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/raid1/www/Hosts/bankrupt/TCRLA_Public/040121.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 Wednesday, January 21, 2004, Vol. 5, Issue 14 Headlines A R G E N T I N A ALDO MALASPINO: Court OK's Reorganization Petition CAPEX: Confirms D(arg) Rating on $120 Million of Debentures CIE: Argentine Standard & Poor's Assigns Bonds Default Ratings COLORIN INDUSTRIA: Moody's Rates $47M of Bonds `D' CORREO ARGENTINO: Sideco Struggles To Avert Bankruptcy DIRECTV LA: Secures 3rd Exclusive Period Extension DISCO: Negotiating Parties May Finalize Deal Tuesday MARGASDA: Initiates Bankruptcy on Court Orders MV CARGAS INTEGRALES: Reorganization Process Now Official NOVAPACKING: Court Assigns Receiver to Oversee Reorganization REPSOL YPF: S&P Affirms Unit's `BB' Foreign Currency Rating TRANSENER: $525M of Bonds Rated `raD' by Argentine S&P B R A Z I L PARMALAT BRAZIL: Japanese Bank Obtains Injunction Against Sale TELEMAR: Reports Four Million Wireless Subscribers C H I L E PARMALAT CHILE: Misses Partial Debt Payment Deadline J A M A I C A C&WJ: Struggles Continue, More Office Closures Announced M E X I C O HYLSAMEX: To Become An Independent Public Company TV AZTECA: Board Rejects US$40M Offer for Rights to Channel 40 TV AZTECA: S&P Affirms `B+' Ratings, Revises Outlook to Negative AZTECA AMERICA: Adds Dallas, Corpus Christi Afilliates N I C A R A G U A ENITEL: America Movil Wins Government's 49% Stake P A R A G U A Y COPACO: Private Sector Mobile Operators Seek Debt Settlement T R I N I D A D & T O B A G O BWIA: Share Trading Suspension Part of Wider Reorganization - - - - - - - - - - ================= A R G E N T I N A ================= ALDO MALASPINO: Court OK's Reorganization Petition -------------------------------------------------- Court No. 1 of the Civil and Commercial Tribunal of Puerto Madryn in the Argentine province of Chubut approved a "Concurso Preventivo" motion filed by local company Aldo Malaspina e hijos S.R.L., according to local news portal Infobae. The Company will undergo reorganization with Mr. Jose Gonzalez San Jose as receiver. Creditors must file their claims before March 1 this year. The receiver will examine and authenticate claims to determine the nature and amount of the Company's debts. The receiver will prepare the individual reports, which are due at the court on April 16, after verifications are closed. After the individual reports are processed at court, the receiver will consolidate them into a single report, called the general report, which is to be submitted on May 31. The informative assembly, which is one of the last parts of a reorganization process, will be held on September 2 this year. CONTACT: Aldo Malaspina e Hijos S.R.L. Sarmiento 462 Puerto Madryn, Chubut Jose Gonzalez San Jose Julio A roca 775 Puerto Madryn, Chubut CAPEX: Confirms D(arg) Rating on $120 Million of Debentures ----------------------------------------------------------- Fitch Argentina Calificadora de Riesgo S.A., the Argentine office of credit rating agency Fitch Ratings, confirmed its national scale D(arg) rating assigned to energy company Capex. The rating affects Capex's first series of debentures issued for US$80 million and the third series of debentures issued for US$40 million. Capex, which produces gas and generates electric power at the well head in Neuquen province, is continuing the process of restructuring US$278 million in debt made up of series I and III debentures guaranteed for US$86 million, a syndicated loan of US$125 million and a US$48 million secured trade facility. CONTACT: Capex SA 5/F DepartmentC 948/950 Av Cordoba Buenos Aires Argentina Phone: +54 11 4322 4884 Home Page: http://www.capex.com.ar Contact: Enrique Gotz, Chairman Dr. Alejandro Enrique Gotz, Vice Chairman CIE: Argentine Standard & Poor's Assigns Bonds Default Ratings -------------------------------------------------------------- Standard & Poor's International Ratings, Ltd. Sucursal Argentina rates corporate bonds issued by Argentine company Compania de Inversiones de Energia S.A. `raD', relates the Comision Nacional de Valores. The rating was based on the Company's finances as of the end of September last year. The affected bonds, totaling some US$220 million, were described as "obligaciones negociables autorizadas por AGE de fecha 13.12.96". The bonds, which were classified under "Simple Issue", matured in April 2003. S&P said that an obligation is rated `raD' when it is payment default, or the obligor has filed for bankruptcy. The rating, issued last Thursday, is used 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 such payments will be made during the said grace period. COLORIN INDUSTRIA: Moody's Rates $47M of Bonds `D' -------------------------------------------------- Some US$47 million worth of corporate bonds issued by Colorin Industria de Materiales Sintet. received a `D' rating from Moody's Latin America Calificadora de Riesgo S.A.. The rating, determined from the Company's finances as of September 30 last year, is assigned to bonds that are in payment default. According to the country's securities regulator, the Comision Nacional de Valores, the rating applies to bonds called "Obligaciones Negociables". These will mature on March 31 this year. The bonds were classified under "Simple Issue". CORREO ARGENTINO: Sideco Struggles To Avert Bankruptcy ------------------------------------------------------ Argentine holding company Sideco Americana managed to delay the liquidation of its postal unit Correo Argentino and keeps struggling to avoid its bankruptcy. The National Commercial Court of Appeal has accepted a recourse filed by Correo Argentino and temporarily stopped the bankruptcy order issued by a first- instance judge on December 16, 2003, a month after Argentina's government rescinded Correo Argentino's contract for postal service based on Correo Argentino's noncompliance with the terms of the concession, poor service and heavy debt problems. Correo Argentino had been failing to pay the government the annual fee contemplated in the contract since 1999, which led to a debt of US$103 million. Correo Argentino appealed the bankruptcy ruling saying that Judge Eduardo Favier Dubois had refused to give it the benefit of a cramdown proceeding, through which its owners or a third party could take over the Company if they managed to reach a debt restructuring deal with at least two third of creditors. The recent decision gives Correo Argentino a chance to restart negotiations with its creditors. Correo Argentino's creditors number around 900, but the most important of them is the Argentine State. Correo Argentino had made a debt-restructuring offer that involved a 70% nominal haircut, which the government turned down. In a letter addressed to the Buenos Aires stock exchange, Sideco Americana said it was taking the necessary actions to regain powers of administration it had lost when the bankruptcy was declared. DIRECTV LA: Secures 3rd Exclusive Period Extension -------------------------------------------------- DirecTV Latin America LLC, the Official Committee of Unsecured Creditors and Hughes Electronics Corporation obtained an extension from the U.S. Bankruptcy Court for the District of Delaware of the Exclusive Plan Proposal Period to and including February 28, 2004, and a concomitant extension of the Exclusive Solicitation Period to and including April 29, 2004. (DirecTV Latin America Bankruptcy News, Issue No. 18; Bankruptcy Creditors' Service, Inc., 215/945- 7000) DISCO: Negotiating Parties May Finalize Deal Tuesday ---------------------------------------------------- Executives of Dutch retailer Ahold NV are scheduled to meet with representatives of French retailer Casino SA and Argentine businessman Francisco de Narvaez Tuesday to discuss the sale of Ahold's ailing Argentine supermarket chain Disco SA. Argentine daily Clarin suggests that the negotiating parties could close a deal during the said meeting if Ahold agrees to retain certain contingent liabilities. Casino SA and De Narvaez, who are negotiating to jointly buy Disco, have asked that Ahold assume continued responsibility for financial risks associated with a lawsuit by depositors in a now bankrupt Uruguayan bank owned by Ahold's former joint-venture partner in Disco, the Velox Group. Additionally, the bidders want the Dutch company to take on a claim by the Argentine tax authorities for some ARS300 million ($1=ARS2.89) in unpaid taxes that the agency claims Disco should have withheld from subscribers to a 1998 bond issue. For their part, the bidders have substantially raised their bid price, to EUR350 million ($440 million), well above the US$280 million that De Narvaez had reportedly initially offered and higher than the US$350 million that Chilean retailer Cencosud was thought to be willing to pay. Cencosud SA abandoned an exclusivity deal it had earlier struck with Ahold. CONTACT: DISCO S.A. Larrea 847, Piso 1 1117 Buenos Aires, Argentina Phone: +54-11-4964-8000 Fax: +54-11-4964-8076 Home Page: http://www.disco.com.ar MARGASDA: Initiates Bankruptcy on Court Orders ---------------------------------------------- Argentine company Margasda S.H. entered bankruptcy on orders from Court No. 5 of the Civil and Commercial Tribunal of San Nicolas. The Company's assets will be liquidated at the end of the bankruptcy process to reimburse its creditors. Creditors are required to file their claims before April 5. The Company's receiver, Mr. Oscar Manuel Azara, who will verify creditors' claims, will prepare the individual reports, which are due at the court on May 19. The general report, prepared after the individual reports are processed at court, is due on July 1 this year. CONTACT: Margasda S.H. Belgrano y Rafael Obligado Perez Millan San Nicolas Oscar Manuel Azara Ave Savio 409 San Nicolas MV CARGAS INTEGRALES: Reorganization Process Now Official --------------------------------------------------------- M.V. Cargas Integrales S.A., which is based in San Isidro, will undergo reorganization after Court No. 4 of the province's Civil and Commercial Tribunal approved its motion for "Concurso Preventivo". Working with Clerk No. 8, the court had assigned local accountant Mr. Manuel Gonzalez as the Company's receiver, relates Infobae. The credit verification process ends on March 1 this year. Creditors must present their claims to the Company's receiver for verification before the said date. The individual reports, which contain the results of the verification process, must be submitted to the court on April 14, followed by the general report on May 27. The general report is a consolidation of the individual reports, after these are processed at court. The court ordered that the informative assembly be held on December 6 this year. The meeting is one of the last parts of the reorganization proceedings. CONTACT: M.V. Cargas Intergrales S.A. Crucero Gral Belgrano 2135 Pilar Manuel Gonzalez Ituzaingo 370 San Isidro NOVAPACKING: Court Assigns Receiver to Oversee Reorganization ------------------------------------------------------------- Court No. 12 of the Civil and Commercial Tribunal of San Isidro in Argentina assigned local accountant Patricia Monica Bure as receiver for the reorganization of Novapacking S.A. reports Argentine news portal Infobae. The court has recently approved the Company's motion for "Concurso Preventivo". The deadline for credit verification is March 24 this year. The receiver, who will examine and authenticate claims, will prepare the individual reports after verifications are closed and present these to the court on May 11. After the individual reports are processed at court, the receiver will prepare the general report, which is due at the court on June 25. The reorganization process will continue with an informative assembly on December 13. CONTACT: Patricia Monia Bure Ave Maipu 1034 Florida, San Isidro REPSOL YPF: S&P Affirms Unit's `BB' Foreign Currency Rating ----------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on Spain-based integrated oil and gas company Repsol-YPF S.A. (Repsol) to 'BBB+' from 'BBB'. In addition, the 'A-2' short-term corporate credit rating on Repsol was affirmed. The outlook is stable. At the same time, Standard & Poor's affirmed its 'BB' foreign currency and 'BB+' local currency ratings on YPF S.A., Repsol's 99%-owned Argentine subsidiary. The outlook on the foreign currency rating is stable; the outlook on the local currency rating is positive. "The ratings actions taken on Repsol reflect the company's continuing deleveraging and improvement of credit measures, further clarification and tightening of its financial policies, strong operating and financial performance, and the expectation of continued very strong liquidity," said Standard & Poor's credit analyst Emmanuel Dubois-Pelerin. The ratings on Repsol continue to reflect the company's particularly solid positions in Spain's downstream oil and gas markets, strong operations in Latin America's volatile environment, prospects for decreasing exposure to Argentina, and very prudent debt and liquidity management, but also its still- high exposure to volatile environments across the Latin American mainland. The affirmation of the ratings on YPF reflects the continued uncertainty over the economic and institutional environment in the Republic of Argentina (SD/--/SD). The current ratings already take into account YPF's strong operating and financial performance, despite significant dividend payments during the past two years, as well as considerable implicit parent support. Standard & Poor's expects that Repsol will continue to adequately cope with volatile monetary, economic, and fiscal conditions prevalent in Argentina while preserving a degree of access to YPF's cash flow, as in 2002 and 2003, and while maintaining current prudent financial and liquidity policies. No large acquisitions or share repurchases are expected. Standard & Poor's also expects that Repsol has sufficient economic incentives to support YPF, thereby mitigating direct sovereign risk--particularly an increase in current transfer and convertibility restrictions. Standard & Poor's expects YPF to continue strengthening its solid business position and maintaining sound cash flow protection measures, even in case of additional intervention by the Argentine government--for example, in the form of new or additional taxes. ANALYST: Emmanuel Dubois-Pelerin Paris Phone: (33) 1-4420-6673 Email: emmanuel_dubois-pelerin@standardandpoors.com Pablo Lutereau Buenos Aires Phone: (54) 114-891-2125 Email: pablo_lutereau@standardandpoors.com S&P: CorporateFinanceEurope@standardandpoors.com TRANSENER: $525M of Bonds Rated `raD' by Argentine S&P ------------------------------------------------------ Transener S.A.'s US$525 million of corporate bonds received `raD' ratings from Standard & Poor's International Ratings, Ltd. Sucursal Argentina. The ratings agency said that an obligation is rated `raD' when it is payment default or the obligor has filed for bankruptcy. The rating may also be used when interest or principal payments are not made on the due date, even if the applicable grace period has not expired, unless Standard & Poor's believes that such payments will be made during such grace period. The Company's finances as of September 30 last year were used as basis for the given rating. The Comision Nacional de Valores, Argentina's securities regulator, described the affected bonds as "Programa Global de Obligaciones Negociables simples no convertibles en acciones, aprobado por Asamblea Gral. de Accionistas de fecha Julio de 2001." These matured in March last year. =========== B R A Z I L =========== PARMALAT BRAZIL: Japanese Bank Obtains Injunction Against Sale -------------------------------------------------------------- A Sao Paulo court granted Japanese bank Sumitomo Mitsui an injunction blocking Parmalat Brasil Industria de Alimentos from selling any businesses to help pay for the huge debts of its crisis-ridden Italian parent company Parmalat. Claudio Grimaldi, general manager of the legal department of Banco Sumitomo Mitsui Brasileiro, told Reuters the bank was a creditor of Parmalat Brasil and wanted to ensure it remained in operation. "The idea is to prevent the sale of the assets of the company and the cash going abroad," he said. "We do not intend to paralyze the company. We want it to remain active." Parmalat missed a US$2.1 million payment to Sumitomo due last Monday, said Mr. Grimaldi, adding that the company is supposed to pay Sumitomo another US$7.9 million next Monday. Parmalat Brasil, through its public relations company, said that it had not been notified of the injunction. TELEMAR: Reports Four Million Wireless Subscribers -------------------------------------------------- Telemar (NYSE:TNE), a leading telecom provider in Brazil, announced Monday that its wireless (GSM) arm Oi reached four million subscribers in its prepaid and post-paid plans, and an estimated 18.4% share in its home market (Region 1). From October 01, 2003 through today Oi conquered 1,200,000 subscribers. CONTACT: TNE - INVESTOR RELATIONS Roberto Terziani Email: terziani@telemar.com.br Tel: 55 21 3131 1210 Carlos Lacerda Email: carlosl@telemar.com.br Tel: 55 21 3131 1314 GLOBAL CONSULTING Kevin Kirkeby Email: kkirkeby@hfgcg.com Tel: 1 646.284.9416 Fax: 55 21 3131 1155 ========= C H I L E ========= PARMALAT CHILE: Misses Partial Debt Payment Deadline ---------------------------------------------------- Parmalat Finanziaria SpA's Chilean unit missed its self-imposed deadline to make a partial payment of the debt it owed to milk suppliers, reports Bloomberg News. On January 9, Parmalat Chile pledged to pay on Monday 20% of the CLP1.2 billion (US$2.1 million) it owed to 200 dairies for 10 million liters of milk purchased in December, and the rest by the end of January. But the Company failed to make the payment on the said deadline, Carlos Arancibia, manager of the Chilean National Milk Producers Federation, said, adding that the Company said it wasn't sure when it would pay. The missed payment comes amid reports that dairy farmers are considering buying Parmalat's two Chilean plants to prevent a collapse of a company that buys 6.5% of the milk produced in Chile. "We want to do whatever we can to keep the plants open," Arancibia said. "We don't want to depend on Parmalat or any other international company that can take decisions that hurt us because of something going on half way around the world." In a meeting with agriculture ministry officials, milk producers proposed that state-owned Banco del Estado de Chile provide working capital loans to Parmalat suppliers that are short of cash, said Arancibia. Without credit, many Parmalat dairies will have to shut down because of a lack of cash to pay their own suppliers, said Arancibia. ============= J A M A I C A ============= C&WJ: Struggles Continue, More Office Closures Announced -------------------------------------------------------- Cable & Wireless Jamaica President Gary Barrow indicated that the Company is likely to cut jobs by the end of next month, relates RadioJamaica. In a statement released Friday, Mr. Barrow noted that the Company was operating in a significantly changed environment, which meant that it would have to change its own business approach. With the prevalence of private bills payment agencies, Barrow said that Cable & Wireless no longer has to operate so many bills collection centers of its own. Moreover, all customer queries can now be raised on the company's toll free line dedicated to that purpose, he added. As a result, Cable & Wireless is now holding discussions with these agencies about setting up full service center, which would provide services traditionally provided by the phone company. =========== M E X I C O =========== HYLSAMEX: To Become An Independent Public Company ------------------------------------------------- Hylsamex S.A de C.V. announced Monday that its majority stockholder, Alfa, S.A. de C.V., which holds 89.7% of the shares outstanding in Hylsamex, called Monday for an extraordinary stockholders' meeting, to be held on February 4th, 2004, to vote on a proposal to spin-off its interest in Hylsamex. Hylsamex also has called an extraordinary shareholders' meeting to take place on February 4, 2004. The purpose of the meeting is to vote on a proposal to modify a portion of the Company's by- laws to facilitate the eventual independent status of Hylsamex. Subject to approval by ALFA's shareholders, ALFA will distribute to its shareholders its equity interest in Hylsamex. This will take place through the issuance of trust receipts known as "certificados de participaci�n ordinaria" ("CPOs"), which represent a direct claim on the common shares of Hylsamex. It is the intention of both companies to have the newly issued CPOs registered and listed in the Bolsa Mexicana de Valores. The spin-off process will be conducted in two stages. During the first quarter of 2004, Alfa expects to distribute CPOs representing 38.97% of Hylsamex's common stock to its shareholders. A second and final distribution is expected to occur at the beginning of 2005, when the remainder of CPOs representing 51% of the common equity of Hylsamex will be distributed. The CEO of Hylsamex, Alejandro M. Elizondo, noted that "Alfa's proposed initiative will benefit Hylsamex. In particular, it should facilitate a more accurate valuation of Hylsamex in the financial markets; this in turn should translate into better access to the debt and equity markets for the Company. Mr. Elizondo also added that "the initiative announced today represents a logical step in the evolution of Hylsamex as a public company. It is a process that started with the IPO in 1994, and the original aim of making Hylsamex a standalone public company. Then, as now, every effort is being made to increase profitability and generate value for shareholders." Mr. Elizondo stressed that the relationship with customers and suppliers will not change. It will remain one of mutual trust and collaboration. He added, "In this new chapter of Hylsamex, special effort will be devoted to preserving our status as preferred supplier for all of our customers". Mr. Elizondo concluded his remarks emphasizing the vital role played by the personnel of Hylsamex, "having their enthusiastic support and loyalty, assures that Hylsamex will continue to be a leading steel company". CONTACT: Rafael Rubio (52-81) 8865 -1303 (52-81) 8865 - 2828 TV AZTECA: Board Rejects US$40M Offer for Rights to Channel 40 -------------------------------------------------------------- TV Azteca, S.A. de C.V. (NYSE: TZA - News; BMV: TVAZTCA), one of the two largest producers of Spanish- language television programming in the world, announced Monday that its board of directors unanimously rejected an offer from Isaac Saba, a prominent Mexican businessman, to pay TV Azteca US$40 million in exchange for TV Azteca's rights to purchase 51% of the equity of Televisora del Valle de Mexico (TVM), the licensee of Channel 40 -- a UHF channel that covers Mexico City -- as well as to liquidate debts of CNI with TV Azteca. As previously informed, since 2000, there has been litigation between TV Azteca and CNI Channel 40, and between TV Azteca and Javier Moreno Valle, President of CNI, for breach of contract by Mr. Moreno Valle for failure to honor TV Azteca's equity option, complemented by CNI's failure to pay its debts to TV Azteca. At the end of 1998, TV Azteca formalized a 10-year strategic alliance with CNI Channel 40 and Mr. Moreno Valle, through which both companies would share the operating cash flow generated by Channel 40, in exchange for which TV Azteca would, among other things, provide programming to the channel and sell advertising time for several years. In addition, it was agreed that TV Azteca had the option to purchase the 51% equity stake, at a total enterprise value of US$100 million, with certain yearly increases. As part of the agreement, TV Azteca authorized payments of US$25 million to CNI Channel 40, which included US$15 million as an advance on its 50% share of the EBITDA expected to be generated over the first three years of operation and a US$10 million loan, at the signing of the contract. In December of 2002, TV Azteca received a favorable award from the International Court of Arbitration, declaring that the option agreement and the strategic alliance are valid and enforceable against Mr. Moreno Valle. Nevertheless Mr. Moreno Valle has refused to honor the award. As part of its efforts to settle, TV Azteca analyzed the proposal of Mr. Saba; however, TV Azteca considers that the opportunity cost of receiving the US$40 million is too high because it would imply abandoning the possibility of operating an upscale channel in Mexico City in the future. Thus, the company prefers to continue preserving its rights under the contracts signed by Channel 40. The company noted its previously announced six-year plan for uses of cash does not contemplate receiving the US$40 million, and the company ratifies its commitment to continue with the plan as has been disclosed. The cash plan entails distributions to shareholders of over US$500 million and TV Azteca debt reduction of approximately US$250 million by 2008. Company Profile 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 US Hispanic market, and Todito.com, an Internet portal for North American Spanish speakers. TV AZTECA: S&P Affirms `B+' Ratings, Revises Outlook to Negative ---------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on the ratings assigned to Mexico-based Spanish-language TV programming producer TV Azteca S.A. de C.V. to negative from stable. Concurrently, the ratings agency affirmed its ratings on TV Azteca, including its 'B+' long-term corporate credit rating. The rating action reflects the uncertainty created by recent developments questioning TV Azteca's securities laws disclosure involving its affiliate Unefon, a Mexican mobile telephony operator. "Although the ratings assigned to TV Azteca already consider the potential risk of loans, guarantees, or capital contributions to affiliates and related companies, Standard & Poor's is concerned about the potential erosion in TV Azteca's investor confidence and management credibility in light of the aforementioned events," said Standard & Poor's credit analyst Jose Coballasi. "This could diminish TV Azteca's access to the capital markets and bank financing, thus heightening the company's refinancing risk, particularly the 2005 maturing debt of its parent company, Azteca Holdings." ANALYST: Jose Coballasi Mexico City Phone: (52) 55-5279-2014 Email: jose_coballasi@standardandpoors.com Santiago Carniado Mexico City Phone: (52) 55-5279-2013 Email: santiago_carniado@standardandpoors.com AZTECA AMERICA: Adds Dallas, Corpus Christi Afilliates ------------------------------------------------------ TV Azteca, S.A. de C.V. announced Monday that Azteca America, the company's wholly owned broadcasting network focused on the U.S. Hispanic market, has increased its coverage to 73% of Hispanic households by adding two new affiliates in Dallas and Corpus Christi, Texas. The additions increase the network's coverage to 33 markets. With the addition of KODF-TV/Channel 26 in Dallas and KYDF- TV/Channel 64 in Corpus Christi, Azteca America continues its growth in key U.S. Hispanic markets. In addition, the Corpus Christi affiliate is on Channel 22 of the Grande Cable system. This brings the number of affiliates to six in Texas, which is second to California in number of affiliates. "Passing the 70% clearance mark is another milestone in our dynamic buildout," said Luis J. Echarte, president and CEO of Azteca America. "Thanks to our newest affiliate, we are now in 13 of the top 15 Hispanic markets." The two new affiliates are added to Azteca America's 31 existing markets, which include Los Angeles, New York, Miami, Houston, Chicago, San Antonio, San Francisco-Oakland-San Jose, Phoenix, Albuquerque, San Diego, Fresno-Visalia, Sacramento-Stockton- Modesto, Denver, Orlando, Austin, Tucson, Las Vegas, Monterey- Salinas, Bakersfield, West Palm Beach-Ft. Pierce, Salt Lake City, Santa Barbara, Palm Springs, Naples-Ft. Myers, Yakima-Pascoe- Richland, Wichita, Oklahoma City, Reno, Victoria, Charleston and Chattanooga. Further information can be found at the network's new corporate website: www.aztecaamerica.com/corporate. ================= N I C A R A G U A ================= ENITEL: America Movil Wins Government's 49% Stake ------------------------------------------------- Mexican telecoms company America Movil won the bidding for the Nicaraguan government's 49% stake in telecoms operator Enitel, reports Business News Americas. This, after the only other possible bidder, the Megatel consortium, which already owns 40% of Enitel and a five-year management contract, decided not to exercise its right to equal the offer made by America Movil. America Movil offered to buy the stake for US$49.6 million, which is US$100,000 over the minimum price set by the government. Megatel said it has other investment commitments in the electric power, water and telecoms sectors in other countries of the region, which also require investment decisions. "The Mecatel consortium welcomes America Movil as a new partner in the ownership of Enitel, and is certain that this will lead to synergy and benefits for the development of telecommunications in the country," Enitel said in a statement. =============== P A R A G U A Y =============== COPACO: Private Sector Mobile Operators Seek Debt Settlement ------------------------------------------------------------ Paraguay's private-sector mobile operators are urging state telecoms operator Copaco to settle its multi-million debts with them if telecoms regulator Conatel wants to move ahead with plans to implement a telecoms clearinghouse. Citing a local newspaper ABC Color report, Business News Americas says that Conatel is tendering a contract to implement the clearinghouse. Operators, however, said the current debts must be paid and clear ground rules for the new system must be laid down. In addition, the operators have demanded that they all agree to make payments on time, and that heavy fines be applied to companies that do not settle up within the deadlines. Copaco is facing enormous debts and has blamed the government for not paying its phone bills. Latest estimates suggest the government owes some US$15 million to Copaco in unpaid bills. ================================= T R I N I D A D & T O B A G O ================================= BWIA: Share Trading Suspension Part of Wider Reorganization ----------------------------------------------------------- Trinidad national airline BWIA had its share trading suspended by the Barbados Stock Exchange, the Trinidad Express reports. The suspension, which runs from January 19 until further notice, responds to a request by the Company, who made a similar request to the Trinidad and Tobago stock exchange. The bourse is yet to make its formal response to the airline's request. In the meantime, the airline also made requests to the Securities and Exchange Commissions of Trinidad and Barbados to have trading in shares suspended. The requests for the suspension came even as the airline's share price continued to climb on the markets. According to BWIA, the suspension is one phase of a wider restructuring exercise for the cash-strapped airline, and will facilitate any necessary shifts in the equity levels held by various shareholders while not impacting on the daily operations of the airline. Previously, Minister in the Ministry of Finance Kenneth Valley said that Government, which controls 34% of the airline's shares, would be interested in buying shares held by the minority stakeholders of BWIA. "This suspension of the share trading is a temporary but positive step in the re-structuring process and will in no way affect daily operations," the airline said in an statement. Airline industry experts have suggested that the move to suspend trading may be to prevent speculation from driving the share price further up as moves are made to transfer control of the airline back to Government. *********** 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 * * *