/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040115.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 Thursday, January 15, 2004, Vol. 5, Issue 10 Headlines A R G E N T I N A AHOLD: Appeals To Shareholders BLC: To Undergo Reorganization CABLEVISION: $375M of Bonds Get `raD' from Argentine S&P CAPEX: S&P Issues Junk Ratings To Bonds DROGUERIA MAGNA: Moody's Assigns `C' Rating to $5M of Bonds PARMALAT ARGENTINA: Operations Sound Despite Parent's Woes SPARTAK ARGENTINA: Enters Bankruptcy on Court Orders TRANSPORTE AUTOMOTOR: Enters Bankruptcy B E R M U D A LORAL SPACE: Reports Satellite's Solar Array Deployment Delay B R A Z I L AES CORP.: Names Scott Cunningham VP - Investor Relations GERDAU: New Wire Rod Rolling Mill Begins Production PARMALAT BRAZIL: Local Firm Initiates Bankruptcy Proceedings TCP: Terminates Proposed Merger of Shares with TCO VOTORANTIM GROUP: Moody's Rates B1 to Proposed Notes Issuance * Fitch Assigns 'B+' Rating to Brazil's $1.5B Issue * S&P Rates Brazil's $1.5B Bond 'B+'; Affirms Sovereign Ratings C H I L E COEUR D'ALENE: Closes $180M Convertible Notes Offering C O L O M B I A CENTRAGAS: S&P Affirms Ratings; Outlook Stable * S&P Assigns 'BB' Rating to Colombia's $500M, 20-Year Bond D O M I N I C A N R E P U B L I C TRICOM: Announces Director Resignations TRICOM: Announces New Financing Agreement J A M A I C A JPSCO: Councilor Seeks Employee Shake-up M E X I C O GRUPO MEXICO: Awaits Exploration Results ================= A R G E N T I N A ================= AHOLD: Appeals To Shareholders ------------------------------ Ahold appealed Tuesday to the Association of Dutch Stockholders to discontinue the claims it has announced against Ahold. These claims are not in the interests of shareholders. Ahold has issued this appeal in an open letter. This letter has been published Tuesday in several Dutch national newspapers. This letter has also been published today on Ahold's website in English, so that non-Dutch speaking shareholders can be informed about Ahold's appeal. BLC: To Undergo Reorganization ------------------------------ BLC S.A., based in the Argentine province of Santa Fe, will undergo reorganization after getting the go signal from Court No. 13 of the province's Civil and Commercial Tribunal. Local news portal Infobae relates that the court approved the Company's "Concurso Preventivo" petition recently. The Company's receiver, Mr. Ruben Dario Tarbucci is required to file the individual reports at the court on February 6 this year. These reports are prepared after the credit verification process is completed. The general report, a consolidation of the data in the individual reports, must be submitted to the court on March 22. CONTACT: BLC S.A. Cerrito 1594 Rosario, Santa Fe Ruben Dario Tarbucci Santiago 1070 Rosario, Santa Fe CABLEVISION: $375M of Bonds Get `raD' from Argentine S&P -------------------------------------------------------- A total of US$375 million of corporate bonds issued by Cablevision S.A. were rated `raD' by Standard & Poor's International Ratings, Ltd. Sucursal Argentina. The rating was based on the Company's finances as of the end of September last year. The rating applies to US$275 million worth of bonds called "Serie 5 por U$S 275 MM bajo el Prog. de Ons. a Mediano Plazo por U$S1500 MM". These come due on May 1, 2009, and are classified under "Series and/or Class". Another US$100 million of the Company's bonds also received default ratings. The Comision Nacional de Valores, the country's securities regulator, described these bonds as "Serie 9 de ON por USD 100 MM bajo el Programa de USD 1500 MM". These are also classified under "Series and/or Class", with undisclosed maturity date. The ratings agency said that an obligation is rated `raD' when it is in payment default, or the obligor has filed for bankruptcy. The rating may also be sued when interest or principal payments are not made on the date due, even if the applicable grace period has not expired, unless S&P believes that payments will be made during such grace period. CAPEX: S&P Issues Junk Ratings To Bonds --------------------------------------- Standard & Poor's International Ratings, Ltd. Sucursal Argentina assigned junk ratings to Capex S.A.'s corporate bonds. According to Argentina's securities regulator, the Comision Nacional de Valores, the given ratings are based on the Company's finances as of October 31, 2003. S&P issued a `raD' rating to US$105 million of "obligaciones negociables simples", due on December 23 this year. The same rating applies to US$40 million of the Company's bonds due on June 11. These set of bonds are classified under "simple issue". An obligation is rated `raD' when it is payment default, or the obligor has filed for bankruptcy, said the ratings agency. This rating is also used when interest or principal payments are not made on the date due, even when the applicable grace period has not expired, unless Standard & Poor's has reason to believe that payments will be made during the grace period. Another US$150 million of the Company's bonds due on January 1, 2005 received a `raCC'. The bonds are also called "obligaciones negociables simples", and are under "simple issue". S&P said that an obligation with this rating is currently highly vulnerable to non-payment. DROGUERIA MAGNA: Moody's Assigns `C' Rating to $5M of Bonds ----------------------------------------------------------- A total of US$5 million of corporate bonds issued by Argentine company Drogueria Magna S.A. received a `C' rating from Moody's Latin America Calificadora de Riesgo S.A. last Friday. The rating denotes that the bonds possess a risk of nonpayment. The Comision Nacional de Valores, Argentina's securities regulator, described the affected bonds as "obligaciones negociables simples". The bonds matured in April last year and are classified under "Simple Issue". The issued rating was based on the Company's finances as of October 31, 2003. PARMALAT ARGENTINA: Operations Sound Despite Parent's Woes ---------------------------------------------------------- Parmalat Argentina SA insists that operations in this country are running just as smoothly as they were before the scandal with its Italian parent exploded. Dow Jones relates that Italy's Parmalat filed for bankruptcy protection in December after fraudulent accounting practices surfaced, sparked by the discovery that it did not have EUR3.95 billion in a Bank of America (BAC) Cayman Islands account as it had earlier reported. But despite the Italian parent's woes and Argentina's own financial crisis of recent years, "everything is the same and continuing normally right now," a Parmalat Argentina spokesperson. Guillermo Draletti, president of the General Dairy Farmers Union in Argentina, said none of his organization's 2,000 members have reported missed payments from Parmalat. However, the union is recommending that milk producers ask the Company to make more frequent payments, requesting a check every week instead of the current period of between 20 and 50 days. "This is a recommended measure because Parmalat Argentina often depends on Parmalat Brasil," Draletti said. Parmalat Brasil (E.PMT) has fallen behind on payments to milk suppliers and announced this week that it is returning a tomato and pulp factory it purchased in November from Unilever PLC (UL). SPARTAK ARGENTINA: Enters Bankruptcy on Court Orders ---------------------------------------------------- Spartak Argentina S.A. entered bankruptcy on orders from Buenos Aires Court No. 26, reports local news source Infobae. The city's Clerk No. 51 assists the court on the case, which will close with the liquidation of the Company's assets to repay creditors. In the meantime, the source did not mention whether the court has chosen a receiver for the case. CONTACT: Spartak Argentina S.A. Coronel Diaz 2473 Buenos Aires TRANSPORTE AUTOMOTOR: Enters Bankruptcy --------------------------------------- Court No. 1 of the Civil and Commercial Tribunal of Salta declared local company Transporte Automotor del Milagro S.R.L. "Quiebra", reports local news portal Infobae. Without revealing the name of the receiver assigned to the case, the source indicates that the deadline for the individual reports is February 23 this year. The general report should follow on April 5. The Company's assets will be liquidated at the end of the bankruptcy process to repay its creditors. CONTACT: Transporte Automotor del Milagro S.R.L. Zuviria 1020 Salta ============= B E R M U D A ============= LORAL SPACE: Reports Satellite's Solar Array Deployment Delay ------------------------------------------------------------- Loral Space & Communications (OTCBB: LRLSQ), said Tuesday that after launch on January 10, 2004, the Telstar 14/Estrela do Sul communications satellite fully deployed its South solar array but only partially deployed its North solar array. Space Systems/Loral, the manufacturer of the satellite, is in the process of collecting data prior to the initiation of available corrective actions to complete deployment of the North array. Incomplete deployment of a solar array, if not corrected, reduces a satellite's power. The satellite is in safe mode and has more than sufficient power to maintain satellite health. Further details will be available after completion of the investigation. The satellite, to be operated by Loral Skynet do Brasil at 63 degrees West longitude, was sent into space Saturday night on a Boeing Sea Launch Zenit-3SL rocket from the Odyssey Launch Platform, positioned on the equator in the Pacific Ocean. It is insured for partial and total losses up to a maximum of $250 million. 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. For more information, visit Loral's web site at www.loral.com. CONTACT: Jeanette Clonan John McCarthy (212) 697-1105 =========== B R A Z I L =========== AES CORP.: Names Scott Cunningham VP - Investor Relations --------------------------------------------------------- The AES Corporation (NYSE:AES) announced Tuesday that Scott Cunningham has been appointed Vice President, Investor Relations. Prior to joining AES, Mr. Cunningham established and led the investor relations program for Praxair, Inc. (NYSE:PX), a global supplier of industrial gases. During his investor relations tenure, Praxair, Inc. significantly increased sell-side research coverage of the company and broadened its institutional investor base. "I am pleased to welcome Scott in this important role," said Paul Hanrahan, President and Chief Executive Officer. "He has demonstrated that a strong, proactive investor relations program can bring real value to a corporation. Together with his financial, business management, and strategic planning experience, he will bring a valued perspective to our management team." Mr. Cunningham will be responsible for media and financial communications in addition to investor relations. AES is a global power provider whose presence spans 27 countries. The company's electricity generating assets include interests in 116 facilities totaling 45 gigawatts of capacity, and AES's electricity distribution network delivers energy to 11 million end-use customers. CONTACT: AES Corporation Scott Cunningham Phone: 703-558-4875 Web site: www.aes.com Investor relations: investing@aes.com GERDAU: New Wire Rod Rolling Mill Begins Production --------------------------------------------------- The new rolling mill at Gerdau Acominas plant, located in the Ouro Branco (MG), has just produced its first wire rod coils. The most up-to-date equipment for wire rod in the Americas, has an installed capacity of 550 thousand metric tons per year and required an investment of US$ 66 million. Wire rod is the input for wires and these are used in the civil construction, agricultural and industrial sectors. The rolling mill is in the testing phase and will be producing distinct quality wire rod due to the new technology being used. The product will start shipping this first quarter and will be directed to foreign markets in which it is currently in high demand. According to the International Iron and Steel Institute (IISI), the world's crude steel output in 2004 should reach for the first time the one billion ton mark, an increase of 6% over the performance of 2003, a reflex of the increase in international demand, especially China. "We are confronted with a scenario of great demand for steel products throughout the world and wire rod, a prime input for other steel production phases, is also under great demand pressure, especially by Asian countries", states the CEO Mr. Jorge Gerdau Johannpeter. The Gerdau Group ended 2003 with an output over 12 million metric tons of crude steel in the Americas, compared to 9.4 million tons in the previous period. Gerdau Acominas already has four wire rod rolling mills in the country and located at the following mills: Riograndense (RS), Cosigua (RJ), Aconorte (PE) and Usiba (BA). At these units, the wire rod is produced in accordance with the most rigid international and Brazilian norms and supplies the domestic market and the drawing mills in the country - where it is converted into greater value-added products -, in addition to being exported to all continents. PARMALAT BRAZIL: Local Firm Initiates Bankruptcy Proceedings ------------------------------------------------------------ Orlandia S.A., a Brazilian food company, initiated bankruptcy proceedings against Parmalat Brasil before the 29th branch of the Sao Paulo court. The action, according to Dow Jones Business News, came a month after the world's major milk retailer started to miss payments to several suppliers in Brazil. But Orlandia is willing to withdraw its claim if Parmalat Brasil reaches an accord with the Company. Orlandia said Parmalat Brasil has until February to meet payments of up to BRL0.9 million. Although the implications of this measure are not clear for the time being, it is the last of a series of issues for Parmalat Brasil, after it missed a series of payments to its local suppliers, due to circumstances that were out of its control. Local daily Folha de S. Paulo has reported that Parmalat Brasil is BRL3.8 million behind on payments to the government's social security service. Parmalat denied it owed any money to the INSS. The local stock exchange halted trade in Parmalat Brasil's (LCAS4.BR) highly illiquid shares as of Tuesday, demanding a clarification about "bankruptcy proceedings reported in the press." TCP: Terminates Proposed Merger of Shares with TCO -------------------------------------------------- Telesp Celular Participacoes S.A. - "TCP" (NYSE: TCP) (BOVESPA: TSPP3 (Common), TSPP4 (Preferred), and Tele Centro Oeste Celular Participacoes S.A. - "TCO" (NYSE: TRO) (BOVESPA: TCOC3 (Common), TCOC4 (Preferred)), which operate under the brand VIVO, announced that the previously announced merger of shares (incorporacao de acoes) of TCO with TCP is terminated. Similarly, TCP announced that it has withdrawn the previously announced offer to convert preferred shares, no par value, into common shares, no par value, of TCP at a ratio of one to one, up to a limit of 78,752,717,772 in the aggregate for all shareholders. Preferred shares for which an election to convert has been submitted will be promptly freed for trading. TCP and TCO took these actions in light of the statement by the Comissao de Valores Mobiliarios (the Brazilian Securities Commission, or "CVM") on December 26, 2003 that the proposed merger of shares, in the CVM's opinion, "violates applicable laws" and the consequent suspension by TCP and TCO of the shareholders' meetings previously scheduled for January 7, 2004. Although TCP and TCO disagree with the arguments and conclusion stated in the CVM's decision and continue to be of the opinion that the merger of shares would be the best alternative for both companies and their shareholders, they believe the CVM's decision makes the implementation of the merger of shares, as originally proposed, uncertain due to the potential obstacles that may be created by third parties. Taking into account the best interest of their shareholders, therefore, management of TCP and TCO have concluded that the best decision in light of the situation is to cancel the merger of shares and withdraw the offer to convert. VOTORANTIM GROUP: Moody's Rates B1 to Proposed Notes Issuance ------------------------------------------------------------- Moody's Investor Service assigned a B1 foreign currency rating to the proposed issuance of approximately US$300 million in senior unsecured long term notes to be issued by Voto-Votorantim Overseas Trading Operations III Limited. The rating outlook is stable. The proposed issuance is guaranteed by Votorantim Participacoes S.A. (100% guarantee liability), Votorantim Celulose e Papel S.A. (guarantee liability limited to 15% of the outstanding amount of the notes), Cimento Rio Branco S.A. (guarantee liability limited to 45%), Companhia Mineira de Metais and Companhia Niquel Tocantins (joint guarantee liability limited to 40%) ("companies within the Votorantim group"). The B1 rating reflects the creditworthiness of the Votorantim group and the operating company guarantors and additionally incorporates convertibility risk of the Brazilian Real, Moody's said. As such, the rating is a function of the Company's underlying credit strength, the probability of a sovereign default implied by the Brazilian government's B2 foreign currency bond rating and the likelihood that, given a sovereign default, the government would impose a debt moratorium generally to companies domiciled in Brazil and specifically to debt issued by the Votorantim Group. The outlook is stable because the outlook on the Brazilian government's B2 foreign currency bond rating is stable and because Moody's expects that the Votorantim group will maintain strong debt protection measures for its category even after considering likely acquisitions in the group's core businesses of cement, metals and paper and pulp. Headquartered in Sao Paulo, Brazil, the Votorantim group is one of the largest private industrial conglomerates in Latin America, with large-scale production in cement, pulp and paper, and metals and mining industries. * Fitch Assigns 'B+' Rating to Brazil's $1.5B Issue --------------------------------------------------- Fitch Ratings, the international rating agency, assigned Tuesday a 'B+' rating to Brazil's US$1.5 billion bond issue maturing in 2034. The Rating Outlook is Stable. Proceeds from the bonds will be used to help finance debt amortizations and the budget deficit. Brazil's sovereign ratings balance improving economic performance and the government's commitment to appropriate fiscal policy settings with comparatively high government indebtedness and external financing needs. Inflation has declined from 17.2% in May (year-on-year) to an estimated 10% at year-end, allowing monetary authorities to aggressively reduce the policy Selic rate to 16.5% from its peak of 26.5% in the first half of 2003. Further rate cuts are still likely, given market inflation expectations for this year of 6%, which should continue to underpin a rebound in economic activity. The current account of the balance of payments, which generated a surplus in 2003 for the first time in ten years, is likely to fall back into a small deficit this year because of an expected rebound in domestic demand. This, combined with external amortizations of about US$36.9 billion, would result in a high external financing need of about 50% of current external receipts, though down from 111% in 1999. The government's commitment to a 4.25% of GDP primary budget surplus this year is consistent with Fitch's estimate of the minimum required over the medium term for a virtuous cycle of lower real interest rates, higher GDP growth and a firm exchange rate. General government debt, which stood at just under 80% of GDP at year-end, compares unfavorably with other speculative grade sovereigns. Second-stage reforms in revenue earmarking, central bank autonomy, social security, taxation, privatization and regulation would be important for sovereign credit improvements. CONTACT: Morgan C. Harting, +1-212-908-0820, New York David Riley +44 (0)20 7417 6338, London MEDIA RELATIONS: Matt Burkhard +1-212-908-0540, New York * S&P Rates Brazil's $1.5B Bond 'B+'; Affirms Sovereign Ratings --------------------------------------------------------------- Standard & Poor's Ratings Services said Tuesday that it assigned its 'B+' rating to the Federative Republic of Brazil's US$1.5 billion 8.25% 30-year global bond due 2034. Standard & Poor's also affirmed its 'B+' long-term and 'B' short-term foreign currency sovereign credit ratings and positive outlook, as well as its 'BB' long-term and 'B' short-term local currency sovereign credit ratings and stable outlook on Brazil. According to Standard & Poor's Credit Analyst Helena Hessel, fundamental factors supporting the ratings include a consistent and prudent macroeconomic framework, which encompasses inflation and fiscal consolidation strategies and a floating exchange rate. "The recent improvement in the debt management strategy, which strengthened the profile of the public debt, is also crucial," said Mrs. Hessel. "However, the large public debt burden (net public debt of 65% of GDP at end-2003) still continues to be vulnerable to exchange- and interest-rate fluctuations, and its magnitude limits the room for countercyclical fiscal policies," she added. The rating is constrained by the significant, albeit declining, external vulnerability of the Brazilian economy. Gross external financing needs are projected at 165% of reserves in 2004-2005, still well above the 'B' median's 125%. External debt, net of reserves and other liquid assets, is projected at 195% of current account receipts for 2004-2005. "While at a historically low level for Brazil, this is still well above the 'B' median's 100%," Ms. Hessel explained. "The rating remains constrained by structural economic weaknesses that the ongoing reform agenda could mitigate, but only over the medium term and only if efficiently implemented," she concluded. ANALYST: Helena Hessel, New York (1) 212-438-7349 Jane Eddy, New York (1) 212-438-7996 Regina Nunes, Sao Paulo (55) 11-5501-8937 ========= C H I L E ========= COEUR D'ALENE: Closes $180M Convertible Notes Offering ------------------------------------------------------ Coeur d'Alene Mines Corporation (NYSE: CDE) announced Tuesday that it has completed its previously announced offering of $180 million aggregate principal amount of 1.25% Convertible Senior Notes due 2024, which includes $20 million principal amount issued upon the exercise in full by the underwriters of their over- allotment option. Coeur intends to use the proceeds of the Notes for general corporate purposes, which may include the development of its Kensington gold project and its San Bartolome silver project, each of which are pending the completion of updated feasibility studies and final construction decisions. The offering was managed by Deutsche Bank Securities. Coeur conducted the offering pursuant to its shelf registration statement. A copy of the prospectus and the accompanying prospectus supplement related to the offering can be obtained from Deutsche Bank Securities Inc., 60 Wall Street, New York, New York 10005. Coeur d'Alene Mines Corporation is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The Company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile and Bolivia. CONTACT: Tony Ebersole, Director of Investor Relations 800-523-1535 =============== C O L O M B I A =============== CENTRAGAS: S&P Affirms Ratings; Outlook Stable ---------------------------------------------- Standard & Poor's Rating Services said Tuesday that it affirmed its 'BB' foreign currency rating on the US$172 million 10.65% senior secured notes due 2010 issued by Centragas-Transportadora de Gas de la Region Central de Enron Development and Cia. S.C.A. (Centragas). The outlook remains stable. The rating on Centragas reflects the risk of a one-source revenue stream, a noninvestment grade offtaker, liquidity risk from the bondholders' put option, and no recourse to either the sponsors or offtaker. However, the pipeline's strategic position in Colombia, adequate tariff and bankruptcy remote structure, and healthy operation and debt service coverage records strengthen Centragas' credit profile and partially offset the risks. The stable outlook on Centragas reflects the outlook on the Republic of Colombia. "The favorable operating record and predictable cash flow limit the potential for downward movement in the rating," said Standard & Poor's credit analyst David Gonzalez. "However, a decline in the sovereign rating would lead to a rating downgrade on Centragas." Centragas operates a pipeline about 578 kilometers long and runs from Ballena to Barrancabermeja, Colombia, and is an Enron Development Corp. special-purpose entity that built, owns, operates, and will eventually transfer a natural gas pipeline to Ecogas. ANALYST: David Gonzalez, Mexico City (52) 55-5279-2062 * S&P Assigns 'BB' Rating to Colombia's $500M, 20-Year Bond ----------------------------------------------------------- Standard & Poor's Ratings Services said Tuesday that it assigned its 'BB' rating to the Republic of Colombia's planned US$500 million 8.125% 20-year global bond due 2024. Standard & Poor's also said that it affirmed its 'BB' long-term and 'B' short-term foreign, and its 'BBB' long-term and 'A-3' short-term local, currency sovereign credit ratings on Colombia. The outlook on the ratings remains stable. According to Standard & Poor's Credit Analyst Richard Francis, the rating reflects the prospects of higher economic growth and continued fiscal consolidation after the December 2003 passage of additional tax measures that, in combination with further expenditure cuts, should help the government come close to meeting its 2.5% overall public sector deficit target in 2004. "The country's economic growth prospects are also improving, with economic growth now projected to rise to nearly 3.8% in 2004 after growing by an estimated 3.5% in 2003," said Mr. Francis. "The higher growth reflects a sharp increase in investment and domestic confidence due to President Alvaro Uribe's successful strategy of improving national security while maintaining macroeconomic stability. The recently announced bilateral free- trade agreement with the U.S. could also underpin growth prospects in the medium term by increasing foreign direct investment and boosting nontraditional exports," he added. However, the government's underlying fiscal position remains highly inflexible due to large, legally mandated transfers to local governments and public pension systems and to the interest on the government's debt. "Further reform in the areas of taxes, transfers, and pensions will therefore be needed over the next three years in order to maintain fiscal discipline," noted Mr. Francis. "If there is significant fiscal slippage or a sharp deterioration in the nation's security, there could be renewed downward pressure on the government's creditworthiness. If, on the other hand, fiscal prospects improve further and the debt and interest burdens decline, the ratings could improve," he concluded. ANALYSTS: Richard Francis, New York (1)-212-438-7348 John Chambers, CFA, New York (1) 212-438-7344 =================================== D O M I N I C A N R E P U B L I C =================================== TRICOM: Announces Director Resignations --------------------------------------- Tricom, S.A. (NYSE:TDR) announced Tuesday that its Board of Directors has received the resignations of Richard Haning, Theodore Schaffner, Ralph Smith and Kevin Wiley, effective as of December 31, 2003. These directors were initially nominated for the Board by Motorola, Inc. The resignations were driven by the increased time required by each of the four individuals to meet other business and personal commitments and interests. "On behalf of the entire board, I want to extend our appreciation to Richard, Ted, Ralph and Kevin for their contributions and dedication in the service of Tricom," said Carl Carlson, Chief Executive Officer and acting Chairman. Tricom's Board of Directors currently consists of seven members, including two independent directors. The Company does not anticipate any disruptions of its Board's activities and deliberations as a result of these resignations. A search has begun to find appropriate candidates to replace the directors who have resigned. About TRICOM Tricom, S.A. is a full service communications services provider in the Dominican Republic. It offers local, long distance, mobile, cable television and broadband data transmission and Internet services. Through Tricom USA, it is one of the few Latin American based long distance carriers that is licensed by the U.S. Federal Communications Commission to own and operate switching facilities in the United States. Through its subsidiary, TCN Dominicana, S.A., it is the largest cable television operator in the Dominican Republic based on its number of subscribers and homes passed. It also offers digital mobile integrated services including two-way radio and paging services in Panama using iDEN(R) technology. CONTACT: Tricom Miguel Guerrero, Investor Relations Tel: +1-809-476-4044 / 4012 Email: investor.relations@tricom.net Web site: http://www.tricom.net/ http://www.tdr-investor.com/ TRICOM: Announces New Financing Agreement ----------------------------------------- Tricom, S.A. (NYSE:TDR) announced Tuesday that it has entered into an agreement with a group of creditors representing the ad hoc committee of the holders of the Company's 11-3/8% Senior Notes due 2004, led by The International Bank of Miami N.A., for a $15 million secured bridge financing. The financing will provide the Company with sufficient liquidity to meet its short- term funding requirements while it pursues a financial restructuring plan. "Our creditors, particularly our principal bondholders, have been very supportive of the direction the Company is taking, and this financing demonstrates their fundamental commitment to Tricom and our business pursuits. This funding will provide the Company with the financial flexibility it needs to meet its short-term working capital requirements, and allows us to go forward in the near term to implement a financial restructuring plan, expected to strengthen the Company's capital base and increase long-term stakeholder value," said Carl Carlson, Chief Executive Officer. The financing agreement is structured as a $10 million one-year term loan secured by various Company assets, including its Latin American and U.S.-based assets, with proceeds available upon execution of definitive agreements and certain closing conditions. The agreement also provides for an additional $5 million in financing available upon the consummation of the restructuring of the Company's debt. Subject to the final determination of the loan participation structure and the approval of the ad hoc committee of the holders of the 11-3/8% Senior Notes, the Company's Dominican bank lenders will be permitted to participate in the financing arrangement. The International Bank of Miami N.A. will act as security agent for the transaction. The Company further announced that the previously disclosed $10 million secured credit facility commitment from a group of existing creditors, led by Mizuho International, PLC, has expired. ============= J A M A I C A ============= JPSCO: Councilor Seeks Employee Shake-up ---------------------------------------- Hubert Baker, a councilor of the People's National Party (PNP), is recommending a major employee shake-up at Jamaica Public Service Company's (JPSCo) commercial office because of the workers' poor performance. The Jamaica Gleaner relates that Councilor Baker of the Siloah division made his recommendation at a monthly meeting of the St. Elizabeth Parish Council in Black River on Thursday, January 8. "It is not a matter that we want to come here every month to speak on the subject of the lack of street lights in our division, however, we are forced to do it. The only area in my division that had some streetlights repaired was Siloah. Areas such as Thronton, Appleton, Springs, Windsor, Upper and Lower Aberdeen and Williamsfield were still in darkness," Baker said. He went on to say, "The case at the Jamaica Public Service Company's operations in St. Elizabeth is that the employees there are getting paid for doing nothing, and I am suggesting that the powers that be carry out a major shake-up at the company's commercial office in the parish." Michelle Bowes-Smith, JPSCo customer service manager in charge of St. Elizabeth, admitted that the Company is aware of the situation regarding the need to repair the streetlights that are malfunctioning. But according to her, all cannot be done at the same time. =========== M E X I C O =========== GRUPO MEXICO: Awaits Exploration Results ---------------------------------------- Mexican copper producer Grupo Mexico considers establishing itself in Chile, reports local newspaper Estrategia. Mr. Juan Rebolledo, the Company's vice chairman for international affairs said that the decision will depend on the results of their exploration activities in the country. Through its Peruvian subsidiary Southern Peru Copper Corporation (SPCC), the Grupo Mexico bought for concessions in Chile for the Catanave, Esperanza, El Salado and Sierra Aspera deposits. The deal cost the Company some US$3.7 million to explore copper, gold and silver in the said deposits. *********** 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. 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 * * *