/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/050608.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 Wednesday, June 8, 2005, Vol. 6, Issue 112 Headlines A R G E N T I N A AGROVEN S.A.: Enters Bankruptcy on Court Orders AGUAS PROVINCIALES: Latin Aguas Seeks to Buy Suez's Local Unit CENTER WASH: Gets Court Approval for Reorganization CLANSAT S.A.: Liquidates Assets to Pay Debt COMPANIA: Files Petition to Reorganize FABRIL COLOR: Court Rules for Liquidation FUSION SERVICIOS: Enters Bankruptcy on Court Orders GRANJA: Debt Payments Halted, Set To Reorganize METGON S.R.L.: Judge Approves Bankruptcy PARQUE SERVICIOS: Declared Bankrupt by Court PLATAMARINE S.R.L.: Court Designates Trustee for Liquidation REDES EXCON: Seeks Reorganization Approval From Court SACIMEX S.A.: Court Orders Liquidation SERVICIOS: Court Favors Creditor's Involuntary Bankruptcy Motion B A R B A D O S SUNBEACH COMMUNICATIONS: Insists Business Operations Stable B O L I V I A AGUAS DEL ILLIMANI: Assures Customers of Continued Services B R A Z I L BRASKEM: S&P Assigns `BB-' to Forthcoming $100M Perpetual Bonds BRASKEM: Fitch Rates $100M Perpetual Bond Issuance 'BB-' COPEL: Bndespar Acquires Elejor's Debentures VARIG: Restructuring Can Be Completed in 6 Months M E X I C O CORPORACION GEO: Launches Second Phase of JV to Acquire Land TV AZTECA: Grupo Todito to Be Divided Between Shareholders VISTEON CORP.: UAW Supports Restructuring Plan P U E R T O R I C O CABLE OPERATIONS: Adelphia to Sell Cable System for $520M CENTENNIAL COMMUNICATIONS: Board OKs Base Salary Levels DORAL FINANCIAL: Appoints Faria to Head Subsidiary U R U G U A Y URUGUAYAN BANKS: Sluggish Loan Activity Hampers Profitability V E N E Z U E L A PDVSA: In "Transition Agreement" Talks With Harvest-Vinccler PDVSA: New Gas Production Record In Anaco PDVSA: OPEC Commission to Verify Oil Output - - - - - - - - ================= A R G E N T I N A ================= AGROVEN S.A.: Enters Bankruptcy on Court Orders ----------------------------------------------- Agroven S.A. entered bankruptcy protection after Court No. 12 of Buenos Aires' civil and commercial tribunal, with the assistance of Clerk No. 23, ordered the Company's liquidation. The order effectively transfers control of the Company's assets to a court-appointed trustee who will supervise the liquidation proceedings. Infobae reports that the court selected Ricardo Jorge Randrup as trustee. Mr. Randrup will be verifying creditors' proofs of claim until the end of the verification phase on Aug. 1, 2005. Argentine bankruptcy law requires the trustee to provide the court with individual reports on the forwarded claims and a general report containing an audit of the Company's accounting and business records. The individual reports will be submitted on Sep. 12, 2005 followed by the general report, which is due on Oct. 24, 2005. CONTACT: Mr. Ricardo Jorge Randrup, Trusteee Avda Cordoba 1351 Buenos Aires AGUAS PROVINCIALES: Latin Aguas Seeks to Buy Suez's Local Unit -------------------------------------------------------------- Argentine water utility Latin Aguas said Monday it has signed a letter of intent with French company Suez Environment to buy the latter's concession in Santa Fe province. Latin Aguas is aiming to take over Suez's holdings in Aguas Provinciales de Santa Fe within sixty days and plans to invest some ARS100 million (US$34.5mn) within three years, revealed Latin Aguas president Luis Chamas. "The idea is to build a potable water plant in Rosario and a reverse osmosis plant in Rafaela to improve water quality," Chamas said. "In any case, the investment plan will be discussed and agreed upon with the provincial government." Suez decided to pull out of its Santa Fe concession in May. Provincial authorities had already been preparing for Suez's withdrawal because negotiations over frozen rate hikes had stalled. The Company was requesting a 60% increase in rates, which were converted into devalued pesos and frozen in 2002, along with all other utility rates in Argentina. The Santa Fe government drafted a law creating a provincial water company that would have taken over water services. CENTER WASH: Gets Court Approval for Reorganization --------------------------------------------------- Center Wash S.R.L. will initiate a reorganization process following the approval of its petition by Court No. 12 of Buenos Aires' civil and commercial tribunal. The opening of the reorganization will allow the Company to negotiate a settlement with its creditors in order to avoid a straight liquidation. Rodolfo Arzu will oversee the reorganization proceedings as the court-appointed trustee. He will verify creditors' claims until July 1, 2005. The validated claims will be presented in court as individual reports on Aug. 12, 2005. Mr. Arzu is also required by the court to submit a general report essentially auditing the Company's accounting and business records as well as summarizing important events pertaining to the reorganization. The report will be presented in court on Aug. 29, 2005. An Informative Assembly, the final stage of a reorganization where the settlement proposal is presented to the Company's creditors for approval, is scheduled for April 5, 2006. Clerk No. 24 assists the court on this case. CONTACT: Mr. Rodolfo Arzu, Trustee Junin 55 Buenos Aires CLANSAT S.A.: Liquidates Assets to Pay Debt ------------------------------------------- Buenos Aires-based Clansat S.A. will begin liquidating its assets following the pronouncement of the city's civil and commercial Court No. 3 that the Company is bankrupt, reports Infobae. The bankruptcy ruling places the Company under the supervision of court-appointed trustee, Maria Cenatiempo. The trustee will verify creditors' proofs of claim until Aug. 8, 205. The validated claims will be presented in court as individual reports on Sep. 20, 2005. Ms. Cenatiempo 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 Nov. 2, 2005. The bankruptcy process will end with the disposal of the Company's assets in favor of its creditors. CONTACT: Maria Cenatiempo Avda de Mayo 1365 Buenos Aires COMPANIA: Files Petition to Reorganize -------------------------------------- Compania de Gas de la Costa S.A. filed a "Concurso Preventivo" motion, reports Infobae. The Company is seeking to reorganize its finances following cessation of debt payments. The Company's case is pending before Court No. 3 of Buenos Aires' civil and commercial tribunal. Clerk No. 6 assists the court on this case. CONTACT: Compania de Gas de la Costa S.A. Buenos Aires FABRIL COLOR: Court Rules for Liquidation ----------------------------------------- Court No. 16 of Buenos Aires' civil and commercial tribunal ordered the liquidation of Fabril Color S.R.L. 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 Manuel Alberdi, the court-appointed trustee. Mr. Alberdi will verify creditors' proofs of claim until July 28, 2005. The verified claims will serve as basis for the individual reports to be submitted to court on Sep. 8, 2005. The submission of the general report follows on Oct. 20, 2005. Clerk No. 31 assists the court on this case, which will end with the disposal of the Company's assets in favor of its creditors. CONTACT: Mr. Manuel Alberdi, Trustee Rodriguez Pe¤a 189 Buenos Aires FUSION SERVICIOS: Enters Bankruptcy on Court Orders --------------------------------------------------- Court No. 21 of Buenos Aires' civil and commercial tribunal declared Fusion Servicios Integrales S.R.L. bankrupt after the Company defaulted on its debt payments. The bankruptcy order effectively places the Company's affairs as well as its assets under the control of court-appointed trustee, Maximo C A Piccinelli. As the trustee, Mr. Piccinelli is tasked with verifying the authenticity of claims presented by the Company's creditors. The verification phase is ongoing until June 30, 2005. Following claims verification, the trustee will submit the individual reports based on the forwarded claims for final approval by the court on Aug. 25, 2005. A general report will also be submitted on Oct. 13, 2005. Infobae reports that Clerk No. 41 assists the court on this case, which will end with the disposal of the Company's assets in favor of its creditors. CONTACT: Fusion Servicios Integrales S.R.L. Roque Saenz Pe¤a 917 Buenos Aires Mr. Maximo C A Piccinelli, Trustee Montevideo 666 Buenos Aires GRANJA: Debt Payments Halted, Set To Reorganize ----------------------------------------------- Court No. 3 of Buenos Aires civil and commercial tribunal is now analyzing whether to grant Granja San Patricio S.A. approval for its petition to reorganize. La Nacion recalls that the Company filed a "Concurso Preventivo" petition following cessation of debt payments in January. Clerk No. 6 is assisting the court on the Company's case. CONTACT: Granja San Patricio S.A. Catulo Castillo 2342 Buenos Aires METGON S.R.L.: Judge Approves Bankruptcy ---------------------------------------- Metgon S.R.L., a local distributor of irons and steels, was declared bankrupt after Court No. 8 of Buenos Aires' civil and commercial tribunal endorsed the petition of Diraco S.A. for the Company's liquidation. Argentine daily La Nacion reports that Diraco S.A. has claims totaling $6,390 against Metgon. The court assigned Pablo Luis Peregal to supervise the liquidation process as trustee. Mr. Peregal will validate creditors' proofs of claim until Aug. 9, 2005. The city's Clerk No. 15 assists the court in resolving this case. CONTACT: Metgon S.R.L. Boulogne-sur- Mer 135 Buenos Aires Mr. Pablo Luis Peregal, Trustee Avenida Leandro N. Alem 651 Buenos Aires PARQUE SERVICIOS: Declared Bankrupt by Court -------------------------------------------- Parque Servicios Integrales S.R.L. is now "Quiebra" - meaning bankrupt, says Infobae. Buenos Aires' civil and commercial Court No. 13 decreed the Company's bankruptcy and appointed Ruben Eduardo Suez, as receiver for the Company. Mr. Suez will be reviewing creditors' claims until Aug. 8, 2005. Analyzing these claims is important because the outcome of the process will determine the amount each creditor will get after all the assets of the Company are liquidated. The court, which is aided by Clerk No. 25, will conclude the bankruptcy process by liquidating its assets to repay creditors. CONTACT: Mr. Ruben Eduardo Suez, Trustee General Cesar Diaz 2324 Buenos Aires PLATAMARINE S.R.L.: Court Designates Trustee for Liquidation ------------------------------------------------------------ Buenos Aires accountant Maria Cenatiempo was assigned trustee for the liquidation of local company Platamarine S.R.L., relates Infobae. Ms. will verify creditors' claims until Aug. 19, 2005, the source adds. After that, she will prepare the individual reports, which are to be submitted in court on Sep. 30, 2005. The submission of the general report should follow on Nov. 14, 2005. The city's civil and commercial Court No. 3 handles the case with the assistance of Clerk No. 6. CONTACT: Ms. Maria Cenatiempo, Trustee Avda de Mayo 1365 Buenos Aires REDES EXCON: Seeks Reorganization Approval From Court ----------------------------------------------------- Court No. 3 of Buenos Aires' civil and commercial tribunal is studying the request for reorganization submitted by local company, Redes Excon S.A., says La Nacion. The report adds that that the Company, which was formerly called Compania de Gas de la Costa S.A., filed a "Concurso Preventivo" petition following cessation of debt payments on April 8, 2005. The city's Clerk No. 6 assists the court on this case. CONTACT: Redes Excon S.A. Montevideo 251 Buenos Aires SACIMEX S.A.: Court Orders Liquidation -------------------------------------- Sacimex S.A. prepares to wind-up its operations following the bankruptcy pronouncement issued by Court No. 24 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. Gabriel Tomas Vulej as trustee. Mr. Vulej will be reviewing creditors' proofs of claim until July 29, 2005. The verified claims will serve as basis for the individual reports to be presented for court approval on Sep. 2, 2005. The trustee will also submit a general report of the case on Oct. 14, 2005. Clerk No. 47 assists the court on this case that will culminate in the sale of the Company's assets. Proceeds from the sale will be used to repay the Company's debts. CONTACT: Mr. Gabriel Tomas Vulej, Trustee Tucuman 1484 Buenos Aires SERVICIOS: Court Favors Creditor's Involuntary Bankruptcy Motion ---------------------------------------------------------------- Court No. 5 of Buenos Aires' civil and commercial tribunal declared Servicios de Excelencia S.A. Hospital Central de San Isidro bankrupt, says La Nacion. The ruling comes in approval of the petition filed by the Company's creditor, Atenas Cooperativa de Credito and Consumo y Vivienda Limitada, for nonpayment of $114,577.02 in debt. Trustee Noemi Zulema Vivares will examine and authenticate creditors' claims until Aug. 18, 2005. This is done to determine the nature and amount of the Company's debts. Creditors must have their claims authenticated by the trustee by the said date in order to qualify for the payments that will be made after the Company's assets are liquidated. Clerk No. 10 assists the court on the case, which will conclude with the liquidation of the Company's assets. CONTACT: Servicios de Excelencia S.A. Hospital Central de San Isidro Teniente General Juan Domingo Peron 1757 Buenos Aires Ms. Noemi Zulema Vivares, Trustee Avenida Cordoba 2626 Buenos Aires =============== B A R B A D O S =============== SUNBEACH COMMUNICATIONS: Insists Business Operations Stable ----------------------------------------------------------- Dial-up Internet Service Provider Sunbeach Communications plans to remain in business for long, saying it is still a strong and vibrant company. "We are here for the long term. We have been here since 1995, we are still here and we intend to be here in 2025," Ian Worrell, Sunbeach's Vice-President of Corporate Communications, told Business Monday during an interview last week. To ensure its continued development, Sunbeach intends to leverage the growth and potential, which still exists in the Internet services market. Worrell insists that Sunbeach's Internet service continues to be profitable and its customer service levels also continue to be high. "We are still here providing a quality service to our customers. Any negative opinions about Sunbeach came about last year because of our financials. Everybody believed that, based on our financials, we might have eventually gone out of business, but this is certainly not the case. We believe in our customer base and our customer base believes in us," Worrel said. Last year, Sunbeach shares were suspended from trading by the Barbados Stock Exchange and on the Alternative Investment Market of the London Stock Exchange because of serious doubts raised by its auditors about the Company's ability to continue as a going concern. CONTACT: SUNBEACH COMMUNICATIONS, INC. San Remo Belmont Road St. Michael, Barbados Phone: 246-430-1569 Fax: 246-228-6330 ============= B O L I V I A ============= AGUAS DEL ILLIMANI: Assures Customers of Continued Services ----------------------------------------------------------- Water concessionaire Aguas del Illimani assured its customers in Bolivia's capital La Paz that the basic water services are not at risk of being interrupted due to ongoing unrest. According to Business News Americas, La Paz has been in the throes of widespread strikes and public unrest in recent weeks organized by groups seeking to nationalize the natural gas industry and allow constitutional reforms. Reports suggest that militant organizations could cut potable water supply in order to force the government to set up a constitutional assembly. "We are taking [the reports] as rumors; we have not suffered any infrastructure damage and are working as normal even though the strikes have affected us," Illimani spokesperson Tania Jaldin said, adding state military troops have taken over security at Illimani's plants at Puchukollo and El Alto. Illimani, which is controlled by French water giant Suez, was informed by the government last year that its contract will be rescinded. The notification came after residents complained about lack of services in parts of the city and water bills tied to the US dollar. Illimani argued, saying it has complied fully with its obligations under the contract it had with the government. =========== B R A Z I L =========== BRASKEM: S&P Assigns `BB-' to Forthcoming $100M Perpetual Bonds --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' senior unsecured debt rating to the forthcoming $100 million Perpetual Bonds to be issued by Brazil's largest petrochemical company, Braskem S.A. The outlook on the corporate credit ratings on Braskem is stable. The Perpetual Bonds will be a senior unsecured obligation of Braskem and will allow for early redemption only at the company's option, in whole but not in part, starting in June 2010. The net proceeds will be used for general corporate purposes, including working capital and repayment of long-term debt. The ratings on Braskem reflect the risks associated with price volatility of its main feedstock, naphtha; exposure to its home market of Brazil for EBITDA and sales generation; and growing competition with the consolidation and expansion of other players, some of them using alternative feedstock. These negatives are mitigated by Braskem's leading business and market position in the Latin American petrochemical industry; economies of scale and some level of geographic diversification; increasing technological expertise; and efficiency initiatives being implemented by the company, conducive to structural cost reductions in the medium term and more resilience in cash flows. "A more conservative financial policy undertaken by Braskem's management from now on, providing it with a safety cushion to weather the inevitable downturns in the cyclical petrochemical industry and of the volatile economy of its home market, Brazil, is also an important supporting rating factor," said Standard & Poor's credit analyst Reginaldo Takara. Braskem is the largest petrochemical company in Latin America, with net sales and EBITDA of $4.18 billion and $946.9 million, respectively, in the 12 months ended March 31, 2005. The stable local-currency rating outlook derives from the expectation that Braskem's current capital structure will be sustained and that the company's operating and business profiles will continue on a positive trend. We believe that fundamentals for Braskem's operating profitability and cash generation are fair to positive in the medium term and stable in the long term, allowing the company to report credit measures that are quite comfortable for the rating category in 2005 and that should remain adequate throughout the petrochemical cycle. Further rating improvement can derive from the company's ability to effectively withstand the petrochemical cycle thanks to its several improvement initiatives and scale (which would prove so under less favorable market conditions), combined with further total debt reductions relative to a normalized, through-the- cycle cash flow. A negative rating action could be prompted by the company's inability to sustain margins or a radical reversal in the trend of cash generation, or a quick deterioration of its liquidity position. The stable outlook on the foreign-currency rating reflects the outlook on the foreign-currency sovereign rating on the Federative Republic of Brazil. BRASKEM: Fitch Rates $100M Perpetual Bond Issuance 'BB-' -------------------------------------------------------- Fitch Ratings has assigned a rating of 'BB-' to the proposed offering of US$100 million senior unsecured perpetual bonds to be issued by Braskem S.A. (Braskem). The perpetual bonds have no fixed final maturity; however, they will become callable, by Braskem, in whole on a quarterly basis after the five-year initial term, ending June 2010. The bonds are being offered under Rule 144A and Regulation S. Interest will be paid on a quarterly basis. The proceeds of the offering are expected to be used for general corporate purposes. Fitch also maintains an international local currency rating of 'BB+' and a national scale rating of 'AA-(bra)' for Braskem. The Rating Outlook for this bond issuance and all other Braskem ratings is Stable. Braskem's ratings are supported by the company's strong and improving credit profile, reflecting sustained growth of its operational cash flow, strong liquidity, reduced refinancing risks, and an extended debt profile. Braskem also benefits from its leading position in Latin America and Brazil in the petrochemical industry and as a material exporter of petrochemicals. Over the past several years, Braskem has focused on consolidating its first- and second-generation petrochemical operations. The company has realized substantial synergies and cost reductions, which, coupled with a stronger petrochemical pricing environment, has allowed the company to build a strong liquidity position, reduce debt, and lower refinancing risk. Braskem is well positioned in the rating category to maintain its credit quality throughout the petrochemical cycle. Braskem's foreign currency bond ratings are constrained by the 'BB-' country ceiling of the Federative Republic of Brazil. Braskem's credit protection measures have shown solid improvement over the past couple of years with LTM EBITDA-to- interest increasing to 4.8 times (x) through March 2005 from 4.0x for full-year 2004 and 3.5x for 2003. Braskem also reported an improvement in leverage with net debt-to-EBITDA decreasing to 1.3x for LTM as of March 31, 2005 from 3.4x for LTM as of March 31, 2004. The recent credit strengthening reflects a combination of greater operating cash flow, a BRL1.2 billion capital increase from an equity offering in early 2004, and a BRL2.1 billion reduction in total debt since December 2003. Fitch expects that Braskem will continue to improve its debt profile and cost of funding during 2005, further supporting credit protection measures. The company's substantial liquidity position and the ability to issue debt suggest that Braskem should be able to prepay or refinance some of its higher priced financial indebtedness. Fitch expects that Braskem management will maintain a debt profile that in terms of maturities and cost of debt, will allow the company to satisfactorily operate through the peaks and troughs of the petrochemical industry cycle. Fitch expects the company will maintain a liquidity position sufficiently strong to limit its exposure to refinancing risk. The current cyclical upturn for petrochemical products is expected to drive Braskem's profitability in 2005 and 2006 to levels above those reported in recent years, boosting cash generation and strengthening its liquidity and debt positions. The petrochemical industry is realizing higher operating rates and tightening of supply/demand fundamentals, which should enable producers to gain greater pricing power. Margin expansion has occurred in 2004 and, in general, is expected to continue as market fundamentals strengthen. The constant growth in margin indicates that the petrochemical industry has been increasing profitability from the growing cost differential between naphtha and ethylene and the next chain of the principal petrochemical products. In 2007-2008, global capacity expansion projects are expected to come on line and remove some of the upward pressure on petrochemical prices. Despite the generally improving fundamentals, Fitch remains moderately concerned about the sustainability of the recovery with increasing energy costs and the overall effect of high petrochemical prices on demand. In general terms, oil price increases translate into similar adjustments in the price of naphtha, raising concerns about the industry's ability to continue to pass on increases related to the high prices of petrochemical products. Since the companies have no control over naphtha prices, constant increases in the price of oil per barrel could pressure both the profitability and sales volume of petrochemical companies, potentially shortening the current upcycle. Braskem is the largest petrochemical company in Latin America, producing 5.7 million tons of primary, secondary, and intermediary petrochemical products with integrated first- and second-generation petrochemical production. The company has grown over the past four years through the integration of six Brazilian petrochemical companies: Copene Petroquimica do Nordeste S.A.; OPP Quimica S.A.; Polialden Petroquintica S.A.; Trikem S.A.; Proppet S.A.; and Nitrocarbono S.A. The company is now organized into four business units: basic petrochemicals; polyolefins; vinyls; and business development. It is controlled by the Odebrecht Group and Norquisa, which have, respectively, 47.5% and 25.4% of the voting capital. MEDIA RELATIONS: Brian Bertsch +1-212-908-0549, New York COPEL: Bndespar Acquires Elejor's Debentures -------------------------------------------- ELEJOR (Centrais Eletricas do Rio Jordao S.A.), a generation company where Copel holds 70% of the total common shares, comprising Santa Clara and Fundao power plants, with 120 MW capacity each, and two other small power plants incorporated to the dam, which add 5.9 MW to the group, totaling a 245.9 MW installed capacity, had its debenture issuance fully acquired by BNDESPar - BNDES Participacoes S.A Characteristics of the operation: -Total amount: R$ 255.6 million -Duration: 11 years -Grace period: 4 years -Compensation: TJLP (long-term interest rate) + 4% p.a. -Type: Private debentures convertible into shares With a view not to delaying the schedule of the construction works, Copel had been providing resources for the company as mutual loan. With this debenture issuance, part of such mutual loan is being amortized. CONTACT: Copel Investor Relations Department ri@copel.com Ricardo Portugal Alves (55 41) 3331-4311 Solange Maueler Gomide (55 41) 3331-4359 URL: www.copel.com VARIG: Restructuring Can Be Completed in 6 Months ------------------------------------------------- TAP-Portugal's rescue plan for Brazilian flagship airline Varig will take up to six months to be completed, AFP reports, citing TAP-Portugal president Fernando Pinto. Under the plan, TAP will take up to a 20% stake in Varig and find more investors in the airline to help it avert bankruptcy after defaulting on its debt in 2002. The plan recently gained the support of the Brazilian government, which is Varig's biggest creditor. Varig has suffered deep financial problems since the airline industry was hit by a recession in 2001. It has struggled to service net debts estimated at over BRL6 billion (USD$2.5 billion) while trying to improve its performance. Brazil's government, which holds over 50% of Varig's debt, settled on a plan to let foreign and domestic companies invest in the airline after considering state intervention. Under Brazilian law, no foreign company can own a majority stake in a Brazilian 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/ =========== M E X I C O =========== CORPORACION GEO: Launches Second Phase of JV to Acquire Land ------------------------------------------------------------ Corporacion Geo, S.A. de C.V. (BMV: GEOB; CORPGEO MX; ADR Level I CUSIP: 21986V204) has begun investing the second phase of its joint venture for the acquisition of land, with Prudential Real Estate Investors. Geo is Latin America's leading homebuilder and the largest developer of economic, affordable, and middle and residential housing in number of units sold. The first phase, which was launched in 2004, was increased from an initial $100 million dollars to $175 million dollars. The second phase will have $180 million dollars to invest in its initial stage. However, the size of the second phase may be increased, in the coming months. The capital of the second phase is expected to continue to be used to secure strategic land sites throughout Mexico, exclusively for Geo. Similar to the first phase, the second phase is being launched and a capital call is being issued immediately. The first capital call of the second phase will be for $20 million dollars, which will be invested in four land sites, three of which are located in the State of Mexico and one in Baja California. Miguel Gomez Mont, CEO for Corporacion Geo, commented, "We feel very proud of our joint venture with Prudential, the success of the first phase, and the launch of the second phase of this strategic relationship. At Geo, we believe that the joint venture with Prudential is the most efficient way to acquire land, increasing our capacity to meet our goals, without diluting our investors or increasing the amount of debt previously utilized for this purpose." Geo is involved in all aspects of housing development, from design and construction to marketing and sales of affordable and middle-class houses in Mexico, through its subsidiaries positioned in the most dynamic cities and regions of the country, operating in 33 cities in 19 states, covering more than 76% of the population of the country. In the past 31 years, Geo has sold and produced over 233,000 homes in which more than 1,100,000 people live. Geo is dedicated to generating value for its shareholders through a Solid Strategy of Sustainable Growth, which provides Superior Quality of Life for all of its customers. CONTACT: Jorge Perez Tel: +(52) 55-5480-5071 E-mail: jperezr@casasgeo.com Kenia Vargas/Eduardo Muniz Tel: +(52) 55-5480-5078 E-mail: geo_ir@casasgeo.com TV AZTECA: Grupo Todito to Be Divided Between Shareholders ---------------------------------------------------------- Universidad CNCI, S.A. de C.V. and TV Azteca, S.A. de C.V. announced Monday the division of Grupo Todito, S.A. de C.V., a leading Internet and telecommunications company for North American Spanish-speakers, into two independent companies. As of Monday, TV Azteca and UCNCI owned each 50% of Grupo Todito. The Board of Directors of TV Azteca and UCNCI unanimously approved the transaction that will result in TV Azteca owning 100% of Todito.com's network of sites and UCNCI as sole owner of Todito Card's pre-paid businesses. The division will be effective as of the second quarter of 2005. Todito.com was constituted in August 1999 by Universidad CNCI, S.A. de C.V. (then operating as Dataflux, S.A. de C.V.), as an Internet portal whose business model was based on the sale of internet advertising. In February 2000, TV Azteca acquired 50% of Todito's capital in exchange for a five-year services agreement that included television advertising, exclusive use of TV Azteca content online and advertising sales support, valued at US$100 million. A year later, in an effort to diversify revenue and take advantage of the rapid increase in residential internet connections in Mexico, the Company launched Todito Card-a pre-paid dial-up ISP. Todito Card was an immediate success, offering an alternative to Mexican consumers who did not want to sign long-term contracts for more expensive Internet connection services such as those offered by Terra, Telmex and AOL. At the end of 2004, Todito.com's network of sites had established itself as one of the most-visited by Mexican Internet users, with 1.8 million average daily page views and two million active registered users. In addition to online advertising sales, Todito.com generates revenue from the sale of online premium content and services, such as Todito TV (online video clip library) and AmigosyMas (online dating service). In 2004, Todito.com reported sales of Ps.137.9 million (US$12.2 million). In the four years since its launch, Todito Card has become the leading multi-services pre-paid card in North America. It is the leading pre-paid ISP in Mexico by a wide margin and the second largest dial-up ISP, surpassed only by Telmex's ISP, Prodigy. Todito Card's business extends to pre-paid long-distance telephone services and to being an increasingly widely-accepted form of payment for online content and services. Todito Card is distributed in over 40,000 points of sales in Mexico and the U.S. In 2004, Todito Card reported sales of Ps.99.2 million (US$8.8 million) and currently has over 500,000 active users (clients with credit remaining on their Todito Card) of its services in Mexico and the U.S. Todito.com will be combined with tvazteca.com, TV Azteca's popular network of content sites derived from TV Azteca programs and talent, to form a new operating subsidiary-Azteca Internet. "It is a good and logical business for TV Azteca to wholly-own a strong online media business," commented Mario San Roman, TV Azteca's Chief Executive Officer. "Internet use in Mexico and among U.S. Hispanics has grown rapidly since TV Azteca became a shareholder of Todito. Azteca Internet's network of sites will provide TV Azteca viewers with an opportunity to access interactive online content associated with our programs. We will monetize Azteca Internet's large and growing audience through our current sales channels-internet advertising is simply another option that we can offer TV Azteca clients." Todito Card will continue its existing operations in Mexico and the United States, providing high-volume communication services (Internet connection and long distance telephony) to Mexicans and U.S. Hispanics. "With the exit of Terra and AOL from the ISP market, Todito Card is in a privileged position to generate cash flow from the internet boom in Mexico and the U.S. Hispanic market," commented Tim Parsa, Chief Executive Officer of Grupo Todito.com. "Millions of Mexicans will be buying PC's and looking to connect to the Internet over the coming years and we plan on making Todito Card their first choice for ISP." "We are all very proud of what we have accomplished with both of these businesses and we look forward to building on our success," commented Mr. Parsa. "We started five years ago in the face of fierce competition by well-capitalized global internet players, as well as local players with deep pockets. Through hard work and excellent management, we survived the internet boom and its subsequent bust that destroyed so many of our competitors. The division of Grupo Todito between TV Azteca and UCNCI is a logical step that aligns each business with the owner that is best positioned to maximize its value. I am honored to continue working for two companies that I respect, operating two businesses that I know to have great potential for growth." Both Todito Card and Azteca Internet will be managed by Mr. Parsa for the remainder of 2005. Adrian Gonzalez will be Director of Operations of Todito Card. Mr. Gonzalez was previously Director of Operations of the combined Grupo Todito. Hector Sanchez will be Director of Operations of Azteca Internet. Previously Mr. Sanchez was Director of Operations of tvazteca.com. Except for historical information, the matters discussed in this press release are forward-looking statements and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Risks that may affect TV Azteca are identified in its Form 20-F and other filings with the US Securities and Exchange Commission. Company Profile TV Azteca, S.A. de C.V. (BMV: TVAZTCA; NYSE: TZA; Latibex: XTZA) is one of the two largest producers of Spanish language television programming in the world, operating two national television networks in Mexico, Azteca 13 and Azteca 7, through more than 300 owned and operated stations across the country. TV Azteca affiliates include Azteca America Network, a new broadcast television network focused on the rapidly growing US Hispanic market, and Todito.com, an Internet portal for North American Spanish speakers. Universidad CNCI, S.A. de C.V. (BMV: CNCIB) offers education and information technology services to the Mexican market through the CNCI University (the Educational Institution with the largest geographical reach in Mexico). Universidad CNCI affiliates include Grupo Todito, an Internet portal for North American Spanish-speakers. Grupo Todito, S.A. de C.V. is a leading Internet and telecommunications company for North American Spanish-speakers. It has two principal operating units, Todito.com (an Internet portal that generates revenue from the sale of online advertising and premium content and services) and Todito Card (a multi-services prepaid card for dial-up internet connection, long distance telephone service and the payment of online and offline content and services). Grupo Todito is jointly owned by Universidad CNCI, S.A. de C.V. (BMV: CNCIB) and TV Azteca, S.A. de C.V. (NYSE: TZA, BMV: TVAZTCA). CONTACT: TV Azteca, S.A. de C.V. Press Inquiries: Adrian Gonzalez Tel: 52-81-8221-2082 E-mail: adrian_gonzalez@dataflux.com.mx UNIVERSIDAD CNCI Investor Relations: Bruno Rangel Tel: +52-55-1720-9167 E-mail: jrangelk@tvazteca.com.mx Rolando Villarreal Tel: +52-55-1720-0041 E-mail: rvillarreal@gruposalinas.com.mx Press Inquiries: Tristan Canales Tel: +52-55-1720-1464 E-mail: tcanales@tvazteca.com.mx VISTEON CORP.: UAW Supports Restructuring Plan ---------------------------------------------- The United Auto Workers (UAW) union revealed Monday its members voted overwhelmingly in favor of a plan to restructure and revive auto supplier Visteon Corp. (VC). UAW members at the 15 Visteon locations covered by the National Agreement ratified the Visteon Restructuring Memorandum of Agreement (MOA) by an 88.7% majority in voting completed June 5. "We strongly believe this restructuring plan is in the best interests of UAW members at Visteon, and we are gratified by their overwhelming vote in favor of the plan," said UAW President Ron Gettelfinger. "No one is left behind by this restructuring plan," said UAW Vice President Gerald Bantom. "Not one UAW-represented worker at Visteon will face a reduction in wages and benefits; indeed, some 900 workers will receive a significant increase in their wages and benefits as a result of this agreement." Last month, Visteon and its former parent, Ford Motor Co., announced the restructuring plan, under which, Ford would take back 24 plants and other facilities in the U.S. and Mexico and pay more than US$1 billion in restructuring costs to help Visteon avoid bankruptcy. Ford said the deal could eventually save it millions of dollars on parts. Under the plan, Ford would offer voluntary buyout packages to 5,000 UAW members between now and 2007, when the UAW's contract with Ford expires. The remaining 12,400 hourly workers would continue to be covered by the contract with Ford, which has agreed to meet its salary obligations to UAW members. Visteon and Ford expect to sign a final agreement by Aug. 1. ===================== P U E R T O R I C O ===================== CABLE OPERATIONS: Adelphia to Sell Cable System for $520M --------------------------------------------------------- Adelphia Communications Corporation (OTC: ADELQ) and ML Media Partners, L.P. announced Monday they have entered into an agreement with a newly formed entity between MidOcean Partners, a New York and London-based private equity firm and its partner, Crestview Partners, a New York-based private equity firm, to sell their jointly owned San Juan Puerto Rico area cable operations. Under the terms of the transaction, MidOcean and Crestview will pay $520 million subject to customary purchase price adjustments, which equates to an approximately $3,800 per subscriber valuation. The system serves approximately 137,000 customers in the greater San Juan area. The transaction, once completed, will create a strong, stable operation that will continue to improve cable services in the San Juan area in ways that benefit its customers, its investors and the community. "We are extremely pleased to enter into this agreement with MidOcean and Crestview, who have a proven ability for employing their skills in concert with management teams at their portfolio companies to build stronger businesses," said Bill Schleyer, chairman and CEO of Adelphia. "They have the necessary cable sector expertise to provide our customers in Puerto Rico with opportunities for continued service improvements and the launch of advanced services through an upgraded cable system." "This is a positive deal for everyone involved," said Elizabeth McNey Yates, a partner in RP Media Management, the managing general partner of ML Media Partners, LP. "MidOcean and Crestview will acquire an attractive business and our Puerto Rico employees and management, who have worked hard to improve the operational and service performance of the systems, will benefit from an experienced and well-funded ownership group." Tyler Zachem, a managing director at MidOcean Partners, said, "This transaction is the culmination of a long and complex process which we began over a year ago. The operation has an excellent management team in place and dedicated employees who have helped to build this company over the years. We are excited about the opportunity to work with the team at Crestview to continue building on the company's previous successes." Cable industry veteran and Crestview Managing Director Jeffrey A. Marcus said, "We look forward to working with the team in Puerto Rico to optimize the potential of the cable television system. Cable is a core competency for Crestview and we are delighted to be partnering with MidOcean in this venture." "We are pleased to have arrived at a solution that benefits our customers and our 350 dedicated employees in Puerto Rico," added Schleyer. "We have been working with ML Media to identify the most appropriate manner to sell the joint venture and are pleased to have reached an agreement that maximizes the value to be realized from the venture. We are confident that this new ownership structure will be viewed as great news by all concerned in Puerto Rico. We're grateful to our employees for their exceptional performance under challenging circumstances." Since September 30, 2002, the joint venture between Adelphia and ML Media Partners that owns and operates the Puerto Rico systems has been under Chapter 11 bankruptcy protection, separately administered from the larger Chapter 11 bankruptcy of Adelphia Communications. The Puerto Rico Joint Venture was not included in the previously announced asset sale of Adelphia Communications Corporation to Comcast Corporation and Time Warner Inc. The transaction is subject to approval by the U.S. Bankruptcy Court for the Southern District of New York, regulatory approvals, financing by the buying group and other customary closing conditions. The closing of the transaction is expected to occur sometime in the fourth quarter of this year. Until the deal is completed, Adelphia will continue to manage daily operations. Advisors Lazard acted as financial advisors to Adelphia. Daniels & Associates acted as financial advisors to ML Media Partners. Willkie Farr & Gallagher acted as legal advisors to Adelphia for the transaction and the bankruptcy process. Proskauer Rose acted as legal advisor to ML Media Partners, L.P. for the transaction and the bankruptcy process. DH Capital acted as financial advisors for MidOcean and Crestview and Kirkland & Ellis acted as legal advisors for MidOcean and Crestview. Citigroup and JP Morgan are providing the debt financing. About Adelphia Adelphia Communications Corporation (OTC: ADELQ) is the fifth- largest cable television company in the country. It serves customers in 31 states and Puerto Rico, and offers analog and digital video services, high-speed Internet access and other advanced services over Adelphia's broadband networks. About ML Media Partners, L.P. ML Media Partners is a public limited partnership raised in 1986 to acquire, finance, hold, develop, improve, maintain, operate, lease, sell, exchange, dispose of and otherwise invest in and deal with media businesses and direct and indirect interests therein. ML Media Partners made direct operating investments in seven cable television systems, eleven radio stations and two network affiliated television stations. ML Media has liquidated all of its holdings with the exception of the cable properties in Puerto Rico. About MidOcean Partners MidOcean Partners is a premier private equity firm focused on the middle market. Based in New York and London, MidOcean is committed to investing in high-quality middle market companies with stable market positions and opportunities for growth in the United States and Europe. Targeted sectors include consumer and leisure, media and communications, business services, financial services and industrial sectors. MidOcean utilizes a broad foundation of expertise in its focus industries and its intercontinental platform to create value for its investors and partners. For more information, visit www.midoceanpartners.com. About Crestview Crestview Partners is a New York-based private equity firm established by Barry Volpert and Tom Murphy. Mr. Volpert and Mr. Murphy are former partners at Goldman, Sachs & Co. The firm is focused on investments in North America and Europe. CONTACT: Adelphia Communications Corporation Media: Paul Jacobson, +1-303-268-6426 Erica Stull, +1-303-268-6502 Investor Relations: Jeff Lawton, +1-303-268-6419 Broadgate Consultants for MIDOCEAN PARTNERS & CRESTVIEW PARTNERS Chris Tofalli, +1-212-232-2226 for ML MEDIA PARTNERS, L.P. Elizabeth McNey Yates, +1-212-980-7110 ext. 201 CENTENNIAL COMMUNICATIONS: Board OKs Base Salary Levels ------------------------------------------------------- The Compensation Committee (the "Committee") of the Board of Directors (the "Board") of Centennial Communications Corp. (the "Company") approved on June 1, 2005 the base salary levels and bonus program for fiscal 2006 for its executive officers, including the executive officers listed as "Named Executive Officers" in the Company's proxy statement for its 2004 annual meeting of stockholders. The Committee also approved grants of stock options to each of the Named Executive Officers, pursuant to the Company's 1999 Stock Option and Restricted Stock Purchase Plan. Fiscal 2006 Base Salary The following table sets forth the annual base salary levels for fiscal 2006 for the Named Executive Officers: Name Position Base Salary ---- -------- ----------- Michael J. Small Chief Executive Officer $425,000 Thomas J. Fitzpatrick Executive Vice President $325,000 Chief Financial Officer Phillip H. Mayberry President $285,000 U.S. Wireless Operations Thomas R. Cogar Executive Vice President $235,000 Chief Technology Officer Caribbean Operations Fiscal 2006 Bonus Compensation. Bonus compensation for executive officers, including the Named Executive Officers, is determined by reference to a formula that ties a target bonus objective to the achievement of certain pre-defined financial benchmarks. The financial benchmarks established by the Committee are revenue and adjusted operating income, but vary slightly with respect to certain executive officers that perform services directly for one of the Company's individual business units. Under this formula, the Company's executive officers' actual bonus amounts could be greater or less than the target bonus based on the Company's actual financial performance. In addition, an executive officers' individual bonus award may be adjusted up or down by up to 15% based on the achievement of certain personal objectives. The maximum bonus for any executive officer is 250% of target. The following table sets forth the target bonuses for fiscal 2006 for the Named Executive Officers: Name Position Target Bonus ---- -------- ------------ Michael J. Small Chief Executive Officer $500,000 Thomas J. Fitzpatrick Executive Vice President $250,000 Chief Financial Officer Phillip H. Mayberry President $250,000 U.S. Wireless Operations Thomas R. Cogar Executive Vice President $125,000 Chief Technology Officer Caribbean Operations Stock options. The Committee approved grants of options to purchase the following number of shares of the Company's common stock to the following Named Executive Officers, pursuant to the Company's 1999 Stock Option and Restricted Stock Purchase Plan: Name Position Number of Shares ---- -------- ---------------- Subject to Option ----------------- Michael J. Small Chief Executive Officer 175,000 Thomas J. Fitzpatrick Executive Vice President 125,000 Chief Financial Officer Phillip H. Mayberry President 75,000 U.S. Wireless Operations Thomas R. Cogar Executive Vice President 50,000 Chief Technology Officer Caribbean Operations The stock options have an exercise price of $13.22 and will vest in three equal installments beginning on May 31, 2006. The Company will provide additional information with regard to compensation of its Named Executive Officers in the proxy statement for its 2005 annual meeting of stockholders. CONTACT: Centennial Communications Corp. Phone: 732-919-1000 DORAL FINANCIAL: Appoints Faria to Head Subsidiary -------------------------------------------------- Doral Financial Corporation (NYSE: DRL), a diversified financial services company, announced Monday that Mr. Antonio F. Faria, a highly respected banking professional, has joined Doral to serve as President of Doral Money, Inc., a New York based subsidiary of Doral Bank, specializing in commercial and construction mortgage lending. Salomon Levis, chairman and chief executive officer of Doral Financial, stated, "We are pleased that Mr. Faria is committing his expertise to our company and to the leadership of Doral Money. Mr. Faria brings tremendous business-area expertise to Doral's commercial and construction lending business, as well as to our markets. His understanding and expertise have been developed through his distinguished careers in both the public and private sectors." Prior to joining Doral, Mr. Faria served in the public sector as President and CEO of the Government Development Bank for Puerto Rico, President and CEO of the Economic Development Bank for Puerto Rico and as the Commissioner of Financial Institutions for Puerto Rico. Prior to his public service, he had a long and successful career with Banco Central Hispano with more than 25 years of experience in Puerto Rico's banking industry. Mr. Levis further stated, "The appointment of Antonio both enhances the strength of Doral's management team as the Company continues to position itself to capitalize on the long term growth potential of its businesses, and underscores the strength of our organization and operations in attracting and retaining highly respected executive talent." Doral Financial Corporation, a financial holding company, is the largest residential mortgage lender in Puerto Rico, and the parent company of Doral Bank, a Puerto Rico commercial bank, Doral Securities, a Puerto Rico based investment banking and brokerage firm, Doral Insurance Agency, Inc. and Doral Bank, FSB, a federal savings bank based in New York City. Doral Money, Inc. is a New York based subsidiary of Doral Bank specializing in commercial and construction mortgage lending. CONTACT: Doral Financial Corporation Salomon Levis, 787-474-1111 or Richard F. Bonini or Lucienne Gigante, 212-329-3729 ============= U R U G U A Y ============= URUGUAYAN BANKS: Sluggish Loan Activity Hampers Profitability ------------------------------------------------------------- A Standard & Poor's banking analyst revealed that Uruguayan banks are still plagued by weak loan growth and poor profitability, relates Business News Americas. "The system's main weakness is its still sluggish loan activity," the analyst, Carina Lopez, said, adding low profitability with banks barely breaking even is also a problem. "If this situation continues it would be a clear sign that the financial system is over-sized either in terms of the number of institutions or their size," she said. ================= V E N E Z U E L A ================= PDVSA: In "Transition Agreement" Talks With Harvest-Vinccler ------------------------------------------------------------ Harvest Natural Resources, Inc. (NYSE: HNR) announced Friday an update on Venezuela. Harvest President and Chief Executive Officer, Dr. Peter J. Hill, said, "There have been numerous statements and reports concerning the 32 operating service agreements in Venezuela, including the agreement held by the company's Venezuelan affiliate, Harvest Vinccler, C.A. (HVCA). It is our desire to provide an update of what we know about the situation." In April, Government officials stated that PDVSA intends to limit the fees paid for oil deliveries under the operating service agreements to no more than two-thirds of the market value of the delivered oil. In addition, they have stated that a portion of the fee may be paid in U.S. dollars and a portion may be paid in Venezuelan bolivars. Hill added, "The financial impact to HVCA of these positions taken by Venezuelan Government officials is unclear at this time. However, we continue to receive assurances from the most senior officials of PDVSA that payment for our first quarter deliveries of oil and gas which was due May 31st will be received during the week ending June 10th." SENIAT, the Venezuelan income tax authority, intends to conduct an audit of all companies with operating service agreements and has announced a retroactive increase of income tax rates from 34% to 67% for 2001 and 50% for all years thereafter. SENIAT is currently conducting an audit of HVCA. The Company believes HVCA has met its tax obligations in all material respects. The Company previously announced the suspension of HVCA's drilling program in January 2005 as a consequence of delays in receiving the permits necessary to drill additional wells. Current production is approximately 23,000 barrels of oil per day (Bopd), down significantly from the 28,100 Bopd average in the first quarter. The current level of production is due to natural production declines and production curtailment by PDVSA of approximately 2,000 Bopd. Production will continue to decline until drilling is resumed and PDVSA lifts restrictions on deliveries. Due to the extended suspension of the drilling program, the Company is withdrawing its operational and financial guidance for 2005 which was previously issued December 14, 2004. HVCA has been notified that all operating service agreements are to be converted into incorporated joint ventures under the 2001 Venezuelan Organic Hydrocarbon Law (OHL) through negotiation with the contract holders. HVCA has exchanged proposals with PDVSA and is in negotiations to establish a transition agreement under which HVCA would continue operations while negotiating the migration of its operating service agreement to an "Empresa Mixta", or mixed company, under the OHL. Under the OHL, PDVSA will own a majority stake in the new company and HVCA will own the remaining stake in the joint venture. Hill said, "While very concerned about events in Venezuela, we are mindful that we and the other operating service agreement owners are involved in a process. We remain committed to seeking a mutually acceptable solution which recognizes the value of our contract." Harvest Natural Resources, Inc. headquartered in Houston, Texas, is an independent oil and gas development and production company with principal operations in Venezuela and an office in Russia. CONTACT: Harvest Natural Resources, Inc. Steven W. Tholen, Senior VP, CFO, +1-281-899-5714, Amanda Koenig, Investor Relations, +1-281-899-5716 URL: http://www.harvestnr.com PDVSA: New Gas Production Record In Anaco ----------------------------------------- The PDVSA Gas' District of Anaco, a PDVSA affiliate, reached a new operational record last May 30th when it produced 1.677 billion cubic feet per day of gas. The General Management of this industrial complex, located in the State of Anzoategui to the east of the country, reported that "this record was attained due to the effort that both the operational team and the workers have carried out after the oil sabotage (2003) which left production in 400 million cubic feet per day of gas". The General Management stressed that "the optimal performance levels achieved by this district make available 1.700 billion cubic feet per day of gas and offer a potential of 2.100 billion cubic feet per day of gas". On the other hand, the General Management announced that progress is being made in the "Traditional Areas Compression Reactivation Project" (RECAT); this project will increase production to 1.850 billion cubic feet per day of gas by August 2005 and complement the Anaco Gas Project (PGA) which has been developed in 50% and is aimed at fulfilling the increasing gas demand in the domestic market. Anaco has become the "Gas Heart of Venezuela" and a key element to foster national development, since it steadily fulfills the increasing gas demand in the domestic market. CONTACT: Petroleos de Venezuela S.A. Edificio Petroleos de Venezuela Avenida Libertador, La Campina, Apartado 169 Caracas, 1010-A, Venezuela Phone: +58-212-708-4111 Fax: +58-212-708-4661 Web site: http://www.pdvsa.com.ve PDVSA: OPEC Commission to Verify Oil Output ------------------------------------------- State oil company Petroleos de Venezuela's (PDVSA) actual oil output has become such a hot issue lately that the OPEC oil producers cartel is sending a commission to Venezuela to verify the Company's figures. Venezuela's OPEC representative Ivan Orellana said that the country is producing 3.27 million barrels a day (MB/d) and that the figures managed by PDVSA are absolutely verifiable. Any production decline is due to sabotage by US agents, according to the government. But opposition argues that inefficiency, theft and mismanagement have taken their toll on PDVSA. *********** 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. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is $575 per half-year, delivered via e-mail. 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