENCIA ARGENTINA: Initiates Bankruptcy Proceedings FUNDICION INDUSTRIAL: Court Orders Liquidation IMMI PACK: Court Designates Trustee for Liquidation INSTELEC ELECTRONICA: Seeks Court Approval to Reorganize INTERBAND S.A.: Debt Payments Halted, Set To Reorganize IRSA: Buys 13-Story Building From Cargill SAN ANDRES: Declared Bankrupt by Court TRADINGSUR S.A.: Reorganization Concluded YORN S.A.: Heading for Liquidation After Bank Ruling * ARGENTINA: Fitch Rates New Govt Bonds; Raises Country Ceiling B E R M U D A ALLERGY THERAPEUTICS: Members Resolve to Wind-Up BIJOUX SALES: Appoints Paul Harshaw as Liquidator FOSTER WHEELER: NASDAQ Revises Trading Symbols For Warrants ORIENTAL MANAGEMENT: Members Hire Robin Mayor as Liquidator B R A Z I L CEMIG: To Borrow $1.542B to Refinance Debt CFLCL: $87M Receivables Fund Particulars Expected This Week LIGHT SERVICOS: Shareholders OK $316M Debt Sale TELEMAR: BNDES Authorizes $89M Loan UNIBANCO: Acquires Banco Dibens' Car Unit for BRL128M C O L O M B I A FIBRATOLIMA: Mayor, Liquidator Move to Rescue Firm C O S T A R I C A ICE: Court Rejects Lawyer's Suit to Scrap Ericsson/ICE Contract E C U A D O R PETROECUADOR: President Resigns Amidst Fraud Allegations M E X I C O GRUPO DESC: To Swap MXN2.43 Bln, 7-Yr Notes for New Certificates LEVI STRAUSS: Wins Appeal in Legal Dispute With Mexico City Firm TV AZTECA: Releases Details on Newly Adopted Resolutions P U E R T O R I C O DORAL FINANCIAL: Murray, Frank Files Class Action Suit U R U G U A Y URAGUA: OSE Officially Rejects Contract - - - - - - - - - - ================= A R G E N T I N A ================= AGUAS PROVINCIALES: Legislature Seeks Exit Details -------------------------------------------------- The legislature of Argentine province Santa Fe authorized a measure that compelled governor Jorge Obeid to release details of a request made by private waterworks operator Aguas Provinciales de Santa Fe to abandon its contract, reports Business News Americas. Aguas, controlled by French utility Suez, sent a note to the governor in May, seeking permission to unilaterally abandon its current contract. Given the unique nature of the request, the legislature wants to find out more details. Aguas provides potable water services to 1.83 million residents and sewerage service to 1.25 million in 15 provincial cities including capital Santa Fe. CANADA MUEBLES: Court Converts Bankruptcy to Reorganization ----------------------------------------------------------- Canada Muebles S.R.L. will embark on a reorganization process after Buenos Aires' civil and commercial Court No. 6 converted the Company's ongoing bankruptcy case into a "concurso preventivo", states Infobae. Under Insolvency protection, the Company will be able to draft a proposal designed to settle its debts with creditors. The reorganization also prevents an outright liquidation. Ms. Maria Cristina Gialdini, the court-appointed trustee, will verify creditors' proofs of claim. Creditors with unverified claims cannot participate in the Company's settlement plan. CONTACT: Canada Muebles S.R.L. Iriondo 541 Canada de Gomez Departamento Iriondo (Santa Fe) Ms. Maria Cristina Gialdini, Trustee Lavalle 667 Canada de Gomez (Santa Fe) COELSA: Liquidates Assets to Pay Debts -------------------------------------- Coelsa y Asociados S.R.L. will begin liquidating its assets following the pronouncement of the city's Court No. 12 of Buenos Aires' civil and commercial tribunal that the Company is bankrupt, Infobae reports. The bankruptcy ruling places the Company under the supervision of court-appointed trustee, Silvia Ines Trombetta. The trustee will verify creditors' proofs of claim until July 22, 2005. The validated claims will be presented in court as individual reports on Sep. 2, 2005. Ms. Trombetta will also submit a general report, containing a summary of the Company's financial status as well as relevant events pertaining to the bankruptcy, Oct. 14, 2005. The bankruptcy process will end with the disposal of company assets in favor of its creditors. CONTACT: Ms. Silvia Ines Trombetta, Trustee Viamonte 1337 Buenos Aires ESCENCIA ARGENTINA: Initiates Bankruptcy Proceedings ---------------------------------------------------- Court No. 21 of Buenos Aires' civil and commercial tribunal declared Escencia Argentina S.A. "Quiebra," reports Infobae. Clerk No. 41 assists the court on the case, which will close with the liquidation of the Company's assets to repay creditors. Mario Leizerow, who was appointed as trustee, will verify creditors' claims until Aug. 22, 2005 and then prepare the individual reports based on the results of the verification process. The individual reports will then be submitted to court on Oct. 3, 2005, followed by the general report on Nov. 15, 2005. CONTACT: Escencia Argentina S.A. Uruguay 367 Buenos Aires Mr. Mario Leizerow, Trustee Bouchard 644 Buenos Aires FUNDICION INDUSTRIAL: Court Orders Liquidation ---------------------------------------------- Fundicion Industrial Argentina S.A. prepares to wind-up its operations following the bankruptcy pronouncement issued by Court No. 26 of Buenos Aires' civil and commercial tribunal. The declaration effectively prohibits the Company from administering its assets, control of which will be transferred to a court- appointed trustee. Infobae reports that the court appointed Mr. Luis Maria Rementeria as trustee. Mr. Rementeria will be reviewing creditors' proofs of claim until July 4, 2005. The verified claims will serve as basis for the individual reports to be presented for court approval on Aug. 30, 2005. The trustee will also submit a general report of the case on Oct. 12, 2005. Clerk No. 51 assists the court on this case that will end with the sale of the Company's assets. Proceeds from the sale will be used to repay the Company's debts. CONTACT: Fundicion Industrial Argentina S.A. Parana 145 Buenos Aires Mr. Luis Maria Rementeria, Trustee Piedras 1319 Buenos Aires IMMI PACK: Court Designates Trustee for Liquidation --------------------------------------------------- Buenos Aires' accountant Mirra Noemi Andrada was assigned trustee for the liquidation of local company Immi Pack S.A., relates Infobae. Ms. Andrada will verify creditors' claims until June 21, 2005, the source adds. After that, she will prepare the individual reports, which are to be submitted in court on Aug. 16, 2005. The submission of the general report should follow on Sep. 28, 2005. The city's civil and commercial Court No. 3 handles the Company's case with assistance from Clerk No. 5. CONTACT: Ms. Mirra Noemi Andrada, Trustee Malabia 187 Buenos Aires INSTELEC ELECTRONICA: Seeks Court Approval to Reorganize -------------------------------------------------------- Instelec Electronica S.R.L. has filed a "Concurso Preventivo" petition to reorganize its finances, reports La Nacion. The Company's case is pending before Court No. 16. Clerk No. 32 will assist the court on the case. CONTACT: Instelec Electronica S.R.L. Buenos Aires INTERBAND S.A.: Debt Payments Halted, Set To Reorganize ------------------------------------------------------- Court No. 5 of Buenos Aires' civil and commercial tribunal is now analyzing whether to grant Interband S.A. approval for its petition to reorganize. La Nacion recalls that the Company filed a "Concurso Preventivo" petition following cessation of debt payments on Feb. 2005. Clerk No. 9 is assisting the court on the Company's case. CONTACT: Interband S.A. Av. de Mayo 1130 Buenos Aires IRSA: Buys 13-Story Building From Cargill ----------------------------------------- IRSA-Inversiones y Representaciones SA (IRS), Argentina's largest real estate developer, bought a 13-story office building for US$27.25 million from Andean Asset Management, a unit of Cargill. Dow Jones Newswires reports that IRSA will pay US$10 million in cash for the building and pay the remaining balance in 36 monthly installments at an interest rate of 8.5%. The acquisition, according to IRSA, adds 15,015 square meters of leaseable floor space to its office property portfolio. At the end of March, the Company had 82,696 square meters of leasable floor space within its office segment and occupancy stood at 89%. IRSA's office space business hasn't recovered as quickly from Argentina's 2002 economic crisis as the Company's shopping center and hotel segments, which benefited from the tourism boom that followed the peso's 70% plunge against the dollar during the crisis. SAN ANDRES: Declared Bankrupt by Court -------------------------------------- San Andres de Procida S.A. is now bankrupt after Court No. 26 of Buenos Aires' civil and commercial tribunal declared it "Quiebra", Infobae reports. The court, which is assisted by Clerk No. 52 on the case, is yet to appoint a receiver, who will be reviewing creditors' claims to determine the amount each creditor will get after all the assets of the Company are liquidated. CONTACT: San Andres de Procida S.A. Coronel Salvadores 1380 Buenos Aires TRADINGSUR S.A.: Reorganization Concluded ----------------------------------------- The settlement plan proposed by Tradingsur S.A. for its creditors acquired the number of votes necessary for confirmation. As such, the plan has been endorsed by Court No. 7 of Buenos Aires' civil and commercial tribunal and will now be implemented by the Company. CONTACT: Tradingsur S.A. Buenos Aires YORN S.A.: Heading for Liquidation After Bank Ruling ---------------------------------------------------- Buenos Aires-based Yorn S.A. will begin liquidating its assets following the pronouncement of Court No. 22 of the city's civil and commercial tribunal that the Company is bankrupt, reports Infobae. The bankruptcy ruling places the Company under the supervision of court-appointed trustee, Carlos Alberto Bavio. The trustee will verify creditors' proofs of claim until July 8, 2005. The validated claims will be presented in court as individual reports on Sep. 6, 2005. Mr. Bavio 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 Oct. 20, 2005. The bankruptcy process will end with the disposal of company assets in favor of its creditors. CONTACT: Mr. Carlos Alberto Bavio, Trustee Pavon 4374 Buenos Aires * ARGENTINA: Fitch Rates New Govt Bonds; Raises Country Ceiling --------------------------------------------------------------- Fitch Ratings, the international ratings agency, has assigned the following ratings to the US$35 billion in bonds Argentina issued as part of its debt exchange: --Par bonds in foreign currency issued under foreign law 'CCC+'; --Par bonds in foreign currency issued under Argentine law 'B-'; --Par bonds in local currency issued under Argentine law 'B-'; --Discount bonds in foreign currency issued under foreign law 'CCC+'; --Discount bonds in foreign currency issued under Argentine law 'B-'; --Discount bonds in local currency issued under Argentine law 'B-'; --Quasi par bonds in local currency issued under Argentine law 'B-'. At the same time, Fitch has upgraded the following ratings: --Country ceiling to 'B' from 'B-'; --Short-term foreign currency to 'B' from 'C'. Fitch also affirmed the following ratings: --Bodens in local currency 'B-'; --Local and foreign currency bonds eligible but not tendered in the debt exchange 'D'; --Long-term foreign currency issuer default rating 'DDD'. Additionally, Fitch assigned 'B-' ratings to Bodens in foreign currency. The Rating Outlook on the non-default ratings is Stable. "The ratings on the new bonds reflect Fitch's expectation that Argentina should be able to meet debt service obligations over the next 18-24 months assuming an adequate fiscal stance is maintained, that it can fully refinance debt coming due in the local market, and that some new disbursements are made by multilateral lenders. The margin of maneuver in public finances will remain tight for the foreseeable future, however, leaving them vulnerable to confidence shocks," said Morgan C. Harting, Fitch sovereign analyst for Argentina. Fitch believes that until relations with holdouts are normalized, prospects for multilateral financing will be constrained. Furthermore, potential claims by holdouts against the government will pose an ongoing risk that payments on new bonds could be exposed to attachment by foreign courts. Assuming near-term financing needs are covered, government debt could continue on a declining path over the near term as a result of economic growth, real exchange rate appreciation and a primary budget surplus. Fitch expects growth to exceed 6% this year and that the general government primary balance will equal about 3.7% of GDP. The peso is expected to appreciate in real terms mostly due to rising inflation, which Fitch believes could reach 10% by year-end. Above-average growth will become more difficult to sustain relatively soon because of supply bottlenecks, particularly in the energy and gas sectors. Concerns in the private sector about regulatory certainty and macroeconomic stability are also limiting long-term investment, further dampening economic growth potential. As activity slows, the fiscal position will become more difficult to sustain, particularly if the government significantly loosens expenditures in response to demands for higher wages and pensions. Adjustment away from distortionary taxes on exports and financial transactions that were imposed during the crisis will also need to be phased out over time, requiring new revenues or expenditure cuts elsewhere. Some relief will be afforded by the low interest expense profile over the next several years resulting from the debt exchange and the cessation of payments on non-tendered bonds. Rapid growth in imports reduced the current account balance to 2% of GDP in 2004 from 5.7% in 2003, and import growth is expected to outpace export growth again in 2005, although the current account should remain in surplus at a level similar to last year. Marginal net capital outflows are expected, though the overall balance of payment should be positive, allowing international reserves to rise by about US$3.2 billion, ending the year at US$22.1 billion. This would exceed 2006 government debt service of about US$16.6 billion, but Fitch does not expect international reserves to be fully and freely available to the government because of legal restrictions on central bank financing of the government and also because doing so could give rise to trade interruptions. The foreign currency issuer default rating is 'DDD' because the government has ceased payment on bonds not tendered in the debt exchange with face value of approximately US$18.9 billion, or 24% of eligible securities. The issuer default rating and the ratings on these securities will remain in default until relations with these creditors are normalized. ============= B E R M U D A ============= ALLERGY THERAPEUTICS: Members Resolve to Wind-Up ------------------------------------------------ IN THE MATTER OF THE COMPANIES ACT 1981 And IN THE MATTER OF Allergy Therapeutics (Bermuda) Limited The Members of Allergy Therapeutics (Bermuda) Limited, acting by written consent without a meeting on June 2, 2005 passed these resolutions: 1) THAT the Company be wound up voluntarily, pursuant to the provisions of the Companies Act 1981; and 2) THAT Robin J Mayor be and is hereby appointed Liquidator for the purposes of such winding-up, such appointment to be effective forthwith. The Liquidator Informs that: - Creditors of Allergy Therapeutics (Bermuda) Limited which is being voluntarily wound up, are required, on or before June 17 2005 to send their full Christian and Surnames, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their lawyers (if any) to Robin J. Mayor at Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, HM DX, Bermuda, the Liquidator of the said Company, and if so required by notice in writing from the said Liquidator, and personally or by their lawyers, to come in and prove their debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. - A final general meeting of the Members of Allergy Therapeutics (Bermuda) Limited will be held at the offices of Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda on July 6, 2005 at 9.30 a.m., or as soon as possible thereafter, for the purposes of: 1) receiving an account laid before them showing the manner in which the winding-up of the Company has been conducted and its property disposed of and of hearing any explanation that may be given by the Liquidator; and 2) by resolution determining the manner in which the books, accounts and documents of the Company and of the Liquidator shall be disposed of; and 3) by resolution dissolving the Company. CONTACT: Mr. Robin J. Mayor, Liquidator Clarendon House Church Street Hamilton, Bermuda BIJOUX SALES: Appoints Paul Harshaw as Liquidator ------------------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 And IN THE MATTER OF Bijoux Sales Ltd. The Members of Bijoux Sales Ltd. acting by Unanimous Written Resolution on May 20, 2005, passed these resolutions: 1) That the Company be wound up voluntarily, pursuant to the provisions of the Companies Act 1981; and 2) That Paul Harshaw of Ram Re House, 2nd Floor, 46 Reid Street, Hamilton HM 12, Bermuda be and is hereby appointed Liquidator of the Company with full power and authority to conduct the winding-up in accordance with the Companies Act 1981 and the Companies (Winding Up) Rules 1982, such appointment to be effective forthwith. The Liquidator Informs that: - Creditors of Bijoux Sales Ltd., which is being voluntarily wound up, are required, on or before June 21, 2005, to send their full Christian and Surnames, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their solicitors (if any) to Paul Harshaw, the undersigned, at Lynda Milligan-Whyte & Associates, 2nd Floor, Ram Re House, 46 Reid Street, Hamilton, HM 12, Bermuda, the Liquidator of the said Company, and if so required by notice in writing from the said Liquidator, and personally or by their solicitors, to come in and prove their debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. - A final general meeting of the Members of the Company will be held at the offices of Lynda Milligan-Whyte & Associates, Ram Re House, 2nd Floor, 46 Reid Street, Hamilton HM 12, Bermuda on July 8, 2005 at 10:00 a.m. or as soon thereafter as possible, for the purposes of considering and, if thought fit resolving: 1. the approval of and adoption of an account laid before them showing the manner in which the winding-up of the Company has been conducted and its property disposed of; 2. hearing any explanation that may be given by the Liquidator; 3. the manner in which the books, accounts and documents of the Company and the Liquidator shall be disposed of; and 4. to dissolve the Company. CONTACT: Mr. Paul Harshaw, Liquidator Ram Re House 2nd Floor 46 Reid Street Hamilton HM 12 Bermuda FOSTER WHEELER: NASDAQ Revises Trading Symbols For Warrants ----------------------------------------------------------- Foster Wheeler Ltd. (Nasdaq: FWLT) announced Friday that the NASDAQ Stock Market has revised the NASDAQ trading symbols for Foster Wheeler's Class A and Class B Common Stock Purchase Warrants to FWLTW and FWLTZ, respectively. The Company's Common Shares will trade under the symbol FWLT as originally announced. Foster Wheeler will begin trading on the NASDAQ Stock Market on June 3, 2005. Foster Wheeler Ltd. is a global company offering, through its subsidiaries, a broad range of design, engineering, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemicals, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA. CONTACT: Foster Wheeler Ltd. Media Contact: Maureen Bingert Phone: 908-730-4444 Investor Contact: John Doyle Phone: 908-730-4270 Other Inquiries: Phone: 908-730-4000 Web site: http://www.fwc.com ORIENTAL MANAGEMENT: Members Hire Robin Mayor as Liquidator ----------------------------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 And IN THE MATTER OF Oriental Management Ltd. The Members of Oriental Management Ltd., acting by written consent without a meeting on May 30, 2005 passed these resolutions: 1) THAT the Company be wound up voluntarily, pursuant to the provisions of the Companies Act 1981; and 2) THAT Robin J. Mayor be and is hereby appointed Liquidator for the purposes of such winding-up, such appointment to be effective forthwith. The Liquidator Informs that: - Creditors of the Oriental Management Ltd., which is being voluntarily wound up, are required, on or before June 17, 2005 to send their full Christian and Surnames, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their lawyers (if any) to Robin J Mayor at Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, HM DX, Bermuda, the Liquidator of the said Company, and if so required by notice in writing from the said Liquidator, and personally or by their lawyers, to come in and prove their debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. - A final general meeting of the Members of Oriental Management Ltd will be held at the offices of Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda on July 6, 2005 at 9:00 a.m., or as soon as possible thereafter, for the purposes of: 1) receiving an account laid before them showing the manner in which the winding-up of the Company has been conducted and its property disposed of and of hearing any explanation that may be given by the Liquidator; and 2) by resolution determining the manner in which the books, accounts and documents of the Company and of the Liquidator shall be disposed of; and 3) by resolution dissolving the Company. CONTACT: Mr. Robin J. Mayor, Liquidator Clarendon House Church Street Hamilton, Bermuda =========== B R A Z I L =========== CEMIG: To Borrow $1.542B to Refinance Debt ------------------------------------------ Cemig (Companhia Energetica de Minas Gerais), a listed company holding public service concessions, with share securities traded on the stock exchanges of New York, Madrid and Sao Paulo, hereby informs the public, in accordance with its commitment to implement best corporate governance practices, and in accordance with Instructions 358 and 359 of the Brazilian CVM (of 3 January 2002 and 22 January 2002 respectively), that, in line with the company's strategic policy orientation to lengthen its debt profile, reduce cost of debt and reduce exposure to foreign currency, the Board of Directors approved Thursday the completed contractual arrangements for borrowing, in the local Brazilian bank lending market, of funds in the amount of approximately R$1.542 billion. This funding will have a total tenor of 8 years, will be amortized in four equal consecutive annual installments over the period 2010 to 2013, and will be used to re-finance debt of the company and its subsidiaries Cemig Geracao e Transmissao S.A. and Cemig Distribuicao S.A. becoming due in the period June through December 2005. At the same meeting the Board also approved the use of additional funding of R$ 677 million, which had been previously offered to Cemig, with the same tenor and repayment timetable, for refinancing of debts becoming due in 2006 and thereafter, for a higher financial cost or linked to foreign currency exchange rate variation. The amount to be contracted could thus total R$ 2.219 billion. This transaction has significantly increased the company's credit quality. CONTACT: Cemig (Companhia Energetica de Minas Gerais) Av. Barbacena, 1.200 - 7 andar - ala B1 Bairro Santo Agostinho 30190-131 - Belo Horizonte - MG Investor Relations: Phone: 31 3299-3930 31 3299-4015 Fax: 31 3299-3934 31 3299-3933 E-Mail: ri@cemig.com.br Site: www.cemig.com.br CFLCL: $87M Receivables Fund Particulars Expected This Week ----------------------------------------------------------- Power group Companhia Forca e Luz Cataguazes-Leopoldina (CFLCL) will release the details of a BRL210-million (US$87 million) receivables fund at a road show that is scheduled to start this week. Spanish bank Santander is managing the sale, reports Business News Americas. CFLCL announced plans to launch the fund last year as part of a BRL311-million financing package. At the time, company CFO Mauricio Botelho said it was seeking a BRL71-million, nine-year loan from regional development bank Banco do Nordeste and was planning to launch a BRL240-million fund. CONTACT: Companhia Forca e Luz Cataguazes-Leopoldina Mauricio Perez Botelho Investor Relations Director Praca Rui Barbosa, 80 - CEP 36770-901 Cataguases, MG Phone: (32) 3429-6282 Fax: (32) 3429-6480 E-mail: mbotelho@cataguazes.com.br LIGHT SERVICOS: Shareholders OK $316M Debt Sale ----------------------------------------------- Power distributor Light Servicos de Eletricidade SA moved closer towards concluding its debt restructuring program after its shareholders approved the proposed issuance of BRL767 million (US$316mn) in 10-year local convertible debt. According to Business News Americas, national development bank BNDES has agreed to buy BRL720 million of the debt and minority shareholders will have the option to buy the remaining BRL47 million. The debt will pay four percentage points over BNDES' long-term interest rate TJLP, currently at 9.75% a year. There is also a four-year grace period. After three and half years, BNDES will have the option to convert part of the debt into shares that will represent a stake of 12-20%, depending on how much BNDES decides to convert. The debt sale forms part of Light's US$1.5 billion debt- restructuring program announced on May 18. The program includes extending maturities on more than US$600 million of short-term debt Light owes 12 banks and investment funds, the postponement to 2012 from 2007 the payment of US$160 million debt and a US$400-million capital injection by company controller, France's EDF. The operation is expected wrap up by June 30. 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 TELEMAR: BNDES Authorizes $89M Loan ----------------------------------- Brazilian fixed line operator Telemar Norte Leste (TNL) is to receive a BRL215-million (US$89mn) loan from the national development bank BNDES, says Business News Americas. BNDES approved the loan, which Telemar will use to fulfill PGMU universal access obligations and for education projects mainly in north and northeast Brazil. The project, which involves the installation of 37,000 fixed line telephony terminals in rural areas, requires an investment of BRL379 million. Telemar will put up the remaining balance of the investment. The PGMU federal universal access law forces fixed line operators to install public phones in small villages with 100 to 300 inhabitants, while all people living in villages with more than 300 inhabitants have the right to have their own individual telephone line. The deadline for these implementations is December 31, 2005. CONTACT: Tele Norte Leste Participacoes S.A. Phone: (212) 815-2921 Fax: (212) 571-3050 Web Site: http://www.telemar.com.br/ Investor Relations Email: invest@telemar.com.br Roberto Terziani 55 21 3131 1208 IR Team 55 21 3131 1313 - 1317 Fax: 55 21 3131 1155 UNIBANCO: Acquires Banco Dibens' Car Unit for BRL128M ----------------------------------------------------- Unibanco, the country's third-largest private bank, assumed total control of the motor vehicle financing unit of small local bank Banco Dibens SA. Unibanco already had a 51% stake in Banco Dibens, and will now pay BRL128.2 million ($1=BRL2.41) to assume total control. The bank will acquire the remaining stake through an issue of BRL8.7 million of its own shares to toll road operator Grupo Verde, which owned the remaining stake in Banco Dibens' vehicle financing unit. According to Unibanco, the vehicle-financing portfolio of Banco Dibens is worth BRL4 billion. Unibanco's total credit portfolio reached BRL33.176 billion on March 31. =============== C O L O M B I A =============== FIBRATOLIMA: Mayor, Liquidator Move to Rescue Firm -------------------------------------------------- Mr. Ruben Dario Rodriguez, mayor of Colombian city of Ibague (Tolima Department), and Mr. Alberto Valencia Ramirez, liquidation manager of Fibratolima, designed a proposal to save the national textile firm from slipping further into liquidation. According to Noticias Financieras, the two authorities met with Agriculture minister Andres Felipe Arias to present their proposal, which calls for the conversion of Fibratolima's debt into stakes in the Company. Fibratolima has debts totaling COP70 million, most of which are owed to state entities. The Company manufactures, mercerizes and processes all types of textiles. It is also involved in wholesale and import/export activities. Since its creation in 1988, the Company had consistent working capital problems due to the high level of debt it incurred with the purchase of equipment. These problems eventually caused a lack of resources for the purchase of raw materials and inventory. In March 2002, Fibratolima closed its plants and entered into bankruptcy restructuring proceedings. Last year, the Superintendencia de Sociedades, the government agency in charge of liquidations, ordered its liquidation after the Company failed to reach an accord with its creditors over some changes in the conditions of its debt-restructuring plan under Colombia's bankruptcy laws. =================== C O S T A R I C A =================== ICE: Court Rejects Lawyer's Suit to Scrap Ericsson/ICE Contract --------------------------------------------------------------- A Costa Rican lawyer failed in his attempt to have the country's constitutional court annul a US$130-million GSM contract that local telecoms monopoly ICE awarded Swedish equipment firm Ericsson in June last year to install 600,000 GSM-technology mobile lines. Business News Americas recalls that the lawyer, Pablo Barahona, last week asked the court to annul the contract, citing irregularities during the bidding process. In his suit, Barahona named as defendants interim comptroller Marta Acosta Zuniga, Norman Villalobos Mart�nez, manager of the comptroller's institutional development division and Manuel Corrales Umana, manager of the entity's authorizations department. The comptroller general approved the contract in March this year despite an internal investigation into possible bribes between employees of ICE and Ericsson. The court's decision to uphold the contract is an added guarantee that the project will go ahead. ICE hopes to begin selling lines by October 2005, when it will try to have around 200,000 ready. ============= E C U A D O R ============= PETROECUADOR: President Resigns Amidst Fraud Allegations -------------------------------------------------------- Faced with accusations he was jailed for alleged fraud in 2001, Robert Pinzon decided to quit his post as president of state oil company Petroecuador, reports Business News Americas. The secretary of President Alfredo Palacio's administration, Luis Herreria, confirmed the letter of resignation had been received on Friday. Reports have it that Pinzon was locked up in Litoral penitentiary for two weeks in October 2001 and that he defaulted on two bank loans. Carlos Quiroz has been named as a possible replacement for Pinzon. =========== M E X I C O =========== GRUPO DESC: To Swap MXN2.43 Bln, 7-Yr Notes for New Certificates ---------------------------------------------------------------- Conglomerate DESC SA plans to swap about MXN2.43 billion in seven-year notes for new debt certificates to be issued under a MXN3-billion debt program, reports Dow Jones Newswires. The issue will be in two tranches. The first, scheduled for between the last week of June and the middle of July, will be in exchange for up to MXN1.16 billion in existing notes denominated in inflation indexed investment units, or UDIS, due October 2006. According to a company spokesman, the first issue would be at five years with a floating interest rate, and denominated either in pesos indexed to the dollar or in UDIs. The second issue will be in exchange for MXN1.27 billion in UDI notes due July 2007, and the maturity will probably be the same. The timing of the second swap offer will depend on market conditions, the spokesman said. DESC, S.A. de C.V. (BMV: DESC), one of the largest industrial groups in Mexico, has net debt of US$620 million at the end of March. CONTACT: Ms. Maria Barona Ms. Melanie Carpenter Phone: 212-406-3690 Contacts: Ms. Marisol Vazquez-Mellado Mr. Jorge Padilla E-mail: investor.relation@desc.com.mx Phone: (5255) 5261-8044 Web site: http://www.desc.com.mx LEVI STRAUSS: Wins Appeal in Legal Dispute With Mexico City Firm ---------------------------------------------------------------- On May 31, a civil appeals court in Mexico City reversed a lower court ruling that would have required Levi Strauss &Co. (LS&CO.) to pay approximately $45 million in damages to a former contractor, Compania Exportadora de Maquila Comexma (Comexma). Under the appeals court ruling, the damages award was reversed entirely and LS&CO. was awarded court costs and attorneys' fees. Comexma sued LS&CO. following an unauthorized anti- counterfeiting raid on its Mexico City facilities in June 2001, initiated by LS&CO.'s outside Mexican brand counsel. No counterfeiting was discovered and the raid was terminated when LS&CO. representatives confirmed that Comexma was an authorized manufacturer at the time. In their original lawsuit, Comexma alleged that the raid resulted in the loss of prestige in the commercial market, the loss of business and the need to shut down the company. The trial court awarded Comexma approximately $24.5 million in direct damages, and approximately $20.5 million in damages for harm to its reputation. LS&CO. appealed the trial court decision to Mexico City's civil appellate court. In overturning the lower court's ruling, the appeals court found that there was no direct relationship between the raid and Comexma's decision to close the facility, the damages claimed by Comexma were not caused by the raid, and there was no intent by LS&CO. to harm the former contractor. MEDIA CONTACTS: E.J. Bernacki (415) 501-6262 Jeff Beckman (415) 501-1698 TV AZTECA: Releases Details on Newly Adopted Resolutions -------------------------------------------------------- SUMMARY OF RESOLUTIONS ADOPTED AT THE GENERAL EXTRAORDINARY SHAREHOLDERS' MEETING OF TV AZTECA, S.A. DE C.V., At the corporate offices of the Company, and in the absence of Mr. Ricardo B. Salinas Pliego, Chairman of the Board of Directors, Mr. Francisco Xavier Borrego Hinojosa Linage was designated by unanimous vote of all shares represented at the Meeting as President of the Meeting and Mr. Othon Frias Calderon acted as Secretary of the Board of Directors. I. Analysis and resolution on the convenience to continue with the American Depositary Receipts Program (ADRs) in the United States, and if appropriate, the amendment to the Company's By- Laws. By a majority of the votes compromising 99.85% of the shares of the Company, the following resolutions were adopted: FIRST. The shareholders approved the cancellation of the American Depositary Receipts ("ADRs") program and the termination by the Company of the Deposit Agreement, dated as of August 15, 1997, among the Company, The Bank of New York ("BONY") and the holders of the corresponding ADRs. SECOND. The shareholders approved the modification of the Form F-6 filed by the Company with the Securities and Exchange Commission ("SEC") with the purpose of reducing the number of ADRs registered under said Form to zero. THIRD. The shareholders approved an amendment to the Deposit Agreement in order to reduce from 2 years to 60 days the time period which holders of the ADRs have to exercise their right to exchange their ADRs for shares of the Company (or the securities representing them) and for BONY to sell the shares of the Company (or the securities representing them) represented by the ADRs then held by BONY. FOURTH. The shareholders approved to authorize any Attorney-in- fact of the Company with faculties to execute acts of administration, to carry-out and execute in the name and on behalf of the Company, all acts, notifications and processes necessary to comply with the resolutions adopted at such Shareholders' Meeting, including but not limited to the termination of the Deposit Agreement, amendment of the Form F- 6, notification to BONY and the New York Stock Exchange and any other entity or third party, including local and foreign authorities, and take all actions that may be required in order to carry out the resolutions adopted therein. FIFTH. The shareholders approved the amendment of Clause Twenty-Six of the By-laws of the Company in the order to include the non-delegable faculty of the General Extraordinary Shareholders' Meeting of the Company to authorize any act, agreement or mechanism involving the shares of the Company (or the securities representing them, including CPOs), which have, among others, the following effects: (i) Submit the Company to the jurisdiction or authority of a foreign authority, and/or (ii) Compel the Company to furnish to any foreign authority, organism or market with reports or information regarding the Company or any act regarding the Company, or its assets, operations, directors, officers or shares (or the securities representing them, including CPOs). II. Appointment of Special Delegates to formalize the resolutions adopted at the Meeting. By unanimous vote of the shares that represent the capital stock of the Company, the following resolution was adopted: FIRST. The shareholders approved the appointment as delegates of Mr. Francisco Xavier Borrego Hinojosa Linage and Othon Frias Calderon, in order that, jointly or severally, they may (i) appear before a Notary Public of their choice to notarize the minutes of the Meeting; (ii) undertake all the necessary acts to formalize and comply with the resolutions adopted in the Meeting, including the preparation and presentation, by themselves or by third parties, of any letter, schedule, report, consent, document and additional information required to be filed in accordance with the applicable laws of the United Mexican States and/or the United States of America; and (iii) generally take all actions that may be required in order to carry out the resolutions adopted therein. CONTACT: TV Azteca, S.A. de CV Phone: 55 3 099 1313 Web Site: http://www.tvazteca.com.mx ===================== P U E R T O R I C O ===================== DORAL FINANCIAL: Murray, Frank Files Class Action Suit ------------------------------------------------------ Murray, Frank & Sailer LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of all securities purchasers of Doral Financial Corporation ("Doral" or "the company") (NYSE:DRL) between May 15, 2000 and May 26, 2005, inclusive (the "Class Period"). The Complaint charges Doral and certain of the Company's executive officers with violations of federal securities laws by issuing materially false and misleading financial statements to the investing public. Doral is a financial services company engaged in mortgage banking, banking, institutional securities operations, and insurance agency activities in the New York City metropolitan area and in Puerto Rico. A substantial portion of its business is the offering of various mortgage loan products secured by single family residences. The Complaint alleges that during the Class Period defendants failed to disclose and/or misrepresented material adverse facts, including that: (a) the Company was using overly aggressive and unrealistic assumptions to value its derivative portfolio of interest-only strips ("IO Strips") used to hedge its mortgage portfolio against interest rate fluctuations; (b) the Company was using fraudulent accounting practices and materially overstated its net income, net gain on mortgage loan sales and net capital; and (c) the Company was using ineffective risk management and hedging strategies against the increasing risk of rising interest rates. On January 19, 2005, the Company warned of potential trouble with its hedging strategy against interest rate changes through its use of a derivative portfolio of IO Strips. Subsequently, on March 15, 2005, Doral filed its Annual Report with the SEC in which the Company disclosed for the first time its use of overly aggressive assumptions in valuing its IO Strips portfolio. The revelation was followed by downgrades of the Company's common stock by numerous securities analysts and Standard & Poor's lowered its outlook for Doral's long-term debt from stable to negative, expressing "concern over the sustainability of the Company's business model." In a matter of days Doral stock plummeted from $38.29 per share to $21.50 per share in extremely heavy volume. On April 19, 2005, the Company announced that it had determined that "it is appropriate to correct the methodology used to calculate the fair value of its portfolio of floating rate interest only strips ("IOs") and estimated that the correction would result in a decrease in the fair value of its floating rate IOs of between $400 million to $600 million as of December 31, 2004. On May 27, 2005, the Company confirmed in a press release that it would reduce the recorded fair value of its floating rate interest only strips by approximately $600 million. Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. If you purchased or otherwise acquired Doral securities on any world exchange between May 15, 2000 and May 26, 2005, and sustained damages, you may, no later than June 20, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp.If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Christopher S. Hinton of Murray, Frank & Sailer LLP. CONTACT: Murray, Frank & Sailer LLP Eric J. Belfi Christopher S. Hinton (800) 497-8076 or (212) 682-1818 Fax: (212) 682-1892 E-mail: info@murrayfrank.com URL: www.primezone.com/ca ============= U R U G U A Y ============= URAGUA: OSE Officially Rejects Contract --------------------------------------- State water utility OSE has formally rescinded private water operator Uragua's contract, reports Business News Americas. Urugua spokesman Ernesto Kreimerman said the Company regrets that the state made the decision before the June 28 court date, which was to settle the issue. However, Uragua's customers in the city of Maldonado need not worry about the decision as the public sector will absorb all of them, according to housing, territorial planning and environment minister Mariano Arana. In addition, OSE will take in 115 of Uragua's workers as contract employees. *********** 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 Sheryl Joy P. Olano, 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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