/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/030827.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 Wednesday, August 27, 2003, Vol. 4, Issue 169 Headlines A R G E N T I N A ADEBALL: Court Sets Deadlines For Individual, General Reports ARGENVASES: Court Declares Bankruptcy AUTOPISTAS DEL SOL: Moody's Assigns Default Ratings To Bonds BOTICA DEL ARCON: Court Authorizes Reorganization CEPA: G&Z Transfers 42% Stake To Creditors CHASQUI: Court Orders Bankruptcy CONSOMME: Files "Concurso Preventivo" Motion CONSORCIO EMPRESARIO: Bankruptcy Proceeds As Ordered by Court DIRECTV LA: Raven Media's Bid for Trustee Denied EDICIONES NUEVO: Court Assigns Receiver For Bankruptcy ETCOTEX: Declared Bankrupt By Court EXPRESO: Bankruptcy Approved, Receiver Assigned FANTASTICO PRODUCCIONES: Seeks Court Permission To Reorganize FRUTICOLA TALCAHUANO: Court Sets Deadline to Verify Claims IMPSAT: 2Q03 Results Trending Better, Borrowing Expense Down INGENIERIA: Court Orders Liquidation LINEA BARBIZON: Court Approves "Concurso Preventivo" Motion MASTELLONE HERMANOS: S&P Rates $150M of Bonds 'raD' PAN AMERICAN: Moody's Ups LTFC Debt, FC Issuer Ratings to Caa1 PETROBRAS ENERGIA: Moody's Upgrades Ratings; Stable Outlook RUMIFER: Rio Cuarto Tribunal Orders Bankruptcy SECURITY CONSULTANTS: Court Sets Claims Verification Deadline TELEFONICA DE ARGENTINA: Names CEO To Board At 2 Units TRANSFEDE: Court Approves Involuntary Bankruptcy Petition VISOR ENCICLOPEDIAS: Gets Court's OK to Reorganization B E R M U D A TYCO INTERNATIONAL: Former Auditor To Testify Against Ex-Execs B R A Z I L AHOLD: Moving to Overturn Judge's Ruling on Units' Sale GERDAU: Launches New Thermal Cutting Unit KLABIN: Sells Shares Of Bacell TELEMAR: Regulator Finds In Embratel's Favor C H I L E ENDESA CHILE/TRANSENER: To Appeal Fines Imposed By SEC C O L O M B I A COLOMBIA TELECOMUNICACIONES: Announces New Outsourcing Deal J A M A I C A JUTC: Management Scrambles to Deal with Workers' Protest M E X I C O ALESTRA: Noteholders Meeting Scheduled for Cash Tender Offer GRUPO TMM: Terminates Proposed Sale After Shareholder Input VITRO: Consolidating Presence in Food Segment P A R A G U A Y BANCO ASUNCION: Dumping Debts Before Leaving Local Market P A N A M A INTERNATIONAL THUNDERBIRD: Shows Improving 2Q03 Results P E R U MINERA VOLCAN: Votorantim Revises Bidding Proposal V E N E Z U E L A PDVSA: New Unit To Handle All 3rd Party Contracts - - - - - - - - - - ================= A R G E N T I N A ================= ADEBALL: Court Sets Deadlines For Individual, General Reports ------------------------------------------------------------- Buenos Aires' Court No. 17, which holds jurisdiction over the reorganization of local company Adeball Amoblamientos S.A., has set the deadlines for the submission of individual and general reports. The receiver, Mr. Horacio Fernando Crespo, will submit the individual reports to the court on November 13, followed by the general report on December 30. The verification of credit claims will be done until September 25, after which the individual reports will be prepared. Local news source Infobae reports that that the informative audience will be held on February 19 next year. CONTACT: Horacio Fernando Crespo Maipu 464 Buenos Aires ARGENVASES: Court Declares Bankruptcy ------------------------------------- Argenvases SAF y C, which manufactures tin plate packages, is officially pronounced as bankrupt by the Buenos Aires' Court No. 5, relates La Nacion. Dr. Vasallo, the insolvency judge handling the case, is assisted by Clerk No. 10, Dr. Polo Olivera on the case. The court approved a petition for the Company's bankruptcy filed by its creditor, Cooperativa de Cr‚dito y Consumo San Pedro Limitada. The Company failed to meet its obligations on some US$200,000 in debt to the cooperative. The bankruptcy proceeds with the verification of credit claims. The receiver, Guillermo Torres, will verify claims until October 21, 2003. However, the report did not indicate the deadline of the individual and general reports. CONTACT: Argenvases SAF y C Cespedes 3857 Buenos Aires Guillermo Torres 7th Floor, Room 38 Ave. Corrientes 922 Buenos Aires AUTOPISTAS DEL SOL: Moody's Assigns Default Ratings To Bonds ------------------------------------------------------------ A total of US$380 million of corporate bonds issued by Argentine company Autopistas del Sol S.A. received `D' ratings from Moody's Latin America Calificadora de Riesgo S.A. recently. The rating, which is based on the Company's finances as of the end on March this year, is applied to financial obligations that are currently in payment default. Some US$170 million of the bonds are called "Obligaci¢n Negociable - Serie A", according to the Argentine Securities Commission. These mature on August 1, next year. Meanwhile, the remaining US$210 million of bonds are described as "Obligaci¢n Negociable - Serie B". This set matures on August 1, 2009. Both set of bonds are classified as simple issue. BOTICA DEL ARCON: Court Authorizes Reorganization ------------------------------------------------- The Civil and Commercial Tribunal of Mar del Plata approved a motion for "Concurso Preventivo" filed by local company Botica del Arcon S.R.L., reports Infobae. The Company now has permission to proceed with its reorganization process. The province's court No. 7, which handles the Company's case, assigned Mr. Alberto Arango as receiver. Verifications of credit claims will be done until September 19. After that period, the receiver will prepare the individual reports, which are due for submission on October 31 this year. The general report, on the other hand, must be submitted by December 15. The report adds that the court has set June 24 next year as the date for the informative audience. CONTACT: Alberto Arango Rawson 2272 Buenos Aires CEPA: G&Z Transfers 42% Stake To Creditors ------------------------------------------ Garovaglio & Zorraquin (G&Z) has transferred 42% of the shares of its slaughterhouse Compania Elaboradora de Productos Alimenticios (CEPA) to a group of creditors. CEPA, Argentina's second meat exporter, started a formal restructuring proceeding in 2000. It proposed to restructure a debt of US$80 million - with banks and suppliers - through an out-of-court agreement (APE) and offered two alternatives: capitalization or refinancing with longer terms. A big part of its creditors decided to take a stake in the Company. In relation to this alternative, CEPA undertook to increase its share capital from ARS21 million to ARS52 million. Those who opted for the first alternative will have a 42.4% stake in the firm, while G&Z will reduce its interest from 90% to 36%. The rest will belong to Federico Zorraquin, who owned a ARS11- million credit and also accepted the first alternative. Meanwhile, another group of creditors, to whom CEPA owes US$45 million, opted for the refinancing. This alternative involves an 8-year payment term, plus a 2-year grace period and a step-up interest rate. The holding Garovaglio & Zorraquin was founded in 1898 as a sugar consignee. In 1944, G&Z's shares started to quote on the Buenos Aires Stock Exchange and in the eighties G&Z emerged as one of Argentina's leading economic groups, with investments in petrochemical, mining and banking sectors. In 1993, Federico Zorraquin decided to restructure the holding, since the figures were not too healthy. Supported by his son, he sold the shares in the petrochemical firm Petroken, as well as its mining unit Cerro Castillo. In 1997, the Zorraquins bought 70% of CEPA from the Moche family for US$ 84 million and put all their energies on the food industry. By that time, CEPA had three big factories: Pontevedra, in Merlo; San Vicente, in Alejandro Korn, y another one in Venado Tuerto, Santa Fe. Now only the last one remains open. CHASQUI: Court Orders Bankruptcy -------------------------------- Court No. 11 of Buenos Aires ordered the bankruptcy of local company Chasqui S.A.. According to local news source Infobae, the city's Clerk No.21 aids the court on the case. Mr. Sergioomar Barragan is assigned receiver for the Company's bankruptcy, the report reveals. Creditors have until October 8 to have their claims verified. The court requires the receiver to hand in the individual reports, which are to be prepared upon completion for the verification process, on November 19 this year. The general report is due for submission on February 23 next year. CONTACT: Sergio Omar Barragan Rivadavia 666 Buenos Aires CONSOMME: Files "Concurso Preventivo" Motion -------------------------------------------- Argentine food company Consomme S.A. filed a motion for "Concurso Preventivo" to Court No. 10 of Buenos Aires, relates local newspaper La Nacion. The Company has stopped making payments on its financial obligations. Dr. Chomer, the insolvency judge handling the case, is assisted by Dr. D'Alessadri, the city's Clerk No. 19. The report did not indicate whether the motion is likely to be approved or not. CONTACT: Consomme S.A. Alvarado 2357 Buenos Aires CONSORCIO EMPRESARIO: Bankruptcy Proceeds As Ordered by Court ------------------------------------------------------------- Dr. Gonzales, insolvency judge for Buenos Aires' Court No. 8, declares Consorcio Empresario de Ahorro para Fines Determinados bankrupt. Local newspaper La Nacion relates that Mr. Eligio Quevedo filed a petition seeking the Company's bankruptcy on failure to meet its financial obligations on some US$18,297 of debt. The report adds that the deadline for verifications of credit claims is November 17 this year. Creditors must present their proofs of claims to the receiver, Mr. Juan Carlos Rama, before the said date. CONTACT: Consorcio Empresario de Ahorro para Fines Determinados: 7th Floor, Room 17 Ave. de Mayo 953 Buenos Aires Juan Carlos Rama 8th Floor, Room 54 Viamonte St. 1453 Buenos Aires DIRECTV LA: Raven Media's Bid for Trustee Denied ------------------------------------------------ As previously reported, William H. Sudell, Jr., Esq., at Morris, Nichols, Arsht & Tunnell, in Wilmington, Delaware, noted that there is a pervasive interrelationship between DirecTV Latin America, LLC and Hughes Electronics Corporation and its remaining affiliates: -- Hughes owns 75% of DirecTV's equity; -- four of the five members of DirecTV's executive committee and six of DirecTV's seven senior officers are Hughes employees; -- Hughes is DirecTV's DIP financing lender; and -- Hughes affiliates provide DirecTV with critical satellite services and are many of the local operating companies to whom DirecTV provides programming services and funding. Mr. Sudell argues out that these incestuous relationships preclude DirecTV from proceeding objectively with its business restructuring, which requires the re-evaluation and probable renegotiation of virtually all relationships. Furthermore, even DirecTV's business relationships with independent programmers are subject to conflicts regarding Hughes because those same programmers also deal extensively with Hughes' 100% owned United States subsidiary, DirecTV, Inc. Raven Media Investments LLC, as a holder, inter alia, of a general unsecured claim against DirecTV of not less than $189,000,000, sought the Court approval to appoint a Trustee or Examiner for DirecTV's case. Alternatively, Raven asked the Court to appoint an examiner with the responsibility to investigate and file a report on: (i) the validity and effect of all inter-company transactions between DirecTV and Hughes and its affiliates and insiders; (ii) the treatment of Hughes' claims against DirecTV, including, without limitation, as to issues regarding re-characterization; (iii) potential claims available to DirecTV's estate against its insiders and affiliates, especially Hughes; and (iv) substantive consolidation of DirecTV with any of its affiliates. Hughes Reacts Hughes Electronics Corporation addresses the highly inflammatory, and false, statement made by the Creditors' Committee that the purported "resistance it has encountered [from DIRECTV Latin America, LLC in the investigation] is the result of Hughes' influence. . . ." Mark D. Collins, Esq., at Richards, Layton & Finger, in Wilmington, Delaware, notes that nowhere in the Committee's Opposition is there any support for the assertion that Hughes has in any way obstructed the Committee's investigation of DirecTV. The Committee has issued no less than five separate document requests to Hughes of truly extraordinary breadth. Hughes determined to cooperate fully by producing virtually all non- privileged documents it can reasonably locate that pertain in any way to DirecTV. In fact, Mr. Collins reports, over 2,000 hours of attorney time have been spent to date collecting, reviewing, and producing responsive documents to the Committee. Yet the Committee conspicuously neglects to mention that Hughes has already produced to the Committee on a voluntary, informal basis 47 boxes of documents and is in the process of producing many additional documents. Mr. Collins assures the Court that Hughes has never interfered with the Committee's discovery efforts or indeed with any of the Debtor's obligations to the Committee. The Committee's statement, that it "has no doubt that the resistance [by the Debtor] it has encountered is the result of Hughes' influence," is nothing short of outrageous, particularly in light of Hughes' agreement to allow the Committee to use up to a total of $2,000,000 of the proceeds of the DIP financing facility that Hughes has provided to the Debtor and the proceeds of Hughes' collateral to fund the Committee's investigation. In addition, Huron Consulting, the Committee's financial advisor, has been collecting numerous documents directly from DirecTV's restructuring advisors, Alix Partners, LLC. In view of the fact that DirecTV has certain confidential business information within its possession concerning some Hughes affiliates, i.e., several Local Operating Companies, the California Broadcast Center, LLC, and PanAmSat Corporation, of which Hughes is a majority stakeholder, DirecTV has, on occasion, appropriately informed Hughes of certain Huron requests before producing Hughes-related confidential information to Huron. For instance, Huron asked for certain technical satellite information that involved the potential disclosure of CBC and PanAmSat proprietary data. Alix Partners, through DirecTV's counsel, communicated the request to Hughes' counsel, and Hughes promptly responded that it had no objection to DirecTV's production. Accordingly, Hughes is equally offended and perplexed by the Committee's gratuitous falsehood in the papers filed with the Court concerning Hughes' supposed interference in its investigation. * * * Judge Walsh denies Raven Media's request to appoint a trustee or examiner. (DirecTV Latin America Bankruptcy News, Issue No. 11; Bankruptcy Creditors' Service, Inc., 609/392-0900) EDICIONES NUEVO: Court Assigns Receiver For Bankruptcy ------------------------------------------------------ Court No. 11 of Buenos Aires assigned Mr. Ricardo Oscar Garcia as receiver for the bankruptcy of Ediciones Nuevo Siglo S.A., relates Infobae. Mr. Garcia will verify creditors' claims until October 9 this year. The Company was recently declared bankrupt by the court, the report recalls, adding that the city's Clerk No. 21 aids the court on the case. The individual reports are due for submission on November 20, while the general report must be submitted on February 4, 2004, says the report. ETCOTEX: Declared Bankrupt By Court ----------------------------------- Etcotex S.R.L., which is based in Buenos Aires, enters bankruptcy after the city's Court No. 14 ruled it is "Quiebra Decretada". Infobae reports that the city's Clerk No. 28 works with the court on this case. Ms. Silvia Beatriz Cusel, a local accountant, is assigned receiver to the process. The receiver will verify credit claims until September 24. After that, Ms. Cusel will prepare the individual reports, which must be submitted to the court no. November 5. The general report will follow on December 17. CONTACT: Silvia Beatriz Cusel Manuel B. Trelles 2350 Buenos Aires EXPRESO: Bankruptcy Approved, Receiver Assigned ----------------------------------------------- Court No. 39 of Cordoba assigned Ms. Victoria Rosina Barutta as receiver for the bankruptcy of local company, Expreso Cordoba-Mar del Plata S.R.L., relates Infobae. Ms. Barutta will verify creditors' claims until August 29. The Company was recently declared bankrupt by the court, Infobae recalls, without revealing the reasons behind the ruling. After the completion of the credit verification process, the receiver will prepare the individual and general reports, as required by Argentine bankruptcy law. FANTASTICO PRODUCCIONES: Seeks Court Permission To Reorganize ------------------------------------------------------------- Fantastico Producciones S.A., which is domiciled in Buenos Aires, is seeking court permission to undergo reorganization, relates local news source Infobae. The Company filed its motion for "Concurso Preventivo" to the city's Court No. 2, said the report. Clerk No. 4 of Buenos Aires works with the court on the case. However, the report did not mention whether the motion is likely to be granted or not. CONTACT: Fantastico Producciones S.A. Bulnes 2515 Buenos Aires FRUTICOLA TALCAHUANO: Court Sets Deadline to Verify Claims ---------------------------------------------------------- Creditors of Buenos Aires-based company Fruticola Talcahuano S.A. have until November 12, 2003 to have their claims verified by the receiver, Mr. Jacobo Shalum. After that, Mr. Shalum will prepare the individual reports, which must be submitted to the court. Argentine news portal Infobae recalls that the city's Court No. 20 recently approved the Company's motion for "Concurso Preventivo", giving it permission to undergo reorganization. However, the report did not indicate whether the court has the deadline for the individual and general reports. CONTACT: Fruticola Talcahuano S.A. Ave. Corrientes 3169 Buenos Aires Jacobo Shalum Lavalle 1672 Buenos Aires IMPSAT: 2Q03 Results Trending Better, Borrowing Expense Down ------------------------------------------------------------ IMPSAT Fiber Networks, Inc. ("Impsat" or the "Company"), a leading provider of integrated broadband data, Internet and voice telecommunications services in Latin America, announced its results for the second quarter of 2003. All figures are in U.S. dollars. SECOND QUARTER 2003 HIGHLIGHTS -- Net income per common share was $2.22 during the second quarter of 2003. -- Total revenues for the second quarter of 2003 were $56.4 million, a slight increase over revenues of $56.1 million for the first quarter of 2003. -- EBITDA for the six months ended June 30, 2003, was $20.9 million, a 10% increase over EBITDA for the six-month period ended June 30, 2002. -- For the six months ended June 30, 2003, operating expenses totaled $111 million, a decrease of 17% from total operating expenses of $133.7 million for the same period during 2002. Operating expenses for the relevant periods included a $16.4 million gain on extinguishment of debt for the first half of 2002 as compared to $ 8.8 million gain on extinguishment of debt for the same period in 2003. -- Interest expense decreased by 89% during the first half of 2003 as compared to the same period of 2002. The Company estimates its net cash interest expense will total approximately $15.0 million during 2003. -- Operating activities provided $20.5 million in net cash flow for the first half of 2003, compared to $4.3 million used for operating activities during the corresponding period of 2002. -- Available cash and cash equivalents at June 30, 2003 totaled $63.8 million, $8.2 million in excess of the Company's cash, cash equivalents and trading investments of $55.6 million at December 31, 2002. -- Total debt was reduced during the second quarter of 2003 by $7.2 million to $260.3 million at June 30, 2003, principally due to the extinguishment of certain vendor financing debt. SECOND QUARTER 2003 RESULTS Overview Despite the economic slowdown that has affected the telecommunications sector globally and in Latin America, Impsat achieved positive results from its operations after having completed its financial restructuring. The Company reported better than projected positive operating results and cash inflows from its operations. Total net revenues for the second quarter of 2003 were $56.4 million, compared to total net revenues for the second quarter of 2002 of $59.4 million. During this period, revenue from broadband, satellite and Internet services were the most adversely affected by the macroeconomic downturn affecting businesses in Latin America. However, total net revenues experienced a moderate increase of 1% as compared to the previous quarter ended on March 30, 2003. Operating expenses for the second quarter of 2003 equaled $49.2 million, a 12% decrease compared to operating expenses of $56.1 recorded for the second quarter of 2002. This decrease is a consequence of the continuing efforts of management to reduce operational expenses. Operating expenses for the six months ended on June 30, 2003 were $111 million, reflecting a 17% decrease over operating expenses of $133.7 million during the corresponding period of 2002. Commenting on the Company's results, Impsat CEO Ricardo Verdaguer said: "The performance of the Company during the second quarter demonstrated our capacity to overcome challenging circumstances. Despite the fact that Latin American economies continue to experience difficult conditions, Impsat is well positioned to improve rapidly its operating performance and growth when economic recovery commences in the region. Our cost-cutting initiatives during the prior year that have enhanced our efficiency, our positive operating performance, and our current financial status provide a solid foundation to our business and should enable us to grow in the future. Moreover, we maintain a fully integrated product portfolio of voice, data and Internet services that are supported by our presence throughout the region. We consider this to be the key to attracting pan-regional corporate customers." Revenue Breakdown by Business Line Broadband and satellite data services revenues represented 75% of our total net revenues from services during the second quarter of 2003. Compared to the second quarter of 2002, broadband and satellite data services revenues declined by $2.7 million, or 6%, principally as a result of lower satellite based services volume. Despite the economic slowdown that has posed a challenge to our region, broadband and satellite revenues showed a moderate increase of 1% as compared to the first quarter of 2003. During the second quarter of 2003, Internet revenues were $5.8 million, a 20.7% decrease as compared to the same quarter of 2002. This decrease in revenues is principally derived from higher competition, forcing pricing pressure. Our Internet services revenue during the second quarter of 2003 showed a moderate increase compared to the first quarter of 2003. Telephony services revenues increased 15.7% and 12% as compared to the second quarter of 2002 and the first quarter of 2003, respectively. This increase was due to increased delivery of switched voice services to corporate customers in Argentina and also international call terminations to end-user customers in the United Stated and Peru. Revenues from value added services increased principally due to the appreciation of the Argentine peso during the second quarter of 2003 as compared to the same period in 2002. Revenue Breakdown by Country Although Argentina has been the country most adversely affected by the economic slowdown in Latin America, the Argentine economy has shown some signs of growth in the first half of 2003. The Argentine peso gained strength during this period against the U.S. dollar and the Argentine government has predicted improved financial conditions for the remainder of the year. However, the Argentine economy continues to face severe challenges. This economic scenario has contributed to Impsat Argentina's relatively flat revenues. Total net revenues at Impsat Argentina were $15.6 million during the second quarter of 2003 and $30.3 million for the six months ended on June 30, 2003 (including intercompany transactions). These results represent increases of 9.5% and 0.6% as compared to similar periods during 2002. Impsat Argentina's revenues accounted for 25% of the total revenues of the Company during the second quarter of 2003. In Colombia, total revenues from services for the second quarter of 2003 were $13.6 million, compared to $15.0 million for the same quarter in 2002. Impsat Colombia's revenues represented 22% of total Company revenues for the second quarter of 2003. Impsat Brazil's total revenues from services, which represented 13% of Impsat's total revenues, were $7.8 million during the second quarter of 2003, compared to $10.1 million for the second quarter of 2002. Impsat Brazil's revenues were adversely affected during the first half of 2003 by the devaluation of the Brazilian real against the U.S. dollar over the corresponding period. During the second quarter, the Brazilian real appreciated against the U.S. dollar, which contributed to an increase in total revenues from services at Impsat Brazil as compared to the first quarter of 2003. Revenues at IMPSAT Venezuela totaled $8.6 million and $17.6 million for the second quarter and first half of 2003, compared to $7.7 million and $15.6 million for the same periods in 2002. Operating Expenses Operating expenses for the first half of 2003 decreased by 17% as compared to corresponding period of 2002. Operating expenses for the six months ended June 30, 2003 totaled $111 million compared to $133.7 million for the same period of 2002. During the second quarter of 2003, operating expenses equaled $49.2 million compared to operating expenses of $56.1 million in the second quarter of 2002, a 12% decrease. As compared to the first quarter of 2003, operating expenses decreased $12.6 million or 20%. Impsat's commitment to streamline its operating expenses, as well as lower depreciation during the second quarter of 2003 as a result of adjustments made in connection with the Company's emergence from Chapter 11 at the end of March 2003, resulted in a $22.7 million decrease in total operating expenses. Operating expenses include non-recurring gains on extinguishment of debt that accounted for $8.8 million during the six months ended June 30, 2003 compared to a gain of $16.4 million during the same period in 2002. EBITDA EBITDA for the second quarter of 2003 totaled $7.3 million, compared to $10.2 million from the same period of 2002. The decrease was due primarily to lower revenues during the second quarter of 2003. During the first half of 2003, EBITDA equaled $20.9 million, a 10% increase as compared to $18.9 million for the same period of 2002. The increase in the EBITDA for this period is the result of lower operating expenses that more than offset decreases in revenues for the same period. The Company's EBITDA margin was 13% for the second quarter of 2003 and 19% for the first half of 2003. In 2002, the ratio of EBITDA to revenues was 16% for the first half of 2002 and 17% for the second quarter of 2002. Effect of Foreign Exchange Losses, Taxes, Net Income and Operating Loss The Company recorded a net gain on foreign exchange for the three and six months ended June 30, 2003 of $21.4 million and $31.4 million respectively, compared to net losses of $45.1 million and $52.4 million for the same periods in 2002. The net gain on foreign exchange reflects primarily the effect of the appreciation during the first half of 2003 (i.e., compared to the end of 2002) of the Argentine peso and the Brazilian real on the book value of our monetary assets and liabilities in Argentina and Brazil. IMPSAT Argentina recorded a net gain on foreign exchange for the three and six months ended June 30, 2003 of $0.7 million and $1.2 million, respectively, compared to net losses of $5.7 million and $12.8 million for the same periods in 2002. IMPSAT Brazil recorded a net gain on foreign exchange for the first quarter and second half of 2003 of $21.5 million and $31.1 million, compared to net losses of $39.0 million and $39.1 million for the same periods in 2002. Net Income (Loss) For the three months and six months ended June 30, 2003, we recorded net income of $22.2 million and $753.3 million, compared to net losses of $85.6 million and $144.1 million during the same periods in 2002. Net income for these periods in 2003 was principally due to the effects of the extraordinary gain on extinguishment of indebtedness pursuant to our emergence from Chapter 11, our other gains on extinguishment of debt, and our net gain on foreign exchange. For the second quarter and first half of 2003, we recorded operating income of $7.2 million and $1.5 million, compared to operating income of $3.2 million and operating loss of $11.9 million for the same periods in 2002. Non-GAAP Financial Measures The Company presents EBITDA as a supplemental measure of performance because it believes that EBITDA provides a more complete understanding of our operating performance before the impact of investing and financing transactions. EBITDA and EBITDA margins are among the more significant factors in management's evaluation of Company-wide performance. EBITDA can be computed by adding depreciation and amortization to operating income (loss). Reconciliation of EBITDA to Operating Income (Loss) is presented in Appendix I Supplemental Financial Information in this Press Release. EBITDA (earnings before interest, taxes, depreciation, amortization, and non-recurring items) should not be considered as an alternative to any measure of operating results as promulgated under accounting principles generally accepted in the United States such as operating income or net income, nor should it be considered as an indicator of our overall financial performance. EBITDA does not fully consider the impact of investing or financing transactions as it specifically excludes depreciation and interest charges, which should also be considered in the overall evaluation of results. Moreover, our method for calculating EBITDA may differ from the method utilized by other companies and therefore comparability may be limited. Impsat Fiber Networks, Inc. is a leading provider of fully integrated broadband data, Internet and voice telecommunications services in Latin America. Impsat operates an extensive pan-Latin American high capacity broadband network in Brazil, Argentina, Chile and Colombia using advanced technologies, including IP/ATM switching, DWDM, and non-zero dispersion fiber optics. The Company has also deployed thirteen facilities to provide hosting services Impsat currently provides services to more than 2,600 national and multinational companies, government entities and wholesale services to carriers, ISPs and other service providers throughout the region. The Company has local operations in Argentina, Colombia, Venezuela, Ecuador, Brazil, the United States, Chile and Peru. Visit us at www.impsat.com. INGENIERIA: Court Orders Liquidation ------------------------------------ Ingenieria de Planta S.R.L. was declared "Quiebra Decretada" by Buenos Aires' Court No. 11. The Company's assets will be liquidated in the course of the bankruptcy process. A report by local news portal Infobae indicates that the city's Clerk No. 21 works with the court on the case. Without revealing the name of the designated receiver, Infobae adds that the verification of credit claims will end on October 9 this year. The individual reports need by be filed by November 20, while the general report's deadline is February 4 next year. LINEA BARBIZON: Court Approves "Concurso Preventivo" Motion ----------------------------------------------------------- Linea Barbizon S.A., which is domiciled in Buenos Aires, received permission from the city's Court No. 10 to undergo reorganization. Local news source Infobae reports that the court, which is assisted by the city's Clerk No. 20, approved the Company's motion for "Concurso Preventivo". In the meantime, the report did not mention whether a receiver has been assigned to the case. The receiver is usually a local accountant and will be tasked with the verification of creditors' claims. MASTELLONE HERMANOS: S&P Rates $150M of Bonds 'raD' --------------------------------------------------- Standard & Poor's International Ratings, Ltd. Sucursal Argentina recently issued a 'raD' rating to US$150 million of corporate bonds issued by Mastellone Hermanos recently. The country's National Securities Commission described the affected bonds as "Programa de Obligaciones Negociables autorizado por AGE de fechas 11 y 23.6.99". The rating was based on the Company's finances as of the end of June this year. S&P said that an obligation is rated 'raD' when it is in payment default, or if the obligor has filed for bankruptcy. The rating may also be used when interest or principal payments are not made on the date due, even if the applicable grace period has not expired, unless Standard & Poor's believes that such payments will be made during such grace period. PAN AMERICAN: Moody's Ups LTFC Debt, FC Issuer Ratings to Caa1 -------------------------------------------------------------- Moody's Investors Service upgraded its long term foreign currency debt rating and foreign currency issuer rating of Pan American Energy LLC to Caa1 from Ca. The rating outlook is stable. The upgrade was taken in conjunction with Moody's upgrades of Argentina's foreign currency ratings to Caa1 from Ca. The Argentine foreign currency rating was raised on August 20, 2003, with the assignment of a foreign-currency rating of Caa1 to dollar-denominated BODENs and Pagares issued by the Argentine government. PETROBRAS ENERGIA: Moody's Upgrades Ratings; Stable Outlook ----------------------------------------------------------- Moody's Investors Service upgraded its long term foreign currency debt rating and foreign currency issuer rating of Petrobras Energia S.A. (formerly Pecom Energia S.A.) to Caa1 from Ca. The rating outlook is stable. The upgrade was taken in conjunction with Moody's upgrades of Argentina's foreign currency ratings to Caa1 from Ca. The Argentine foreign currency rating was raised on August 20, 2003, with the assignment of a foreign-currency rating of Caa1 to dollar-denominated BODENs and Pagares issued by the Argentine government. RUMIFER: Rio Cuarto Tribunal Orders Bankruptcy ---------------------------------------------- Rumifer S.A.I.C.I.F., which is domiciled in Rio Cuarto, was declared bankrupt by the province's Civil and Commercial Tribunal. Infobae reports that Court No. 3 of Rio Cuarto holds jurisdiction over the Company's case. The receiver assigned to the case is Mr. Roberto Ugo Boccardo. He is tasked with the verification of creditors' claims. However, Infobae did not mention the deadline for the verification process. SECURITY CONSULTANTS: Court Sets Claims Verification Deadline ------------------------------------------------------------- Buenos Aires' Court No. 10, which holds jurisdiction over the reorganization of Security Consultants Office S.R.L., has set the deadline for creditors to prove amounts owed. According to a report by Infobae, the credit verification process ends on October 6, 2003. Creditors must present their proofs of claim to the receiver, M. Marta Susana Polistina before the said deadline. The receiver is required to file the individual reports on November 11. The general report must follow on February 4, 2004. An informative audience is also scheduled for July 8 next year. CONTACT: Marta Susana Polistina Ave. Corrientes 745 Buenos Aires TELEFONICA DE ARGENTINA: Names CEO To Board At 2 Units ------------------------------------------------------ Telefonica de Argentina, the country's leading phone operator and second-biggest media group, named Chief Executive Mario Eduardo Vazquez to the board of directors of its media investment and mobile phone units. Citing Monday's filings with the Buenos Aires Stock Exchange, Dow Jones Business News reports that the Company, a subsidiary of Spanish telecom Telefonica SA, named Vazquez as chairman of its cellular division, Telefonica Moviles Argentina SA. Vazquez, a general manager at former accounting giant Arthur Andersen, where he was responsible for the auditing firm's work on privatization projects in various parts of the world, was also appointed vice chairman of Telefonica Holding de Argentina SA, an investment arm with media interests. Telefonica de Argentina SA is a subsidiary of Spanish telecom Telefonica SA. CONTACT: TELEFONICA DE ARGENTINA Tucuman 1, 18th Floor, 1049 Buenos Aires, Argentina Phone: (212) 688-6840 Home Page: http://www.telefonica.com.ar Contacts: Carlos Fernandez-Prida Mendez Nunez, Chairman Paul Burton Savoldelli, Vice Chairman Fernando Raul Borio, Secretary TRANSFEDE: Court Approves Involuntary Bankruptcy Petition --------------------------------------------------------- Argentine transportation company Transfede S.A. entered a bankruptcy process after Buenos Aires' Court No. 2 approved a petition filed by its creditor, Cooperativa de Cr‚dito, Consumo y Vivienda Florida Limitada. Local news source Infobae adds that Dr. Garibotto, the insolvency judge, works with Clerk No. 4, Dr. Romero, on the Company's case. Local accountant Eduardo Zysman is the designated receiver for the case. Creditors must submit their claims to Mr. Zysman for verification before October 17. CONTACT: Transfede S.A. J. Barros Pazos 3545 Buenos Aires Eduardo Zysman 3rd Floor, Room A Talcahuano 464 Buenos Aires VISOR ENCICLOPEDIAS: Gets Court's OK to Reorganization ------------------------------------------------------ Visor Enciclopedias Audiovisuales S.A. started its reorganization process after Dr. Dieuzeide, insolvency judge of Buenos Aires' Court No. 1, approved the Company's motion for "Concurso Preventivo". A report by local newspaper La Nacion reveals that the receiver assigned to the case is Mr. Hector Caferatta, a local accountact. Mr. Caferatta will verify creditors' claims until September 23 this year. An informative assembly will be held on June 22 next year. The report adds that the city's Clerk No. 2, Dr. Pasina, aids the court on the case. CONTACT: Visor Enciclopedias Audiovisuales S.A. Anibal P. Arbeleche 1580 Buenos Aires Hector Caferatta 2nd Floor, Room A Laprida 2145 Buenos Aires ============= B E R M U D A ============= TYCO INTERNATIONAL: Former Auditor To Testify Against Ex-Execs -------------------------------------------------------------- Richard Scalzo, Tyco International's former auditor from PricewaterhouseCoopers, agreed to testify against two former Tyco executives, reports the Financial Times. Mr. Scalzo, who was banned by the Securities and Exchange Commission from auditing a public company for life in a civil case in which he neither admitted nor denied wrongdoing, will testify against Tyco former chief executive Dennis Kozlowski and former chief financial officer Mark Swartz in a criminal trial set to begin at the end of September, says the Financial Times. Mr. Kozlowski and Mr. Swartz are facing charges that they gained US$600 million by looting Tyco and engaging in improper stock transactions. Mr. Scalzo will testify that he did not know or authorize the actions taken by the two former Tyco executives. The paper indicates that attorneys for Mr. Kozlowski and Mr. Swartz likely will attack Mr. Scalzo's credibility, questioning whether he cut a deal to avoid criminal prosecution. =========== B R A Z I L =========== AHOLD: Moving to Overturn Judge's Ruling on Units' Sale ------------------------------------------------------- Dutch retailer Royal Ahold NV is now in talks with the Brazilian antitrust authorities regarding the sale of its assets in that country. The talks come after a Brazilian judge in the province of Sergipe ruled that Ahold must sell its Bompreco and G. Barbosa chains separately or face a fine of BRL100 million (US$33.22 million) per day. Ahold claims the antitrust authority has control over such a decision and can overturn it. "We are aiming at a joint sale" of the unit, Ahold spokesman, Fritz Schmuhl, said. "It's a very attractive proposition to a buyer to buy them together because it offers strategic value." Bompreco and G. Barbosa had combined sales of EUR1.6 billion ($1.8 billion) in 2001, the last time Ahold presented audited sales figures for the units. Brazil's two biggest retailers, Companhia Brasileira de Distribuicao SA and Frances Carrefour SA, have both expressed interest in the assets. Wal-Mart Stores Inc. is also expected to enter the competition. The sale of the units forms part of Ahold's exit of the South American market as it tries to pay down its EUR12-billion debt. GERDAU: Launches New Thermal Cutting Unit ----------------------------------------- Brazil's Gerdau, the largest long steel producer in the Americas with installed capacity of 14Mt/y, unveiled a new thermal cutting service center for steel sheets, relates Business News Americas. The new unit, which is sited in Fortaleza, in Ceara state in the northeast of the country, has the capacity to process 3,000t/y. according to the Company, the technology, developed in partnership with industrial gas provider White Martins, supplies products with precision cuts, thereby reducing clients' costs related to logistics and waste. The Gerdau group operates 23 plants in Brazil, the US, Canada, Argentina, Chile and Uruguay. KLABIN: Sells Shares Of Bacell ------------------------------ Klabin S.A. announced on August 20 2003 that it has signed contract to sell its 81.711% share of Klabin Bacell S.A's total capital for US$ 91.205 million. The contract was signed with RGM International PTE Ltd (RGM), an Asian business group, with head office in Singapore. The operation also includes transferring assets and liabilities related to Klabin's purchased shares of forestry company Norcell S.A. The financial operation will take place on September 30 2003. Bacell's estimated value was US$111.6 million. RGM International, a diversified Asia Pacific business group, operates in a variety of businesses in the basic industry. The group's major interests are pulp and paper, vegetal oil, and its businesses, and energy. "With this sale, we conclude the assets sale cycle that Klabin aimed to carry out, as announced, until the end of August 2003", states Klabin's general director Miguel Sampol. Klabin reinforces its business focus and consolidates its position as the leading company in the integrated production of pulp, paper and packaging paper in Latin America, in addition to reinforcing its position as the world leading exporter of packaging paper. "We clearly restate our business focus and reinforce the solidity of the company's bottom line which allows us to anticipate the company's future growth", states Sampol. Unibanco, UBS Warburg and Demarest & Almeida Advogados supported Klabin in the transaction. Bacell produces 120 thousand tons of soluble pulp yearly. It is the only manufacturer of this product in the country whose production is designed for special purposes like he petrochemical sector and the food and textile industries. Nearly all its production is designed for the foreign market. A Brazilian company with a 104-year tradition in innovation and technological development for the integrated production of wood, pulp, paper and packaging paper, Klabin is recognized worldwide as one of the strongest representatives of the Brazilian industry. It is also the leading manufacturer and exporter of packaging paper, especially kraftliner, and also the only manufacturer of paperboard for packaging liquids in Latin America. The company's export of kraftliner - paper for corrugated boxes - is reaching 6% of the volume traded abroad, a sizable contribution to the Brazilian trade balance. The company's financial restructuring process gained momentum this year when Klabin's shares of Riocell S.A. were sold to Aracruz Celulose S.A. The transaction value in the Brazilian currency was equivalent to US$ 610.5 million. In the beginning of August 2003, Klabin sold its 50% share of Klabin Kimberly S.A. (Brazil) and KCK Tissue S.A (Argentina) to Kimberly-Clark Tissue do Brasil Ltda and Kimberly-Clark Argentina S.A. The transaction value amounts to R$ 408.06 million equivalent to US$ 134.4 million. This amount comprised the cash payment in Brazilian currency (real) of US$ 112.8 million and the non-consolidated debt of US$ 21.6 million. The company had good performance in the year's two first quarters. Even with the country's economic deceleration, the company's net profit increased 47% and reached R$ 1. 68 billion. The company's net profit was R$ 1 billion. Founded in 1899, the company operates in eight Brazilian states and in Argentina, and after the restructuring process it has 20 units and generates about 12 thousand direct and indirect jobs. TELEMAR: Regulator Finds In Embratel's Favor -------------------------------------------- The complaint by Brazil's long distance incumbent Embratel that the country's largest incumbent fixed line operator Telemar is giving illegal discounts to the latter's data subsidiary for the lease of its last-mile network proved to be true. Business News Americas relates the Embratel brought the matter to the telecoms regulator Anatel last year, saying that the Company pays higher interconnection fees for use of Telemar's data network than Telemar's data unit pays to Telemar. Just recently, Anatel found out that Telemar is indeed guilty of the illegal activity. As a result, the regulator warned that if Telemar continues to charge itself illegal discounts for last- mile data connection services, it will be fined BRL106,000 (US$35,300) daily. Anatel said fines would be applicable from August 22. In addition, Anatel has requested Telemar to provide a detailed account of prices charged for all of its last-mile data services clients. ========= C H I L E ========= ENDESA CHILE/TRANSENER: To Appeal Fines Imposed By SEC ------------------------------------------------------ Chile's energy regulator SEC slapped transmission company HQI Transelec and generator Endesa Chile, among other companies, fines for their responsibility in a blackout that cut power to about 10 million people in central Chile on September 23, 2002, says Business News Americas. "The generation and transmission companies failed to comply with their legal obligation adequately to coordinate the system's operation to ensure the safety of electrical service by not carrying out the necessary checks and verifications to operate and maintain the system correctly," the SEC said in a statement. The outage was caused by inadequate operation of the system, and not from a lack of transmission or generation capacity, SEC superintendent Sergio Espejo said. Transelec was fined US$1.27 million for faulty programming in the protection of its power lines, which meant a failure at one of its stations had knock-on effects throughout the system. Endesa Chile was fined US$750,000 for failing adequately to maintain the emergency system and for not supplying SEC with information necessary to proceed with the investigation, the SEC said. Both Transelec and Endesa Chile said they plan to appeal the fines. "We will appeal it, because we consider that the company is not responsible," Endesa Chile spokesperson Beatriz Montreal confirmed to Business News Americas. Endesa could appeal the fine directly to the SEC or to the national appeals court. "At the moment we are studying the different options and will decide in the next few days," Montreal said. Transelec, according to Business News Americas, is owned by Canada's HydroQuebec and is the main transmission company in the SIC grid that delivers power to most of central Chile, while Endesa Chile has about 3,522MW installed capacity. =============== C O L O M B I A =============== COLOMBIA TELECOMUNICACIONES: Announces New Outsourcing Deal ----------------------------------------------------------- Colombia's state-run fixed line operator Colombia Telecomunicaciones revealed it has signed an outsourcing contract with Serintcoop (Servicios Integrados Cooperativos), relates Business News Americas. Under the contract, the first since the Company's recent formation to replace the liquidated debt-ridden Telecom, Colombia Telecomunicaciones will entrust its network maintenance to Serintcoop, a company set up by the former workers of the defunct Telecom. This initial contract covers maintenance of 21,000 lines in Caqueta department and its capital Florencia. Telecom has about 3 million lines installed in all. Colombia Telecomunicaciones plans to convert former Telecom staff into strategic partners that can compete to offer plant maintenance, network, call center and administration support services in a bid to operate much more efficiently, the report suggests. ============= J A M A I C A ============= JUTC: Management Scrambles to Deal with Workers' Protest -------------------------------------------------------- The management of the Jamaica Urban Transit Company (JUTC) met Monday to discuss the impact of the industrial action taken by the drivers and conductors represented by the University and Allied Workers Union (UAWU), and the measures to reduce the potential fallout. RadioJamaica.Com says that the workers took the action Monday morning to protest against the management's delay in adjusting their salaries in keeping with a reclassification exercise. Reports have it that the said exercise, which started two years ago, should have resulted in an adjustment in some workers' salaries. The management of the JUTC has proposed that the changes in salaries be retroactive to April this year but the union is demanding that the payments be made retroactive to last year when the exercise was completed. In addition, the workers are also demanding that the JUTC management addresses the issues of uniform and travelling allowances. Grant said a meeting with the JUTC management has been scheduled for Wednesday to discuss the issues that have led to the industrial unrest. =========== M E X I C O =========== ALESTRA: Noteholders Meeting Scheduled for Cash Tender Offer ------------------------------------------------------------ Alestra, S. de R.L. de C.V. ("Alestra") announced that it will conduct a meeting to inform noteholders as to the progress of its restructuring and to discuss the cash tender offers and exchange offers for its outstanding Senior Notes that it launched on August 21, 2003. The meeting will be held at the offices of Morgan Stanley at 1585 Broadway, New York NY, on September 3, 2003 at 10:30 a.m. Eastern time. For security purposes, those who intend to participate in person must inform Heather Hammond at Morgan Stanley, either via fax at 212-761-0588 or via email to heather.hammond@morganstanley.com. Interested parties may also participate telephonically. Dial-in information is as follows: (888) 216-2160 for U.S. participants (617) 801-9706 from outside the U.S. Those who participate by telephone are encouraged to dial in 10 minutes prior to the start of the call. The meeting will begin promptly at 10:30 a.m. New York time and is expected to last no longer than 60 minutes. Morgan Stanley & Co. Incorporated is acting as dealer manager and solicitation agent for the cash tender offers and exchange offers. No indications of interest in the restructuring are being sought by this press release. About Alestra Headquartered in San Pedro Garza Garcia, Mexico, Alestra is a leading provider of competitive telecommunications services in Mexico that it markets under the AT&T brand name and carries on its own network. Alestra offers domestic and international long distance services, data and internet services and local services. CONTACT: Morgan Stanley & Co. Incorporated Heather Hammond Phone: 1-800-624-1808 (domestic US) Investor Relations Phone: 1-212-761-1893 (international callers call collect) Email: heather.hammond@morganstanley.com Alestra, S. De R.L. de C.V. Alberto Guajardo Phone: (52-818) 625-2219 Email: aguajard@alestra.com.mx GRUPO TMM: Terminates Proposed Sale After Shareholder Input ----------------------------------------------------------- Grupo TMM, S.A. (NYSE: TMM) ("TMM" or the "company") announced that, as a result of the unanimous vote by its shareholders at the company's General Ordinary Shareholders' Meeting on August 18 to not approve the sale of TMM's interests in Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. (Grupo TFM) to Kansas City Southern ("KCS"), TMM's Board of Directors have formally notified KCS of the termination of the proposed sale. Subsequently, the Mexican Foreign Investment Commission has also been formally notified by Grupo TFM of the termination ("desistimiento") of the application that Grupo TFM had submitted before the Commission to permit KCS's participation in more than 49 percent of Grupo TFM's equity. The application, therefore, is now without substance. The termination of the transaction formalizes Grupo TMM's shareholders' decision to exercise the full extent of their rights. The company's Board of Directors has also directed management to pursue all reasonable alternatives to restructure Grupo TMM's outstanding indebtedness and improve the company's financial profile. 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. Grupo TMM is listed on the New York Stock Exchange under the symbol TMM and Mexico's Bolsa Mexicana de Valores under the symbol TMM A. VITRO: Consolidating Presence in Food Segment --------------------------------------------- Vitro Packaging, Inc. a Dallas, Texas based subsidiary of Vitro (NYSE: VTO; BMV: VITROA), announced Monday the signing of a five year contract to supply Glass Containers to Mrs. Dalton's Best Maid Products, Inc. a Forth Worth Texas Based Food Company. "Only glass provides the product protection to assure our products reach the consumer at ultimate freshness", reiterated Gary Dalton, President of Best Maid Products, Inc. On the other hand, Lee Farlander President of Vitro Packaging said; "Our contract with Best Maid Products reflects their continued confidence in Vitro's Glass quality and service as well as their commitment to Glass". For over seven decades Best Maid and Del-Dixi brand products have maintained a reputation of taste, freshness, and service. Premium ingredients that are precisely measured and blended ensure the quality for which Best Maid and Del-Dixi brands are famous. Fresh home-grown pickling cucumbers are planted, machine harvested, cleaned, sized and rushed from fields to either Fresh-Pack jars or pickling tanks within 24 hours after picking. Dill pickles, sour pickles, sweet pickles, baby pickles, mustard, syrup, French and Italian dressing, are among other, Best Maid and Del-Dixi most representative products sold in grocery and convenience stores all over the country, such as HEB, ALBERTSONS, SAM'S CLUB, WALLMART, KROGER, WINN DIXIE, among other. Vitro currently supplies no fewer than 12 different glass containers in sizes ranging from 8 oz to 1 gallon, and will provide a larger line of stock containers in the future, thanks to a joint effort between Best maid Products and Vitro staff which have been working together to supply the best packages for their product line. Jeff Robinson Vitro Packaging Regional Manager commented that Best Maid Products prefer glass containers, because plastics allow oxygen into the product, thus making pickles soggier and attacking shelf life. Robinson said that glass containers are the preferred choice for premium packaging and quality among his customers. "Thanks to our customers' support and confidence, as well as to a great team effort between Vitro Packaging staff and our manufacturing facilities in Mexico, we are being able to maintain our sales increase trend this year", said Lee Farlander, President of Vitro Packaging. Part of our success in selling Food Containers has been the development of a complete line of stock food containers which meet the needs of most companies in the United States, Mexico or Canada that is interested in packaging food in glass. The other advantage of doing business with Vitro Packaging is our focus and delivering quality and high levels of service. Each client becomes part of a dedicated team. 2002 sales of Vitro Packaging reached US$ 209 million, accounts for 25% per cent of Vitro's Glass Containers business unit and has 98 employees. Vitro Packaging services the 48 contiguous states with offices in Napa, Sacramento, Dallas, Atlanta and New York City. Vitro Packaging continues to grow in 2003 with Sales up 5.1% YTD. For more information about Best Maid Products, Inc. www.bestmaidproducts.com For more information about Vitro's glass containers, please contact Jeff Robinson, Regional Manager of Vitro Packaging at (469) 443-1132 or E-mail him at: jrobinson@vitro.com Vitro, S.A. de C.V. (NYSE: VTO; BMV: VITROA), through its subsidiary companies, is one of the world's leading glass producers. Vitro is a major participant in three principal businesses: flat glass, glass containers and glassware. Its subsidiaries serve multiple product markets, including construction and automotive glass; fiberglass; food and beverage, wine, liquor, cosmetics and pharmaceutical glass containers; glassware for commercial, industrial and retail uses; plastic and aluminum containers. Vitro also produces raw materials and equipment and capital goods for industrial use. Founded in 1909 in Monterrey, Mexico-based Vitro has joint ventures with major world-class partners and industry leaders that provide its subsidiaries with access to international markets, distribution channels and state-of-the-art technology. Vitro's subsidiaries have facilities and distribution centers in eight countries, located in North, Central and South America, and Europe, and export to more than 70 countries worldwide. CONTACT: VITRO, S.A. de C.V. http://www.vitro.com (Media Monterrey): Albert Chico Smith +52 (81) 8863-1335 achico@vitro.com (Media Mexico D.F.): Eduardo Cruz +52 (55) 5089-6904 ecruz@vitro.com (Financial Community): Beatriz Martinez/Jorge Torres +52 (81) 8863-1258/1240 bemartinez@vitro.com jtorres@vitro.com (U.S. Contacts): Alex Fu of dikidis/Susan Borinelli Breakstone & Ruth Int. (646) 536-7012 / 7018 afudukidis@breakstoneruth.com sborinelli@breakstoneruth.com =============== P A R A G U A Y =============== BANCO ASUNCION: Dumping Debts Before Leaving Local Market --------------------------------------------------------- Before quitting Paraguay, Spanish financial group SCH's local subsidiary Banco Asuncion will cancel all its outstanding debts, Business News Americas reports, citing a source from the Madrid- based group. Banco Asuncion will continue to maintain a presence in Paraguay through the bank's elected liquidator and chairman Lizardo Pelaez who will remain the Santander group's regional representative, said the source. The liquidator will carry out the liquidation process in an ordered and transparent manner with no definitive timescale set for its completion. Sufficient time will be set aside for the full repayment of savings deposits as well as debts owed to creditors, the source added. SCH elected to close Banco Asuncion after it failed to find a suitable buyer for the loss-making subsidiary. Rumors had it that Paraguayan financial group Itacua was close to reaching an agreement with SCH to purchase Asuncion. However, the deal fell through. Banco Asuncion reported a EUR2.9 million loss for SCH last year. The bank currently has less than one tenth the deposits it had two years ago, according to Pelaez. =========== P A N A M A =========== INTERNATIONAL THUNDERBIRD: Shows Improving 2Q03 Results ------------------------------------------------------- International Thunderbird Gaming Corporation (CNQ:ITGC) announces its financial results for the second quarter ended June 30, 2003. All figures are in US dollars. Revenues from continuing operations for the second quarter of 2003 were $5.2 million, an increase of 16 % over 2002 revenues from continuing operations of $4.5 million for the same period. Net income for the period was $684 thousand compared to a loss of $121 thousand in 2002 for the same period. The income for the current period stems from ongoing continuing operations but also benefited from the settlement with one of the California gaming recoverables. The Company has now settled all of its California gaming receivables. The earnings per share were $0.03 cents in Q2 2003 compared to a loss of $0.01 per share for the same period in 2002. The Company achieved EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of $1.5 million compared to $770 thousand for the same period in 2002. The Company's working capital deficiency continues to improve, as the working capital deficiency went from $2.6 million at December 31, 2002 to $1.6 million at June 30, 2003. In Panama, 2003 revenues for casinos with comparable 2002 results posted a 10% increase for the quarter compared to the same period last year. The Chitre and Decameron casinos collectively accounted for an additional 9% growth in revenues for the quarter in 2003. These casinos did not exist in the second quarter of 2002. In Guatemala, the Company is reflecting its first full quarter under the terms of the new agreement with ILAC. The resulting impact helped make for a 27% increase in gross profit for the 2003 second quarter over the same period in 2002. The operations posted an 8% growth in revenues for the second quarter 2003 compared to the same period in 2002. The Company completed its expansion of the Salon at the Camino Real Hotel, which included the opening in July of a "bar-restaurant." Twenty-five additional video lottery machines will be placed in operation during the third quarter of 2003. In Nicaragua, the Company enjoyed its first full quarter under the merged operation with the Pharaoh's Casino. Revenues of $1.8 million for the quarter exceeded expectations. The Company uses the equity method of accounting to record its investment in Nicaragua. However, pending final approval by certain local authorities in Nicaragua of the merged financial statements, the Company has elected to defer to the 2003 third quarter the recording of the results for the second quarter. The third quarter will reflect the Company's share of Nicaragua's year to date results. In Venezuela, the local government has held the foreign exchange rate to 1600 Bolivars to 1 US dollar, since February 2003. As a result, in the 2003 second quarter, Fiesta Casino Guayana has not continued to record substantial foreign exchange losses from the devaluation of the local currency. Revenues, in the local currency, for the quarter grew 61% over the comparable period in 2002. However, when converted to US dollars, the difference is a 3% decrease in 2003 over 2002. The entity posted a $149 thousand 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 contribute cash flow to complete construction of a convention facility. Management believes Venezuela will be an important contributor in the future. In Mexico, the Company submitted a lengthy brief and well over 15,000 pages of documents and declarations in support of its claim. The Mexico Government has until December 15, 2003 to file its reply. The scheduled trial for the week of April 26, 2004 remains on track. The trial will be held in Washington DC in front of an internationally recognized panel, approved for adjudicating NAFTA claims. Jack R. Mitchell, President and CEO completed the acquisition of 916,000 shares in a private transaction from an institution in Panama. The shares were acquired for USD$0.30 and brings Mr. Mitchell's share ownership in the Company to 1,739,559. The Company is advancing on development plans to initiate operations in Costa Rica in the fourth quarter. Recent legislation has improved the regulatory environment. The Company is investigating new financing to fund its development activities. Current discussions involve debt financing without dilution of shareholders' interests. The Company has opened a "development office" in Chile. In connection therewith, the Company formed a subsidiary to pursue opportunities. Independent investors have committed to fund $650,000 of a $1.3 million development budget. The Company and its affiliates through a combination of cash and services will fund the remainder. Chile currently has seven casinos generating an estimated combined $85 million in revenues annually, and serving a population of 1.8 million. There is pending legislation that authorizes the establishment of additional licenses in the country, which will serve significant new markets. Chile is the most politically and economically stable country in Latin America. It is expected to adopt a free trade agreement with the United States before year-end. Management is excited about the opportunity to participate in this market. The Company is pleased with the progress of trading on Canada's newest equity market, the Canadian Trading and Quotation System, Inc. (CNQ). Although volume in trading remains light, the CNQ continues to increase its dealers' network so as to ensure that shareholders have a forum to trade shares with minimum disruption. 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 Cautionary Notice: This release contains certain forward-looking statements within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential revenue and future plans and objectives of the Company are forward-looking statements that involve risk and uncertainties. There can be no assurances that such statements will prove to be accurate and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's forward-looking statements include competitive pressures, unfavorable changes in regulatory structures, and general risks associated with business, all of which are disclosed under the heading "Risk Factors" and elsewhere in the Company's documents filed from time-to-time with the TSE and other regulatory authorities. ======= P E R U ======= MINERA VOLCAN: Votorantim Revises Bidding Proposal -------------------------------------------------- Brazilian conglomerate Votorantim said it is updating its proposal for Peru's No. 2 zinc miner, Volcan Compania Minera, reports Reuters. Paraibuna de Metais, part of Brazil's Votorantim group, is one of the companies to place a bid for Volcan, along with Peruvian tin miner Minsur and Swiss natural resources group Glencore. Votorantim, which does not want to take on the Peruvian company's hefty debts, attributed its move to the presence of other bidders. "We can confirm we wish to buy Volcan, but other interested parties have appeared so we are updating the bidding proposal. Votorantim has made a purchase offer," a top official from Votorantim Metais, who declined to be named, told Reuters. "We are expecting some decision on the bidding process at the end of next week," the official said. Hard-hit by low zinc prices, Volcan has been looking for a strategic partner for some time to help solve its financial problems. The Company owes about US$100 million to financial institutions and US$50 million to suppliers. It posted a US$8.1- million loss in the second quarter of 2003, compared to a loss of US$5.5 million in the same period last year. Revenue dropped 5.6% year on year due to lower volumes sold and weaker zinc prices. Volcan operates the Yauli and Cerro de Pasco units in central Junin and Pasco departments respectively. It also has the Chungar unit in Pasco. CONTACT: COMPANIA MINERA VOLCAN Av Gregorio Escobedo 710 Jesus Mara Lima, Peru Tel: +51 1 219-4000 Fax: +51 1 261-9716 Contact: Mr. FMG Sayan (Francisco), Chairperson ================= V E N E Z U E L A ================= PDVSA: New Unit To Handle All 3rd Party Contracts ------------------------------------------------ Venezuela's state oil company PDVSA formally transferred all of its joint ventures contracts with private sector companies to a new unit in order to reduce production costs and increase its revenues, relates Business News Americas. Hydrocarbons deputy minister Luis Verma, who is also the first president of the new unit called Corporacion Venezolana de Petroleo (CVP), revealed the information. CVP will be responsible for managing 33 joint ventures, four Orinoco delta heavy crude joint ventures and three natural gas risk sharing agreements. Most of the staff that used to handle these contracts under the old structure will be transferred to CVP, Vierma said. Other officials of CVP include Rafael Lander, who has been appointed as vice president; Angel Gonzalez and Jose Felix Rivas, who been appointed as directors; and Oscar Fanti and Nehil Duque, who have been appointed as managers for western and eastern Venezuela respectively. *********** 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., 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. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *