/raid1/www/Hosts/bankrupt/TCRLA_Public/050719.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Tuesday, July 19, 2005, Vol. 6, Issue 141
Headlines
A R G E N T I N A
AEROLINEAS ARGENTINAS: Ups Passenger Traffic in 1H05
AEROLINEAS ARGENTINAS: Additional Route Beginning in October
BANCO GALICIA: Tarjeta Naranja Shareholders OK $50M Bond Issue
EDELAP: Revised Government Contract Includes Rate Hike
LA ESTIBADORA: Court Orders Asset Liquidation
SIDERAR: Fires Up Briquette Plant as Part of Expansion Plan
THE AMERICAN FOOD: To Present Settlement Proposal to Creditors
TUNGHAI S.R.L.: Court Designates Trustee for Liquidation
B R A Z I L
MRS LOGISTICA: BNDES Funds $109M to Buy 716 Cargo Railcars
TELEMAR: Announces Fixed-Mobile Service Rate Increase
TELEMAR: Details Rational for Gamecorp Investment
M E X I C O
EMPRESAS ICA: Shareholders Approve Equity Capital Increase
GRUPO ELEKTRA: 2004 Form 20-F Filing Still Delayed
GRUPO IUSACELL: Reconciliation to U.S. GAAP Still Incomplete
GRUPO MEXICO: Fitch Announces Credit Analysis of Company, Units
LUZ Y FUERZA: Reschedules Bidding for 14 Natgas-Fired Projects
SATMEX: US Judge Sets Hearing Date, Bankruptcy Venue Undecided
TV AZTECA: BNY To Terminate ADRs, NYSE to Suspend Trading
TV AZTECA: Provides English Translation of Annual Report
P A R A G U A Y
ESSAP: Consultants to Scrutinize Economic, Financial Status
U R U G U A Y
CREDIT URUGUAY: Moody's Upgrades National Scale Rating
NBC: Upcoming Privatization Draws 2 Bidders
PLUNA: Venezuelan Officials Look Into Airline's Finances, Ops
V E N E Z U E L A
PDVSA: Finance Unit Fails to File SEC Annual Report On Time
PDVSA: Documents, Computer Equipment Stolen in Break-In
- - - - - - - - - -
=================
A R G E N T I N A
=================
AEROLINEAS ARGENTINAS: Ups Passenger Traffic in 1H05
----------------------------------------------------
Aerolineas Argentinas announced Friday that it transported
8.57% more passengers in domestic flights in the first half of
this year than in the same period in 2004, up to 2,119,488 from
last year's 1,952,107 until June 30, 2005.
With regards to the total passengers transported - domestic,
regional and international flights - the increase for the first
six months was 6.95% compared to last year, having served a
total of 3,060,396 passengers this year versus 2,861,564 during
the same period in 2004.
These figures for the first half of the year clearly show that
2004 annual totals (4,098,137 passengers in domestic flights
and a total 5,919,797 for all routes covered by the Company)
will be exceeded.
Also, occupation coefficients in domestic flights, always for
the first half of the year, are higher than 75%, peaking to
more than 84% in January, February and March 2005.
Passengers growth in Aerolineas Argentinas flights is basically
a consequence of a strong company presence in the national and
international markets and also of the incorporation of new
airliners to the domestic and international fleets.
CONTACT: AEROLINEAS ARGENTINAS
Torre Bouchard 547, 1106 Buenos Aires, ARGENTINA
Phone: (54-11) 4310-3000
Fax: (54-11) 4310-3585
E-mail: volar@aerolineas.com.ar
Web site: www.aerolineas.com.ar
AEROLINEAS ARGENTINAS: Additional Route Beginning in October
------------------------------------------------------------
Aerolineas Argentinas announced on Friday that it will start
operating the route Buenos Aires-Barcelona-Buenos Aires on Oct.
4, 2005, with a frequency of two weekly flights without
stopover. With departures on Tuesdays and Thursdays and returns
on Wednesdays and Fridays with our A340, this route is already
available for passengers through the Company's system.
Furthermore, the Company announced that it will not perform a
pre check-in with more than 24 hours prior to the starting of
the flight, as a consequence to the Emergency Amendment EA
1546-01-17D issued by TSA (Administration for Transport Safety
of the United States of America). This is true to all companies
operating to/from the USA since July 18, 2004.
On July 12, 2005, the Company disclosed that the baggage
allowance system for flights from Brazil to Europe (with or
without stops) has been modified, leaving the current Weight
System for the Pieces Concept (PC), which enables the
transportation of two 32-kg pieces each. This is in accordance
to DAC BRASIL standard No. CT-011.
CONTACT: AEROLINEAS ARGENTINAS
Torre Bouchard 547, 1106 Buenos Aires, ARGENTINA
Phone: (54-11) 4310-3000
Fax: (54-11) 4310-3585
E-mail: volar@aerolineas.com.ar
Web site: www.aerolineas.com.ar
BANCO GALICIA: Tarjeta Naranja Shareholders OK $50M Bond Issue
--------------------------------------------------------------
Shareholders of Tarjeta Naranja, the credit card arm of Banco
de Galicia y Buenos Aires S.A., approved on July 14 a plan to
issue US$50 million worth of five-year bonds, reports Business
News Americas.
According to Julian Gonzalez, senior consultant at Deloitte
Argentina's corporate finance, proceeds of the operation will
be used to finance the unit's ongoing business operations as
well as its efforts to gain independence from Grupo Galicia.
"Tarjeta Naranja has begun a funding process in the capital
market via bond issues as well as structured debt and different
modalities of financial trust funds, both short and mid-term,"
said Mr. Gonzalez.
Earlier this year, Tarjeta Naranja sold ARS30 million
(US$10.2mn) of commercial papers in an operation that saw
demand from retail and institutional investors reach ARS62.3
million.
Banco de Galicia is Grupo Galicia's main asset and is
Argentina's largest private sector commercial bank with US$7.8
billion in assets at the end of March.
CONTACT: Banco De Galicia Y Buenos Aires
Tte Gral Juan D Peron 407
Buenos Aires
Argentina
C1038AAI
Phone: 11 6329 0000
Fax: 11 6329 6100
EDELAP: Revised Government Contract Includes Rate Hike
------------------------------------------------------
Power distributor Edelap has renegotiated its contract with the
Argentine government, reports Business News Americas. The new
contract grants Edelap an average rate hike, retroactive from
May 1, of 15% for nonresidential users, who remain shielded
from higher prices.
This is the first tariff increase approved by congress for a
power utility company since utility deals were derailed by a
government rates freeze in January 2002.
While the rate hike will have a modest inflation effect, it
paves the way for rate hikes for bigger power distributors in
Buenos Aires, Edenor (DNOR.BA) and Edesur (DSUR.BA).
Edelap signed a letter of agreement for the new deal with
government negotiators in November, and Congress approved the
new contract two months ago after it went before a public
hearing.
Edelap, controlled by U.S.-based AES Corp. (AES), serves some
280,000 users in and around the city of La Plata just south of
the capital, Buenos Aires.
LA ESTIBADORA: Court Orders Asset Liquidation
---------------------------------------------
La Estibadora S.A. prepares to wind-up its operations following
the bankruptcy pronouncement issued by Court No. 2 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. Ana Maria
Blugerman as trustee. Ms. Blugerman will be reviewing
creditors' proofs of claim until July 25, 2005. The verified
claims will serve as basis for the individual reports to be
presented for court approval on Sep. 12, 2005. The trustee will
also submit a general report of the case on Oct. 25, 2005.
Clerk No. 3 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. Ana Maria Blugerman, Trustee
Parana 774
Buenos Aires
SIDERAR: Fires Up Briquette Plant as Part of Expansion Plan
-----------------------------------------------------------
Argentina's largest flat steelmaker Siderar has commenced
operations at a new briquette manufacturing plant, reports
Business News Americas. Each tonne of steel produced generates
some 110k of fine steel waste, which is not suitable for
loading into steel processing or blast furnaces due to its
size. The new plant, according to Siderar, is specially
designed to recover this fine waste and convert it into
briquettes, which will in turn supply Siderar's three
converters.
"The major benefit [of the plant] is that it replaces part of
scrap consumption and prevents waste from piling up," said a
Siderar executive.
Siderar claims the process will also be environmentally
beneficial, as it will reduce pollution.
The new plant is part of Siderar's US$560mn, five-year
expansion program unveiled at end-2004. With the plan, the
Company aims to increase production capacity to 3.5Mt/y from
2.4Mt/y.
Siderar is owned by Argentine industrial conglomerate Techint
(TCNT.YY), which in May announced plans to consolidate its flat
and steel holdings into a new company. Siderar will be part of
this new subsidiary, as will Sidor of Venezuela and Mexican
steelmaker Hylsamex (HYLSAMX.MX), which Techint is buying from
conglomerate Alfa (ALFA.MX).
CONTACT: Siderar S.A.I.C.
Leonardo Stazi (CFO)
Pablo Brizzio (Financial Manager)
Guillermo Etchepareborda (IR)
54 (11) 4018-2308 / 2434 / 2752
URL: http://www.siderar.com
THE AMERICAN FOOD: To Present Settlement Proposal to Creditors
--------------------------------------------------------------
An Informative Assembly between The American Food Company
S.R.L. and its creditors is scheduled on October 28, 2005. The
assembly is the final stage of reorganization where the
settlement proposal is presented to the Company's creditors for
approval.
The American Food Company S.R.L. began reorganization following
the approval of its petition by Court No. 8 of Cordoba's civil
and commercial tribunal. The opening of the reorganization
allowed the Company to negotiate a settlement with its
creditors in order to avoid a straight liquidation.
The court appointed a trustee to oversee the reorganization
proceedings. He verified claims of the Company's creditors
until Feb. 11, 2005, and presented the verified claims in court
as individual reports on March 29, 2005.
The trustee also submitted a general report, essentially
auditing the Company's accounting and business records as well
as summarizing important events pertaining to the
reorganization, on May 13, 2005.
TUNGHAI S.R.L.: Court Designates Trustee for Liquidation
--------------------------------------------------------
Buenos Aires accountant Graciela Marta Lema de Muino was
assigned trustee for the liquidation of local company Tunghai
S.R.L., relates Infobae.
Ms. de Muino will verify creditors' claims until Aug. 26, 2005,
the source adds. After that, she will prepare the individual
reports, which are to be submitted in court on Oct. 7, 2005.
The submission of the general report should follow on Nov. 18,
2005.
The city's civil and commercial Court No. 20 handles the
Company's case. Clerk No. 39 assists the court with the wind-up
proceedings.
CONTACT: Ms. Graciela Marta Lema de Muino, Trustee
Basualdo 1064
Buenos Aires
===========
B R A Z I L
===========
MRS LOGISTICA: BNDES Funds $109M to Buy 716 Cargo Railcars
----------------------------------------------------------
The board of Banco Nacional de Desenvolvimento Economico e
Social (BNDES) approved a financing to MRS Logistica S.A., in
the amount of R$109 million. The operation, destined to the
acquisition of 716 railcars from Amsted-Maxion for transport of
cargo, has the purpose of meeting the growing demand for iron
ore by steel companies in Southeast.
In the ambit of Finame Line, which finances machinery and
equipment manufactured in Brazil, the credit operation was
approved at the indirect modality, with participation of two
financing agents - Unibanco and Banco Votorantim, which will
transfer R$ 88 million and R$21 million, respectively.
The railway - MRS Logistica S.A. was incorporated in August
1996 to compete in the privatization of the Southeast Network
of Rede Ferroviaria Federal, which interlinks the States of Rio
de Janeiro, Minas Gerais and Sao Paulo. The main shareholders
of the Company are the mining company MBR and the steel company
CSN, both of which holding 32% of total capital. Usiminas and
Vale do Rio Doce hold 10% each; Ultrafertil, 4%; Gerdau, 1%;
and the remaining 11% are pulverized among other minor
shareholders.
The Company operates 1,687 km of rails, which facilitate the
process of transport and distribution of cargoes in a region
that concentrates about 65% of national GDP and where the
Brazilian leading industrial complexes are installed. Through
MRS railway network is possible to reach the ports of Sepetiba,
in Rio de Janeiro, and Santos, in Sao Paulo.
Transport - The core of MRS railway activities is in the
transport of general cargoes, such as ore, finished steel
products, coal, cement, bauxite, agriculture products, coke and
containers.
A big portion of iron ore is transported from mines in the iron
quadrilateral region next to Belo Horizonte and shipped to be
exported through the Port of Sepetiba. The iron ore is
transported from these mines to supply CSN, Cosipa and Gerdau
Acominas plants, which are also supplied by MRS in the release
of its steel products.
The delivery schedule of the new wagons will already begin in
current month, and will terminate in December, with delivery
average batches over 100 units per month.
CONTACTS: Eduardo Cassinelli
Treasurer
Marco Andre Guimaraes
Financial Manager
Maria Lucia Silveira
Financial Analyst
Praia de Botafogo,
228, 1201-E
22250-906 - Rio de Janeiro
Tel: 55-21-2559-4600
Fax: 55-21-2552-2635
daf@mrs.com.br
TELEMAR: Announces Fixed-Mobile Service Rate Increase
-----------------------------------------------------
Tele Norte Leste Participacoes (NYSE:TNE) announced Fridday
that ANATEL approved the proposed rate adjustment of 7.99% for
outgoing calls from fixed-line to mobile lines, known as VC1.
The rate increase, which affects TNE's subsidiary Telemar Norte
Leste (TMAR), will be effective as of July 17, 2005.
Mobile interconnection rates (VU-M) charged by mobile companies
- including TNL PCS, or Oi - to complete VC1 calls terminated on
their networks are also being increased by 4.5%.
CONTACT: Tele Norte Leste Participacoes S.A.
Phone: (212) 815-2921
Fax: (212) 571-3050
Web Site: http://www.telemar.com.br/
Investor Relations
Email: invest@telemar.com.br
Roberto Terziani 55 21 3131 1208
IR Team 55 21 3131 1313 - 1317
Fax: 55 21 3131 1155
The Global Consulting Group
Kevin Kirkeby (kkirkeby@hfgcg.com)
Tel: 1-646-284-9416
Fax: 1-646-284-9494
TELEMAR: Details Rational for Gamecorp Investment
-------------------------------------------------
Fixed line operator Telemar moved to defend its decision not to
inform the country's securities regulator CVM of its BRL5
million (US$2 million) investment in Gamecorp, reports Business
News Americas. Gamecorp was created in 2004 with capital of
BRL5.2 million, contributed almost entirely by Telemar. The
operator has a 35% ownership while President Luiz Inacio Lula
da Silva's son, Fabio Luis Lula da Silva, who invested
BRL200,000, has 65% control.
The CVM asked Telemar management why they did not disclose to
the financial markets their decision to approve the investment
in Gamecorp. Under the law, any such decision must be
registered in the minutes of the relevant meeting.
Telemar told the CVM that it did not divulge the investment
because it considered the amount small and of a "strategic and
operational nature." The value of the investment is only 0.01%
of the company's annual revenues, Telemar said.
Telemar added that at the time of its decision, it did not know
that Lula da Silva Jnr was involved, because of a
confidentiality agreement.
CONTACT: Tele Norte Leste Participacoes S.A.
Phone: (212) 815-2921
Fax: (212) 571-3050
Web Site: http://www.telemar.com.br/
Investor Relations
Email: invest@telemar.com.br
Roberto Terziani 55 21 3131 1208
IR Team 55 21 3131 1313 - 1317
Fax: 55 21 3131 1155
The Global Consulting Group
Kevin Kirkeby (kkirkeby@hfgcg.com)
Tel: 1-646-284-9416
Fax: 1-646-284-9494
===========
M E X I C O
===========
EMPRESAS ICA: Shareholders Approve Equity Capital Increase
----------------------------------------------------------
Shareholders at Mexico's largest construction company ICA
(NYSE; BMV: ICA) agreed in an extraordinary assembly held
Thursday to increase capital by up to US$230 million. This will
be done by issuing a maximum of 1.14 billion new shares to be
offered publicly in both Mexico and abroad.
According to an ICA source, the price of the new shares will be
set according to market conditions and this will be done before
a deadline of August 12.
At the same time, shareholders also approved a six-for-one
reverse share split, to be carried out after the capital
increase. Shareholders would receive one new share for every
six shares held.
The money generated by the public share offering will be used
for working capital and to bolster the position of the Company
as it bids for new projects.
The Ixe brokerage said in a report that the capital increase,
while dilutive to shareholders, could have a positive effect on
profitability as ICA has identified significant projects to bid
on over the next three years.
ICA was founded in Mexico in 1947. ICA has completed
construction and engineering projects in 21 countries. ICA's
principal business units include civil construction and
industrial construction. Through its subsidiaries, ICA also
develops housing, manages airports, and operates tunnels,
highways, and municipal services under government concession
contracts and/or partial sale of long-term contract rights.
CONTACT: Empresas ICA Sociedad Controladora S.A. de C.V.
Col. Escandon Del Migual Hidalgo
Mexico City, 11800
Mexico
Phone: 525-272-9991
URL: http://www.ica.com.mx
GRUPO ELEKTRA: 2004 Form 20-F Filing Still Delayed
--------------------------------------------------
Grupo Elektra S.A. de C.V. (" The Company"; BMV: ELEKTRA*;
NYSE: EKT; Latibex: XEKT), Latin America's leading specialty
retailer, consumer finance and banking and financial services
company noted on Friday that the preparation of its 2004 Form
20-F continues to be delayed and that it cannot reasonably
estimate when it will be in a position to file its Form 20-F
with the U.S. Securities and Exchange Commission (SEC).
On July 1, 2005, the Company announced that, pursuant to Rule
12b-25, it had filed with the SEC a notice of late filing of
its Annual Report on Form 20-F for the fiscal year ended
December 31, 2004.
The Company disclosed on Friday that it furnished to the U.S.
Securities and Exchange Commission (SEC) on Form 6-K an English
translation of its Spanish-language, Mexican Annual Report for
the fiscal year ended December 31, 2004.
As was previously announced, on June 30, 2005, the Company
filed its Mexican Annual Report for 2004 with the Mexican
National Securities and Banking Commission as required by
Mexican law. That report includes Grupo Elektra' audited
consolidated financial statements for the three fiscal years
ended December 31, 2004, which were prepared in accordance with
Mexican GAAP and certified by the Company's independent
auditors Castillo Miranda y Compania, S.C.
Grupo Elektra is Latin America's leading specialty retailer,
consumer finance and banking services company. Grupo Elektra
sells retail goods and services through its Elektra, Salinas y
Rocha, Bodega de Remates and Elektricity stores and over the
Internet. The Group operates more than 1,000 stores in Mexico,
Guatemala, Honduras and Peru. Grupo Elektra also sells and
markets its consumer finance, banking and financial products
and services through its more than 1,440 Banco Azteca branches
located within its stores, as a stand-alone, and in other
channels in Mexico and Panama. Banking and financial services
include consumer credit, personal loans, money transfers,
extended warranties, savings accounts, term deposits, pension-
fund management and insurance.
CONTACT: Grupo Elektra S.A. de C.V.
Esteban Galindez, CFA
Director of Finance and I.R.
Phone: 52 (55) 1720-7819
Fax: 52 (55) 1720-7822
E-mail: egalindez@elektra.com.mx
GRUPO IUSACELL: Reconciliation to U.S. GAAP Still Incomplete
------------------------------------------------------------
Grupo Iusacell, S.A. de C.V., (BMV: CEL, NYSE: CEL), noted on
Friday that it has not yet concluded the reconciliation to U.S.
GAAP required for this Annual Report and it cannot reasonably
estimate when it will be in a position to file the Form 20-F.
The Company also announced on Friday filed with the U.S.
Securities and Exchange Commission (SEC) a free translation in
English of its Mexican Annual Report for the year ended
December 31, 2004, on Form 6-K.
A Notification of late filing of Annual Report on Form 20-F was
filed with the U.S. Securities and Exchange Commission by the
Iusacell, which it announced on July 1, 2005.
As was previously announced, on June 30, 2005, the Company
filed its Spanish-language annual report with the Mexican
National Securities and Banking Commission as required under
Mexican law. That report included Iusacell's audited
consolidated 2004 financial statements prepared in accordance
with Mexican GAAP. Both, the Spanish-language annual report and
its English translation are available at Iusacell's web site
http://www.iusacell.com.mx.
Grupo Iusacell, S.A. de C.V. (Iusacell, NYSE and BMV: CEL) is a
wireless cellular and PCS service provider in Mexico
encompassing a total of approximately 92 million POPs,
representing approximately 90% of the country's total
population.
Independent of the negotiations towards the restructuring of
its debt, Iusacell reinforces its commitment with customers,
employees and suppliers and guarantees the highest quality
standards in its daily operations offering more and better
voice communication and data services through state-of-the-art
technology, such as its new 3G network, throughout all of the
regions in which it operates.
CONTACT: Grupo Iusacell, S.A. de C.V.
Jose Luis Riera K.
Chief Financial Officer
or
J. Victor Ferrer
Finance Manager
E-mail: vferrer@iusacell.com.mx
Phone: 5255-5109-5927
URL: http://www.iusacell.com
GRUPO MEXICO: Fitch Announces Credit Analysis of Company, Units
---------------------------------------------------------------
Fitch Ratings has released a credit analysis of Grupo Mexico,
S.A. de C.V. (Grupo Mexico) and its subsidiaries. This report
explains Fitch's rating rationale for the six-rated entities,
including Grupo Mexico, Americas Mining Corporation (AMC),
Southern Peru Copper Corporation (SPCC), Minera Mexico, S.A. de
C.V. (Minera Mexico), Asarco, Inc. (Asarco), and Grupo
Ferroviario Mexicano, S.A. de C.V. (GFM). The report also
includes an analysis of the companies' financial and business
positions.
Grupo Mexico is a holding company whose copper mining assets
are aggregated under AMC. Through AMC, Grupo Mexico owns a 75%
stake in SPCC, one of the world's lowest cost copper producers.
SPCC's operating assets are located in Peru and Mexico, as SPCC
now owns 99% of Minera Mexico, Mexico's largest mining group.
In 2004, SPCC, on a stand-alone basis, accounted for 45% of
consolidated sales of 868,000 tons of refined copper, and
Minera Mexico accounted for 37%. GM also owns 100% of Asarco in
the U.S., which accounted for 18% of consolidated copper sales
volumes. Grupo Mexico also owns a major railway in Mexico via
its GFM subsidiary. The railway connects Mexico's major cities
and six seaports and has five points of connection along the
U.S. border. Grupo Mexico's 2004 revenues of $4.2 billion were
generated from sales of copper (61%), molybdenum (15%),
transportation services, (15%), silver (3.0%), zinc (3.0%),
gold (1.0%), and sulphuric acid (1%). In 2004, AMC generated
about 89% of Grupo Mexico's consolidated EBITDA, while GFM
generated about 11% of the group's EBITDA.
CONTACT: Anita Saha, CFA 312-368-3179, Chicago
Joseph Bormann, CFA 312-368-3349, Chicago
Alberto Moreno ?8335-7179, Monterrey, Mexico
MEDIA RELATIONS: Brian Bertsch 212-908-0549, New York
LUZ Y FUERZA: Reschedules Bidding for 14 Natgas-Fired Projects
--------------------------------------------------------------
State-owned power distributor Luz y Fuerza del Centro (LFC) has
pushed back the dates involved in the process to award a
contract to build fourteen 32MW natural gas-fired projects in
the Federal District (DF) and Edomex, reports Business News
Americas.
Originally, technical bids were due to be opened July 13,
economic bids on August 10, and contracts to be awarded later
in August. The Company is yet to announce the new dates when
these events would take place. According to LFC sources,
several potential bidders had obtained bidding rules.
Construction of all 14 plants will begin immediately after the
contracts are awarded and operations are set for end-2006 or
early 2007. State oil company Pemex will supply the projects
with natural gas.
Over the last few years, LFC has struggled to develop much-
needed generation projects to avoid the system from collapsing
in high-demand areas in coming years due to lack of resources.
SATMEX: US Judge Sets Hearing Date, Bankruptcy Venue Undecided
--------------------------------------------------------------
A US judge has scheduled for July 29 a hearing to decide
whether to go ahead with a bankruptcy process under US law for
financially troubled Mexican satellite operator Satelites
Mexicanos SA (Satmex), reports Business News Americas. Judge
Robert Drain hinted a ruling could be handed down either on the
same day or several days later.
Satmex, which defaulted on more than US$520 million of bonds
issued in the U.S., is fighting U.S. creditors over whether the
Company's restructuring should be supervised by a US or Mexican
court.
At the end of May, US creditors representing at least US$379
million of Satmex's defaulted debt filed for chapter 11
bankruptcy in a US court to restructure the Company's finances.
At the end of June, Satmex filed for bankruptcy under Mexican
law, a process known as concurso mercantil, arguing that a US
bankruptcy deal would be a threat to "Mexican sovereignty and
national security" given that the Mexican government grants the
orbiting rights and the company has no base in the US.
Last week, Satmex filed a petition in a New York court to have
the US bankruptcy filing dismissed.
Judge Drain gave creditors until 4pm EST on July 26 to present
their counter arguments to Satmex's petition for dismissal of
the US bankruptcy filing.
Satmex will in turn have until July 28 to respond to those
arguments in a document no longer than 10 pages.
CONTACT: SATELITES MEXICANOS, S.A. DE C.V.
Blvd. M. Avila Camacho 40, piso 24
Colonia Lomas de Chapultepec
11000 Mexico, D.F., Mexico
PHONE: 55-5201-0898
TV AZTECA: BNY To Terminate ADRs, NYSE to Suspend Trading
---------------------------------------------------------
TV Azteca, S.A. de C.V. (BMV: TVAZTCA; NYSE: TZA; Latibex:
XTZA), one of the two largest producers of Spanish-language
television programming in the world announced Friday that, as
was previously informed, on July 18, 2005, the Bank of New York
(BONY), at the Company's instruction, will terminate the
Company's American Depositary Receipts (ADRs) program and, as a
result, the New York Stock Exchange (NYSE) will suspend trading
of its ADRs. As of such date, the Company's ADRs will not trade
on the NYSE.
As was previously announced, at an Extraordinary Shareholders'
Meeting held on June 1, 2005, 99.85% of TV Azteca's
shareholders approved the termination of the ADR program, after
an analysis and discussion of the costs and benefits of
continued listed in the U.S. capital markets.
As has been detailed, ADR holders will have 60 days to exchange
their ADRs for CPOs traded on the Mexican Stock Market. Upon
the expiration of the 60- day period, BONY will be allowed to
sell the CPOs underlying the ADRs that were not surrendered and
distribute the proceeds of such sale to holders.
TV Azteca 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.
CONTACT: TV Azteca, S.A. de C.V.
Investor Relations: Bruno Rangel
Tel: 55-1720-9167
E-mail: jrangelk@tvazteca.com.mx
Rolando Villarreal
Tel: 55-1720-0041
E-mail: rvillarreal@gruposalinas.com.mx
Press Relations:
Tristan Canales
Tel: 55-1720-1441
E-mail: tcanales@gruposalinas.com.mx
Daniel McCosh
Tel: 55-1720-0059
E-mail: dmccosh@tvazteca.com.mx
TV AZTECA: Provides English Translation of Annual Report
--------------------------------------------------------
TV Azteca, S.A. de C.V. has furnished to the US Securities and
Exchange Commission (SEC) on Form 6-K an English translation of
its Spanish-language, Mexican Annual Report for the fiscal year
ended December 31, 2004. As was previously announced, on June
30, 2005, the company filed its Mexican Annual Report for 2004
with the Mexican National Securities and Banking Commission as
required by Mexican law. That report includes TV Azteca's
audited consolidated financial statements for the three fiscal
years ended December 31, 2004, which were prepared in
accordance with Mexican GAAP and certified by the company's
independent auditors Salles, Sainz-Grant Thornton, S.C.
On July 1, 2005, the company announced that, pursuant to Rule
12b-25, it had filed with the SEC a notice of late filing of
its Annual Report on Form 20-F for the fiscal year ended
December 31, 2004. The company noted Friday that the
preparation of its 2004 Form 20-F continues to be delayed and
that it cannot reasonably estimate when it will be in a
position to file its Form 20-F with the SEC
===============
P A R A G U A Y
===============
ESSAP: Consultants to Scrutinize Economic, Financial Status
-----------------------------------------------------------
A technical team, which consists of representatives from
various government institutions, is set to examine information
on the economic and financial situation of troubled state water
utility Essap, reports Business News Americas. Mr. Manuel Lopez
Cano, the head of Essap who presented the information to
finance ministry officials, also outlined the problems facing
the water utility regarding illegal connections and the firm's
pricing policy.
The technical team, headed by a representative from the public
works ministry, Jorge Von Horoch -head of the economic
department at the finance ministry- will analyze and verify the
figures presented by Lopez Cano, prioritize the challenges that
must be faced and examine the courses of action to be taken. It
will then hand the department of economy a final report, which
the latter will use to decide how to act.
Already, minister of public works Jose Alberto Alderete has
ruled out the "savage privatization" of Essap, saying the idea
of president Nicanor Duarte Frutos was to inject private
capital into the firm.
Essap is struggling with US$170 million in debt. The Company's
current financial obligations have curtailed needed investment.
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U R U G U A Y
=============
CREDIT URUGUAY: Moody's Upgrades National Scale Rating
------------------------------------------------------
Moody's Investors Service upgraded the national scale rating
for local currency deposits of Credit Uruguay Banco (formerly
Banco A.C.A.C.) to Aa2.uy from Aa3.uy. Moody's also confirmed
the bank's global local-currency deposit rating of Ba1. Both
ratings have a stable outlook. This rating action concludes the
review for possible upgrade of Credit Uruguay Banco's local
currency ratings initiated in April 2005. The bank's foreign-
currency ratings (Caa1/NP/Ba2.uy) and bank financial strength
rating (E) were unaffected by this action and are affirmed.
Moody's said the upgrade of the national scale rating for local
currency deposits reflects Credit Uruguay's status as a now
wholly-owned subsidiary of Credit Agricole S.A., of France, and
incorporates the bank's improving financial position and
integration with the parent bank as it refocuses its operations
in Uruguay.
Moody's confirmed, with a stable outlook, Credit Uruguay's
global local-currency deposit rating of Ba1, in an indication
of the challenges that local management faces to reposition the
bank's franchise in an environment of increasing competition
within a still-stagnant banking market in Uruguay. The rating
agency also said it will continue to follow the integration
process with Credit Agricole as well as developments with
respect to its new marketing objectives in the region.
The following ratings were affected:
Credit Uruguay Banco S.A.
- Long- Term Global Local- Currency Deposits: Ba1 (confirmed)
- National Scale Rating for Local Currency Deposits: Aa2.uy
upgraded from Aa3.uy
NBC: Upcoming Privatization Draws 2 Bidders
-------------------------------------------
The Uruguayan government's plan to privatize state bank Nuevo
Banco Comercial (NBC) by the end of the year has attracted the
interest of two groups. According to Business News Americas,
Chilean financial services group Corp Group, which is
controlled by Chilean businessman Alvaro Saieh, and investment
fund Advent International have presented proposals. The
proposals, according to Uruguay's economy minister Danilo
Astori, are "very serious and solid" and may be finalized in
the short term.
"We have to study not only the figures but also the proposals'
characteristics as well as negotiate with the bidders. If the
process is completed successfully, we will not open another
round of offers," Mr. Astori was quoted as saying said.
NBC was created in March 2003 from the assets of local banks
Banco Comercial, Banco Montevideo and Banco Caja Obrera. The
three banks were intervened and suspended as a result of a run
on deposits during the country's financial crisis in 2002.
Uruguay's government is still in a clash with Banco Comercial's
former owners - CSFB (NYSE: CSR), JPMorgan Chase (NYSE: JPM),
and Dresdner. The government recently confirmed that it will
sue the three international banks, accusing them of not
honoring their obligations to Comercial as shareholders.
In turn, the three banks filed for new arbitration proceedings
with the Uruguayan government at the International Chamber of
Commerce (ICC), claiming the government did not comply with an
ICC ruling to repay them US$120 million for a capital injection
in Banco Comercial in 2002.
PLUNA: Venezuelan Officials Look Into Airline's Finances, Ops
-------------------------------------------------------------
Venezuelan state airline Conviasa is looking to buy a 49% stake
in Uruguay's failing airline Pluna, said Venezuela's tourism
ministry. According to a Dow Jones Newswires report, Venezuelan
officials are meeting with airline representatives and
examining the Company's finances and operations. Last week,
Uruguayan officials disclosed that Conviasa was seeking a
possible venture with Pluna, but noted that no decision has
been made yet on any deal.
Uruguay's flagship airline has been considered a financial
disappointment by shareholders. Brazilian airline Viacao Aerea
Riograndense SA (Varig) wants to unload its 49% stake in Pluna
as it tries to maneuver itself out of its financial
predicament. Weighed down by BRL9.5 billion of debts, Varig
filed for protection from creditors in a Rio de Janeiro court
on June 17.
=================
V E N E Z U E L A
=================
PDVSA: Finance Unit Fails to File SEC Annual Report On Time
-----------------------------------------------------------
PdVSA Finance Ltd. missed the June 30 deadline to file its 2004
annual report with the Securities Exchange Commission (SEC),
Dow Jones Newswires reports. In a notification to the SEC, the
Cayman Islands-based subsidiary said its report incorporates,
by reference, parent Petroleos de Venezuela SA's annual report,
which is still incomplete.
"PdVSA's financial reporting systems continue to suffer delays
in the generation and preparation of financial statements," the
filing said. "In particular, there have been delays in closing
the year-end accounting records and in the analysis of
accounts."
PdVSA Finance also failed to file its 2003 annual report. Its
2002 report was filed late on Oct. 24, 2003 due to work
stoppage. The unit, however, presented an audited balance sheet
on Form 6-K for the years 2003, 2004, and the first quarter of
2005 on July 1.
PDVSA continues to cope with accounting delays stemming from a
crippling strike in 2002 and 2003.
PDVSA: Documents, Computer Equipment Stolen in Break-In
-------------------------------------------------------
Corporacion Venezolana de Petroleo, CVP, lost documents and
computer equipment after unknown assailants broke into its
offices, Dow Jones reports. The officials of the Company, a
subsidiary of Venezuelan state-oil company Petroleos de
Venezuela (PdVSA) that handles projects with private companies,
found their Caracas offices violated in the early Friday hours.
According to the officials, only the bottom floor of the PdVSA
headquarters was damaged during the break in, but they are
still trying to determine the extent of the damage. Authorities
have been notified of the problem.
***********
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