/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/030602.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, June 2, 2003, Vol. 4, Issue 107 Headlines A N T I G U A & B A R B U D A LIAT/BWIA: Structure For Single Regional Airline Ready in June LIAT: Chairman Calls For Cooperation Among Caribbean Carriers A R G E N T I N A ADDEX: Seeks Reorganization Proceedings AMATRIX: Applies For "Concurso Preventivo" ARTES GRAFICAS PITZEL: "Concurso Preventivo" Now Pending BRUKMAN: Workers Seek Company Liquidation EQUIPHOTEL: Commencing Reorganization Proceedings SCP: Judge Denies BNY's Appeal SCP: Launches New Debt-Restructuring Proposal B E R M U D A ANNUITY & LIFE: A. M. Best Downgrades Ratings B R A Z I L CEMIG: Extraordinary Shareholders' Meeting Results Posted ELETROPAULO METROPOLITANA: BNDES Confident of Auction's Success SABESP: Clarifies Shareholders' Dividend Payment SABESP: New CEO Selected TELEMAR: S&P's Comments on Oi Acquisition D O M I N I C A N R E P U B L I C BANCO INTERCONTINENTAL: Fast-Track Sale May Cause More Harm J A M A I C A * Jamaica: Moody's Downgrade Spurs Diverse Reactions M E X I C O GRUPO TMM: Starts Restructuring Talks With Bondholders GRUPO TMM: Shares Resume Trading PVI: Excludes Mexican Unit From Bankruptcy Filing ROHN INDUSTRIES: Announces Delisting Notice From Nasdaq SATMEX: Forms Satmex Maximo As Part of US Expansion Plans P A N A M A INTERNATIONAL THUNDERBIRD: Issues Official Shareholders' Update T R I N I D A D & T O B A G O BWIA: ILFC Representative Arrives For Talks With T&T Government BWIA: CEO Boosts Offer To Save Airline CARONI LTD.: Unions Seek Full Recourse For Alleged Violations - - - - - - - - - - ================================= A N T I G U A & B A R B U D A ================================= LIAT/BWIA: Structure For Single Regional Airline Ready in June -------------------------------------------------------------- A blueprint for the formation of a new transport system is to be finalized by the end of June. The forthcoming plan is what four Caribbean governments have agreed on, after airlines in the region have each struggled with difficult financial situations. The governments of Antigua & Barbuda, St. Vincent & the Grenadines, Trinidad & Tobago and Barbados decided to create a single regional carrier operating within the Easter and South Caribbean. A technical committee will discuss a possible merger between BWIA and LIAT, the Antigua Sun reports. The committee, composed of senior civil servants, airline officials and the Caricom secretariat, were scheduled to meet in Barbados on Saturday. The members are instructed to determine the best structure for a new airline, if a merger is realized. CONTACT: LIAT Corporate Headquarters V.C. Bird International Airport, P.O. Box 819, St. John's, Antigua West Indies Tel. 1 (268) 480-5600/1/2/3/4/5/6 Fax: 1 (268) 480-5625 Homepage: http://www.liatairline.com/ Contacts: Garry Cullen, Chief Executive Officer David Stuart, Vice President of Marketing LIAT: Chairman Calls For Cooperation Among Caribbean Carriers ------------------------------------------------------------- Wilbur Harrigan, chairman of Antigua-based airline LIAT thinks that it might be a good time to create a strategic alliance among carriers in the region. "I think for the benefit of the people of the region it makes good business sense for both airlines to start to work together," said Mr. Harrigan, as quoted by local paper Antigua Sun on Thursday. He admitted that there would still be problems to overcome, but he is confident that there are certain areas that could be worked out and benefit the people of the region. As an example, he cited that core scheduling could be dove tailed more to the benefit of the people of the region. Plans for the creation of a single regional carrier have been floated for some time as a number of flag carriers in the region are having serious financial problems. However, Air Jamaica has expressed its disapproval of such a proposal. It is only offering to share services with other regional airlines. ================= A R G E N T I N A ================= ADDEX: Seeks Reorganization Proceedings --------------------------------------- Argentine metallurgic machine producer Addex S.A. has applied for "concurso preventivo", according to an Infobae report. If approved, the Company may commence reorganization proceedings. The case, no. 30640184368, is handled by Court No. 22 and Secretary No. 43 of Buenos Aires. CONTACT: ADDEX S.A. Gurruchaga 1783 Buenos Aires AMATRIX: Applies For "Concurso Preventivo" ------------------------------------------ Amatrix S.A.C.e I., seller of office machines and equipment, applied for "concurso preventivo," reports Infobae. The Company, which is located at Montevideo 536, Capital Federal, has been assigned the case number 30515940487. Amatrix's case is now in Juzgado Nų 19, Secretar”a Nų 37, Capital Federal. ARTES GRAFICAS PITZEL: "Concurso Preventivo" Now Pending -------------------------------------------------------- Artes Gr ficas Pitzel S.R.L. is seeking to commence reorganization proceedings. The Company is asking for "concurso preventivo", through case no. 30618319314. Buenos Aires Court No. 24 and Secretary No. 47 are handling the Company's case. The report did not indicate whether a receiver has been assigned yet. CONTACT: ARTES GRAFICAS PITZEL S.R.L. Zubiria 2020 Buenos Aires Argentina BRUKMAN: Workers Seek Company Liquidation ----------------------------------------- Workers at Brukman, with the help of political party "Partido Obrero", are seeking to have the Company's assets expropriated. A report by Infobae indicates that the workers were sent home after the Company started reorganization proceedings. A ruling by Judge Jorge Rimondi effectively puts the Company, a producer of men's suits, under "concurso preventivo." The owner, Mr. Jacobo Brukman is intending to declare the Company bankrupt, says the report. EQUIPHOTEL: Commencing Reorganization Proceedings ------------------------------------------------- Argentine company Equiphotel applied for reorganization proceedings, relates Infobae. The Company is under the jurisdiction of Court No. 4 of Buenos Aires, with case number 33622048669. The Company describes itself as importers and distributors of dry, fresh and frozen products to all supermarket chains in Argentina. CONTACT: EQUIPHOTEL SOCIEDAD ANONIMA Lavalle 1506, Buenos Aires Argentina Home Page: http://www.equiphotel.com.ar/ SCP: Judge Denies BNY's Appeal ------------------------------ Judge Norma Di Notto, head of Buenos Aires city s commercial court Nų 15, secretariat 29, ruled in favor of the Argentine holding Sociedad Comercial del Plata (SCP), in a dispute with one of its creditors, The Bank of New York. The sentence emphasizes the application of the Argentine legislation on the Company's restructuring proceedings and establishes the guidelines for obtaining consent by bondholders when it comes to verifying liabilities. Specifically, the court prevented the bank from applying a collective deposits system for obtaining consent and highlighted the validity of the 45 bis article of the Argentine Bankruptcy Law (25.589). The article establishes a system that takes into account the principal represented by each creditor instead of the number or quantity of them during the voting of a debt restructuring proposal. As such, companies in crisis do not need to obtain acceptance either from 51% of the principal or from 66% of the creditors, but only from the main creditors. The rest will have to accept the accord reached among the indebted firm in question and its major creditors. SCP: Launches New Debt-Restructuring Proposal --------------------------------------------- The Argentine holding Sociedad Comercial del Plata (SCP) announced a new debt restructuring proposal, in which it offered to give up its stakes in the tourism train Tren de la Costa and the theme park Parque de la Costa to guarantee the payment of the debt. The difference between the new proposal and the previous one is that this time SCP does not offer its shares in Trillenium, the casino of Tigre. This business, in which the holding has a 50% stake, gives SCP some ARS50 million a year. Last week, SCP managed to refinance the debt of Solfina, reducing it significantly from US$50 million to ARS8 million and agreeing to repay it within 18 months and is now working on the refinancing of the debt of Tren de la Costa and Parque de la Costa US$150 million. They want to repay it in Argentine pesos, within an 18-year term. ============= B E R M U D A ============= ANNUITY & LIFE: A. M. Best Downgrades Ratings --------------------------------------------- A.M. Best Co. has downgraded the financial strength ratings to C+ (Marginal) from B- (Fair) of Annuity and Life Re Holdings' [NYSE: ANR] life insurance subsidiaries, Annuity and Life Reassurance, Ltd. (both of Bermuda) and Annuity & Life Reassurance America, Inc (Connecticut), and removed them from under review. The outlook for the ratings is stable. These rating actions reflect the continuing deterioration of the company's capital base, and the ongoing concern about the company's ability to meet its collateral obligations, as plans to raise additional capital have not succeeded. The ratings also incorporate ANR's expectations for additional losses in the second quarter of 2003 from the company's efforts to restructure its balance sheet through the recapture, retrocession, novation or sale of its in-force business to meet or reduce collateral obligations. Furthermore, ANR does not currently anticipate acquiring or accepting any new business. During the first quarter of 2003, ANR's attempts to improve its operations and liquidity position resulted in net losses totaling $52.5 million. Owing to the continuing poor financial results, A.M. Best believes ANR may not meet its current obligations to policyholders and is vulnerable to adverse changes in market conditions. Concurrently, A.M. Best has withdrawn ANR's financial strength ratings of C+ (Marginal) and assigned a NR-4 (Not Rated - Company Request) to the two insurance subsidiaries. This is in response to management's request to withdraw from the rating process. CONTACTS: Public Relations Jim Peavy Phone: (908) 439-2200, ext. 5644 Email: james.peavy@ambest.com Rachelle Striegel Phone: (908) 439-2200, ext. 5378 Email: rachelle.striegel@ambest.com Analyst(s) Robert Garofalo Phone: (908) 439-2200, ext. 5148 Email: robert.garofalo@ambest.com Richard Major Phone: (908) 439-2200, ext. 5755 Email: richard.major@ambest.com =========== B R A Z I L =========== CEMIG: Extraordinary Shareholders' Meeting Results Posted --------------------------------------------------------- The proposal of the Board of Directors to CEMIG's shareholders was approved in its entirety at the Extraordinary General Shareholders' Meeting held at 10:00 a.m. on May 28, 2003 at CEMIG's headquarters, located at Avenida Barbacena, 1200 - 18th floor, in the city of Belo Horizonte, State of Minas Gerais, Brazil. The following items were approved: I Amendments to CEMIG's By-laws: 1. Article 1 was amended, conforming CEMIG's corporate purpose to legal requirements. 2. Article 2 was amended, allowing CEMIG to establish offices abroad. 3. The sole paragraph of Article 5 was deleted, conforming the By-laws to Article 47 of Law 6,404/1976 and its subsequent amendments; 4. The heading of Article 8 was amended; however, the first and second paragraphs were preserved, ensuring that the State of Minas Gerais retains the majority of voting shares unless prior authorization by the State House of Representatives is given; 5. The sole paragraph of Article 9 was inserted, conforming the By-laws to Article 126 of Law 6,404/1976 and its subsequent amendments, as well as expediting the procedures necessary to call General Shareholders' Meetings; 6. The first paragraph of Article 14 was amended, emphasizing the requirements of knowledge by all directors at a Board of Directors' meeting in the event of meetings called on an expedited basis; 7. Subsections "j" and "l" were inserted into Article 17, better defining the Board of Directors' responsibilities; 8. The heading of Article 18 was amended, modifying the constitution of the Board of Executive Officers; 9. The heading of Article 19 was amended, assigning to the Executive Vice President the authority to act as substitute for the Chief Executive Officer during his/her temporary absences; 10. Article 22 was amended, modifying the Executive Officers' duties; 11. Paragraph 3 of Article 21 was amended, reflecting the new constitution of the Board of Executive Officers; 12. Paragraph 4 of Article 21 was amended, more precisely defining the Executive Officers' duties; 13. The sole paragraph of Article 23 was inserted, establishing the criteria to elect the chairperson of the Fiscal Council and to authorize such person to summon and to chair Fiscal Council meetings; 14. The sole paragraph of Article 28 and the heading of Article 30 were amended, conforming them to Article 189 of Law 6,404/1976 and its subsequent amendments; 15. Article 33 was amended, clearly providing that the actions authorized by the By-laws are only authorized to the extent they comply with applicable law; and 16. Article 12 was amended, modifying the Board of Directors' composition that is now comprised of 14 directors and their respective alternates. Paragraph 3 of Article 12 was inserted, ensuring that minority holders of common shares and minority holders of preferred shares have the right to elect, in a separate voting process, one director and his/her alternate, respectively. II Election of directors and their respective alternates in connection with the amendment of Article 12 modifying the Board of Directors' composition. 1. Election of the director Francisco Roberto Andre Gros and his alternate, Arnaldo Jose Vollet, by minority holders of preferred shares. 2. Election of the remaining 13 directors and their respective alternates through cumulative voting, in accordance with Article 141 of Law 6,404/1976, amended by Law 10,303/2001, as follows: i. By the shareholder Estado de Minas Gerais: Wilson Nelio Brumer and his alternate, Fernando Lage de Melo. Djalma Bastos de Morais and his alternate, Luiz Antonio Athayde Vasconcelos. Francelino Pereira dos Santos and his alternate, Marco Antonio Rodrigues da Cunha. Antonio Adriano Silva and his alternate, Francisco Sales Dias Horta. Flavio Jose Barbosa de Alencastro and his alternate, Guilherme Horta Goncalves Junior. Aecio Ferreira da Cunha and his alternate, Eduardo Lery Vieira. Maria Estela Kubitschek Lopes and her alternate, Fernando Henrique Schuffner Neto. Alexandre Heringer Lisboa and his alternate, Franklin Moreira Goncalves. ii. By the shareholder Southern Electric Brasil Participacoes Ltda.: Oderval Esteves Duarte Filho and his alternate, Geraldo Dannemann. Marcelo Pedreira de Oliveira and his alternate, Luiz Felippe Leal da Fonseca Junior. Joao Bosco Braga Garcia and his alternate, Carlos Suplicy de Figueiredo Forbes. Sergio Lustosa Botelho Martins and his alternate, Marc Leal Claassen. Mario Lucio Lobato and his alternate, Andre Luiz Garbuglio. CONTACT: Companhia Energetica de Minas Gerais - CEMIG Luiz Fernando Rolla, Investor Relations Officer, Phone: +55-31-3299-3930 Fax: +55-31-3299-3933 Email: lrolla@cemig.com.br or Eliza Gibbons, The Anne McBride Company Phone: +1-303-477-1350 Fax: +1-212-983-1736 Email: eliza@annemcbride.com Home Page: http://www.cemig.com.br ELETROPAULO METROPOLITANA: BNDES Confident of Auction's Success --------------------------------------------------------------- Brazil's development bank BNDES does not believe that a court decision to seize shares and block the sale of shares held by an AES Corp. unit in two of the country's largest distributors will hamper a share sale process it initiated to recover some of the US$1.2-billion loan given to the U.S. power group in 1998 to buy Eletropaulo Metropolitana. BNDES is in the process of selling about US$150 million in preferred, or nonvoting Eletropaulo shares, which were given as guarantees for the loan. At the same time, the bank has kicked off a process to auction the controlling shares in Eletropaulo, which were also given to the bank as a loan guarantee. In the event of default, BNDES could use its contractual rights to foreclose on AES assets here. The seizure of shares and the injunction blocking the sales were seen delaying the process. However, according to BNDES president Carlos Lessa, the sale of a controlling stake and of nonvoting shares in Eletropaulo continues because the object of the lawsuit is AES Bandeirante, a local unit of AES. "The (share sale) process continues normally. The lawsuit involves a different AES unit," Lessa was quoted by local newswire Agencia Estado as saying. Dow Jones recalls that creditors of broadband services provider Eletronet SA, through the company's bankruptcy administrator, filed for the seizure of shares owned by the AES unit in Eletropaulo and in state-owned power company Companhia Energetica de Minas Gerais (Cemig). AES controls Eletronet through a 51% stake owned by AES Bandeirante. Eletronet, a broadband services provider, filed for bankruptcy recently because AES defaulted on payments to its unit. A Rio de Janeiro state court judge ruled in favor of the seizure of around BRL550 million in common and preferred stocks in Eletropaulo and Cemig, enough to pay Eletronet's creditors. If the judge's decision is maintained, the shares will likely be sold in an auction to guarantee payment to Eletronet's creditors. Eletronet is bankrupt, and AES is unlikely to pay its creditors. CONTACT: ELETROPAULO METROPOLITANA Avenida Alfredo Egidio de Souza Aranha 100-B, 13 andar 04726-270 San Paulo Brazil Phone: +55-11-548-9461, +55 11 5696 3595 Fax: +55-11-546-1933 URL: http://www.eletropaulo.com.br Contacts: Luiz D. Travesso, Chairman and President Orestes Gonzalves Jr., VP Finance/Investor Relations SABESP: Clarifies Shareholders' Dividend Payment ------------------------------------------------ Sabesp - Cia. de Saneamento Basico do Estado de Sao Paulo (NYSE: SBS) (Bovespa: SBSP3), the largest water and sewage utility company in the Americas and the third largest in the world (in terms of number of customers), informs its Shareholders that, in a meeting held Thursday, the Management Bodies of the Company made a decision, pursuant to paragraph 2, Article 30 of its By- laws, concerning the credit and payment of Dividends in the form of Interest Attributed to Shareholders' Equity, relating to April 2003, to holders of shares on the record date of June 16, 2003. I - VALUE, DATE AND CREDIT AND PAYMENT TERMS The Dividends as Interest Attributed to Shareholders' Equity, in the amount of R$118,190,247.98 (one hundred and eighteen million, one hundred and ninety thousand, two hundred and forty seven Reais and ninety eight cents), corresponding to R$ 4.15 (four Reais and fifteen cents) per 1,000 common shares, will be paid no later than sixty (60) days after the 2004 Annual Shareholders' Meeting. II - WITHHOLDING TAX Withholding Tax will be deducted from the amount of payment of Dividends as Interest Attributed to Shareholders' Equity, pursuant to current legislation, except for exempt shareholders who provide proof of such condition until July 31, 2003, and the relevant documents should be delivered to the Company at Rua Costa Carvalho 300, Sao Paulo, SP, CEP: 05429-900, to the attention of the Funding and Investor Relations Superintendent (FI, sala 267). III - ATTRIBUTION FOR DIVIDENDS Said Interest Attributed to Shareholders' Equity is declared in substitution of the Dividends relative to April 2003 and computed in the calculation of the minimum mandatory dividends, as provided for in Article 30, item II, letter "b" of Company By- laws, and in Section 7, Article 9 of Law No. 9249/95. IV - INSTRUCTIONS FOR CREDIT AND PAYMENT OF INTEREST ATTRIBUTED TO SHAREHOLDERS' EQUITY A) Shareholders will have their credits available on the start date of payment of such right, as set forth in the above item I, according to their bank account and bank address as provided Banco Itau S.A.; B) In regards to shareholders whose information on file does not contain the CPF/CNPJ (Tax ID) number or indication of "Bank/Branch and bank account," interest will be credited, pursuant to item I above, starting on the third business day from the date the files are updated in Banco Itau S.A.'s electronic files, which can be done through any of the network's branches or by mail, addressed to Stocks and Custody Department - Avenida Engenheiro Armando de Arruda Pereira no 707 - 9o andar, Jabaquara - Sao Paulo - SP, CEP 04344-902. V - EX-INTEREST TRADING DATE The stocks will start being traded ex-interest and ex-dividend on June 17, 2003. VI - More information can be obtained during bank hours at the Banco Itau S.A. branches specialized in serving shareholders. CONTACT: Helmut Bossert (5511) 3388-8664 hbossert@sabesp.com.br Marisa Guimaraes (5511) 3388-9135 marisag@sabesp.com.br Web site: www.sabesp.com.br SABESP: New CEO Selected ------------------------- Sabesp - Cia. de Saneamento Basico do Estado de Sao Paulo (NYSE: SBS) (Bovespa: SBSP3), the largest water and sewage utility company in the Americas and the third largest in the world (in terms of number of customers), in compliance with CVM Instruction no. 358 of January 3, 2002, hereby informs the Sao Paulo Stock Exchange - BOVESPA, financial and capital markets and investors in general that its Board of Directors, in a meeting held Thursday, has elected Mr. Dalmo do Valle Nogueira Filho as Chief Executive Officer of the Company. This communication is available on Sabesp's website www.sabesp.com.br and will also be published in the newspaper Diario Oficial do Estado de Sao Paulo, in the edition of May 30, 2003. TELEMAR: S&P's Comments on Oi Acquisition ----------------------------------------- Standard & Poor's Ratings Services said Thursday that Telemar Norte Leste S.A.'s purchase of all shares of Tele Norte Leste Participaoes S.A.'s (TNL) wireless operator, TNL PCS S.A. (Oi), has no impact on the ratings of TNL (local currency: BB/Stable/-- ; foreign currency: B+/Stable/--). Telemar Norte Leste is a fixed-line operator ultimately controlled by TNL. Oi was fully controlled by TNL (99.99% of total capital), so the transaction will not have an impact on TNL's consolidated balance sheet in terms of outstanding debt or expected cash-flow generation, which has been the base for Standard & Poor's analysis. The company expects the integration of both fixed and wireless operations to result in a more rational use of resources, and consequently operating efficiency gains. Additionally, the transaction should boost Telemar's vertical integration and its capacity to offer integrated telecom services, particularly in the business segment, also mitigating the risks related to increasing fixed line-to-wireless substitution. The company expects the transaction to result in tax benefits of Brazilian reais 1.6 billion. ANALYST: Jean-Pierre Cote Gil, Sao Paulo (55) 11-5501-8946 =================================== D O M I N I C A N R E P U B L I C =================================== BANCO INTERCONTINENTAL: Fast-Track Sale May Cause More Harm ----------------------------------------------------------- Lawyers for the collapsed bank Dominican Republic bank Banco Intercontinental are claiming that the government's move to expedite the sale of the bank's assets is illegal, DR1 Daily News relates. Recent reports are suggesting that the government is seeking to go through the sale as speedily as possible believing that the assets could lose value while they remain under government control. In addition, the government believes that a liquidation of the holdings would aim to reduce the Baninter void's negative impact on the GDP by 11%. However, the legal defense team for Baninter's president, Ram¢n B ez Figueroa, is calling for the proper implementation of the laws on money laundering - the same laws under which the government confiscated the bank's assets to begin with. At the same time, Diario Libre comments that the government is treading on dangerous legal ground, and runs the risk of making major errors that could land the nation in "a larger hole" than the one left by Baninter. Central Bank Governor Jos Lois Malkum told an audience at the American Chamber of Commerce luncheon Wednesday that the government would not pick up the tab for money-losing ventures under the Baninter umbrella, as reported in Hoy newspaper. ============= J A M A I C A ============= * Jamaica: Moody's Downgrade Spurs Diverse Reactions ---------------------------------------------------- The downgrade on Jamaica's credit rating by Moody's Investors Service spurred mixed reactions from the local financial sector, RJRNews.Com relates. Early last week, Moody's downgraded Jamaica's ceiling for foreign-currency bonds and notes to Ba3 from B1, as well as the ceiling for foreign-currency bank deposits to B2 from B1 due to civil unrest and several natural disasters that have heightened credit risk. According to Finance Minister Dr. Omar Davies, the change would not have a negative impact on the economy. Risk and Research Analyst at Jamaica Money Market Brokers Limited, Faval Williams shared the same view. According to Ms. Williams the effect will be minimal. However, Economist Dr. Omri Evans disputed this view. Dr. Evans said the downgrading will have a serious impact on Jamaica's ability to raise funds overseas. He added that in the event that the Government is successful in obtaining overseas financing, it will come at a higher cost. In the meantime, members of the financial sector said they are awaiting Standard and Poors' rating of Jamaica to determine what impact recent forecasts from rating agencies will have on Government of Jamaica bonds on the international capital market. Williams said the Standard and Poors rating will determine whether there will be any adverse effects on Government bonds. Last December, Standard and Poor's revised its outlook for Jamaica from stable to negative. However, the agency maintained Jamaica's B sovereign credit rating. =========== M E X I C O =========== GRUPO TMM: Starts Restructuring Talks With Bondholders ------------------------------------------------------ Grupo TMM, S.A. (NYSE: TMM and BMV: TMM A), announced Thursday that it has initiated discussions with holders of its outstanding 9« percent Notes due 2003 and 10¬ percent Notes due 2006 (the Notes) and their representatives (the Bondholders) in order to encourage the formation by the Bondholders of an informal committee to engage the company in negotiations over the terms of a consensual restructuring of the Notes. Grupo TMM believes that it is in the interest of all of the company's constituencies to allow for such a negotiation process to take place as expeditiously as possible, and that the commencement or continuation of litigation alternatives would be to the detriment of all of the company's constituencies. Bondholders wishing to participate in this process should contact Martin Lewis at Miller Buckfire Lewis (MBL) at 212-895-1805. Grupo TMM has retained restructuring advisors, including MBL as financial advisors, the international law firm of Milbank Tweed Hadley & McCloy, and a new Mexican counsel. Grupo TMM is exploring a number of alternatives regarding its liquidity, but not solvency, issues, and it intends to schedule a meeting with an informal committee of the Bondholders as soon as practicable to discuss a process to engage in negotiations over the terms of a restructuring. Kansas City Southern (KCS) (NYSE: KSU) announced yesterday that it remains firmly committed to proceeding with the NAFTA Rail transaction. Grupo TMM and KCS are continuing to seek the required approvals for the transaction. Grupo TMM continues to believe that it will be able to satisfy its obligations to the Bondholders in full. Headquartered in Mexico City, Grupo TMM is Latin America's largest multimodal transportation company. Through its branch offices and network of subsidiary companies, Grupo TMM provides a dynamic combination of ocean and land transportation services. Grupo TMM also has a significant interest in TFM, which operates Mexico's Northeast railway and carries over 40 percent of the country's rail cargo. Grupo TMM's web site address is www.grupotmm.com and TFM's web site is www.tfm.com.mx. CONTACT: Grupo TMM Company Jacinto Marina Phone: 011-525-55-629-8790 E-mail: jacinto.marina@tmm.com.mx Brad Skinner Phone: 011-525-55-629-8725 E-mail: brad.skinner@tmm.com.mx Luis Calvillo Phone: 011-525-55-629-8758 E-mail: luis.calvillo@tmm.com.mx GRUPO TMM: Shares Resume Trading -------------------------------- Trading of class "A" shares of Grupo Transportacion Maritima Mexicana (TMM) has now resumed at the Mexican Stock Exchange after the bourse lifted a suspension, which was implemented Tuesday due to allegations of irregularities. The bourse suspended trading of TMM on Tuesday following a report that a court order shielding it from creditors is invalid. TMM, which is in default on US$177 million of bonds, obtained a one-year grace period to block any legal actions from creditors. However, Televisa, the country's leading broadcaster, reported that the Mexico City judge, who granted the grace period, had no power to make such an order. The trading ban was lifted late Wednesday after the Company gave exchange officials information that had been requested. PVI: Excludes Mexican Unit From Bankruptcy Filing ------------------------------------------------- Princeton Video Image, Inc. (OTCBB: PVII) announced Thursday that it has filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code. PVI has entered into an agreement with PVI Virtual Media Services, LLC, a newly formed entity owned by PVI's two secured creditors and largest stockholders, that, subject to Bankruptcy Court approval, will provide PVI with interim financing to fund post-petition operating expenses. PVI expects this debtor-in-possession financing, if consummated, to allow the delivery of services to PVI's customers and clients to continue without interruption during the bankruptcy process. The Company has also entered into an agreement with PVI Virtual Media Services, LLC to sell substantially all of its assets to PVI Virtual Media Services, LLC pursuant to Section 363 of the Bankruptcy Code, subject to a competitive bidding procedure and court approval in accordance with bankruptcy law. PVI expects that if the asset sale is consummated PVI would be liquidated pursuant to a plan of liquidation which would be subject to the approval of the bankruptcy court. In the event of a liquidation, any recovery for shareholders of PVI would be highly unlikely and would depend on the outcome of the competitive bidding procedure. PVI's Chapter 11 filing is for PVI only and does not include Publicidad Virtual, PVI's Mexican subsidiary, or any of its other subsidiaries, all of which will continue to provide services and operate in the ordinary course of business. During the bankruptcy process, PVI expects that the debtor-in-possession financing, if consummated, will allow it to continue to provide services and operate in the ordinary course of business as well. About Princeton Video Image, Inc: Princeton Video Image, Inc. (PVI) provides real-time virtual advertising, programming enhancements, virtual product integration and targeted interactive services for televised sports and entertainment events. PVI services the advertising industry with its proprietary, Emmy award-winning technology. Headquartered in New York City and Lawrenceville, New Jersey, PVI has offices in Los Angeles, Toronto, Tel Aviv, and Mexico City. This press release contains forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those anticipated as a result of various risks and uncertainties, including, but not limited to, the following: PVI's ability to maintain sufficient debtor-in-possession financing to fund its operations and the expenses of the Chapter 11 process; PVI's ability to obtain court approval with respect to motions in the Chapter 11 proceeding; the outcome and timing of the proposed sale of PVI's assets, including PVI's ability to close a transaction with PVI Virtual Media Services, LLC or any other purchaser; and the uncertainty associated with motions by third parties in the bankruptcy proceeding. ROHN INDUSTRIES: Announces Delisting Notice From Nasdaq ------------------------------------------------------- ROHN Industries, Inc., (Nasdaq: ROHNE), (the "Company") a provider of infrastructure equipment to the telecommunications industry, announced on Thursday that it received a Nasdaq Staff Determination dated May 23, 2003 ("Nasdaq") advising the Company that Nasdaq has not received the Company's Form 10-Q for the period ended March 31, 2003, as required by Marketplace Rule 4310c(14), and that the Company has not yet paid its 2003 SmallCap annual fee in the amount of $8,000, which was due as of January 30, 2003, in accordance with Marketplace Rule 4500 Series and as required by Marketplace Rule 4310c(13). Nasdaq notified the Company that, accordingly, the Company's securities will be delisted from The Nasdaq SmallCap Market at the opening of business on June 3, 2003. Nasdaq further notified the Company that it may appeal the delisting to a Nasdaq Listing Qualifications Panel (the "Panel") by no later than May 30, 2003, which will stay the delisting of the Company's securities pending the Panel's decision. The Company indicated that it has paid the 2003 Small Cap Annual Fee and requested a hearing before the Panel. There can be no assurance the Panel will grant the Company's request for continued listing. In its May 23, 2003 letter, Nasdaq further stated "On June 13, 2002, Staff also notified the Company that the bid price of its common stock had closed below $1 per share for 30 consecutive trading days, and accordingly, that it did not comply with Marketplace Rule 4450(a)(5). On October 14, 2002, the Company transferred to The Nasdaq Small Cap Market and it was afforded the remainder of this market's 180 calendar day grace period. On December 17, 2002, Staff notified the Company that in accordance with Marketplace Rule 4310(8)(D), the Company would be provided an additional 180 calendar days, or until June 9, 2003, to regain compliance. If the Company appeals, it needs to address this issue at its hearing." (Footnote 7 to the May 23, 2003 Nasdaq letter.) There is no assurance that the Company will regain compliance on this issue and remain listed. The Company is a manufacturer and installer of telecommunications infrastructure equipment for the wireless industry. Its products are used in cellular, PCS, radio and television broadcast markets. The Company's products include towers, poles, related accessories and antennae mounts. The Company also provides design and construction services. ROHN has a manufacturing location in Frankfort, IN along with offices in Peoria, IL and Mexico City, Mexico. SATMEX: Forms Satmex Maximo As Part of US Expansion Plans --------------------------------------------------------- Mexican satellite service provider Satmex recently struck deals with nine broadcast nets and feevees to form programming service Satmex Maximo. The service, according to Reed Business News Information, features channels from Mexico and other parts of Latin America. Satmex currently owns and operates a satellite system through which it offers TV uplink, telephone and telecommunications services to 39 countries. The formation of the programming service is part of Satmex plan to target the U.S. Hispanic market using Satmex Maximo. Atlanta-based Castalia Communications is Satmex's U.S. distribution partner, serving as its affiliate sales and market agent in charge of rolling out the service to U.S. cablers and satcasters. =========== P A N A M A =========== INTERNATIONAL THUNDERBIRD: Issues Official Shareholders' Update --------------------------------------------------------------- International Thunderbird Gaming Corporation (TSX - INB) announces its financial results for the first quarter ended March 31, 2003. All figures are in US dollars. Revenues for the first quarter of 2003 from continuing operations were $5.1 million, an increase of 15.3% over 2002 revenues from continuing operations of $4.5 million for the same period. Net income for the period was $676,000 compared to $50,000 in 2002 for the same period. The income for the current period stems from ongoing continuing operations. The earnings per share were $0.03 cents per share in Q1 2003 compared to $nil for the same period in 2002. The Company achieved EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of $1.8 million compared to $1 million for the same period in 2002. The Company's working capital deficiency improved as the working capital deficiency went from $2.8 million at December 31, 2002 to $2.2 million at March 31, 2003. In Panama, revenues continued to grow as the Company enjoyed its first full quarter with the expanded El Panama Casino. In Guatemala, the Company transitioned to its new contractual arrangement with ILAC and the FPG on March 15, 2003. The Company now receives 65% of the revenue and is responsible for 100% of the operating expenses. The Guatemala operation continues to perform consistently as it has in the past. The Company will soon be completing its expansion of the Salon at the Camino Real Hotel and is confident that additional video gaming machines and a "bar-restaurant", will have a positive impact on profits. In Nicaragua, the Company enjoyed its first full month under the merged operation with the Pharaoh's Casino beginning March 1, 2003. Revenues for March, April, and May, 2003 have exceeded expectations. In Venezuela, the operating profit continues to suffer from the devaluation of the local currency. Revenues, in the local currency, for the quarter are comparable to 2002 1st quarter revenues. However, when converted to US dollars, the difference is a 45% decrease in 2003 over 2002. The entity posted a modest gain for the quarter before application of foreign exchange losses, which made for a net loss for the quarter. The Company has not recognized an equity loss due to the "write-down" of its investment in Q4 of 2002. The Casino revenue continues to sustain the operation and we are hopeful that the Company will enjoy a fair return on its investment in the future. In Mexico, the NAFTA tribunal issued a lengthy pre-trial order with respect to exchange of evidence and submittal of briefs on the Company's claim against the government of Mexico. The Tribunal also scheduled a trial for the week of April 26, 2004. The Company continues to pursue a listing on Canada's newest equity market. The Company submitted an application to the Canadian Trading and Quotation System, Inc. (CNQ), for review, and is hopeful that the review process will take between 20 and 30 business days to complete. On May 21, 2003, the CNQ announced its official launch and first day of trading would be Friday, July 25, 2003. According to the announcement, "the (CNQ) will provide an automated, well regulated and transparent marketplace for emerging public companies..." The CNQ is currently accepting and processing applications for quotation from issuers to ensure that they will be ready to trade on opening day. International Thunderbird Gaming Corporation is an owner and manager of international gaming facilities. Additional information about the Company is available on its World Wide Web site at www.thunderbirdgaming.com. On behalf of the Board of Directors, Jack R. Mitchell, President and CEO CONTACT: International Thunderbird Gaming Corporation Albert W. Atallah Investor Relations Phone: (858) 668-1808 ext. 206 Email: info@thunderbirdgaming.com Home Page: www.thunderbirdgaming.com ================================= T R I N I D A D & T O B A G O ================================= BWIA: ILFC Representative Arrives For Talks With T&T Government --------------------------------------------------------------- John Pluger, the representative from the International Lease Finance Corporation, arrived in Trinidad & Tobago for negotiations with the government concerning the future of cash- strapped carrier, BWIA. The Trinidad Express reports that Mr. Pluger is scheduled to meet with Planning Minister Dr Keith Rowley and Junior Finance Minister Christine Sahadeo on Thursday morning. The ILFC has impounded two Boeing 737s from BWIA after the latter failed to pay its dues. Presently, the lender is demanding a US$5.5 million payment from the airline. Citing unnamed sources, the report said that no other aircraft will be seized from BWIA while the government and the ILFC meet. The government admitted that BWIA's survival is in the interest of the country and the region. However, the degree of assistance it can extend to the airline is limited. The ILFC has not made comments on the issue, but assured that it might release a statement in the following days. CONTACT: BRITISH WEST INDIES AIRWAYS Phone: + 868 627 2942 E-mail: mailto:mail@bwee.com Home Page: http://www.bwee.com/ Contacts: Conrad Aleong, President and CEO (Trinidad) Beatrix Carrington, VP Marketing and Sales (Barbados) Paul Schutz, CFO (Trinidad) BWIA: CEO Boosts Offer To Save Airline -------------------------------------- British West Indies Airways president and chief executive Conrad Aleong is offering another concession in an attempt to save the ailing airline. The Trinidad Express relates that Mr. Aleong is willing to give up one-half of what was due to him. Mr. Aleong, whose contract ends in January, has expressed his willingness to relinquish his post, if that is what it takes to save the airline. Sources reportedly said that the government wants Mr. Aleong to resign before it provides BWIA financial aid. A recent report by the Troubled Company Reporter-Latin America indicated that the airline may have to pay Mr. Aleong for the entire contract, even if he resigns earlier than what has been stipulated in the said contract. CARONI LTD.: Unions Seek Full Recourse For Alleged Violations ------------------------------------------------------------- A union representing workers at Caroni (1975) Ltd. is seeking the maximum penalty to be imposed on the Company for allegedly committing 4,499 law infractions. Douglas Mendes, legal counsel for the All Trinidad Sugar and General Workers' Trade Union, asked the Industrial Court to convict of violating industrial relations laws and sentence the Company to pay a $4000 fine. Mr. Mendes said that although the penalty is a paltry sum, it will send an important message and prohibit the Company from promoting its Voluntary Separation of Employment Plan (VSEP) to its workers. The state sugar company is being sued for allegedly failing to negotiate the VSEP package with the union. However, Caroni lawyer Allan Alexander argued that the union "did not have the right to negotiate before giving of notice." According to him, it is only "after the expirable period of notice" that the union has a right to discuss matters relating to retrenchment. He added that under the Retrenchment and Severance Benefits Act, the employer had a period of 45 days to retrench workers. The union is represented by Mr. Mendes, Dave Cowie and Ashvani Mahabir, while Mr. Alexander, along attorneys Reginald Armour and Kerwin Garcia represent Caroni. The hearing was set to continue on Thursday. CONTACT: Caroni Limited Old Southern Main Road, Caroni, Trinidad & Tobago Phone: (868) 663-1781 or 662-0879 Fax: (868) 663-1404 All Trinidad Sugar and General Workers' Trade Union Rienzi Complex Exchange Village Southern Main Road, Couva. Contacts: President: Mr. Boysie Moore-Jones General Secretary: Mr. Rudranath Indarsingh Phone: 868-636-2354 Fax: 868-636-3372 E-mail: atsgwtu@opus.co.tt *********** 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 American is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ, and Beard Group, Inc., Washington, DC. John D. Resnick, Edem Psamathe P. Alfeche and Oona G. Oyangoren, Editors. Copyright 2003. 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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