/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/031124.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, November 24, 2003, Vol. 4, Issue 232 Headlines A R G E N T I N A AA2000: Ogden Wants to Transfer 28% Stake to Another Firm AIRBAG: Court Declares Company Bankrupt ALBES: Enters Bankruptcy on Court Orders APSA: Announces Dividend Payout For Nov. 28 CORREO ARGENTINO: Pays No Heed To Government Ruling CRESUD: To Pay Dividends to Shareholders Nov. 28 DIRECTV LA: Files Third Motion To Extend Lease Decision Period CONFORD MITRE: Creditor's Bankruptcy Petition Gets Court Approval CONVIVIR: Court Assigns Receiver to Oversee Bankruptcy CORRUVAL: Quilmes Court Declares Company Bankrupt DILC: Receiver Validates Creditors' Claims in Bankruptcy EMEPLAST: Court Assigns Receiver for Bankruptcy Process FISHOCEANIC: Court Declares Company "Quiebra" FRESNEL: Court Sets Schedule for Bankruptcy Process IMPSAT: Reduces Debt During the 3Q03 INDUSTRIAS PIP: Rosario Tribunal Approves Reorganization Petition MODAPORT: Creditors Urged To Present Proofs of Claims MORESCO HERMANOS: Credit Verification Process Closes December 5 NATFROZ: Commences Reorganization Proceedings NOA COMUNICACIONES: Receiver Verifies Claims SAN DIEGO: Court Sets Date For Informative Assembly TELECOM ARGENTINA: S&P Rates Various Bonds `raD' * Argentine Government Ends Meetings With Seven Banks B E R M U D A GLOBAL CROSSING: Names Dynamic Leaders to Head Enterprise Sales B R A Z I L VESPER: Embratel Gets Purchase Approval From Anatel NET SERVICOS: Seeks To Restructure Debt Soon SABESP: Reveals $1.32B, Five-year Investment C H I L E ENAMI: Court Declares Decree Unconstitutional ENERSIS: Comfortable With 2003 Debt Level, Says Exec SR TELECOM: S&P Lowers Ratings to 'CCC+' D O M I N I C A N R E P U B L I C SEGNA: Regulator Orders Liquidation E L S A L V A D O R MILLICOM INTERNATIONAL: Further Reduces Costs Of Debt MILLICOM INTERNATIONAL: Gets Requisite Consents Pursuant To Offer M E X I C O CFE: To Launch Detection Programs To Prevent Illegal Connections - - - - - - - - ================= A R G E N T I N A ================= AA2000: Ogden Wants to Transfer 28% Stake to Another Firm --------------------------------------------------------- Argentine airport concessionaire Aeropuertos Argentina 2000 (AA2000) told the Buenos Aires stock exchange that it is aware that Ogden Corporation has sought approval from airports regulator Orsna to transfer its 28% stake in AA2000 to Corporacion America Sudamericana, reports Business News Americas. AA2000, which operates 32 airports in Argentina, is formed by Corporacion America Sudamericana (35%), Societa Per Azioni Esercizi Aeroportuali (28%), Simest Spa (8%), Ogden Corporation (28%), and RIVA (1%). But according to the report, Orsna has not ruled on the Ogden request yet in light of local press reports that Ogden had sold its stake to Corporacion America Sudamericana for US$30 million. AA2000 posted a net loss of ARS32.8 million (US$11.4mn) in the first nine months this year, against a net profit of ARS10.3 million in the same period last year. AA2000 posted an operating loss of ARS76.9 million in the first nine months this year due to continued high operating costs and an increase in administrative costs, as well as a 23.1% drop in sales to ARS233 million. AIRBAG: Court Declares Company Bankrupt --------------------------------------- Court No. 22 of Buenos Aires declared Airbag S.A. "Quiebra" or bankrupt, reports Argentine news source Infobae. The city's Clerk No. 43 assists the court on the case. Ms. Cecilia Beatriz Montelvetti, an accountant from Buenos Aires, is assigned as the Company's receiver. Creditors must present their claims for validation before December 26 this year. After the verifications are closed, the receiver will prepare the individual reports, which must be submitted to the court on March 10 next year. The receiver's duties also include the preparation of the general report after the individual reports are processed at court. This report contains a summary of the individual reports, and is due for filing on April 26, 2004. The Company's assets will be liquidated at the end of the process to reimburse its creditors. CONTACT: Cecilia Beatriz Montelvetti Urquiza 2134 Buenos Aires ALBES: Enters Bankruptcy on Court Orders ---------------------------------------- Albes S.A. entered bankruptcy on orders from Buenos Aires Court No. 10. Infobae reports that Clerk No. 20 aids the court on the case, which will end with the liquidation of the Company's assets to pay off creditors. The credit verification period expires February 25 next year. Creditors must present their proofs of claim to the receiver, Mr. Nestor Rodolfo Del Potro, for verification before that date. The receiver will prepare the individual reports on the results of the verifications and submit these to the court on April 12, 2004. The general report is to follow on June 8. CONTACT: Nestor Rodolfo Del Potro Ave Corrientes 1291 Buenos Aires APSA: Announces Dividend Payout For Nov. 28 ------------------------------------------- Shopping mall operator Alto Palermo SA (APSA.BA), a holding of top real estate firm Inversiones y Representaciones SA (IRSA.BA), announced it will pay dividends to shareholders on Nov. 28, relates Dow Jones. In a filing to the local stock exchange Thursday, APSA said it would pay a dividend of ARS0.014/share. According to an IRSA official, APSA stopped paying dividends in 1999 amid Argentina's economic downturn and subsequent financial crisis. The Company has not yet decided whether it will continue issuing dividends beyond the Nov. 28 payout, the official added. APSA reported a first-quarter 2003 loss of ARS3.9 million against a profit of ARS15.3 million in the year-earlier period, citing exchange rate losses. The Company said occupancy and tenant sales have increased for its shopping centers. APSA's shares are up 14.6% for the year. CONTACT: Alto Palermo S.A. (APSA) 2/F 476 Hipolito Yrigoyen Buenos Aires Argentina Phone: +54 11 4344 4600 Home Page: http://www.altopalermo.com.ar Contacts: Eduardo Sergio Elsztain, Chairman Marcos Marcelo Mindlin , Vice Chairman Aaron Gabriel Juejati, Vice Chairman CORREO ARGENTINO: Pays No Heed To Government Ruling --------------------------------------------------- Correo Argentino SA published an advertisement in Argentine newspapers Thursday stating its intention to ignore the government's decision to strip it of its national postal concession and assure the public of continued service, relates Dow Jones. "We do not ratify the decree (which rescinds the contract), but we shareholders and directors of Correo Argentino SA have a firm disposition so that the postal service continues being provided in a regular and efficient form," the advertisement said. Government officials announced their decision Wednesday, faulting the Company for poor service and amassing a debt to the state of ARS450 million. According to the decree, a team of four officials, headed by legislator Eduardo Di Cola, will run Correo Argentino for 180 days, after which the service will be re- privatized. The government further said that the Company's employees would keep their jobs. Correo Argentino has said the government owes the Company money and has impeded its debt restructuring by refusing to back its request for an extension of bankruptcy protection. The Company has ARS900 million in debt and filed for bankruptcy in 2001. It is not yet known, however, whether Correo Argentino will take legal action against the decree. Correo Argentino's lawyers are reportedly weighing their options and sought to characterize the advertisement as a statement of determination to continue operations as per normal until the situation is clearer. The ad is less of a legal rejection of the decree than a decision to ignore it, they said. Correo's contract was established in 1997, making the Company the world's first fully privatized mail service. It is owned by Sideco Americana, a consortium run by Argentine businessman Francisco Macri. CRESUD: To Pay Dividends to Shareholders Nov. 28 ------------------------------------------------ Argentine farming company Cresud SACIF, a holding of top real estate firm Inversiones y Representaciones SA (IRSA.BA), said Thursday it will pay dividends to its shareholders on Nov. 28. Citing a filing to the local stock exchange Thursday, Dow Jones reports that Cresud will pay a dividend of ARS0.012 a share ($1=ARS2.875). An IRSA official said Thursday that Cresud stopped in 2001 amid Argentina's economic downturn and subsequent financial crisis. The Company is yet to decide whether it will continue issuing dividends beyond the Nov. 28 payout, said the official. Cresud posted a loss of ARS2.0 million in the first fiscal quarter of 2003, compared with a profit of ARS9.1 million in the same quarter last year, blaming a decrease in crop sales. The Company's negative result came despite a boom in Argentina's agricultural sector generated by last year's 70% depreciation of the peso, which made farm exports competitive and pushed up the value of agricultural land. Cresud's shares have still performed well this year, soaring 106.4% since the end of 2002. CONTACT: Gustavo Mariani - Finance Manager +54 11 4323 - 7413 gm@irsa.com.ar URL: www.cresud.com.ar DIRECTV LA: Files Third Motion To Extend Lease Decision Period -------------------------------------------------------------- DirecTV Latin America LLC asked the Court to extend the time by which it must assume or reject unexpired non-residential property leases, through and including March 1, 2004. Alfred Villoch, III, Esq., at Young, Conaway, Stargatt & Taylor, LLP, in Wilmington, Delaware, told the Court that the Debtor is a party to these unexpired non-residential property leases: Leased Premises Lessor --------------- ------ 2400 East Commercial Blvd. CB Richard Ellis Fort Lauderdale, Florida 2400 East Commercial Blvd. 33308 Suite 708 Fort Lauderdale, Florida 33308 New Town Commerce Center Iron Mountain 3821 SW 47th Avenue New Town Commerce Center Fort Lauderdale, Florida 3821 SW 47th Avenue 33314 Fort Lauderdale, Florida 33314 Attn: Daniel Melendez The Debtor leases the premises for its corporate offices and headquarters and for its warehouse. Mr. Villoch assured the Court that the Debtor has performed its postpetition obligations under the Unexpired Leases in a timely manner. The Unexpired Leases are valuable assets of the Debtor's estate and are integral to the continued operation of the Debtor's business. Mr. Villoch related that the Debtor is presently working with the Official Committee of Unsecured Creditors and Hughes Electronics Corporation to draft and file a consensual reorganization plan. Mr. Villoch contended that forcing the Debtor to assume the Unexpired Leases would subject the estate to potential unnecessary administrative expense. Alternatively, forcing the Debtor to reject the Unexpired Leases, and seek a new office and storage space would be extremely disruptive to its business and reorganization efforts. The Debtor's determination to assume or reject the Unexpired Leases is, therefore, subject to the ultimate formulation and confirmation of a reorganization plan. Mr. Villoch pointed out that the extension will promote the Debtor's ability to maximize the value of its estate, avoid the incurrence of needless administrative expenses and other claims on the estate by minimizing the likelihood of an inadvertent rejection of a valuable lease or, alternatively, the premature assumption of a burdensome one. The Court will convene a hearing on December 15, 2003 to consider the Debtor's request. By application of Del.Bankr.LR 9006-2, the lease decision deadline is automatically extended through the conclusion of that hearing. (DirecTV Latin America Bankruptcy News, Issue No. 15; Bankruptcy Creditors' Service, Inc., 215/945- 7000) CONFORD MITRE: Creditor's Bankruptcy Petition Gets Court Approval ----------------------------------------------------------------- Domotecnica S.A. successfully sought the bankruptcy of its debtor, Conford Mitre S.A.. Argentine newspaper La Nacion reports that Judge Gonzalez of Buenos Aires Court No. 8 declared Conford Mitre "Quiebra" recently. Working with Clerk No. 16, Dr. Sarabia, the court assigned local accountant Juan Carlos Rama as receiver for the process. Mr. Rama will verify creditors' claims to determine the nature and amount of the Company's debts. The verification period ends on February 26 next year, Infobae relates. The receiver's tasks include the preparation of the individual and general reports on the process. The report, however, did not mention whether the court has set the submission deadlines for these reports. CONTACT: Conford Mitre S.A. Montiel 1334 Buenos Aires Juan Carlos Rama Viamonte 1458 Buenos Aires CONVIVIR: Court Assigns Receiver to Oversee Bankruptcy ------------------------------------------------------ Ms. Maria Paulina Alva, an accountant from Buenos Aires, is receiver for the bankruptcy of local company Covivir S.A., local news portal Infobae relates. The city's Court No. 4 handles the Company's case with assistance from Clerk No. 7. The receiver is instructed to verify creditors' claims until February 10 next year. This is done to determine the nature and amount of the Company's debts. The receiver is also required to prepare the individual and general reports but the source did not mention the filing deadlines. CONTACT: Maria Paulina Alva Montevideo 536 Buenos Aires CORRUVAL: Quilmes Court Declares Company Bankrupt ------------------------------------------------- Court No. 6 of the Civil and Commercial Tribunal of Quilmes ordered the bankruptcy of local company Corruval S.R.L., Argentine news portal Infobae reports. The Company's receiver, Ms. Graciela Cattelan, will oversee the bankruptcy proceedings. The receiver assigned is tasked with the validation of creditors' claims and the preparation of the individual and general reports. Infobae, however, did not reveal whether the court has set the filing deadlines for these. CONTACT: Corruval S.R.L. Rio Salado 544 Ezpeleta, Quilmes Graciela Cattelan Alsina 180 Quilmes DILC: Receiver Validates Creditors' Claims in Bankruptcy -------------------------------------------------------- Mr. Jose Larrory, the receiver designated to oversee the bankruptcy of Argentine company Dilc S.R.L., is verifying creditors' claims until February 10 next year. This part of the bankruptcy process determines the nature and amount of the Company's debts. Buenos Aires Court No. 1 issued the bankruptcy order, Infobae relates. Clerk No. 2 assists the court on the case. The Court will order the liquidation of the Company's assets to reimburse creditors. CONTACT: Dilc S.R.L. Ave Independencia 2783 Buenos Aires Jose Larrory Viamonte 1348 Buenos Aires EMEPLAST: Court Assigns Receiver for Bankruptcy Process ------------------------------------------------------- Buenos Aires Court No. 4 assigned Mario Leizerow as receiver for the bankruptcy of local company Emeplast S.R.L. Infobae relates. The receiver will authenticate credit claims and prepare the individual and general reports. Assisted by Clerk No. 7, the Court set the verification period to end February 2 next year. In the meantime, the court has not set the filing deadlines of the receiver's reports. CONTACT: Mario Leizerow Ave Corrientes 1250 Buenos Aires FISHOCEANIC: Court Declares Company "Quiebra" --------------------------------------------- Court No. 1 of Buenos Aires declared local company Fishoceanic S.A. "Quiebra". Argentine news source Infobae relates that the city's Clerk No. 1 aids the court on the case. The Court assigned Mr. Mauricio Gola, a local accountant, as the Company's receiver. He will authenticate creditors' claims until February 5 next year. The receiver is also required to prepare the individual and general reports but the source did not mention whether the court has set the deadlines for the submission of these reports. CONTACT: Mauricio Gola Maipu 509 Buenos Aires FRESNEL: Court Sets Schedule for Bankruptcy Process --------------------------------------------------- Buenos Aires Court No. 24 set the schedule for the bankruptcy process of local Company Fresnel S.A., reports Infobae. Working with Clerk No. 47, the court instructed the receiver, MR. Jorge Cosoli, to verify creditors' claims until February 27 next year. The receiver will prepare the individual reports after the credit verifications are closed. These reports must be filed at the court on March 29, 2004, followed by the general report on April 29. The general report is a summary of the individual reports after being processed at court. The Company's assets will be liquidated at the end of the process to reimburse creditors. Payments will be based on the results of the credit verification process. CONTACT: Jorge Cosoli Marcelo T de Alvear 1364 Buenos Aires IMPSAT: Reduces Debt During the 3Q03 ------------------------------------ IMPSAT Fiber Networks, Inc. ("Impsat" or the "Company"), a leading provider of integrated broadband data, Internet and voice telecommunications services in Latin America, announced its results for the third quarter of 2003. All figures are in U.S. dollars. THIRD QUARTER 2003 HIGHLIGHTS -- Net revenues remained stable and totaled $56.4 million for the third quarter of 2003. -- EBITDA totaled $11.1 million for the third quarter of 2003, as compared to $7.4 million for the second quarter of 2003. For the nine months ended September 30, 2003, EBITDA was $32 million, a 5% increase over EBITDA for the corresponding period of 2002. -- The Company expects EBITDA for the full year 2003 to be in the range of $36 to $40 million. -- For the nine months ended September 30, 2003, operating expenses totaled $161.2 million, a decrease of 17% from the same period during 2002. -- Available cash, cash equivalents and trading investments at September 30, 2003 totaled $64.6 million, an increase of $9 million from December 31, 2002. -- Total debt was reduced during the third quarter of 2003 by $2.8 million to $257.5 million at September 30, 2003, primarily due to principal repayments. -- Operating activities provided $11.2 million of additional cash during the first nine months of 2003 as compared with the same period of 2002. THIRD QUARTER 2003 RESULTS Overview The Company is pleased to report the result of its operations for the third quarter of 2003. Net revenues for the third quarter of 2003 totaled $56.4 million, a 2% increase over net revenues for third quarter of 2002. Net revenues for the nine months ending September 30, 2003 amounted to $168.9. Operating expenses for the third quarter of 2003 totaled $50.2 million, a 17% decrease compared to operating expenses for the same period in 2002. For the nine months ended September 30, 2003, operating expenses decreased by $33 million or 17% from the same period in 2002. Commenting on the Company's results, Chief Executive Officer Ricardo Verdaguer, said: "We are very pleased with the performance of the Company during the third quarter of 2003. Our improved operational and financial results reflect our efforts to deliver value to our customers and shareholders. We believe our performance since we completed our financial restructuring has positioned us to continue to improve for the remainder of 2003 and into 2004." Revenues Total net revenues for the three and nine months ended September 30, 2003 equaled $56.4 million and $168.9 million. This compares to total net revenues of $55.3 million and $177.1 million for the corresponding periods in 2002. Our total net revenues for the three months ended June 30, 2003 also totaled $56.4 million. The increase in our net revenues during the third quarter of 2003 compared to the same period in 2002 was principally due to the relative appreciation of the Argentine peso and the Brazilian real during the third quarter in 2003 as compared to the same quarter in 2002. Broadband and satellite revenues totaled $123.9 million and represented 73% of total net revenues from services during the first nine months of 2003. During the same period of 2002, Broadband and satellite revenues totaled $133.1 million. This decrease is the result of lower satellite-based service volume and carriers. Internet revenues decreased 2% as compared to the same quarter of 2002 principally due to competition and pricing pressure. Telephony revenues have grown for the last four quarters. Our telephony services revenues increased by 66% as compared to the third quarter of 2002 and 5% as compared to the second quarter of 2003, due to increased delivery of switched voice services to corporate customers. Revenues from value added services increased principally due to the appreciation of the Argentine peso during the second and third quarters of 2003 as compared to the same periods in 2002 and also due to increased services to corporate customers. Three Months Ended September 30, ----------------------------------- 2002 % change(1) 2003 ----------- ----------- ----------- (dollar amounts in thousands) Broadband and satellite $42,318 (3.7)% $40,754 Internet 6,332 (2.1) 6,199 Value added services(2) 3,408 18.3 4,031 Telephony 2,915 66.2 4,844 ----------- ----------- Total net revenues from services $54,973 1.6 $55,828 =========== =========== (1) Percentage increase (decrease) in third quarter of 2003 compared to third quarter of 2002. (2) Includes data center services and systems integration and other information technology services. Revenue Breakdown by Country Although there are indications that the Argentine economy has begun to emerge from the recession that has affected the country since 1999, it continues to face severe challenges and Impsat Argentina's financial condition and results of operations continue to be negatively affected by the political and social uncertainty and economic weakness that affect Argentina. Notwithstanding the above, our net revenues at Impsat Argentina (including intercompany transactions) increased by 16% totaling $15.8 million for the three months ended September 30, 2003 as compared to $13.6 million from the corresponding period of 2002. Our total net revenues from services at Impsat Argentina for the nine-month period ended September 30, 2003 totaled $46.1 million, an increase of $2.4 million or 5.4% compared to the corresponding period in 2002. Revenues of Impsat Argentina accounted for 25% of the total net revenues of the Company. Impsat Brazil's total revenues from services (including intercompany transactions) represented 13% of the Company's total revenues and totaled $8.1 million during the third quarter of 2003, an increase of 2.1% compared to the similar period of 2002. For the nine months ended on September 30, 2003, revenues at Impsat Brazil totaled $23.2 million. Revenues at Impsat Venezuela equaled $8.7 million and $26.3 million for the third quarter and first nine months of 2003, compared to $7.6 million and $23.2 million for the same periods in 2002. In Colombia, total revenues from services for the third quarter of 2003 were $13.4 million, compared to $14.2 million for the same quarter in 2002. Impsat Colombia's revenues represented 22% of total Company revenues for the third quarter of 2003. Operating Expenses Operating expenses for the third quarter of 2003 decreased by $10.3 million or 17.1% as compared to the same period in 2002. Total operating expenses for the nine-month period ended September 30, 2003 totaled $161.2 million, a $33.1 million decrease from the same period of the previous year. This decrease results from our continued efforts to streamline our operating expenses, lower depreciation expenses as a result of adjustments in our depreciable assets and despite appreciation of local currencies in Argentina and Brazil. Direct costs for the third quarter and first nine months of 2003 totaled $27.1 million and $83.5 million, an increase of $0.8 million or 2.9% and a decrease of $4.7 million or 5.3% compared to the same periods in 2002. Salaries and wages for the three and nine months ended September 30, 2003 totaled $12.0 million and $34.6 million, an increase of $1.1 million or 10.4% and a decrease of $1.9 million or 5.3%, from the same periods in 2002. The decrease in these costs during the nine-month period in 2003 was due, in part, to the effect on such costs of the relative devaluation of local currencies in Brazil, Colombia and Venezuela. The increase in salaries and wages costs for the third quarter of 2003 was principally due to the impact (in U.S. dollar terms) of the relative appreciation of the Argentine peso and the Brazilian real during the third quarter in 2003 as compared to the same quarter in 2002. Our selling general and administrative expenses (SG&A) totaled $6.3 million and $18.9 million for the three and nine months ended September 30, 2003, decreases of $0.4 million or 6.3% and $3.1 million or 14.2% compared to the same periods in 2002. The decline in our SG&A expenses for the first nine months of 2003 is due principally to a decrease in our publicity and promotion costs, the effect of the period over period relative devaluation of local currencies in Brazil, Colombia and Venezuela against the U.S. dollar, and overall cost control measures undertaken by management. Depreciation and amortization expenses for the three months and nine months ended September 30, 2003 totaled $10.3 million and $38.5 million. This represents a decrease of $6.4 million or 38.3% and $25.5 million or 39.8% compared to depreciation and amortization for the corresponding periods in 2002. The decrease in depreciation and amortization is primarily due to the reduction in the value of our depreciable fixed asset base in connection with our Chapter 11 reorganization. Operating expenses also included non-recurring gains on extinguishment of debt of $5.5 million during the nine months ended September 30, 2003 compared to a gain of zero during the same period in 2002. This gain is attributable to our settlement in full of certain of our operating subsidiary vendor financing obligations that were not resolved as part of the restructuring plan. Effect of Foreign Exchange Losses and Gains We recorded a net loss on foreign exchange for the three months ended September 30, 2003 of $3.6 million and a net gain on foreign exchange for the nine months ended September 30, 2003 of $27.8 million. The net gain on foreign exchange for the nine months ended September 30, 2003 reflects primarily the effect of the appreciation during the first nine months of 2003 of the Argentine peso and the Brazilian real on the book value of our monetary assets and liabilities in Argentina and Brazil. Operating Income (Loss) and Net Income (Loss) For the three and nine months ended September 30, 2003, we recorded operating income of $6.2 million and $7.7 million, compared to operating losses of $5.3 million and $17.2 million for the same periods in 2002. For the three months ended September 30, 2003 we recorded a net loss of $3.0 million, and for the nine months ended September 30, 2003 we recorded net income of $750.3 million. This compares to net losses of $92.7 million and $236.8 million for the same periods in 2002. Our reduced net losses and increased net income for the periods in 2003 were principally due to the effects of the extraordinary gain on extinguishment of indebtedness pursuant to the restructuring plan, and additional gain on extinguishment of debt. EBITDA The Company recorded EBITDA for the third quarter of 2003 totaling $11.1 million. Total EBITDA for the nine months ended September 30, 2003 totaled $32 million, an increase of $1.6 million or 5% as compared to the same period in 2002. EBITDA margin was 20% for the third quarter of 2003 and 19% for the first nine months of 2003. The improvement in EBITDA, compared to the second quarter of 2003, reflects decreases in total direct costs and SG&A expenses. In light of the current macroeconomic conditions and operating performance, the Company expects total EBITDA for 2003 to be in the range of $36 to $40 million. Liquidity and Capital Resources Our total cash, cash equivalents and trading investments at September 30, 2003 totaled $64.6 million. This compares to cash, cash equivalents and trading investments of $59.2 million at September 30, 2002, $55.6 million as of December 31, 2002, and $63.8 million (with zero trading investments) at June 30, 2003. Operating activities provided $11.2 million of additional cash during the first nine months of 2003 as compared with the same period of 2002. Cash flow provided by operating activities during the first nine months of 2003 accounted for $30.5 million compared to $19.3 million during the corresponding period of 2002. Non-GAAP Financial Measures The Company presents EBITDA as a supplemental measure of performance because it believes that EBITDA provides a more complete understanding of our operating performance before the impact of investing and financing transactions. EBITDA and EBITDA margins are among the more significant factors in management's evaluation of Company-wide performance. EBITDA can be computed by adding depreciation and amortization to operating income (loss), excluding gains on extinguishment of debt. Reconciliation of EBITDA to Operating Income (Loss) is presented in Appendix I Supplemental Financial Information in this Press Release. EBITDA (earnings before interest, taxes, depreciation, amortization, and non-recurring items) should not be considered as an alternative to any measure of operating results as promulgated under accounting principles generally accepted in the United States such as operating income or net income, nor should it be considered as an indicator of our overall financial performance. EBITDA does not fully consider the impact of investing or financing transactions as it specifically excludes depreciation and interest charges, which should also be considered in the overall evaluation of results. Moreover, our method for calculating EBITDA may differ from the method utilized by other companies and therefore comparability may be limited. Impsat Fiber Networks, Inc. is a leading provider of fully integrated broadband data, Internet and voice telecommunications services in Latin America. Impsat operates an extensive pan-Latin American high capacity broadband network in Brazil, Argentina, Chile and Colombia using advanced technologies, including IP/ATM switching, DWDM, and non-zero dispersion fiber optics. The Company has also deployed thirteen facilities to provide hosting services Impsat currently provides services to more than 2,700 national and multinational companies, government entities and wholesale services to carriers, ISPs and other service providers throughout the region. The Company has local operations in Argentina, Colombia, Venezuela, Ecuador, Brazil, the United States, Chile and Peru. Visit us at www.impsat.com. To see financial statements: http://bankrupt.com/misc/IMPSAT.htm CONTACT: Impsat Fiber Networks, Inc. Hector Alonso, Chief Financial Officer Facundo Castro, Investor Relations Phone: 54.11.5170.3700 Email: www.impsat.com Citigate Financial Intelligence John McInerney/ Robin Weinberg Phone: 201-499-3567 INDUSTRIAS PIP: Rosario Tribunal Approves Reorganization Petition ----------------------------------------------------------------- Court No. 5 of the Civil and Commercial Tribunal of Rosario in Santa Fe, Argentina, approved a motion for "Concurso Preventivo" filed by local company Industrias P.I.P. S.R.L., reports local news portal Infobae. The Company starts its reorganization process with the verification of creditors' claims to determine the characteristics of its debts. The receiver, Mr. Osvaldo Luis Depiante, a local accountant, is validating the claims. He will also prepare the individual and general reports on the process. However, Infobae did not reveal whether the court has set the schedule for the reorganization proceedings. CONTACT: Industrias P.I.P. S.R.L. Ruta Nacional Niro 7km 661 Justo Daract (San Luis) Osvaldo Luis Depiante Corrientes 751 Rosario, Santa Fe MODAPORT: Creditors Urged To Present Proofs of Claims ----------------------------------------------------- Creditors of Argentine company Modaport S.A. must present their proofs of claims to the Company's receiver for validation before March 11, 2004, Infobae suggests. Failure to have their claims authenticated means disqualification from payments to be made from proceeds of the liquidation of the Company's assets. The Company's receiver, Ms. Mariana Tynik, will prepare the individual reports upon completion of the verifications. She will also prepare a general report after the individual reports are processed at Buenos Aires Court No. 17, which handles the Company's case with the aid of Clerk No. 33. The filing deadlines for the receiver's reports remain unknown. CONTACT: Modaport S.A. Ave Corrientes 1250 Buenos Aires Mariana Tynik Ave Rivadavia 10444 Buenos Aires MORESCO HERMANOS: Credit Verification Process Closes December 5 --------------------------------------------------------------- The credit verification period for the bankruptcy of Quilmes- based Moresco Hermanos S.R.L. ends December 5 this year. Argentine news portal Infobae reveals that the Company's receiver, Ms. Patricia Monica Narducci, will prepare the individual reports, which are due for filing on February 24, after the verifications are closed. The receiver will also prepare a general report after the individual reports are processed at court. This report must be submitted to the court on April 7, 2004. The Company's assets may be liquidated shortly afterwards. Proceeds would go towards reimbursement of creditors, based on the results of the verification process. Court No. 1 of the Civil and Commercial Tribunal of Quilmes handles the Company's case, Infobae adds. CONTACT: Moresco Hermanos S.R.L. Storni 30 Florencio Varela Patricia Monica Narducci Lavalle 328 Quilmes NATFROZ: Commences Reorganization Proceedings --------------------------------------------- Natfroz S.R.L., which is based in Buenos Aires, has begun its reorganization process. The Company's receiver, Mr. Alberto Francisco Romeo, is currently verifying creditors' claims. Argentine news portal Infobae relates that the verification period ends on December 5 this year. The city's Court No. 8 granted the Company permission to reorganize by approving its motion for "Concurso Preventivo". Clerk No. 16 assists the court on the case. The court is yet to schedule the deadlines for the filing of the receiver's reports. CONTACT: Alberto Francisco Romeo Parana 275 Buenos Aires NOA COMUNICACIONES: Receiver Verifies Claims -------------------------------------------- Creditors of Argentine-based Noa Comunicaciones S.A. must present their proofs of claim to the Company's receiver, Ms. Maria Alicia Bertolot, for verification. Local news source Infobae reveals that the credit verification period ends February 6 next year. Buenos Aires Court No. 8, which handles the Company's case, requires the receiver to file the individual reports on March 19, 2004. The receiver will also prepare a general report, due on May 6 next year, after the individual reports are processed at court. Clerk No. 15 works with the court on the case, Infobae adds. CONTACT: Maria Alicia Bertolot Sarmiento 2593 Buenos Aires SAN DIEGO: Court Sets Date For Informative Assembly --------------------------------------------------- The Civil and Commercial Tribunal of San Luis in Argentina announced that the informative assembly for the reorganization of local company San Diego S.R.L. will be held on April 23 next year. The informative assembly is one of the last processes in a reorganization. A report by Argentine news portal Infobae indicates that the province's Court No. 1 handles the Company's case. The reorganization began with the verification of creditors' claims to ascertain the Company's debts. The receiver the prepares the individual and general reports, as required by court. The informative assembly takes place after the general report has been filed at court. TELECOM ARGENTINA: S&P Rates Various Bonds `raD' ------------------------------------------------ Standard & Poor's International Ratings, Ltd. assigned Monday default ratings to a number of corporate bonds issued by Telecom Argentina Stet-France Telecom S.A.. The `raD' rating was based on the Company's finances as of the end of September 30 this year. A report from the country's securities regulator, the Comision Nacional de Valores, enumerated the affected bonds. These include: -- US$1.5 billion of "Programa Global de ONs autorizado por Asamblea de fecha 16.3.99" due on August 2 next year. These were classified under "Program". -- EUR250 of "Serie 1, emitida bajo el Progr. Global de Obligaciones Negociables vigente hasta Septiembre del 2004", classified under "Series and/or class". The bonds matured in April this year. -- EUR190 of "Serie 2, emitida bajo el Programa de Obligaciones Negociables (D) con vencimiento en Septiembre del 2004", under "series and/or class". These bonds mature on July 2 next year. -- US$126 million of "Serie C emitida bajo el Programa Global de Obligaciones Negociables vencido en agosto de 1999", due in November last year. The bonds are under "Series and/or Class". -- US$100 million of bonds described as "Serie E emitida bajo el Programa Global de Obligaciones Negociables vencido en agosto de 1999", due on May 2, 2005. These are also under the "Series and/or Class" classification. -- ITL40 billion worth of "Serie F emitida bajo el Programa Global de Obligaciones Negociables vencido en agosto de 1999", classified under "Series and/or Class". The bonds mature on May 2, 2007. -- ITL40 billion of bonds called "Serie H emitida bajo el Programa Global de Obligaciones Negociables vencido en agosto de 1999", due on March 3, 2008. These are also under "Series and/or Class". -- EUR200 million of "Serie I emitida bajo el Programa Global de Obligaciones Negociables vencido en agosto de 1999" bonds, under "series and/or class". These bonds mature on April 1 next year. -- EUR250 million of bonds called "Serie K, emitida bajo el Programa Global de Obligaciones Negociables vencido en agosto de 1999", also under the classification "Series and/or class". The bonds matured in July last year. The ratings agency said that the `raD' rating is assigned to financial obligations that are currently in default or whose obligor has filed for bankruptcy protection, the ratings agency related. The rating may also be issued when interest or principal payments are not made on the date due, even if the applicable grace period has not expired, unless S&P has reason to believe that payments will be made during such grace period. * Argentine Government Ends Meetings With Seven Banks ---------------------------------------------------- Argentina's Economy Ministry said that the government has concluded 10 days of meetings with representatives of seven investment banks that expressed interest in the country's proposal to help manage a plan to restructure $106 billion in defaulted foreign debt, relates Dow Jones. The ministry revealed in a brief press statement that it had received visits from senior representatives of each bank and that the meetings were to provide a "clarification and deepening" of their proposals. "The process of selection will continue internally during the next week," the statement said. The seven banks in question are ABN Amro (N.AMB), Barclays (BCS), Dresdner Kleinwort Wasserstein (DRB.YY), Goldman Sachs (GS), Lehman Brothers (LEH), Morgan Stanley (MWD) and UBS (UBS). ============= B E R M U D A ============= GLOBAL CROSSING: Names Dynamic Leaders to Head Enterprise Sales --------------------------------------------------------------- Continuing its preparations for imminent emergence from Chapter 11, Global Crossing announced Thursday the appointment of Paul O'Brien, founder of the Arden Group and former president of GTE Telecom, as senior vice president of enterprise sales. David Carey, who most recently led the enterprise sales division, will serve as executive vice president overseeing a group focused on strategy and corporate development. "We're committed to growing our presence in the critical enterprise sector," said John Legere, Global Crossing's chief executive officer. "Paul is a telecommunications star who will work diligently to boost sales and build on our success in bringing global businesses state-of-the-art solutions and a superior customer experience." O'Brien has more than 20 years of experience in the telecommunications and IT fields. Prior to joining Global Crossing, he founded the Arden Group, an organization that specializes in providing operations expertise to the global technology/IT industry. O'Brien served as president of GTE Telecom and senior vice president of sales and marketing for GTE-Internetworking, where he increased the company's revenues from $750 million to more than $1.2 billion in just three years. He was a member of the company's management committee overseeing the construction of one of the world's largest IP backbone networks. He was also a pivotal player in launching Genuity, GTE's Internetworking spin- off, and led the initial branding of the business as well as its enterprise and carrier sales organizations. Before Genuity, he was GTE's vice president and general manager of the IPTelecom start-up. O'Brien has also held executive positions at NCR, where he was vice president and general manager of the communications industry business unit; Cincinnati Bell, where he was vice president of marketing; and AT&T, where he was the New England area manager. O'Brien was chairman of the Conference Board's marketing council and has served as a trustee for the Hamilton County, Ohio Business Incubator. He also served as a member of the Bellcore (SAIC) marketing officers group. In addition to his Global Crossing duties, O'Brien currently serves as a director of EnvoyWorldWide, which provides real-time interaction management services to deliver time-sensitive notifications, enabling customers to streamline supply chains and ensure business continuity. Carey, a telecom veteran with more than 28 years of experience, has served in a variety of capacities at Global Crossing, including executive vice president of enterprise sales and senior vice president of global network development and business development. He will now turn his attention towards refining Global Crossing's strategy and corporate development. "Strategy and corporate development's importance to the future of Global Crossing cannot be underestimated, and Dave's wide-ranging experience gives him the strategy, insight and vision to focus on these important initiatives," continued Legere. Before joining Global Crossing, Carey served as senior vice president, marketing and chief marketing officer for Frontier Corporation's business lines. Prior to that, Mr. Carey spent seven years in the energy industry, serving as President & CEO of LG&E Natural Inc., a subsidiary of LG&E Energy Corp. based in Louisville, Kentucky. Carey began his career with AT&T. During his 15 years there, he held a wide range of executive positions in marketing, sales, operations and personnel. ABOUT GLOBAL CROSSING Global Crossing provides telecommunications solutions over the world's first integrated global IP-based network, which reaches 27 countries and more than 200 major cities around the globe. Global Crossing serves many of the world's largest corporations, providing a full range of managed data and voice products and services. On January 28, 2002, Global Crossing Ltd. and certain of its subsidiaries (excluding Asia Global Crossing and its subsidiaries) commenced Chapter 11 cases in the United States Bankruptcy Court for the Southern District of New York (Bankruptcy Court) and coordinated proceedings in the Supreme Court of Bermuda (Bermuda Court). On the same date, the Bermuda Court granted an order appointing joint provisional liquidators with the power to oversee the continuation and reorganization of the Bermuda-incorporated companies' businesses under the control of their boards of directors and under the supervision of the Bankruptcy Court and the Bermuda Court. Additional Global Crossing subsidiaries commenced Chapter 11 cases on April 23, August 4 and August 30, 2002, with the Bermuda incorporated subsidiaries filing coordinated insolvency proceedings in the Bermuda Court. The administration of all the cases filed subsequent to Global Crossing's initial filing on January 28, 2002 has been consolidated with that of the cases commenced on January 28, 2002. Global Crossing's Plan of Reorganization, which was confirmed by the Bankruptcy Court on December 26, 2002, does not include a capital structure in which existing common or preferred equity will retain any value. On November 18, 2002, Asia Global Crossing Ltd., a majority-owned subsidiary of Global Crossing, and its subsidiary, Asia Global Crossing Development Co., commenced Chapter 11 cases in the United States Bankruptcy Court for the Southern District of New York and coordinated proceedings in the Supreme Court of Bermuda, both of which are separate from the cases of Global Crossing. Asia Global Crossing has announced that no recovery is expected for Asia Global Crossing's shareholders. Asia Netcom, a company organized by China Netcom Corporation (Hong Kong) on behalf of a consortium of investors, has acquired substantially all of Asia Global Crossing's operating subsidiaries except Pacific Crossing Ltd., a majority-owned subsidiary of Asia Global Crossing that filed separate bankruptcy proceedings on July 19, 2002. Global Crossing no longer has control of or effective ownership in any of the assets formerly operated by Asia Global Crossing. CONTACT: GLOBAL CROSSING Press Contacts Becky Yeamans + 1 973-937-0155 PR@globalcrossing.com Analysts/Investors Contact Ken Simril + 1 310-385-3838 investors@globalcrossing.com URL: www.globalcrossing.com =========== B R A Z I L =========== VESPER: Embratel Gets Purchase Approval From Anatel --------------------------------------------------- Brazilian telco Embratel Participacoes (NYSE: EMT) obtained approval from the country's telecoms regulator Anatel to purchase local service operator Vesper from California's Qualcomm Inc. Embratel announced the proposed purchase in mid-August. Under the initial terms of the deal, Vesper will sell its network of transmission towers in Brazil to Qualcomm for an undisclosed sum. The California company will then lease them back to Embratel, initially for 10 years. Vesper will then use the funds from the tower sale to pay off its debt, much of it with Qualcomm, so that Embratel assumes the company debt-free. Embratel will not have to make any cash payments to acquire Vesper. Bankrupt U.S. firm WorldCom Inc., also known as MCI, controls Embratel via a 51.79% voting stake, and has announced plans to sell it. CONTACT: Silvia M.R. Pereira, Investor Relations Phone: (55 21) 2121-9662 Fax: (55 21) 2121-6388 Email: silvia.pereira@embratel.com.br invest@embratel.com.br NET SERVICOS: Seeks To Restructure Debt Soon -------------------------------------------- Net Servicos de Comunicacao, Brazil's biggest pay-television company, plans to restructure its heavy debt load soon, Dow Jones reports, citing a company executive. Company head Francisco Valim revealed Wednesday that Net Servicos was looking at a number of possibilities such as swapping debt for equity and rescheduling payments over a longer period. "I can't discuss the details of the confidential agreement. All I can say is that a deal will be reached shortly," Valim said. Net Servicos saw its total debt rise to US$345.8 million as of Sept. 30 this year from a total of US$339.5 million in the previous year. Much of that debt - 63.4% at the end of the third quarter - is denominated in U.S. dollars. The Company, which is a unit of Globo Participacoes SA, Brazil's largest media company, posted a loss of US$25.1 million in the third quarter, compared with a net profit of US$20.4 million in the previous quarter. CONTACT: Net Servicos de Comunicacao S.A. Marcio Minoru Miyakava +5511-5186-2811 minoru@netservicos.com.br Lu Yuan Fang +5511-5186-2637 lfang@netservicos.com.br Web site: http://www.netservicos.com SABESP: Reveals $1.32B, Five-year Investment -------------------------------------------- Sao Paulo state water utility Sabesp plans to invest BRL3.9 billion (US$1.32bn) in the next five years to be split equally between drinking water and sewerage works, Business News Americas reports, citing a company executive. Speaking Wednesday during a conference call to discuss third quarter results, Sabesp investor relations manager Helmut Bossert said that on average, some BRL650 million will be spent annually. With regards to plans to serve metropolitan region municipality Sao Bernardo de Campo, Bossert said the utility expects to conclude the economic evaluation next week, and could ink an agreement by end-December. He said that although Sabesp currently provides bulk water to the municipality, higher prices from providing water and sewerage service could increase the utility's revenue 2.5-3%. Sabesp, Brazil's largest water utility in terms of users, posted a net profit of BRL28.9 million in the third quarter of 2003, versus a loss of BRL664 million in the same period a year ago. For the quarter, revenue was up 8.8% to BRL1.08 billion and operating profit closed at BRL55.6 million, versus a loss of BRL979 million in 3Q02. ========= C H I L E ========= ENAMI: Court Declares Decree Unconstitutional --------------------------------------------- A Chilean court decided last week that the decree that restructured the board of state minerals company Enami was unconstitutional, reports Business News Americas. In September, the Chilean government issued a decree ordering the downsizing and reshaping of Enami's board, with the number of directors being cut to seven from nine. However, last week the country's constitutional court accepted a complaint filed by lawmakers that the modifications need new legislation, and cannot be enacted by decree. Chile's private sector mining society Sonami applauded the court decision, saying it valued the fact that the issue "which generated surprise and lack of trust in the sector" has been resolved through the legal process. At present, the country's congress is in talks regarding the transfer of Enami's principal asset, the Ventanas copper smelter- refinery in central Chile, to state copper corporation Codelco. The switch is aimed at helping Enami resolve its US$480-million debt problem. 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 ENERSIS: Comfortable With 2003 Debt Level, Says Exec ---------------------------------------------------- Ricardo Alvial, Enersis SA's Chief Investment Officer, said Thursday that the Chilean utility is comfortable with its 2003 debt level and won't make any further cash calls for 2004, relates Dow Jones. "We're comfortable with the net debt of US$6.3 billion we anticipate for this year, and we'd be happy to finish 2004 around that level," said Alvial, who was speaking on the sidelines of the Latibex conference held by Madrid's stock exchange for Latin American companies. Enersis' net debt at the end of last year stood at US$9.8 billion. The Company has obtained US$5 billion in loans and cash this year through a restructuring plan that included a US$2- billion capital increase. SR TELECOM: S&P Lowers Ratings to 'CCC+' ---------------------------------------- Standard & Poor's Ratings Services said on Thursday it lowered its long-term corporate credit and senior unsecured debt ratings on SR Telecom Inc. (SRX.TO: Quote, Profile, Research) to 'CCC+' from 'B+'. The outlook is negative. "The ratings on SR Telecom reflect its weak credit profile that is characterized by a precarious liquidity position, given its negative free cash flows and debt maturities of more than C$90 million in the next 18 months with only a C$47 million cash balance," said Standard & Poor's credit analyst Michelle Aubin. The ratings further reflect SR Telecom's poor operating performance, its highly leveraged financial profile, and constrained financial flexibility. Moreover, the company faces challenging end-markets, ongoing exposure to emerging markets, and prolonged economic weakness in Chile, which continues to negatively affect SR Telecom's Chilean telecom operator. Montreal, Que.-based SR Telecom is a manufacturer of point-to- multipoint fixed wireless access telecommunication equipment. Traditionally, the company's systems have been primarily deployed in rural areas with low teledensity where distance and terrain make traditional wire and cable systems uneconomical. The newly acquired Angel platform is expected to expand SR Telecom's opportunities in urban markets and could become a revenue driver for the company. Nevertheless, market conditions for companies in the telecom equipment-manufacturing sector remain challenging as customers continue to defer spending. Weakness in the sector led to a 15% decrease in SR Telecom's revenue for third-quarter 2003 to C$26 million from the previous quarter, and a 50% year-over- year decline from revenue generated in third-quarter 2002. The negative outlook reflects the possibility that the ratings on SR Telecom could be lowered if the company's operating performance does not improve and in particular, if free operating cash flow does not stabilize. =================================== D O M I N I C A N R E P U B L I C =================================== SEGNA: Regulator Orders Liquidation ----------------------------------- The Dominican Republic's insurance regulator ordered Thursday the liquidation of Seguros Segna, the second largest local insurance company, reports Business News Americas. Rossanna Figueroa, a spokeswoman for the Dominican insurance agency, revealed that insurance superintendent, Rafael Santos Badia, decided to revoke Segna's license based on the insurer's ailing financial condition, highlighted by debts totaling DOP2 billion (US$51 million) and a deficit of DOP1.2 billion. The insurer was also judged to be unable to continue in operation in light of the financial crisis surrounding failed Dominican parent Bancredito. The Dominican Republic's district attorney's office ordered a lawsuit Wednesday against two top Bancredito executives based on alleged fraudulent operations involving funds estimated at more than DOP20 billion. The state bank is suffering from ongoing liquidity problems. A commission of independent consultants will supervise the sale of the Segna's 32 insurance providers, and clients will be able to keep their policies, Figueroa said. ===================== E L S A L V A D O R ===================== MILLICOM INTERNATIONAL: Further Reduces Costs Of Debt ----------------------------------------------------- Millicom International Cellular S.A. ("Millicom") (Nasdaq: MICC) announced Wednesday the pricing of its offering of US$550 million 10 per cent senior notes due 2013. The proceeds will be used to repay US$137 million of the 13� per cent senior subordinated notes due 2006 and US$395 million of the 11 per cent senior notes due 2006. The offering is the third and final stage of Millicom's financial restructuring, further reducing its cost of borrowing and extending the maturity of its debt. The new senior notes have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"). The new senior notes may not be offered or sold in the United States or to, or for the account or benefit of U.S. persons (as such term is defined in Regulation S under the Securities Act) except pursuant to a registration statement under, or an applicable exemption from the registration requirements of, the Securities Act. In the United Kingdom, this announcement is directed exclusively at persons who fall within article 19 or article 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001. Millicom is a global telecommunications investor with cellular operations in Asia, Latin America and Africa. It currently has a total of 16 cellular operations and licenses in 15 countries. The Group's cellular operations have a combined population under license of approximately 382 million people. In addition, Millicom provides high-speed wireless data services in five countries. CONTACTS: MILLICOM INTERNATIONAL CELLULAR S.A., Luxembourg Marc Beuls, President and Chief Executive Officer Telephone: +352 27 759 101 SHARED VALUE LTD, London Telephone: +44 20 7321 5022 Andrew Best, Investor Relations Visit our web site at: www.millicom.com MILLICOM INTERNATIONAL: Gets Requisite Consents Pursuant To Offer ----------------------------------------------------------------- Millicom International Cellular S.A. ("Millicom") (Nasdaq: MICC) announced Wednesday that it has received the requisite tenders and consents from holders of its 11% Senior Notes due 2006 (the "11% Senior Notes") to amend the indenture governing the 11% Senior Notes. On November 7, 2003, Millicom commenced a cash tender offer and consent solicitation (the "11% Senior Notes Tender Offer") relating to all of the $395,219,000 outstanding principal amount of the 11% Senior Notes. The consent date relating to the consent solicitation expired at 5:00 p.m., EST, on Tuesday, November 18, 2003 (the "Consent Date"). On or prior to the Consent Date, holders of more than a majority of the outstanding principal amount of the 11% Senior Notes had tendered their 11% Senior Notes and consented to (i) the waiver of certain possible past defaults under, and (ii) proposed amendments to, the indenture governing the 11% Senior Notes and related documents. Among other things, these amendments will eliminate certain of the indenture's restrictive covenants, amend certain other provisions contained in the indenture and shorten the optional redemption notice period of the 11% Senior Notes. Millicom expects to execute shortly a supplemental indenture relating to the 11% Senior Notes that effectuates the proposed amendments described in the Offer to Purchase and Consent Solicitation Statement. Subject to the completion by Millicom of its offering of 10% Senior Notes due 2013 (the "Financing Transaction"), which is expected to occur on Monday, November 24, 2003, the expected settlement date for the holders who tendered before the Consent Date is on or around November 25, 2003, at which time the amendments to the indenture will become effective. The 11% Senior Notes Tender Offer will expire at 11:59 p.m., New York City time, on December 8, 2003, unless terminated or extended. If the Financing Transaction is completed and less than all of the outstanding notes are tendered in the 11% Senior Notes Tender Offer, then Millicom intends to redeem any outstanding 11% Senior Notes in accordance with their terms. In addition, Millicom announced Wednesday that it has received the requisite consents from holders of its 2% Senior Payable-In- Kind Notes due 2006 (the "2% Senior Convertible PIK Notes") to (i) the waiver of certain possible past defaults under the indenture governing the 2% Senior Convertible PIK Notes and (ii) the waiver of compliance with the limitation on restricted payments covenant in such indenture in connection with Millicom's proposed redemption or repurchase of its 13.5% Senior Subordinated Notes due 2006 with the proceeds of the Financing Transaction. Morgan Stanley & Co. Incorporated is acting as the exclusive dealer manager and solicitation agent for the 11% Senior Notes Tender Offer. The depositary for the 11% Senior Notes Tender Offer is the Bank of New York. The 11% Senior Notes Tender Offer is being made pursuant to an Offer to Purchase and Consent Solicitation Statement dated November 7, 2003, and a related Letter of Transmittal and Consent, which more fully set forth the terms and conditions of the tender offer and consent solicitation. Questions regarding the 11% Senior Notes Tender Offer may be directed to Morgan Stanley & Co. Incorporated, at (800) 624-1808. Requests for copies of the Offer to Purchase and Consent Solicitation Statement and related documents may be directed to D. F. King & Co., Inc., at (212) 269-5550. This announcement is not an offer to purchase, a solicitation of an offer to purchase, or a solicitation of consents with respect to the 11% Senior Notes or the 2% Senior Convertible PIK Notes. The 11% Senior Notes Tender Offer is made solely by means of the Offer to Purchase and Consent Solicitation Statement. The 10% Senior Notes due 2013 have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"). The 10% Senior Notes due 2013 may not be offered or sold in the United States or to, or for the account or benefit of U.S. persons (as such term is defined in Regulation S under the Securities Act) except pursuant to a registration statement under, or an applicable exemption from the registration requirements of, the Securities Act. =========== M E X I C O =========== CFE: To Launch Detection Programs To Prevent Illegal Connections ---------------------------------------------------------------- The Comision Federal de Electricidad (CFE) is in the midst of installing detection programs in the state of Guerrero that will help it identify where electricity thefts are taking place, reports Cronica. The Company is taking the measure in order to put a stop to illegal connections, which according to the superintendent of the state-owned electricity, caused annual losses of at least MXN560 million. He noted that 18.6% of the energy generated in the state of Guerrero is stolen. There are 98 communities, called colonias, registered with the CFE, but another 42 access the electricity grid through alternative means. He further noted that the CFE was engaged in a reinvestment process this year, with the heaviest investment going toward customer service and electricity line upgrades. *********** 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., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. 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 * * *