/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/031222.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, December 22, 2003, Vol. 4, Issue 252 Headlines A R G E N T I N A AOL LATIN AMERICA: Signs Marketing Agreement with Comerxia.com BANKCORP MEDICAL: Seeks Court's Permission to Reorganize CARDIOVAS: Receiver Oversees Bankruptcy Process CARMAN: Court Approves Bankruptcy Petition CLISA: Argentine S&P Rates $120M of Bonds `raB-' CORREO ARGENTINO: Estudio Moyano to Act as Receiver in Bankruptcy DIRECTV LA: Files Third Joint Motion To Extend Exclusive Periods GEORGINA: Court Orders Bankruptcy HEMISFER: Court Designates Receiver to Oversee Bankruptcy JUNCAL AUTOMOTORES: Credit Check in Bankruptcy Ends LATINSPORT: Receiver Closes Verifications Today MEMBRILLAR: Credit Verification Period Expires Today NAHANA: Enters Bankruptcy on Court Orders NUTRIMENTAL: Court Orders Bankruptcy TELECOM ARGENTINA: France Telecom Concludes $125M Sale TELEFONICA DE ARGENTINA: Plans To Sell $510M In Debt in Argentina TRAKE TRADE: Claims Filing Deadline in Bankruptcy Nears VAGRA: Files "Concurso Preventivo" Motion at Court ZEUCAMP: Receiver Closes Credit Verifications Today B E R M U D A KWELM: Creditors To Vote On Insurance Early Closure Proposal LORAL SPACE: Xtar Selects Arianespace To Launch Satellite B R A Z I L CEMAR: Aneel Delays Sale Deadline Until Jan 16 PARMALAT GROUP: Seeks to Delay Payment of Brazilian Debt C H I L E AES GENER: Extends Expiration Dates of Tender Offers D O M I N I C A N R E P U B L I C * S&P Lowers Long-Term Ratings on Dominican Republic to 'CCC' M E X I C O GRUPO IUSACELL: Cofetel To Appeal Move Before Jan 15 GRUPO IUSACELL: Testing Push-To-Talk For Cellular Technology GRUPO TMM: Files Form RW, Withdrawal of Registration Statement GRUPO TMM: Reaches Agreement with Bondholders' Committee TV AZTECA: Fully Funded to Amortize $125M Notes Due Feb. 2004 T R I N I D A D & T O B A G O BWIA: Judge Orders Severance Payment Completion BWIA: Blames Aircraft Seizure For Worsening Financial Woes - - - - - - - - ================= A R G E N T I N A ================= AOL LATIN AMERICA: Signs Marketing Agreement with Comerxia.com -------------------------------------------------------------- AOL Latin America (Nasdaq:AOLA) announced Thursday that it had signed an agreement with Comerxia.com, a global e-commerce provider, to continue the expansion of the AOL Latin America shopping areas through the integration of links and banners that lead to Comerxia.com's International Mall site. The new shopping areas will be available immediately, allowing AOL Latin America members to obtain exciting international gifts for this holiday season and beyond. AOL Latin America members in Mexico, Brazil and Argentina will now have the convenience to purchase a multitude of U.S. products through Comerxia's extensive list of U.S. manufacturers and retailers. With almost forty retailers to choose from, members will have access to leading retailers of clothing, toys, electronics, household goods and many more. Members fill their shopping carts and at check-out only need to make one payment which will include the cost of the product, applicable taxes and other charges that are required to deliver the product to the member's doorsteps. Local and international credit cards are accepted. Comerxia is offering a US$10 discount on the first order of products through December 24, 2003 in Argentina, Brazil and Mexico. AOL Latin America will prominently display the international shopping and will provide placements for links and banners throughout all of its services so that members can easily navigate through the co-branded shopping areas. Under this one- year agreement, AOLA will receive an insignificant amount of money and will not receive any revenue from potential e-commerce transactions. Eduardo Hauser, Executive Vice President of AOL Services and Business Affairs of AOL Latin America, said: "Through this marketing agreement with Comerxia.com, we're providing our members with access to some of the finest products and services available anywhere in the world. Our members will now be able to purchase holiday gifts, provided by highly respected global manufacturers and retailers, and have them delivered directly to their homes." About AOL Latin America America Online Latin America, Inc. (Nasdaq:AOLA) is the exclusive provider of AOL-branded services in Latin America and has become one of the leading Internet and interactive services providers in the region. AOL Latin America launched its first service, America Online Brazil, in November 1999, and began as a joint venture of America Online, Inc., a wholly owned subsidiary of Time Warner Inc. (NYSE:TWX), and the Cisneros Group of Companies. Banco Itau, a leading Brazilian bank is also a minority stockholder of AOL Latin America. The Company combines the technology, brand name, infrastructure and relationships of America Online, the world's leader in branded interactive services, with the relationships, regional experience and media assets of the Cisneros Group of Companies, one of the leading media groups in the Americas. The Company currently operates services in Brazil, Mexico and Argentina and serves members of the AOL-branded service in Puerto Rico. It also operates a regional portal accessible at http://www.aola.com.America Online members worldwide can access content and offerings from AOL Latin America through the International Channels on their local AOL services. About Comerxia, Inc. Comerxia (DoUwantIt.com), is a global e-commerce provider with a powerful and integrated solution for cross-border trade, featuring categorization, denied third party screening, import/export restrictions, merchant-defined alerts, documentation compliance, and built-in fraud protection with very little set-up effort and ongoing maintenance. For more information please visit http://www.comerxia.com BANKCORP MEDICAL: Seeks Court's Permission to Reorganize -------------------------------------------------------- Buenos Aires company Bankcorp filed a petition for reorganization at the city's Court No. 24. Clerk No. 47 assists the court on the case, Argentine news source Infobae relates. If the "Concurso Preventivo" motion is approved, the court will assign a receiver to oversee the reorganization. CONTACT: Bankcorp Medical S.A. Sarmiento 663 Buenos Aires CARDIOVAS: Receiver Oversees Bankruptcy Process ----------------------------------------------- Buenos Aires accountant Ms. Mirta Calfun de Bendersky will oversee the bankruptcy of Cardiovas S.A. as receiver. The Company's creditors must have their claims authenticated by the receiver before March 1 next year. Argentine newspaper La Nacion reports that the city's Court No. 23, under Judge Villanueva handles the Company's case. Clerk No. 45, Dr. Timpanelli, assists the court on the case. The Company's assets will be liquidated at the end of the bankruptcy process. Proceeds will be used to repay creditors, based on the results of the verification process. CONTACT: Cardiovas S.A. Ave Belgrano 3402 Buenos Aires Mirta Calfun de Bendersky Humahuaca 4165 Buenos Aires CARMAN: Court Approves Bankruptcy Petition ------------------------------------------ Buenos Aires Court No. 26 approved a voluntary petition for bankruptcy filed by local company Carman S.R.L., reports Argentine news portal Infobae. The bankruptcy process began with its receiver, Mr. Carlos Rapetti, verifying creditors' claims. The credit verification period ends on February 20 next year. Creditors must have their claims authenticated before the said date in order to qualify for payments to be made after the Company's assets are liquidated. The court requires the receiver to file the individual reports on April 5, 2004. After these are processed at court, the receiver will prepare the general report, which is due for filing on May 19 next year. CONTACT: Carman S.R.L. Cerrito 1194 Buenos Aires Carlos Rapetti Echevarria 2670 Buenos Aires CLISA: Argentine S&P Rates $120M of Bonds `raB-' ------------------------------------------------ Standard & Poor's International Ratings, Ltd. Sucursal Argentina assigned a `raB-' rating to US$120 million worth of corporate bonds issued by Argentine company CLISA. The country's securities regulator, the Comision Nacional de Valores, relates that the rating was based on the Company's finances as of the end of September this year. The bonds were described as "Obligaciones Negociables con garant｛ (AGO 21-01-03, AD 23-01-03)". These were classified under `Simple Issue' and will mature on June 1, 2012. S&P said that an obligation rated `raB' denotes weak protection parameters relative to other Argentine obligations. The obligor currently has the capacity to meet its financial commitments on the obligation. But adverse business, financial, or economic conditions would likely impair capacity or willingness of the obligor to meet its financial commitments on the obligations. CORREO ARGENTINO: Estudio Moyano to Act as Receiver in Bankruptcy ----------------------------------------------------------------- Argentine accountant Estudio Moyano, Guelman y Asociados will oversee the bankruptcy process of Buenos Aires company Correo Argentino S.A., reports local news source Infobae. The accounting firm will act as the Company's receiver. Creditors are required to file their claims before April 14, 2004. The receiver will prepare the individual reports after that. The general report will be prepared after the individual reports are processed at court. A recent report by the Troubled Company Reporter - Latin America indicated that Argentine judge Eduardo Favier Dubois declared Correo Argentino bankrupt and has forbidden its head, Mr. Francisco Macri, from leaving the country. The bankruptcy declaration follows last month's decision by the Argentine government to strip Correo Argentino of its national postal concession faulting the Company for poor service and amassing debts of ARS450 million to the state. The Company's contract was established in 1997, making it the world's first fully privatized mail service. It is owned by Sideco Americana, a consortium run by Macri. CONTACT: Correo Argentino S.A. Della Paolera 299 Buenos Aires Estudio Moyano, Guelman y Asociados Riobamba 1224 Buenos Aires DIRECTV LA: Files Third Joint Motion To Extend Exclusive Periods ---------------------------------------------------------------- In light of the filing of the proposed recovery plan and the disclosure statement, DirecTV Latin America LLC, the Official Committee of Unsecured Creditors and Hughes Electronics Corporation agree that the Debtor's Exclusive Proposal Period should be further extended to and including February 28, 2004 and its Exclusive Solicitation Period should be extended to and including April 29, 2004. The Parties agree that an extension of the Debtor's exclusive periods is necessary to enable them to complete the solicitation and confirmation process with respect to the Plan, unimpeded by any competing plan that might otherwise be filed. By this motion, the Parties ask the Court to approve the proposed extensions. Judge Walsh will convene a hearing on January 9, 2004 at 9:30 a.m. to consider the request. Pursuant to Del.Bankr.LR 9006-2, the Debtor's Plan Filing Period is automatically extended through the conclusion of that hearing. (DirecTV Latin America Bankruptcy News, Issue No. 16; Bankruptcy Creditors' Service, Inc., 215/945- 7000) GEORGINA: Court Orders Bankruptcy --------------------------------- Buenos Aires Court No. 23 declares local company Georgina S.R.L. "Quiebra", according to Argentine news source Infobae. Clerk No. 45 assists the court on the case, which will end with the liquidation of the Company's assets. The court is yet to assign a local accountant to oversee the bankruptcy process as the Company's receiver. HEMISFER: Court Designates Receiver to Oversee Bankruptcy --------------------------------------------------------- Argentine accountant Nestor Rozemberg was assigned as receiver for the bankruptcy of Buenos Aires-based Hemisfer S.A., according to local news portal Infobae. The receiver is examining and authenticating creditors' claims until February 23, 2004. Court No. 16 handles the Company's case with assistance from Clerk No. 31. The court also requires the receiver to prepare the individual and general reports on the case. The source did not mention, however, whether the court has set the schedule for the bankruptcy process. CONTACT: Nestor Rozemberg Mansilla 3696 Buenos Aires JUNCAL AUTOMOTORES: Credit Check in Bankruptcy Ends --------------------------------------------------- The bankruptcy of local company Juncal Automotores S.A. proceeds with the closure of the credit verification process today. The Company's receiver, Mr. Ruben Eduardo Calcagno, who verified claims, will prepare the individual reports, which are due at the court on March 5. Buenos Aires Court No. 22, which handles the Company's case, requires the receiver to submit the general report on April 20, 2004. This is prepared after the individual reports are processed. The city's Clerk No. 43 assists the court on the case, which will end with the liquidation of the Company's assets to reimburse creditors. CONTACT: Ruben Eduardo Calcagno Pieres 161 Buenos Aires LATINSPORT: Receiver Closes Verifications Today ----------------------------------------------- Anibal Atilio Amigo y Asociados, receiver for Latinsport S.A., will close the claims verification process for the Company's bankruptcy today. Verifications, and the preparation of the required reports are listed as parts of the receiver's duties. The Troubled Company Reporter - Latin America reported earlier that the Company, which is based in Buenos Aires, entered bankruptcy on orders from the city's Court No. 15. Clerk No. 29 assists the court on the case, which is likely to result in the liquidation of the Company's assets. CONTACT: Anibal Atilio Amigo y Asociados Rodriguez Pena 382 Buenos Aires MEMBRILLAR: Credit Verification Period Expires Today ---------------------------------------------------- The credit verification period for the bankruptcy of Buenos Aires' Membrillar 66 S.R.L. ends today. This is done to ascertain the nature and amount of the Company's debts. The receiver will now prepare the individual reports, which are due for filing on March 5 next year. Buenos Aires Court No. 20 ordered the bankruptcy of local company Membrillar 66 S.R.L., according to an earlier report by the Troubled Company Reporter - Latin America. The Company's receiver is local accountantLuis Maria Rementeria. The receiver is also required to prepare a general report after the individual reports are processed at court. This report must be filed on April 21, 2004. The bankruptcy process will end with the liquidation of the Company's assets afterwards. CONTACT: Luis Maria Rementeria Piedras 1319 Buenos Aires NAHANA: Enters Bankruptcy on Court Orders ----------------------------------------- Argentine textile maker Nahana S.A. entered bankruptcy on orders from Buenos Aires Court No. 20, under Dr. Taillade. Local newspaper La Nacion reports that Dr. Amaya, the city's Clerk No. 39 assists the court on the case. Creditors are required to have their claims authenticated by the Company's receiver, Mr. Ricardo Fernandez. The deadline for claims verification is April 19 next year. CONTACT: Nahana S.A. Avellaneda 3295 Buenos Aires Ricardo Fernandez 10th Floor Tucuman 1567 Buenos Aires NUTRIMENTAL: Court Orders Bankruptcy ------------------------------------ Judge Gutierrez Cabello of Buenos Aires Court No. 7 declared Argentine company Nutrimental Co. SAIC y F "Quiebra", reports La Nacion. Clerk No. 13, Mr. O'Reilly, assists the court on the case. The court assigned Mr. Roberto Sapolznik as the Company's receiver with instructions to verify creditors' claims until April 14 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 on the case, but the source did not mention whether the court has set the filing deadlines these reports. The Company's assets will be liquidated at the end of the process to reimburse creditors. The results of the verification process will be used as basis for distribution of payments. CONTACT: Nutrimental Co. SAIC y F 7th Floor Ave Corrientes 1312 Buenos Aires Roberto Sapolnik 10th Floor, Office 41 Parana 851 Buenos Aires TELECOM ARGENTINA: France Telecom Concludes $125M Sale ------------------------------------------------------ France Telecom completed Friday the sale of its stake in Argentina's Telecom Argentina to W de Argentina Inversiones, an affiliate of Argentine family investment group Los W group. Business News Americas relates that the US$125-million sale agreement was announced in September. Prior to the sale, France Telecom and Telecom Italia held approximately 34% of voting rights and a 25.5% economic interest in Nortel Inversora, the holding company that owns 54.7% of Telecom Argentina's share capital. Under the agreement, France Telecom and Telecom Italia contributed their stakes in Nortel to a new company called Sofora Telecomunicaciones, co-owned on a 50-50 basis by the two European operators. France Telecom then sold 48% of Sofora to W de Argentina, along with an option for the purchase of the remaining 2% exercisable at any time between January 31, 2008 and December 31, 2013. Minority investors hold the other 49% of Nortel. Aside from Nortel, the other shareholders in Telecom Argentina are employees, with 4.7%, and the free float, with 40.6%. CONTACT: TELECOM ARGENTINA STET - FRANCE TELECOM SA(TELECOM) Alicia Moreau de Justo 50, 10th Floor Capital Federal (1107) Repoblica Argentina Phone: +54 11 4968 4000 Home Page: http://www.telecom.com.ar CONTACTS: Pedro Insussarry, Investor Relations Manager Alberto J. Ricciardi, Chief Financial Officer Elvira Lazzati, Finance Director Phone: (5411) 4968-3626/3627 Fax: (5411) 4313-5842/3109 Email: inversores@intersrv.telecom.com.ar TELEFONICA DE ARGENTINA: Plans To Sell $510M In Debt in Argentina ----------------------------------------------------------------- Fixed-line provider Telefonica de Argentina SA, a unit of Spain's Telefonica SA, plans to sell ARS1.5 billion (US$510 million) worth of debt in Argentina to take advantage of favorable market conditions, according to Bloomberg News. Telefonica Argentina SA, the country's biggest telephone company, said last month it had a profit during the first nine months of the year. CONTACT: TELEFONICA DE ARGENTINA Tucuman 1, 18th Floor, 1049 Buenos Aires, Argentina Phone: (212) 688-6840 Home Page: http://www.telefonica.com.ar Contacts: Carlos Fernandez-Prida Mendez Nunez, Chairman Paul Burton Savoldelli, Vice Chairman Fernando Raul Borio, Secretary TRAKE TRADE: Claims Filing Deadline in Bankruptcy Nears ------------------------------------------------------- Creditors of Trake Trade S.A. must file their claims before April 12, 2004. The Company's receiver, Mr. Norberto Markel, will examine claims to determine the nature and amount of the Company's debts. Results of the verification process will be used as basis for payments distribution after the Company's assets are liquidated. Buenos Aires Court No. 6 handles the Company's case. Clerk No. 11 assists, relates local news source Infobae. CONTACT: Trake Trade S.A. Defensa 441 Buenos Aires Norberto Markel Tucuman 1657 Buenos Aires VAGRA: Files "Concurso Preventivo" Motion at Court -------------------------------------------------- Buenos Aires Court No. 17 is considering a motion for "Concurso Preventivo" filed by local company Vagra S.R.L., relates Argentine news source Infobae. Clerk No. 33 assists the court on the case. CONTACT: Vagra S.R.L. Yerbal 2429 Buenos Aires ZEUCAMP: Receiver Closes Credit Verifications Today --------------------------------------------------- Buenos Aires accountant Liliana Noemi Castineira, receiver for the reorganization of local company Zeucamp S.A., will close credit verifications today. This part of the reorganization determines the nature and amount of the Company's debts. The receiver will not prepare the individual reports, which must be submitted to the court on March 4 next year. The receiver will also prepare a general report after the individual reports are processed at court. This report must be filed on April 20, 2004. Buenos Aires Court No. 23, which handles the Company's case, ordered the informative assembly to be held on October 1 next year. CONTACT: Liliana Noemi Castineira Tucuman 983 Buenos Aires ============= B E R M U D A ============= KWELM: Creditors To Vote On Insurance Early Closure Proposal ------------------------------------------------------------ The run off of the London based KWELM insurance companies continues to make good progress as evidenced by the proposal to be put to creditors in January that an early closure program be initiated. As set out in a document currently being circulated to creditors, early closure offers them the prospect of receiving total payments ranging between 58% and 76% of sums due. That compares to average distributions of 47% to date. The level of potential payout is substantially higher than expected when the original scheme was put in place 10 years ago. The early closure proposals envisage that the bulk of the $1.3 billion held for payment to creditors will be paid within two to three years. The original outline timescale for the run off extended beyond 2015. Chris Hughes and Ian Bond, the scheme administrators responsible for the run off of the businesses, recommend early as being in the best interests of the general body of creditors, and the route to the maximum payment within the minimum timeframe. The KWELM companies are subsidiaries of the failed London United Investments plc. They comprise Kingscroft Insurance, Walbrook Insurance, El Paso Insurance, Lime Street Insurance and Mutual Reinsurance. They specialized in US casualty, professional indemnity and other liability insurance business, which was principally written through HS Weavers (Underwriting) Agencies Limited. Over 90% of the KWELM assets and liabilities are in US dollars and most of the policyholders are based in the United States. Total funds recovered for distribution to creditors now exceed US$3.1 billion with total ultimate liabilities estimated at US$5.8 billion, including a US$1.2 billion special margin. Chris Hughes and Ian Bond explain that they have collected around 89% of potential recoveries and expect that to rise to 97.5% by the amending scheme effective date. In addition, investment returns - nearly US$1 billion to date - are now falling in the wake of lower interest rates and the amount of cash returned to creditors. "The main scope for further increases in the level of payment percentages comes from achieving greater certainty in the total value of outstanding and contingent claims. As a result, we will be able to reduce the level of special margin we had built into our calculations over the years to ensure all creditors are treated fairly," they say. The amending scheme being put to creditors in January provides a mechanism for earlier closure by establishing a bar date expected to be 29 September 2004 for submitting claims with full supporting information. The revised scheme also sets out a "cut-off" or estimation methodology to evaluate and quantity liabilities. This provides a framework for determining both current and future claims early - allowing for a faster run-off and cutting run-off costs by up to US$75 million. Court hearings in London on 28 November and on 2 December 2003 paved the way for the amending scheme to be put to creditors. Each of the five companies has two classes of creditors - protected and general. Each class of creditor for each company will vote separately at a series of meetings to be held in London on 29 January 2004. For the revised scheme to go ahead, the majority of creditors voting in person or by proxy in number terms and 75% in value of claims must vote in favor. If approved by creditors, the amending scheme would go back to the relevant Court in March 2004 to be sanctioned and registered before the scheme comes into effect. Notes to editors: The major proportion of insurance cover provided by the KWELM companies was written between 1972 and 1990. Protected creditors are those who are entitled to compensation from the Financial Services Compensation Scheme Limited (formerly the Policyholders' Protection Board) under the Policyholders Protection Act 1975. The meetings of KWELM creditors to consider the amending scheme of arrangement will start at 2:00pm on Thursday 29 January 2004 at the Chartered Insurance Institute, 20 Aldermanbury, London EC2V 7HY, United Kingdom. Copies of the proposed amending scheme of arrangement and claims forms can be obtained via the Creditor Help Des +44 (0) 20 7645 4991 or viewed on the KWELM web site at www.kwelm.com CONTACTS: Chris Hughes Telephone: +44 (0) 20 7398 2901 Chris Reynolds Telephone: +44 (0) 20 7645 4990 Caroline Cecil, Caroline Cecil Associates Telephone: +44 (0) 7610 4110 cc@carolinececil.co.uk www.carolinececil.co.uk LORAL SPACE: Xtar Selects Arianespace To Launch Satellite --------------------------------------------------------- XTAR, a joint venture between Loral Space & Communications (OTCBB: LRLSQ) and HISDESAT, S.A., announced Thursday that it has entered into an agreement with Arianespace to launch its XTAR-EUR satellite aboard an Ariane 5 ECA launch vehicle. The XTAR-EUR satellite is now undergoing final testing at Space System/Loral (SS/L) in Palo Alto, CA. The launch of XTAR-EUR is currently planned for early second quarter 2004. With its launch arrangements and funding requirements secured, XTAR expects to begin offering its X-band services to government users in the United States, Spain, and other friendly and allied nations in July 2004, shortly after launch and the completion of in-orbit testing. Service will commence at the highly desirable 29 degrees East Longitude orbital slot providing a footprint extending from the Eastern Atlantic to Southeast Asia. Weighing 3,600 kilograms at launch, XTAR-EUR is based on SS/L's space-proven 1300 platform and carries twelve wideband and high- power X-band transponders. The satellite will feature on-board switching and multiple steerable theater beams that allow X-band capacity to follow its users as they travel anywhere within the footprint of the satellite. XTAR-EUR is designed to operate with existing and planned defense communications terminals around the world. XTAR, LLC is a new satellite communications company committed to serving the needs of U.S., Spanish and allied governments. The company is a joint venture between Loral, which owns 56 percent, and HISDESAT, which owns 44 percent. XTAR is headquartered in Washington, D.C., and has offices in Madrid, Spain, and Palo Alto, Calif. HISDESAT Servicios Estrat�gicos S.A. is a Spanish company headquartered in Madrid and incorporated in July 17th, 2001. HISDESAT's aims are the acquisition, operation and commercialization of Government-oriented space systems, beginning with satellite government communications in the X-band and Ka - band frequencies. HISDESAT is owned jointly by Hispasat, S.A., the Spanish commercial satellite services company, INSA (100% owned by INTA) and the leaders of Spain's space industries: EADS- CASA Espacio, INDRA and SENER. HISDESAT will provide enhanced capabilities, including Ka-band, for Spain's defense applications. Loral Space & Communications is a satellite communications company. It owns and operates a global fleet of telecommunications satellites used by television and cable networks to broadcast video entertainment programming, and by communication service providers, resellers, corporate and government customers for broadband data transmission, Internet services and other value-added communications services. Loral also is a world-class leader in the design and manufacture of satellites and satellite systems for commercial and government applications including direct-to-home television, broadband communications, wireless telephony, weather monitoring and air traffic management. CONTACT: LORAL SPACE & COMMUNICATIONS John McCarthy 212-338-5345 =========== B R A Z I L =========== CEMAR: Aneel Delays Sale Deadline Until Jan 16 ---------------------------------------------- Interested bidders for the control of Brazilian power distributor Companhia Energetica do Maranhao (Cemar) now have until January 16 to present a plan to put the embattled utility back on its feet and take over its concession for the symbolic price of one real, relates Dow Jones. Originally, power sector regulator Aneel had set a deadline of Dec. 17 for investors to present their proposals. But the regulator had to postpone the deadline following a legal motion filed by a disgruntled U.S. bidder in court and a request from the Mines and Energy Ministry. Mt. Baker Enterprises L.L.C., the investment company of U.S.- based Franklin Park Energy, filed a lawsuit against Aneel claiming the agency didn't give it fair treatment in the bidding process for Cemar. According to Franklin Park, Aneel disqualified the U.S. group because it favors local group GP Investimentos, considered by the regulator the only eligible bidder in the latest sale process. The challenge comes as the Brazilian government is taking yet another crack at selling the power distributor, a unit of U.S.- based PPL Corp. (PPL). Saddled with more than BRL800 million in debt, the utility came under the administration of Aneel after filing the Brazilian equivalent of Chapter 11 bankruptcy in August last year. At the time, Cemar failed to renegotiate its debt with creditors. PPL wrote off its US$317 million investment in Brazil, but officially still holds Cemar's concession license. In its most recent attempt to attract buyers for Cemar, Aneel received proposals from local group GP Investimentos and from Mt. Baker Enterprises. But the U.S. group was disqualified because it lacked the financial conditions to take control of Cemar, Aneel said. Last week, Franklin Park won an injunction from a federal court in Brasilia ordering Aneel to allow it to participate in the bidding process and to give it 30 days to prepare its proposal. PARMALAT GROUP: Seeks to Delay Payment of Brazilian Debt -------------------------------------------------------- Parmalat Finanziaria Spa communicates that with regard to the acquisition of 18.18% of its Brazilian subsidiary company Parmalat Empreendimentos e Administracao Ltda, negotiations are still in progress with a view to delaying execution of the transaction falling due in part on 17 December 2003 and in part on 22 December 2003. Parmalat Finance Corporation Limited has not made the repayment relating to the 17 December 2003 due date. With regard to the Epicurum Fund, negotiations to establish the terms and means of liquidation of Parmalat's share in the fund have been suspended awaiting the outcome of a review by PriceWaterhouseCoopers. This review is consistent with the mandate given to PriceWaterhouseCoopers on 16 December 2003 to review the assets and liabilities, including derivative contracts and commitments, of the Parmalat Group, and in particular of its financial companies, giving priority to the Epicurum and Bonlat positions. Lazard & Co. Ltd. and Mediobanca have been mandated to assist the Group in reviewing its economic and financial situation and capital structure and in the preparation of an eventual financial restructuring plan. The program of work, expected to be completed by the end of January 2004, foresees: 1. A review of the Group's capital structure and economic and financial situation as at the most recent date for which official figures are available; 2. A review of the type and conditions of the Group's net financial indebtedness, both towards banks and in the form of capital market instruments; 3. An analysis of the economic and financial outlook for the Group's operating companies on the basis of data drawn from the same sources; and 4. In light of the above, a review to establish whether the conditions exist for an eventual plan to restructure the Group's debt and the presentation of guidelines for such a plan. ========= C H I L E ========= AES GENER: Extends Expiration Dates of Tender Offers ---------------------------------------------------- AES Gener S.A. (the "Company") announced Thursday that it has extended the expiration dates for its previously announced separate cash tender offers (the "Tender Offers") for any and all of its (i) 6% U.S. Senior Convertible Notes due 2005 (the "U.S. Convertible Notes"), (ii) 6% Chilean Convertible Bonds due 2005 (the "Chilean Bonds") and (iii) 6�% Notes due 2006 (the "Yankee Notes"). The Company's offers for the U.S. Convertible Notes and the Yankee Notes have been extended to and will each now expire at 5:00 p.m., New York City time (7:00 p.m., Santiago time), on January 30, 2004, unless further extended or earlier terminated pursuant to the terms of each respective offer. The Company's offers for the U.S. Convertible Notes and the Yankee Notes were each previously scheduled to expire at 12:00 midnight, New York City time, on December 22, 2003. The Company's offer for the Chilean Bonds has been extended to and will now expire at 10:00 a.m., Santiago time (8:00 a.m., New York City time), on January 28, 2004, unless further extended or earlier terminated pursuant to the terms of such offer. The Company's offer for the Chilean Bonds was previously scheduled to expire at 2:00 p.m., Santiago time, on December 18, 2003. The terms of the offers for the U.S. Convertible Notes and the Yankee Notes are described in separate Offers to Purchase and Consent Solicitation Statements, each dated and mailed to noteholders on November 24, 2003. The terms of the offer for the Chilean Bonds are described in an advertisement that was published in Chile in El Mercurio on November 25, 2003 and in an advertisement that will also be published in Chile in El Mercurio on December 18, 2003, and the offer for the Chilean Bonds will only be made pursuant to such advertisements. The Company has retained Deutsche Bank Securities, Inc. and its affiliates to act as the exclusive Dealer Manager in connection with the Tender Offers and as Solicitation Agent in connection with the consent solicitation. Questions concerning the terms of the offers for the U.S. Convertible Notes and the Yankee Notes (collectively, the "U.S. Tender Offers") and the consent solicitation for the U.S. Convertible Notes and the Yankee Notes (collectively, the "U.S. Consent Solicitation") may be directed to Deutsche Bank Securities, attention: Jenny Lie, at (866) 627- 0391 (US toll-free) or (212) 250-7445 (collect). Deutsche Securities Corredores de Bolsa Limitada is acting as Administrator in connection with the tender offer of the Chilean Bonds. Questions concerning the terms and procedures of the tender offer of the Chilean Bonds may be directed to the Administrator at (562) 337-7700. The Company has engaged D.F. King & Co., Inc. to act as the Information Agent in connection with the U.S. Tender Offers and the U.S. Consent Solicitation. Documents relating to the U.S. Tender Offers and the U.S. Consent Solicitation may be obtained by contacting the Information Agent at (888) 644-5854 (US toll free) or (212) 269-5550 (collect). Deutsche Bank Trust Company Americas is the Tender Agent in connection with the U.S. Tender Offers and the U.S. Consent Solicitation. CONTACT: Daniel Aninat, AES Gener S.A.: (562) 686-8938 Vanessa Thiers, AES Gener S.A.: (562) 686-8948 =================================== D O M I N I C A N R E P U B L I C =================================== * S&P Lowers Long-Term Ratings on Dominican Republic to 'CCC' ------------------------------------------------------------- Standard & Poor's Ratings Services said Thursday that it lowered it long-term foreign and local currency sovereign credit ratings on the Dominican Republic to 'CCC' from 'B-'. The outlook remains negative. According to Credit Analyst Richard Francis, the Dominican Republic faces a severe liquidity crisis. "There is a substantial risk that delays restarting its two-year, US$600 million Stand-by program with the International Monetary Fund will further depress investor confidence, lead to additional capital outflows, and heighten the risk of default to private creditors," said Mr. Francis. "Public sector external debt service totals nearly US$900 million in 2004, while the central bank currently holds less than US$280 million in liquid international reserves," he added. (Nearly 20% of this debt service is due to private creditors and, hence, subject to a default, according to Standard & Poor's.) Standard & Poor's said that the government is already running arrears with bilateral creditors, and is applying unorthodox moral suasion on economic agents to support the foreign exchange rate. Standard & Poor's estimates that the government's 2004 borrowing requirement will approach 20% of GDP (including refinancing of central bank certificates of deposit); this gap will be difficult to fill without multilateral support. "To date, the government's policy has failed to respond adequately to the deepening financial and economic crisis," Mr. Francis noted. "Even if the government successfully presents a proactive policy strategy to reverse the crisis and reestablish its programs with multilateral creditors, there is a substantial risk that poor policy implementation could derail the program anew, particularly in the run up to the May 2004 presidential elections," he concluded. ANALYST: Richard Francis, New York (1)-212-438-7348 =========== M E X I C O =========== GRUPO IUSACELL: Cofetel To Appeal Move Before Jan 15 ---------------------------------------------------- Mexico's regulatory body, the Federal Telecommunication Commission (Cofetel), will appeal the legal measure presented by cellular telephone company Iusacell to avoid a fine for failing to fulfill the Fundamental Quality Plan, said Cofetel head Jorge Arredondo. Arredondo said that Cofetel has to lodge the appeal before January 15, 2004. At the same time, he revealed he has already sent a recommendation to the Transport and Communications Secretariat (SCT) to fine Telcel and Unefon between 2,000 and 20,000 minimum salaries (approximately US$8,000-80,000) due to their respective failures to adhere to the plan. Cofetel would continue to fight to ensure that telephone companies achieve quality standards in the service, Arredondo added. CONTACT: Mauricio Martinez Gonzalez Tel: 01 (52) 55 52 67 45 00 Email: mmg@jnnr.com.mx Carlos Moctezuma Tel: 01 (52) 55 51 09 44 00 carlos.moctezuma@iusacell.com.mx GRUPO IUSACELL: Testing Push-To-Talk For Cellular Technology ------------------------------------------------------------ A source from Grupo Iusacell revealed that the Mexican mobile operator is testing push-to-talk for cellular technology on a Lucent platform, relates Business News Americas. "We are in the testing phase of the [Motorola and Kyocera] handsets and it is very likely we will launch service in the first quarter," the unnamed source said. "[Push-to-talk] will only be available in the corridors that have CDMA1xRTT [technology] which is mainly Region 9 [around Mexico City]," he added. Iusacell operates a CDMA network in seven of Mexico's nine cellular regions, but the CDMA1xRTT overlay has only been deployed in and around Mexico City. Iusacell, Mexico's smallest mobile operator with about 1.5 million subscribers at the end of the third quarter, is controlled by Mexican tycoon Ricardo Salinas along with the country's third largest operator Unefon. GRUPO TMM: Files Form RW, Withdrawal of Registration Statement -------------------------------------------------------------- Pursuant to Rule 477 under the Securities Act of 1933, as amended, application is hereby made by Grupo TMM, S.A. (the "Registrant") to withdraw the Registration Statement on Form F-4 (Registration No. 333-103268), which was filed with the Securities and Exchange Commission on February 18, 2003, as amended (the "Registration Statement"). The Registrant is withdrawing the Registration Statement because it no longer intends to offer or sell shares in connection with such Registration Statement. No securities were sold in connection with the offering under the Registration Statement. CONTACT: Thomas C. Janson, Jr., The Registrant's Legal Counsel MILBANK, TWEED, HADLEY & MCCLOY LLP Tel: (212) 530-5921 GRUPO TMM: Reaches Agreement with Bondholders' Committee -------------------------------------------------------- Grupo TMM, S.A. (NYSE:TMM)(BMV:TMM A; "TMM") announced it has reached an agreement on the principal terms of a restructuring with an ad hoc committee of bondholders representing approximately 43 percent of its 9 1/2 percent Senior Notes due 2003 and its 10 1/4 percent Senior Notes due 2006 (together, the "Existing Notes"), in the aggregate principal amounts outstanding of $176.9 million and $200 million, respectively. The restructuring will be accomplished through a registered exchange offer of new senior secured notes ("New Secured Notes") for the Existing Notes, together with a consent solicitation and prepackaged plan solicitation. The New Secured Notes will be senior obligations of TMM, will be guaranteed by wholly-owned subsidiaries of TMM, and will be secured by a lien on substantially all assets of TMM and such guarantors; the New Secured Notes will mature in three years with an option on the part of TMM to extend the New Secured Notes for one additional year upon payment of an extension fee. The New Secured Notes will have a cash coupon of 10 1/2 percent per annum, payable semi-annually, for the first three years. In addition, the Company may elect to pay a minimum of 2 percent per annum in cash interest and the balance through the issuance of additional New Secured Notes or TMM ADRs. If TMM elects to pay interest other than in cash, the total interest rate will initially be 12 percent per annum, increasing to 13 percent per annum in the third year. TMM will have the right to redeem up to $150 million of the New Secured Notes at 100 percent of the principal amount thereof and to redeem the balance of the New Secured Notes at 101 percent of the principal amount thereof. It is anticipated that the New Secured Notes will be offered for the Existing Notes and accrued interest thereon on a dollar-for- dollar basis. The Company has agreed to pay a five percent incentive payment, payable in additional New Secured Notes, to those holders tendering their Existing Notes in the exchange offer. Jose Serrano, chairman of TMM, and certain other controlling shareholders have agreed to support the exchange offer and prepackaged plan solicitation. To the extent bondholders have any questions on the proposed exchange, please contact Martin F. Lewis and Ronen Bojmel at Miller Buckfire Lewis Ying & Co., LLC, the Company's financial advisor or Alan D. Fragen and Oscar A. Mockridge of Houlihan Lokey Howard & Zukin Capital, the ad hoc bondholders' committee's financial advisor. Akin Gump Strauss Hauer & Feld LLP is legal counsel to the ad hoc bondholders' committee. Martin F. Lewis Miller Buckfire Lewis Ying & Co., LLC 250 Park Avenue New York, New York 10177 Telephone: (212) 895-1805 Email: martin.lewis@mbly.com Ronen Bojmel Miller Buckfire Lewis Ying & Co., LLC 250 Park Avenue New York, New York 10177 Telephone: (212) 895-1807 Email: ronen.bojmel@mbly.com and Alan D. Fragen Lokey Howard & Zukin Capital 1930 Century Park West Los Angeles, California 90067 Telephone: (310) 788-5338 Email: afragen@hlhz.com Oscar A. Mockridge Houlihan Houlihan Lokey Howard & Zukin Capital 685 Third Avenue New York, New York 10017 Telephone: (212) 497-4175 Email: omockridge@hlhz.com TMM has submitted a Report on Form 6-K to the U.S. Securities and Exchange Commission, which includes the Term Sheet for the New Secured Notes and the restructuring, and interested parties are referred to such filing and the exhibits for a more complete description thereof. This announcement is neither an offer to purchase nor a solicitation of an offer to sell Grupo TMM Notes. The exchange offer and consent solicitation, when made, will not be made to, nor will tenders be accepted from, or on behalf of, holders of Existing Notes in any jurisdiction in which the making of exchange offers and consent solicitations or the acceptance thereof would not be in compliance with the laws of such jurisdiction. In any jurisdiction where securities, blue sky laws or other laws require exchange offers and consent solicitations to be made by a licensed broker or dealer, the exchange offers and consent solicitations will be deemed to be made on behalf of Grupo TMM by the dealer manager or one or more registered brokers or dealers licensed under the laws of such jurisdiction. Headquartered in Mexico City, Grupo TMM is a Latin American multimodal transportation company. Through its branch offices and network of subsidiary companies, Grupo TMM provides a dynamic combination of ocean and land transportation services. Grupo TMM also has a significant interest in TFM, which operates Mexico's Northeast railway and carries over 40 percent of the country's rail cargo. Grupo TMM's web site address is www.grupotmm.com and TFM's web site is www.tfm.com.mx. CONTACT: Grupo TMM Brad Skinner (Investor Relations) Phone: 011-525-55-629-8725 203-247-2420 Email: brad.skinner@tmm.com.mx Proa/StructurA Marco Provencio (Media Relations) Phone: 011-525-55-629-8708 011-525-55-442-4948 Email: mp@proa.structura.com.mx Dresner Corporate Services Kristine Walczak (General Investors, Analysts and Media) Phone: 312-726-3600 Email: kwalczak@dresnerco.com TV AZTECA: Fully Funded to Amortize $125M Notes Due Feb. 2004 ------------------------------------------------------------- TV Azteca, S.A. de C.V. (NYSE: TZA) (BMV: TVAZTCA), one of the two largest producers of Spanish-language television programming in the world, announced Thursday it is fully funded to amortize its US$125 million 10 1/8% note due February 15, 2004. The funding entails US$60 million from TV Azteca's cash position and US$65 million of unsecured financing obtained from private institutions. "Our focus on building the necessary cash within an ample timeframe is oriented to avoid any possible contingency in meeting our financial obligations," commented Pedro Padilla, Chief Executive Officer of TV Azteca. "Our ultimate goal is to increase free cash generation by gradually reducing our debt and interest expense." "We will save close to US$13 million annually from amortizing the note, whereas the new credit, smaller in size and with substantially lower interest, entails reduced financial outlays," added Mr. Padilla. "This transaction, together with solid operating perspectives at TV Azteca for the coming year, will translate into strong expected cash creation for 2004, and reduced overall risk perception." The company noted the debt amortization is part of its plan to allocate a substantial portion of TV Azteca's expected cash generation within a six-year term to gradually reduce the company's outstanding debt by an amount of approximately US$250 million, as well as to make distributions to shareholders above US$500 million within the six-year period. Completion of the plan implies reduction of the company's yearly interest payments by approximately US$25 million and a substantial improvement of its overall capital structure. TV Azteca is one of the two largest producers of Spanish-language television programming in the world, operating two national television networks in Mexico, Azteca 13 and Azteca 7, through more than 300 owned and operated stations across the country. TV Azteca affiliates include Azteca America Network, a new broadcast television network focused on the rapidly growing U.S. Hispanic market; Unefon, a Mexican mobile telephony operator focused on the mass market; and Todito.com, an Internet portal for North American Spanish speakers. CONTACT: TV Azteca, S.A. de C.V. Investor Relations: Bruno Rangel +011-5255-3099-9167 jrangelk@tvazteca.com.mx or Omar Avila +011-5255-3099-0041 oavila@tvazteca.com.mx Media Relations: Tristan Canales +011-5255-3099-5786 tcanales@tvazteca.com.mx Web site: http://www.tvazteca.com.mx ================================= T R I N I D A D & T O B A G O ================================= BWIA: Judge Orders Severance Payment Completion ----------------------------------------------- Justice Gregory Baker of Bermuda's Industrial Court on Wednesday ordered national airline BWIA to complete its severance payments to retrenched workers by January 31, 2004, the Trinidad Express reports. "This is an interim order. If you have any difficulties, you report it and we will deal with it," the judge told Christopher Abraham, president of the Aviation Communication & Allied Workers Union (ACAWU). Judge Baker issued the interim order after ACAWU took BWIA to court for failing to pay severance benefits to 471 employees who were retrenched on March 15, 2003. BWIA's Employee Services Director, Ian Ashman, who represented the airline told the court BWIA was willing to make a payment of $4.1 million on Monday, followed by another payment of $1 million on December 29. He said the airline would settle the outstanding debt by January 31. BWIA has already paid off 319 workers some $24.4 million but still owes $12.75 million to the remaining 158 workers. Monday's payment of $4.1 million will go firstly to those workers who are owed $100,000 or less, while the other payments are aimed at settling all other workers. At the same time, ACAWU asked the court to impose interest of 25% on the severance payments. However, Justice Baker deferred that matter to January 13, to give BWIA time to submit a legal argument, not later than January 5. CONTACT: British West Indies Airways Phone: + 868 627 2942 E-mail: mailto:mail@bwee.com Home Page: http://www.bwee.com/ BWIA: Blames Aircraft Seizure For Worsening Financial Woes ---------------------------------------------------------- BWIA blamed the seizure of two aircraft earlier this year by the International Leasing Finance Corporation (ILFC) for its deepening financial woes, reports the Trinidad Guardian. On December 12, BWIA's Director Employee Service, Ian Ashman, filed an affidavit in the Industrial Court, saying the action was reported internationally "which had the effect of eroding confidence of the marketplace and elevating the risk to suppliers and vendors of doing business with BWIA. "These factors combined had a significantly negative and immediate impact on the company's cash flows and viability," the affidavit said. ILFC, which owns most of the BWIA fleet, seized the A340 aircraft for non-payment of a $25 million debt. The affidavit outlined the ways in which the action further set back the airline. This included: - Suspension of all credit arrangements with vendors. - Immediate requests for increased security deposits by credit acquirers of US$5 million for risk. - In addition, because of the increased risk profile of BWIA, ILFC refused to make a second A340 aircraft available which was "critical" to the efficient operation of the London route - identified as the most lucrative of the airline's routes and pivotal to turning around the current financial woes. *********** 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 * * *