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/raid1/www/Hosts/bankrupt/TCRLA_Public/040225.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, February 25, 2004, Vol. 5, Issue 39 Headlines A R G E N T I N A ALBES: Receiver Closes Credit Review for Reorganization BANCO RIO: Sees Improvement in Financial Status in 2003 CARTA LOCAL GUALEGUAYCHU: Court Declares Company Bankrupt COB: Receiver To File General Report at Court CONFORT ESTILO: General Report on Reorganization Due at Court DAMARA: Receiver Closes Credit Verification Process DISTRIBUIDORA EGO: Court Declares Company Bankrupt EMPESA: Credit Verifications End Today EXPRESO GASPARI: Individual Reports Due at Court Today GEROM: Receiver Files Individual Bankruptcy Reports METROGAS: Rate Hike Won't Affect Financial Situation MULTICANAL: Bingham McCutchen Lawyer Clarifies Statements OBRAS Y MATERIALES: Credit Review Deadline Expires Today PERFUMERIAS SAN REMO: Court Approves Reorganization Petition PINTURERIA PROFESIONAL: Individual Reports Due at Court Today PROFUNDO: Enters Bankruptcy on Court Orders REFRIGERACION TECNOLOGICA: General Report Filing Deadline Today TRANSMED: Today is Last Day For Claims Check B E R M U D A GLOBAL CROSSING: Wins $17M Managed Voice Contract From UK Firm B R A Z I L CERJ: Commences Debt Restructuring COPEL: Parana State Head Goes To Paris For Arbitration Hearing EMBRATEL: Embraces Saba Solution to Improve Employees, Services PARMALAT BRASIL: Sumitomo Responds To Warning * WB Approves $505M To Support Brazil's Economic Growth Program C H I L E AES GENER: Extends Expiry of Tender Offers AES GENER: Moody's Puts Rating Under Review for Possible Upgrade M E X I C O CONE MILLS: Judge Defers Sale To Wilbur Ross HYLSAMEX: Alfa To Hand Over Stock To Shareholders IUSACELL: Selects LightSurf MMSC and PictureMail Services V E N E Z U E L A PDVSA: Makes $154M Debt Payment - - - - - - - - ================= A R G E N T I N A ================= ALBES: Receiver Closes Credit Review for Reorganization ------------------------------------------------------- Mr. Nestor Rodolfo Del Potro, receiver for Albes S.A., closes the credit verification process for the Company's bankruptcy today. Verifications are done to determine the nature and amount of the Company's debts. On orders from Buenos Aires Court No. 10, the receiver will prepare the individual reports on the verification results. These reports must be filed at court on April 12, said the Troubled Company Reporter - Latin America in an earlier report. The general report, to be prepared after the individual reports are processed at court, must be filed on June 8. The Company's assets will be liquidated at the end of the bankruptcy process to repay creditors. CONTACT: Nestor Rodolfo Del Potro Ave Corrientes 1291 Buenos Aires BANCO RIO: Sees Improvement in Financial Status in 2003 ------------------------------------------------------- Banco Rio de la Plata, the Argentine subsidiary of Spanish financial group Grupo Santander (NYSE: STD), managed to trim down losses last year, Business News Americas indicates. In an earnings statement, Rio posted a ARS623-million (US$211mn) loss in 2003, a 44.3% improvement on the ARS1.12-billion loss it recorded in 2002. For the first time in eight consecutive quarters, it posted an operational profit in the fourth quarter of ARS23.5 million. The operational profit in the fourth quarter was due to an improvement in the bank's interest margin and more expenses covered by fee income. According to Rio, its net result last year was negatively impacted by ARS335 million in loan loss provisioning as well as other charges. Rio is one of Argentina's three largest private sector banks. CONTACT: BANCO RIO DE LA PLATA S.A. Bartolome Mitre 480 1036 Buenos Aires, Argentina Phone: +54-14-341-1081-1580 Fax: +54-14-341-1074-1084 Home Page: http://www.bancorio.com.ar Contacts: Ana Patricia B. S. de Sautuola y O'Shea, Chairman Jose L. E. Cristofani, Executive Vice Chairman and CEO Pablo Caride, Corporate Finance CARTA LOCAL GUALEGUAYCHU: Court Declares Company Bankrupt --------------------------------------------------------- Carta Local Gualeguaych£ S.R.L. enters bankruptcy on orders from Judge Dieuzeide of Buenos Aires Court No. 1. The bankruptcy order was issued in approval of a petition filed by one of the Company's creditors for nonpayment of debt. Working with Clerk No. 1, Dr. Fernandez Garello, the court assigned Mr. Ricardo Bataller as receiver. He will verify creditors' claims until April 15 this year. CONTACT: Carta Local Gualeguaych£ S.R.L. Tucuman 450 Buenos Aires Ricardo Bataller Rodriguez Pena 486 Buenos Aires COB: Receiver To File General Report at Court --------------------------------------------- Mr. Eduardo Daniel Florez, receiver for Argentine Compania de Omnibus la Bahiense S.R.L., is expected to file the general report on the Company's reorganization. The receiver prepared this report after the individual reports, which contain the verification results were processed at court. Local sources, however, did not reveal whether the court has set the date for the informative assembly. The meeting is one of the last processes in a reorganization. CONTACT: Compania de Omnibus la Bahiense S.R.L. Lavalle 348 Bahia Blanca Eduardo Daniel Florez Hopilito Yrigoyen 227 Bahia Blanca CONFORT ESTILO: General Report on Reorganization Due at Court ------------------------------------------------------------- The general report on the reorganization of Argentine company Confort Estilo S.R.L. is due today. The Company's receiver, Mr. Luis Guevara, prepared the report after the individual reports on the verification results were processed at court. The Troubled Company Reporter - Latin America said in an earlier report that the receiver examined and authenticated creditors' reports to determine the nature and amount of the Company's debts. Buenos Aires Court No. 1 ordered that the informative assembly be held on August 12 next year. CONTACT: Luis Guevara Ayacucho 242 Buenos Aires DAMARA: Receiver Closes Credit Verification Process --------------------------------------------------- Santos Luparelli, receiver for Damara S.A., closes the credit verification process today. Creditors' claims are reviewed and authenticated to ascertain the nature and amount of the Company's debts. Buenos Aires Court No. 8, under Judge Gonzalez, issued the bankruptcy order, the Troubled Company Reporter - Latin America said in an earlier report. Clerk No. 15, Dr. Lezaeta, assists the court on the case. CONTACT: Damara S.A. Ave Cordoba 1513 Buenos Aires Santos Luparelli 1st Floor, Office B Paraguay 2067 Buenos Aires DISTRIBUIDORA EGO: Court Declares Company Bankrupt -------------------------------------------------- Buenos Aires Court No. 24, under Judge Pallerini declared local company Ditribuidora Ego S.R.L. "Quibra", relates Estudio Elinitza Fernandez Lopez. The ruling is in favor of a petition filed by Faros Dan de De la Torre Hermanos S.H., to whom the Company failed to make debt payments. Creditors are required to present their claims to the Company's receiver, Hugo Borgert, before April 13. The receiver will examine and authenticate claims to determine the nature and amount of the Company's debts. He will also prepare the individual and general reports. Clerk No. 47, Dr. Medina, assists the court on the case. CONTACT: Distribuidora Ego S.R.L. Caldas 351 Buenos Aires Hugo Borgert Rodriguez Pena 736 Buenos Aires EMPESA: Credit Verifications End Today -------------------------------------- The credit verification process for the bankruptcy of Empesa S.A. ends today. The Company's receiver, Mr. Oscar Ricardo Garcia, will prepare the individual reports, which are to be filed at Buenos Aires Court No. 11 on April 7. An earlier report by the Troubled Company Reporter - Latin America indicated that the general report is due at the court on May 19. The receiver will prepare this report after the individual reports are processed at court. The Company's assets will be liquidated at the end of the bankruptcy process to repay creditors. CONTACT: Oscar Ricardo Garcia Lavalle 1206 Buenos Aires EXPRESO GASPARI: Individual Reports Due at Court Today ------------------------------------------------------ Court No. 4 of the Civil and Commercial Tribunal of La Plata in Argentina requires the receiver, Ms. Silvina Diva Sosa, for Expreso Gasari - Marinucci S.A. to file the individual reports on the Company's reorganization today. The receiver will prepare a general report after the individual reports, which contain the credit verification results, are processed at court. The general report is due for filing on April 8. The informative assembly will be held on October 5 next year, said the Troubled Company Reporter - Latin America in an earlier report. CONTACT: Expreso Gaspari - Marinucci S.A. Calle 37 No. 421 La Plata Silvina Diva Sosa Calle 14 No. 659 La Plata GEROM: Receiver Files Individual Bankruptcy Reports --------------------------------------------------- Today is the deadline for the filing of the individual reports on the bankruptcy of Gerom S.A., according to an earlier report by the Troubled Company Reporter - Latin America. These reports contain results of the credit verification process completed late last year. The Company's receiver, Mr. Carlos Eduardo Foresti, will prepare a general report after the individual reports are processed at court. Buenos Aires Court No. 11 ordered the receiver to file this report on April 7. The bankruptcy process will end with the liquidation of the Company's assets to pay off creditors. Payments will be gauged on the results of the verification process. CONTACT: Carlos Eduardo Foresti Avenida Callao 449 Buenos Aires MULTICANAL: Bingham McCutchen Lawyer Clarifies Statements --------------------------------------------------------- Oscar H. Urizar, Esq., at Bingham McCutchen LLP in Hartford, Connecticut, clarifies that while Argentinian cable company Multicanal's out-of-court restructuring deal, or APE, pending before a local court in Argentina might violate the right of creditors in the United States, he hasn't drawn that legal conclusion. It may be true that Multicanal's APE violates creditors' rights, but Mr. Urizar hasn't undertaken the factual and legal investigations and legal due diligence required to form that opinion. As previously reported in the Troubled Company Repoter -- Latin America, Argentinean Recovery Company LLC holds US$157 million, or 31%, of Multicanal's US$500-million debt. ARC is composed of US-based private equity funds, pension funds and individual bondholders. W.R. Huff is the group's financial advisor and is at the same time one of Multicanal's most important creditors. ARC is attempting to block Multicanal's restructuring on the terms the company's outlined. METROGAS: Rate Hike Won't Affect Financial Situation ---------------------------------------------------- Argentine natural gas distributor Metrogas said Monday that it doesn't expect its financial situation to change as a result of the government's decision earlier this month to raise gas and power rates for commercial users, relates Dow Jones. The increase "will only apply to the 'gas at the well' component of rates," Metrogas said Monday in a brief statement to the Buenos Aires stock exchange. "Consequently...Metrogas' distribution margin - that also forms a part of rates - and the financial situation of the company will not be seen as changed." On Feb. 13, officials said they were raising gas and electricity rates by 15%-25% for large-scale commercial users. Under the new system, which the government spelled out in a decree, the government will directly negotiate gas rates with producers so that commercial or industrial users will pay more for gas than residential users. The decree left open the possibility of rate hikes for residential consumers between now and 2006. It is understood that in the case of the increases for large-scale users, producers will pay a higher fee to transporters, transporter will pay more to distributors, and distributors can charge end users more. Metrogas offered no other details in its statement. However, it would appear that the Company's interpretation of the government's decree is that natural gas distributors will not be able to collect more under the new increases. Metrogas' client base is also largely residential, a factor that could keep the Company from benefiting from the rate hikes. CONTACT: METROGAS, S.A. Gregorio Araoz de Lamadrid 1360 Buenos Aires Argentina CPA C 1267 Phone: +54 11 4309 1010 Fax: +54 11 4309 1025 Home Page; http://www.metrogas.com.ar Contact: William Harvey Alvarez, President OBRAS Y MATERIALES: Credit Review Deadline Expires Today -------------------------------------------------------- Creditors of Buenos Aires-based Obras y Materiales S.A. must have their claims authenticated by the Company's creditor, Mr. Baldomero Gonzalez, today. The receiver will now prepare the individual reports on the verification results. Buenos Aires Court No. 18 handles the Company's case with assistance from Clerk No. 36, according to an earlier report by the Troubled Company Reporter - Latin America. CONTACT: Obras y Materiales S.A. Ave Nazca 432 Buenos Aires Baldomero Gonzalez Ave de Mayo 1260 Buenos Aires PERFUMERIAS SAN REMO: Court Approves Reorganization Petition ------------------------------------------------------------ Insolvency Judge Dieuzeide of Buenos Aires Court No. 1 approved a petition for reorganization filed by local company Perfumer¡as San Remo S.A.C.I.F.I., a report from Estudio Elinitza Ferbandez Lopez indicated. Clerk No. 1, Dr. Fernandez Garello, assists the court on the case. Creditors must present their claims to the Company's receiver, Mr. Ricardo Bataller, for verifications before March 11. The receiver is also required to prepare the individual and general reports on the case. The informative assembly will take place on November 24. CONTACT: Perfumer¡as San Remo S.A.C.I.F.I. Ave Independencia 1992 Buenos Aires Ricardo Bataller Rodriguez Pena 486 Buenos Aires PINTURERIA PROFESIONAL: Individual Reports Due at Court Today ------------------------------------------------------------- Raul Brener, receiver for Pintureria Profesional Marcos S.R.L., must file the individual reports on the Company's bankruptcy today. These reports contain the results of the credit verification process completed late last year. After these reports are processed at court, the receiver will prepare a general report to be submitted on April 23. The informative assembly will be on April 23. Buenos Aires Court No. 25, handles the Company's with assistance from Clerk No. 49, said the Troubled Company Reporter - Latin America in an earlier report. CONTACT: Raul Brener Lambare 1140 Buenos Aires PROFUNDO: Enters Bankruptcy on Court Orders ------------------------------------------- Profundo S.A., based in Buenos Aires, entered bankruptcy on orders from Insolvency Judge Ojea Quintana of the city's Court No. 12. The ruling comes in approval of the petition filed by the Company's creditor, Chandon S.A., for nonpayment of debt. Dr. Perea, Clerk No. 23, assists the court on the case, a report from Estudio Elinitza Fernandez Lopez revealed. The Company's receiver, Mr. Gustavo Scumparin, will authenticate creditors' claims until March 8. Verifications are done to study the nature and amount of the Company's debts. CONTACT: Profundo S.A. Baez 292 Buenos Aires Guztavo Scumparin Ave Cordoba 1412 Buenos Aires REFRIGERACION TECNOLOGICA: General Report Filing Deadline Today --------------------------------------------------------------- Mr. Natalio Kinsbruner, the receiver for Buenos Aires-based Refrigeracion Tecnologica S.A., must submit the general report on the Company's reorganization today. The receiver prepared the report after the individual reports were processed at court. The Troubled Company Reporter - Latin America earlier reported that the city's Court No. 26 approved the Company's motion for reorganization. Documents submitted to the court revealed that the Company stopped making debt payments since December 20 last year. The court orders the informative assembly to take place on August 17 next year. CONTACT: Refrigeracion Tecnologica S.A. Ave. Gaona 1295 Buenos Aires Natalio Kinsbruner Marcelo T. de Alvear 1671 Buenos Aires TRANSMED: Today is Last Day For Claims Check -------------------------------------------- Today is the last day for credit verifications in connection with the bankruptcy of Argentine company Transmed S.R.L., an earlier report by the Troubled Company Reporter - Latin America indicated. The Company's receiver, Mr. Raul Trejo, will prepare the individual reports on the verification results. Judge Garibotto of Buenos Aires Court No. 2 and Clerk No. 3 handle the Company's case, which will close with the liquidation of the Company's assets. CONTACT: Transmed S.R.L. Ave Suarez 2756 Buenos Aires Raul Trejo Montevideo 205 Buenos Aires ============= B E R M U D A ============= GLOBAL CROSSING: Wins $17M Managed Voice Contract From UK Firm -------------------------------------------------------------- - Adds fully managed telephony service for 15,500 IND users across 140 sites. - Supports more than 100,000 government users through OGCbuying.solutions' Managed Telecommunications Services framework contract. - Establishes pathway to fully converged IP services Global Crossing (NASDAQ: GLBC) has been awarded a $17 million contract to provide fully managed voice services to the UK Immigration and Nationality Directorate (IND) by OGCbuying.solutions, the government's procurement division. Managed telephony services will be rolled out to more than 15,500 users at 140 sites, many of which are at harbors and airports. The three-year outsourcing arrangement will provide a technology platform that is fully compatible with future migration to converged IP services. The service is being delivered over the Managed Telecommunications Services (MTS) network that Global Crossing operates on behalf of OGCbuying.solutions. The IND contract pushes the MTS user base to more than 100,000 users across more than 90 UK government departments and agencies, and it establishes MTS as the leading managed voice service for the public sector. A key feature of this managed service contract is the integration of the separate, disparate telephony networks of the Immigration Service and the Nationality Directorate. This contract will provide for a coherent, common private automatic branch exchange (PABX) platform operating the latest software, with management extending down to the handset - all at a fixed charge per extension for the life of the contract. The technology refresh will extend to the automatic call handling system in use at the IND's 200-seat call center at Croydon, south London. Keith Cameron, regional vice president, European enterprise sales, said: "This substantial contract is testimony to Global Crossing's deep understanding of and commitment to the government sector developed over the last 15 years. As a company, we aim to leverage our extensive network, build upon our vast experience in the UK and exploit our security certifications with the UK and US governments to make inroads into this sector, in North America and other countries served by our 500-city network." Global Crossing has held UK government security certification since 1989, and in 2003 it entered into an unprecedented Network Security Agreement with US security agencies. Hugh Barrett, Chief Executive, OGC.buying.solutions, said: ""We are delighted that the MTS user base has broken the 100,000 subscriber mark. This landmark reconfirms the value of the service to more than 90 public sector departments that fully appreciate the consistent, simple pricing and the commitment to technology refresh offered through the MTS framework agreement." Global Crossing has enabled the IND to fulfill its vision of obtaining a fixed-price telephony solution from a single supplier that encapsulates the procurement of all equipment, network, maintenance and user support. This cost-efficient service provides all locations with equal access to standard features and facilities. In addition, detailed contingency planning will reduce the risk of a single point of failure impacting multiple sites. Because IND is a widely dispersed organization, the improved communication links with other government departments and with the public at large will enable the IND to become more responsive and deliver a higher quality of service. The comprehensive technology refresh will overcome issues associated with the past multi-vendor procurement, maintenance and service management regime. A fully managed service will deliver greater efficiencies and remove the cost of supporting legacy equipment and unused network inventory. The upgrading of PABX software levels will introduce new features such as home working, hot-desking and voice mail for all extensions. All systems provided by Global Crossing will allow the future integration of both voice and data by ensuring today's systems and services are compatible with new technologies such as voice over IP (VoIP). Flexibility in the sizing of the network is also required to accommodate projected growth. Within the next five years, the IND estimates the number of sites will grow to 170. Additional services under consideration in the short term include videoconferencing and the expansion of services to channel ports in mainland Europe. NOTE TO EDITORS Other large government users of Global Crossing's managed voice service are Her Majesty's Prisons. A major phase of this $120 million contact was completed last August with the completion of PABX upgrades at 120 of the 147 sites to deliver advanced telephony to approximately 30,000 users. In addition, Global Crossing provides managed voice services to 220 Foreign and Commonwealth Office posts in 140 countries. ABOUT GLOBAL CROSSING Global Crossing (NASDAQ: GLBC) provides telecommunications solutions over the world's first integrated global IP-based network. Its core network connects more than 200 cities and 27 countries worldwide, and delivers services to more than 500 major cities, 50 countries and 5 continents around the globe. The company's global sales and support model matches the network footprint and, like the network, delivers a consistent customer experience worldwide. Global Crossing IP services are global in scale, linking the world's enterprises, governments and carriers with customers, employees and partners worldwide in a secure environment that is ideally suited for IP-based business applications, allowing e- commerce to thrive. The company offers a full range of managed data and voice products including Global Crossing IP VPN Service, Global Crossing Managed Services and Global Crossing VoIP services, to more than 40 percent of the Fortune 500, as well as 700 carriers, mobile operators and ISPs. CONTACT: GLOBAL CROSSING Press Contacts Becky Yeamans + 1 973-937-0155 PR@globalcrossing.com Kendra Langlie Latin America + 1 305-808-5912 LatAmPR@globalcrossing.com Mish Desmidt Europe + 44 (0) 7771-668438 EuropePR@globalcrossing.com Analysts/Investors Contact Mitch Burd +1 800-836-0342 glbc@globalcrossing.com URL: www.globalcrossing.com =========== B R A Z I L =========== CERJ: Commences Debt Restructuring ---------------------------------- Brazilian distributor Cerj began the restructuring process for its short-term debt, reports Business News Americas. On Thursday, the Company started a BRL710-million capital increase aimed at converting an intra-company loan of the same amount from Chilean holding Enersis into 1.3 trillion new voting shares. This will raise Cerj's capital to BRL1.6 billion from BRL915 million. Shareholders have the option to buy new shares at BRL0.53 per 1000 shares until March 19. "If Enersis converts its debt into shares it will bring its total investment in the company to BRL1.3 billion since 2002," said Marcelo Llevenes, Spanish parent Endesa's manager in Brazil. "This is a way of getting rid of an inter-company loan and of clearing up the company's balance, giving it some surplus cash," UBS Warburg analyst Gustavo Gattass added. Portugal's EDP presently holds 19.5% of Cerj but its participation in the increase is not certain. Cerj has already started talking with banks to restructure BRL240 million of debt maturing in the next 12 months, Llevenes said. "We want to convert this short-term debt to an average maturity of three years because payments need to be in line with our revenues." Cerj also has another BRL800 million in long-term debt. CONTACT: Cia de Eletricidade do Estado do Rio de Janeiro - Cerj Sao Domingos 24210-200 Niteroi - RJ Brazil Phone: +55 21 2613-7783 Fax: +55 31 2613-7123 Home Page: http://www.cerj.com.br Contacts: Eduardo J. Bernini, Chairman Emilio Lopez Ordobas, Vice Chairman COPEL: Parana State Head Goes To Paris For Arbitration Hearing -------------------------------------------------------------- Parana state Governor, Roberto Requiao, is in Paris attending an arbitration hearing on a US$850-million dispute between state power Copel (NYSE: ELP) and U.S.-based El Paso (NYSE: EP) over contracts at a thermoelectric plant in the state, relates Business News Americas. The 484MW Araucaria plant started operations in September 2002. Under the power purchase agreement with El Paso, Copel will buy 100% of output for 20 years at US$42/MWh. Requiao, when he took office early last year, froze payments for Copel's power purchases from Araucaria, claiming that the excessive costs were driving Copel into bankruptcy. El Paso has started legal proceedings to guarantee it compensation in the event that it is forced to sell its 60% stake in the plant to Copel. Copel owns 20% of the gas-fired plant and federal energy company Petrobras owns 20%. EMBRATEL: Embraces Saba Solution to Improve Employees, Services --------------------------------------------------------------- Saba (Nasdaq:SABA), the leading provider of human capital development and management (HCDM) solutions, announced Monday that Embratel (Empresa Brasileira de Telecomunicacoes), Brazil's largest telecommunications provider, has deployed the Saba Enterprise Learning Suite. Saba enables Embratel to boost its organizational learning activities while improving its ability to serve its customers throughout Brazil. "Embratel has a tradition of providing high quality and reliable telecommunications services and operations to our customers," said Joaquim Correia, Embratel's director of human resources. "We pride ourselves on the excellent relationship we maintain with our customers, and on our commitment to training and improving the quality of life of our employees. Saba is a key component that enables us to achieve this objective." Embratel provides a complete portfolio of telecommunications solutions, including advanced voice, high-speed data transmission, internet, data communication by satellite and corporate networks. The company plays a key role in the largest telecommunications network in Latin America, operating five satellites that connect Brazil to any part of the world. Its highest priority, however, is to provide alternative plans and promotions to benefit its customers, reducing the cost of their calls and making the best of their Embratel experience. To meet these requirements, Embratel maintains a corporate university, dedicated to helping its employees and customers embrace and deliver cutting-edge telecommunications technology. "Customer satisfaction is a critical element in the highly competitive telecommunications industry. And leading companies such as Embratel understand the connection between the ongoing development of employees and an organization's ability to maintain the highest levels of customer satisfaction," said Bobby Yazdani, Saba's chairman and CEO. "Saba supports Embratel's customer satisfaction and employee development initiatives with our depth of telecommunications experience and our commitment to continual innovation. This helps ensure that Embratel can continue to deliver on its promise of the highest levels of service and satisfaction to its employees, customers and partners." About Embratel Embratel is the premium telecommunications provider in Brazil, offering a wide range of telecommunication services, such as advanced voice, high-speed data transmission, Internet, data communication by satellite and corporate networks. The company is national leader in data and Internet services, in a privileged position to become the Latin American carrier with an all- distance network. Embratel network has national coverage with almost 17,500 miles of optic cables, representing around one million miles of fiber optics. About Saba Saba (Nasdaq:SABA) is the leading provider of human capital development and management (HCDM) solutions, which increase organizational performance through the implementation of a management system for aligning, developing, and managing people. Among the Global 2000, Saba customers include Alcatel, Cisco Systems, DaimlerChrysler, EMC Corp., Kaiser Permanente, Medtronic, Procter & Gamble, and VERITAS Software. Saba has received industry recognition for its solutions, and recently achieved the leader quadrant position in the Gartner 2003 e- Learning Suite "Magic Quadrant." CONTACT: Saba Redwood Shores, California Phone: (877) SABA-101 or (650) 779-2791. Home page: www.saba.com Aimee Schoaf Phone: 623-536-5021 Email: aschoaf@saba.com PARMALAT BRASIL: Sumitomo Responds To Warning --------------------------------------------- A unit of Japan's Sumitomo Mitsui Banking Corp. in Brazil moved to discredit statements issued by Enrico Bondi, the administrator of Italy's troubled Parmalat Finanziaria SpA (PRF.MI), against it, says Dow Jones. Bondi has warned that Parmalat could hold the Japanese bank "responsible for any damages caused" to its main dairy unit in Brazil after a recent court-ordered intervention. In a letter to Sumitomo, Bondi said that the intervention jeopardized the unit's efforts to stay afloat and suggested that Sumitomo do what was necessary to "avoid the liquidation of the Subsidiary, or else suffer the legal consequences of your actions or inactions." But in a statement provided to Dow Jones Newswires by Claudio Lucio Grimaldi, head of Sumitomo Mitsui Brasileiro's legal department, Sumitomo said that the "allegations or threat made by Parmalat Italy are devoid of merit and represent an inappropriate challenge to the authority of the court in Brazil." Sumitomo said Friday that it was "confident that it has at all times conducted itself properly and in accordance with applicable law in Brazil." The bank said that it would "in due course respond in detail to Mr. Bondi's letter, as well as take such further measures in court as it deems appropriate." * WB Approves $505M To Support Brazil's Economic Growth Program --------------------------------------------------------------- The World Bank Board of Directors approved a US$ 505 million First Programmatic Loan for Sustainable and Equitable Growth for Brazil. The loan will strengthen a set of microeconomic measures and institutional reforms for sustainable, broad-based growth, employment generation, and poverty reduction through higher investment and rising productivity. It will also reduce external vulnerability by covering part of Brazil's external financing requirements and increasing net international reserves. "A successful program of continued sound economic management, microeconomic and institutional reforms, and implementation of actions in the areas supported by this loan could contribute to Brazil reaching an average annual growth rate of 4 percent," said Vinod Thomas, World Bank Brazil Country Director. "Increasing growth is important to provide employment and raise the incomes of the poor, directly reducing poverty. The loan supports a set of microeconomic and institutional reforms with short, medium and long-term impacts: Reduced logistic costs Logistics account for the largest share of the cost of doing business in Brazil. Estimated at 20 percent of GDP, almost twice the proportion in OECD countries, logistic costs represent a third of the operating costs of firms on average and up to half in some industries. The Government has set the framework to allow for a substantial reduction of logistic costs, which will help increase the price competitiveness of Brazilian products. Key actions will cut customs release times by 40 percent, cut container handling costs in ports by 10 percent, lower road transport costs by about 5 percent, and increase non-road transportation by 10 percent. An enhanced business environment Brazil's business environment has been improved through infrastructure regulation, simplified small and medium enterprise registration and a new corporate insolvency law. Two new regulatory agencies have been created for land- and water-based transportation, and a law on public-private partnerships has been submitted to Congress. Further Improvements to the business environment will increase public-private partnership for infrastructure investments, increase domestic competition and consumer choice by means of a sound enforcement of the competition law, halve the time to register a business decreased in selected cities, and increase the speed of resolution and the recovery value of insolvent enterprises under new bankruptcy law. Improved financial sector efficiency, access, and soundness Financial sector reforms will reduce bank overheads, increase financial access, reduce credit risk, and accelerate the expansion of the insurance industry. The access of the poor has also been increased by legal changes that simplify the opening of bank accounts. This should lead to an increase of 8 million bank account holders, from 95 million to 103 million people, by 2006. Increased technological progress and innovation A new Innovation law will increase technology transfer contracts between universities and the private sector up to 20 percent and increase the private share in research and development (R&D) by 10 percentage points. Supported improvements in the Clean Development Mechanism will generate US$100 million in carbon credits. "The reforms of recent years, the commitment of the government, and the microeconomic growth agenda being proposed, all point to strong potential poverty reduction in the next few years. This is not simply wishful thinking: some dividends are already being seen from the government's serious approach to social policy and economic management," said Thomas. This single-tranche fixed-spread IBRD loan in euros (EUR 427.20 million), has a repayment period of 14 years including five years of grace. Brazil is among the World Bank's largest IBRD clients with a total lending to date of $30 billion and an outstanding portfolio of $8.4 billion. The Bank's current portfolio in Brazil comprises 53 active projects with about $4.7 billion in net commitments. CONTACTS: (Washington) Angela Furtado (202) 473-1909 E-mail: Afurtado@worldbank.org (Brasilia) Mauro Azeredo (61) 329-1059 E-mail: Mazeredo@worldbank.org ========= C H I L E ========= AES GENER: Extends Expiry of Tender Offers ------------------------------------------ Chilean generator AES Gener, a subsidiary of U.S. utility AES Corp., extended the expiration dates of its tender offers, reports Business News Americas. Gener, which is looking to pre-pay debts totaling US$700 million expiring in 2005-2006, has extended until April 1 the expiration date of the previously announced tender offers for its US$73.9 million US convertible notes and US$403 million Chilean convertible bonds due 2005. The offer for the US convertible notes now expires at 12:00 midnight EST on April 1, while the offer for the Chilean convertible bonds expires at 10am Santiago time the same day. The expiration date for its US$200 million Yankee notes, due 2006, has also been extended, until 12:00 midnight EST February 27. The previous deadline for the US convertible and Yankee bonds was February 20, while the latest deadline for the Chilean notes, extended most recently on February 20, was March 2. As of 5pm EST on February 20, AES Gener had received tenders and related consents from holders of US$145 million of Yankee notes and US$55.2 million worth of US convertible notes, representing 72.51% and 74.67% respectively of the total outstanding amounts. Gener also said it expects to receive a payment of US$298 million from direct owner Inversiones Cachagua by February 27. The payment represents the amount outstanding under a mercantile account. Gener also announced plans to borrow some US$75 million in the form of syndicated bank debt and to issue US$300 million of bonds on international capital markets next month, instead of the US$400 million previously announced. Shareholders approved offering guarantees for the bond issue during a meeting on February 19. Meanwhile, the Company expects to call an extraordinary shareholders' meeting in March to revoke a previously authorized capital increase of US$80 million and authorize a new equity issue of up to US$125 million. Gener will raise the capital through an offering of new shares to its shareholders, including Cachagua, which is expected to close during the first week of April. In the meantime, its US parent AES Corp, through Inversiones Cachagua, is expected to proceed with the previously announced sale of some of its existing Gener shares in Chile through a private placement in the international equity markets. Previous reports have suggested that Cachagua could sell between US$100 million - US$200 million of its shares depending on the market price. CONTACT: AES GENER S.A. Mariano Sanchez Fontecilla 310 Piso 3 Santiago de Chile Phone: (56-2) 6868900 Fax: (56-2) 6868991 Home Page: www.gener.com Contact: Robert Morgan, Chief Executive Laurence Golborne Riveros, Chief Financial Officer AES GENER: Moody's Puts Rating Under Review for Possible Upgrade ---------------------------------------------------------------- Moody's Investors Service will now review for possible upgrade the B2 rating of AES Gener S.A's senior unsecured notes. The ratings agency is embarking on the review in light of Gener's improving business outlook -- stronger performance in the Company's Chilean operations and in Chivor, Columbia, as well as more favorable debt terms under negotiation at the Company's Termoandes, Interandes subsidiaries in Argentina. At the moment, the Company is undertaking a restructuring of its balance sheet including receipt of cash from the parent, issuance of new debt, and a tender offer for the outstanding senior unsecured Yankee notes that are currently rated B2. =========== M E X I C O =========== CONE MILLS: Judge Defers Sale To Wilbur Ross -------------------------------------------- The US$90 million sale of Cone Mills to financier Wilbur Ross has been put on hold following a federal bankruptcy judge's order. Judge Mary F. Walrath, in a hearing late Thursday in Wilmington, Del., issued the order at the behest of Cone Mills' bondholders. The judge, however, said a US$35-million bond must be posted by midnight Monday for the stay to remain in place. The money would compensate Cone Mills for any losses that result from the stay. The sale process would go ahead if the bondholders can't post the bond. Ross' US$90-million bid for the denim maker obtained the judge's approval earlier this month. However, committees representing Cone Mills' bondholders and shareholders appealed the judge's decision, saying Ross' offer was too low. Ross, reached by the News & Record in the Dominican Republic, said he would wait to see what the committee does before deciding how to act. He does not plan to increase his offer. He noted that his purchase agreement with Cone has a Feb. 27 "drop-dead" date, meaning the deal could be terminated if the sale has not closed by then. Cone Mills, which filed for Chapter 11 protection last Sept. 24, is headquartered in Greensboro, NC. It has manufacturing facilities located in North Carolina and South Carolina, with a joint venture plant in Coahuila, Mexico. HYLSAMEX: Alfa To Hand Over Stock To Shareholders ------------------------------------------------- Mexican conglomerate Alfa (ALFAA.MX) will give its shareholders shares of iron and steel unit Hylsamex on Feb. 27, as part of the spin off process of the ailing subsidiary, reports Reuters. Alfa shareholders, owner of 90% of Hylsamex, agreed on Feb. 4 to spin off the unit. Alfa originally said that divesting Hylsamex would reduce overall sales by about one-quarter but that net debt would drop to US$1.3 billion from about US$2.3 billion. In the spin-off, Alfa will reduce its equity and reimburse it in kind to shareholders through a pro-rated delivery of securities known as CPOs, which represent the 90% ownership that Alfa has in Hylsamex. The equity reduction will take place in two stages. The first, approved last Wednesday, will be a reimbursement representing about 39%t of the ownership. The second, to be approved by shareholders in 2005, will be for the remaining 51% stake owned by Alfa. CONTACT: Hylsamex S.A. de C.V. 101 Ave Munich Cuauhtemoc 66452 San Nicolas de los Garza Nuevo Leon Mexico Phone: +52 81 8865 2828 Fax: +52 81 8865 1210 Home Page: http://www.hylsamex.com.mx Contact: Engr. Dionisio Garza Medina, Chairman Alejandro Elizondo Barragan, Chief Executive Engr IUSACELL: Selects LightSurf MMSC and PictureMail Services --------------------------------------------------------- Latin America's First Unified Multimedia Messaging Service Integrates Peer-to-Peer Messaging with Complete Web-based Media Storage and Management Solution LightSurf Technologies, Inc., a leading provider of open standards technology and services for multimedia messaging, announced Monday that Grupo Iusacell, S.A. de C.V., a leading wireless operator in Mexico, has selected LightSurf to host, operate, and manage its MMSC and PictureMail Services offering for mobile customers across Mexico. Iusacell is the first wireless operator in Latin America to launch LightSurf's completely outsourced MMS solution, which provides a totally integrated messaging and Web solution designed to increase operator revenues and customer satisfaction. "We selected LightSurf's MMSC and PictureMail Services to help us deliver the most compelling MMS applications and services to our customers," says Eduardo Kuri, Executive Vice President of New Services of Iusacell. "Because of LightSurf's recognized expertise with MMS and PictureMail, we are confident they are the right partner to assist Iusacell in offering truly differentiated solutions to the Mexican wireless telecommunications market." LightSurf's MMSC and PictureMail Services will help Iusacell to quickly and cost-effectively present exciting multimedia messaging services and applications through a single outsourced framework. Beyond providing a superior user experience across multiple handsets, the LightSurf solution allows operators to extend multimedia functionality to all legacy handset users and e-mail recipients. In addition, using the LightSurf solution gives Iusacell the freedom to evolve into emerging areas like VideoMail and content distribution, plus the ability to ensure that MMS and PictureMail customers will enjoy a unified Web presence. Built on the LightSurf 5 Open Standards MMS Platform, the LightSurf MMSC is a carrier-class suite of Multimedia Messaging Services that are compliant with 3GPP, 3GPP2 and WAP Forum open standards to ensure seamless interoperability with all wireless network technologies, switches, gateways and MMS-enabled handsets. The LightSurf MMSC and PictureMail Service solution includes the hosted MMSC, PictureMail applications, and integration with the Iusacell wireless network and billing system. LightSurf manages around-the-clock operation and maintenance of the services. The deal with Iusacell further establishes LightSurf as a leader in the MMS sector. In a recent report, advisory services firm Zelos Group highlighted LightSurf as a leading provider of infrastructure in the market for picture messaging services. In the report, Zelos Group senior analyst Seamus McAteer maintained that, "LightSurf...provides infrastructure to enable carriers to quickly 'switch on' carrier-branded services that would otherwise require extensive systems integration." "Iusacell customers will soon join the millions of wireless subscribers around the world who are enjoying our award-winning services," said Philippe Kahn, CEO of LightSurf Technologies, Inc. "LightSurf's outsourced MMS solution provides wireless operators with ready-to-deploy services that drive higher ARPU while lowering overall costs in a completely managed environment." About LightSurf Technologies, Inc. LightSurf is the global leader in Open Standards MMS, Picture Messaging, and Premium Content Delivery solutions, supporting all mobile devices and wireless networks. LightSurf's open standards- based services are currently deployed worldwide with partners, including Sprint (NYSE:FON)(NYSE:PCS), Bell Canada (TSE:BCE-T), Eastman Kodak (NYSE:EK), mmO2 plc (LSE:OOM), Yahoo! JAPAN (JASDAQ:4689), Nokia (NYSE:NOK), Microsoft (Nasdaq:MSFT), Sanyo (Nasdaq:SANYY), Samsung Electronics (KSE:05930), Toshiba (TSE:6502), LG International Corp., Qualcomm (Nasdaq:QCOM), LogicaCMG (LSE:LOG)(Enex:LOG) and Motorola (NYSE:MOT). Founded in 1998 by industry visionary Philippe Kahn, LightSurf is a privately held company headquartered in Santa Cruz, Calif. About Iusacell Grupo Iusacell, S.A de C.V (Iusacell) (NYSE:CEL)(BMV:CEL) is a wireless cellular service provider in seven of the nine regions in Mexico, including Mexico City, Guadalajara, Monterrey, Tijuana, Acapulco, Puebla, Leon and Merida. The Company's service regions encompass approximately 92 million POPs, representing approximately 90 percent of the country's total population. For additional information about Iusacell, visit www.iusacell.com. CONTACT: LightSurf Technologies Santa Cruz Dave Kumec Phone: 831-469-1861 Email: pr@lightsurf.com ================= V E N E Z U E L A ================= PDVSA: Makes $154M Debt Payment ------------------------------- Signaling a recovery from a crippling general strike more than a year ago, state oil firm PDVSA on Friday made a US$154-million interest and amortization payment for this month on a US$4- billion bond issue, says Reuters. PDVSA said that the Feb. 12 operation by its affiliate PDVSA Finance Ltd completed payment of two debt tranches of US$400 million each, carrying coupons of 6.45% and 8.45%, respectively. "In this way, the Venezuelan oil corporation continues to honor its obligations with its bond holders and investors and sends a clear and positive signal about the restoration of its operational and financial activities," the Company said in a statement. PDVSA said that of the US$4 billion in bonds it had issued, US$2.8 billion remained to be repaid. *********** 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. 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