/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/050805.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, August 5, 2005, Vol. 6, Issue 154 Headlines A R G E N T I N A AGUAS PROVINCIALES: Govt. Snubs Request to Extend Deal Deadline CADELA S.R.L.: Liquidates Assets to Pay Debts CLINICA SANATORIO: Court Rules for Liquidation COR-PEL S.R.L.: Court OKs Creditor's Bankruptcy Call EDESUR: Reports 1H05 Net Losses of ARS20.5 Mln FABRICA DE MUEBLES: Court Declares Company Bankrupt HIJOS DE FRANCISCO: Reorganization Proceeds To Bankruptcy KINGS COLLEGE: Liquidates Assets to Pay Debts L.M. SISTEMAS: Concludes Reorganization LA COSTA S.R.L.: Court Sets Deadline for Reports' Submission MENCHINI HNOS: General Report to be Submitted Sep. 19 SECURITY CONSULTING: Seeks Court Approval to Reorganize TELEFONICA DE ARGENTINA: ICSID Decision Awaits Final Rates Pact TGS: Posts 2Q05 Net Profit of ARS63.8 Mln TOP PRODUCCIONES: Court Declares Company Bankrupt TROLECOR S.A.: Trustee to Submit Individual Reports VINTAGE PETROLEUM: Discloses Results, Status of 2Q Activities B E R M U D A ANECO REINSURANCE: Scheme Creditors to Get Final Dividend TRA INSURANCE: Liquidators Declare Dividend Payable to Creditors B O L I V I A AGUAS DEL ILLIMANI: Regulator Sees Audit Pact in the Offing B R A Z I L BRASKEM S.A.: Net Income Reaches $428M in 2Q05 NET SERVICOS: Reports $37.7M Net Income for 2Q05 E C U A D O R PETROECUADOR: President Quits Post at Energy Minister's Behest J A M A I C A NCB JAMAICA: Ratings Constrained By Jamaica's Sovereign Ratings M E X I C O AXTEL: Revenue from Operations Reaches Ps.1.2 Bln in 2Q05 GRUPO MEXICO: Workers Plan Work Stoppage on Aug. 12 HYLSAMEX: To Make $143M Dividend Payment on Aug. 22 SANLUIS CORPORACION: Reports $159.0M Sales in 2Q05 SATMEX: To Ship Satmex 6 Back to U.S. Lab P U E R T O R I C O CENTENNIAL COMMUNICATIONS: To Restate 3Q05 Financial Statements T R I N I D A D & T O B A G O BWIA: Expects More Flexibility After T&T Regains Cat. 1 Status V E N E Z U E L A CANTV: Shares Continue Downward Trend Following Court Ruling - - - - - - - - ================= A R G E N T I N A ================= AGUAS PROVINCIALES: Govt. Snubs Request to Extend Deal Deadline --------------------------------------------------------------- French firm Suez will have until August 15 to close a deal to hand over Aguas Provinciales de Santa Fe to Fides Group, the firm controlling local energy company Emgasud, according to Business News Americas. Suez had requested an extension of the handover deadline by a month to conclude the fine print of the purchase-sale agreement of its 77.5% majority shareholding in Aguas Provinciales. The provincial government has said that the information provided so far by Emgasud on its intended purchase of the water utility is lacking in technical, financial and economic terms. It has demanded a copy of the purchase-sale contract and the presentation of guarantees. Santa Fe Governor Jorge Obeid denied the French operator's request to extend the handover deadline. The deadline for the deal has already been extended once, as it was originally set for July 30, but was moved to August 16. CADELA S.R.L.: Liquidates Assets to Pay Debts --------------------------------------------- Buenos Aires-based Cadela S.R.L. will begin liquidating its assets following the pronouncement of the city's civil and commercial Court No. 18 that the Company is bankrupt, reports Infobae. The bankruptcy ruling places the Company under the supervision of court-appointed trustee, Bernardino Kopcow. The trustee will verify creditors' proofs of claim until Oct. 26, 2005. The validated claims will be presented in court as individual reports. Mr. Kopcow will also submit a general report, containing a summary of the Company's financial status as well as relevant events pertaining to the bankruptcy. Clerk No. 36 assists the court on this case, which will end with the disposal of the Company's assets in favor of its creditors. CONTACT: Cadela S.R.L. Presidente Peron 1547 Buenos Aires Mr. Bernardino Kopcow, Trustee Lavalle 1527 Buenos Aires CLINICA SANATORIO: Court Rules for Liquidation ---------------------------------------------- Court No. 2 of Mendoza's civil and commercial tribunal ordered the liquidation of Clinica Sanatorio Mitre S.R.L. after the Company defaulted on its obligations, Infobae reveals. The liquidation pronouncement will effectively place the Company's affairs as well as its assets under the control of Silvia Irma Bustos, the court-appointed trustee. Ms. Bustos will verify creditors' proofs of claim until Aug. 25, 2005. The verified claims will serve as basis for the individual reports to be submitted in court on Oct. 20, 2005. The submission of the general report follows on March 14, 2006. CONTACT: Ms. Silvia Irma Bustos, Trustee 25 de Mayo 1054 Ciudad de Mendoza (Mendoza) COR-PEL S.R.L.: Court OKs Creditor's Bankruptcy Call ---------------------------------------------------- Cor-Pel S.R.L. entered bankruptcy after Court No. 5 of Buenos Aires' civil and commercial tribunal approved a bankruptcy motion filed by APS, reports La Nacion. The Company's failure to pay $17,385.86 in debt prompted the creditor to file the petition. Working with the city's Clerk No. 10, the court assigned Mr. Carlos Alberto Llorca as trustee for the bankruptcy process. The trustee's duties include the authentication of the Company's debts and the preparation of the individual and general reports. Creditors are required to present their proofs of claim to the trustee before Sep. 22, 2005. The Company's assets will be liquidated at the end of the bankruptcy process to repay creditors. Payments will be based on the results of the verification process. CONTACT: Cor-Pel S.R.L. Zanartu 1461 Buenos Aires Mr. Carlos Alberto Llorca, Trustee Carlos Pellegrini 385 Buenos Aires EDESUR: Reports 1H05 Net Losses of ARS20.5 Mln ---------------------------------------------- Electricity distributor Edesur saw its losses balloon to ARS20.5 million (US$7.16mn) in the first half of this year from ARS6.9 million in the same period in 2004, reports Business News Americas. Like other utilities, Edesur blames its losses on prices being pesofied after the end of the one-to-one peg with the US dollar three years ago. The Company agreed in June to a renegotiation of its contract with the government, which includes a 15% price hike for industrial clients starting in November. Controlled by Spanish power giant Endesa (NYSE: ELE), Edesur distributes in the south of Buenos Aires city and part of Buenos Aires province, serving over 6 million people. CONTACT: EDESUR S.A. San Jos, 140 Buenos Aires Tel: 4383-0200 4381-1313 FABRICA DE MUEBLES: Court Declares Company Bankrupt --------------------------------------------------- Court No. 8 of Buenos Aires' civil and commercial tribunal declared local company Fabrica de Muebles Saenz Pena S.R.L. "Quiebra", relates La Nacion. The court approved the bankruptcy petition filed by Mr. Eduardo Marino, whom the Company has debts amounting to $1,824.54. The Company will undergo the bankruptcy process with Juan Carlos Acuaz as trustee. Creditors are required to present proof of their claims to Mr. Acuaz for verification before Sep. 14, 2005. Creditors who fail to submit the required documents by the said date will not qualify for any post-liquidation distributions. Clerk No. 15 assists the court on the case. CONTACT: Fabrica de Muebles Saenz Pena S.R.L. Salvador Maria del Carril 4728 Buenos Aires Mr. Juan Carlos Acuaz, Trustee Av. Cordoba 1522 Buenos Aires HIJOS DE FRANCISCO: Reorganization Proceeds To Bankruptcy --------------------------------------------------------- The reorganization of Hijos de Francisco Muzzo S.R.L. has progressed into bankruptcy. Argentine news source Infobae relates that Rosario's Court No. 10 ruled that the Company is "Quiebra Decretada". The report adds that the court assigned a trustee, who will verify creditors' proofs of claim and prepare the individual and general reports. The case will end with the liquidation of its assets to pay its creditors. CONTACT: Hijos de Francisco Muzzo S.R.L. Mercado de Productores de Rosario Calle San Nicolas y Galvez Rosario (Santa Fe) KINGS COLLEGE: Liquidates Assets to Pay Debts --------------------------------------------- Kings College S.R.L. will begin liquidating its assets following the pronouncement of the city's civil and commercial Court No. 11 that the Company is bankrupt, Infobae reports. The bankruptcy ruling places the Company under the supervision of court-appointed trustee, Ricardo Oscar Garcia. The trustee will verify creditors' proofs of claim until Oct. 6, 2005. The validated claims will be presented in court as individual reports on Nov. 18, 2005. Mr. Garcia will also submit a general report, containing a summary of the Company's financial status as well as relevant events pertaining to the bankruptcy, on Feb. 1, 2006. The bankruptcy process will end with the disposal of the Company's assets in favor of its creditors. CONTACT: Mr. Ricardo Oscar Garcia, Trustee Lavalle 1206 Buenos Aires L.M. SISTEMAS: Concludes Reorganization --------------------------------------- The reorganization of Buenos Aires-based L.M. Sistemas Luminicos S.A. has ended. Data revealed by Infobae on its Web site indicated that the process was concluded after Buenos Aires civil and commercial Court No. 1, with assistance from Clerk No. 1, homologated the debt agreement signed between the Company and its creditors. LA COSTA S.R.L.: Court Sets Deadline for Reports' Submission ------------------------------------------------------------- After authorizing La Costa S.R.L. to undergo a reorganization process, Court No. 3 of Viedma's civil and commercial tribunal ordered Carlos Isidoro Lauronce, the receiver, to submit individual reports on Oct. 11, 2005. The submission of the individual reports follows the verification process, which ended on July 20, 2005. After submitting the individual reports, the receiver will prepare the general report and hand it to court on Dec. 12, 2005. The informative assembly, which sets the last phase of a reorganization process, will take place on May 10, 2006. CONTACT: La Costa S.R.L. Mexico 298 Viedma (Rio Negro) Mr. Carlos Isidoro Lauronce, Trustee BA Ayacucho 458 Viedma (Rio Negro) MENCHINI HNOS: General Report to be Submitted Sep. 19 ----------------------------------------------------- The submission of the general report on the Menchini Hnos S.A. insolvency case will be on Sep. 19, 2005, to be followed by the informative assembly on March 24, 2006, Infobae reports. Court No. 4 of San Luis' civil and commercial tribunal declared the Company bankrupt after it failed to pay its creditors. The declaration has prohibited the Company from administering its assets, control of which has been transferred to a court- appointed trustee. The case will end with the sale of the Company's assets. Proceeds from the sale will be used to repay the Company's debts. SECURITY CONSULTING: Seeks Court Approval to Reorganize ------------------------------------------------------- Security Consulting S.R.L., a company operating in Buenos Aires, has requested reorganization after failing to pay its liabilities, says Infobae. The reorganization petition, once approved by the court, will allow the Company to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending before the Court No. 25 of the city's civil and commercial tribunal. Clerk No. 49, assists on this case. CONTACT: Security Consulting S.R.L. Tres Sargentos 463 Buenos Aires TELEFONICA DE ARGENTINA: ICSID Decision Awaits Final Rates Pact --------------------------------------------------------------- Madrid-based Telefonica SA (TEF) denied claims made recently by Argentine government officials that the company has promised to drop its US$2.8 billion arbitration claim against Argentina. "We never said we would withdraw...what we have said is that we have the best will possible to negotiate, as we've always had," La Nacion, in its Tuesday edition, quoted a person close to the company as saying. Telefonica, which directly and indirectly owns 98% of Telefonica de Argentina S.A.'s shares, filed the claim in 2002 with the International Center for the Settlement of Investment Disputes, or ICSID. The company was seeking compensation for the Argentine government's decision that year to convert rates into devalued pesos and freeze them. Telefonica suspended the claim in September 2004, but then reactivated the case in January. Last month, the Argentine Planning Ministry said Telefonica President Cesar Alierta told Minister Julio De Vido that the company would drop the claim. But Telefonica said it is not pulling its case until a final contract is reached. This puts the telecom at odds with the government, which has set withdrawal of ICSID arbitration as a prerequisite for getting a new contract and an increase in frozen rates. The Telefonica press officer confirmed a Wednesday report in Ambito Financiero, which said the company will suspend its ICSID claim when the government signs an agreement to dollarize rates for incoming international calls. Telefonica will only fully withdraw the suit when a full contract is reached, according to Ambito Financiero. CONTACT: Telefonica de Argentina S.A. Avenida Ingeniero Huergo 723 Buenos Aires, Argentina Phone: 5411 4332-2066 Web site: http://www.telefonica.com.ar TGS: Posts 2Q05 Net Profit of ARS63.8 Mln ----------------------------------------- Argentine natural gas pipeline operator Transportadora de Gas del Sur (TGS) ended the second quarter of 2005 with a ARS63.8- million net profit compared to a ARS52.6-million net loss. According to Dow Jones Newswires, the Company attributed almost 80% of its profit to favorable foreign exchange effects. TGS reported an 8.2% increase in the second quarter in sales and administrative costs to ARS140.0 million. This rise was due in part to higher NGL production costs resulting from higher prices for raw materials. Net financial expenses amounted to ARS28.2 million in the quarter, down from ARS148.8 million a year earlier. This figure would have been larger if it weren't for an ARS21.8 million gain generated by an appreciation in the Argentine peso over the period. As in previous earnings reports, the pipeline operator was mostly silent on the issue of contract renegotiations with the government and future rate increases to ease the 3 1/2-year rate freeze, repeating the line that the rate "renegotiating process has been delayed with no significant progress." The previous administration converted utility rates into devalued pesos and froze them in 2002, and has allowed only limited adjustments for the energy sector since then. TGS's controlling shareholder is a holding company named Compania de Inversiones de Energia S.A. (CIESA), which is in turn controlled by Petrobras Energia SA (PC.BA) and subsidiaries of Enron Corp. (ENRNQ). Petrobras Energia is a unit of Petroleo Brasileiro SA (PBR), or Petrobras. CONTACT: Buenos Aires Investor Relations Mr. Gonzalo Castro Olivera Finance & IR Manager E-mail: gonzalo_olivera@tgs.com.ar Ms. Maria Victoria Quade Investor Relations Ms. victoria_quade@tgs.com.ar Phone: (54-11) 4865-9077 Media Relation Mr. Rafael Rodriguez Roda Phone: (54-11) 4865-9050 ext. 1238 Mr. Kevin Kirkeby E-mail: kkirkeby@hfgcg.com Phone: (646) 284-9416 TOP PRODUCCIONES: Court Declares Company Bankrupt ------------------------------------------------- Court No. 24 of Buenos Aires' civil and commercial tribunal declared local company Top Producciones S.R.L. "Quiebra", relates La Nacion. The court approved the bankruptcy petition filed by BBVA Banco Frances, whom the Company has debts amounting to $62,230.94. The Company will undergo the bankruptcy process with Mr. Jorge Cevallos as trustee. Creditors are required to present proofs of their claim to Mr. Jorge Cevallos for verification before Oct. 24, 2005. Creditors who fail to submit the required documents by the said date will not qualify for any post-liquidation distributions. Clerk No. 48 assists the court on the case. CONTACT: Top Producciones S.R.L. 25 de Mayo 244 Buenos Aires Mr. Jorge Cevallos, Trustee Aguaribay 6736 Buenos Aires TROLECOR S.A.: Trustee to Submit Individual Reports --------------------------------------------------- Ms. Maria Elena Sanchez de Franchin, the trustee of the Trolecor S.A. bankruptcy case, had stopped accepting the claims of the Company's creditors. She will then present the verified claims of as individual reports on Aug. 16, 2005, Infobae reports. Ms. de Franchin will also submit a general report on Nov. 14, 2005. The individual and general reports are both required by the Argentine bankruptcy law. Cordoba's civil and commercial Court No. 3 declared Trolecor S.A. bankrupt after the Company defaulted on its debt payments. The case will end with the disposal of the Company's assets in favor of its creditors. CONTACT: Trolecor S.A. Avda. Sabattini 4316 Ciudad de Cordoba (Cordoba) Ms. Maria Elena Sanchez de Franchin, Trustee Duarte Quiros 631 Ciudad de Cordoba (Cordoba) VINTAGE PETROLEUM: Discloses Results, Status of 2Q Activities ------------------------------------------------------------- Vintage Petroleum, Inc. (NYSE:VPI) announced Wednesday the results and status of its second quarter operational activities and plans for the second half of 2005. In the three months ending June 30, 2005, the company made capital investments totaling $79.7 million, with $60.8 million going to a variety of lower-risk exploitation projects, $12.9 million spent on potentially higher-impact exploration programs in the United States and Yemen and $6.0 million on domestic acquisitions. This brings total capital expenditures for the first six months of 2005 to $144.0 million. The 2005 non-acquisition capital budget has been raised 14 percent to $285 million as a result of increased spending planned for exploitation in the United States and Yemen, as well as domestic unconventional resource exploration. United States - Exploitation Based on the company's success to date in domestic exploitation activities and the opportunity to expand the drilling program in several fields, Vintage has increased its 2005 domestic capital spending budget for exploitation by $30 million to a total of $70 million. Active drilling programs and workovers in the Luling, Darst Creek and West Ranch fields in South Central Texas continue, where nine wells were drilled and ten workovers were completed during the second quarter. Work is currently underway to drill an additional 18 wells and complete eight workovers. Another eight workover projects are also under evaluation. Activity in the second quarter of 2005 included the continuation of an infill drilling program at the South Gilmer field of East Texas, where two wells were successfully completed in the second quarter with another well in progress. The expanded budget includes two Gilmer wells for the second half, with another two under evaluation for possible drilling in the future. At the company's Main Pass 116 complex in the federal waters of the Gulf of Mexico, three workovers were completed in the second quarter, and the company is evaluating several additional drilling prospects in the field. At the end of the second quarter of 2005, the company had returned to production virtually all of the estimated 6,100 net BOE per day of production which had been temporarily shut-in due to the mudslides experienced in California during January. The company spent a total of approximately $5.7 million through June 30, 2005, to repair mudslide damage. Of this amount, approximately $2.2 million was incurred during the second quarter. The company estimates an additional $2.5 million will be needed in the third quarter to finalize repairs to equipment and roads providing permanent access to production facilities. United States - Exploration The focus of domestic exploration activity is split between onshore unconventional gas resource plays and conventional exploration targeting principally the Gulf Coast. The capital budget for U.S. exploration has been reduced somewhat overall to $60 million from $64 million with the allocation to unconventional resources raised to $31 million, up 19 percent from $26 million. The capital budget for U.S. conventional exploration has been reduced to $29 million from $38 million principally due to delays in planned drilling caused by the difficulty in obtaining drilling rigs on a timely basis. The budget allocated to the unconventional gas resource exploration program targets the drilling of 13 wells, pending rig availability, to test five separate play concepts during 2005, an increase over the prior allocation to drill ten wells to test four play concepts. In one of these unconventional plays, located in the Palo Duro Basin of Texas, the company has secured a substantial lease position of approximately 145,000 net acres. Two exploratory wells have been drilled and cored. The first well (Echols 2 #1) was fracture stimulated in early July. Analysis of the core samples from the second well drilled (Burleson 60 #1) is nearly complete and frac design work is underway. Currently, the company plans to fracture stimulate the Burleson well later in the third quarter. Results of long-term production tests from the Echols and Burleson wells will then be analyzed before additional drilling is undertaken in the Palo Duro Basin. Vintage owns working interests in this venture which range between 65 and 75 percent. To date, approximately 128,000 net acres have been acquired in four additional, separate unconventional play concepts located in other areas of the country with the intention of accumulating additional acreage and drilling wells later in the year to test each play concept. The company is currently securing a rig that will allow drilling operations to commence during September on the second play concept to be tested (shale play "A"). Twenty-nine million dollars has been allocated to conventional exploration activities primarily targeting natural gas that can be brought to production quickly. This reflects a $9 million reduction in planned conventional exploration as Vintage has adjusted or deferred participation in selected prospects for the remainder of 2005 principally due to the tight rig market. Vintage anticipates drilling four exploration wells to test prospects primarily located in the onshore and offshore Texas Gulf Coast. Two Miocene prospects were drilled at Matagorda Island 639 and 640 during the second half of 2004 with both encountering apparent pay sands. Vintage holds a 25 percent working interest in this offshore Texas gas prospect and expects these wells to be brought online with the completion of production facilities in August. Vintage recently acquired an additional lease covering 720 acres in the Nueces Bay on the Texas Gulf Coast, where the company holds a 53 percent working interest in a 1,000 acre prospect that is targeting gas in underdeveloped Frio and Vicksburg sands. The drilling of two wells on this prospect has been approved for the fourth quarter. Other wells planned or underway include a prospect in the Texas State waters of the Gulf of Mexico targeting gas in the deep Marg Tex sands, and an exploration well updip to existing productive sands near Lafayette, Louisiana. The company owns 20 percent and 25 percent interests, respectively, in these two prospects. The company also owns a 15 percent interest in a prospect in West Cameron 145, located in the federal waters of offshore Louisiana, that targets Miocene age formations at depths of approximately 12,000 to 15,000 feet. This well is targeted to spud in the fourth quarter of 2005 or early 2006. Argentina The company's forecasted production growth in 2005 is supported by an increase in Argentina capital spending of 23 percent over 2004 levels to $115 million, which targets the drilling of 110 wells. Second quarter activity included the drilling of 27 wells, with 15 in progress, and the completion of 21 workovers. Currently there are six drilling rigs and ten workover rigs active on the company's concessions in the San Jorge and Cuyo Basins. Further, a portion of 2005 capital spending is budgeted for the implementation of four waterflood projects which could enhance production in 2006. Procurement and installation work was initiated on three of these projects in the second quarter. Second quarter activity continued to build on the company's substantial existing inventory of more than 800 combined proved undeveloped and probable and possible locations which provide significant future production visibility. Based solely on drilling a majority of this inventory, Vintage's Argentina production is projected to rise at a compound annual rate of 10 percent over the next seven years, exclusive of acquisitions. Furthermore, given the company's production growth and high drilling success rate predicated upon its 3-D seismic surveys over the past nine years, additional production locations are likely to be generated as the existing inventory is drilled, existing 3-D seismic is further evaluated and new 3-D seismic surveys are conducted. Only about one-half of the company's more than one million acres in Argentina have been surveyed using 3-D seismic. With Argentina currently accounting for approximately one-half of company production, Argentina's projected growth provides strong support for total company volume growth. Yemen The 18-mile (28 km) permanent pipeline in Yemen was completed as planned at the end of the second quarter, and it is currently transporting approximately 8,800 gross barrels of oil per day (4,600 net). Completion of the central processing facility at An Nagyah is scheduled for the fourth quarter, however, key portions of the facility are expected to be fully operational by the end of the third quarter. Daily production is expected to increase to 10,000 gross barrels of oil (5,200 barrels net) by mid-third quarter. The company increased its 2005 exploitation budget by $7 million to accommodate additional development drilling in the field. The An Nagyah #16 horizontal well is currently drilling, and the company plans to drill the An Nagyah #17 to test and develop a potential northwest extension of the Lam reservoir immediately thereafter. The An Nagyah #18, another horizontal well targeting the Lam formation, is planned to follow in the fourth quarter. All of these wells, including the An Nagyah #15 drilled earlier this year, are horizontal wells located and designed to optimize recovery of oil from the An Nagyah field. International Exploration Approximately $8 million has been allocated to international exploration in 2005, with the majority dedicated to the exploration program in the company's Block S-1 in Yemen. An exploration well on the company's Wadi Markhah prospect was drilled and partially tested during the second quarter. The primary objective resulted in non-commercial shows, but a shallower prospective zone remains to be tested. The well is suspended until a workover rig can be secured for additional evaluation of this shallow zone. Also in Yemen, the company installed two pumping units and began a long-term test during the second quarter to assess the economic feasibility for further development of the shallow reservoirs at its Harmel discovery. Vintage Petroleum, Inc. is an independent energy company engaged in the acquisition, exploitation and exploration of oil and gas properties and the marketing of natural gas and crude oil. Company headquarters are in Tulsa, Oklahoma, and its common shares are traded on the New York Stock Exchange under the symbol VPI. CONTACT: Vintage Petroleum, Inc. Tulsa Robert E. Phaneuf Tel: 918-592-0101 Web site: http://www.vintagepetroleum.com ============= B E R M U D A ============= ANECO REINSURANCE: Scheme Creditors to Get Final Dividend --------------------------------------------------------- IN THE MATTER OF SECTION 99 OF THE COMPANIES ACT 1981 And IN THE MATTER OF Aneco Reinsurance Underwriting Limited- in Liquidation The Liquidators of Aneco Reinsurance Underwriting Limited - in Liquidation have declared a Second and Final Dividend payable to Scheme Creditors, whose claims have been agreed, pursuant to the Scheme of Arrangement that became effective on June, 2002. The final dividend cheques will be dispatched to Scheme Creditors during August 2005. Any enquiries regarding the above should be addressed to the Joint Liquidators. CONTACT: The Joint Liquidators Aneco Reinsurance Underwriting Limited - in Liquidation PricewaterhouseCoopers PO Box HM 1171 Hamilton Bermuda HM EX Phone: 441-295-2000 Fax: 441-295-1242 TRA INSURANCE: Liquidators Declare Dividend Payable to Creditors ---------------------------------------------------------------- IN THE SUPREME COURT OF BERMUDA COMPANIES (WINDING-UP) And IN THE MATTER OF THE COMPANIES ACT 1981 And IN THE MATTER OF TRA Insurance Company Limited - in Liquidation (Under an Order for Winding-Up the above-named Company, dated 29th September, 2000) NOTICE OF DIVIDEND The Liquidators of TRA Insurance Company Limited - in Liquidation have declared a First and Final Dividend payable to Creditors whose claims have been agreed in accordance with the Notice to Creditors to Submit Claims dated May 31, 2005. The final dividend cheques will be dispatched to Creditors during August 2005. Any enquiries regarding the above should be addressed to the Joint Liquidators. CONTACT: Joint Liquidator TRA Insurance Company Limited - in Liquidation PricewaterhouseCoopers P.O. Box HM 1171 Hamilton HMEX Bermuda Phone: 441-295-2000 Fax 441-295-1242. ============= B O L I V I A ============= AGUAS DEL ILLIMANI: Regulator Sees Audit Pact in the Offing ----------------------------------------------------------- Bolivia's government and outgoing water concessionaire Aguas del Illimani (AISA) may reach a pact soon over the terms of an audit of the Company, Business News Americas reports, citing Alvaro Camacho, director of the country's water regulator Sisab. "Due to the amount of public pressure pushing for a solution, Sisab is recommending the government try hard to get a deal on the issue," Camacho said Residents groups have threatened to lodge street protests if AISA is not relieved of its concession as promised by interim President Eduardo Rodriguez last month. "The neighborhood protest groups are in a weak position because they realize investment is needed to extend water services. But in these situations you never know what can happen," Camacho said. "In the long term it all really hangs on the outcome of the audit - the terms of which the public services ministry is negotiating now," he added. A three-man transition team will be appointed to audit AISA's books and inspect the condition of the potable water and sanitation infrastructure and service to determine levels of investment. The government wants the audit to cover the whole period of the concession because it is important to establish the source of funds used in infrastructure investment to ensure they did not come from water charges revenues. But AISA has been resisting the probe claiming that the period 1997-2001 has already been covered by a previous audit. AISA, a subsidiary of French energy group Suez, is in handover talks with Sisab and basic services ministry (VSB) officials after the government rescinded its 30-year concession after residents protested over Aisa's supposed poor service. The World Bank (WB) will provide assistance in the process to turn the concessionaire back over to the state, according to WB regional director Marcelo Giugale. =========== B R A Z I L =========== BRASKEM S.A.: Net Income Reaches $428M in 2Q05 ---------------------------------------------- Braskem S.A. (NYSE: BAK) (Bovespa: BRKM5) (Latibex: XBRK), leader in the thermoplastic resins segment in Latin America and one of the largest Brazilian privately- owned industrial companies, announced Wednesday its results for the second quarter (2Q05) and first half (1H05) of 2005. HIGHLIGHTS - Braskem maintained high production volumes in the second quarter of 2005 as a result of investments in production capacity increases implemented since 2004 along with high asset utilization rates due to higher levels of operating efficiency and reliability. - Polypropylene production exhibited considerable growth of 28% in 1H05 compared to 1H04. Also, PP production increased by 19% in 1Q05. - Total sales volume of thermoplastic resins (PE, PP and PVC) grew by 7% in 1H05. In 2Q05, sales grew by 2% over 2Q04. - Braskem achieved record results in the export market in 1H05. Net export revenue reached US$509 million, a 44% increase compared to the US$353 million recorded during the same period in 2004. - Braskem posted a 22% increase in its 1H05 net revenue, which reached R$ 6 billion. - Braskem's EBITDA reached R$1.3 billion in 1H05, a 10% increase compared to EBITDA of R$1.1 billion recorded in the same period of 2004. When expressed in dollars, EBITDA reached US$489 million, representing a 27% increase over 1H04. During the 2Q05, EBITDA expressed in U.S. dollars was 11% lower than during the same period in 2004. Nevertheless, the ratio of EBITDA to net income remained approximately at 20%, the highest in the international petrochemical sector, according to Braskem's own research. - Braskem successfully completed three important debt offerings in 2Q05 at very competitive costs: US$150 million in 10-year bonds, US$150 million in perpetual bonds and R$ 300 million in 5-year debentures. These new funds enabled a substantial reduction in the cost of capital and an extension of the average debt maturity from 3.2 years on March 31, 2005, to over 9 years by the end of 2Q05. - When denominated in U.S. dollars, Braskem's net debt decreased by 16%, from US$1.5 billion to US$ 1.2 billion. Braskem's level of financial leverage, measured by the Net Debt/ EBITDA ratio, decreased by 29% during the same period, from 1.52 on December 31, 2004, to 1.27 on March 31, 2005, and finally to 1.08 on June 30, 2005. - Braskem has made significant progress in its operational excellence program called "Braskem +". Since the implementation of the program in 2004, the Company has captured R$ 192 million in productivity gains, on an annual and recurring basis. - In June, in accordance with its value creation agenda, Braskem announced two important expansion projects: a joint venture with Petroquisa, in Paulinia (Sao Paulo state) to build a 350,000 ton polypropylene plant and the result of a Memorandum of Understanding executed in February 2005 with Pequiven for the construction of a 400,000 ton polyethylene (PE) plant in Venezuela. - Braskem's net income reached R$428 million in 2Q05, corresponding to a R$730 million reversal in relation to the R$302 million loss recorded during the same period in 2004. In 1H05, net income was R$634 million, representing an increase of over R$900 million when compared to 1H04. CONTACT: Braskem S.A. Investor Relations Jose Marcos Treiger Phone: 011-55-11-3443-9529 or E-mail: jm.treiger@braskem.com.br or Luiz Henrique Valverde Phone: 011-55-11-3443-9744 or E-mail: luiz.valverde@braskem.com.br or Luciana Ferreira Phone: 011-55-11-3443-9178 or E-mail: luciana.ferreira@braskem.com.br URL: http://www.braskem.com.br NET SERVICOS: Reports $37.7M Net Income for 2Q05 ------------------------------------------------ Net Servicos de Comunicacao S.A. (Nasdaq: NETC) (Bovespa: NETC4 and NETC3) (Latibex: XNET), the largest Pay-TV multi-service operator in Latin America, and an important provider of bi- directional broadband Internet access (Virtua), announced Wednesday its 2Q05 financial results. The following financial and operating information, except where otherwise stated, is presented in U.S. GAAP on a consolidated basis. Net Revenue ended the quarter at US$155.5 million, a 39.4% growth in comparison to the US$111.6 million recorded in 2Q04. Subscriber base increase, in both Pay-TV and broadband segments, in addition to the increase in PPV revenues generated the positive top line result. Consolidated EBITDA totaled US$47.2 million, up by 62.4% in comparison to the US$29.0 million recorded in 2Q04. Operating Income continues its growth trend, ending 2Q05 with a 120.5% increase, US$31.2 million versus US$14.2 million in 2Q04. Following the conclusion of the final stage of the debt restructuring in 2Q05, Net Debt dropped to US$224.5 million, resulting in a Net debt to last 12 month EBITDA ratio of 1.42x. The Company recorded a US$37.7 million Net Income, or US$0.02 per share, versus a US$24.6 million net loss in 2Q04. This is the Company's first financial result after the conclusion of the debt restructuring and without any significant adjustment related to the restructuring. The result recorded shows that the Company's goal of achieving an adequate capital structure and lower financial expenses was fully reached. CONTACT: Net Servicos de Comunicacao S.A. Investor Relations Marcio Minoru Phone: 011-5511-2111-2811 or E-mail: minoru@netservicos.com.br or Sandro Pina Phone: 011-5511-2111-2721 or E-mail: sandro.pina@netservicos.com.br URL: http://www.ir.netservicos.com.br ============= E C U A D O R ============= PETROECUADOR: President Quits Post at Energy Minister's Behest -------------------------------------------------------------- Carlos Pareja has resigned from his post as president of state oil company Petroecuador, Bloomberg reports, citing a company spokesman. Petroecuador spokesman Eduardo Naranjo revealed that Pareja was asked to resign by Energy & Mines Minister Ivan Rodriguez after he advised the Energy Ministry to cancel a contract with U.S. company Occidental Petroleum Corp. Occidental was granted exploitation rights in January 1985 to the oil fields in Block 15, located some 240 kilometers (150 miles) east of Quito, the capital. Pareja alleged that Occidental transferred 40% of its concession shares in Block 15 to Canadian petroleum company EnCana in November 2000 without authorization from the Energy Ministry. Ecuador's hydrocarbons law establishes that once a contract is rescinded, the Company has to transfer back to the government all its investments and property in the country. Pareja said Occidental had not offered convincing legal arguments to counter a request made a year ago by Solicitor General Jose Maria Borja to revoke the concession. The solicitor general also charged that Occidental invested less than required in the Block 15 concession and had been repeatedly fined for breaking the country's petroleum regulations. ============= J A M A I C A ============= NCB JAMAICA: Ratings Constrained By Jamaica's Sovereign Ratings --------------------------------------------------------------- CREDIT RATING - B/Stable/B Outstanding Rating(s) Counterparty Credit - B/Stable/B Certificate of deposit - B/B Rationale The ratings on National Commercial Bank Jamaica Ltd. (NCB) are constrained by the sovereign ratings on Jamaica, as sovereign bonds and loans to public entities represent most of NCB's assets. The ratings are also constrained by NCB's larger-than- peer loan concentration in its main clients and its operating in a relatively small, highly indebted, and nondiversified economy. The ratings are supported by the bank's relevant market presence in the Jamaican banking system and consistent improvements in its operating performance. NCB maintains a large exposure to Jamaica's government, represented by investments in government bonds. In addition, an important portion of the loan portfolio is concentrated in Jamaican public-sector companies in which the government is the ultimate payer. Concentration in NCB's loan portfolio is higher than that observed in other Central American and Caribbean banks because the loan portfolio is relatively small, there is a reduced number of clients, and loans are larger than those of other institutions. Although NCB is increasing its consumer loans to improve margins and to diversify its loan portfolio, its main business is commercial lending, and it will take time to decrease concentrations and change the business mix. NCB is one of the leading institutions in Jamaica, holding around a 35% market share in terms of deposits. The bank benefits from strong brand-name recognition, maintains an important presence in retail banking, and holds a leading position in the island's credit card business. The bank benefited in the past year from a positive environment of a stable foreign exchange market, lower rates than prior years, and improved economic conditions. In addition, it strengthened credit risk underwriting by centralizing and focusing processes, updating credit limits, and strengthening credit approval processes for consumer loans. While growth in the loan portfolio continues on a positive trend, loans still represent a small 22% of total assets as of March 2005. The nonperforming asset (NPA) ratio has improved to 3.8% at March 2005 from 5% reported in 2003. On the same positive trend, reserve coverage was maintained at an adequate 1.4x the balance of NPAs. As credit underwriting has strengthened, it is expected that asset quality will remain at current levels, barring any major event in Jamaica's economy. Improvements in NCB's financial profile have been achieved as per loan growth, higher participation of consumer loans, and improving asset quality. Nevertheless, the bank's cost-to-income ratio is still at a weak 63%, and although it has shown a positive trend in the past two years, it will pose a challenge to maintain as the bank follows its expansion strategy. In Standard & Poor's Ratings Services' view, the bank maintains a high regulatory capital ratio that allows loan growth, but given expansion plans, capital ratios could be under pressure in the future. Outlook The stable outlook mirrors the outlook on Jamaica's sovereign credit ratings, and reflects NCB's significant exposure to that country, with most of the bank's assets represented by government securities. NCB has improved its financial profile, but it is challenged to further increase its loan portfolio, maintaining adequate asset quality and reducing loan concentration. The positive developments concerning profitability are expected to continue; however, an improvement in efficiency has to be implemented to maintain the trend. We expect that NCB has the ability to maintain adequate profitability ratios as a consequence of its important market share, and the increasing focus on growing its consumer loan portfolio under prudent underwriting standards. Primary Credit Analyst: Leonardo Bravo, Mexico City (52)55-5081-4406; leonardo_bravo@standardandpoors.com Secondary Credit Analyst: Jaime Carreno, Mexico City (52) 55-5081-4417; jaime_carreno@standardandpoors.com =========== M E X I C O =========== AXTEL: Revenue from Operations Reaches Ps.1.2 Bln in 2Q05 --------------------------------------------------------- Axtel, S.A. de C.V., a leading telecommunications services provider in Mexico, announced that its unaudited second quarter and last twelve-month results ended June 30, 2005. Comparisons in pesos are in real terms, that is, adjusted for inflation. Revenues We derive our revenues from: - Local calling services. We generate revenues by enabling our customers to originate and receive an unlimited number of calls within a defined "exchange" area. Customers are charged an initial fee for the activation of the service, a flat monthly fee for basic service, a per call fee (measured service) and a per minute usage fee for calls completed on a cellular line ("calling party pays", or CPP, calls). - Long distance services. We generate revenues by providing long distance services (domestic and international) for our customers' completed calls. - Other services. We generate revenues by providing other services to our customers including internet, data, interconnection and dedicated private line service, as well as value-added services such as caller ID, call waiting, call forwarding and voicemail among others. Revenues from operations Revenues from operations increased to Ps. 1,200.1 million in the second quarter of year 2005 from Ps. 935.7 million for the same period in 2004, an increase of Ps. 264.4 million or 28%. Our lines in service at the end of the second quarter of 2005 increased to 529,653 from 388,194 at the end of the same period in 2004, an increase of 36%. Revenues from operations increased to Ps. 4,377.6 million for the twelve-month period ended June 30, 2005 from Ps. 3,487.4 million for the same period in 2004, an increase of Ps. 890.2 million or 26%. This result was driven due to the launch of operations of six new cities during the second half of 2004 and infrastructure expansion in the current cities, resulting in a higher customer base and traffic growth. We derived our revenues from the following sources: Local services - Local service revenues increased to Ps. 859.5 million for the three-month period ended June 30, 2005 from Ps. 669.8 million for the same period ended 2004, an increase of Ps. 189.8 million or 28%. For the twelve-month period ended June 30, 2005, local services increased to Ps. 3,095.5 million from Ps. 2,510.6 million recorded in the same period of 2004, an increase of Ps. 584.9 million or 23%. Higher number of lines in service reflected in the monthly rent and a higher cellular consumption were the main drivers of these increases. Long distance services - Long distance service revenues increased to Ps. 112.0 million for the three-month period ended June 30, 2005 from Ps. 93.5 million in the same period in 2004, an increase of Ps. 18.6 million or 20%, due to our increased customer base. For the twelve-month period ended June 30, 2005, long distance services increased to Ps. 415.7 million from Ps. 351.9 million registered in the same period in 2004, an increase of Ps. 63.8 million or 18%. Other services. Revenue from other services increased to Ps. 228.6 million in the first quarter of 2005 from Ps. 172.5 million in same period in 2004, an increase of Ps. 56.1 million or 33%. Other services revenue increased to Ps. 866.5 million for the twelve-month period ended June 30, 2005 from Ps. 625.0 million for the same period in year 2004, an increase of Ps. 241.5 million or 39%. Cost of Revenues and Operating Expenses Cost of Revenues - For the three-month period ended June 30, 2005, the cost of revenues was Ps. 375.7 million, an increase of Ps. 87.5 million compared with the same period of year 2004. For the twelve-month period ended June 30, 2005, the cost of revenues reached Ps. 1,399.5 million, an increase of Ps. 384.7 million in comparison with the same period in year 2004. Both increases were mainly due to a higher consumption in cellular and domestic long distance traffic. Gross Profit- Gross profit is defined as revenues minus costs of revenues. For the second quarter of 2005, the gross profit accounted for Ps. 824.5 million, an increase of Ps. 176.9 million or 27%, compared with the same period in year 2004. For the twelve-month period ended June 30, 2005, our gross profit increased to Ps. 2,978.1 million from Ps. 2,472.6 million recorded in the same period of year 2004, an increase of Ps. 505.5 million or 20%. Quarterly Results Report Q2 2005 Operating expenses. For the second quarter of year 2005, operating expenses grew Ps. 79.2 million totaling Ps. 407.5 million. During the same period of year 2004 this amount was Ps. 328.3 million. For the twelve-month period ended June 30, 2005, operating expenses increased Ps. 300.2 million coming from Ps. 1,261.6 million in 2004 to Ps. 1,561.9 million in 2005. These increases were attributable primarily to rents, sales commissions and advertising expenses related to the current operational levels of the Company. Costs are categorized as follows: - Cost of revenues include expenses related to the termination of our customers' cellular and long distance calls in other carriers' networks, as well as expenses related to billing, payment processing, operator services and our leasing of private circuit links. - Operating expenses include costs incurred in connection with general and administrative matters which incorporate compensation and benefits, the costs of leasing land related to our operations and costs associated with sales and marketing and the maintenance of our network. - Depreciation and amortization includes depreciation of all communications network and equipment and amortization of pre- operating expenses and the cost of spectrum licenses. Adjusted EBITDA - (1) The Adjusted EBITDA was Ps. 417.0 million for the three-month period ended June 30, 2005 as compared to Ps. 319.3 million for the same period in 2004, an increase of 31%. As a percentage of total revenues it was 35% for the three- month period ended June 30, 2005. For the twelve-month period ended June 30, 2005 it increased to Ps. 1,416.3 million from Ps. 1,211.0 million in the same period in year 2004, an increase of Ps. 205.3 million, or 17.0%. Depreciation and Amortization - As a result of the continuing expansion of our asset base, depreciation and amortization increased to Ps. 264.4 million for the three-month period ended June 30, 2005 from Ps. 251.1 million for the same period in year 2004, an increase of Ps. 13.3 million or 5%. Depreciation and amortization for the twelve-month period ended June 30, 2005 reached Ps. 1,045.6 million from Ps. 960.6 million in the same period in year 2004, an increase of Ps. 85.0 million or 9%. Operating Income (loss) - Operating income increased to Ps. 152.5 million for the three-month period ended June 30, 2005 compared to an operating income of Ps. 68.2 million registered in the same period in year 2004, an increase of Ps. 84.4 million or 124%. For the twelve-month period ended June 30, 2005 our operating income reached Ps. 370.7 million when compared to the income registered in the same period of year 2004 of Ps. 250.3 million, an increase of Ps. 120.3 million or 48%. Comprehensive financial result - The comprehensive financial gain was Ps. 13.9 million for the three-month period ended June 30, 2005, compared to a comprehensive financial loss of Ps. 101.8 million for the same period in 2004. This result was based on the issuance of Senior Notes and the foreign exchange gain. Capital Expenditures - Axtel invested Ps. 332.9 million in fixed assets during the second quarter of year 2005 vs. Ps. 307.2 million during the same period of year 2004, an 8% increase. For the twelve-month period ended June 30, 2005, Axtel invested Ps. 1,722.8 million in fixed assets compared to Ps. 801.4 million of the same period of year 2004, an increase of Ps. 921.4 million, or 115%. This investment was targeted towards the expansion of our network infrastructure both in current and new cities, as well as the net lines added during this period. AXTEL is a leading fixed-line telecommunications provider in Mexico. It offers local, domestic and international long distance, internet and value-added services. It provides a basic telecom infrastructure in Mexico through its intelligent network, offering a wide range of services to all its markets. Headquartered in Monterrey, AXTEL also has offices in Guadalajara, Leon, Mexico, Puebla, Toluca, Queretaro, San Luis Potosi, Aguascalientes, Saltillo, Cd. Juarez and Tijuana. CONTACT: Axtel, S.A. de C.V. Corporate Communication Jose Manuel Basave E-mail: jmbasave@axtel.com.mx URL: www.axtel.com.mx GRUPO MEXICO: Workers Plan Work Stoppage on Aug. 12 --------------------------------------------------- An estimated 4,000 workers at Grupo Mexico's facilities in northern Sonora are threatening to go on strike on August 12 unless the Company agrees to a new collective work contract for workers at its U.S. subsidiary Asarco. A spokesman for the Mexican Miners' and Metalworkers' Union said Wednesday the strike in Mexico will last only one day and will affect the two processing plants and all three mines of the company in Sonora state, including the two giant mines La Caridad and La Cananea. More than 1,500 workers stopped work on Asarco facilities in the U.S. on July 2 after failing to reach an agreement with the Company over a labor dispute and Asarco has since said it is at risk of filing for Chapter 11 reorganization if the one-month long strike continues. The two sides are scheduled to meet again in the U.S. on Aug. 12, on the day the Mexican workers will make their solidarity one-day strike with the U.S. workers. "It is very important to show solidarity between the workers of the same company and that's why we are doing this," the union spokesman said. CONTACT: GRUPO MEXICO S.A. DE C.V. Avenida Baja California 200, Colonia Roma Sur 06760 Mexico, D.F., Mexico Phone: +52-55-5264-7775 Fax: +52-55-5264-7769 Web site: http://www.gmexico.com HYLSAMEX: To Make $143M Dividend Payment on Aug. 22 --------------------------------------------------- Steelmaker Hylsamex informed the Mexico City's bourse (BMV) that it will pay a total of US$143 million in dividends on August 22, relates Business News Americas. The dividends will be paid in US dollars at US$0.235 apiece to shareholders of record by August 12, Hylsamex said. The dividends are tied to Argentine-Italian group Techint's public offer for Hylsamex's outstanding shares. Techint said its public offer of US$3.4732 per share to shareholders will be followed by the US$143 million payout to shareholders once the buyout is accepted. But whether or not shareholders accept Techint's public offer, they will still receive the dividend, said Hylsamex. CONTACT: Othon Diaz Del Guante Tel: +(52) 81-8865-1240 E-mail: odiaz@hylsamex.com.mx Ismael De La Garza Tel: +(52) 81-8865-1224 E-mail: idelagarza@hylsamex.com.mx Kevin Kirkeby Tel: +(646) 284-9416 E-mail: kkirkeby@hfgcg.com SANLUIS CORPORACION: Reports $159.0M Sales in 2Q05 -------------------------------------------------- SANLUIS Corporacion, S.A. de C.V. (BMV: SANLUIS), a Mexican industrial group that manufactures autoparts (Suspension and Brake components), reported Wednesday results for the three months ended June 30, 2005. Sales were US$159.0 million in the second quarter of 2005, and US$310.4 million for the first half of the year. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) in the last three months were US$17.6 million (11% to sales), and US$32.8 million (11% to sales) for the first half of 2005. Compared to the second quarter of last year, sales increased 5 % while EBITDA increased 14 %; comparing against the first half of 2004, sales increased 8% and EBITDA increased 5%. With the excellent sales levels achieved in the first half of 2005, the consolidated operating results of SANLUIS are better than those obtained in the same period of last year, allowing the Company, through additional productivity improvements and lower operational costs to partially close the gap with the profitability levels that were consistently obtained in the past. For the first half of 2005, sales in the Suspension Division (83% of total sales volume) were 18% above the previous year levels, with almost all product lines having important increases in dollar terms (Leaf Springs: +18%, Coil Springs: +32%); whereas the Brake Division (17% of total sales volume) posted a decrease of 22% in the first half of the year, affected by low sales volume in an aging platform which is in its final production year, and the low start in the ramp-up programs for its successor platforms. The Operating margin (EBITDA/Sales) in the first half of this year is similar to the one achieved in the same period of last year (11%), due to the larger sales in our NAFTA related Suspension business (65% of consolidated sales) and our Brazilian Suspension operations (18% of sales). The Brake Division (17% of sales) reported decreased EBITDAs in spite of lower fixed manufacturing costs and improved productivity levels due to the sales decline described above. The larger consolidated EBITDA recorded in the second quarter and in the first half of 2005 against last year, is the result of the commanding market share achieved by the company in the Light Truck segment in the United States, a segment that represents 54% of the North American automotive market with positive levels of growth, and the compensation of the high cost of steel through higher sale levels, new contracts at updated prices, lower fixed manufacturing costs, improved productivity levels and a broader diversification in the sourcing of raw materials, which underline the Company's efforts in its recovery process towards the operating profitability levels that it consistently achieved in the past. Additionally to the larger EBITDA level recorded and due to the revaluation of the Mexican Peso against the US Dollar during the reported period, an Exchange Gain was generated based on our net liability position in foreign currency, this plus the Monetary Gains on the net liability position of the company, produced a Net Profit for the first half of 2005 of US$6.2 million, which favorably compares to the US$0.6 million reported a year earlier. In terms of cash-flow generation, the Company was able to increase its available cash and marketable securities at the end of the quarter by reducing its Capital Expenditures, a better working capital management mainly based in a raw material inventory reduction and a rationalization on its purchases of raw materials and components, improving supplier financing days outstanding. SANLUIS produces suspensions and brake components for the global automotive industry, with a focus on Original Equipment Manufacturers (OEMs). Suspension products include Leaf Springs (parabolic and multi- leaf), Coil Springs, Torsion Bars, Bushings, and Stabilizer Bars. The Brake Division produces Drums and Discs. SANLUIS-Rassini has a 90% share of the NAFTA market (U.S., Mexico and Canada) for light truck suspensions. Its solid and diversified client base includes General Motors, Ford Motor Company, Daimler-Chrysler, Nissan, Volkswagen and Toyota. In the Brake division, SANLUIS-Rassini has a 12% market share in the light truck and automobile segment of the U.S. and Canada markets. CONTACT: SANLUIS Corporacion, S.A. de C.V. Antonio Olivo Phone: (5255) 5229-58-44 Fax: (5255) 5202-66-04 URL: www.sanluiscorp.com E-mail: aolivo@sanluiscorp.com.mx SATMEX: To Ship Satmex 6 Back to U.S. Lab ----------------------------------------- Satelites Mexicanos SA will ship its crucial Satmex 6 satellite back to the U.S. laboratory where it was made to get it certified for a launch into space, reports Dow Jones Newswires. Satmex said the satellite will undergo seven months of reconditioning. The Company must get Satmex 6 airborne by June 30, 2006 to comply with an agreement reached with U.S. creditors last week. The creditors, who hold at least US$379 million of Satmex's US$523 million in overdue notes agreed on July 29 to allow bankruptcy proceedings to go ahead under Mexican jurisdiction. In a statement, the creditors said they would withdraw their chapter 11 involuntary bankruptcy filing with a US court in exchange for certain conditions. The conditions include a commitment from Satmex to file a 304 petition to a US bankruptcy court. The 304 petition basically means that the US bankruptcy court will continue to have some role in the restructuring proceedings, even though the bankruptcy will take place under Mexican law. The US court will have to respect the rulings of the Mexican jurisdiction. However, the petition will preserve the option of returning to a US court if the bankruptcy proceedings in Mexico become stalled. The agreement has set certain time limits. Satmex must make a financial restructuring proposal to the US creditors by October 31. Secondly, the Satmex 6 satellite, whose launch is seen as essential for the future survival of the company, must be launched by June 30, 2006. The satellite has been grounded for two years awaiting stabilization of Satmex's financial situation. Creditors have promised to provide the US$50 million needed to ensure the satellite's launch once a restructuring process is complete. Satmex is owned by Loral Space & Communications Ltd. (LRLSQ) of the U.S., and Principia SA, which is run by Autrey. The Mexican government has a 23.6% non-voting stake in the company. ===================== P U E R T O R I C O ===================== CENTENNIAL COMMUNICATIONS: To Restate 3Q05 Financial Statements --------------------------------------------------------------- Centennial Communications Corp. (NASDAQ: CYCL) announced Wednesday that it will restate its financial statements for the three and nine months ended February 28, 2005 to correct an error in the amount of deferred income taxes included in the calculation of the gain on disposition of the Company's previously owned cable television subsidiary, Centennial Puerto Rico Cable TV Corp. Centennial Cable was sold on December 28, 2004, and the disposition was accounted for as a discontinued operation. The correction of this error will result in non-cash adjustments to the Company's gain on disposition of discontinued operations, net income from discontinued operations, consolidated net income and total stockholders' deficit. The restatement will not affect previously reported revenue, adjusted operating income, cash flow or income from continuing operations. The net effect of the restatement as of and for the three and nine months ended February 28, 2005 is: - increase gain on disposition of discontinued operations by $24,272,000; - increase net income from discontinued operations by $15,579,000; - increase consolidated net income by $15,579,000; and - decrease total stockholders' deficit by $15,579,000. The Company's management believes that the accounting error discussed above was inadvertent. The Company identified the error through application of certain internal controls that were implemented during the fiscal fourth quarter of 2005. Accordingly, the Company believes that, prior to year-end, it remediated the control weakness associated with these adjustments. The Company intends to present additional detail regarding the restatement in its Annual Report on Form 10-K for the year ended May 31, 2005. Centennial Communications, based in Wall, NJ, is a leading provider of regional wireless and integrated communications services in the United States and the Caribbean with over 1.1 million wireless subscribers. The U.S. business owns and operates wireless networks in the Midwest and Southeast covering parts of six states. Centennial's Caribbean business owns and operates wireless networks in Puerto Rico, the Dominican Republic and the U.S. Virgin Islands and provides facilities- based integrated voice, data and Internet solutions. Welsh, Carson Anderson & Stowe and an affiliate of the Blackstone Group are controlling shareholders of Centennial. CONTACT: Centennial Communications Steve E. Kunszabo Director, Investor Relations Phone: 732-556-2220 URL: http://www.centennialwireless.com/ http://www.centennialpr.com/ http://www.centennialrd.com/ ================================= T R I N I D A D & T O B A G O ================================= BWIA: Expects More Flexibility After T&T Regains Cat. 1 Status -------------------------------------------------------------- Trinidad and Tobago has regained its Category One status from the United States Federal Aviation Administration, Prime Minister Patrick Manning announced Tuesday at a Whitehall press conference. Although the reinstatement to Category One status does not necessarily mean that national airline BWIA has been guaranteed a lifeline, it does offer the airline some flexibility in its operations. "It gives BWIA a lot more flexibility than we would have had as a Category Two. They can now identify new destinations within the United States, which means if BWIA wishes to add a new destination or adjust its flights it can now do so. It could not have done so prior to the advent of Category One." Moreover, the reinstatement allows access for the new Airbus A340 which BWIA had acquired, Manning said. T&T country lost its Category One status in 2001 because the International Civil Aviation Organization prescribed new requirements with which the country was not in compliance. To regain its status, T&T satisfied all eight of the critical elements for its assessment, including such tenets as legislation (in 2001 a new Civil Aviation Act was passed), licensing of pilots, engineers, aircraft operators, certification of air operators, aircraft maintenance, trained inspectors, procedures, amongst others. CONTACT: BRITISH WEST INDIES AIRWAYS (BWIA) Phone: + 868 627 2942 E-mail: mail@bwee.com Home Page: http://www.bwee.com ================= V E N E Z U E L A ================= CANTV: Shares Continue Downward Trend Following Court Ruling ------------------------------------------------------------ Shares of Nacional Telefonos de Venezuela (VNT) (CANTV) continue to take a beating since the Company announced last week that a pension dispute with workers could hurt its financial standing. Dow Jones Newswires reveals that CANTV's shares traded on the Caracas Stock Exchange closed down 2.15% at VEB5000 ($1=VEB2,150) per share on Wednesday, an almost continuous decline since the announcement. CANTV shares traded in New York as American Depositary Receipts closed down 2.84% at $13.33 per share, according to New York Stock Exchange data. Venezuela's Supreme Court ordered CANTV last week to adjust the pensions of more than 3000 workers to a new minimum wage level. Telecom executives haven't given any detailed figures yet on what this could end up costing. "A big factor in the drop is the lack of precise information," of what this will cost the company, said Leonardo Emperador, a trader with brokerage Intervalores. "Logic would say this is a buying opportunity, but it's hard to say for sure." CANTV is the leading Venezuelan telecommunications services provider with approximately 3.1 million access lines in service, 3.1 million cellular subscribers and 363 thousand Internet subscribers as of December 31, 2004. The Company's principal strategic shareholder is a wholly owned subsidiary of Verizon Communications Inc. with 28.5% of the capital stock. Other major shareholders include the Venezuelan Government with 6.6% of the capital stock (Class B Shares), employees, retirees and employee trusts which own 7.1% (Class C Shares) and Telefonica de Espana, S.A. with 6.9%. Public shareholders hold the remaining 50.9 % of the capital stock. CONTACT: Cantv Investor Relations Phone: +011 58 212 500-1831 (Master) +011 58 212 500-1828 (Fax) E-mail: invest@Cantv.com.ve The Global Consulting Group Ms. Lauren Puffer Phone: 646 284-9426 (US) E-mail: lpuffer@hfgcg.com *********** 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. 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