/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/031014.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, October 14, 2003, Vol. 4, Issue 203 Headlines A R G E N T I N A ALPROAR: Receiver Verifies Claims For Bankruptcy Process ARCINT: Court Assigns Receiver For Bankruptcy AT&T LATIN AMERICA: Bidders Improved Offers Still Pending BANCO DE GALICIA: Evaluadora Issues `D' Rating to Bonds CABLEVISION: Details Bullish Outlook For This Year CORREO ARGENTINO: Gets Relief from Court of Appeals CTG: Court Okays APE DIRECTV LA: Oct. 15 Deadline Set to Present Restructuring Plan DURBIKE: Claims Filing For Bankruptcy Ends Today EMPRENDIMIENTOS PLASTICOS: Claims Verification Starts ENTRE RIOS CRISTALES: Receiver Takes Over Amid Bankruptcy FERMODYL: Claims Processing Closes FERRARI TAXIS: Local Court Orders Bankruptcy LATIN TRADE SATELLITE: Court Approves Creditor's Bankruptcy Plea MANURA: Court Approves Creditor's Bankruptcy Petition NICOLAS FRATE: Court Moves Informational Meeting Date PDL: Receiver Readies Individual Reports After Credit Check PETROBRAS ENERGIA: To Sell $150M Worth of New Bonds ROAMAR: Court Orders Bankruptcy TRAINING CENTER: Receiver To File Individual Reports Today TRANSPORTE TOMEO: Receiver Prepares Individual Reports TZB: Files For Voluntary Bankruptcy *Argentina Solicits Bids To Help in Debt Restructuring B O L I V I A *Spain Forgives Debt Owed by Bolivia B R A Z I L ARACRUZ CELULOSE: Poor Results Leads to "Neutral" Rating BRAZILIAN UTILITIES: S&P Reviews Recent Developments COPEL: Responds to Minority Shareholders' Allegations Made ENDESA CHILE: Downed Brazilian Turbines Resume Normal Operations C H I L E AES GENER: Parent Company, Additional Investors to Add Liquidity TELEFONICA CTC: Rates Investigation To Begin C O L O M B I A TRANSTEL: Restructuring Approval Vote Deadline Extended M E X I C O AHMSA: Financial Advisor Quits Over Debt Restructuring Issues ALESTRA: Extend Reorganization Offer Period GRUPO IUSACELL: Cofetel Orders Messaging Link With Telcel GRUPO TMM: Tax Dispute Exacerbates Solvency Woes UNEFON: Losses Continue in 3Q03 - - - - - - - - - - ================= A R G E N T I N A ================= ALPROAR: Receiver Verifies Claims For Bankruptcy Process -------------------------------------------------------- Court No. 21 of Buenos Aires assigns Mr. Armando Esteban Bozzini as receiver for the bankruptcy of local company Alproar S.A. reports Infobae. The receiver is charged with validating creditors' claims until February 9 next year. The receiver will prepare the individual reports after the credit verification is completed. The court expects this report to be submitted on March 22, 2004. The receiver is also required to prepare the general report, which must be submitted on May 3 next year. CONTACT: Alproar S.A. Uruguay 390 Buenos Aires Armando Esteban Bozzini Vidal 3375 Buenos Aires ARCINT: Court Assigns Receiver For Bankruptcy --------------------------------------------- Ms. Norma Fernandez, an accountant from Buenos Aires, is assigned as receiver for the bankruptcy of local textile company Arcint S.A., relates Argentine news source La Nacion. Creditors must have their claims verified by the receiver before the December 12 deadline expires. La Nacion relates that Judge Ferrario of the city's Court No. 6 approved a petition for the Company's bankruptcy filed by Adecco Argentina S.A., to whom the Company owes some ARS11,471 in debt. Clerk No. 12, Dr. Mendez Sarmiento, assists the court on the case. The receiver's tasks include the preparation of the individual and general reports. However, the source did not reveal whether the court has set the cut-off dates for the filing of these reports. CONTACT: Arcint S.R.L. Hubac 5150 Buenos Aires Norma Fernandez Plaza 3442 Buenos Aires AT&T LATIN AMERICA: Bidders Improved Offers Still Pending --------------------------------------------------------- Three companies have engaged in due diligence processes in order to take part in the auction of AT&T Latin America. These companies are Chilean GTD Teleductos and newcomers Impsat Fiber Networks from Argentina and Leucadia National Corporation. However, all of them are yet to present a definitive bid. Candidates for ATTL are supposed to submit a bid better than the one presented by Brazil's Embratel Participacoes before October 14. They have to improve the US$110 million bid by at least US$7 million. 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 BANCO DE GALICIA: Evaluadora Issues `D' Rating to Bonds ------------------------------------------------------- Evaluadora Latinoamericana S.A. Calificadora ed Riesgo assigned default ratings to bonds issued by local company Banco de Galicia y Buenos Aires recently. The Comision Nacional Valores, Argentina's securities regulator relates that the `D' rating applies to US$200 million of "obligaciones negociables a Largo Plazo" and to some US$150 million of "obligaciones negociables". Another set of bonds, called "obligaciones negociables (con garantia MIGA)", worth US$62 million also received the same ratings. The affected bonds were all under "simple issue", and their maturity dates were not indicated. CABLEVISION: Details Bullish Outlook For This Year -------------------------------------------------- Argentine cable TV operator CableVision, a unit of Hicks, Muse, Tate & Furst and Liberty Media, foresees a positive scenario for its businesses. The Company said it expects to reverse its losses before the end of the year so as to improve its net worth, which currently stands at a negative ARS75.9 million (US$ 26.63 million). The Company's negative net worth could lead it to the dissolution in terms of the Argentine Corporation Law. However, the clause that establishes this mechanism has been suspended until December 10. In a filing to the Buenos Aires Stock Exchange, the Company informed it is restructuring its US$800 million debt and once it has reached agreement with its creditors, the firm will receive a US$45- million capital injection from its main shareholders. CORREO ARGENTINO: Gets Relief from Court of Appeals --------------------------------------------------- A court of appeals has admitted a complaint recourse filed by Correo Argentino, suspending the application of the legal terms of its formal restructuring proceeding. The proceeding expired Thursday without an accord between the Company and its creditors. As a result, the Company asked the court in charge of its proceeding for an extension of 120 days and a grace period of 30 days to negotiate. But Judge Eduardo Favier Dubois had turned down both requests prompting Correo Argentino to appeal on the decision. The court of appeals made a decision, which prevents the negotiation term from expiring until it has made a final decision on whether to give the firm more time or not. Correo Argentino wants more time to convince the State, to which it owes ARS200 million, to accept its debt-restructuring proposal. The rest of the creditors, representing ARS700 million in debt, would have already accepted the proposal. CTG: Court Okays APE -------------------- Argentine thermoelectric power generator Central Termica Guemes (CTG) concluded the refinancing of its US$54 million financial debt. After nine months of hard negotiations, the Company obtained court approval of the out-of-court agreement (APE) subscribed with creditors holding 75% of its debt. In March 2003, CTG launched an offer to exchange its only financial liability: a US$54 million bond that emerged from its formal restructuring proceeding concluded years ago. On that opportunity, the proposal was accepted by 60% of the creditors, representing a US$31.7 million principal amount of debt. The offer involved the extension of the maturity term from 2010 to 2013, without reductions in the amount of debt to be paid. After this process, US$22.3 million in debt were to be refinanced. 21% of this sum was in the hands of private equity fund Van Eck, who filed a lawsuit before a New York court. The Company had to keep negotiating with the fund to get its approval. In exchange for its support and the lifting of the lawsuit, CTG promised to repurchase part of the new bonds Van Eck will receive in the swap. Then the judge in charge of CTG's restructuring proceeding called for a bondholders' meeting and made each creditor decide whether they accept or reject the bond swap. The Company managed to obtain the acceptance of other 15% of the creditors (including Van Eck) and raised the total amount to be exchanged to 75% of the debt. With the support of 75% of the creditors, CTG presented the agreement before the court and asked the judge to approve the accord so that it becomes mandatory to the rest of the bondholders. The judge has approved the operation, according to information from the stock exchange. DIRECTV LA: Oct. 15 Deadline Set to Present Restructuring Plan -------------------------------------------------------------- DirecTV Latin America LLC obtained an extension of the term to present a restructuring plan under Chapter 11 of the US bankruptcy law. The Company has until October 15 to make a proposal. A bankruptcy court in Wilmington, Delaware approved the extension request last Wednesday, according to company spokesperson Jannice Reyes. She added the Company plans to present a plan this week. DURBIKE: Claims Filing For Bankruptcy Ends Today ------------------------------------------------ The credit verification period for the bankruptcy of Argentine company Durbike S.A. ends today, October 14. The Troubled Company Reporter - Latin America earlier reported that the Buenos Aires' Court No. 14 issued the bankruptcy order. Mr. Alberto Jorge Rotenberg, the receiver assigned to the case who verified the claims, will prepare the individual reports on the results of the verification process. The court ordered this report to be submitted by November 25. The receiver will prepare a general report after the individual reports are processed at court. This report must be filed at the court by February 10 next year. The court, which is assisted by Clerk No. 28 will likely order the liquidation of the Company's assets at the close of the bankruptcy process. CONTACT: Alberto Jorge Rotenberg Ave. Cordoba 1336 Buenos Aires EMPRENDIMIENTOS PLASTICOS: Claims Verification Starts ----------------------------------------------------- Ms. Patricia Monica Lopez, the designated receiver for the reorganization of Mercedes company Empredimientos Plasticos S.A., will verify creditors' claims until November 14 this year. After that, she will prepare the individual reports. Argentine news source Infobae relates that the province's Court No. 1 approved the Company's motion for "Concurso Preventivo" and assigned the receiver to the case. Clerk No. 2 assists. In the meantime, the source did not indicate the deadlines for the submission of the receiver's reports. It did mention that the informative assembly will be held on September 8 next year. CONTACT: Emprendimientos Plasticos S.A. Belgrano 1342 Bragado, Mercedes Patricia Monica Lopez Calle 28, No. 524 Mercedes ENTRE RIOS CRISTALES: Receiver Takes Over Amid Bankruptcy --------------------------------------------------------- Mr. Ricardo Felix Fernandez takes charge of Buenos Aires company Entre Rios Cristales S.R.L. as receiver for its bankruptcy process, relates Infobae. He will verify creditors' claims until November 26 this year. The city's Court No. 20 requires the receiver to hand in the individual reports on February 9 next year. These reports are to be prepared after the credit check is completed. The receiver must also file a general report on March 22, 2004. The bankruptcy process is likely result in the liquidation of the Company's assets in order to pay its creditors. CONTACT: Ricardo Felix Fernandez Tucuman 1567 Buenos Aires FERMODYL: Claims Processing Closes ---------------------------------- Mr. Jose Luis Abuchidid, the receiver for Fermidyl S.A.A.C.I.E.I., will start preparing the individual reports for the Company's bankruptcy. The credit verification process is slated to be over today. The Troubled Company Reporter - Latin America earlier reported that the Company entered bankruptcy on orders from Buenos Aires' Court No. 11. The court requires the receiver to submit the individual reports on November 25 this year. The receiver will also prepare a general report to be submitted on February 9, 2004. CONTACT: Jose Luis Abuchidid Tacuari 119 Buenos Aires FERRARI TAXIS: Local Court Orders Bankruptcy -------------------------------------------- Ferrari Taxis S.A., which is domiciled in Buenos Aires, enters bankruptcy, according to an Infobae report. The city's Court No.7 handles the case with assistance from Clerk No. 13, the report adds. Local accountant Jorge Luis Berisso was designated as the Company's receiver. He will authenticate creditors' claims until December 15 this year. He is also required to prepare the individual and general reports, but the source did not mention the deadlines for these. The Company's assets will likely be liquidated at the end of the process to reimburse its creditors. CONTACT: Jorge luis Berisso Paraguay 866 Buenos Aires LATIN TRADE SATELLITE: Court Approves Creditor's Bankruptcy Plea ---------------------------------------------------------------- Argentine telecommunications company Latin Trade Satellite S.A. enters bankruptcy on orders from Judge Bavastro of Buenos Aires' Court No. 17. The ruling comes after the Company's creditor filed a petition for the Company's bankruptcy for nonpayment of debt. The receiver, Ms. Norma Gomez Salgado, will verify creditors' claims until November 18 this year. After that, she will prepare the individual reports, followed by the general report. It is not known, however, whether the court has set the deadlines for these reports. CONTACT: Latin Trade Satellite S.A. 2nd Floor, Room 6 San Martin 982 Buenos Aires Norma Gomez Salgado 5th Floor, Room 503 Viamonte 1546 Buenos Aires MANURA: Court Approves Creditor's Bankruptcy Petition ----------------------------------------------------- Judge Garibotto of Buenos Aires' Court No. 2 approved a petition for the bankruptcy of local company Manura S.A., relates Argentine daily La Nacion. The Company's creditor, HSBC Bank Argentina S.A. filed the bankruptcy petition for nonpayment of debt. Working with Clerk No. 4, Dr. Romero, the court assigned Mr. Mauricio Mudric as the Company's receiver. He is instructed to authenticate creditors' claims until November 27 this year. After the verification process is completed, the receiver will prepare the individual reports, followed by the general report. However, La Nacion did not reveal the deadlines for the filing of these reports. CONTACT: Manura S.A. 1st Floor, Room 6 Esmeralda 977 Buenos Aires Mauricio Mudric 5th Floor, Room N Tucuman 843 Buenos Aires NICOLAS FRATE: Court Moves Informational Meeting Date ----------------------------------------------------- The informative assembly for the reorganization of Nicolas Frate e Hijos S.A. has been moved to October 31 this year, reports Argentine news portal Infobae. Buenos Aires' Court No. 7 ordered the modification, the report says without offering the reasons behind the change. PDL: Receiver Readies Individual Reports After Credit Check ----------------------------------------------------------- The receiver for Buenos Aires company PDL S.A. will prepare the individual reports as the credit verification process for the Company's bankruptcy ends today, October 14. The bankruptcy came after Judge Ottolenghi of the city's Court No. 4 approved a petition for bankruptcy filed by the Company's creditor, The Troubled Company Reporter - Latin America reported previously. Working with Dr. Anta, the city's Clerk No. 8, the court instructed the receiver, Mr. Victor Tomasi, to prepare the general report after the individual reports are processed at court. However, local sources did not mention the deadlines for the submission of the receiver's reports. CONTACT: PDL S.A. 3rd Floor Room 6 Alicia Moreau De Justo 1720 Buenos Aires Victor Tomasi Planta Baja D Ave. Acoyte 127 Buenos Aires PETROBRAS ENERGIA: To Sell $150M Worth of New Bonds --------------------------------------------------- Argentine energy giant Petrobras Energia SA announced Friday it will issue US$150 million in new bonds, Dow Jones reports, citing a company filing to the Buenos Aires stock exchange. The filing revealed that the planned issue is part of an existing program that allows the Company to issue up to US$2.5 billion in bonds. Petrobras Energia finished restructuring its short-term debt last year, shortly before Brazilian oil company Petroleo Brasileiro SA (Petrobras) paid just over US$1 billion for a 58.6% stake in Perez Companc SA, Petrobras Energia's parent company. Perez Companc is now known as Petrobras Energia Participaciones SA. The successful debt restructuring, as well as the Petrobras purchase and a positive outlook for the Company's petrochemical and upstream production, prompted Fitch Ratings to upgrade Tuesday Petrobras Energia's peso- and dollar-denominated debt to a "highly speculative" B-rating from "high default risk" CC status. CONTACT: Petrobras Energia Participaciones S.A. Piso 22 Maipu1 Buenos Aires Argentina C1084ABA Phone: +54 11 4344 6000 Fax: +54 11 4344 6315 Home Page: http://www.pecom.com.ar Contact: Jose Eduardo de Barros Dutra, Chairman Nestor Cunat Cervero, Vice Chairman ROAMAR: Court Orders Bankruptcy ------------------------------- Argentine construction company Roamar S.A. enters bankruptcy on orders from Judge Paez Castaneda of Buenos Aires' Court No. 21. Local news source La Nacion relates that the city's Clerk No. 41 assists the court on the matter. The bankruptcy came after the court approved a petition for bankruptcy filed by the Company's creditor for nonpayment of debt. A local accountant, Ms. Maria Gravier, is assigned as the Company's receiver. His tasks include the verification of creditors' claims until February 27 next year. The receiver is also required to prepare the individual and general reports on the bankruptcy process, but the source did not mention whether the court has set the deadlines for the submission of these reports. CONTACT: Roamar S.A. 5th Floor, Room B Ave. Forest 434 Buenos Aires Maria Gravier 4th Floor Piedras 172 Buenos Aires TRAINING CENTER: Receiver To File Individual Reports Today ---------------------------------------------------------- Court No. 17 of Buenos Aires expects the receiver for Training Center S.A. to submit the individual reports on the results of the credit verification process for the Company's bankruptcy today. The receiver, Mr. Jose Nullo, prepared the reports after the credit verification process was completed. This was done to determine the amount and nature of the Company's debts. The general report is to be prepared after the individual reports are processed at court. The receiver must have this report filed by November 25 this year. The informative assembly will take place on June 3, 2004. CONTACT: Jose M. Nullo Suipacha 612 Buenos Aires TRANSPORTE TOMEO: Receiver Prepares Individual Reports ------------------------------------------------------- The bankruptcy of Buenos Aires-based company Transporte Tomeo S.A. proceeds with the receiver closing the credit verification process today, October 14, 2003. The receiver, Mr. Mauricio Mudric, will now prepare the individual reports on the results of the verifications. Buenos Aires' Court No. 2 issued the bankruptcy order, with assistance from Clerk No. 4, the Troubled Company Reporter - Latin America earlier reported. The court expects the receiver to submit the individual reports by December 9 this year. After the individual reports are processed at court, the receiver will prepare the general report to be submitted on February 17 next year. CONTACT: Transporte Tomeo S.A. Moreno 955 Buenos Aires Mauricio Mudric Tucuman 893 Buenos Aires TZB: Files For Voluntary Bankruptcy ----------------------------------- TZB S.A., which is based in Buenos Aires, has voluntarily filed for bankruptcy, according to an Infobae report. The case is in the city's Court No. 16, which works with Clerk No. 32. In the meantime, the report did not mention whether the petition is likely to receive approval. CONTACT: TZB S.A. Gallo 1192 Buenos Aires *Argentina Solicits Bids To Help in Debt Restructuring ------------------------------------------------------ Argentina solicited bids from 12 foreign banks and 3 local banks to help it reschedule payments on US$94.3 billion in defaulted debt. The foreign banks are: J.P. Morgan Chase & Co. Morgan Stanley Co. Salomon Smith Barney Deutsche Bank AG UBS Warburg Goldman Sachs Group Inc. ABN Amro Lehman Brothers BNB Paribas SA Nomura Co. Ltd. Allianz AG Holding's Dresdner KW unit Barclays PLC. The local banks are: BBVA Banco Frances SA Banco Galicia y Buenos Aires SA Banco de la Nacion The banks will operate as lead managers to the underwriting on a regional basis and will make recommendations for the structure of the underwriting syndicate, including the designation of syndicating banks. The government has given the banks until Oct. 31 to respond. In the letter it sent them it stressed that it reserves the right to reject any or all of the offers made. Argentina needs to restructure its debt before it can borrow in international markets again and boost an economic recovery. Banks are competing for a part in the biggest debt restructuring in history and fees that may total as much as US$280 million, based on the average fee charged this year by underwriters of emerging market debt. ============= B O L I V I A ============= *Spain Forgives Debt Owed by Bolivia ------------------------------------ The Spanish government agreed at a Cabinet meeting Friday to write off almost EUR71.3 million (some $78 million) in debt owed by Bolivia, reports EFE. The move gives relief to Bolivia as it seeks more funds to finance social programs in the 2003-2006 period. Bolivia incurred this debt through loans made by Spain's Development Aid Fund. =========== B R A Z I L =========== ARACRUZ CELULOSE: Poor Results Leads to "Neutral" Rating -------------------------------------------------------- Following the release of Aracruz Celulose SA's latest earnings report, UBS Investment Research cut its recommendation on the Brazilian pulp and paper producer's shares to neutral from buy, reports Dow Jones. "We believe the results were disappointing. We expect them to weigh on the share price in the short-term," the investment bank's Latin American equity strategy group wrote in its daily report. In its latest earnings report, Aracruz said its net profit declined to US$0.58 per American Depositary Receipt, from $1.04/ADR. CONTACT: Mauricio Werneck (55-21) 3820-8131 invest@aracruz.com.br Patrick Kilhaney (1-201) 499-3559 patrick.kilhaney@citigatefi.com BRAZILIAN UTILITIES: S&P Reviews Recent Developments ---------------------------------------------------- The long-term viability of the Brazilian energy sector will depend on the federal government's capacity to implement a transparent and predictable regulatory environment, while at the same time taking short-term measures to help strengthen energy companies' financial profiles, according to a report published Friday by Standard & Poor's Ratings Services. During the past few months, Brazil's Ministry of Mines and Energy has started to outline the actions that will be taken not only to reshape the commercial relationship between distributors and generators, and thus the long-term regulatory environment under which these companies will operate, but also a financial package sponsored by Banco Nacional de Desenvolvimento Econ�mico e Social (BNDES) to reduce distributors' leverage and exposure to refinancing risk. "As high leverage and short-term debt concentration are the major risks affecting the credit quality of Brazilian distribution companies, the alternative being offered by BNDES can improve the utilities' financial flexibility and, consequently, risk perception. Distributors are usually strong cash generators with a steady revenue stream and should be able to deal with softer maturity schedules," said Standard & Poor's credit analyst Marcelo Costa. According to the report, the ratings on companies in the Brazilian electricity sector are heavily affected by regulatory uncertainty and high refinancing risks. "The BNDES capitalization plan could help reduce this risk. However, regulatory uncertainty will remain a key concern until there is further definition on the new framework," added Mr. Costa. The report, titled "Too Soon to Gauge Effect of Recent Developments for Brazilian Utilities," is available on RatingsDirect, Standard & Poor's Web-based credit research and analysis system. Members of the media may obtain copies of the full report by contacting Gregg Stein at (1) 212-438-1730 or by E-mail at gregg_stein@standardandpoors.com. ANALYSTS: Marcelo Costa, Sao Paulo (55) 11-5501-8955 Juliana Gallo, Sao Paulo (55) 11-5501-8948 COPEL: Responds to Minority Shareholders' Allegations Made ---------------------------------------------------------- Brazil's Parana state power company Copel defended itself from allegations by minority shareholders that it acted illegally in its application of rates hikes, reports Business News Americas. In June, federal power regulator Aneel authorized an average price hike of up to 25.3%. However, the Parana state, which is Copel's majority shareholder, said it would only allow rates to be raised by 15.3%, and canceled all increases in July, August and September. The move angered minority investors, who claimed that Parana state governor Roberto Requiao acted in his own political interest when he canceled August 20 a 15.3% hike announced earlier in the day by Copel's management team, thereby forgoing some US$380 million with the decision. Copel, in a filing to the Sao Paulo stock exchange (Bovespa), responded, saying the Company opted not to impose the rate hike so that consumption would increase, and to reduce the volume of bankrupt credits owed to the Company. The Company also defended that as it is formed of mixed rather than just private capital, part of its statute is to attend to the public's interest and not just shareholders'. In addition, the Company's statement said that the state government's actions have improved Copel's financial health and ensured its solvency. ENDESA CHILE: Downed Brazilian Turbines Resume Normal Operations ---------------------------------------------------------------- A Brazilian court lifted Friday the restriction imposed by the Goias Environmental Agency on Cachoeira Dourada, a hydroelectric plant owned by Chilean electricity generator Empresa Nacional de Electricidad SA (Endesa Chile), reports Dow Jones. As such, "the nine turbines that had been stopped went back to normal operations," Endesa Chile, a unit of Spanish Endesa SA, said. Last week, the Goias state agency ordered Cachoeira Dourada to shut down nine of its 10 turbines because the plant lacked environmental permits required by law since 1996. But following the local court's decision and an agreement with environmental regulators, the restriction was lifted. The decision to lift the restriction "backed the position that the generator owned by Endesa Chile complies with all of its environmental obligations," the Company said. ========= C H I L E ========= AES GENER: Parent Company, Additional Investors to Add Liquidity ---------------------------------------------------------------- AES Corporation's top executive, Paul Hanrahan, who is visiting Chile, announced AES and other investors will inject US$300 million into its Chilean power generation unit, AES Gener. AES Gener has to pay off a US$480-million bond in March 2005 and another US$200 million on its Yankee bonds in 2006. The funds injected by Gener will be used to pay part of the debt and to improve the Chilean company's capital. Hanrahan said AES Gener needs fresh resources to improve its financial situation. The main goal is to improve the firm's risk ratings and regain the investment grade. This is important in order to improve the accessibility to credit, the executive stated. However, the funds invested by AES are not really new capital, but are in fact, a refund of money Gener had lent it. The US parent owes its Chilean affiliate some US$280 million. On the other hand, the funds other investors are supposed to inject are really fresh resources. It is believed that AES may sell part of its shares in Gener, so as to allow the entrance of other investors in the firm and to provide the company with a higher liquidity. Nevertheless, the US holding plans to keep a controlling stake in Gener. AES Gener has hired Deutsche Bank to advise it during the debt restructuring talks. CONTACT: AES GENER S.A. Mariano Sanchez Fontecilla 310 Piso 3 Santiago de Chile Phone: (56-2) 6868900 Fax: (56-2) 6868991 Home Page: www.gener.com Contact: Robert Morgan, Chief Executive Laurence Golborne Riveros, Chief Financial Officer TELEFONICA CTC: Rates Investigation To Begin -------------------------------------------- Chile's lower house will lodge an investigation into claims that the government has illegally favored telecom operator Telefonica CTC Chile in its battle to be allowed to set its own prices, instead of being subjected to regulated tariffs, reports Business News Americas. The investigation will focus on claims by several senators and rival operators that Sergio Espejo, one of the CRA members opposed to CTC, was forced by the government to resign. Immediately after Espejo's resignation in September, CTC requested a new ruling from CRA, given that other commission members had suggested Telefonica CTC should be able to set its own prices in some areas. The lower house also reminded the CRA that it could not issue a second ruling. CRA remains mum amid all these issues, but admitted that the committee could not issue a second ruling. CONTACT: TELEFONICA CTC CHILE Gisela Esobar, gescoba@ctc.cl Veronica Gaete, vgaete@ctc.cl M.Jos, Rodriguez, mjrodri@ctc.cl Florencia Acosta, macosta@ctc.cl Tel: 562-691-3867 Fax: 562-6912392 =============== C O L O M B I A =============== TRANSTEL: Restructuring Approval Vote Deadline Extended ------------------------------------------------------- Transtel S.A. ("Transtel") has extended the deadline for holders of its outstanding 12 1/2% Senior Notes due 2007 (represented by the 12 1/2% Pass Through Trust Certificates due 2007 issued by Transtel Pass Through Trust) (CUSIPs 89389PAC2, 89389PAA6 and U89365AA5) (the "Senior Notes") and 20.32% Senior Discount Notes due 2008 (CUSIP 89389NAC7) (the "Discount Notes") to submit votes with respect to Transtel's restructuring agreement under Law 550 of the 1999 of the Republic of Colombia (the "Restructuring Agreement"). As of 2:00 p.m. Friday, October 10, 2003 (the original voting deadline), 85.7% of outstanding Senior Notes and 92.0% of outstanding Discount Notes had voted. All votes received have voted to approve the Restructuring Agreement, with the exception of a $10,000 principal amount of Senior Notes. Transtel is extending the voting deadline to give all holders who have not yet voted the opportunity to make an affirmative election of the treatment of their claims under the Restructuring Agreement as described in Transtel's Disclosure Statement. The deadline for submission of votes has been extended to 1:00 p.m. (New York City Time) on Wednesday, October 15, 2003. Transtel urges all holders who have not yet voted to do so prior to the expiration of the extended voting deadline. Colombia's Law 550 provides for a Colombian reorganization proceeding that binds all creditors and shareholders to a restructuring agreement whether or not they vote to approve such restructuring agreement. D.F. King & Co., Inc is acting as the Voting Agent for this Solicitation. Further information may also be found on Transtel's website: www.transtel.com.co. Transtel is the largest private telephone company in Colombia, providing telephone service to both business and residential subscribers. Through its operating subsidiaries, Transtel owns and operates seven telephone systems with their complete infrastructure, serving ten cities, with an aggregate population of 3.3 million, located in the southwestern region of Colombia. As of June 30, 2003, these systems provided telephony services to approximately 223,380 subscribers (an average penetration of 25.1 lines per 100 people) and internet service to 27,205 subscribers. In addition, through Cablevision, Transtel holds a license to provide pay television services in Cali and the surrounding area. As of June 30, 2003, Transtel had 11,984 pay television subscribers. =========== M E X I C O =========== AHMSA: Financial Advisor Quits Over Debt Restructuring Issues ------------------------------------------------------------- Ailing Mexican steelmaker AHMSA recently endured the departure of its financial advisor, New York-based investment bank Weston Financial Services, reports Business News Americas. Weston Financial decided to exit the Company, citing the latter's unwillingness to reschedule its US$1.9-billion defaulted debt payments. Weston's comment underscores claims by Ahmsa's creditors such as Banamex and BBVA Bancomer that the Company does not intend to reach an accord. But AHMSA has defended itself from these allegations, saying that market conditions are to be blamed for its financial delinquency. "The current situation in the steel industry has prevented us from reaching an acceptable agreement with participants in this process," AHMSA, which has been in bankruptcy protection for more than four years, told the Mexico City stock exchange last month. CONTACT: Altos Hornos de Mexico S.A. Prolongacion B. Juarez s/n, Monclova , Coahuila 25770 Mexico http://www.AHMSA.com Phone: +52 86 33 81 72 Fax: +52 86 33 65 66 Contacts: Alonso Ancira Elizondo, CEO, Vice Chairman, Pres/CEO Jorge Ancira Elizondo, Chief Financial Officer Manuel Ancira Elizondo, Chief Operating Officer ALESTRA: Extend Reorganization Offer Period ------------------------------------------- Alestra, S. de R.L. de C.V. ("Alestra") announces an extension of its pending cash tender offers, exchange offers and consent solicitation for all of its outstanding principal amount of its 12 1/8% Senior Notes due 2006 and 12 5/8% Senior Notes due 2009 (the "offers") and its solicitation of acceptances to a U.S. prepackaged plan of reorganization. Alestra is extending the expiration date for the offers and the solicitation of acceptances to the U.S. prepackaged bankruptcy to 11:59 p.m. on October 17, 2003, five business days from, and including, the date of this press release, unless further extended by Alestra. If the offers are consummated, the new senior notes will be issued and all cash payments will be paid pursuant to the offers no earlier than the third business day following the expiration date, or as soon as practicable thereafter. Until, but not including, October 17, 2003, Alestra is also granting withdrawal rights to holders of its existing senior notes who previously tendered their existing senior notes in the offers and to those holders of its existing senior notes who on or subsequent to the date of this press release tender their existing senior notes in the offers. Holders of Alestra's existing senior notes already have the right to withdraw or modify their ballot for the U.S. prepackaged plan at any point prior to the commencement of the U.S. bankruptcy case. As of the date of this press release, approximately $238 million principal amount of its outstanding 12 1/8% Senior Notes due 2006 have been tendered in the offers and approximately $253 million principal amount of its outstanding 12 5/8% Senior Notes due 2009 have been tendered in the offers. Copies of Alestra's prospectus, prospectus supplements and transmittal documents for the offers and the solicitations may be obtained from the Information Agent: D.F. King & Co., Inc., 48 Wall Street, New York, New York, 10005. Banks and brokers call collect: (212) 269-5550. All others call toll free: (800) 549- 6697. This announcement and the cash tender offers, exchange offers, and consent solicitations which are the subject hereof are not being made in any jurisdiction in which, or to any person to whom, it is unlawful to make such announcement and/or cash tender offers, exchange offers and consent solicitations under applicable securities laws. The new senior notes may not be sold nor may offers to buy be accepted prior to the time Alestra has obtained the necessary authorizations from the Comision Nacional Bancaria y de Valores de Mexico. This release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall any sale of these securities in Mexico or in any U.S. state or territory in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of Mexico and any such U.S. state or territory. This announcement shall not under any circumstances create any implication that the information contained herein is correct as of any time subsequent to the date hereof, or that there has been no change in the information set forth herein or in the affairs of Alestra or any of its affiliates since the date hereof. No indications of interest in the offers are sought by this press release. Headquartered in San Pedro Garza Garcia, Mexico, Alestra is a leading provider of competitive telecommunications services in Mexico that it markets under the AT&T brand name and carries on its own network. Alestra offers domestic and international long distance services, data and internet services and local services. CONTACT: Morgan Stanley Simon Morgan Phone: 1-212-761-2219 Heather Hammond Phone: 1-212-761-1893 GRUPO IUSACELL: Cofetel Orders Messaging Link With Telcel --------------------------------------------------------- Mexican mobile phone firms Grupo Iusacell SA de CV and America Movil SA (Telcel) have 60 days from Thursday to connect their short text messaging networks as ordered by the communications industry watchdog Cofetel. Cofetel has set a price of 0.12 pesos for each message sent. "The interconnection of the networks is ordered so that users from both companies can (send) short messages," Cofetel said in a statement. CONTACT: Grupo Iusacell S.A. De C.V. Prolongacion Paseo dela Reforma 1236 Col Santa Fe Delegacion Cuajimalpa 05348 Mexico Distrito Federal Mexico Phone: +52 5 109 4400 Home Page: http://www.iusacell.com.mx GRUPO TMM: Tax Dispute Exacerbates Solvency Woes ------------------------------------------------ A protracted tax dispute with the government is worsening the liquidity problems of Grupo TMM SA, Mexico's largest transportation company. TMM spokesman Marco Provencio told a press conference Wednesday that a dispute over a tax rebate that has lasted six years could go on even longer after the government sought a federal court review of a ruling favoring TMM's railway unit, Transportacion Ferroviaria Mexicana. The claim for a value-added tax rebate, estimated to surpass US$900 million, is crucial for the Company, which defaulted on debt in May. The review, if granted, could also suffocate TMM's hopes for restructuring its US$377 million in bond debt. "This adds noise to a process that is already complicated," Mr. Provencio said. The dispute stems from the privatization of the Northeast Railway. TMM paid US$1.4 billion in 1996 for 80% of the rail company. Citing sale agreements, TMM asked the government in 1997 to return US$ 268 million in value-added taxes to capitalize the railway. The government didn't respond to the claim, and now wants the federal court review. "Some people say this process could take weeks, others believe it could take months, we don't really know how long it could take," according to Mr. Provencio. The government still has a 20% interest in TFM, and has a put option for its non-voting stake that can be exercised October 31 for about US$490 million. At present, TMM would have difficulties financing such a purchase. Expectations of a favorable outcome in the tax dispute were seen as the main reason for TMM's August rejection of a proposed US$412 million sale of its 41% in the rail company to Kansas City Southern (KCS), which already owns 39% of TFM. According to TMM management, under the sale agreement with KCS, TMM stood to lose between US$100 million and US$175 million if the tax rebate dispute was resolved favorably for TFM, because if the government had already sold its 20% of the railway company, the money would go to the new owner. KCS is seeking in U.S. courts to block TMM from canceling the TFM merger agreement. UNEFON: Losses Continue in 3Q03 ------------------------------- Mexican mobile operator continues to report negative results in the third quarter of the year, but this time the figure is much lower compared to the same period a year ago, Business News Americas indicates. In a filing to the local stock exchange on Friday, Unefon revealed a MXN186-million (US$16.6mn) loss for the third quarter, down from a MXN300-million loss in the comparable period in the previous year. Total revenues grew 16% year-on-year to MXN975 million, and were up 7% compared to the previous quarter, thanks to the sale of more airtime and better margins on the sale of handsets. Average revenue per user (ARPU) averaged MXN165 during the third quarter, down from MXN216 in the third quarter of 2002 and MXN175 in the second quarter this year. Ebitda surged 83% year-on-year to 319mn pesos, and was up 9% compared to the second quarter. Ebitda margin was 33%. "The results were good," said Jose Luis Ramirez, senior analyst at Deutsche Ixe. "What investors are focusing on the most is the company's liquidity and cash generation." Unefon and its main supplier Nortel Networks reached an agreement in mid-June to restructure the Company's trade debt. Under the terms of the deal, Unefon paid Nortel US$43 million in cash and the operator's US$325-million debt with Nortel was sold to a group of private investors, with the terms extended to 2013. The Company's major shareholders are Moises Saba and Grupo Salinas subsidiary TV Azteca, with each controlling 46.5% of the Company. Earlier this month, TV Azteca announced plans to separate Unefon and a broadband subsidiary into a separately traded company during the first quarter of 2004. CONTACT: Unefon S.A. De CV Head Office EdificioA Puriferico Sur 4119 Fuentes del Pedregal Mexico DF Mexico 14141 Tel: +52 8582 50000 Fax: +52 8582 5052 Web site: http://www.unefon.com.mx/ Contacts: Engr Moises M. Saba, Chairman Pedro L. Padilla, Vice Chairman *********** 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 * * *