/raid1/www/Hosts/bankrupt/TCRLA_Public/030916.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Tuesday, September 16, 2003, Vol. 4, Issue 183
Headlines
A R G E N T I N A
ABU: Official Reports Due Today
ADPROM ARGENTINA: Court Orders Bankruptcy
AGROINDUSTRIAS DEL VALLE: Individual Reports Due Today
AGUAS ARGENTINAS: Court Mandates New Sewage Plant
ANCEL HERMANOS: Claims Verification Ends Today
BLANCHEUR: Bankruptcy Decree Starts Reorganization Process
CABLEVISION: Pramer Under Fire For Subsidiary Sale
CABLEVISION: Moody's Confirms Ratings; Outlook Negative
CORPORACION PROFESIONALES: Receiver Checks Claims
CT GLOBAL CORP: Court Assigns Receiver For Bankruptcy
DECUNTO MATERIALES: Claims Authentication Ends Today
DEFENSA Y ENCAUZAMIENTO: Reorganization Process Starts
DIRECTV LA: Motion To Continue Deloitte's Employment As OCP
EDEMSA: French Parent Considers Pullout
LAMITECNICA: Creditors' Proofs of Claim Required
LAS RUEDAS: Enters Bankruptcy On Court Order
MARIA DE BUENOS AIRES: Court Sets Deadlines For Reports
MULTICANAL: APE Settlement Request Denied
REFRIGERACION TECNOLOGICA: Court OK's Reorganization
SERVINTSA: Reorganization Into Bankruptcy Process
SIETE ASES: Submits Preventative Aid Motion To Court
TALLERES INDUSMAR: Seeks Permission To Undergo Reorganization
TEXTIL PUNILLA: Reorganization Proceeds To Bankruptcy
TGS: Extends LPG Deal With Petrobras Till 2006
TOUT ALBERDI: Receiver Verifies Claims For Bankruptcy
B A R B A D O S
C&W BARBADOS: Says Ceded License Came Without Monetary Demands
B R A Z I L
AES CORP: BNDES Wants to Block Share Seizure Process
D O M I N I C A N R E P U B L I C
BANINTER: Baez Defense Panel Calls For Investigation Into Fire
H O N D U R A S
AES CORP.: Loses Power Generation Contract in Honduras
M E X I C O
GRUPO IUSACELL: Bondholders Send Official Default Notice
GRUPO MEXICO: To Issue New Shares Pending Shareholder Approval
LFC: Announces Power Losses Reduction Program
PEMEX: Signs Crude Oil Processing Deal With 7 US Refineries
P A R A G U A Y
ANDE: Profits Projected By Year-End
P U E R T O R I C O
CENTENNIAL COMMUNICATIONS: 1Q03 Results Show Flat Results
T R I N I D A D & T O B A G O
BWIA: Association Slams Request For Caribbean Star's Removal
V E N E Z U E L A
CANTV: CADIVI Okays Payment of Remaining Debt Obligations
- - - - - - - - - -
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A R G E N T I N A
=================
ABU: Official Reports Due Today
-------------------------------
The individual reports pertaining to the reorganization of
Argentine metals producer, Abu S.R.L., is due for filing at the
court today, September 16. The receiver, Ms. Maria Marta
Simmariva, will now prepare the general report, which is to be
submitted to the court on October 10 this year.
The receiver has completed the credit verification process on
August 5, which gave her 42 days to prepare the individual
reports. The credit verification process was done to investigate
the nature and amount of the Company's debts.
The informative assembly is set for May 4, 2004, according to an
earlier report from the Troubled Company Reporter - Latin
America.
CONTACT: Ms. Maria Marta Sommariva
Florida 930
Buenos Aires
ADPROM ARGENTINA: Court Orders Bankruptcy
-----------------------------------------
Court No. 15 of Buenos Aires declared local company Adprom
Argentina S.A. recently is officially reorganizing. A report by
local news source Infobae reveals that the court decreed the
company as bankrupt.
The Company's creditors are given until October 24 to present
their claims to the receiver, Mr. Carlos Lausi, for verification.
The receiver is also expected to prepare the individual and
general reports on the process. However, the source did not
reveal whether the court has set the deadlines for these reports.
CONTACT: Carlos Alberto Lausi
Ave. de Mayo 633
Buenos Aires
AGROINDUSTRIAS DEL VALLE: Individual Reports Due Today
------------------------------------------------------
The individual reports for the reorganization of Agroindustrias
del Valle S.A., are due for submission to the court today. The
Company's receiver, Ms. Silvia Nelida Nunez, has to duty of
preparing these reports.
The Company, based in Guaymallen, Mendoza, filed and obtained
approval for its "Concurso Preventivo" motion from the province's
Civil and Commercial tribunal.
The province's Court No. 1 ordered the receiver to have the
general report ready by October 27 this year. The court also
ordered an informative assembly to be held on June 11 next year.
CONTACT: Agroindustrias del Valle S.A.
Tupungato 519, Guaymallen
Mendoza
Ms. Silvia Nelida Nunez
Mitre 565, Guaymallen
Mendoza
AGUAS ARGENTINAS: Court Mandates New Sewage Plant
-------------------------------------------------
Argentine waterworks concessionaire Aguas Argentinas must build a
sewage treatment plant in the city of Berazategui in 18 months,
as ordered by a federals court in the city of La Plata, says
Business News Americas, citing a local news source.
"Berazategui receives the fecal material of 6 million residents
and since 1944 there has been talk of building a treatment
plant," provincial political affairs secretary Juan Jose Mussi
was quoted by Infobae as saying.
Infobae recalls that in 1992, Berazategui began legal proceedings
claiming ecological damage from wastewater and sewage pollution.
When Obras Sanitarias de la Nacion was privatized in 1993, Aguas
took over, and was contractually obliged to build a plant in
Berazategui. When the concessionaire renegotiated its contract in
1997, it was given until 2018 to have the plant in place.
Aguas, which is controlled by France's Suez and Spain's Agbar,
claims it has not received notice of the ruling yet.
Aguas won its 30-year operating concession in 1993, and serves
some 10 million residents in greater Buenos Aires. Its concession
area takes up 1,830 sq. km.
ANCEL HERMANOS: Claims Verification Ends Today
----------------------------------------------
The credit verification process regarding the reorganization of
Ancel Hermanos S.A.C.I.I. ends today, September 16. The Company's
receiver, Ms. Maria Yolanda Aguirre, will now start preparations
for the individual reports, which must be submitted to the court
on October 26 this year.
A recent report by the Troubled Company Reporter - Latin America
indicated that the Civil and Commercial Tribunal of Resistencia,
Chaco in Argentina granted the Company permission to undergo
reorganization by approving its motion for "Concurso Preventivo".
The receiver is also required to prepare a general report on the
process and have it filed at the court on December 10 this year.
Local sources, however, did not mention whether the court has
chosen a date for an informative assembly.
CONTACT: Ancel Hermanos S.A.C.I.I.
Juan B Justo 1745
Resistencia, Chaco
Maria Yolanda Aguirre
Remedios de Escalada 232
Resistencia, Chaco
BLANCHEUR: Bankruptcy Decree Starts Reorganization Process
----------------------------------------------------------
Blacheur S.A., which is domiciled in Buenos Aires, undergoes the
bankruptcy process on orders from the city's Court No. 4. Working
with Clerk No. 27, the court ruled that the Company is "Quiebra
Decretada".
Argentine news portal Infobae relates that Fanny Izbizky, an
accountant from Buenos Aires, is assigned as the Company's
receiver. The court gave the creditors until October 31 this year
to present their proofs of claims to the receiver for
verification.
The report adds that the court expects the receiver to have the
individual reports ready on December 15 this year. These reports
are to be prepared after the verification process is competed.
The general report, on the other hand, must be submitted to the
court on March 1 next year.
CONTACT: Fanny Isbizky
Ave. Olazabal 4981
Buenos Aires
CABLEVISION: Pramer Under Fire For Subsidiary Sale
--------------------------------------------------
TV contents producer Pramer, a unit of Liberty Media, was
searched last Friday, as part of a penal cause against Hicks,
Muse, Tate & Furst (HMT&F) and Liberty Media, which are accused
of fraudulent administration in Argentina's cable TV operator
CableVision.
CableVision is owned by HMT&F and Liberty Media. It has US$900
million in liabilities and is in default since 2002.
Pramer is being investigated on the sale of the brand CableVision
to the firm CableVision itself in US$13 million. Liberty Medias
lawyers signed the accord representing CableVision.
CABLEVISION: Moody's Confirms Ratings; Outlook Negative
-------------------------------------------------------
After raising Argentina's foreign currency ratings to Caa1 from
Ca, Moody's Investors Service confirmed its ratings for
Cablevision S.A., the country's largest cable company.
The following ratings were confirmed:
- Senior Implied Rating : Ca
- Senior Unsecured Issuer Rating: Ca
- Global MTN program: Ca
- Global MTN program: NP
- US$725 million aggregate of Senior Unsecured Bonds and Notes:
Ca
The outlook on the ratings is negative.
The ratings are no longer constrained by the sovereign ceiling
and are now pegged entirely to ultimate anticipated recovery
levels for the Company's creditors, Moody's said.
The agency also said that the ratings reflect its expectation of
loss severity for senior unsecured claims of 30% or greater under
an assumed restructuring of the company's balance sheet that
would allow it to continue as a going concern.
The negative outlook reflects the possible impact on operational
cash flow of a lack of pricing power, with a pass through to
rates of less than half of general price inflation (WPI) over the
past 18 months, and weaker pricing and churn levels after a
likely public utility tariff increase, which has not occurred
since the float of the Peso.
CORPORACION PROFESIONALES: Receiver Checks Claims
-------------------------------------------------
Ms. Laura Marletta, receiver for Corporacion Profesionales
Asociados S.A., is verifying creditors' claims for the Company's
bankruptcy. Creditors are must have their claims verified by
November 24 this year, according to a report by local news portal
Infobae.
The Company enters bankruptcy upon orders from Buenos Aires Court
No. 23, which is assisted by the city's Clerk No. 46. The report
said the court announced that the Company is "Quiebra Decretada".
Aside from verifying creditors' claims, the receiver's duties
include the preparation of the individual and general reports on
the bankruptcy proceedings. However, Infobae did not reveal
whether the court has decided on the deadlines for these reports.
CONTACT: Corporacion Profesionales Asociados
Vidal 2048
Buenos Aires
Laura Marletta
San Jose de Calasanz 530
Buenos Aires
CT GLOBAL CORP: Court Assigns Receiver For Bankruptcy
-----------------------------------------------------
Buenos Aires accountant, Mr. Jorge Serrano, is assigned receiver
for C.T. Global Corp. S.A., reports local news source Infobae.
The city's Court No. 6 deemed the Company "Quiebra Decretada",
the report adds.
The court instructed the receiver to verify creditors' claims
until November 27, 2003. This step is done to establish the
existence, nature and amount of the Company's debts.
The receiver is also required to prepare individual and general
reports on the process, where he may express his opinions on the
factors that led to the Company's bankruptcy. However, Infobae
did not reveal whether the court has chosen the deadlines for
these reports.
CONTACT: C.T. Global Corp. S.A.
Suipacha 207
Buenos Aires
Jorge Serrano
Uruguay 662
Buenos Aires
DECUNTO MATERIALES: Claims Authentication Ends Today
----------------------------------------------------
Gustvo Manay, receiver for bankrupt Argentine company Decunto
Materiales S.R.L., closes the verification process today. As
ordered by the court, the receiver will now prepare the
individual reports.
A recent edition of the Troubled Company Reporter - Latin America
indicated that the Company was declared bankrupt after the court
approved a motion filed by the Company's receiver, Mr. Pedro
Gavilan. The Company reportedly failed to meet its obligations on
some US$5,000 it owes to Mr. Gavilan.
In the meantime, local sources did not reveal whether the court
has set the deadlines for the individual and general reports.
CONTACT: Decunto Materiales S.R.L.
Fitz Roy 201
Buenos Aires
Mr. Gustavo Manay
10th Floor 1006
Montevideo Street No. 666
Buenos Aires
DEFENSA Y ENCAUZAMIENTO: Reorganization Process Starts
------------------------------------------------------
The reorganization process for Salta-based company Defensa y
Encauzamiento S.A. starts as the city's Court No. 1 has given its
go signal. Argentine news portal Infobae reports that the
Company's motion for "Concurso Preventivo" has been approved by
the Civil and Commercial Tribunal of Salta.
The report adds that the receiver, Mr. Oscar Enrique Alvarez, is
required to file the individual reports on October 6 this year.
These reports are to be prepared upon completion of the credit
verification process where creditors' claims are examined to
determine the existence, nature and amount of the Company's
debts.
The court also instructed the receiver to prepare a general
report on the process and have it ready by November 18 this year.
However, the source did not mention whether the court has set the
date for an informative assembly.
CONTACT: Defensa y Encauzamiento S.A.
Ave. Monsenor Tevella 1220
Salta City
Oscar Enrique Alvarez
Dean Funes 615
Salta
DIRECTV LA: Motion To Continue Deloitte's Employment As OCP
-----------------------------------------------------------
DirecTV Latin America LLC sought and obtained the Court's
permission to continue the employment of Deloitte & Touche LLP as
an ordinary course professional to perform tax and auditing
services.
On April 14, 2003, the Court authorized the Debtor to employ
Deloitte as an Ordinary Course Professional to audit the DirecTV
Latin America Employee Savings Plan. Deloitte was tasked to work
on the Savings Plan for the year ended December 31, 2001. While
Deloitte has begun working on the 2001 Savings Plan Audit before
the Petition Date, $19,000 worth of work remains incomplete.
The Debtor wants to continue Deloitte's services to audit the
Savings Plan for the year ended December 31, 2002. Joel A.
Waite, Esq., at Young Conway Stargatt & Taylor, LLP, in
Wilmington, Delaware, relates that Deloitte's continued
employment in no way violates the OCP Order since Deloitte will
only be auditing the Plan, not DirecTV's books and records. The
Plan Audits are not related to the Chapter 11 case.
For the 2002 Savings Plan Audit, the Debtor estimate Deloitte's
fees to be $37,000, plus actual expenses for typing, travel and
telecommunication and technology charges, among others. In this
regard, the Debtor is concerned that, since Deloitte is already
performing services, its fees may exceed the fee limits imposed
by the OCP Order. The Order imposes a $25,000 monthly fee cap
and up to a $150,000 cap during the pendency of this Chapter 11
Case for each Ordinary Course Professional. DirecTV cannot pay
more than the cap without further Court order.
However, Judge Walsh rules that any amount the Debtor pays
Deloitte on account of the Savings Plan Audits will not count
against the fee limits imposed by the OCP Order. (DirecTV Latin
America Bankruptcy News, Issue No. 12; Bankruptcy Creditors'
Service, Inc., 609/392-0900)
EDEMSA: French Parent Considers Pullout
--------------------------------------
Electricite de France (EDF), majority shareholder in Mendoza
province-based electricity utility Edemsa, announced it is
evaluating to possibly abandon the concession if the provincial
government does not pay its ARS35 million debt to the company.
With an annual billing of ARS150 million, the debt became an
unbearable burden for EDF, especially because the French holding
decided not to make any capital injection to back Edemsas
operation.
Nevertheless, no investor has expressed interest in the
concession.
EDF holds a 45% stake in a group that owns 51% of the shares of
Edemsa. The other owners are SAUR, from France, with 6% and the
government of Mendoza, with 39%.
LAMITECNICA: Creditors' Proofs of Claim Required
------------------------------------------------
Creditors of Lomas de Zamora-based Lamitecnica S.A. are required
to present their proofs of claim to the Company's receiver for
verification. A report from Infobae relates that the court-
designated receiver, Ms. Patricia Monica Narduzzi, will verify
claims until October 2 this year.
The receiver's duties include the preparation of the individual
and general reports on the Company's bankruptcy. According to
Infobae, these reports should be filed at the court on December
2, 2003 and February 19, 2004, respectively.
The Civil and Commercial Tribunal of Lomas de Zamora handles the
Company's case. The province's Court No. 4 released the
bankruptcy order.
CONTACT: Lamitecnica S.A.
Liniers 271
Lanus, Lomas de Zamora
Patricia Monica Narduzzi
Rodriguez Pena 296
Banfield, Lomas de Zamora
LAS RUEDAS: Enters Bankruptcy On Court Order
--------------------------------------------
As ordered by Buenos Aires Court No. 11, Las Ruedas S.A.,
undergoes the bankruptcy process. A report by local news source
Infobae relates that the receiver, Mr. Jose Luis Rodas, is
verifying creditors' claims until October 21, 2003.
Working with Clerk No. 22, the court ordered the receiver to
prepare the individual reports after the verification process is
completed. These reports must be filed at court on December 2
this year. The general report, which must be prepared after the
individual reports are processed at court, must be submitted to
the court on February 16 next year.
CONTACT: Jose Luis Rodas
L N Alem 619
Buenos Aires
MARIA DE BUENOS AIRES: Court Sets Deadlines For Reports
-------------------------------------------------------
Buenos Aires Court No. 19 has set the deadlines for the
receiver's reports regarding the bankruptcy of Maria de Buenos
Aires S.A., relates Infobae. The individual and general report
must be passed to the court on November 14 and December 30,
respectively.
A recent report by the Troubled Company Reporter - Latin America
revealed that the Company was deemed "Quiebra Decretada" by the
court. Verification of credit claims is slated end on October 3
this year.
The Company's receiver is local accountant Eduardo Aguinaga.
CONTACT: Maria de Buenos Aires S.A.
Reconquista 1011
Buenos Aires
Eduardo Aguinaga
Maipu 374
Buenos Aires
MULTICANAL: APE Settlement Request Denied
-----------------------------------------
Judge Fernando Ottolenghi, who oversees the restructuring
proceeding of Argentine cable TV operator Multicanal -a unit of
local media holding Clarin- has disallowed Multicanal's request
to open an out-of-court agreement (APE) and told the Company to
call the fiduciary agent in charge of the notes to take part as
representative of bondholders.
Multicanal decided to initiate the judicial proceedings for the
approval of the APE, which is part of its debt restructuring
strategy, without the previous consent from the holders of its
bonds. The Company tried to fill in this hole by asking the court
to call for a bondholders meeting to determine whether the APE
enjoys the support of the required majority of the existing notes
issued by the Company.
However, Argentina's Bankruptcy Law establishes only a process
for the judicial approval of an APE, once there is agreement
between a debtor and its creditors and all the legal requirements
are fulfilled.
In February 2003, Multicanal announced a proposal to refinance a
US$524-million debt through an APE. The proposal is directed to
holders of its 9.25% notes due 2002, 10.5% notes due 2007,
13.125% Series E notes due 2009, Series C 10.5% notes due 2018
and Series J floating rate notes due 2003, and other financial
indebtedness, and consists of three alternatives.
Firstly, a cash tender offer in which the Company offered to
purchase for cash US$100 million (and later US$ 131 million) of
its debt at a price of US$300 per US$1,000 aggregate principal
amount of debt tendered for purchase.
Secondly, a new 10-year step-up par-bond. In its latest
amendment, Multicanal offered to pay US$1,050 per US$1,000
principal amount of debt tendered for purchase. The maximum
amount allocated for this option is US$76.5 million.
Thirdly, Multicanal offered to exchange notes for a mix of new
bonds with a certain write-off and lower interest rates, and
shares of the firm. It offered to pay a price of US$ 440 per US$
1,000 aggregate principal amount of debt plus 641 of the
Company's class C shares of common stock. It is disposed to
transfer up to 35% of the Company's shares to those creditors
that choose this alternative and set a capital of US$324.9
million on the aggregate amount of debt that may elect the
combined option.
The firm made it clear it will not pay any accrued and unpaid
interest (including default interest and additional amounts, if
any) on the debt that is tendered for purchase.
Up to July 25, Multicanal's proposal had been accepted by
approximately 45% of its creditors, percentage that is not enough
to obtain court approval.
REFRIGERACION TECNOLOGICA: Court OK's Reorganization
----------------------------------------------------
Buenos Aires' Court No. 26 granted permission to local company
Refrigeracion Tecnologica S.A. to undergo reorganization, relates
local news source Infobae. An earlier report by the Troubled
Company Reporter - Latin America revealed that the Company
submitted a motion for "Concurso Preventivo" to Court No. 21.
The court designated Mr. Natalio Kinsbruner as the Company's
receiver. He is instructed to verify creditors' claims until
October 28 this year, says Infobae without revealing whether the
court has set the deadlines for the individual and general
reports.
Local newspaper El Cronista Comercial earlier said that the
Company has stopped making debt payments since December 20 last
year.
CONTACT: Refrigeracion Tecnologica S.A.
Ave. Gaona 1295
Buenos Aires
Natalio Kinsbruner
Marcelo T. de Alvear 1671
Buenos Aires
SERVINTSA: Reorganization Into Bankruptcy Process
-------------------------------------------------
Servintsa S.A., which was undergoing reorganization, is declared
bankrupt by Buenos Aires' Court No. 25, according to local news
source Infobae. Assisted by Clerk No. 50, the court assigned Mr.
Victor Roberto Bellaria as the Company's receiver, who is to
verify creditors' claims until October 20 this year.
Upon completion of the verification process, the receiver will
prepare the individual reports and submit them to the court on
December 2 this year. A general report must be passed on February
18 the following year.
CONTACT: Victor Roberto Bellaria
Uruguay 660
Buenos Aires
SIETE ASES: Submits Preventative Aid Motion To Court
----------------------------------------------------
Buenos Aires-based Siete Ases S.A. submitted a motion for
"Concurso Preventivo" to the city's Court No. 19, reports
Infobae. If the motion is approved, the Company may then undergo
reorganization. However, the source did not reveal whether the
court, which is assisted by the city's Clerk No. 38, is likely to
grant the petition or not.
CONTACT: Siete Ases S.A.
Ave. Rivadavia 1157
Buenos Aires
TALLERES INDUSMAR: Seeks Permission To Undergo Reorganization
-------------------------------------------------------------
Buenos Aires-based company Talleres Indusmar S.A. is seeking
court permission to undergo reorganization. Argentine news portal
Infobae relates that the Company has submitted its motion for
"Concurso Preventivo" to the city's Court No. 11. Clerk No. 22
aids the court on the case, the report adds.
CONTACT: Talleres Indusmar S.A.
Necochea 743
Buenos Aires
TEXTIL PUNILLA: Reorganization Proceeds To Bankruptcy
-----------------------------------------------------
Textil Punilla S.A., a Buenos Aires-based company that was
undergoing reorganization, was declared bankrupt. Argentine news
portal Infobae relates that the city's Court No. 14 ruled that
the Company is "Quiebra Decretada".
The report adds that verification of credit claims will be done
"por via incidental". The receiver assigned to the case is Etkin
& Ferdman, also based in Buenos Aires.
The court also ordered the receiver to prepare individual reports
after the verification process is completed, and have them ready
by December 19 this year. The court also expects a general report
on the bankruptcy process to be filed on March 5, 2004.
CONTACT: Etkin & Ferdman
Lavalle 2016
Buenos Aires
TGS: Extends LPG Deal With Petrobras Till 2006
-----------------------------------------------
Argentine gas transporter TGS will continue to supply Brazil's
state energy company Petrobras with liquefied petroleum gas (LPG)
through August 2006, says Business News Americas. The news comes
after the TGS board approved to extend the agreement, which
expired on September 1.
According to a source from TGS, the Company has sold LPG to
Petrobras since 1993. Annual sales to Petrobras vary between
90,000-150,000t, depending on TGS' production and domestic
demand.
Since the devaluation of Argentina's peso in January 2002,
domestic LPG demand in Argentina has fallen to 850,000t/y from 1
million t/y, the source said, adding that with domestic gas
prices frozen at their January 2002 level, TGS has a greater
incentive to export LPG and receive dollar income.
At a projected average price of US$250/t, TGS stands to make
about US$75 million from exports to Brazil during the period
2003-2006.
CONTACT: Transportadora de Gas del Sur SA
5th Floor
3672 Don Bosco
Buenos Aires
Argentina
Phone: +54 11 4865 9050
Home Page: http://www.tgs.com.ar
Contacts:
Rafael Fernandez Morande, Chairman
Eduardo Ojea Quintana, Vice Chairman & General Manager
TOUT ALBERDI: Receiver Verifies Claims For Bankruptcy
-----------------------------------------------------
Hugo Edgardo Borgert, receiver for Buenos Aires company Tout
Alberdi S.R.L., is verifying creditors' claims for the Company
bankruptcy until November 3 this year.
The city's Court No. 24, which holds jurisdiction over the
Company's case ordered the receiver to prepare the individual
reports after the verification process is completed. These
reports must be filed at the court on December 16, 2003.
The court also expects the receiver to prepare a general report
on the process and have it filed on February 27 next year.
CONTACT: Hugo Edgardo Borgert
Presidente Peron 853
Buenos Aires
===============
B A R B A D O S
===============
C&W BARBADOS: Says Ceded License Came Without Monetary Demands
--------------------------------------------------------------
The Barbados office of Cable & Wireless (C&W) said it did not ask
compensation from the Government when it agreed to gave up its
exclusive license. The Barbados Nation relates that Glenda
Medford, C&W's vice-president (Legal, Regulatory and Public
Policy), said when the Company signed a memorandum of
understanding (MOU) in 2001 to give up its exclusive license,
which would have expired in 2011, it did not seek compensation
from Government.
Medford, who along with a top team of C&W executives, including
Tricia Watson, regulatory advisor; Claire Downes-Haynes, manager
of regulatory affairs, and president Donald Austin, said the MOU
was subject to certain activities.
These included an agreed transition timetable, proclamation of a
new Telecommunications Act, issuance to C&W of new licenses
agreed by C&W and Government and implementation of a regulatory
mechanism to allow prices to move toward cost-first, an interim
pricing mechanism and then price cap.
On the other hand, C&W agreed to develop a cost allocation model
for review by the regulator. In addition, it agreed to file an
application to move cost-oriented pricing, providing customers
with options including a flat rate.
Now top officials of C&W are anxious to find out just how much
money it will cost the Company to have its rate application heard
before the FTC, starting next month.
===========
B R A Z I L
===========
AES CORP: BNDES Wants to Block Share Seizure Process
----------------------------------------------------
Brazil's development bank BNDES has asked a state court to
suspend the seizure of shares AES Corp. owns in two of its
Brazilian subsidiaries so that a debt-restructuring agreement
with the U.S. power group can proceed, a BNDES spokesman said
Thursday.
In late May, creditors of broadband services provider Eletronet
SA filed for the seizure of AES-owned shares in AES Tiete,
Eletropaulo Metropolitana AESs most important assets in Brazil -
and in Companhia Energetica de Minas Gerais, or Cemig, in which
AES holds a minority stake. AES owns Eletronet, but allowed the
company to default on several payments earlier this year, leading
it to bankruptcy
Eletronet's creditors filed for the stock seizure through the
Company's bankruptcy administrator, hoping to get around BRL550
million (US$ 189.65 million) of their cash back.
At the time, the decision by a Rio de Janeiro state court judge
granted the seizure of about BRL550 million in common and
preferred stocks in the companies to make up for the same amount
of Eletronet's debt.
Although AES was expelled from Eletronet's board, the U.S. power
group wasn't free of Eletronet's financial obligations.
Now that AES has reached an agreement to reschedule its US$1.2
billion debt with the BNDES, all its assets here must be free of
legal hurdles before the deal can be closed.
Originally, BNDES wanted AES to resolve the issue. But as AES is
considered responsible for losses to Eletronet's creditors, it
cannot negotiate a settlement in court, the bank said.
So BNDES is proposing that Eletronet's creditors accept
government bonds in the amount of the debt instead of the seized
shares.
Creditors have until Friday to communicate to the judge their
opinion on the bond proposal.
Eletronet owes nearly 90% of its debt to suppliers Lucent
Technologies Inc. and Furukawa Cabos de Energia, a unit of Japans
Furukawa Electric Co.
On Monday, AES agreed with BNDES on a preliminary plan to
restructure the power groups US$ 1.2 billion debt through the
creation of a joint venture to run AES's Brazilian assets.
The accord creates a new company, called Novacom, that will hold
AESinterests in its units here: Eletropaulo, gas-powered
thermoelectric plant AES Uruguaiana and hydroelectric generator
AES Tiete, considered the healthiest AES asset here.
Novacom will be 50.1% owned by AES and 49.9% owned by BNDES.
About 50%, or US$ 600 million of the outstanding AES debt, will
be converted into equity in the new company. Another US$ 515
million will be payable over 10 to 12 years. AES will also
contribute US$ 85 million as part of the restructuring, with US$
60 million of that paid at closing and US$ 25 million paid after
closing.
===================================
D O M I N I C A N R E P U B L I C
===================================
BANINTER: Baez Defense Panel Calls For Investigation Into Fire
--------------------------------------------------------------
Lawyers representing former Baninter president, Ram¢n B ez
Figueroa, are now calling for the government to conduct an
investigation into the fire that occurred Friday morning on the
fifth floor of the offices of the bank's headquarters, reports
DR1 Daily News.
The fifth floor is where all the bank records are being kept.
Computers were reportedly damaged, the report reveals.
Lawyer Marino Vinicio (Vincho) Castillo demanded a full
investigation on the fire that occurred right at the moment when
they are presenting documents showing how the PPH faction of the
PRD has received Baninter financing.
===============
H O N D U R A S
===============
AES CORP.: Loses Power Generation Contract in Honduras
------------------------------------------------------
The Honduran government cancelled a 12-year power-generation
contract it awarded to U.S.-based power plant developer AES
Corp., EFE reports, citing Angelo Botazzi, manager of state-owned
Empresa Nacional de Energia Electrica (ENEE).
The cancellation, which happened Friday during a Cabinet meeting
headed by President Ricardo Maduro, was due to the US company's
failure to meet its contractual obligations.
Now, Honduras is planning to auction off the contract to another
firm.
In December 2002, the Honduran government awarded power producer
ENALUF a franchise to generate 220 megawatts in December 2002.
But the government retracted the contract out of concern that the
losing companies would take legal action.
The Honduran government was forced to purchase 420 megawatts of
power in late 2002 to meet growing demand, which exceeds 700
megawatts, in a deal that, in the views of many analysts,
benefited AES unfairly.
Moreover, environmental groups resisted the AES deal on concern
about the safety of the Company's facilities in the Caribbean.
===========
M E X I C O
===========
GRUPO IUSACELL: Bondholders Send Official Default Notice
--------------------------------------------------------
Grupo Iusacell, S.A. de C.V. ("Iusacell" or the "Company") [BMV:
CEL, NYSE: CEL] ("Iusacell" or the "Company") announced Friday
that on September 11, 2003, its main subsidiary, Grupo Iusacell
Celular, S.A. de C.V. (Iusacell Celular) received a notice of
default and acceleration (the "Notice") from a U.S. law firm
representing an informal committee of beneficial owners of
approximately US$77 million in aggregate principal amount,
representing 51.3% of the total amount outstanding, of Iusacell
Celular's 10% Senior Secured Notes due 2004 (the "2004 Notes").
The notice of default arises from Iusacell Celular's failure to
make an interest payment on the 2004 Notes in the amount of
US$7.5 million due on July 15, 2003. Pursuant to the Notice, the
bondholders declared the entire unpaid principal balance of
US$150 million and all accrued and unpaid interest, including
defaulted interest, to be accelerated and immediately due and
payable, pursuant to the Indenture governing the 2004 Notes.
The group of bondholders expressed their goal to establish a
constructive dialogue with the new management team of the Company
and of Iusacell Celular aimed to a fair outcome of a
restructuring process for all stakeholders. The Company
reiterated its intention to maintain the dialogue with all its
creditors, including Iusacell Celular's 2004 Notes holders.
About Iusacell
Grupo Iusacell, S.A. de C.V. (Iusacell, NYSE: CEL; BMV: CEL) is a
wireless cellular and PCS service provider in seven of Mexico's
nine regions, including Mexico City, Guadalajara, Monterrey,
Tijuana, Acapulco, Puebla, Leon and Merida. The Company's
service regions encompass a total of approximately 92 million
POPs, representing approximately 90% of the country's total
population.
GRUPO MEXICO: To Issue New Shares Pending Shareholder Approval
--------------------------------------------------------------
Mexican copper miner Grupo Mexico, the world's third-largest
copper producer, plans to issue some 213 million new shares in
order to raise about US$250 million to help fund operations and
pay off debt.
In a statement distributed by the Mexican Stock Exchange, Grupo
Mexico said it would propose the issue to shareholders at a
meeting on Sept. 30. If the plan is approved, shareholders will
be able to buy one share at a price of MXN13 for every three they
already own.
Friday's announcement pushed Grupo Mexico shares down 9.9% to
MXN15 per share in late morning trading, a drop that some
analysts called a knee-jerk reaction to the new share issue.
"It's a source of some concern," said Rodolfo Navarrete, who
helps manage US$100 million in Mexican stocks and bonds with Casa
de Bolsa Vector SA in Mexico City and sold the last of his Grupo
Mexico shares several days ago. Investors "may be a bit bothered
by this."
Grupo Mexico, burdened by the financing of its 1999 purchase of
metals maker Asarco Inc., defaulted on more than US$1.3 billion
of debt in the past two years after copper prices fell to record
lows. The Mexico City-based company has since persuaded dozens of
banks, hundreds of bondholders and the U.S. State Department to
stretch out payments as it struggles to return to profit.
Shareholders, however, did not know they would be asked to inject
more capital, according to Navarrete.
The Company had a net loss of US$3.6 million in the second
quarter, compared with a profit of US$65 million in the same
period last year, according to U.S. GAAP accounting. Grupo
Mexico's sales slipped 10% to US$591 million from US$654 million.
CONTACT: GRUPO MEXICO S.A. DE C.V.
Avenida Baja California 200,
Colonia Roma Sur
06760 Mexico, D.F., Mexico
Phone: +52-55-5264-7775
Fax: +52-55-5264-7769
Home Page: http://www.gmexico.com
Contacts:
Germ n Larrea Mota-Velasco, Chairman and CEO
Xavier Garca de Quevedo Topete, President and COO
Alfredo Casar P,rez, COO, Ferrocarril Mexicano
Daniel Ch vez Carre>n, COO, Industrial Minera M,xico
Daniel Tellechea Salido, VP and Administration and
Finance President
LFC: Announces Power Losses Reduction Program
---------------------------------------------
Mario Barreiro Pereda, vice-director of executive planning at
Mexico's state-owned distributor Luz y Fuerza del Centro (LFC),
revealed a MXN7.2-billion (US$658 million) investment aimed at
cutting power losses, relates Business News Americas.
The program, which will run from 2003 through 2006, will expand
LFC's meter network, beef up inspection methods, streamline
customer service practices and restructure electric feeders.
Local newspaper El Economista suggests that the investment will
cut technical and non-technical losses by 17% and will save the
Company an estimated MXN 8 billion.
PEMEX: Signs Crude Oil Processing Deal With 7 US Refineries
-----------------------------------------------------------
Petr¢leos Mexicanos (Pemex) last month signed either strategic
alliances or long-term joint investments with seven U.S.
refineries for the processing of 702 million barrels of Maya
heavy crude oil, says South American Business Information.
This oil is worth US$16.9 million per day, not to mention the
cost that the refineries will charge for processing.
According to Eduardo Mart¡nez del R¡o Petricioli, the director of
Pemex subsidiary PMI Comercio Internacional, which is responsible
for sales of crude oil and derivatives, the contracts were signed
with Port Arthur Coker Company (previously Clark Refining and
Marketing Inc.); Coastal Aruba Refining Company N.V.; Pecten
Trading Company; Exxon Company USA; Marathon Ashland Supply LLC;
Chevron Products Company.
Despite its unprofitable experience on its association with the
refinery Deer Park Refining Limited Partnership of Houston,
Texas, Pemex insists on the need to process oil outside the
country.
The 702 million barrels per day are equivalent to 30% of daily
oil production and at the current prices are worth US$6.20
billion per year, says the report.
===============
P A R A G U A Y
===============
ANDE: Profits Projected By Year-End
-----------------------------------
Paraguay's state power company Ande managed a sharp turnaround in
its financial situation, reports newspaper La Nacion. Company CFO
Pedro Ferreira said that Ande, which has been losing money for
years, and posted US$119 million losses in 2002, expects to end
2003 with a US$15-million cash flow surplus. The Company is
negotiating pre-payments to creditors with a view to securing a
discount, the executive added.
The Company's creditors include the Itaipu hydro plant, the
Inter-American Development Bank (IDB), the Japan Bank for
International Cooperation (JBIC), and German development bank
KfW.
According to Ferreira, Ande has bought US$2.8 million in
Paraguayan treasury bonds so far this year and may use the
surplus to buy more. The Company is also considering other
investments that could yield a profit.
Financial obligations through year-end are US$7 million, which
the Company will have no problem meeting, he said.
Ande posted a US$35-million profit in the first quarter 2003, and
is now saving US$3 million a month by implementing administrative
changes costing just half that amount.
=====================
P U E R T O R I C O
=====================
CENTENNIAL COMMUNICATIONS: 1Q03 Results Show Flat Results
---------------------------------------------------------
Centennial Communications Corp. (the "Company") (Nasdaq: CYCL)
announced Friday results for the quarter ended August 31, 2003.
Consolidated revenues grew 6% from the same quarter last year to
$203.6 million. Net loss was $0.2 million for the first quarter
as compared to a net loss of $0.2 million for the same quarter
last year. Adjusted operating income (previously referred to as
"adjusted EBITDA") was $83.4 million, a 10% increase from the
same quarter last year. Adjusted operating income is net income
(loss) before interest, taxes, depreciation, amortization, loss
(gain) on disposition of assets, minority interest in (income)
loss of subsidiaries and income from equity investments. Please
refer to Exhibit A -- "Non-GAAP Financial Measures."
During the quarter ended August 31, 2003, the Company announced:
The sale in June 2003 of $500 million of 10 1/8% senior unsecured
notes due 2013 in a private placement transaction. In connection
with the sale of notes, the Company amended its senior credit
facility, which provides the Company with additional flexibility
under the financial and other covenants in the senior credit
facility. Net proceeds from the sale of notes were used to
permanently repay $300 million of term loans under the senior
credit facility, increase the Company's liquidity and pay fees
and expenses related to the transaction.
The promotion of John de Armas to president, Caribbean
operations. Mr. de Armas joined the Company in February 2002 as
president, Centennial Dominicana and was promoted to executive
vice president, Caribbean operations in October 2002. Previously,
Mr. de Armas was president of Home Shopping Espanol, a division
of Home Shopping Network, where he developed and launched markets
in Puerto Rico, Mexico and the top 20 Hispanic markets in the
U.S., reaching an audience of over 40 million Hispanics.
The selection of Nortel Networks to supply a third generation
(3G) wireless data network for the Company's Dominican Republic
operations, Centennial Dominicana. The 3G network is expected to
be fully operational by the end of calendar 2003 and will
significantly increase capacity and delivery of wireless voice
and data services throughout the country.
The Company's wireless subscribers at August 31, 2003 were
971,500, compared to 883,800 on the same date last year, an
increase of 10%. Sequentially, U.S. Wireless subscribers
increased 8,000 during the quarter, aided by national rate plans
that were introduced in late fiscal 2003. Sequentially, Caribbean
Wireless subscribers increased 24,000 during the quarter, due
primarily to strong growth of postpaid subscribers in both Puerto
Rico and Dominican Republic. Caribbean Broadband switched access
lines reached 43,800 and dedicated access line equivalents were
188,100 at August 31, 2003, up 22% and 14%, respectively, from
August 31, 2002. Cable television subscribers were 76,100 at
August 31, 2003, down 7,200 from the same quarter last year.
"We are very pleased with the significant year-over-year
improvement in financial performance. Targeting the most
profitable customers with superior service was the critical
driver of this growth," said Michael J. Small, chief executive
officer.
For the quarter, U.S. Wireless revenues were $94.4 million and
U.S. Wireless adjusted operating income was $39.5 million. U.S.
Wireless adjusted operating income decreased by 12% from the same
quarter last year primarily due to significantly reduced roaming
revenue. Retail revenue per subscriber increased to $47 from $42
in the prior year, primarily due to the introduction of national
rate plans. The Company expects its GSM network overlay project
to be on schedule and expects to launch GSM service in its
Midwest cluster by the end of calendar year 2003 and in its
Southeast cluster by the end of calendar year 2004.
For the quarter, total Caribbean (consisting of the Caribbean
Wireless and Caribbean Broadband segments) revenues were $109.2
million and total Caribbean adjusted operating income was $43.8
million. Total Caribbean adjusted operating income for the
quarter was up 43% from the same quarter last year. Caribbean
Wireless revenues for the quarter reached $74.3 million, an
increase of 14% from the same quarter last year. Caribbean
Wireless adjusted operating income for the quarter was $31.8
million, an increase of 52% from the same quarter last year.
Caribbean Broadband revenues for the quarter were $38.4 million
and Caribbean Broadband adjusted operating income reached $12.0
million, up 8% and 23% from the same quarter last year,
respectively.
Consolidated capital expenditures for the quarter ended August
31, 2003 were $26.3 million or 13% of revenue. Net debt at August
31, 2003 was $1,698.1 million as compared to $1,724.5 million at
August 31, 2002.
Fiscal 2004 Outlook
The Company reaffirms its prior guidance of total adjusted
operating income growth of 5-10% for fiscal 2004, as compared to
$295.7 million in fiscal 2003, despite a projected reduction of
approximately $20 million in U.S. Wireless roaming revenue in
fiscal 2004 as compared to fiscal 2003. The Company projects
fiscal 2004 adjusted operating income for its Caribbean
businesses, comprised of Caribbean Wireless and Caribbean
Broadband, to exceed fiscal 2003's adjusted operating income of
$135.3 million by a minimum of 15%. The Company expects that the
rates of growth in the two Caribbean segments will be relatively
comparable. The Company reaffirms its prior guidance of capital
expenditures of approximately $125 million in fiscal 2004. The
Company has not included a reconciliation of projected adjusted
operating income since projections for some components of such
reconciliation are not possible to project at this time.
In addition to the financial results determined in accordance
with Generally Accepted Accounting Principles ("GAAP"), this
press release contains a non-GAAP financial measure, adjusted
operating income. This non-GAAP financial measure should be
considered in addition to, but not as a substitute for, the
information prepared in accordance with GAAP. Reconciliations of
this non-GAAP financial measure to comparable GAAP measures are
provided in Exhibit A to this press release.
About Centennial
Centennial is one of the largest independent wireless
telecommunications service providers in the United States and the
Caribbean with approximately 17.3 million Net Pops and
approximately 971,500 wireless subscribers. Centennial's U.S.
operations have approximately 6.1 million Net Pops in small
cities and rural areas. Centennial's Caribbean integrated
communications operation owns and operates wireless licenses for
approximately 11.2 million Net Pops in Puerto Rico, the Dominican
Republic and the U.S. Virgin Islands, and provides voice, data,
video and Internet services on broadband networks in the region.
Welsh, Carson, Anderson & Stowe and an affiliate of the
Blackstone Group are controlling shareholders of Centennial. For
more information regarding Centennial, please visit our websites
at www.centennialwireless.com, www.centennialpr.com and
www.centennialrd.com.
To see financial statements:
http://bankrupt.com/misc/CENTENNIAL_COMMUNICATIONS.htm
CONTACT: CENTENNIAL COMMUNICATIONS CORP.
Thomas J. Fitzpatrick
732-556-2220
=================================
T R I N I D A D & T O B A G O
=================================
BWIA: Association Slams Request For Caribbean Star's Removal
------------------------------------------------------------
The Tobago Hotel Association slammed BWIA and Tobago Express move
to ask the Air Transport Licensing Authority (ATLA) to remove
Caribbean Star from the Tobago airbridge, the Trinidad Guardian
reports.
"Our association is completely appalled and disappointed these
carriers have the audacity to challenge a carrier like Caribbean
Star, that has asked for no concessions even though we would not
be opposed to them getting a subsidy," association president,
Seepersadsingh, said.
According to him, unlike Tobago Express, Caribbean Star has an
international reservation system.
Both local airlines, which are receiving a $100-per-ticket
subsidy from the Government for operating the airbridge, have
asserted Caribbean Star, as a foreign carrier, should not be
operating on a domestic route.
At the same time, Tobago House of Assembly Tourism Secretary Neil
Wilson, the chairman of the Cabinet-appointed airlift committee,
which lobbied to get Caribbean Star on the airbridge, also did
not see the need for Caribbean Star's removal from the airbridge.
ATLA will be meeting with BWIA and Tobago Express to hear the
petition against Antigua-based Caribbean Star later this month.
CONTACT: British West Indies Airways
Phone: + 868 627 2942
E-mail: mailto:mail@bwee.com
Home Page: http://www.bwee.com/
=================
V E N E Z U E L A
=================
CANTV: CADIVI Okays Payment of Remaining Debt Obligations
---------------------------------------------------------
Compania Anonima Nacional Telefonos de Venezuela announced Friday
that it has received approval from the Government's Committee for
the Administration of Foreign Currency (CADIVI) to acquire US$4.6
million to make the interest payment on its US$100 million Yankee
Bonds due in 2004 and US$0.6 million to make the interest payment
on the International Finance Corporation US$25 million loan due
in 2005. The Company also received approval for the conversion of
bolivars to US dollars in the amount of US$15.4 million for the
payment of dividends to ADR investors made in April of 2003.
Payments will be made early next week.
The interest payment on the Yankee Bonds became due at the
beginning of August 2003 and its 30-day grace period expired last
week. The interest payment on the International Finance
Corporation loan is due on September 15, 2003. These approvals
reflect the Company's view that working closely with CADIVI
yields satisfactory results within a reasonable time frame once
the Committee's requirements are met.
CONTACT: Gustavo Antonetti, CANTV Investor Relations
Tel: 011-58-212-500-1831
Fax: 011-58-212-500-1828
Email: invest@cantv.com.ve
Mariana Crespo, THE GLOBAL CONSULTING GROUP
646-284-9407
Email: mcrespo@hfgcg.com
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
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Copyright 2003. All rights reserved. ISSN 1529-2746.
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