/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040112.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, January 12, 2004, Vol. 5, Issue 7 Headlines A R G E N T I N A ACCIONAMIENTES AVELLANEDA: Court Declares Company Bankrupt ADMINISTRACION LA BUENA VISTA: Receiver Verifies Creditor Claims AMERICA REMOLQUES: Claims Filing Period Ends March 15 ATAUTA: Court Assigns Receiver to Oversee Bankruptcy CARDIOVAS: Court Sets Deadlines for Receiver's Reports CLINICA ALVEAR: Court Declares Company Bankrupt COLEGIO DON TORCUATO: Court Approves Reorganization Petition COMPANIA MEGA: Fitch Affirms Senior Secured Notes Rating CONVERTER: Court Declares Company Bankrupt CORMAT ARGENTINA: Informational Meeing Set for March 18 CRESUD: Announces Execution of Warrants, Raises $6.4M DIRECTV LA: Seeks To Settle Infront Rejection Claim FINCA DEL PARANA: Enters Bankruptcy GASODUCTO GASANDES: Restructures $168M With Multiple Banks IRSA: Convertibles, Warrants Issue Raises $5.6 Million JUGUETERIA ATLANTIDA: Slips from Reorganization to Bankruptcy NICOLOSI: Reorganization Starts with Court Approval TELECOM ARGENTINA: Amends Debt Restructuring Offer Terms TREPAT AUTOMOTORES: Initiates Bankruptcy on Court Orders B R A Z I L AMAZONIA CELULAR/TELEMIG CELULAR: Moody's Assigns `B2' To Notes EMBRATEL: Fittel Initiates Legal Action to Block Sale SABESP: Details Terms Dividend Payment Terms C O L O M B I A MILLICOM INTERNATIONAL: Updates Subscribership Growth Trends J A M A I C A AIR JAMAICA: To Start Servicing Suspended Flights by Month's End M E X I C O TV AZTECA: Brokerage Cut Stock Outlook Over Debt Concerns V E N E Z U E L A PARMALAT DE VENEZUELA: Still Meeting Obligations To Suppliers - - - - - - - - - - ================= A R G E N T I N A ================= ACCIONAMIENTES AVELLANEDA: Court Declares Company Bankrupt ---------------------------------------------------------- The Civil and Commercial Tribunal of Lomas de Zamora ruled that local company Accionemientos Avellaneda S.H. is officially bankrupt. According to Argentine news source Infobae, the court issued an ordered declaring the Company is "Quiebra Descretada". Mr. Carlos Debernardi, a local accountant, was assigned as the Company's receiver. He will verify creditors' claims and prepare the individual and general reports on the case. The report, however, did not mention whether the court has set the filing deadlines for the receiver's reports. CONTACT: Accionamientos Avellaneda S.H. Bulnes 6101 Wilde Carlos Debernardi Pasaje las Delicias 1181 Adrogue ADMINISTRACION LA BUENA VISTA: Receiver Verifies Creditor Claims ---------------------------------------------------------------- Buenos Aires accountant Daniel Ernesto Altman takes charge as receiver for the bankruptcy of local company Administracion la Buena Vista S.A.. Creditors must present their claims to the receiver for verification before March 19. The results of the verification process will be forwarded to the court through the individual reports, which are due on May 5 this year. The general report, which is prepared after the individual reports are processed at court, is due for filing on June 21. The city's Court No. 2 handles the Company's case, local news source Infobae relates. Clerk No. 3 assists the court on the case. CONTACT: Administracion la Buena Vista S.A. Ave Callao 1515 Buenos Aires Daniel Ernesto Altman Parana 774 Buenos Aires AMERICA REMOLQUES: Claims Filing Period Ends March 15 ----------------------------------------------------- Creditors of Argentine company America Remolques S.R.L. must have their claims authenticated before March 15 this year. The Company's receiver, Ms. Norma Zulema Vivares examines and verifies claims to determine the nature and amount of the Company's debts. A report by local news portal Infobae indicates that the Company entered bankruptcy on orders from Buenos Aires Court No. 1. Clerk No. 1 works with the court on the case, which will close with the liquidation of the Company's assets to repay creditors. CONTACT: Noemi Zulema Vivares Ave Cordoba 2626 Buenos Aires ATAUTA: Court Assigns Receiver to Oversee Bankruptcy ---------------------------------------------------- Buenos Aires Court No. 14 assigned Argentine accountant Ester Alicia Ferraro as receiver for the bankruptcy local company Atauta S.R.L., reports local news source Infobae. Clerk No. 28 works with the court on the case, which will close with the liquidation of the Company's assets to repay creditors. The credit verification process ends on April 7 this year. The Company's receiver, who verifies the claims, will prepare the individual reports, which are due at the court on May 24, after verifications are closed. The general report must be submitted to the court on June 23. CONTACT: Ester Alicia Ferraro Esmeralda 960 Buenos Aires CARDIOVAS: Court Sets Deadlines for Receiver's Reports ------------------------------------------------------ Buenos Aires Court No. 23, which holds jurisdiction over the bankruptcy of local company Cardiovas S.A., has set the deadlines for the filing of the receiver's reports. Local news portal Infobae indicates that the individual reports, which are prepared after the verification process is completed, are due on April 15, while the general report is due at the court on May 28. The Company's creditors are required to file their claims before March 1 this year. The receiver, Ms. Mirta Calfun Bendersky, will examine and authenticate creditors' claims in order to determine the nature and amount of the Company's debts. The results of the verification process will also be used as a standard for payments to be made after the Company's assets are liquidated. CONTACT: Mirta Calfun Bendersky Humahuaca 4165 Buenos Aires CLINICA ALVEAR: Court Declares Company Bankrupt ----------------------------------------------- Court No. 57 of the Civil and Commercial Tribunal of San Nicolas in Argentina orders the bankruptcy process to begin for local company Clinica Alvear S.A., according to Argentine news portal Infobae. The Company's assets will likely be liquidated at the end of the process to reimburse its creditors. The Company's receiver, Ms. Adriana Guildobaldi, will examine and authenticate creditors' claims until March 4. This is done to determine the nature and amount of the Company's debts. The receiver will also prepare the individual and general reports, whose deadlines were not indicated in the Infobae report. CONTACT: Clinica Alvear S.A. Alvear 57 San Nicolas Adriana Guidobaldi Alberdi 742 San Nicolas COLEGIO DON TORCUATO: Court Approves Reorganization Petition ------------------------------------------------------------ Court No. 6 of San Isidro in Argentina approved a motion for "Concurso Preventivo" filed by local company Colegio Don Torcuato S.H., reports Argentine news portal Infobae. The Company will undergo reorganization with Mr. Armando Albano as receiver. Creditors are required to file their individual reports before March 2 this year. This is done to determine the nature and amount of the Company's debts. The receiver, who verifies the reports, will prepare the individual reports after the verification process is completed. These reports must be submitted to the court on April 27. After the individual reports are processed at court, the receiver will prepare the general report, which must be submitted on June 10. CONTACT: Armando Albano Ave Centenario 725 San Isidro COMPANIA MEGA: Fitch Affirms Senior Secured Notes Rating -------------------------------------------------------- Fitch Ratings has affirmed Compania Mega S.A. (Mega) senior secured international debt rating at 'B+' and removed the Rating Watch Negative. The rating applies to an aggregate of approximately US$392.7 million of outstanding debt, consisting of approximately US$121 million of Class D floating-rate notes due 2009, US$102 million of Class E floating-rate notes due 2012, and US$170 million of 10.77% of Class G notes due 2014. Fitch has also affirmed the national scale rating of 'A' (arg) and assigns a Stable Outlook to Mega. The rating action reflects the recently renewed sponsors' guarantees, which ensure unconditional repayment of any outstanding debt through December 2005. Mega is owned by subsidiaries of 38% Repsol YPF S.A., 34% Petroleo Brasileiro S.A. (Petrobras), and 28% The Dow Chemical Company (Dow). Fitch's current senior unsecured debt ratings of the sponsors are as follows: Dow 'A-', Petrobras 'B+', YPF 'BB' and Repsol YPF 'BBB+' (YPF's guarantee is supported by a guarantee from its parent Repsol YPF). The sponsors' willingness to renew their respective guarantees validates the strategic importance of Mega to each sponsor, which are also the long-term contractual offtakers of Mega's production output. While debt holders will still rely on Mega's cash flow generation capacity from the sale of the project's production output, any debt service shortfall through 2005 will be supplemented by the financial support from the sponsors. In addition, the sponsors' guarantees incorporate the contractual obligation of the sponsors to repay any outstanding debt held by a noteholder upon that noteholder's exercise of its right to put its debt holding on either of the two specified dates of Jan. 15, 2004 and Dec. 1, 2005 prior to the expiration of the guarantees. In spite of a challenging economic environment in Argentina that followed the economic distress in December 2001, Mega has maintained satisfactory operations and financial performance over the past 24 months. For the first nine months of 2003, Mega generated over US$268 million of sale revenues with production output that averaged 1,016,000 metric tonnes (mt) and realized prices that averaged approximately US$296 per mt for ethane, US$292 per mt for LPG, and US$261 per mt for natural gasoline. Average production output was up approximately 15% and average realized prices for Mega's three products improved by greater than 45% compared to the prior year. As a result of the higher output and stronger commodity prices, Mega maintains a strong liquidity position with approximately US$146 million of excess cash held offshore at the end of November 2003. Pursuant to the note indenture, these funds could be used for debt prepayment. Mega is a US$715 million natural gas separation and fractionation facility with an annual capacity to produce 369,000 mt of propane, 242,000 mt of butane (collectively the LPG mix); 562,000 metric tons of ethane, and 223,000 mt of natural gasoline. Project revenues consist largely of export sales of LPG and natural gasoline to Petrobras and local ethane sales to PBB Polisur (an ethylene producer owned by Dow and YPF). CONTACT: Fitch Ratings Caren Y. Chang Phone: 312-368-3151 Cecilia Minguillon Phone: +5411-4327-2444 Gersan Zurita Phone: 212-908-0318 Matt Burkhard, Media Relations Phone: 212-908-0540 CONVERTER: Court Declares Company Bankrupt ------------------------------------------ Buenos Aires Court No. 8 makes official the bankruptcy process for local company Converter S.A. "Quiebra", placing the Company under bankruptcy protection. The Company is placed in the hands of its receiver, Mr. Jorge Luis Blazquez. Creditors are required to file their claims before March 23 this year. After verifying claims, the receiver will prepare the individual reports, which are to be submitted to the court on May 7. He will also prepare a general report, which is due for filing on June 22, after the individual reports are processed at the court. CONTACT: Converter S.A. Cordoba 456 Buenos Aires Jorge Luis Blazquez Oro 2381 Buenos Aires CORMAT ARGENTINA: Informational Meeing Set for March 18 ------------------------------------------------------- The required creditor assembly for the reorganization of Argentine company Cormat Argentina S.A. will be held on March 18 this year, says Infobae. This meeting is one of the final steps in a reorganization process. The meeting comes after the Company's receiver has filed at the court the general report, which is a consolidation of the individual reports that contain the results of the credit verification process. Court No. 1 of Salta's South District Civil and Commercial Tribunal. CRESUD: Announces Execution of Warrants, Raises $6.4M ----------------------------------------------------- Cresud S.A.C.I.F. y A. (Nasdaq: CRESY) (BCBA: CRES) (the Company) announces the execution of warrants attached to its Convertible Notes for a total 5,334,919 units, consequently raising US$ 6.4 million. On December 31, 2003, the holders of the Company's Convertible Notes executed their warrants for a total 5,334,919 units. As a result, 10,505,936 shares of $1 nominal value each were issued (1,050,594 ADRs). As of today, outstanding shares total 146,374,345 (14,637,435 ADRs), while outstanding Convertible Notes and warrants amount to 44,267,630 and 44,515,078 face value, respectively. Executing the warrants allowed the Company to raise funds totaling US$ 6.4 million. DIRECTV LA: Seeks To Settle Infront Rejection Claim --------------------------------------------------- DirecTV Latin America's explains its principal goal in the Chapter 11 case was to use the means provided under the Bankruptcy Code to effectively address the increasing problems caused by its uneconomic programming agreements. As an initial step in that effort, DirecTV Latin America sought to reject certain uneconomic agreements, including the agreement it has with Infront WM GmbH, formerly known as Kirsch Media WM GmbH. Pursuant to the Agreement, the Debtor licensed the right to broadcast and make available to its ultimate subscribers the 2002 and 2006 FIFA World Cups, and was afforded certain sublicensing and other rights. M. Blake Cleary, Esq., at Young, Conway, Stargatt & Taylor, LLP, in Wilmington, Delaware, relates that before the Petition Date, Infront commenced litigation in Switzerland seeking damages for alleged breaches by the Debtor under the World Cup Agreement. The Debtor has taken the position in the Swiss Action that the World Cup Agreement had terminated. The Swiss Action remains pending but is presently stayed. Mr. Cleary tells the Court that the Debtor rejected its remaining obligations under the World Cup Agreement. Based on the rejection, Infront timely filed a proof of claim for $272,500,000 in damages allegedly resulting from the Debtor's rejection. Subsequently, the Office of the United States Trustee appointed Infront to the Creditors Committee. The Debtor has reviewed Infront's proof of claim and assessed the extent to which, consistent with its five-year business plan, it can broadcast the World Cup and certain other FIFA additional events on an economic basis. The Debtor negotiated with Infront to settle the Infront Rejection Claim and to continue broadcasting the World Cup Soccer. According to Mr. Cleary, Infront and the Debtor agreed that the Infront Rejection Claim will be allowed as a general unsecured claim for $185,000,000. The Agreement is conditioned, however, on the filing and the ultimate confirmation of the Debtor's Plan, which provides for a cash distribution to allowed general unsecured claimholders in an amount not less than 20% of the holder's allowed claims. On December 11, 2003, the Debtor filed a Plan and Disclosure Statement providing for the requisite 20% cash distribution to general unsecured creditors. The Debtor has been advised that the Plan is acceptable to, and will be actively endorsed by, the Creditors Committee. As an integral part of the Settlement, Infront and the Debtor have agreed on the terms of a new programming agreement pursuant to which Infront will license to the Debtor certain non-exclusive rights to broadcast the 2006 World Cup to its ultimate subscribers. The effectiveness of the New Infront Agreement remains expressly subject to the Plan Effective Date. As a further integral part of the Settlement, the Debtor and Infront's affiliate, Infront WM AG, have agreed to amend, and the Debtor has agreed to assume, a certain Additional Events Agreement and to pay Infront a compromised cure claim. The New Infront Agreement incorporates substantial differences from the terms contained in the original rejected Infront Agreement including critical reductions in the rates to be paid by the Debtor. The Additional Events Agreement also contains significant rates reduction. Mr. Cleary explains that due to their proprietary nature, the terms, conditions and related information set forth in the New Infront Agreement and the Additional Events Agreement have not been disclosed to any unrelated third party, except for the professionals of the Creditors Committee who reviewed the information and assured the Debtor of the Committee's support regarding its entry into the New Infront Agreements. Broader disclosure would likely undermine the overall settlement between the Debtor and Infront. Without confidentiality, the Debtor's efforts to confirm its Plan could be substantially impaired. Mr. Cleary notes that as part of the Settlement, all litigation with respect to the World Cup Agreement, including the litigation pending in Switzerland, will be dismissed with prejudice. Accordingly, the Debtor asks the Court to approve the settlement of the Infront Rejection Claim. (DirecTV Latin America Bankruptcy News, Issue No. 17; Bankruptcy Creditors' Service, Inc., 215/945- 7000) FINCA DEL PARANA: Enters Bankruptcy ----------------------------------- Finca del Parana S.A., which is based in Santa Fe, Argentina, enters bankruptcy on orders from Court No. 4 of the province's Civil and Commercial Tribunal. Infobae relates that the court ruled that the Company is "Quiebra". The deadline for the general report is April 30 this year. This report is a consolidation of the individual reports, which contain the results of the verification process. This will be used as basis for the distribution of payments after the Company's assets are liquidated. CONTACT: Finca del Parana S.A. Ruta Nacional 11km 481 Recreo Sur Santa Fe GASODUCTO GASANDES: Restructures $168M With Multiple Banks ---------------------------------------------------------- Gasoducto GasAndes (Argentina) SA successfully restructured US$168 million of debt on December 2003. The debt was obtained under a 1996 Credit Agreement with a group of banks led by Credit Lyonnais. The restructuring process also included Gasoducto GasAndes' shareholders, the Bank Bilbao Vizcaya Argentaria (Spain) SA and a group of banks including Banco Societe Generale, ANZ, Dexis, Fortis, KBC, and the Royal Bank of Scotland. Under the terms of the agreements, the debt corresponding to Gasoducto GasAndes has been refinanced with some conditions; the term for the payment of Gasoducto GasAndes has been extended; Gasoducto GasAndes constitutes guarantee over different actives and finally Total SA, the major shareholder, has given additional guarantees. During the restructuring process, Gasoducto GasAndes was represented by lawyer Ms. Magdalena Enei, while Total SA was represented by Mr. Alain Vedier. Sullivan & Cromwell LLP has been the assessor of Total SA and Gasoducto GasAndes, while Milbank, Tweed, Hadley & McCloy LLP has acted as BBVA and Societe Generale's assessor. Ms. Cariola Diez Perez-Cotapos acted as the assessor of the group of banks led by Societe Generale in relation to the Chilean law. IRSA: Convertibles, Warrants Issue Raises $5.6 Million ------------------------------------------------------ IRSA Inversiones y Representaciones Sociedad Anonima (NYSE:IRS) (BCBA: IRSA) (the Company) announced the acquisition of shares and warrants of Banco Hipotecario S.A., as well as the execution of warrants attached to the Company's Convertible Notes for a total 4,628,808 units, consequently raising US$ 5.6 million. Acquisitions of shares and warrants of Banco Hipotecario S.A. (BCBA: BHIP). On December 30, 2003, the Company acquired from EMOF LLC and Quantum Industrial Partners LDC, 1,975,990 shares and 18,020 warrants of Banco Hipotecario S.A., representing the right to purchase an additional amount of approximately 1,802,000 shares. The Company paid US$ 2.3868 per share and US$ 33.86 per warrant, disbursing a total US$ 5.3 million. Furthermore, Ritelco S.A., a company controlled by IRSA, acquired from the same firms 2,140,277 shares of Banco Hipotecario S.A. and 19,517 warrants, paying US$ 2.3868 per share and US$ 33.86 per warrant, resulting in a total payment of US$ 5.8 million. After the above-mentioned acquisitions, IRSA's total stake in Banco Hipotecario S.A. increased from 3.66% to 4.98%, while Ritelco's stake grew from 3.56% to 4.99%. The Company increased its investment in Banco Hipotecario S.A. because of its attractive long-term prospects and considering the mortgage lending services to be complementary to its diversified real estate activities. Execution of warrants attached to the Convertible Notes. On December 31, 2003, the holders of the Company's Convertible Notes executed their warrants for a total 4,628,808 units. As a result, 8,493,223 shares of $1 nominal value each were issued (849,322 ADRs). As of today, outstanding shares total 229,289,058 (22,928,906 ADRs), while outstanding Convertible Notes and warrants amount to 95,205,870 and 95,371,192 face value, respectively. The execution of the warrants allowed the company to raise funds for a total US$ 5.6 million. CONTACT: IRSA Inversiones y Representaciones Sociedad Anonima Gustavo Mariani, Finance Manager Phone: +011-5411-4323-7513 Email: gm@irsa.com.ar Home page: http://www.irsa.com JUGUETERIA ATLANTIDA: Slips from Reorganization to Bankruptcy ------------------------------------------------------------- Argentine company Jugueteria Atlantida S.R.L. enters bankruptcy on orders from Court No. 2 of the Civil and Commercial Tribunal of Rafaela in Santa Fe. Infobae reports that the Company was undergoing reorganization. The schedule for the bankruptcy proceedings is yet to be determined. CONTACT: Jugueteria Atlantida S.R.L. Agustin Alvarez 329 Rafaela, Santa Fe NICOLOSI: Reorganization Starts with Court Approval --------------------------------------------------- Argentine company Nicolosi S.A. will undergo reorganization after receiving court permission from the Civil and Commercial Tribunal of Quilmes in Argentina. According to local news portal Infobae, the province's Court No. 6 handles the case. The court assigned Mr. Ricardo Jorge Randup as the Company's receiver, the source adds. He will verify creditors' claims until February 5. The individual reports, which are prepared after the verification process is completed, must be submitted to the court on March 15. The general report should follow on May 26. The informative assembly will be held on August 1 this year. This is one of the last parts of a reorganization process. CONTACT: Nicolosi S.A. Camino General Belgrano 6003 Florencio Varela Ricardo Jorge Randup Moreno 525 Quilmes TELECOM ARGENTINA: Amends Debt Restructuring Offer Terms -------------------------------------------------------- Telecom Argentina, a telecommunications firm controlled by Telecom Italia and Grupo Werthein, amended the terms of the second stage of its debt restructuring offer launched in April 2003. The term sheet that is circulating among some of the banks of Telecom's creditors steering committee - composed by Citibank, Banco Rio, Japan Bank, BBVA Frances, WestLB and BankBoston - offers to exchange debt for a long-term bond that, unlike the initial offer, will not have a 66% discount in face value. Additionally, Telecom would have chosen not to offer 30% of its capital stock to creditors, a possibility that had been announced in April. Telecom Argentina spokesman, Pablo Talamoni, said they don't know yet when the definitive offer will be announced. Telecom has to renegotiate US$2.9 billion in defaulted debt and is believed to be launching a formal restructuring offer this year. Its CEO, Carlos Felices, said the company will likely seek an acuerdo preventivo extrajudicial, or APE, an out-of-court settlement in which two-thirds approval from creditors will allow the Company to secure legal approval for the deal. TREPAT AUTOMOTORES: Initiates Bankruptcy on Court Orders -------------------------------------------------------- Trepat Automotores S.A. entered bankruptcy on orders from Buenos Aires Court No. 15. Clerk No. 29 works with the court on the case, reports local news portal Infobae. The Company's assets will be liquidated at the end of the process. The Court assigned Mr. Salvador Lamarchina as the Company's receiver. He will authenticate creditors' claims until April 7 this year. The After verifications are closed; the receiver will prepare the individual reports, followed by the general report. Infobae, however, did not mention whether the court has set the deadlines for these reports. CONTACT: Salvador Lamarchina Esmeralda 647 Buenos Aires =========== B R A Z I L =========== AMAZONIA CELULAR/TELEMIG CELULAR: Moody's Assigns `B2' To Notes --------------------------------------------------------------- Moody's Investors Service assigned Thursday a B2 rating to the notes units issuance worth US$70 million due 2009 issued by Telemig Celular S.A. ("Telemig"). Concurrently, the ratings agency assigned a B2 rating to the notes units issuance worth US$30 million due 2009 issued by Amazonia Celular S.A. ("Amazonia"). The rating outlook is stable. The rating assigned to the notes units is principally based on the credit quality of Amazonia and is not constrained by the convertibility risk implied by Moody's Brazil country ceiling for foreign currency bonds and notes of B2, Moody's said. The rating reflects the credit quality of Amazonia because 30% of the debt service of the notes units will depend on payments from Amazonia and are not guaranteed by Telemig, which has a stronger credit profile, Moody's added. Although Moody's recognizes the existence of a "keep-well" structure allowing Telemig to make investments in Amazonia, the assigned rating does not incorporate explicit support from Telemig to Amazonia due to the absence of a stronger, contractually-binding agreement that does not possess optionality. Finally, the rating incorporates Moody's expectation that all outstanding financial covenant waivers and requests for amendment will be concluded upon the issuance of the notes. The rating is restrained by Amazonia's exposure to an intense competitive environment composed of three larger and better capitalized national and international operators in the company's concession region. Competitors may benefit from more consistent access to the capital markets and scale advantages on handset purchases. The rating also incorporates Moody's expectation that Amazonia's planned network overlay will lead to negative free cash flow in 2004, possibly resulting in refinancing risk. Finally, the rating reflects the extremely low per capita income in Amazonia's concession area, which Moody's expects will continue to cause below-average subscriber penetration rates and above-average churn rates. Telemig Celular is the leading provider of mobile communications services in the state of Minas Gerais, Brazil, while Amazonia Celular is the leading provider of mobile communications services in a region covering the states of Maranhao, Para, Amazonas, Amapa and Roraima in the northern region of Brazil. EMBRATEL: Fittel Initiates Legal Action to Block Sale ----------------------------------------------------- As part of an attempt to block the purchase of Brazilian telco Embratel by a consortium of three local incumbents, telecom workers federation Fittel will lodge a formal complain with the antitrust authority. Business News Americas reports that Telemar, Brasil Telecom and Telefonica announced their intention to acquire Embratel last year, but so far, the government has made no decision on the matter. The law says that Embratel, as the country's incumbent long distance operator, cannot be acquired by another incumbent or joint venture of incumbents. However, some market analysts believe the government is prepared to bend the law in the Embratel case. SABESP: Details Terms Dividend Payment Terms -------------------------------------------- Sabesp - Cia. de Saneamento Basico do Estado de Sao Paulo (NYSE:SBS) (Bovespa:SBSP3), the largest water and sewage utility company in the Americas and the third-largest in the world (in terms of number of customers), announced that in a meeting held Thursday its Management Bodies deliberated, pursuant to section 2 of Article 30 of its Bylaws, the credit and payment of Dividends in the form of Interest on Own Capital, referring to November and December 2003, to the holders of shares on the base date of Jan. 19, 2004. I - AMOUNT, DATE AND CREDIT AND PAYMENT TERMS The Dividends as Interest on Own Capital, totaling R$ 190,813,171.44 correspond to R$ 6.70 per thousand common shares and shall be paid no later than 60 days after the 2004 Annual Shareholders' Meeting. II - WITHHOLDING INCOME TAX Withholding Income Tax will be deducted from the amount of payment of Dividends as Interest on Own Capital, pursuant to current legislation, except for exempt shareholders who prove this condition prior to Jan. 30, 2004, by presenting related documents to the Company at Rua Costa Carvalho 300 - Sao Paulo - SP, Zip Code: 05429-900, in attention to the Funding and Investor Relations Superintendency, FI, suite 267. III - ATTRIBUTION TO DIVIDENDS Said Interest on Own Capital are declared in substitution to the Dividends referring to October 2003 and computed in the calculation of the mandatory minimum dividends, as provided in Article 30 - item II, letter "b" of the Company's Bylaws and in Paragraph 7 of Article 9 of Law 9249/95. IV - INSTRUCTIONS FOR THE CREDIT AND PAYMENT OF INTEREST ON OWN CAPITAL a) The shareholders will have their credits available on the initial date of payment of such right, as set forth in above item I, according to their banking account and domicile provided to Banco Itau S.A. b) To shareholders whose registry information does not include either their Individual/Corporate Taxpayer's Identification Number (CPF/CNPJ) or complete banking instructions (bank, branch and account number), the interest will be credited, pursuant to item I above, as of the third day after pending information is updated in the electronic files of Banco Itau S.A.. This can be done either at any of its branches or by mail sent to "Banco Itau S.A - Diretoria de Acoes e Custodia" at Avenida Engenheiro Armando de Arruda Pereira, 707, 9th floor - Jabaquara - Zip Code 04344-902 - Sao Paulo - SP. V - RECORD DATE The shares will start being traded ex-interest and ex-dividends on Jan. 20, 2004. CONTACT: Sabesp Investor Relations: Helmut Bossert Phone: 5511 3388-8664 Email: hbossert@sabesp.com.br Marisa Guimaraes Phone: 5511 3388-9135 Email: marisag@sabesp.com.br Home page: www.sabesp.com.br =============== C O L O M B I A =============== MILLICOM INTERNATIONAL: Updates Subscribership Growth Trends ------------------------------------------------------------ - Highest ever quarterly additions in total subscribers*(i) - 30% underlying annual growth in total subscribers*(i) - 28% underlying annual growth in proportional subscribers*(i) Millicom International Cellular S.A. (MIC) (Nasdaq Stock Market: MICC), the global telecommunications investor, announced Thursday that in the fourth quarter of 2003 its worldwide operations in Asia, Latin America and Africa added 386,701 total net new cellular subscribers. Total underlying subscriber additions excluding El Salvador for the fourth quarter were the highest on record. On a proportional basis, MIC added 218,931 subscribers, bringing the total at December 31, 2003 to more than 4 million. At December 31, 2003, MIC's worldwide cellular subscriber base increased to 5,690,542 cellular subscribers from 4,002,911 as at December 31, 2002. Particularly significant percentage increases were recorded in Ghana, Senegal, Mauritius, Sri Lanka and Vietnam. Both Asia and Africa recorded their best ever quarter in terms of total subscriber growth with additions of respectively 239,390 and 129,761 subscribers. For Asia, this represented an increase in total subscribers of 45% from December 31, 2002 and 10% from September 30, 2003 and for Africa, an increase of 63% from December 31, 2002 and 24% from September 30, 2003. At December 31, 2003, MIC's proportional subscriber base increased to 4,025,577 from 2,784,187 at December 31, 2002, an increase of 44%. Cellular Operations including El Salvador (i) Proportion- Proportion- Annualized Total Total Annualized al (ii) al (ii) Increase Subs Subs Increase Subs at Subs at at at Dec 31, Dec 31, Dec 31 Dec 31 2003 2002* 2003 2002* Asia 1,678,336 1,158,253 45% 2,677,149 1,841,537 45% Latin 1,883,809 1,359,437 38% 2,351,889 1,755,124 34% America Africa 463,432 266,497 72% 661,504 406,250 63% Total 4,025,577 2,784,187 44% 5,690,542 4,002,911 42% Cellular Ops (i) All numbers and comparatives exclude divested operations (ii) Proportional subscribers are calculated as the sum of MIC's percentage ownership of subscribers in each operation. * Excluding El Salvador, which was re-consolidated in September 2003 Within the 4,025,577 proportional cellular subscribers reported at the end of the fourth quarter, 3,550,322 were pre-paid customers. Excluding El Salvador, proportional pre-paid subscribers increased by 32% from December 2002. Pre-paid subscribers currently represent 88% of gross reported proportional cellular subscribers. Millicom International Cellular S.A. 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, MIC 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 Andrew Best Telephone: +44 (0) 20 7321 5022 ============= J A M A I C A ============= AIR JAMAICA: To Start Servicing Suspended Flights by Month's End ---------------------------------------------------------------- After suspending flights to Nassau and Grand Cayman beginning 2002 because of declining passenger loads, Air Jamaica will resume flying to both destinations on January 29, reports RadioJamaica. Air Jamaica Express, which has been serving both destinations, said there has been an increased demand for airlift to and from the islands in recent months. And according to Air Jamaica's Senior Vice President, Industry Affairs, Will Rodgers, the 37- seat Dash 8 Aircraft operated by Air Jamaica Express is unable to adequately service the routes. Any Express staff dislocated by the changes will be given preference for employment as the national airline returns to the routes, said Air Jamaica. =========== M E X I C O =========== TV AZTECA: Brokerage Cut Stock Outlook Over Debt Concerns --------------------------------------------------------- Two brokerage firms on Thursday downgraded their recommendation on Mexican broadcaster TV Azteca (NYSE: TZA) amid concerns about a dispute over disclosure of debt transactions at the broadcaster's wireless affiliate Unefon SA (NEFONA.MX). Deutsche Ixe cut its recommendation on TV Azteca to "sell", while Merrill Lynch cut the broadcaster to "sell" from "buy". Earlier, J.P. Morgan cut the stock to "underweight" from "neutral." The downgrades stem from the Company's failure to disclose last year that TV Azteca chairman Ricardo Salinas Pliego and Unefon chairman Moises Saba purchased US$107 million in Unefon debt from Canadian communications equipment supplier Nortel Networks via private equity firm Codisco Investments. Through Codisco, Salinas Pliego and Saba then sold the debt back to Unefon for US$325 million, profiting US$218 million. TV Azteca's outside counsel, Akin Gump Strauss Hauer & Feld, had quit over concerns the Company may have broken U.S. laws by not fully disclosing material facts surrounding the debt deal. In meetings with analysts in New York last week, TV Azteca management acknowledged that the Company may come under investigation by the U.S. Securities and Exchange Commission because of the deal. "Although we're not totally surprised to have confirmed that Mr. Salinas and Mr. Saba were behind this transaction, we are amazed at the amount of profit they made in the operation," wrote analysts with DeutscheIXE. ================= V E N E Z U E L A ================= PARMALAT DE VENEZUELA: Still Meeting Obligations To Suppliers ------------------------------------------------------------- Parmalat de Venezuela continued to pay local milk suppliers despite its Italian parent company Parmalat's financial woes, El Universal reports, citing Jose Agustin, president of Venezuela's Confagan cattle and agriculture group. Mr. Agustin revealed that the local unit of Parmalat has not reduced the volume of orders from local milk producers and that the company's production is normal. According to him, local investors are waiting on the sidelines to see what will happen with Parmalat's 40% stake in the powdered milk market and 15% stake in the pasteurized milk market. "The conditions exist for this company to be administered by Venezuelan producers and investors," said Mr. Agustin. Venezuelan officials have said the state may intervene in Parmalat's operations if the Company runs into financing and supply problems. However, Parmalat de Venezuela has insisted that its finances are sound despite the fraud scandal, including an arrest warrant out for the Venezuelan subsidiary's president. The subsidiary has said the arrest warrant for Giovanni Bonici had nothing to do with his activities as president of Parmalat de Venezuela. Instead, Mr. Bonici is wanted in connection with his actions as chairman of Bonlat, Parmalat's subsidiary in the Cayman Islands, said a recently released statement issued by Parmalat de Venezuela. *********** 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 2004. 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. 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