/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/050919.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, September 19, 2005, Vol. 6, Issue 185 Headlines A R G E N T I N A FERRELEC CONSTRUCCIONES: Reorganization Plan Set for Creditors GATIPRINT S.A.: Individual Report to be Presented Sep. 20 JORSIN S.R.L.: Trustee to Submit Report on Company Liquidation NEOFONE DIGITAL: General Report Due for Submission Sep. 20 TRANSENER: Renegotiates Contract With Government ZEITEK S.A.: General Report Deadline Approaches B A H A M A S KERZNER INTERNATIONAL: Moody's Assigns B2 to Gtd Sr. Sub Notes B E R M U D A ANNUITY & LIFE: Enters Purchase Agreement with Overseas Partners B O L I V I A AGUAS DEL ILLIMANI: Regulator Prepares Audit Guidelines B R A Z I L BANCO DO NORDESTE: S&P Affirms Current Ratings CELPE: Appeals Court Authorizes Rate Hikes GENERAL MOTORS: Considers Sending 600 Workers Home GERDAU S.A.: Issues $600M Guaranteed Perpetual Senior Notes NET SERVICOS: Upgraded to Overweight by Morgan Stanley E C U A D O R * ECUADOR: Reaffirms Intent to Meet Debt Payment Schedule E L S A L V A D O R * EL SALVADOR: Sovereign Credit Ratings Affirmed; Outlook Stable J A M A I C A KAISER ALUMINUM: Court OKs Voting Protocol Revision M E X I C O ASARCO: Proposal Undermines Bankruptcy Reorganization Effort CINTRA: Reveals New Timetable on Airlines' Privatization DESARROLLADORA HOMEX: S&P Rates $200M Notes 'BB-' SATMEX: Concurso Mercantil Launced SICARTSA: Workers End Strike After Accepting Revised Offer TV AZTECA: ADR Exchange Period Expires V E N E Z U E L A ALIMENTOS POLAR: Condemns Seizure of Storage Facilities - - - - - - - - - - ================= A R G E N T I N A ================= FERRELEC CONSTRUCCIONES: Reorganization Plan Set for Creditors -------------------------------------------------------------- Ferrelec Construcciones S.A., a company operating in Rio IV, will propose a settlement plan to its creditors in an informative assembly on Oct. 13, 2005. The assembly is the last phase of the reorganization. Infobae relates that the Company began reorganization proceedings after the city's civil and commercial Court No. 3 granted its petition for "concurso preventivo". GATIPRINT S.A.: Individual Report to be Presented Sep. 20 --------------------------------------------------------- The individual claims of creditors against bankrupt company Gatiprint S.A. will be presented in court tomorrow, Sep. 20, 2005. The claims underwent verification, which ended on June 28, 2005. Court No. 7 of Buenos Aires' civil and commercial tribunal declared Gatiprint S.A. bankrupt. Mr. Jorge Stanislavsky serves as trustee on this case. The city's Clerk No. 14 assists the court on this case. CONTACT: Mr. Jorge Stanislavsky, Trustee Talcahuano 768 Buenos Aires JORSIN S.R.L.: Trustee to Submit Report on Company Liquidation -------------------------------------------------------------- Mr. Pedro Luis Santamaria, the trustee appointed by the court for the Jorsin S.R.L. liquidation, will submit the general report in court tomorrow, Sep. 20, 2005. Mr. Santamaria verified creditors' proofs of claims until June 14, 2005. The validated claims were presented in court as individual reports on Aug. 9, 2005. Buenos Aires-based Jorsin S.R.L. began liquidating its assets following the liquidation pronouncement issued by Court No. 9 of the city's civil and commercial tribunal. The bankruptcy process will end with the sale of the Company's assets. Proceeds from the sale will be used to repay the Company's debts. CONTACT: Jorsin S.R.L. Escalada 1360 Buenos Aires Mr. Pedro Luis Santamaria, Trustee Lavalle 1430 Buenos Aires NEOFONE DIGITAL: General Report Due for Submission Sep. 20 ---------------------------------------------------------- The submission of the general report on the bankruptcy of Buenos Aires-based Neofone Digital S.R.L. will be tomorrow, Sep. 20, 2005. The Company began liquidating its assets after Court No. 20 of the city's civil and commercial tribunal declared the Company bankrupt. The bankruptcy process will commence under the supervision of court-appointed trustee Roberto L. Sapollnik. Mr. Sapollnik reviewed claims forwarded by the Company's creditors until June 10, 2005. After claims verification, the trustee submitted the individual reports for court approval on Aug. 8, 2005. Clerk No. 40 assists the court on this case. CONTACT: Mr. Roberto L Sapollnik, Trustee Parana 851 Buenos Aires TRANSENER: Renegotiates Contract With Government ------------------------------------------------ A renegotiated contract for power transporter Transener passed through Congress without a vote, obtaining a de-facto legislative approval permitted by a 2002 economic emergency law, reports Dow Jones Newswires. The economic emergency law gives Congress 60 days to vote on re- negotiated utility contracts or they automatically return to the executive for final approval. Opposition legislators called a special session for the Transener contract in a last-minute bid to avoid the deadline, but failed to obtain a quorum when lawmakers from President Nestor Kirchner's wing of the Peronist party didn't show up, says Dow Jones Newswires. Under Transener's new contract, the Company is slated to receive a 31% rate increase and is committed to invest ARS32 million ($1=ARS2.92) this year. CONTACT: TRANSENER S.A. Paseo Colon 728 6th Floor (1063) Buenos Aires Republica Argentina Tel: (54-11) 4342-6925 Fax: (54-11) 4342-7147 Email: info-trans@transx.com.ar Web site: http://www.transener.com.ar ZEITEK S.A.: General Report Deadline Approaches ----------------------------------------------- The deadline for the submission of the general report on the Zeitek S.A. bankruptcy will be tomorrow, Sep. 20, 2005, following the presentation of the creditors' individual claims on Aug. 8, 2005. The claims underwent verification phase, which lasted until June 8, 2005. Court No. 25 of Buenos Aires' civil and commercial tribunal ordered the liquidation of Zeitek S.A. after the company defaulted on its debt obligations. The court assigned city accountant Bartolome Horacio Barrio to supervise the liquidation as trustee. The city's Clerk No. 50 assists the court on this case that will end with the sale of the Company's assets. CONTACT: Mr. Bartolome Horacio Barrio, Trustee Avda de Mayo 1324 Buenos Aires ============= B A H A M A S ============= KERZNER INTERNATIONAL: Moody's Assigns B2 to Gtd Sr. Sub Notes --------------------------------------------------------------- Approximately $400 million of debt affected. Moody's Investors Service assigned a B2 rating to Kerzner International Limited's ("Kerzner") proposed $400 million guaranteed senior subordinated notes due 2015, and affirmed the company's Ba3 Corporate Family Rating and stable rating outlook. The notes are offered pursuant to Rule 144A of the Securities Act of 1933. Proceeds of the note offering will be used, together with cash on hand, to repurchase all of Kerzner's 8 7/8% guaranteed senior subordinated notes tendered for pursuant to a tender offer launched on August 12, 2005. The B2 rating on the 8 7/8% notes will be withdrawn once the notes are redeemed. The B2 rating on the proposed notes considers that they will have a formal guaranty from Kerzner's operating subsidiaries. The company will have the ability to raise additional debt as long as it meets a 2.0 times fixed charge debt incurrence test, and the indenture includes a $900 million senior secured credit facility carve-out that will not be subject to the fixed charge debt incurrence test. The affirmation of the ratings considers the high quality of the company's assets and significant amount of customer loyalty attached to the Atlantis brand name and the stability of cash flows generated by the Mohegun Sun (Ba1/stable) relinquishment payments and other management contracts. Key credit concerns include the reliance on the single upscale destination resort property for a significant portion of the company's cash flow which makes it highly vulnerable to uncertain travel and economic trends. The stable rating outlook reflects adequate liquidity to supported planned development activity, a manageable debt maturity profile (including no significant maturities in 2006 when leverage is expected to peak), as well as Moody's expectation that the company will not aggressively repurchase it stock. In August 2005, Kerzner's Board of Directors has approved a share repurchase program authorizing the repurchase of up to two million ordinary shares. Ratings upside is limited by Kerzner's significant expansion activities which will likely result in peak leverage (debt/EBITDA) during construction of over 5.0x in 2006. Currently gross debt to EBITDA is around 3.6x and the company had $375 million cash on hand at June 30, 2005. The company recently commenced development of a major expansion at Atlantis that includes a 600-room all-suite luxury hotel and a significant enhancement of water-based attractions. Certain elements of this expansion have already opened with the remaining elements expected to open by early 2007. The company is also developing other projects as part of joint venture arrangements, including Atlantis, The Palm, Dubai, and is expected to pursue other new development opportunities around the world which increases overall business risk. Ratings could face downward pressure if the company were to execute material share repurchases and/or leverage increases significantly beyond current expectations. New rating assigned: $400 million guaranteed senior subordinated notes at B2. Kerzner International Limited is a developer and operator of destination resorts, casinos and luxury hotels. The company's flagship brand is Atlantis, which includes Atlantis, Paradise Island, a 2,317-room, ocean-themed destination resort located on Paradise Island, The Bahamas. ============= B E R M U D A ============= ANNUITY & LIFE: Enters Purchase Agreement with Overseas Partners ---------------------------------------------------------------- Annuity and Life Re (Holdings), Ltd. (the "Company") entered into a Purchase Agreement (the "Agreement") with Overseas Partners, Ltd. ("Overseas Partners"). The Agreement provided for the purchase by the Company from Overseas Partners of 1,773,050 common shares of the Company (the "Shares") and Class B warrants to purchasing an additional 133,396 common shares of the Company (the "Warrants") for a total cash purchase price of $1,453,901. The Company completed the acquisition of the Shares and Warrants pursuant to the terms of the Agreement on September 14, 2005. The Shares represented approximately 6.74% of the Company's outstanding common shares, and the Warrants had an exercise price of $14.06 per share. Following the acquisition, the Shares and the Warrants were cancelled by the Company. As a consequence of the repurchase of the Shares and Warrants, Overseas Partners no longer has the right to nominate one person for election to the Company's Board of Directors. CONTACT: Annuity & Life Re (Holdings), Ltd. John Lockwood Phone: 1-441-296-7667 ============= B O L I V I A ============= AGUAS DEL ILLIMANI: Regulator Prepares Audit Guidelines ------------------------------------------------------- Bolivia's basic services regulator Sisab has established the terms of reference for the proposed audit of capital La Paz waterworks concessionaire Aguas del Illimani (Aisa), a subsidiary of French energy group Suez. According to Business News Americas, Sisab is expected to take on a consultancy that will carry out the audit, which will cover the eight years since Aisa began the concession. The audit will cover technical, environmental, financial, legal and commercial performance to verify the level of compliance with the concession between July 24, 1997 and August 31, 2005. The auditors will have three months to present their conclusions from the date the audit begins. AISA has been in handover talks with Sisab and basic services ministry (VSB) officials since the government ordered the rescission of its 30-year concession in response to residents' protests over AISA's allegedly poor service. =========== B R A Z I L =========== BANCO DO NORDESTE: S&P Affirms Current Ratings ---------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-/B' foreign currency and 'BB/B' local currency counterparty credit ratings on Banco do Nordeste do Brasil S.A. (BNB) The outlook is stable. The ratings on BNB reflect ownership and support by the Federative Republic of Brazil (LC: BB/Stable/B; FC: BB- /Stable/B); the public policy role of the bank; and the favorable liquidity inflow and liability structure. "The ratings are closely linked to Brazil's sovereign risk," said Standard & Poor's credit analyst Daniel Araujo. The government holds 96% of BNB's voting shares and is involved in management of its operations. Strong sovereign support is evidenced by the government's funding and capitalization policies, despite the absence of a timely government guarantee. BNB plays a key public-policy role as the main provider of medium- and long-term funding to companies in the northeastern region of Brazil. The bank is the sole provider of long-term financing to the industrial and agricultural sectors in many northeastern states, and accounts for (on average) 76% of lending in the region. Despite the improvement in profitability in 2003 and 2004, BNB still shows an erratic profitability pattern. Some of the main negative influences on profitability include the high provisioning requirements and its high cost structure vis-�-vis its revenue stream, as indicated by the ratio of noninterest expenses to revenues. The stable outlook on the long-term rating on BNB matches that on Brazil. All things being equal, ratings on BNB should move in tandem with those on the sovereign. Borrowing from multilateral organizations is government guaranteed, and sovereign approval is required for medium- and long-term foreign funding. Given BNB's key public-policy function in the northeastern region, continued government support is expected to offset periodic pressure on its asset quality. Primary Credit Analyst: Daniel Araujo, Sao Paulo (55) 11-5501- 8939; daniel_araujo@standardandpoors.com Secondary Credit Analyst: Lisa M Schineller, New York (1) 212- 438-7352; lisa_schineller@standardandpoors.com CELPE: Appeals Court Authorizes Rate Hikes ------------------------------------------ Electric power distributor Companhia Energetica de Pernambuco SA (Celpe) can now implement an average rate increase of 32% that power regulator Aneel authorized in April. According to Business News Americas, Brazil's top appeals court STJ has reversed a lower court ruling that had barred Celpe from applying the rates adjustment. The court refuted arguments by industrial groups and politicians who wanted to limit the increases to the rate of inflation measured by the IGP-M index, the same index used in distribution companies' concession contracts. The STJ agreed with Aneel's arguments that limiting power rate increases would be a breach of contracts and could hinder investments in the country's power sector, leading to a power shortage crisis, which would be worse for consumers than paying higher rates. The STJ's ruling also allows Celpe's sister company, power distributor Cosern, to apply an average rate increase of 19% that had been limited to 11%. Celpe and Cosern are controlled by Neoenergia, the holding company for Spanish firm Iberdrola's assets in Brazil. GENERAL MOTORS: Considers Sending 600 Workers Home -------------------------------------------------- The Brazilian unit of General Motors Corp. has kicked off a program of voluntary resignations at its unit in Sao Jose dos Campos city in Sao Paulo state, according to the president of the metal workers union, which represents GM employees. Union President Luiz Carlos Prates revealed GM seeks to eliminate 600 workers as part of the Company's plan to reduce production at the said unit. "I think that it will be too difficult for the company to reach this target under the program. And if GM tries to force resignations, we are prepared for a strike," said Mr. Prates. GM is cutting the jobs because of export revenue losses brought about by the appreciation of the Brazilian real against the U.S. dollar, Prates said. The real has increased 15% against the U.S. dollar so far in 2005. GM produces almost 17,000 cars per month at its plant in Sao Jose do Camos city, which has 10,500 workers. GM has three factories in Brazil. GERDAU S.A.: Issues $600M Guaranteed Perpetual Senior Notes ----------------------------------------------------------- Gerdau S.A. (Bovespa: GGBR, NYSE: GGB, Latibex: XGGB) announced Thursday that it has launched and priced its inaugural issuance of 144A / Reg S Guaranteed Perpetual Senior Securities (the "Securities" in the aggregate principal amount of US$600 Million. The Securities will be unconditionally and irrevocably guaranteed by Gerdau's Brazilian operating companies, namely Gerdau Acominas S.A., Gerdau Acos Longos S.A., Gerdau Acos Especiais S.A. and Gerdau Comercial de Acos S.A. Final terms and conditions as of September 15, 2005: Issuer Gerdau S.A. Guarantors Gerdau Acominas S.A., Gerdau Acos Longos S.A., Gerdau Acos Especiais S.A., Gerdau Comercial de Acos S.A. Ratings Moody's: Ba1 (Stable) / S&P: BB- (Stable) / Fitch: BB- (Stable) Lead managers HSBC / Citigroup Issue Amount US$600,000,000 Issue type 144A / Reg S Settlement September 22, 2005 (T+5) Maturity Perpetual Optional Redemption Callable at Par on any interest payment date on or after Sept. 22, 2010 Interest Payment Payable Quarterly on September, December, March & June 22 Coupon 8.875% (First Coupon Payment Date: December 22, 2005) Re-offer price 100.000% Re-offer yield (Quarterly) 8.875% Interest rate basis US (NASD) 30/360 Interest rate frequency Quarterly Governing law New York Clearing DTC / Euroclear / Clearstream Listing Singapore Stock Exchange The Offering attracted orders in excess of US$3.5 billion, allowing Gerdau to upsize the final offering size from an initially announced US$300 million. Interest on the Securities will accrue at a rate of 8.875% per annum and will be paid on a quarterly basis. The Securities will be perpetual securities with no fixed maturity date or mandatory redemption date, and may be subject to redemption by Gerdau on September 22, 2010 or on any interest payment date occurring thereafter. The Securities received a rating of "Ba1" (Stable Outlook) by Moody's Investor Service, Inc., of "BB-" (Stable Outlook) by Standard & Poor's and of "BB-" (Stable Outlook) by Fitch Ratings. The geographic distribution of the offering is as follows: 46% Asian, 32% European, 20% U.S. and 2% Brazilian investors. The majority of buyers of the Securities were Private Banking and retail investors. The use of proceeds of the Securities' offering will general corporate purposes of Gerdau and its subsidiaries. The Securities have not been and will not be registered under the U.S. Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Gerdau S.A. ("Gerdau", the "Company" or the "Issuer") is the largest producer of long rolled steel products in Brazil and the second largest in North America. The Company also operates steel mills in Chile, Argentina, Uruguay and Colombia. As of June 30, 2005, Gerdau generated approximately 52% of its revenues from its Brazilian operations, 43% from North American and 5% from South American operations (excluding Brazil). NET SERVICOS: Upgraded to Overweight by Morgan Stanley ------------------------------------------------------ Investment house Morgan Stanley upgraded cable TV provider Net Servicos de Comunicacao (NETC) to overweight from underweight and raised the Company's price target to US$5.00 from $2.80, reports Dow Jones Newswires. The move came on expectation that the Company's paid TV subscribers will grow 5% in the medium term, while broadband revenue will double, to 20% of total revenue within three years. Moreover, Morgan Stanley expects Net Servicos' earnings before interest, taxation, depreciation and amortization in dollar terms to grow 18% next year and more than 20% in 2007. Morgan Stanley, however, believes Net Servicos' margins are likely to be lower in the second half of 2005 than in the first half of the year, due to greater growth, the investment house said. "Investors' reception of these lower margins is a significant short-term risk, in our view," Morgan Stanley said. 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 ============= * ECUADOR: Reaffirms Intent to Meet Debt Payment Schedule --------------------------------------------------------- President Alfredo Palacio assured creditors Thursday that his country will pay all its external debt obligations, Dow Jones Newswires relates. On his first visit to New York as Ecuador's head, Palacio spoke before representatives of several investment houses and oil and other companies at a luncheon sponsored by the Ecuadorean American Association to assure the payment of the country's debts by attracting investors. Mr. Palacio admitted that Ecuador's government lacks money to invest in the country's economy and that it needs the aid of the private sector. The Palacio administration therefore aims to create a favorable climate for the investors, starting with the proposal of electoral reforms. Reforms include the conversion of Congress into a bicameral institution as well as the election of a portion of representatives by district. President Palacio has also requested that the Congress appoint new judges to Ecuador's Supreme Court, which was dissolved in April by Mr. Palacio's predecessor, ousted President Lucio Gutierrez. Palacio saw a need for a revision of Ecuador's oil exploration and production contracts with private companies. Many of the contracts were signed when the economic scenario was different and oil prices were lower, he reasoned. He assured that his administration will be transparent and will abide by international laws. Energy Minister Ivan Rodriguez said that the government will spend the next 10 days visiting consulting firms that could be hired to help in the reviews for the oil contract revision. According to Mr. Rodriguez, Ecuador should hire a consultant next month. The goal is to finalize all the revisions early next year. "We want to do it in a professional and short way," Mr. Rodriguez said. "It will be short to avoid wearing down any of the parts involved." Economy Minister Magdalena Barreiro, who was also present at the event, said that the country is ready to make the $75 million interest payment on the debt in October. Regarding the issuing of $500 million in bonds, Mr. Barreiro said that Ecuador is currently going through some technical delays but the issue should take place Dec. 1. Mr. Barreiro informed that Venezuela is eager to buy $300 million of the issue and that she wasn't worried that Venezuela's involvement could strain Ecuador's relations with the U.S. Venezuela is merely willing to lend a part of the money Ecuador needs, she added. On the $100 million loan the World Bank recently suspended, Mr. Barreiro said she expects to reopen talks with the bank's officials next week in Washington, where she will participate in the annual International Monetary Fund meeting. ===================== E L S A L V A D O R ===================== * EL SALVADOR: Sovereign Credit Ratings Affirmed; Outlook Stable ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB+' long-term and 'B' short-term sovereign credit ratings on the Republic of El Salvador. The outlook on the long-term ratings remains stable. According to Standard & Poor's credit analyst Roberto Sifon Arevalo, the ratings reflect a stable monetary environment created by the 2001 adoption of the U.S. dollar as the local currency; a strong flow of workers' remittances that totaled 16.0% of GDP in 2004; and improved economic prospects as a result of the Central America Free Trade Agreement (CAFTA), which the U.S. Congress ratified in July 2005. "Given El Salvador's stable political and macroeconomic scenario, if the government manages to capitalize from CAFTA by increasing its economic integration with the U.S. and other Central American countries growth prospects could improve over the medium term," said Mr. Sifon Arevalo. "While El Salvador implemented a wide range of structural reform over the last decade economic growth has been disappointing, with GDP increasing at an average annual 1.9% rate and annual per capita income declining by an average 0.16% from 2000-2004," he added. Standard & Poor's said that El Salvador's general government deficit, which totaled 2.7% of GDP in 2004, is projected to increase to 3.0% of GDP in 2005. This is attributable to an increase in government investment resulting from an almost nonexistent 2004 public investment plan (caused by delays in the 2004 budget approval process). In addition, the cost of switching to a private pension system, which accounts for two thirds of the deficit, is expected to peak at just above 2.0% of GDP in 2006. Despite efforts to rationalize government operations, El Salvador's narrow tax base has resulted in relatively high deficits for a fully dollarized economy. President Antonio Saca's Administration managed to pass a tax package in early 2005 that will increase tax revenue by about 1.2% of GDP. However, this increase will be more than offset by increases in pension payments and public investment. "Nevertheless, this is a step in the right direction and demonstrates a commitment to augment the tax revenue base in response to El Salvador's high social needs," noted Mr. Sifon Arevalo. "Failure to generate a pick-up in economic growth, combined with El Salvador's high deficits, could eventually lead to diminished creditworthiness. If, on the other hand, there is a significant increase in economic growth and the debt and interest burdens begin to decline, the government's credit standing could improve," he concluded. Primary Credit Analyst: Roberto Sifon Arevalo, New York (1) 212- 438-7358; roberto_sifon-arevalo@standardandpoors.com Secondary Credit Analyst: Richard Francis, New York (1) 212-438- 7348; richard_francis@standardandpoors.com ============= J A M A I C A ============= KAISER ALUMINUM: Court OKs Voting Protocol Revision --------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware approves the Remaining Kaiser Aluminum Corporation and its debtor- affiliates' amendments to the procedures for the solicitation and tabulation of votes to accept or reject their proposed joint plan of reorganization. The Court will convene hearings at 9:00 a.m. on January 9 and 10, 2006, to consider confirmation of the Plan. Parties may file confirmation objections by November 14, 2005. The Reorganizing Debtors, the Committees and the Legal Representatives are authorized to file a consolidated reply to any objections to the Plan no later than December 16, 2005. August 29, 2005, is fixed as the record date to determine which creditors are entitled to receive Solicitation packages and, where applicable, vote on the Plan. The Court also approves the Ballots, including the instructions and the appropriate distribution to claimholders in each class entitled to accept or reject the Plan. All Ballots must be properly executed, completed and delivered to Logan & Company no later than 5:00 p.m., on November 14, 2005. Judge Fitzgerald also directs the P.I. Attorneys to submit their Directives to Logan & Company, Inc., as the Reorganizing Debtors' solicitation and tabulation agent, on or before October 3, 2005, or on October 17, 2005, if the P.I. Attorney elects to serve the Solicitation Packages on certain clients. Form B Debt Securities Individual Ballots must be delivered to the appropriate Master Ballot agent on November 12, 2005. The Court rules that each claim entitled to vote on the Plan will be temporarily allowed in accordance with the Solicitation and Tabulation Procedures. A claim transferee will be entitled to receive a Solicitation Package and cast a ballot on account of that claim only if, by the Voting Record Date, all claim transfer requirements have been completed. The deadline for filing Rule 3018 Motions is set to November 1, 2005, or other date established by the Reorganizing Debtors that is 14 days before the Voting Deadline. Headquartered in Foothill Ranch, California, Kaiser Aluminum Corporation -- http://www.kaiseraluminum.com/-- is a leading producer of fabricated aluminum products for aerospace and high- strength, general engineering, automotive, and custom industrial applications. The Company filed for chapter 11 protection on February 12, 2002 (Bankr. Del. Case No. 02-10429), and has sold off a number of its commodity businesses during course of its cases. Corinne Ball, Esq., at Jones Day, represents the Debtors in their restructuring efforts. On June 30, 2004, the Debtors listed $1.619 billion in assets and $3.396 billion in debts. (Kaiser Bankruptcy News, Issue No. 78; Bankruptcy Creditors' Service, Inc., 215/945-7000) =========== M E X I C O =========== ASARCO: Proposal Undermines Bankruptcy Reorganization Effort ------------------------------------------------------------ The United Steelworkers (USW) accused ASARCO officials of shamelessly misrepresenting the circumstances around the collapse of negotiations earlier this week and undermining the Union's good faith effort to negotiate fair agreements for workers at the company's mining, refining and smelting operations. "These lavishly compensated executives at ASARCO and its parent, Grupo Mexico, are simply trying to deflect attention from their own failings that led to the current financial problems," said USW District 12 Director Terry Bonds, "and their mean-spirited insistence on hiring scab replacement workers has further alienated our members and set back the effort to put Asarco's house in order through the bankruptcy process." ASARCO managers have claimed that the USW is somehow responsible for the lack of progress in contract talks. Bonds reiterated the Union's willingness to bargain and challenged ASARCO's statement that contract language requiring a potential buyer to recognize the Unions that represent ASARCO employees would inhibit a sale. "The USW is ready and willing to sit down and negotiate a fair and equitable agreement with ASARCO at any time," Bonds said, "but what does the company hope to accomplish by negotiating a contract that would be worthless if one or more of the facilities are sold?" "Instead of discussing the issue further, ASARCO took the ultimate step in disrespecting its workforce and brought in scabs." The USW has filed charges with Region 28 of the National Labor Relations Board and blames Grupo Mexico for deliberately and illegally instigating the current strike at ASARCO's operations in Arizona and Texas. "We believe that cooperating with management is the only way to save our mines, our plants and our jobs," Bonds said. "As the current labor dispute drags on, however, I have become less confident that ASARCO and Grupo share this goal." CONTACT: United Steelworkers Terry Bonds Tel: +1-505-878-9756 Manny Armenta Tel: +1-520-465-3617 CINTRA: Reveals New Timetable on Airlines' Privatization -------------------------------------------------------- Airline holding company Cintra SA is giving investors interested to participate in the privatization of the country's two biggest airlines - Aeromexico and Mexicana - until Oct. 7 to form into groups, reports Dow Jones Newswires. Those groups also have until Nov. 21 to present financial offers. Aeromexico and Mexicana are being sold separately, although investors are allowed to submit bids for both. Cintra hopes to complete the privatization process by yearend. Credit Suisse First Boston (CSR) is managing the sale. The government acquired control of the two airlines along with other assets seized in the bank bailout of the mid-1990s, and created Cintra to manage them. Individuals or institutions involved in the bailout, or that benefited from the bailout, have been barred from participating in the privatization. Foreigners are limited to minority stakes in the carriers. CONTACT: Cintra S.A. de C.V. Av Xola 535 piso 16 col. del Valle Mexico Phone: (5)448 - 8000 E-mail: infocintra@cintra.com.mx Web site: http://www.cintra.com.mx DESARROLLADORA HOMEX: S&P Rates $200M Notes 'BB-' ------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating to Desarrolladora Homex S.A. de C.V. (Homex). At the same time, Standard & Poor's assigned its 'BB-' rating to Homex's $200 million notes due 2015. The outlook is stable. Proceeds of the proposed bond will be used to repay indebtedness of about $165 million and the remainder for working capital purposes. "The ratings assigned to Homex and its proposed issue are constrained by the company's aggressive growth plans, our expectation that the aforementioned plans could demand additional indebtedness, and high working capital requirements that have not allowed free operating cash flow generation up to now," said Standard & Poor's credit analyst Raul Marquez. "Homex's ratings also reflect the concentration of mortgage origination in the public housing agencies and increased competition, which are inherent risk factors to the Mexican homebuilding industry." Positive factors supporting the rating include Homex's position as one of the leading homebuilders in Mexico, an improved geographical diversification, a manageable maturity schedule following the refinancing, and the favorable trend in Homex's financial performance over the past couple of years. The rating assigned to the proposed notes also considers the guarantee of its restricted subsidiaries avoiding structural subordination between parent-subsidiary creditors. Furthermore, with the payment of all guaranteed debt the company is eliminating subordination between unsecured and secured debt. However future issuance of secured debt could lead to structural subordination. Homex is a vertically integrated homebuilder focused on the affordable and middle-income housing segments. Headquartered in Culiacan, Sinaloa, Homex is one of the largest homebuilders in Mexico, with operations in 25 cities in 17 states across the country. During 2004, Homex sold 21,053 houses and reported revenues of US$476 million. The stable outlook on Homex reflects Standard & Poor's expectations that the company should report satisfactory financial ratios, which would generate free operating cash flow in the medium term; that a prudent operating and financial strategy will be sustained (especially if a slowdown in the collections occurs); and that Homex will continue to maintain an adequate liquidity position. A positive rating action is not foreseen in the medium term. A weakening in the company's liquidity and/or its key financial ratios, or an increase in management's tolerance for risk, could lead to a negative rating action. Primary Credit Analyst: Raul Marquez, Mexico City (52) 55-5081- 4437; raul_marquez@standardandpoors.com Secondary Credit Analyst: Santiago Carniado, Mexico City (52) 55-5081-4413; santiago_carniado@standardandpoors.com SATMEX: Concurso Mercantil Launced ---------------------------------- Satellite operator Satmex began bankruptcy proceedings under Mexican law, known as concurso mercantil, on September 9, reports Business News Americas. Mexico's transport and communications minister Jorge Alvarez Hoth is expected to appoint the case supervisor for Satmex's bankruptcy case on or before September 20. Five people are under consideration for the position. They are Maru Sidaoui, Rafael Buerba, Tomas Heather, Ruben Goldberg and Dionisio Ramos. The concurso mercantil will serve as a forum for restructuring Satmex's financial situation by securing new shareholders, performing a capital increase and launching a new satellite - Satmex 6 - by June 30, 2006. Business News Americas reports that the operator is thought to have defaulted on US$523 million of debt since 2003. As of May 31, 2005, Satmex has US$900 million in total assets and US$688 million in total debts. SICARTSA: Workers End Strike After Accepting Revised Offer ---------------------------------------------------------- The September 15 assembly saw union workers at Grupo Villacero's Sicartsa steel plant vote to end their 46-day strike. An official at the Mexican Mining and Metallurgical Workers Union revealed workers had agreed to a revised offer from Villacero, which provides for an 8% salary increase and a 34% hike in benefits such as health and productivity bonus, in addition to a one-time cash bonus of US$672 per worker. Workers were scheduled to resume operations September 17 at the Sicartsa plant, the biggest such steel plant in Latin America, which has been shut since Aug. 1 when the strike took effect. During the strike, Villacero feared Sicartsa would have to close permanently if the furnace stopped running as the US$400-million price of restarting it would not have been profitable. Sicartsa was losing 5,000t/d of production during the strike, which started over alleged contract violations. At US$3 million a day, total losses reached some US$138 million. TV AZTECA: ADR Exchange Period Expires -------------------------------------- TV Azteca, S.A. de C.V. (BMV: TVAZTCA; Latibex: XTZA), one of the two largest producers of Spanish-language television programming in the world announced Thursday that, as it was previously announced, the period throughout which holders of TV Azteca American Depositary Receipts (ADRs) can exchange their ADRs for TV Azteca Certificados de Participacion Ordinaria (CPOs), which are currently traded on the Mexican Stock Market (BMV), expired on September 16, 2005. As has been detailed in the Company's prior press releases, ADR holders have had a 60-day period, which started on July 18, 2005, to exchange their ADRs for CPOs traded on the BMV. On September 16, 2005, date of the expiration of such period, The Bank of New York (BoNY) would be allowed to sell the CPOs underlying the ADRs that were not surrendered and distribute the proceeds of such sale to holders of the remaining ADRs. The Company understands from BoNY that BoNY is expected to sell the CPOs on the BMV in a strategic manner within an undefined timeframe. The Company had previously announced that 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 a continued listing on a U.S. national securities exchange. 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: Investor Relations: Bruno Rangel Tel: 5255 1720 9167 E-mail: jrangelk@tvazteca.com.mx Rolando Villarreal Tel: 5255 1720 0041 E-mail: rvillarreal@gruposalinas.com.mx Media Relations: Tristan Canales Tel: 5255 1720 5786 E-mail: tcanales@tvazteca.com.mx Daniel McCosh Tel: 5255 1720 0059 E-mail: dmccosh@tvazteca.com.mx ================= V E N E Z U E L A ================= ALIMENTOS POLAR: Condemns Seizure of Storage Facilities ------------------------------------------------------- The government seized grain-storage silos belonging to food company Alimentos Polar after a number of workers organized a protest. The Company and other private-sector leaders condemned the seizure because Congress didn't declare the silos "of public interest" as the government does before attempting a takeover of privately owned assets. The seizure, Alimentos Polar argues, violates the laws and the constitution passed by the government of President Hugo Chavez. But Agriculture Ministry officials have declined repeated requests to explain the legal backing of the silo seizure. Instead, Agriculture Minister Antonio Albarran told company representatives they have to sell corn flour at cheap prices to the poor in order to resolve the seizure. Albarran said local producers must be given fair prices for their production and market abuses must be stopped. The seizure comes as the government is also renewing efforts to seize agriculture-ready land that is deemed "idle" or has an unclear ownership status. The government's move has thrown into doubt the future of privately owned assets in Venezuela. So far, the government has initiated expropriation proceedings involving some land holdings and has successfully expropriated the assets of two failed companies. *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and Sheryl Joy P. Olano, Editors. Copyright 2005. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is $575 per half-year, delivered via e-mail. 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