/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/031008.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, October 8, 2003, Vol. 4, Issue 199 Headlines A R G E N T I N A AEROLINEAS ARGENTINAS: To Appeal Government Decision AHOLD: Publishes Financial Reporting Schedule AT&T LATIN AMERICA: Impsat to Participate in Auction CENTRAL COSTANERA: Endesa Boosts Stake CHASQUI: Credit Check Closes Today CHGI: Credit Check For Bankruptcy Due To Close Today CRESER CREDITO Y SERVICIO: Court Orders Bankruptcy DICAM: Court Approves Creditors' Request For Bankruptcy FANTASTICO PRODUCCIONES: Court Sets Reorganization Schedule LA ELENA: Court Approves Reorganization Petition MESAGLIO HERMANOS: Enters Bankruptcy On Court Orders MICROFORMAS: Court Chooses Receiver For Bankruptcy MORDISCO: Receiver Prepares Individual Reports OSTRILION: Files Reorganization Petition at Court PLAN MEDICO: Court Sets Bankruptcy Proceedings' Schedule PRODUCTOS DAPAF: Credit Verification Process Ends November 28 SANCAYET: Receiver Closes Authentication Period Today SIRESA: Credit Check For Reorganization Ends Today SIRMET: Receiver For Bankruptcy Process Chosen B O L I V I A * IMF Completes Second Review of Bolivia's Stand-By Arrangement B R A Z I L EMBRATEL: Installs New Router In Acre ENRON: Gas Natural SDG In Talks To Buy Brazilian Stakes IMCO RECYCLING: Completes Refinancing C H I L E ENAMI: Board Restructuring Suffers Setback D O M I N I C A N R E P U B L I C S&P Cuts Dominican Republic's Rating Once Again M E X I C O GRUPO IMSA: Unlikely To Meet Sales Target For This Year MAXCOM TELECOMUNICACIONES: Names Jose Antonio Solbes CFO NII HOLDINGS: Names Charles Herington to Board of Directors SATMEX: Projects International Business Will Prove Profitable UNEFON: TV AZTECA BoD Approves Split Off of Investment VITRO: Hunton & Williams Represents Phoenix in Acquisition U R U G U A Y MANZANARES: Owners Try To Beat Deadline Given By Creditors - - - - - - - - ================= A R G E N T I N A ================= AEROLINEAS ARGENTINAS: To Appeal Government Decision ---------------------------------------------------- Aerolineas Argentinas, Argentina's flagship airline owned by Spain's Marsans group, will appeal a decision by the government not to grant it approval to operate three weekly flights to Mexico. According to the government, permission to operate the five available flights has already been granted to another Argentine airline, Southern Winds (SW), although the airline does not operate them. AHOLD: Publishes Financial Reporting Schedule --------------------------------------------- Ahold published Monday its financial reporting schedule for the remainder of calendar year 2003. To provide for quality and completeness of disclosure, the company has reviewed its entire schedule for the rest of the year and developed a timetable that it believes can accommodate the volume of work required to complete its regulatory and statutory filings. Hannu Ry”pp”nen, Chief Financial Officer said: `Resources at Ahold were stretched to the limit to provide shareholders with the 2002 financial results. Preparing the next sets of financial data will require sufficient time to ensure that they are completed with the degree of thoroughness and precision expected by shareholders. We recognize that some of the dates may differ from those suggested at the presentation of our 2002 results on October 2, 2003. However, the timetable we've proposed is both reasonable and achievable, and in the interests of all our shareholders.' Ahold upcoming financial events: 2003 Date* Event Summary October 15 20-F: Filing with the SEC and publication October 28 Trading Update: 3Q 2003 sales October 31 Annual Report: 2002 annual report published November 7 Earnings Statement: Half-year results and strategy statement November 26 AGM: Annual general meeting of shareholders November 26 Earnings Statement: Q3 2003 results January 9, 2004 Trading Update: Q4 2003 sales * Please note that the financial reporting dates are provisional and subject to change at Ahold's discretion, as they may be influenced by factors beyond the company's ability to control. AT&T LATIN AMERICA: Impsat to Participate in Auction ---------------------------------------------------- After completing a due diligence study on AT&T Latin America (ATTL), the Brazilian unit of Argentine telecom operator Impsat Fiber Networks announced it will join in the race for the bankrupt operator, relates Brazilian newspaper Valor Economico. According to Impsat Brazil general manager C‚lio Fernando Bozola, ATTL would strengthen Impsat's existing regional network. The Florida court handling ATTL's bankruptcy proceedings is organizing the auction, which is scheduled for the end of this month. Early last month, AT&T Corp accepted a proposal from Brazilian telecom operator Embratel to buy ATTL. The proposal will be used as the basis for the auction. Other possible bidders include Spain's Telefonica with Chile's GTD Teleductos, Brazil's GVT, Chile's Chilesat, and US' Comsat in partnership with Atrium, according to Telecom Urgente. CONTACT: AT&T Latin America Corp. Cesar Amaro Phone: 011-562-241-4818 Email: cesar.amaro@attla.com or Catherine Castro Phone: +1-202-689-6336 Email: catherine.castro@attla.com CENTRAL COSTANERA: Endesa Boosts Stake -------------------------------------- Argentine thermoelectric generator Central Costanera informed the Buenos Aires stock market Monday that Chilean power generator Endesa has increased its stake in the Company. Citing the filing, Business News Americas reports that Endesa boosted its stake in Central Costanera to 63.9% after it bought 12.3% from El Paso Energy International. Endesa paid El Paso Energy International's Bermuda-based KLT Power subsidiary US$4.5 million for 16.2 million class A shares and 1.96 million class B shares, the filing said. According to an Endesa source, Costanera's rules obliged El Paso Energy International to offer the shares to the generator's existing shareholders first, and Endesa decided it was a "good opportunity" to increase its stake. Endesa formerly controlled about 60% of Central Costanera. CHASQUI: Credit Check Closes Today ---------------------------------- The bankruptcy of Chasqui S.A. proceeds with preparation of the individual reports. An earlier report by the Troubled Company Reporter - Latin America revealed that the deadline for the credit verification process expires today. The Company's receiver, Mr. Sergio Omar Barragan, is required to file the individual reports at the court on November 19 this year. He will also prepare the general report after these reports are processed at court. The general report is due for submission on February 23 next year. Buenos Aires' Court No. 11 and Clerk No. 21 are handling the Company's case. CONTACT: Sergio Omar Barragan Rivadavia 666 Buenos Aires CHGI: Credit Check For Bankruptcy Due To Close Today ---------------------------------------------------- Creditors of Compania Hotelera Gastronomica Iberoamericana S.A. must have their claims authenticated by the Company's receiver as the deadline for the verification period for the Company's bankruptcy expires today. The Troubled Company Reporter - Latin America earlier reported that the receiver, Mr. Lajbisz Barg, will prepare the individual reports after the credit verifications are completed. However, local sources did not mention the deadlines for the filing of the receiver's reports. Buenos Aires' Court No. 1 issued the bankruptcy order. CONTACT: Lajbisz Barg Paraguay 2630 Buenos Aires CRESER CREDITO Y SERVICIO: Court Orders Bankruptcy -------------------------------------------------- Court No. 22 of Buenos Aires orders the bankruptcy of Creser Credito y Servicio S.A., relates local news source Infobae. The city's Clerk No. 43 assists the court on the case, the source adds. Creditors must present their proofs of claims for verification before November 14 this year. The receiver, Ms. Cecilia B. Montelvetti, who will authenticate the claims, will prepare the individual reports afterwards. These reports must be presented to the court on December 30. The general report, which is prepared after individual reports are processed at court, must be filed on March 12 next year. The Company's assets will be liquidated at the end of the process to pay its creditors. CONTACT: Cecilia Montelvetti General Urquiza 2134 Buenos Aires DICAM: Court Approves Creditors' Request For Bankruptcy ------------------------------------------------------- Insolvency Judge Garibotto of Buenos Aires' Court No. 2 approved a petition for the bankruptcy of Argentine motor dealer Dicam S.A., reports La Nacion. The Company's creditor, Organizaci¢n de Servicios Directos Empresarios (OSDE) filed the petition for nonpayment of debt. Working with Clerk No. 3, Dr. Vasallo, the court assigned Mr. Claudio Haimovici, as receiver for the process. He will verify creditors' claims until December 2 this year. CONTACT: Dicam S.A. 7th Floor, Room D Sarmiento 1574 Buenos Aires FANTASTICO PRODUCCIONES: Court Sets Reorganization Schedule ----------------------------------------------------------- Ms. Andrea Rut Cetlinas, the receiver assigned for the reorganization of Buenos Aires company Fantastico Producciones S.A., must file the individual reports on February 6 next year. A report by local news source Infobae reveals that the court also requires the receiver to file the general report on March 19. Buenos Aires Court No. 2, which handles the Company's case, instructed the receiver to authenticate creditors' claims until November 21 this year. This process is done to evaluate the amount and nature of the Company's debts. The informative assembly will be held on August 27 next year, the source adds. CONTACT: Andrea Rut Cetlinas Lavalle 1674 Buenos Aires LA ELENA: Court Approves Reorganization Petition ------------------------------------------------ The Civil and Commercial Tribunal of Rosario in Santa Fe approved the "Concurso Preventivo" motion filed by local company La Elena S.A., relates Argentine news source Infobae. The province's Court No. 3, which holds jurisdiction over the case, assigned Ms. Silvana Beatriz Vescio as receiver for the process. The court set October 15 this year as the deadline for the credit verification process, the source says. The receiver will then prepare the individual reports after that. The court requires the individual reports to be submitted on December 1. The receiver will also prepare a general report after the individual reports are processed at court. This report must be filed on February 18 next year. The informative assembly will then follow on August 5 next year. CONTACT: La Elena S.A. Avenida Pte Peron 7299 Rosario, Santa Fe Silvana Beatriz Vescio San Martin 6055 Rosario, Santa Fe MESAGLIO HERMANOS: Enters Bankruptcy On Court Orders ---------------------------------------------------- Mesaglio Hermanos, which is domiciled in Buenos Aires, enters bankruptcy on orders from the city's Court No. 13. Argentine news portal Infobae relates that the court ordered that the Company is "Quiebra Decretada". Mr. Donato Antonio Sarcuno is assigned as receiver. His tasks include the verification of creditors' claims to evaluate the amount and nature of the Company's debts. Creditors must present their proofs of claim for authentication before November 12 this year. The court also requires the receiver to prepare the individual and general reports on the process, but the source did not mention whether the deadlines for the submission of these reports have been set. CONTACT: Donato Antonio Sarcuno B. de Irigoyen 330 Buenos Aires MICROFORMAS: Court Chooses Receiver For Bankruptcy -------------------------------------------------- Miguel Angel Visco, an accountant from Buenos Aires, was assigned as receiver for the bankruptcy of local company Microformas S.A., according to an Infobae report. The court ordered the receiver to check creditor's claims until December 2 this year. Court No. 6, which handles the Company's case, requires the receiver to submit the individual reports on February 17, 2004. These reports are to be prepared after the credit verifications are completed. The court also expects the general report to be filed on March 30 next year. The receiver will prepare this report after the individual reports are processed in court. The Company's assets will likely be liquidated afterwards to reimburse its creditors. CONTACT: Miguel Angel Visco Tres de Febrero 4683 Buenos Aires MORDISCO: Receiver Prepares Individual Reports ---------------------------------------------- Mr. Raul Pereyra, the court-appointed receiver for the bankruptcy of Buenos Aires-based Mordisco S.A., closes the credit verification process today, October 8. As ordered by the court, Mr. Pereyra will start preparing the individual reports. According to an earlier report by the Troubled Company Reporter - Latin America, the city's Court No. 22 issued the bankruptcy order. Clerk No. 44 works with the court on the case. The receiver will also prepare the general report after the individual reports are processed at court, but local sources did not reveal the deadlines for the filing of these reports. CONTACT: Mordisco S.A. Piedras 100 Buenos Aires Raul Pereyra Parana 467 Buenos Aires OSTRILION: Files Reorganization Petition at Court ------------------------------------------------- Ostrilion S.A.C.I., which produces and sells galvanized plates in Argentina, is seeking court permission to undergo reorganization. A report by Argentine newspaper La Nacion indicates that the Company has submitted its motion for "Concurso Preventivo" to Buenos Aires' Court NO. 10. Dr. Chomer, is the insolvency judge handling the case, the report adds. Dr. D'Alessandri, Clerk No. 19 assists the court. The Company has reportedly stopped making debt payments since April 9 this year, hence the filing. CONTACT: Ostrilion S.A.C.I. Ave Pedro de Mendoza 3875 Buenos Aires PLAN MEDICO: Court Sets Bankruptcy Proceedings' Schedule -------------------------------------------------------- Court No. 12 of Buenos Aires has set the schedule for the bankruptcy proceedings of local company Plan Medico Integral S.A., reports Argentine daily Infobae. After the credit verification process is completed on November 24, the Company's receiver, Mr. Norberto Jorge Volpe, will prepare the individual reports, which are to be submitted on February 6, 2004. He is also required to prepare the general report, which is to be field at the court on March 19 next year, after the individual reports are processed at court. The Company's assets will likely be liquidated at the end of this process to reimburse its creditors. CONTACT: Norberto Jorge Volpe Maipu 859 Buenos Aires PRODUCTOS DAPAF: Credit Verification Process Ends November 28 ------------------------------------------------------------- Creditors of Buenos Aires-based company Productos Dapaf S.A. must present their proofs of claim to the Company's receiver for authentication before November 28 this year. Argentine newspaper Infobae reveals that Mr. Gustavo Pagliere was designated receiver for the process. The city's Court No. 4 declared the Company bankrupt, the report said. Clerk No. 7 assists. The Company's assets face liquidation at the end of this process. The receiver will also prepare the individual and general reports on the process, but Infobae did not indicate whether the deadlines for the submission of these reports have been set. CONTACT: Productos Dapaf S.A. Guise 1760 Buenos Aires Gustavo Pagliere Tucuman 1424 Buenos Aires SANCAYET: Receiver Closes Authentication Period Today ----------------------------------------------------- Mr. Ernestp Borzome, the receiver for Argentine company Sancayet S.A., closes the credit verification process for the Company's bankruptcy today. He will then prepare the individual reports, which will focus on the results of the verifications. Insolvency Judge Dr. Ballerini of Buenos Aires' Court NO. 24 handles the Company's case, the Troubled Company Reporter - Latin America earlier said. The receiver's tasks include the preparation of a general report after the individual reports are processed in court. However, the deadline for the filing of these reports were not revealed by local sources. CONTACT: Sancayet S.A. Ave. Dierctorio 4709 Buenos Aires Ernesto Borzome Cuenca 1464 Buenos Aires SIRESA: Credit Check For Reorganization Ends Today -------------------------------------------------- The credit verification process for the reorganization of Buenos Aires-based Siresa S.A. ends today, according to an earlier report by the Troubled Company Reporter - Latin America. The Company's receiver, Ms. Lidia Diaz, who authenticated the claims, will prepare the individual reports. The Company started its reorganization after the city's Court No. 25 approved its motion for "Concurso Preventivo", the TCR-LA earlier said. The court set July 12, 2004 as the date for the informative assembly. The individual reports must be presented to the court on November 19 this year. After these are processed in court, the receiver will then prepare the general report, which must be submitted to the court on February 3 next year. CONTACT: Siresa S.A. Juncal 802 Buenos Aires Lidia Diaz Independencia 2031 Buenos Aires SIRMET: Receiver For Bankruptcy Process Chosen ---------------------------------------------- Buenos Aires Court No. 21 assigned local accountant, Ms. Stella Maris Alonso, as receiver for the bankruptcy of Sirmet S.A. reports Argentine newspaper Infobae. Clerk No. 41 works with the court on the case. The receiver's duties include verifying creditors' claims until December 1 this year, and preparing the individual and general reports. The individual reports, which are to be prepared after the verification process is complete, must be submitted on February 13 next year. The court also requires the receiver to prepare the general report. This report, which includes the receiver's opinions on the factors that led to the bankruptcy, must be filed at the court on March 26, 2004. CONTACT: Sirmet S.A. Paraguay 866 Buenos Aires Stella Maris Alonso Montevideo 536 Buenos Aires ============= B O L I V I A ============= * IMF Completes Second Review of Bolivia's Stand-By Arrangement --------------------------------------------------------------- The Executive Board of the International Monetary Fund (IMF) Monday completed the second review of Bolivia's performance under a one-year, SDR 85.75 million (about US$123 million) Stand-By Arrangement that was approved on April 2, 2003. This decision enables the release of SDR 10.7 million (about US$15 million) to Bolivia, which brings total disbursements under the program to SDR 64.2 million (about US$92 million). The Executive Board also approved Bolivia's request for the modification of performance criteria for end-September with respect to the fiscal deficit, net domestic financing of the public sector, central bank net credit to the non-financial public sector, and net domestic assets of the central bank, as well as the modification of performance criteria for end-December in relation to the fiscal deficit and net domestic financing of the public sector. The Executive Board also approved Bolivia's request for waivers of applicability until October 30, 2003 of the performance criteria for end-September, for which data was not available. Following the Executive Board discussion on Bolivia, Anne Krueger, First Deputy Managing Director and Acting Chair, said: "Bolivia's economic program is broadly on track. Despite a difficult political and social environment, inflation remains low and indications are that economic growth is picking up and that financial market conditions have stabilized. Although the fiscal outturn has fallen short of the program's objectives, the authorities have taken corrective measures. Moreover, encouraging progress has been made with the government's reform agenda. "The authorities' corrective steps to contain the fiscal deficit in 2003 and to facilitate continued fiscal consolidation in 2004 and beyond will require firm and consistent implementation to achieve higher economic growth and lasting poverty reduction. Recent measures that will be of crucial importance in this context include reductions in low-priority spending, and the implementation of legislation to introduce a new tax code, broaden the tax base, and apply a tax regularization scheme. "The recent approval of the out-of-court workout law and the issuing of the supporting regulations represent important steps that will help to put in place an appropriate framework for corporate and financial restructuring. The law will now be applied to a pilot sample of firms. The authorities also intend to develop an action plan to improve the resiliency of the banking system and address any potential weaknesses, and to implement recommendations made by the recent Financial Sector Assessment Program study. "Building on recent policy initiatives and progress toward stabilizing the economy, the authorities are working to put in place a strong policy framework for the next three years that will incorporate comprehensive reforms aimed at strengthening the basis for sustained growth and poverty reduction. The Fund is working closely with the authorities, who plan to develop and implement the program on the basis of a broad dialogue with domestic stakeholders and discussion with the donor community. On this basis, the authorities have reiterated their intention to seek support under the IMF's Poverty Reduction and Growth Facility before the end of the year," Ms. Krueger stated. CONTACT: INTERNATIONAL MONETARY FUND 700 19th Street, NW Washington, D.C. 20431 USA IMF EXTERNAL RELATIONS DEPARTMENT Public Affairs Phone: 202-623-7300 Fax: 202-623-6278 Media Relations Phone: 202-623-7100 Fax: 202-623-6772 =========== B R A Z I L =========== EMBRATEL: Installs New Router In Acre ------------------------------------- Embratel has activated a new remote access router to its IP backbone in Rio Branco, Acre. Thanks to this equipment, Embratel's local customers will be provided with additional quality regarding their internet services, including quicker, improved access and more competitive prices. The RBO router, which supplies remote access to Embratel's IP backbone, has been installed in Acre and Amap . Another one is being installed in Boa Vista, Roraima. With these routers, Business Link (access to the internet) and Business IP VPN (VPN with MPLS - Multiprotocol Label Switching) services will be supplied to customers of such localities and neighboring areas on a local basis. To date, customers from Rio Branco accessing a website from another internet provider in Acre were provided with a slower service, because the data were sent through dedicated circuits to Sao Paulo, which was the nearest routing center. Now, thanks to the local center, the data are routed in Acre, which expedites and enhances the access performance. The same is taking place in Amap and, before year-end will occur in Roraima, thus making communications with the Northern Region of Brazil much easier. Embratel is the premium telecommunications provider in Brazil, offering a wide range of telecommunication services, such as advanced voice, high-speed data transmission, internet, data communication by satellite and corporate networks. The company is national leader in data and internet services, in a privileged position to become the Latin American carrier with an all- distance network. Embratel network has national coverage with almost 17,500 miles of optic cables, representing around one million miles of fiber optics. CONTACT: EMBRATEL Advertising, Press and Public Relations Department Further information: (02121) 2121 7837 / 2121 6291 Fax: (02121) 2121 7791 Mid-West- Phone: (02161) 242-9058 / 2845 / 916-9188 Attention: Flavio Resende E-mail: cmsocial@embratel.net.br Embratel on the internet: www.embratel.com.br ENRON: Gas Natural SDG In Talks To Buy Brazilian Stakes ------------------------------------------------------- Spanish natural gas distributor Gas Natural SDG announced Friday that it has commenced talks with US energy company Enron to buy stakes in Brazilian distributors CEG and CEG Rio, reports Business News Americas. Gas Natural is already the operator of both companies while Enron holds 25% of CEG and 35% of CEG Rio. If the talks prove successful, Gas Natural's ownership of CEG and CEG Rio will increase to 53.8% and 73.3%, respectively. The discussions with Enron show Gas Natural's confidence in the companies and the Brazilian market, a spokesperson for the Spanish company told Business News Americas, adding that such opportunities are evaluated on a case-by-case basis. There is no deadline for the talks to be concluded, the spokesperson said. IMCO RECYCLING: Completes Refinancing ------------------------------------- IMCO Recycling Inc. announced Monday that it has refinanced virtually all of its existing indebtedness through the sale of $210 million of 10 3/8% senior secured notes due 2010 and the arrangement of a new, four-year $120 million senior secured revolving credit facility. Proceeds from the sale of the notes and initial borrowings under the new senior revolving credit facility will be used to repay amounts outstanding under the company's previous senior credit facility; to repay certain foreign debt; to repurchase trade receivables previously sold under the company's receivables sale facility and terminate that facility; and to pay fees and expenses resulting from the refinancing. Don V. Ingram, IMCO Recycling's chairman and chief executive officer, said the sale of the new senior secured notes and the arrangement of the new senior revolving credit facility "simplifies our capital structure, consolidates our debt into a long-term arrangement and makes funds available for future growth." The 10 3/8% notes were sold by IMCO Recycling at an issue price of 99.383% and mature on October 15, 2010. Interest will be payable on April 15 and October 15 of each year with the first interest payment date being April 15, 2004. Some or all of the notes may be redeemed at any time after October 15, 2007. In addition, up to 35 percent of the notes may be redeemed using the proceeds of certain equity offerings completed before October 15, 2006. This news release does not constitute an offer to sell or the solicitation of an offer to buy the senior secured notes. The notes will not be registered under the Securities Act of 1933 or applicable state securities laws, and may not be offered or sold in the United States absent registration under the Securities Act and applicable state securities laws or available exemptions from such registration requirements. IMCO Recycling Inc. is one of the world's largest recyclers of aluminum and zinc. The company has 22 U.S. production plants and five international facilities located in Brazil, Germany, Mexico and Wales. IMCO Recycling's headquarters office is in Irving, Texas. ========= C H I L E ========= ENAMI: Board Restructuring Suffers Setback ------------------------------------------ The restructuring of the board of directors of Chilean state minerals company Enami may take longer than expected. The new board members were scheduled to be named on October 12 after the government published a decree in the country's official gazette last month, authorizing the restructuring. However, according to a report by Business News Americas, a group of 31 largely pro-government lawmakers asked the constitutional court to declare the decree illegal. The group says the proposed changes require new legislation, and cannot be enacted by decree. The measures give more say on the board to the finance ministry's state business administration agency known as SEP, which Enami unions fear is a step toward privatization. The measure gives SEP four places on the new seven-member board, rather than two of the nine directors at present, one of which is appointed directly by the finance ministry and one via state development agency Corfo, which controls the SEP. The decree also means the private sector mining society Sonami loses one of its two seats, while the Chilean copper commission also loses a place, a seat that could also be occupied by the mining undersecretary. Two representatives chosen directly by the country's president are also excluded, although the Chilean engineers' institute will retain its seat under the new arrangement, and the mining minister, currently Alfonso Dulanto, will stay as Enami's chairman. Dulanto believes the changes will bring Enami's structure more in line with those of public corporations. CONTACT: ENAMI (Empresa Nacional de Mineria) MacIver 459, Santiago, Chile Phone: 637 52 78 637 50 00 Fax: 637 54 52 Email: webmaster@enami.cl Home Page: www.enami.cl/ Contact: Jorge Rodriguez Grossi, President =================================== D O M I N I C A N R E P U B L I C =================================== S&P Cuts Dominican Republic's Rating Once Again ----------------------------------------------- Standard and Poor's reduced Dominican Republic's risk rating from B+ to B- amidst growing fears that the country is likely to default on its loan repayments. This is the second time since the collapse of Banco Intercontinental, one of Dominican Republic's largest banks, that the ratings agency downgraded the country's rating. "The government is facing repayments of almost US$1 billion for 2004, a sum three times greater than the US$315 million in liquid assets available to them in September 2003," S&P analyst Richard Francis said. The report points out that the International Monetary Fund agreement could be the key to preventing a crisis in the coming year, and that any success in this regard could improve the rating. =========== M E X I C O =========== GRUPO IMSA: Unlikely To Meet Sales Target For This Year ------------------------------------------------------- Grupo IMSA, S.A. de C.V. projects it will miss its 2003 sales target of more than US$3 billion because of a weak economy and high production costs, Reuters reports, citing an executive from the Mexican conglomerate. "Sales will fall below our goal," Chief Executive Marcelo Canales said, adding, "The problem is that margins we are currently operating under are considerably low because of the lack of economic growth." To date, the Company's debt reached US$1 billion but Canales said the Company will use US$150 million this year to pay off debt. "Debt peaked at US$1 billion, but we plan to bring it down to US$900 million by the end of the year," the executive said, adding the Company will invest US$100 million in 2004 to improve its facilities. Reuters also reveals that the Company is planning to offer some MXN5 billion ($447 million) in securities to help restructure debt next year. CONTACT: Grupo Imsa, Monterrey Marcelo Canales Phone: (52-81) 8153-8349 Adrian Fernandez Phone: (52-81) 8153-8433 Jose Luis Fornelli Phone: (52-81) 8153-8416 Email: jfornell@grupoimsa.com MAXCOM TELECOMUNICACIONES: Names Jose Antonio Solbes CFO -------------------------------------------------------- Maxcom Telecomunicaciones S.A. de C.V. announced Friday the appointment of Jose Antonio Solbes to the position of Chief Financial Officer. Mr. Solbes, who has been serving as Treasurer and Director of Investor Relations of Maxcom, replaces Eloisa Martinez who presented her resignation at Maxcom effective October 1, 2003. "Jose Antonio has been with Maxcom since inception and has developed an integral knowledge and understanding of the Company. He has been fundamental during the different stages Maxcom has gone through and his appointment as CFO is well deserved," said Rene Sagastuy, Chief Executive Officer of Maxcom. "I am very pleased with this opportunity and excited about the challenge it represents. For the last five years Maxcom has been my second home and I'm proud of being part of the Maxcom family. The entire team and I will continue giving our best for the successful execution of our business plan," said Mr. Solbes. Mr. Solbes joined Maxcom in May of 1998 as Director of Administration and soon thereafter was promoted to Treasurer. In March of 2000, his responsibilities were expanded to Treasurer and Director of Investor Relations. He was previously employed with Grupo Empresarial Organizado, S.A. de C.V. as Corporate Financial Manager, where he spent six years. Mr. Solbes holds an Accounting degree and a Master's degree in Finance from the Universidad Anahuac in Mexico City, and completed the Corporate Financial Strategy Program at the J. L. Kellogg Graduate School of Management in Northwestern University in Chicago. Additionally, the Company announced the resignation of Eloisa Martinez as Chief Financial Officer. "We recognize Eloisa's very valuable contribution to Maxcom's development and we are grateful for it; we wish her the best," added Mr. Sagastuy. "As I leave Maxcom for personal reasons, I am confident that it is now on a solid financial footing and poised to continue the success of the last few quarters. I enjoyed the experience of working for Maxcom and I'm very pleased to have had the opportunity of being part of this team," said Eloisa Martinez. Maxcom Telecomunicaciones, S.A. de C.V., headquartered in Mexico City, Mexico, is a facilities-based telecommunications provider using a "smart- build" approach to deliver last-mile connectivity to micro, small and medium- sized businesses and residential customers in the Mexican territory. Maxcom launched commercial operations in May 1999 and is currently offering local, long distance and data services in greater metropolitan Mexico City, Puebla and Queretaro. CONTACT: Jose-Antonio Solbes Maxcom Telecomunicaciones Mexico City, Mexico Phone: (52 55) 5147 1125 Email: investor.relations@maxcom.com Lucia Domville Citigate Financial Intelligence New York, NY Phone: (212) 840-0008 Ext. 268 Email: lucia.domville@citigatefi.com NII HOLDINGS: Names Charles Herington to Board of Directors ----------------------------------------------------------- NII Holdings, Inc. announced Monday that Charles M. Herington has joined its Board of Directors. Mr. Herington, 43, brings more than 20 years of management, operations and marketing experience to NII Holdings. "We are honored to welcome Charles to our Board of Directors," said Steven Shindler, President and CEO of NII Holdings. "His knowledge and extensive experience in international markets will be of high value to NII as we execute our business plan in our Latin American markets." Mr. Herington is currently President and Chief Executive Officer of America Online Latin America, responsible for overseeing all aspects of the business, including the development and launching of local services throughout Latin America and the Caribbean. Prior to joining AOL Latin America, Mr. Herington was President of Revlon Latin America, and also held positions of increasing responsibility at PepsiCo Restaurants International where his most recent assignment was as Regional Vice-President Kentucky Fried Chicken, Pizza Hut, and Taco Bell for South America, Central America and the Caribbean. For the first 10 years of his career, he held positions in management and marketing for Procter & Gamble in Canada, Puerto Rico and Mexico. Mr. Herington holds a degree in Chemical Engineering and Computer Sciences from the Monterrey Superior Studies Institute in Mexico, one of the leading universities in Latin America. Mr. Herington is also a member of the board of directors of the Adolph Coors Company, and the Coors Brewing Company and the board of trustees of Florida FTAA Inc. About NII Holdings, Inc. NII Holdings, Inc., a publicly held company based in Reston, Va., is a leading provider of mobile communications for business customers in Latin America. NII Holdings, Inc. has operations in Argentina, Brazil, Mexico and Peru, offering a fully integrated wireless communications tool with digital cellular service, text/numeric paging, wireless Internet access and Nextel Direct Connectr, a digital two-way radio feature. NII Holdings, Inc. trades on the Nasdaq market under the symbol NIHD. Visit the Company's website at http://www.nii.com. Nextel, the Nextel logo, Nextel Online, Nextel Business Networks and Nextel Direct Connect are trademarks and/or service marks of Nextel Communications, Inc. CONTACTS: Investor Relations: Tim Perrott (703) 390-5113 tim.perrott@nii.com Media Relations: Claudia E. Restrepo (786) 251-7020 claudia.restrepo@nii.com SATMEX: Projects International Business Will Prove Profitable ------------------------------------------------------------- Arturo Gonzalez, Operations Vice President at Mexican satellite operator Satmex, said the Company expects international business will represent 60% of its revenues by the end of 2006, relates Business News Americas. "We feel there is a potential market for connectivity between South America and North America. Connectivity for the distribution of video and content, but also for private voice and data networks. We are making a [sales] effort in all countries [in the region]," he said. According to the executive, international sales currently represent 50% of Satmex's consolidated revenues. Satmex reported revenues of US$85 million in 2002, he added, declining to forecast future revenues because of ongoing talks with bondholders. Satmex is negotiating with bondholders to extend the term on US$320 million in high-yield bonds due November 2004. A successful restructuring of the 2004 bonds is one of the conditions for Satmex to access US$230 million in loans pledged by the US's Ex-Im Bank and French export financer Cofase to build and insure Satmex 6 and pay down debts. Adding to Satmex's woes are problems with the Arianne Space launch vehicle that must be resolved before launch Satmex 6. Satmex is also seeking an additional US$50 million to pay for launch insurance. Satmex is 75% controlled by the Mexican consortium of Principia and Loral. The remaining 25% is controlled by the government. UNEFON: TV AZTECA BoD Approves Split Off of Investment ------------------------------------------------------ TV Azteca, S.A. de C.V., one of the two largest producers of Spanish- language television programming in the world, announced on Monday that its board of directors unanimously approved a split off of its investment in Unefon and of its investment in Cosmofrequencias, a wireless broadband Internet access provider, in a way that does not affect the previously approved company's six- year plan for uses of cash. This cash usage plan entails reducing TV Azteca's debt by approximately US$250 million, and making cash distributions to shareholders of over US$500 million within a six-year period. "After a broad survey of market participants to get feedback for an efficient separation, we developed a mechanism that will return TV Azteca to a pure-play media company, while further strengthening our capital structure, and distributing the benefits of our profitability," said Pedro Padilla, Chief Executive Officer of TV Azteca. "Market feedback enriched our ideas for separation, allowing us to present a solid proposal to our board, which strongly supported the initiative." Mechanics for Separation The plan consists of a split off of TV Azteca's 46.5% equity stake in Unefon-holder of 1.9 GHz frequencies-and of TV Azteca's 50% equity stake in Cosmofrecuencias-holder of 3.4 GHz and 7 GHz frequencies. Through the split off, TV Azteca will be completely separated from its telecommunications' investments. The telecommunications assets will form Azteca Telecom, a new entity that, upon approval of the Mexican securities authorities will be publicly traded on the Mexican stock exchange, and upon authorization of the Securities and Exchange Commission will also trade over-the-counter in the United States. During the fourth quarter of 2003, TV Azteca shareholders will be asked to vote to approve the split off, and to cancel rights previously granted to them to acquire shares of Unefon. Approximately 15 days prior to the meeting, shareholders will receive an "information statement" describing the details of the split off and its effects on TV Azteca, along with a description of Unefon and Cosmofrecuencias operations and financial conditions. According to Mexican commerce law, Azteca Telecom is formally separated approximately 45 days after the date of the shareholder's meeting. The company anticipates public trading of Azteca Telecom -- in the Mexican stock market, and over-the- counter in the U.S. -- to occur within the second quarter of 2004. Effect on TV Azteca The split off will entail a reduction of TV Azteca's assets and stockholders' equity by approximately US$202 million, the book value of TV Azteca's investment in Unefon and Cosmofrecuencias. TV Azteca's fiscal value of paid-in capital -- which determines the capacity for fiscally-efficient cash distributions to shareholders -- will not have material changes, therefore, the expected distributions within the six- year plan for uses of cash will not be affected. The advertising agreements between Unefon and TV Azteca, as well as the accounts receivable that Unefon is required to pay to TV Azteca will remain unchanged. The separation falls under the restricted payment clause of TV Azteca's bond indenture and does not require bondholder approval. Benefits for all Stakeholders "By returning TV Azteca to a pure-play media company, we will further concentrate on developing our competitive strengths, enhancing our solid media operations and profitability," added Mr. Padilla. "The separation will also provide for a lower risk perception for the financial markets, which will help TV Azteca align its cost of capital with its solid operating fundamentals. "By allowing shareholders to determine their participation in the telecommunications business, we are offering a unique opportunity for separate stakes in some of Mexico's most dynamic economic sectors, with the potential for adding significant shareholder value going forward," concluded Mr. Padilla. Company Profile TV Azteca is one of the two largest producers of Spanish-language television programming in the world, operating two national television networks in Mexico, Azteca 13 and Azteca 7, through more than 300 owned and operated stations across the country. TV Azteca affiliates include Azteca America Network, a new broadcast television network focused on the rapidly growing US Hispanic market; Unefon, a Mexican mobile telephony operator focused on the mass market; and Todito.com, an Internet portal for North American Spanish speakers. CONTACT: TV Azteca, S.A. de C.V. Bruno Rangel, Investors Phone: +011-5255-3099-9167 Email: jrangelk@tvazteca.com.mx Omar Avila Phone: +011-5255-3099-0041 Email: oavila@tvazteca.com.mx Media: Tristan Canales Phone: +011-5255-3099-5786 Email: tcanales@tvazteca.com.mx Home Page: http://www.tvazteca.com.mx VITRO: Hunton & Williams Represents Phoenix in Acquisition ---------------------------------------------------------- Hunton & Williams represented Phoenix Capital Ltd. (Phoenix) in connection with its successful acquisition of Envases Cuautitlan, S.A. de C.V. (ECSA), a Mexican injection-molding and thermoforming operation, from Vitro, S.A. de C.V. (Vitro) for approximately US$18 million. The Hunton & Williams team was led by Partners Fernando C. Alonso and Enrique J. Martin. Rafael Robles and Margarita Hugues of Franck Galicia & Robles served as Mexican counsel to Phoenix. Vitro was represented by Cravath Swaine & Moore. "Vitro is one of the largest glass container manufacturers in Mexico and it made sense for them to divest themselves of this noncore asset. This is our client's core business and it is in a better position to maximize ECSA's value long term," said Enrique J. Martin, partner in Hunton & Williams' Latin America Practice Group. Fernando C. Alonso, chairman of the group added, "We continue to see active interest in business opportunities throughout Latin America through our representation of both international investors and local companies. This transaction is representative of continuing efforts by our clients to capitalize on existing opportunities within the region and to expand operations across borders to minimize, or at least offset, particular country risks." Phoenix is the leading manufacturer of rigid packaging and disposable products in Latin America, with more than 10 plants in Colombia, Venezuela and Mexico. Its major customers include Nestle, Parmalat, Kraft, Unilever, Borden, Procter & Gamble, Dannon, Colgate- Palmolive and Gillette, among others. Phoenix is also the only packaging company in Latin America to have been the recipient of two World Packaging Organization Gold Medal Awards. Phoenix is controlled by Midway Capital Ltd. (a Vision Asset Management Fund), Citicorp International Finance Corporation and Santander Central Hispano Bank & Trust (Bahamas) Ltd. Hunton & Williams has one of the largest and most experienced Latin American practices among any law firm in the world. Its Latin America Practice Group consists of more than 50 attorneys and consultants who have a long history in the region representing numerous types of clients, ranging from some of the world's largest financial institutions and multinational corporations, to local governments and agencies, and prominent Latin American families. The Latin America Practice Group has handled matters in every Latin American and major Caribbean country. About Hunton & Williams Hunton & Williams LLP provides legal services to corporations, financial institutions, governments and individuals as well as a broad array of other entities. Since its establishment in 1901, Hunton & Williams has grown to more than 850 attorneys serving clients in 80 countries from 17 offices around the world. While Hunton & Williams' practice has a particular emphasis on corporate transactions, corporate and structured finance, energy and environmental law, governmental relations and commercial litigation, the firm's depth and breadth of experience extends to more than 50 separate practice areas. ============= U R U G U A Y ============= MANZANARES: Owners Try To Beat Deadline Given By Creditors ---------------------------------------------------------- The creditors of Manzanares are giving the owners of the embattled Uruguayan supermarkets chain until October 20 to work on a rescue plan. The owners are considering these alternatives: passing on real estate assets to creditors and keep operations and the 800 employees labor force, or sell or rent some of its branches. There's also the possibility of major chains, such as Disco and Multiahorro, acquiring Manzanares. Pressure from creditors came after the Company failed to comply with an agreement to settle debts. *********** 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 * * *