/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/050718.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, July 18, 2005, Vol. 6, Issue 140 Headlines A R G E N T I N A AUTO CLIPS: Court Mandates Asset Liquidation ANSWER LOGISTICA: Bankruptcy Initiated via Court Order CAB TRAC: Reorganization Wraps Up CLINICA PRIVADA: Liquidates Assets to Pay Debts CRESUD: Convertible Note Holder Exercises Conversion Right EDITORIAL LUMI: Liquidation Proceeding Initiated FRIGORIFICO LA COLORADA: Court to Oversee Reorganization FRIGORIFICO Y MATADERO: Enters Bankruptcy on Court Orders G.I. CONSTRUCTORA: Bankruptcy Process Begins By Court Order HPDA: Fitch Confirms B(arg) $162M Debenture Rating IEBA: Fitch Maintains $230M of Bonds in Default Territory INDAL S.A.: Trustee to Submit General Report JOSE FERRARINI: Court Orders Liquidation PAPELES UNIVERSALES: Initiates Bankruptcy Proceedings RUBEN NARDONE: Court Grants Reorganization Motion TRANSENER: Fitch Argentina Confirms Debt Ratings B E R M U D A FOSTER WHEELER: Wins Delayed Coker Complex for ENERCON Chile B R A Z I L NET SERVICOS: Shareholders OK Fiscal Council, Charter NET SERVICOS: Reformulates Bylaws to Meet Legal Requirements VARIG: Renews Rescue Talks With TAP Air Portugal D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: BofNY Retained as Exchange Agent, Trustee E C U A D O R PETROECUADOR: Raises Oil Output 4% in 1H05 Despite Challenges * ECUADOR: Limited Available Financing Constrains Ratings J A M A I C A DYOLL: Former COO Arrested on Charges of Insurance Fraud M E X I C O GRUPO DESC: Acquires Ponderosa Industrial Via Rexcel GRUPO FERTINAL: Local Court Rules in Mexican Claims Dispute P A R A G U A Y MILLICOM INTERNATIONAL: IFC Provides $15M to Paraguayan Unit DORAL FINANCIAL: Elects John A. Ward III as Non-Exec Chairman V E N E Z U E L A BANCO LA GUAIRA: Fogade Moves to Recover $69M in Lost Capital ROYAL SHELL: Required to Pay $131M in Unpaid Taxes - - - - - - - - - - ================= A R G E N T I N A ================= AUTO CLIPS: Court Mandates Asset Liquidation -------------------------------------------- Buenos Aires-based Auto Clips S.A. will begin liquidating its assets following the pronouncement of the city?s Court No. 6 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, Alfredo Donatti. The trustee will verify creditors? proofs of claim until Sep. 1, 2005. The validated claims will be presented in court as individual reports. Mr. Donatti will also submit a general report, containing a summary of the Company?s financial status as well as relevant events pertaining to the bankruptcy. The bankruptcy process will end with the disposal of the Company's assets in favor of its creditors. CONTACT: Mr. Alfredo Donatti, Trustee Montevideo 31 Buenos Aires ANSWER LOGISTICA: Bankruptcy Initiated via Court Order ------------------------------------------------------ Answer Logistica S.A. enters bankruptcy protection after Court No. 5 of Buenos Aires' civil and commercial tribunal, with the assistance of Clerk No. 9, 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 Marisa Gacio as trustee. Ms. Gacio will be verifying creditors? proofs of claim until the end of the verification phase on Sep. 21, 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 Nov. 3, 2005 followed by the general report, which is due on Dec. 19, 2005. CONTACT: Ms. Marisa Gacio, Trustee San Martin 793 Buenos Aires CAB TRAC: Reorganization Wraps Up --------------------------------- The reorganization of Cab Trac Argentina S.R.L. has been concluded. Data revealed by Infobae on its Web site indicated that the process was concluded after the Civil and Commercial Court No. 11 of Rosario's civil and commercial tribunal homologated the debt agreement signed between the Company and its creditors. CONTACT: Cab Trac Argentina S.R.L. Charcas 1185 Granadero Baigorria (Santa Fe) CLINICA PRIVADA: Liquidates Assets to Pay Debts ----------------------------------------------- Clinica Privada Psiquiatrica Esquirol S.A. will begin liquidating its assets following the pronouncement of the city?s civil and commercial Court No. 6 that the Company is bankrupt, Infobae reports. The bankruptcy ruling places the Company under the supervision of court-appointed trustee, Lilian Edith Rey. The trustee will verify creditors? proofs of claim until Aug. 19, 2005. The validated claims will be presented in court as individual reports. Ms. Rey will also submit a general report, containing a summary of the Company?s financial status as well as relevant events pertaining to the bankruptcy. The bankruptcy process will end with the disposal of the Company's assets in favor of its creditors. CONTACT: Ms. Lilian Edith Rey, Trustee Avda Roque Saenz Pena 651 Buenos Aires CRESUD: Convertible Note Holder Exercises Conversion Right ---------------------------------------------------------- Cresud S.A.C.I.F. y A filed a letter on July 13, 2005 with the Bolsa de Comercio de Buenos Aires and Comision Nacional de Valores stating that a holder of the Company's Convertible Notes exercised its conversion right. Hence, the financial indebted ness of the Company shall be reduced in US$50,000 and an increase of 98,463 ordinary shares face value pesos 1 each was made. The conversion was performed according to terms and conditions established in the prospectus of issuance at the conversion rate of 1.96928 shares, face value pesos 1 per Convertible Note of face value US$ 1. As a result of that conversion, the amount of shares of the Company goes from 162,784,579 to 162,883,042. On the other hand, the amount of registered Convertible Notes is US$ 40,077,544. CONTACT: CRESUD S.A.C.I.F. Y A. Gabriel Blasi, CFO Phone: 011-54-11-4323-7449 E-mail: finanzas@cresud.com.ar URL: http://www.cresud.com.ar EDITORIAL LUMI: Liquidation Proceeding Initiated ------------------------------------------------ Editorial Lumi S.R.L. of Buenos Aires will begin liquidating its assets after Court No. 19 of the city?s civil and commercial tribunal declared the Company bankrupt. Infobae reveals that the bankruptcy process will commence under the supervision of court-appointed trustee, Mabel N. Herrera. The trustee will review claims forwarded by the Company?s creditors until Oct. 13, 2005. After claims verification, Ms. Herrera will submit the individual reports for court approval on Nov. 24, 2005. The general report will follow on Feb. 2, 2006. Clerk No. 37 assists the court on this case. CONTACT: Ms. Mabel N. Herrera, Trustee Rodriguez Pena 694 Buenos Aires FRIGORIFICO LA COLORADA: Court to Oversee Reorganization -------------------------------------------------------- Frigorifico La Colorada S.A. will begin reorganization following the approval of its petition by Court No. 3 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. Estudio Escandel, Hurovich, Lopez Cepero will administer the reorganization proceedings as the court-appointed trustee. The trustee will verify creditors? claims until Sep. 29, 2005. The validated claims will be presented in court as individual reports on Nov. 11, 2005. The trustee 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 Dec. 26, 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 on June 27, 2006. Clerk No. 5 assists the court on this case. CONTACT: Estudio Escandel, Hurovich, Lopez Cepero, Trustee Tte Gral Juan D. Peron 1509 Buenos Aires FRIGORIFICO Y MATADERO: Enters Bankruptcy on Court Orders --------------------------------------------------------- Buenos Aires Court No. 3 declared Frigorifico y Matadero Pontevedra S.A. 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 trustees, Sastre, Lostao, Romano. As the trustees, they are tasked with verifying the authenticity of claims presented by the Company?s creditors. The verification phase is ongoing until Sep. 14, 2005. Following claims verification, the trustee will submit the individual reports based on the forwarded claims for final approval by the court on Oct. 27, 2005. A general report will also be submitted on Dec. 9, 2005. Infobae reports that Clerk No. 6 assists the court on this case, which will end with the disposal of the Company?s assets in favor of its creditors. CONTACT: Frigorifico y Matadero Pontevedra S.A. Avda La Plata 688 Buenos Aires Sastre, Lostao, Romano, Trustees Tucuman 1539 Buenos Aires G.I. CONSTRUCTORA: Bankruptcy Process Begins By Court Order ----------------------------------------------------------- Buenos Aires' civil and commercial Court No. 16 declared G.I. Constructora S.A. ?Quiebra,? reports Infobae. The ruling enables the Company to proceed with the bankruptcy process, which will wind up with total asset liquidation. The court, assisted by Clerk No. 32, appointed Mr. Claudio Jorge Haimovici, as receiver who will authenticate proofs of claim until Aug. 12, 2005. Afterwards, the receiver will prepare the individual reports based on the results of the authentication and then submit these reports to court on Sep. 29, 2005. After these results are processed in court, the receiver will then submit the general report on Nov. 16, 2005. CONTACT: Mr. Claudio Jorge Haimovici, Trustee Sarmiento 3843 Buenos Aires HPDA: Fitch Confirms B(arg) $162M Debenture Rating -------------------------------------------------- Fitch Argentina confirmed the B(arg) rating assigned to four series of debentures totaling US$162 million issued by Hidroelectrica Piedra del Aguila S.A. (HPDA) as part of a refinancing plan, says Business News Americas. The outlook on the rating is stable. The debentures were issued in June 2004 and will expire in 2013. HPDA is the largest private hydroelectric generator in Argentina. The Company holds a concession until Dec. 29, 2023 from the Argentine government to operate its hydroelectric facility and for the generation and sale of electricity. HPDA is located approximately 1,200 km southwest of Buenos Aires on the Limay River. IEBA: Fitch Maintains $230M of Bonds in Default Territory --------------------------------------------------------- Fitch Argentina maintains the D(arg) rating given to a total of US$230 million worth of corporate bonds issued by local holding company Inversora Electrica de Buenos Aires S.A.. According to Business News Americas, the rating applies to US$100 million class A debentures and US$130 million class B debentures. The rating reflects the company's non-payment of capital and interest on the debentures since March 2002. IEBA's only source of income is its controlling stake in local distributor Edea, whose ability to generate funds has fallen sharply due to the pesofication and subsequent rates freeze in January 2002. INDAL S.A.: Trustee to Submit General Report -------------------------------------------- Ciudad de Cordoba accountant Manuel Alberto Fada, the trustee assigned for the liquidation of local company Indal S.A., will submit the general report on Aug. 8, 2005 Infobae relates that Mr. Fada verified creditors' claims until April 29, 2005. After that, he prepared the individual reports, which he submitted in court on June 13, 2005. The city's civil and commercial Court No. 4 handles the Company's case. CONTACT: Indal S.A. Manuel Pizarro 2072 Ciudad de Cordoba (Cordoba) Mr. Manuel Alberto Fada, Trustee Avda General Paz 108 Ciudad de Cordoba (Cordoba) JOSE FERRARINI: Court Orders Liquidation ---------------------------------------- Jose Ferrarini S.A.C.I. prepares to wind-up its operations following the bankruptcy pronouncement issued by Court No. 7 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 Ms. Lidia Roxana Martin as trustee. Ms. Martin will be reviewing creditors? proofs of claim until July 26, 2005. The verified claims will serve as basis for the individual reports to be presented for court approval on Sep. 7, 2005. The trustee will also submit a general report of the case on Oct. 20, 2005. Clerk No. 13 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: Ms. Lidia Roxana Martin, Trustee Avda Cordoba 1352 Buenos Aires PAPELES UNIVERSALES: Initiates Bankruptcy Proceedings ----------------------------------------------------- Court No. 9 of Buenos Aires' civil and commercial tribunal declared Papeles Universales S.A. "Quiebra," reports Infobae. Clerk No. 17 assists the court on the case, which will close with the liquidation of the Company's assets to repay creditors. Ruben Hugo Faure, who has been appointed as trustee, will verify creditors' claims until Oct. 14, 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 Nov. 30, 2005, followed by the general report on Feb. 29, 2006. CONTACT: Mr. Ruben Hugo Faure, Trustee Avda Rivadavia 1227 Buenos Aires RUBEN NARDONE: Court Grants Reorganization Motion ------------------------------------------------- Ruben Nardone S.R.L. successfully petitioned for reorganization after Court No. 14 of Rosario's (Santa Fe) civil and commercial tribunal issued a resolution opening the Company?s insolvency proceedings. Under insolvency protection, the Company will continue to manage its assets subject to certain conditions imposed by Argentine law and the oversight of a court-appointed trustee. Infobae relates that Juan Carlos Blanco will serve as trustee during the course of the reorganization. The trustee will be accepting creditors? proofs of claim for verification until July 7, 2005. After verification, the trustee will prepare the individual reports and submit it in court on Sep. 1, 2005. He will also present a general report for court review on Oct. 28, 2005. The Company will endorse the settlement proposal, drafted from the submitted claims, for approval by the creditors during the informative assembly scheduled on April 12, 2006.. CONTACT: Ruben Nardone Saa Pereyra 619 Acebal Rosario (Santa Fe) Mr. Juan Carlos Blanco, Trustee San Lorenzo 1131 Rosario (Santa Fe) TRANSENER: Fitch Argentina Confirms Debt Ratings ------------------------------------------------ The Argentine arm of Fitch Ratings has confirmed its B(arg) rating on US$238 million debentures issued by local transmission company Transener as part of its debt restructuring process, reports Business News Americas. The outlook on the rating is stable. At the same time, Fitch affirmed its D(arg) rating on US$525 million debentures issued by Transener, of which only US$12.4 million remains outstanding. The completion of Transener?s debt restructuring process on June 30, 2005, reduced the Company?s total debt by about 50% to about US$285 million and smoothed its debt maturity profile, providing some relief to the Company's cash flow. CONTACT: TRANSENER S.A. Paseo Colon 728 6th Floor (1063) Buenos Aires Republica Argentina Tel: (54-11) 4342-6925 Fax: (54-11) 4342-7147 Email: info-trans@transx.com.ar Web site: http://www.transener.com.ar ============= B E R M U D A ============= FOSTER WHEELER: Wins Delayed Coker Complex for ENERCON Chile ------------------------------------------------------------ Foster Wheeler Ltd. (Nasdaq: FWLT) announced Thursday that its Madrid-based subsidiary Foster Wheeler Iberia, S.A. has been awarded a contract for the engineering, procurement and construction (EPC) of a new delayed coker complex at Empresa Nacional de Petroleo's (ENAP) Aconcagua refinery at Concon, Chile. The project, which will use Foster Wheeler's SYDEC(SM) delayed coking technology, will be executed by a consortium led by Foster Wheeler, with two other international companies. ENAP, Chile's state-owned oil company, and its refining unit ENAP Refinerias, will have a combined 49% stake in the special- purpose company ENERCON (Energia Concon), and Foster Wheeler and its two consortium partners will each hold 17%. The total investment of the complex is about US$430 million. The contract value was not disclosed. The project will be included in Foster Wheeler's third-quarter 2005 bookings. "This EPC award marks the successful conclusion of a long process, which started with an exhaustive feasibility study, followed by the execution of the basic design," commented Jesus Cadenas, managing director of Foster Wheeler Iberia S.A. "This is a strategic project for the refinery. Using our leading-edge delayed coking technology, ENAP will be able to process cheaper, heavier crudes and to upgrade the heavy fuels it produces into lighter, more valuable products, such as liquefied petroleum gas, naphtha and diesel." The new facility includes a new 20,000 barrels per stream day delayed coker, auxiliary units, including sulfur recovery, sour water stripper, amine regeneration, coke handling and wastewater treatment, as well expanded utilities. Foster Wheeler Iberia, in collaboration with its consortium partners, will execute the project on a lump-sum turnkey basis. The process design package has been prepared by Foster Wheeler's coking center of excellence in Houston. The new complex is expected to start up in the first half of 2008. Foster Wheeler Iberia S.A. is a subsidiary of Foster Wheeler Continental Europe, wholly-owned by Foster Wheeler Ltd. Based in Corsico (Milano) Italy, Foster Wheeler Continental Europe also manages Foster Wheeler Italiana (Corsico), Foster Wheeler France (Paris), Foster Wheeler Bimas (Istanbul), Foster Wheeler Hellas (Athens), Steril Schweiz AG (Basel) and Foster Wheeler Chile (Santiago). 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, petrochemical, 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. United States Maureen Bingert Phone: 908-730-4444 E-mail: maureen_bingert@fwc.com or Italy Cristiana Monti Phone: 39-02-4486-2135 E-mail: cristiana_monti@fwceu.com or Spain Nicole Veron Phone: 34-91-336-2712 E-mail: nicole_veron@fwiberia.fwc.com or Other Inquiries Phone: 908-730-4000 URL: www.fwc.com =========== B R A Z I L =========== NET SERVICOS: Shareholders OK Fiscal Council, Charter ----------------------------------------------------- The shareholders of Net Servicos De Comunicacao S.A. approved the establishment of the Company's permanent Fiscal council and its Charter, to be filed at the Company's headquarters, as well as the election of its members who will hold their positions until the 2006 annual general meeting takes place. SUMMARY OF THE EXTRAORDINARY GENERAL MEETING HELD ON JULY 12, 2005 DATE, TIME AND VENUE: On July 12, 2005, at 11:00 am, at the Company?s headquarters located at Rua Verbo Divino, 1356 ? 1 andar, Chacara Santo Antonio, in the city of Sao Paulo, State of Sao Paulo. ATTENDANCE: The Shareholders holding over ninety percent (90%) of the voting stock, as signatures stated in the Shareholders? Attendance Book, attended the Meeting. PRESIDING BOARD: LEONARDO PORCIUNCULA GOMES PEREIRA ? Chairman and ANDRE MULLER BORGES ? Secretary. CALL: The call notice was published in the newspaper Valor Economico and in the Official Gazette of the State of Sao Paulo on June 25, 28 and 29, 2005. AGENDA: a) To redraft CHAPTER V ? FISCAL COUNCIL ? of the Company?s Bylaws to make it permanent and adapt it to the provisions of the Sarbanes-Oxley Act; b) To establish an Fiscal Council, elect its sitting and alternate members and set their compensation; c) To amend Article 5 of the Company?s Bylaws to reflect the Company?s capital increase approved by the Board of Directors at the meeting held on May 10, 2005, from R$2,748,650,800.00 to R$3,387,408,498.71, resulting from the issuance for private subscription within the authorized capital limit of 745,147,153 common shares and 1,079,874,843 preferred shares, all non-par registered book-entry shares, at the issuance price of R$0.35 per common and preferred share. DELIBERATIONS: The deliberations were approved by unanimous vote of the attending shareholders. These minutes were drawn up in the summary format of the events occurred, as provided for in paragraph 1 of Article 130 of Law 6,404/76. The publication of these minutes with the omission of the shareholders? signatures is herein authorized, as set forth by paragraph 2 of Article 130 of Law 6.404/76: a) The shareholders approved the reformulation of CHAPTER V ? FISCAL COUNCIL ? of the Company?s Bylaws to make the Fiscal Council permanent and adapt it to the provisions of the Sarbanes-Oxley Act. b) The shareholders approved the establishment of the Company?s permanent Fiscal council and its Charter, which shall be filed at the Company?s headquarters, and the election of its members who will hold their positions until the 2006 annual general meeting takes place: i) The shareholders DISTEL HOLDING S.A., GB EMPREENDIMENTOS E PARTICIPACOES S.A and LATAM DO BRASIL PARTICIPACOES S.A., indicated Messrs Charles Barnsley Holland, Brazilian, married, accountant, bearer of Identity Card (RG) number 12.782.315 (SSP-SP) and enrolled in the Individual Taxpayer Registry of the Ministry of Finance (CPF/MF) under number 379.343.258 -00, residing and domiciled at Rua Miranda Montenegro, 144, in the city of Sao Paulo, State of Sao Paulo, and Martin Roberto Glogowsky, Brazilian, married, lawyer and business administrator, bearer of Identity Card (RG) number 4.700.146 (SSP-SP) enrolled in the CPF under number 861.682.748 -04, residing and domiciled at Rua Barao de Santa Eulalia, 170 Ap. 52, in the city of Sao Paulo, State of Sao Paulo, who were elected . ii) At a separate meeting without the attendance of the controlling shareholders, under the terms of Article 161, S 4 a, of Law 6.404/76, the preferred shareholders unanimously elected Mr. Antonio Jose Alves Junior, a Brazilian citizen, married, economist, bearer of Identity Card number 06692026-5 - IFP/RJ, enrolled in the Individual Taxpayers Registry of the Ministry of Finance (CPF/MF) under number 849.079.327 -15, residing and domiciled at Avenida Edson Passos, n 603/301, Alto da Boa Vista, Tijuca, in the city and State of Rio de Janeiro, who was indicated by the shareholder BNDES PARTICIPACOES S.A. - BNDESPAR. The newly elected Board Members assumed their positions by signing the assumption of office agreements. They declared they are not impeded from performing business activities. The General Meeting set the annual global compensation for the Fiscal council of up to R$400,000.00 (four hundred thousand reais) for year 2005. The General Meeting also approved a budget for the Fiscal council of R$ 100,000.00 (one hundred thousand reais) for year 2005. c) The shareholders approved the amendment of Article 5 of the Company?s Bylaws to reflect the approval of capital increase from R$2,748,650,800.00 to R$3,387,408,498.71 by the Board of Directors at the meeting held on May 10, 2005, whose minutes were registered with the S?o Paulo State Trade Board on May 16, 2005. That capital increase resulted from the issuance for private subscription within the authorized capital limit of 745,147,153 common shares and 1,079,874,843 preferred shares, all non-par registered book-entry shares, at the issuance price of R$0.35 per common and preferred share. Article 5 will have the following wording: "Article 5 ? The Company?s Capital Stock is R$3,387,408,498.71 (three billion, three hundred eight seven million, four hundred eight thousand, four hundred ninety eight reais, seventy one centavos), divided into 1,573,518,496 (one billion, five hundred seventy three million, five hundred eighteen thousand, four hundred ninety six) common shares and 2,280,359,030 (two billion, two hundred eighty million, three hundred fifty nine thousand an thirty) preferred shares, all non-par registered book-entry shares. The Capital Stock may be increased by up to R$5,000,000,000.00 (five billion reais), regardless of statutory amendment, as provided for by Article 168 of Law 6,404/76, by resolution of the Board of Directors, which shall determine the issuance conditions, under the terms of paragraph 1 of Article 170 of Law 6,404/76." d) Due to the amendments above, the shareholders approved the Bylaws consolidated by the Company. Finally, the shareholders amended and restated the deliberation in item b. (iii) of the Annual General Meeting held on April 29, 2005 to state that Mr. JOSE FORMOSO MARTINEZ, a Mexican citizen, married, engineer, bearer of the ID Card for Foreigners (RNE) V405864-B, enrolled in the Individual Taxpayer Registry (CPF/MF) under number 059.557.727 -07, domiciled at Av. Presidente Vargas, 1012, 15 andar, CEP 22271-100, in the City and State of Rio de Janeiro, was only indicated by the shareholder LATAM DO BRASIL PARTICIPACOES S.A. for the position of sitting member of the Company?s Board of Directors. His assumption of office will depend on the authorization by the Brazilian proper authorities, without prejudice for his substitute Mr. JORGE DA GAMA BRAGA NETO to attend and deliberate at the Board of Directors? meetings until Mr. JOSE FORMOSO MARTINEZ effectively takes office. CONTACT: NET SERVICOS DE COMUNICACAO Investor Relations: Marcio Minoru Phone: 011-5511-2111-2811 Email: minoru@netservicos.com.br Sandro Pina Phone: 011-5511-2111-2721 Email: sandro.pina@netservicos.com.br http://www.netservicos.com.br NET SERVICOS: Reformulates Bylaws to Meet Legal Requirements ------------------------------------------------------------ The shareholders of Net Servicos De Comunicacao S.A. approved in a meeting held on July 12, 2005 the reformulation of CHAPTER V ? FISCAL COUNCIL ? of the Company?s Bylaws to make the Fiscal Council permanent and adapt it to the provisions of the Sarbanes-Oxley Act which shall take effect with the following wording: "CHAPTER V ? FISCAL COUNCIL Art. 20 ? The Company shall have a permanent Fiscal council, elected and convened by the general meeting, which shall be comprised of at least 3 (three) and at most 5 (five) sitting members, with an equal number of alternate members, all of whom shall be individuals domiciled in Brazil and holders of a graduation degree, or who have held for at least 3 (three) years the position of business administrators or Head of Fiscal Council; at least 1 (one) amongst them shall be a financial specialist. Paragraph 1 ? The members of the Fiscal council and their alternates shall hold their positions until the holding of the first annual general meeting after their election. They are eligible for reelection. Paragraph 2 ? In addition to those persons listed in paragraphs of the Article 147 of Law 6,404/76, the following persons are not eligible for the Fiscal council: members of administrative bodies and employees of the Company, its controlled companies or companies from the same group, and spouses or relatives, up to the third degree, of members of the Company?s management. Paragraph 3 ? The members of the Fiscal council shall be invested in office by means of the execution of a deed of appointment drawn up in the Book of Minutes and Opinions of the Fiscal council, which deed shall include a declaration by the latter that (i) they are aware of the shareholders? agreements duly registered at the Company?s headquarters, mentioned in the Article 37 hereof, and (ii) they undertake to observe the full content of said agreements. Paragraph 4 ? The investiture of the members of the Fiscal council shall be subject to a prior subscription to the Deed of Management Consent mentioned in the BOVESPA Level 2 Rules. Paragraph 5 ? The Fiscal council shall have a Chairman elected by a majority vote of its members, immediately after they are invested in office. Art. 21 ? The remuneration of the members of the Fiscal council, as well as its annual budget, shall be approved by the general meeting that elects them. Art. 22 ? The Fiscal council shall meet ordinarily once a month, and extraordinarily whenever corporate interests require its members to pronounce themselves and in the cases provided for by the law and by these bylaws, by means of a summons conveyed through an electronic message, 7 (seven) days ahead of time, issued by the Chairman of the Fiscal council or by any of its members, pursuant to its Bylaws. Art. 23 - It is incumbent upon the Fiscal council to: I) propose to the Board of Directors the appointment of independent auditors and the person responsible for the Company?s internal auditing, as well as to oversee their activities under the terms hereof, in conjunction with the Company?s Management; II) issue its opinion of the Company?s auditing policies and annual auditing plan, submitted by the party responsible for the Company?s internal auditing, as well as their execution; III) monitor the results of the Company?s internal auditing and identify, prioritize and propose to the Board of Directors actions to be taken in connection with the Board of Executive Officers; IV) supervise the work of the independent auditors; V) set forth procedures for receiving, maintaining and addressing complaints and accusations regarding accounting practices, internal accounting controls and auditing problems, including procedures that enable the submission of confidential and anonymous complaints and accusations by the Company?s employees concerning questionable accounting practices and auditing problems; VI) select an external consultant to help to verify any fact, clarification of which is necessary in order for it to perform its functions better, defining the fees at a reasonable level that reflects what is current in the market and compatible with the Company?s economic dimensions, which fees shall be paid by the latter; VII) meet, at least once a quarter, with the independent auditors, in order to obtain clarifications or information, as well as to verify specific facts; VIII) ensure compliance with the Fiscal council?s Bylaws; IX) help to implement or change the Company?s accounting practices; X) oversee, through any of its members, the actions of the company?s management and check on the fulfillment of its legal and statutory duties; XI) issue its opinion of the annual management report, and include in its opinion the complementary information it considers necessary or useful for the deliberations of the general meeting; XII) issue its opinion regarding the proposals of the management bodies, to be submitted to the general meeting, concerning changes in the company?s capital structure, the issuance of subscription warrants or debentures, investment plans or capital budgets, distribution of dividends, transformation, incorporation, merger or spin-off; XIII) disclose through any of its members to the management bodies and, if the latter fail to take the necessary measures for protecting the Company?s interests, to the general meeting, the errors, fraud or crimes that it may discover and propose that measures useful to the Company be taken; XIV) call an annual general meeting if the management bodies delay calling this meeting by more than 1 (one) month, and call an extraordinary general meeting, whenever grave or urgent matters so require, and include the matters it deems necessary in the agenda of such meetings; XV) analyze, at least once per quarter, the trial balance sheet and the other financial statements periodically prepared by the Company; XVI) examine the financial statements for the fiscal year and issue an opinion of them; XVII) exercise the duties conferred upon it, as described in this chapter, during liquidation, given the special provisions that regulate the latter; XVIII) attend the meetings of the Board of Directors and of the Board of Executive Officers at which the following are discussed: (i) the Company?s annual management report; (ii) any changes to the company?s capital stock, the issuance of subscription warrants or debentures, the investment plans or capital budgets, the distribution of dividends, the transformation, incorporation, merger or spin-off of the Company; and (iii) the financial statements for the fiscal year." VARIG: Renews Rescue Talks With TAP Air Portugal ------------------------------------------------ Brazil's flagship airline Varig has resurrected discussions with TAP Air Portugal about a scheme to save the debt-laden carrier from bankruptcy. TAP has hired the investment bank J.P. Morgan as a financial adviser for a deal in which the Portuguese carrier would buy a 20% stake in Varig, according to Varig Chairman David Zylberstajn. Varig's press office confirmed Zylberstajn's remarks and said the carrier was in preliminary talks with other possible investors. TAP and Varig had been discussing a plan under which Portugal's state-owned airline would invest an undisclosed sum in Varig and receive a stake of up to 20% in the Brazilian carrier. But Varig's bankruptcy filing in June effectively voided the memorandum of understanding between the two companies. On July 12, a Rio bankruptcy court gave Varig 60 days to present its restructuring plan. Zylberstajn said the current proposal would create a new company, to be called Nova Varig. Under the plan, Varig's current controlling shareholder, the Rubem Berta Foundation, would hold no more than 10% of the new company. The foundation, which represents Varig employees, had blocked previous attempts to restructure the airline. But on Wednesday it agreed to relinquish control and hired Lufthansa Consulting to draw up a restructuring plan. Zylberstajn also revealed that Varig was in preliminary talks with other possible investors. CONTACT: VARIG S.A. (Viacao Aerea Rio-Grandense) Avenida Almirante Silvio de Noronha, 365 Rio de Janeiro, RJ 20021-010 Brazil VICENTE CERVO - FOREIGN REPRESENTATIVE OF VARIG Attorneys for the Foreign Representative: PILLSBURY WINTHROP SHAW PITMAN LLP 1540 Broadway New York, New York 10036-4039 (212) 858-1000 (Phone) (212) 858-1500 (Fax) Rick B. Antonoff (RBA-4158) =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REPUBLIC: BofNY Retained as Exchange Agent, Trustee --------------------------------------------------------------- The Bank of New York, a global leader in securities servicing, acted as exchange agent in the Dominican Republic's recent bond exchange offer. The Bank was also appointed to act as trustee for the newly exchanged bonds. The exchange offer, which was launched on April 20, 2005, and expired May 4, 2005, encompassed approximately $1 billion in outstanding eligible securities that were swapped for newly issued exchange bonds. As the exchange agent in this transaction, the Bank's New York and Luxembourg offices received and processed electronic tenders from investors holding bonds in Euroclear, Clearstream, and the DTC throughout the 14-day offer period. Bondholders who tendered valid securities received exchange bonds, including 9.04% par bonds due 2013-18 and 9.50% par bonds due 2007-11. The successful bond exchange achieved a 94% participation rate and provided both short-term liquidity and medium-term financing for the Republic. Julio Ortega-Tous, chairman of the Council of Economic Advisors to the Executive Branch and Chief Debt Negotiator for the Dominican Republic, said, "The Dominican Republic's recent bond exchange was a complete success and marks an important milestone in the country's ongoing financial restructuring. This was made possible by the outstanding efforts put forth by the Dominican Republic's team of international advisors and agents, including The Bank of New York, whose timely execution as exchange agent was critical to the process." Karen B. Peetz, executive vice president and Head of the corporate trust services division at The Bank of New York, said, "This mandate with the Dominican Republic is one of a number of recent appointments related to debt restructuring in the Latin American market which require us to develop and deliver customized service and technological solutions to meet the unique needs of the issuer. Our experience and success with handling large, complex transactions like the Dominican Republic exchange positions The Bank of New York to be the leading trustee for future financing activities in the region." The Bank of New York has been conducting business in Latin America for over 100 years. The Company has representative offices in Argentina, Mexico and Brazil, and offers a full range of securities servicing, global payments, asset management and trade finance products. The Bank is committed to Latin America and to growing its business as the capital markets develop in the region. The Bank of New York is a leading provider of corporate trust and agency services. The Bank and its subsidiaries and affiliates administer a portfolio of more than 90,000 trustee and agency appointments, representing more than $2.7 trillion in outstanding securities for more than 30,000 clients around the world. The Bank is a recognized leader for trust services in several debt products, including corporate and municipal debt, mortgage-backed and asset-backed securities, derivative securities services and international debt offerings. The Bank of New York Company, Inc. (NYSE: BK) is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, investment management, and individual & regional banking services. The Company's extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. This announcement is not an offer to sell or a solicitation of an offer to buy any securities. The offering is made only by means of the prospectus. CONTACT: The Bank of New York Kevin Heine Tel: 212-635-1569 URL: www.bankofny.com ============= E C U A D O R ============= PETROECUADOR: Raises Oil Output 4% in 1H05 Despite Challenges ------------------------------------------------------------- Despite lack of capital for investment and additional problems affecting its production on state-owned oil fields, state oil company Petroecuador managed to increase its production on the fields by 4% in the first half of the year. According to a Business News Americas report, the Company?s oil output in the fields during the period reached 36.2 million barrels (Mb) from 34.8Mb in the comparable period last year. Production averaged 199,178 barrels a day (b/d) over the six- month period, Petroecuador said, adding that production has averaged more than 201,000b/d over the last two weeks. Petroecuador president Carlos Pareja expects production to rise to around 203,000b/d by year-end. The Company reported US$1bn in revenues from crude exports alone in the first half, up 39.5% year-on-year due to high international crude prices. * ECUADOR: Limited Available Financing Constrains Ratings --------------------------------------------------------- Credit Rating: CCC+/Stable/C Rationale The ratings on the Republic of Ecuador are constrained by limited available financing and a structure of fiscal accounts that is inflexible and vulnerable to a downturn in oil prices. Given conflicting policy signals and the probable setback to fiscal institutions, the private sector has a limited appetite for refinancing government debt coming due. In addition, multilateral agencies are less likely to disburse the full amount of exceptional financing expected by the government. At the same time, Ecuador's limited expenditure flexibility impairs its ability to absorb a significant reduction in financing. The central government's payroll expenses are projected to double by year-end 2005 from 2001 results. Subsidies on pensions and petroleum derivatives (including cooking gas) further constrain its room to maneuver. Interest and other nondiscretionary spending (earmarked revenue and transfers to local governments) also contribute to expenditure rigidities. Ecuador's challenging political environment also weighs upon the rating. Conflicting interests and strong regional divisiveness have precluded successive governments from a significant commitment?or the ability?to enact any reform that could permit this resource-rich nation to achieve its significant growth potential and reduce poverty. The unfolding of political events in Ecuador, culminating with the April 20, 2005, ouster of President Lucio Guti,rrez, underscore Standard & Poor's assessment that Ecuador has one of the weakest and most unpredictable political and institutional environments among its 107 rated sovereigns. Economic challenges and vulnerabilities limit diversified economic growth and poverty reduction. As a small, open, commodity-dependent economy, Ecuador's growth is vulnerable to external shocks. Given declining oil production by Petroecuador (the government-owned oil company), raising private-sector oil production further to leverage increased export capacity afforded by the country's second oil pipeline (OCP) is necessary to bolster this sector over the medium term. However, government policies and disputes with foreign direct investors discourage such activity. Ecuador's economy has stabilized since the 1999-2000 economic and banking sector crisis that led to default by the government on its debt, supporting its creditworthiness. Inflation has declined substantially to that of its trading partners from more than 90% in 2000, when the economy was officially dollarized. Inflation is projected to average 2.5% in 2005, which is little changed from 2.7% in 2004. Real GDP growth is projected to decelerate to about 3.5% in 2005 from 6.9% in 2004, as the base effect from the sharp increase in oil production following completion of OCP dissipates. Growth in the nonoil sector, however, is expected to remain subdued in 2005. Outlook The stable outlook underscores the evenly balanced pressures on the rating. Creditworthiness could improve with consistent policy signals backed by prudent fiscal performance that, in turn, restore confidence in government policy and improve the outlook for access to financing. The rating could be lowered again if it becomes apparent that debt-management capabilities are further impaired, the projected fiscal outturn weakens, or instability surfaces in the here-to-date, little-changed level of deposits in the banking system. Primary Credit Analyst: Lisa M Schineller, New York (1) 212- 438-7352; lisa_schineller@standardandpoors.com ============= J A M A I C A ============= DYOLL: Former COO Arrested on Charges of Insurance Fraud -------------------------------------------------------- Mark Thwaites, the former Chief Operating Officer of bankrupt Dyoll Insurance Company, was arrested Wednesday and charged with four counts of breaches of the Insurance Act. Mr. Thwaites, who resigned from his COO post five months ago, was charged by members of the Financial Investigation Division (FID) and taken before the Corporate Area Criminal Court, where he was offered bail in the sum of $1.5 million by Resident Magistrate Judith Pusey. Mr. Thwaites' lead attorney, Winston Spaulding, QC declined to comment in any detail on his client's likely defense, saying that they had not received sufficient information about the charges. Dyoll's problems began late last year following a deluge of claims arising from property damage as a result of Hurricane Ivan last September. The vast majority of the claims originated from the Cayman Islands, amounting to $850 million and contributed to the Company's deficit of $1.1 billion, wiping out its capital base. Mark and his brother Stephen Thwaites, Chief Executive Officer, departed Dyoll in February amidst allegations by the Dyoll Group board, chaired by Peter Lawson, that the brothers had misled directors. Lawson is a senior executive and strategist at National Commercial Bank, which owned a 40% chunk of Dyoll. Two weeks after the Thwaites brothers' formal resignation, the Financial Services Commission (FSC), the regulators, took control of the flagging company, naming Ken Tomlinson as temporary manager. Tomlinson recommended that Dyoll be wound up. Dyoll is now under the control of Trustee in Bankruptcy Keith Hartley Cooper, who was appointed provisional liquidator by the court. Cooper will meet July 28 with Dyoll creditors, policyholders and other claimants to discuss settlement of claims, and to appoint a liquidator to wind up the Company. Creditors have until noon on July 26 to submit their claims against Dyoll. =========== M E X I C O =========== GRUPO DESC: Acquires Ponderosa Industrial Via Rexcel ---------------------------------------------------- DESC, S.A. de C.V. (BMV: DESC), through its unit Rexcel, has acquired Ponderosa Industrial de Mexico?s particleboard operations for an undisclosed amount, reports Dow Jones Newswires. With the acquisition, DESC expects to expand its particleboard and laminates sales by 50% to more than US$100 million a year. DESC has been selling assets in recent years. However, the Company?s latest acquisition is part of its business plan that includes "not only divesting, but also investing" in industries where it sees opportunities for growth. DESC, S.A. de C.V. (BMV: DESC) is one of the largest industrial groups in Mexico, with 2004 sales of approximately US$2 billon and nearly 14,000 employees, which through its subsidiaries is a leader in the Automobile Parts, Chemical, Food and Property sectors. Rexcel S.A. de C.V., is a major North American fully integrated manufacturer of decorative high pressure laminates, melamine board and particleboard based in Mexico. Rexcel products are sold primarily thorough distributors and OMEs in Mexico, United States, Canada as well as Central and South America. Rexcel is operated as an autonomus company held by DESC Group of companies that is in the top with the largest companies in Mexico. CONTACT: Grupo DESC In Mexico Marisol Vazquez-Mellado Jorge Padilla Phone: (5255) 5261-8044 E-mail: ir@DESC.com.mx In the U.S. Maria Barona Melanie Carpenter Phone: 212-406-3690 E-mail: DESC@i-advize.com URL: www.DESC.com.mx GRUPO FERTINAL: Local Court Rules in Mexican Claims Dispute ----------------------------------------------------------- ING Comercial America, the insurance company of ING in Mexico, has been notified by a local court in Mexico City about a ruling in the judicial process with regard to a civil claim involving the Mexican company Grupo Fertinal S.A. and certain affiliates. According to this ruling, regardless of the actual damage sustained that resulted in the underlying claim, Grupo Fertinal has been awarded approximately US$275 million under the policy, plus consequential damages of US$25 million. ING Comercial America is studying the ruling and intends to appeal. ING expects that, after the final outcome of this judicial procedure, the risk in the policy will be adequately covered by provisions taken as well as reinsurance coverage. As has previously been announced, ING Comercial America has been involved in a judicial procedure with Grupo Fertinal S.A. since the hurricane 'Juliette' in September 2001 caused damage to mines of Fertinal in the Mexican state of Baja California Sur. The dispute involves what amounts are due for certain hurricane-related damages under the insurance policy issued to Fertinal. ING is a global financial institution of Dutch origin offering banking, insurance and asset management to over 60 million private, corporate and institutional clients in over 50 countries. With a diverse workforce of about 113,000 people, ING comprises a broad spectrum of prominent companies that increasingly serve their clients under the ING brand. PRESS ENQUIRIES: ING Group, The Netherlands Dailah Nihot Tel: +31 20 541 6516 URL: dailah.nihot@ing.com ING Americas, USA, Dianne Bernez Tel: +1 770 618 3910 URL: Dianne.Bernez@us.ing.com =============== P A R A G U A Y =============== MILLICOM INTERNATIONAL: IFC Provides $15M to Paraguayan Unit ------------------------------------------------------------ The International Finance Corporation, the private sector arm of the World Bank Group, will provide $15 million to Telefonica Celular del Paraguay S.A. (Telecel), a subsidiary of Millicom International Cellular S.A., to help upgrade and expand the company?s cellular telecommunications network in Paraguay. IFC?s financing will encourage further development of the country?s communications sector while supporting private participation in infrastructure projects. ?IFC is pleased to have another opportunity to develop its relationship with Millicom, one of the first telecommunications operators focusing exclusively on emerging markets. This investment demonstrates that telecommunications services can be provided effectively by the private sector, and it should serve to encourage other foreign lenders and investors to reenter the market in Paraguay,? said Mohsen Khalil, Director of IFC?s Global Information and Communication Technologies Department. Atul Mehta, IFC?s Director for the Latin America and Caribbean region, said, ?We are very pleased to make this investment in Telecel. It reflects our dual objectives of supporting the development of Paraguay's private sector and its infrastructure." Telecel is the leading telecommunications operator in Paraguay, offering nationwide mobile telephony services and Internet access, as well as public telephony services in rural areas. ?Telecel is in the process of building a nationwide overlay to our existing network, in order to provide customers with improved access and services. Our company will finance these investments from our operating cash flow and this $15 million loan from IFC,? said Ricardo Maiztegui, General Manager of Telecel. Telecel was awarded its license to provide mobile services in 1991, and it began commercial operations the following year. The company has since been awarded additional licenses to provide dial-up and broadband Internet access, as well as public telephony services. The company is owned 96 percent by Millicom International Cellular S.A. and 4 percent by La Estrella Solitaria S.A., a holding company incorporated in Paraguay with interests in construction, real estate, and telecommunications. CONTACT: Millicom International Cellular S.A. Phone: 352 27 759 101 Fax: 352 27 759 359 URL: http://www.millicom.com DORAL FINANCIAL: Elects John A. Ward III as Non-Exec Chairman ------------------------------------------------------------- Doral Financial Corporation (NYSE:DRL - News), a diversified financial services company, today announced that the Board of Directors has unanimously elected John A. Ward, a highly experienced professional in the financial services, banking and mortgage industries, as non-executive Chairman of the Doral Board. Mr. Ward's addition to the Board underscores the Company's commitment to strong corporate governance and independence with respect to both the Company's and management's performance. Mr. Ward's prior experience includes serving as Chairman and CEO of American Express Bank from 1996 until 2000. Prior to joining American Express, Mr. Ward was an executive for 27 years at The Chase Manhattan Bank, during which time he served as CEO of Chase Bankcard Services and President and CEO of Chase Personal Financial Services, a nationwide retail mortgage and home equity lender. He also serves as an independent director of several boards of directors of publicly held companies. Mr. Ward will work closely with Salomon Levis who, in turn, will dedicate his full time as Chief Executive Officer to further expand Doral's franchise in Puerto Rico and the U.S. mainland. Zoila Levis will continue her responsibilities as President and Chief Operating Officer. Mr. Levis stated, "This action by our Board of Directors serves the best interests of Doral and its shareholders. First, the separation of the office of Chairman of the Board from that of Chief Executive Officer is an important element in ensuring the most effective corporate governance system at Doral. Second, it will allow me to focus my full energies on strengthening further the Doral franchise and pursuing new business opportunities for the Company in Puerto Rico and the U.S. mainland. Third, with John Ward assuming the role of non- executive Chairman, Doral, its Board, and shareholders will benefit from enhanced industry experience and independent objectivity regarding management, business strategy, controls and procedures, and performance. "I look forward to working closely with John, whose experience in the financial services sector, which includes familiarity across a range of operational environments makes him the right person to assume the post of non-executive Chairman of Doral. As shown with the recent appointment of highly-respected banker Antonio F. Faria, John's election further underscores the strength of our Company in attracting highly talented professionals. As we move forward to bring the restatement process to a conclusion and, in turn, adapt our business model, John's judgment, strategic expertise and independence should prove invaluable." Mr. Ward stated, "I am convinced that Doral is a strong company with highly attractive market positions and the potential to build substantial value as a business. I am confident that I will be able to draw upon my years of experience in the wholesale and retail financial services markets to add value to Doral. The priority for me in my role with Doral is to make sure on behalf of the Board and shareholders that management is pursuing a sound business strategy, that performance goals by the Corporation are being realized, and that, in executing its strategy, Doral is enhancing its long term value for shareholders." 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. CONTACT: DORAL FINANCIAL CORPORATION Richard F. Bonini, 212-329-3729 or Lucienne Gigante, 212-329-3733 ================= V E N E Z U E L A ================= BANCO LA GUAIRA: Fogade Moves to Recover $69M in Lost Capital ------------------------------------------------------------- Loan guarantee fund Fogade has filed a claim against the representatives of Banco La Guaira to recoup some VEB183 billion (US$69.4mn) owed in capital and interest resulting from the country?s financial crisis in 1994. But, according to Business News Americas, analysts are doubtful if the entity can collect any money since the assets of Banco La Guaira are already in the hands of Fogade. "If the lawsuit was against the former shareholders, maybe the story would be different," a Fitch Ratings' analyst was quoted as saying. The 1994 crisis in Venezuela resulted in 13 banks being closed down, while larger banks in the system expanded by absorbing the majority of deposits held by defunct banks. Banco La Guaira is one of the banks that were intervened during the crisis. ROYAL SHELL: Required to Pay $131M in Unpaid Taxes -------------------------------------------------- Venezuela's tax agency Seniat ordered oil giant Royal Dutch Shell Group (RD SC) to pay US$131 million in unpaid taxes owed from the years 2001 through 2004. The move is part of a clampdown on alleged tax avoidance by foreign firms, which according to Venezuelan authorities, owe up to US$3 billion in unpaid taxes. President Chavez has sought to maximize income from foreign- held contracts. His government is reviewing all foreign investment in the mining industry to see if it provides maximum benefits to the country. Seniat also seized computer equipment from the offices of U.S. oil company Chevron Corp. on Thursday for its alleged refusal to hand over information related to its tax paying obligations, tax agency officials said in a statement late in the day. Seniat staffers had been asking for the information for the past 15 days, the statement noted. *********** 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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