/raid1/www/Hosts/bankrupt/TCRLA_Public/040226.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, February 26, 2004, Vol. 5, Issue 40
Headlines
A R G E N T I N A
AR-CINT: Bankruptcy Proceeds; Individual Reports Expected
AT&T LATIN AMERICA: Telmex Wraps Up Acquisition
BROOKER: Receiver Ends Claims Authentication Period
DIRECTV LATIN AMERICA: Emerges From Chapter 11
DIRECTV LA: MONTHLY OPERATING REPORT -- Ended January 31, 2004
FARMACEUTICA ALVEAR: Credit Verification Period Expires
HOLACINE: Court Approves Reorganization Petition
INDUS AGRO: Bankruptcy Made Official on Court Order
LACEY: Credit Review in Bankruptcy Ends Today
LACT: Receiver Prepares Individual Reports on Reorganization
LIDONIA: Individual Reports Due at Court Today
LOCKBIT: Individual Reports Expected for Filing Today
NOI DUE: Individual Reports Filing Deadline Today
REPSOL YPF: Previews Improved Financial Results for 2003
SIPAS: Seeks Court Permission to Reorganize
SUAVECITOS: Individual Reports Due Today
TELECOM ARGENTINA: Shareholders Approve New Corporate Name
E C U A D O R
* Moody's Raises Ecuador's Rating On Improving Debt Situation
M E X I C O
AFIANZADORA INSURGENTES: S&P Reaffirms on CreditWatch Negative
NATIONAL ENERGY: TransCanada Agrees to Acquire GTN
PARMALAT DE MEXICO: Citigroup Unfreezes Accounts
TV AZTECA: Reports Mixed Results for FY 2003; Slightly Better
P E R U
* IMF Final Review of Peru's Stand-By Arrangement Favorable
P U E R T O R I C O
CENTENNIAL COMMUNICATIONS: Announces New Director
- - - - - - - - - - -
=================
A R G E N T I N A
=================
AR-CINT: Bankruptcy Proceeds; Individual Reports Expected
---------------------------------------------------------
The individual reports on the bankruptcy of Buenos Aires-based
Ar-Cint S.R.L. are due at the court today. The Company's
receiver, Ms. Norma Haydee Fernandez, prepared the reports upon
completion of the credit verification process done to study the
Company's debts.
The general report, which is to be prepared after the individual
reports are processed at court, must be filed on April 13, 2004.
This contains a summary of the individual reports, which hold the
results of the verification process.
Court No. 6 of Buenos Aires handles the Company's case, according
to an earlier report from the Troubled Company Reporter - Latin
America.
CONTACT: Norma Haydee Fernandez
Carlos Pellegrini 465
Buenos Aires
AT&T LATIN AMERICA: Telmex Wraps Up Acquisition
-----------------------------------------------
Telefonos de Mexico (Telmex), the country's largest
telecommunications company, said Tuesday that it has finalized
the acquisition of AT&T Latin America, relates Reuters. Telmex,
which is owned by telecom and media magnate Carlos Slim,
presented the highest bid for ATTL's assets in a court-sponsored
auction on October 23 last year. The Mexican company beat out
Brazil's Embratel and Argentina's Impsat with an offer to pay
US$171 million in cash and assume US$36 million in debt for
ATTL's assets.
Telmex provides local service, public telephony, domestic and
international long-distance, data transmission, Internet access
and directory services.
BROOKER: Receiver Ends Claims Authentication Period
---------------------------------------------------
Ms. Susana Manrique, receiver for Brooker S.A., closes the credit
verification process for the Company's bankruptcy today.
Creditors' claims are examined to ascertain the nature and amount
of the Company's debts.
Buenos Aires Court No. 5 issued the bankruptcy order earlier this
year, and assigned the receiver said the Troubled Company
Reporter - Latin America in an earlier report. Clerk No. 9
assists the court on the case.
The court ordered the receiver to hand in the individual reports
on April 14, 2004. These are to be prepared after the credit
verification process is completed. After these reports are
processed at court, the receiver will prepare a general report
consolidating the information in the individual reports. The
court requires the receiver to submit the general report on May
27 next year.
CONTACT: Susana Manrique
Lavalle 1675
Buenos Aires
DIRECTV LATIN AMERICA: Emerges From Chapter 11
----------------------------------------------
DIRECTV Latin America, LLC ("the Company") announced Tuesday that
the Company's Plan of Reorganization has become effective and
that the Company has emerged from Chapter 11. As previously
reported, the Company filed for Chapter 11 in March 2003 in order
to aggressively address its financial and operational challenges.
The filing applied only to the U.S. entity and did not include
any of the operating companies in Latin America and the
Caribbean.
"DIRECTV Latin America is now on a solid footing for the future,"
said Larry N. Chapman, President and Chief Operating Officer,
DIRECTV Latin America, LLC. "The Company has successfully
reorganized under Chapter 11, and I'm very pleased that we have
emerged in a timely manner. I want to thank our subscribers,
employees, advisors and the creditor group for their support in
completing this process."
About DIRECTV Latin America
DIRECTV is a leading direct-to-home satellite television service
in Latin America and the Caribbean. Currently, the service
reaches approximately 1.5 million customers in the region, in a
total of 28 markets. DIRECTV is currently available in:
Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, El
Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Puerto
Rico, Trinidad & Tobago, Uruguay, Venezuela and several Caribbean
island nations.
DIRECTV Latin America, LLC is a multinational company owned by
DIRECTV Latin America Holdings, a subsidiary of Hughes
Electronics Corporation; and Darlene Investments, LLC, an
affiliate of the Cisneros Group of Companies. DIRECTV Latin
America and its principal operating companies have offices in
Buenos Aires, Argentina; Sao Paulo, Brazil; Cali, Colombia;
Mexico City, Mexico; Carolina, Puerto Rico; Fort Lauderdale, USA;
and Caracas, Venezuela. Additional information on DIRECTV Latin
America may be found at the company's website: www.directvla.com.
Hughes Electronics Corporation (NYSE: HS) is a world-leading
provider of digital multichannel television entertainment,
broadband satellite networks and services, and global video and
data broadcasting.
MEDIA CONTACT: DIRECTV Latin America
Veronica Diaz
954-958-3285
DIRECTV LA: MONTHLY OPERATING REPORT -- Ended January 31, 2004
---------------------------------------------------------------
DirecTV Latin America, LLC
Unaudited Balance Sheet
As of January 31, 2004
ASSETS
Cash and Cash equivalents $3,674,693
Accounts receivable - unconsolidated companies 432,721,862
Accounts receivable - consolidated companies 337,740,870
Allowance for doubtful accounts (27,082,876)
-------------
Total Receivables, net 743,379,856
Property and Equipment, net 38,554,062
Intangible Assets, net 2,000,000
Prepaid expenses and other assets 9,114,731
-------------
TOTAL ASSETS $796,723,342
=============
LIABILITIES AND OWNERS' DEFICIT
Postpetition Liabilities:
Accounts Payable $17,319,531
Contingent Programming Payables 28,546,148
Accrued Liabilities 21,428,959
Local Programming to be offset 31,559,897
Long-term debt 119,809,532
-------------
Total Postpetition Liabilities 218,664,067
Prepetition Liabilities:
Accounts Payable 123,540,082
Accrued Liabilities 83,165,091
Unsecured Notes 1,381,335,582
-------------
Total Prepetition Liabilities 1,588,040,755
Net Losses in consolidated subsidiaries 503,119,521
Owners' deficit (1,513,101,001)
-------------
Total Liabilities and Owners' Deficit $796,723,342
=============
DirecTV Latin America, LLC
Unaudited Statement of Operations
For the period from January 1 to 31, 2004
Net Revenues $30,882,799
Costs and Expenses:
Programming and other direct costs 18,463,446
Selling, general and admin expenses 3,304,832
Depreciation and amortization 1,928,186
-------------
Total costs and expenses 23,696,464
-------------
Operating Loss [sic.] 7,186,335
-------------
Other Income:
Interest Income 126,668
Interest expense (707,342)
Other Income -
-------------
Total other income (580,674)
-------------
Reorganization Items:
Chapter 11 professional fees 1,012,027
-------------
Total Reorganization items 1,012,027
Loss before loss from subsidiaries 5,593,634
Loss from subsidiaries (9,082,544)
Withholding taxes (3,860,257)
-------------
Net Loss ($7,349,167)
=============
DirecTV Latin America, LLC
Schedule of Cash Receipts & Disbursements
For the period from January 1 to 31, 2004
Receipts:
Royalty Receipts $5,621,808
DIP Funding 15,000,000
Other Inflows 79,801
-------------
Total Receipts 20,701,609
Disbursements:
Capital contributions -
Programming 9,546,427
Satellite 6,002,677
Other Direct Costs 468,150
CapEx 107,109
Interest Paid on DIP loan 493,071
Restructuring 1,403,068
U.S. Trustee Quarterly Fees 10,000
Other Operating Expenses:
Wages, Payroll Taxes and Benefits 1,285,161
Health Insurance 92,956
HEC: FX Transactions 1,168,483
Communication Expenses 112,134
Equipment/Services/Other Rentals 31,442
Freight and warehouse 9,116
Marketing 106,393
Office Supplies/Equipment 9,200
Outsourcing 70,660
Professional Fees 237,064
Rent 126,680
Travel Expense 65,846
Utilities -
Taxes (Non-payroll) 84,268
Others 851
-------------
Total Disbursements 21,430,756
-------------
Net Cash Flow ($729,147)
=============
(DirecTV Latin America Bankruptcy News, Issue No. 21; Bankruptcy
Creditors' Service, Inc., 215/945-7000)
FARMACEUTICA ALVEAR: Credit Verification Period Expires
-------------------------------------------------------
Ms. Marta Mabel Linares, receiver for Farmaceutica Alvear 2251
S.R.L., closes claims authentication process for the Company's
bankruptcy today. On orders from the court, she will prepare the
individual reports as the next step to verifying the results.
An earlier report by the Troubled Company Reporter - Latin
America indicated that Buenos Aires Court No.1 issued the
bankruptcy order, while Clerk No. 2 assists.
CONTACT: Marta Mabel Linares
Parana 145
Buenos Aires
HOLACINE: Court Approves Reorganization Petition
------------------------------------------------
Buenos Aires Court No. 19, under Judge Fernandez approved a
petition for "Concurso Preventivo" filed by Holacine S.A.
recently. The Company will undergo reorganization with Ms.
Beatriz Muruaga as receiver.
Creditors are required to present their claims to the receiver
for verification before April 16. Verifications are done to
ascertain the nature and amount of the Company's debts. The
receiver will also prepare the individual and general reports on
the case.
Clerk No. 37, Dr. Durao, assists the court on the case, relates
local newspaper La Nacion.
CONTACT: Holacine S.A.
Ave Leandro Alem 628
Buenos Aires
INDUS AGRO: Bankruptcy Made Official on Court Order
---------------------------------------------------
Indus Agro S.A. enters bankruptcy as declared by Buenos Aires
Court No. 20, under the jurisdiction of Judge Taillade. Argentine
newspaper La Nacion relates that Clerk No. 39, Dr. Amaya, works
with the court on the case.
The Company's receiver, Mr. Jacobo Shalum, will examine and
authenticate creditors' claims until June 28 this year. The
receiver is also required to prepare the individual reports on
the verification results and a general report before the
Company's assets are liquidated.
CONTACT: Indus Agro S.A.
Virrey Liniers 131
Buenos Aires
Jacobo Shalum
Lavalle 1672
Buenos Aires
LACEY: Credit Review in Bankruptcy Ends Today
---------------------------------------------
Creditors of Argentine company Lacey S.A. must present their
claims to the Company's receiver, Ms. Patricia Monica Narducci,
as the deadline for filing expires today. The receiver will now
prepare the individual reports on the verification results.
Buenos Aires Court No. 21 requires the receiver to file the
individual reports on April 9. The receiver's duties also include
the preparation of the general report, due for filing on May 21,
after the individual reports are processed at court.
CONTACT: Patricia Monica Narduzzi
Rivadavia 666
Buenos Aires
LACT: Receiver Prepares Individual Reports on Reorganization
------------------------------------------------------------
The reorganization of Lact S.A. proceeds with the preparation of
the individual reports as the credit verification period is set
to expire today. Ms. Norma Salgado Gomez, the Company's receiver,
examined and authenticated creditors' claims.
The receiver's tasks also include the preparation of the general
reports after the individual reports are processed at cout. The
reorganization will close with the informative assembly on
November 10 next year.
Court No. 17, under Judge Bavastro handles the Company's case
with assistance from Dr. Vanoli, the city's Clerk No. 34, said
the Troubled Company Reporter - Latin America in an earlier
report.
CONTACT: Lact S.A.
6th Floor, Room A
Suipacha 376
Buenos Aires
Norma Salgado Gomez
5th Floor, Room 503
Viamonte 1546
Buenos Aires
LIDONIA: Individual Reports Due at Court Today
----------------------------------------------
Buenos Aires Court No. 17 requires the receiver for local company
Lidonia S.A. to file the individual reports on the Company's
bankruptcy today. These reports contain results of the credit
verification process completed late last year.
The receiver, Mr. Antonio Gerardo Pennacchio, will prepare a
general report to be filed on April 9, said the Troubled Company
Reporter - Latin America in an earlier report. This report is a
consolidation of the information in the individual reports after
processing at the court.
CONTACT: Antonio Gerardo pennacchio
Cramer 2175
Buenos Aires
LOCKBIT: Individual Reports Expected for Filing Today
-----------------------------------------------------
As part of the bankruptcy of Buenos Airs-based Lockbit S.A.,
proofs of claims reports must be submitted to Buenos Aires' Court
No. 6 today. The Company's receiver, Mr. Juan Carlos Vilalonga,
prepared the reports after the credit verifications were closed
on December 12 last year.
He will also prepare the general report, which must be filed on
April 13 next year, after the individual reports are processed at
the court.
An earlier report by the Troubled Company Reporter - Latin
America revealed that the Argentine beverage company was declared
bankrupt by Judge del Ferrario, who handles the Company's case
with assistance from Clerk No. 12, Dr. Mendez Sarmiento. The
bankruptcy order came after the Company's creditor, Vinares S.A.
sough for its bankruptcy for non-payment of debt.
CONTACT: Lockbit S.A.
10th Floor, Room B
Adolfo Asinas 1433
Buenos Aires
Juan Vilanova
6th floor, Room B
Hipolito Yrigoyen 1249
Buenos Aires
NOI DUE: Individual Reports Filing Deadline Today
-------------------------------------------------
Jorge Guillermo Podesta, receiver for Noi Due S.R.L. must file
the individual reports at Buenos Aires Court No. 11 today. The
reports contain the results of the credit verification process
done to ascertain the nature and amount of the Company's debts.
The Troubled Company Reporter - Latin America said in an earlier
report that the general report is due at the court on April 8.
The receiver will prepare this report after the individual
reports are processed.
The Company's assets will be liquidated at the end of the
bankruptcy process to repay creditors.
CONTACT: Jorge Guillermo Podesta
Reconquista 336
Buenos Aires
REPSOL YPF: Previews Improved Financial Results for 2003
--------------------------------------------------------
* Company Reports Record Oil and Gas Production
Repsol YPF posts more than Eu2,000 million in net income
- Operating Income rises 16% in euros (39% in dollars)
- Adjusted net income in euros up 18% (41% in dollars)
- Production 13% higher in the year: 1,132,500 barrels of oil
equivalent per day (boepd)
- Net debt slashed 32%, and financial costs 49%
Repsol YPF net reported income in 2003 rose 3.5% year-on-year to
Eu2,020 million. Production reached a record high, income
increased in all business areas and successfully passed the
targets set for the year. This enhanced performance is of
special significance, in that there were two negative effects: a
61.6% rise in the corporate tax rate, and the impact on financial
statements of the dollar depreciation against the euro, suffered
by all European oil companies. Expressed in dollars, Repsol YPF
net income would have risen 24%.
Adjusted net income before extraordinary and non-recurring items
and goodwill amortisation was Eu2,676 million, rising 18% year-
on-year. Operating income, at Eu3,860 million, was 16.2% higher.
A cash flow of Eu4,477 million was posted.
Repsol YPF's good results in 2003 were achieved in the context of
a weak dollar, and a rise in benchmark oil prices as a result of
instability in the Middle East, restrictions in the OPEC
production, and higher demand which pushed up the Brent
realisation price to an average $28.83 per barrel in comparison
with $25.02 per barrel in 2002. In euros, the price actually
fell 3.7%, from Eu26.50 per barrel to Eu25.52 per barrel.
Refining & Marketing margins improved overall, and the average
margins for Chemicals were at a lower than mid-cycle level, if
better than the year before. Gas & Power results continued to be
negatively affected in the year-on-year comparison by the sale of
a share package in Gas Natural SDG in May 2002.
The economic situation in Argentina showed recovery in the year,
with sustained growth in activity and a stable currency exchange
and price environment.
Reduction of 32% in debt and 49% in financial costs
At the close of 2003, Repsol YPF net financial debt was Eu5,047
million, equivalent to a 32.4% cutback on the year before. The
debt ratio continued to fall, reaching 21.9% in comparison to
29.2% in 2002 and 42.9% in 2001.
The considerable reduction in debt over recent years is the
result of the Company's ability to generate a large cash flow,
and a selective investment and divestment policy. The Eu2,425
million cutback in debt during 2003, in which the euro
apreciation against the dollar had a positive effect, is of
special significance in that it was compatible with a 43.5% rise
in investments.
Mainly as a result of this lower debt level, the Repsol YPF debt
cost also shrank considerably. Financial costs dropped 49.1%
year-on-year, to Eu400 million.
As part of the conservative financial policy set in place by the
Company, debt maturities have been pre-financed up to the end of
2005, maintaining a high liquidity level, at Eu5,776 million at
the end of December last. The ratio of cash flow to net debt
(leverage) went from 64.6% in December 2002 to 88.7% at the close
of 2003.
Investments in 2003 were Eu3,837 million as against Eu2,673
million the year before. The greater part of this sum was spent
on exercising the purchase option on 20% of Trinidad & Tobago
reserves, and the acquisition of a 25% stake in Quiamare la
Ceiba, Venezuela. Divestments were practically irrelevant,
amounting to Eu228 million.
Exploration & Production: 31.8% higher income and record
production
The Exploration & Production area posted Eu2,352 million in
operating income last year, showing a 31.8% rise on the 2002
equivalent of Eu1,785 million.
The notable increase in operating income last year, despite the
negative effect of a weak dollar, was basically driven by
production growth. Additional causes were the high realisation
price of gas from Trinidad & Tobago, the higher margin obtained
from marketing this gas in the US, and a higher average gas price
in Argentina.
Average production for the year reached a record high of
1,132,500 barrels of oil equivalent per day (boepd), 13.2% higher
than in 2002.
Decisive to this record performance was a 30% rise in gas
production from Trinidad & Tobago where throughput reached 98,700
boepd with the three LNG trains in operation. Liquids production
grew 1.7%, with an average 10,200 barrels per day.
These higher prices, which had the immediate effect of raising
the average Repsol YPF liquids realisation price to $25.52
(Eu22.58) per barrel compared to $20.69 (Eu22.02) per barrel in
2002, were greatly affected by the euro/dollar exchange rate.
The average gas selling price was $1.07 per thousand standard
cubic feet, showing a rise of 35% on 2002 levels in dollars, and
13% in euros.
Net proved oil and gas reserves at 31 December 2003 were 3.3% up
year-on-year, at 5,433 million boe, and comprised 1,882 million
barrels (34.6%) of liquids, and the remainder (19.9Tcf) of gas.
The reserves' replacement rate for 2003 was 143%, after
incorporating to the 413 Mboe of reserves produced during the
year, a further 585 Mboe in new reserves.
2003 investments in Exploration & Production were 100.6% higher
than in 2002, reaching 2,168 million. This figure includes
payment of the Trinidad & Tobago purchase option. Investments in
development represented 39% of the total and were spent mainly in
Argentina (64%), Trinidad & Tobago (13%), Bolivia (7%), Ecuador
(5%), Libya (3%) and Venezuela (3%).
Refining & Marketing: income rises 40% and sales 7%
At Eu1,196 million, operating income from Refining & Marketing
activities in 2003 rose 40% in comparison with the Eu854 million
posted in 2002. This increase, despite the negative effect of
dollar depreciation, is mainly attributable to higher
international refining margins, the recovery in the Argentinean
economic scenario, and a 7% rise in oil product sales, which
surpassed 53 million tons.
The distillation level was 4.9% higher than the year before, and
the Company's refining margin indicators were also up $1.64 per
barrel. Unitary marketing margins in Spain were similar to those
for 2002, whereas margins in Argentina improved considerably
under the effect of the peso appreciation against the dollar, and
cost savings set in place during 2003. Overall oil product sales
increased 4% in Spain, 3% in Argentina, and over 26% in the other
countries.
Light product sales in Spain rose 3.4%, and fuel sales at service
stations were 3% higher despite a drop in the number of sales
outlets, reflecting higher efficiency in the Repsol YPF service
station network.
There was also 8.6% growth in direct gas oil sales in Spain, as
well as an increase in non-oil activities at our own service
station network, and in the number of customers with loyalty-
building professional and private payment cards.
LPG sales in Europe fell 2% because of competition from other
energy sources and mild weather during the year. In Latin
America there was a 0.8% drop because of lower demand in
Argentina and mild winter in the Southern Cone, among other
factors.
Refining & Marketing investments in 2003 were Eu663 million, up
13.5% year-on-year. Most of this expenditure was allotted to
current refining projects, including the mild hydrocracker at
Puertollano, an FCC hydro-treatment unit for the La Coruņa
refinery, a vacuum unit and a visbreaking unit in La Pampilla,
revamping of the service station network, and the development of
several commercial LPG products in Spain and Latin America.
Most of the investments in Spain were spent on developing an
ambitious program to adapt the production system to the new
European Union quality specifications due to como into effect
from 2005 onwards.
Chemicals: 60% operating income growth and record sales
In Chemicals, 2003 operating income surged 59.8% year-on-year
reaching Eu155 million, boosted by higher international margins
in basic petrochemicals and Latin American derivatives (urea and
methanol) as well as sales growth.
Average international margins in 2003, slightly higher than in
the previous year, could be defined as mid-low cycle. In
comparison with 2002, the improvement in urea and methanol
margins was driven by higher natural gas prices in the U.S. and
the positive trend in base chemical margins in the first half of
the year.
At 4.0 million tons, 2003 international sales reached a record
high, climbing 13.6% against the previous year, with a notable
increase in methanol and urea sales.
Investments in the Chemical division in 2003 fell 9% versus 2002,
reaching Eu81 million, with most of this amount spent in
upgrading existing units.
Gas & Power: 13% sales growth
2003 operating income in the Repsol YPF Gas & Power area was
Eu212 million versus Eu633 million in the previous year. These
two aggregates, however, are not comparable since 2002 results up
to May included 100% of Gas Natural SDG operating income. This
cutback was also attributable to the partial de-consolidation of
Enagas in Gas Natural SDG since July 2002, the changes introduced
in the remuneration regime for this business area in Spain in
February 2002, and the reclassification of results from several
affiliates.
Activities in this area in 2003 reflected sustained growth in
natural gas sales which rose 12.9% on the year reaching 30.34
bcm. The customer base in this period increased by 625,000.
Investments in Gas & Power in 2003 were Eu511 million, 26.4%
lower year-on-year, mainly because of the previously mentioned
changes in the consolidation method, the effect of which was
partly offset by the aforementioned acquisition of shares in the
company, raising the total stake to 27.147% at 31 December 2003.
SIPAS: Seeks Court Permission to Reorganize
-------------------------------------------
Judge Ferrario of Buenos Aires Court No. 6 is studying a petition
for reorganization filed by local medical services company SIPAS
S.A., relates Argentine newspaper La Nacion. Clerk No. 12, Dr.
Mendez Sarmiento assists the court on the case.
Documents submitted to the court indicate that the Company
stopped making debt payments on October 31 last year. The source,
however, did not indicate whether the court is likely to approve
the "Concurso Preventivo" motion.
CONTACT: SIPAS S.A.
Ave Cordoba 875
Buenos Aires
SUAVECITOS: Individual Reports Due Today
-----------------------------------------
Buenos Aires Court No. 5 requires the receiver for Suavecitos
S.A. to file the individual reports on the Company's bankruptcy
today. The receiver, Mr. Jose Andres Sabuqui, prepared the
reports after the credit verification process was completed late
last year.
The general report, which is prepared after the individual
reports are processed at court, must be filed on May 11 next
year. The informative assembly will then be held on October 18,
2004.
Clerk No. 9 aids the court on the case, according to an earlier
report by the Troubled Company Reporter - Latin America.
CONTACT: Jose Andres Sabuqui
Bernardo de Irigoyen 330
Buenos Aires
TELECOM ARGENTINA: Shareholders Approve New Corporate Name
----------------------------------------------------------
Summary of Resolutions Adopted by the Ordinary and Extraordinary
Shareholders' Meeting held on February 18, 2004. The meeting was
attended by 13 shareholders, 5 in person and 8 by proxy, holding
an aggregate number of 636,818,534 shares entitled to the same
number of votes and representing 64.69% of the outstanding
capital stock and voting power.
The following resolutions were passed after each one of the items
on the agenda for the shareholders' meeting were raised for
consideration:
1.) Appointment of two shareholders to approve and sign the
Minutes.
Mr. Jose Gustavo Pozzi, a representative of Nortel Inversora
S.A., and Mr. Fernando Ledesma Padilla, a representative of
Morgan Guaranty Trust, as Depositary of the ADRs of the Company,
were appointed to approve and sign the minutes of this
shareholders' meeting.
2.) Ratification of the actions undertaken by the Supervisory
Committee in respect of the appointment of directors and
alternate directors.
The shareholders ratified all the actions undertaken by the
Supervisory Committee in respect of the appointment of directors
and alternate directors that were made on December 19, 2003,
pursuant to section 258, 2nd paragraph, of the Argentine
Companies Law.
3.) Determination of the number of directors and alternate
directors to hold office until the next Annual Shareholders'
Meeting and appointment thereof.
The number of directors was set at six (6) and the number of
alternate directors at five (5) to hold office until the next
Annual Shareholders Meeting. The election of directors Messrs.
Jorge Brea, Franco Livini, Alberto Yamandu Messano, Raul Antonio
Miranda, Amadeo Ramon Vazquez and Gerardo Werthein and alternate
directors Messrs. Guillermo Brizuela, Osvaldo Hector Canova,
Oscar Cristianci, Marco Girardi and Adrian Werthein were ratified
for their respective positions. Some of these directors had been
appointed by the shareholders at Shareholders' Meeting of April
30, 2003, and others by the Supervisory Committee on December 19,
2003.
Messrs. Brizuela, Cristianci and Girardi, shall act,
interchangeably, as alternates for Messrs. Livini, Messano and
Vazquez, and Messrs. Canova and Adrian Werthein as alternates,
interchangeably, for Messrs. Raul A. Miranda and Gerardo
Werthein.
Messrs. Jorge Brea, Raul Antonio Miranda, Amadeo Ramon Vazquez
and Osvaldo Hector Canova, are "independent" directors and
Messrs. Franco Livini, Alberto Yamandu Messano, Gerardo Werthein,
Guillermo Brizuela, Oscar Cristianci, Marco Girardi and Adrian
Werthein are "non-independent" directors, according to the
standards set forth in section 11 of Chapter III of the Rules of
the Comision Nacional de Valores.
4.) Appointment of members and alternate members of the
Supervisory Committee to hold office until the next Annual
Regular Meeting.
Enrique Garrido and Maria Rosa Villegas Arevalo were ratified as
members and Gerardo Prieto was appointed as the third member of
the Supervisory Committee. Rafael La Porta Drago and German A.
Ferrarazzo (who shall act interchangeably as alternate members
for Mr. Garrido and Mrs. Villegas Arevalo) and Guillermo Feldberg
(who shall act as the alternate member for Mr. Prieto) were
designated as alternate members.
5.) Amendment of sections 1 and 10 of the Company's Bylaws and
inclusion of section 10 Bis. Appointment of persons in charge of
taking the steps concerning the approval and registration of the
amendments and transfer of the public offer and listing of the
securities issued by the Company due to the change of the
corporate name.
The Shareholders' Meeting approved the change of the present
corporate name to the new name "Telecom Argentina S.A." and the
corresponding amendment of section 1 of the Company's Bylaws.
The amendment of section 10 of the Bylaws (to grant two votes to
the Chairman in case of a tie vote and to clarify that the Board
of Directors may appoint any person who is not a member of the
Company's Board to fill the positions of chief executive officer
or special executive officers) and the inclusion of section 10
Bis concerning the Audit Committee were also approved.
The amendments approved by the Shareholders' Meeting are those
proposed in the draft submitted by the Board of Directors, except
for the elimination of the text included in Section 10 Bis that
stated that the majority of the members of the Audit Committee
must be independent in accordance to the criteria set by the
Comision Nacional de Valores "effective at the time of the
designation". This text was deleted because the Comision has
since commented that the independence must be determined by the
criteria "effective in all times".
=============
E C U A D O R
=============
* Moody's Raises Ecuador's Rating On Improving Debt Situation
-------------------------------------------------------------
Moody's Investors Service raised Ecuador's foreign currency
rating to Caa1 from Caa2 in light of the Andean nation's
improving debt situation, says Bloomberg News.
"Supported by the progress, albeit uneven, that has been achieved
over four years of fiscal consolidation, Ecuador's debt position
is expected to continue to improve," Moody's said in a statement.
The International Monetary Fund predicts that Ecuador's economy
will expand 5% this year, up from about 3% last year. The
inflation rate, which soared to 90% in 2000, will drop to 4.4%
from 8.2% last year, the IMF added.
Oil is the Andean nation's leading export and the second- largest
source of government income after taxes. The country defaulted on
its bonds in 1999.
Ecuador's new credit rating, which is seven levels below
investment grade, puts it on the same level as Argentina,
Nicaragua, Paraguay and Venezuela for the worst rating in South
America.
Chile, with the best rating in South America, is nine levels
higher at Baa1.
===========
M E X I C O
===========
AFIANZADORA INSURGENTES: S&P Reaffirms on CreditWatch Negative
--------------------------------------------------------------
Standard & Poor's Ratings Services said Tuesday that its 'BBB+'
long-term counterparty credit and financial strength ratings on
Afianzadora Insurgentes S.A. de C.V. (AISA) remain on CreditWatch
with negative implications.
The ratings were placed on CreditWatch on Sept. 2, 2003, because
of an important deterioration of the company's financial
condition related to the resolution of pending claims derived
from performance bonds and increased reserve requirements that
negatively affected 2003 capital and earnings, reporting losses
of Mexican pesos 624.9 million as of Dec. 31, 2003. "Ratings
remain on CreditWatch with negative implications because,
although the insurer has been able to recover collateral
guarantees covering losses, it still has to execute a large
proportion of those guarantees during first-quarter 2004," said
Standard & Poor's credit analyst Jaime Carreno. Likelihood for
generating important cash recoveries in a reasonable timeframe is
high.
As a result of poor operating performance, the capital adequacy
ratio for 2003 fell below the 100% considered minimum to support
the insurer's current ratings. Nevertheless, on Jan. 30, 2004,
AISA received from its parent company, St. Paul Cos. Inc.
(BBB+/WatchNeg/A-2), a capital infusion of $35 million that
restored Standard & Poor's capital adequacy ratio back to levels
considered strong (164%).
Although the prospective financial strength of the insurer
improved as per the additional capital infusion, losses had a
significant impact on AISA's long-term financial strength, so
assessment of the progress made in recovering and cashing in
collateral during first-quarter 2004 will be key for defining a
final rating action. If odds for converting recoveries scheduled
for first-quarter 2004 into cash are not significant, a negative
rating action is likely to occur. Otherwise, ratings could be
affirmed
ANALYST: Jaime Carreno, Mexico City (52) 55-5081-4417
Ursula M Wilhelm, Mexico City (52) 55-5081-4407
NATIONAL ENERGY: TransCanada Agrees to Acquire GTN
--------------------------------------------------
National Energy & Gas Transmission, Inc. (NEGT) and TransCanada
Corporation announced Tuesday an agreement for TransCanada to
acquire Gas Transmission Northwest Corporation (GTN) for US$1.703
billion, including US$500 million of assumed debt and subject to
typical closing adjustments.
GTN is a natural gas pipeline company that owns and operates two
pipeline systems - the Gas Transmission Northwest pipeline
system, formerly known as Pacific Gas Transmission, and the North
Baja Pipeline system.
The Gas Transmission Northwest pipeline system consists of more
than 1,350 miles (2,174 kilometres) of pipeline extending from a
point near Kingsgate, British Columbia, on the British Columbia-
Idaho border, to a point near Malin, Oregon on the Oregon-
California border. The natural gas transported on this pipeline
originates primarily from supplies in Canada for customers
located in the Pacific Northwest, Nevada and California.
The North Baja pipeline is an 80-mile (128-kilometre) system. It
extends from a point near Ehrenberg, Arizona to a point near
Ogilby, California on the California-Baja California, Mexico
border. The natural gas transported on this system comes
primarily from supplies in the south-western United States for
markets in Northern Baja California, Mexico. The sale of the
North Baja pipeline is subject to a right of first refusal by
another company.
NEGT voluntarily filed for protection under Chapter 11 of the
U.S. Bankruptcy Code in July 2003. As a result, the sale of GTN
to TransCanada will be subject to bankruptcy court approval, and
will include a court-sanctioned auction process in accordance
with customary bidding procedures approved by the bankruptcy
court. Under a court-sanctioned auction, NEGT will seek offers
that are higher or otherwise better than that which has been
negotiated with TransCanada. As part of its agreement,
TransCanada is granted certain protections, subject to court
approval, most notably a break fee and expense reimbursement if
another bid is accepted. TransCanada also retains the right to
amend its offer should NEGT receive an offer which is superior to
its existing agreement with TransCanada. The agreement
contemplates that final bankruptcy court approval of the sale
will be obtained within 75 days after signing of the agreement.
The agreement also contemplates bankruptcy court approval of the
NEGT Plan of Reorganization. Approval of NEGT's Plan could occur
at a date later than the receipt of court approval of the sale.
The sale is also subject to anti-trust review.
TransCanada will finance the acquisition in a manner consistent
with maintaining its solid financial position and credit ratings.
In addition to its strong internally generated cash flow and $1.5
billion of committed credit lines, TransCanada has $1.35 billion
and US$650 million of debt and/or equity issuance capacity
remaining under its Canadian and U.S. shelf prospectuses,
respectively. TransCanada may also consider the sale of certain
assets within its existing portfolio. TransCanada expects the
transaction to be accretive to earnings and cash flow.
Lazard served as financial advisor to NEGT in connection with
this agreement. J.P. Morgan Securities Inc. and SG Barr Devlin, a
division of Societe Generale, served as financial advisors to
TransCanada.
A map and fact sheet about the Gas Transmission Northwest
pipeline system and the North Baja Pipeline system is available
on the Internet at www.gtn.negt.com, www.northbaja.negt.com and
www.transcanada.com.
In addition to the pipeline businesses, NEGT has more than 7,300
megawatts of generation including a mix of natural gas, coal/oil,
hydroelectric, waste coal and wind power at numerous facilities
across the country.
TransCanada is a leading North American energy company.
TransCanada is focused on natural gas transmission and power
services with employees who are expert in these businesses.
TransCanada's network of approximately 39,000 kilometres (24,200
miles) of pipeline transports the majority of Western Canada's
natural gas production to the fastest growing markets in Canada
and the United States. TransCanada owns, controls or is
constructing nearly 4,700 megawatts of power - an equal amount of
power can meet the needs of about 4.7 million average households.
TransCanada's common shares trade under the symbol TRP on the
Toronto and New York stock exchanges.
CONTACT: Media Inquiries:
Hejdi Feick / Kurt Kadatz
(403) 920-7859
NEGT Natalie Wymer
(301) 280-5654
Investor & Analyst Inquiries:
David Moneta / Debbie Stein
(403) 920-7911
PARMALAT DE MEXICO: Citigroup Unfreezes Accounts
------------------------------------------------
Citigroup Inc., agreed Tuesday to free up the frozen accounts of
Parmalat de Mexico, paving the way for the latter to resume its
normal operations. U.S.-based financial giant Citigroup, via its
Mexican arm Banamex, had frozen the accounts of Parmalat de
Mexico a few days ago, putting a cash crunch on the Company and
threatening its future in the country.
But the Company said Tuesday that it negotiated release of the
accounts.
"Parmalat Mexico starts now a reorganization period that will
allow it to resume its commercial operations gradually," the
Company said in a statement.
TV AZTECA: Reports Mixed Results for FY 2003; Slightly Better
-------------------------------------------------------------
- Net Sales Increase 12% in 4Q03 and 5% in Year, to All-Time
Records -
TV Azteca, S.A. de C.V. (NYSE: TZA; BMV: TVAZTCA), one of the two
largest producers of Spanish language television programming in
the world, announced on Tuesday all-time high fourth quarter net
sales of Ps.2,296 million (US$204 million), up 12% from the same
period of 2002. Fourth quarter EBITDA was Ps.1,163 million
(US$104 million), 7% below the same quarter a year ago. On a
proforma basis, excluding a non-recurring cancellation of
amortization of exhibition rights for Ps.97 million (US$9
million) in the fourth quarter of the prior year, EBITDA was up
1%. EBITDA margin for the quarter was 51%.
Net sales for the full year rose 5% to an all-time record level
of Ps.7,281 million (US$648 million). Full year EBITDA increased
1% to Ps.3,376 million (US$301 million), the highest level in six
years. EBITDA margin for 2003 was 46%.
"Solid operating results together with the implementation of the
company's six year plan for uses of cash further strengthened our
financial position during the quarter," said Pedro Padilla, Chief
Executive Officer of TV Azteca. "We are fully committed to
continue with our cash plan, with the consequential benefit for
all of our stakeholders."
The company noted the cash usage plan entails reducing TV
Azteca's debt by approximately US$250 million, and making cash
distributions to shareholders above US$500 million by 2008.
Fourth Quarter Results
Net sales grew 12% to an all-time high level of Ps.2,296 million
(US$204 million), up from Ps.2,054 million (US$183 million) for
the same quarter of 2002. Total costs and expenses rose 42% to
Ps.1,133 million (US$101 million), from Ps.800 million (US$71
million) for the same period of last year. As a result, the
company reported EBITDA of Ps.1,163 million (US$104 million), 7%
lower than Ps.1,254 million (US$112 million) in the fourth
quarter of 2002. Net income for the quarter was Ps.595 million
(US$53 million) compared with net income of Ps.745 million (US$66
million) for the same period of 2002.
Millions of pesos(1) and dollars(2) except percentages and per
share amounts.
4Q 2002 4Q 2003 Change
US$ %
Net Sales
Pesos Ps. 2,054 Ps. 2,296
US$ US$ 183 US$ 204 22 +12%
EBITDA(3)
Pesos Ps. 1,254 Ps. 1,163
US$ US$ 112 US$ 104 (8) -7%
Net Income
Pesos Ps. 745 Ps. 595
US$ US$ 66 US$ 53 (13) -20%
Income per ADS(4)
Pesos Ps. 3.90 Ps. 3.12
US$ US$ 0.35 US$ 0.28 (0.07) -20%
1 Pesos of constant purchasing power as of December 31, 2003.
2 Conversion based on the exchange rate of Ps.11.23 per US dollar
as of December 31, 2003.
3 EBITDA is Profit Before Depreciation and Amortization under
Mexican GAAP.
4 Calculated based on 191 million ADSs outstanding as of December
31, 2003
Net Sales
"We experienced acceleration of domestic demand for advertising
since the very beginning of the quarter, and captured selling
opportunities coming from various economic sectors," said Mario
San Roman, Chief Operating Officer of TV Azteca. "We have
witnessed solid commercial performance of many of our client's
brands, consistent with improvements in the Mexican economy."
Fourth quarter net revenue includes sales from Azteca America
Network of Ps.76 million (US$7 million). Revenue is composed of
Ps.43 million (US$4 million) in sales from the Los Angeles
station KAZA-TV, and Ps.33 million (US$3 million) from network
sales.
During the quarter, TV Azteca also reported sales of programming
abroad of Ps.23 million (US$2 million), which was 53% above the
Ps.15 million (US$1 million) of the fourth quarter of the prior
year. Growth in programming exports was principally driven by
sales of our novela La Hija del Jardinero in certain markets of
Asia, and our novelas Subete a mi Moto and Dos Chicos de Cuidado
in Latin American countries.
During the fourth quarter, TV Azteca reported content and
advertising sales to Todito.com of Ps.54 million (US$5 million),
and Ps.35 million (US$3 million) in advertising sales to Unefon.
In the fourth quarter of 2002, sales to Todito and Unefon were
Ps.66 million (US$6 million) and Ps.35 million (US$3 million),
respectively.
In accordance with the terms of the advertising contract between
Unefon and TV Azteca, during the fourth quarter Unefon paid to TV
Azteca in cash the Ps.29 million (US$3 million) of advertising
purchases placed within the prior three month period.
Additionally, Unefon paid Ps.63 million (US$6 million) in cash,
which correspond to the second of four semi-annual installments
of deferred payments for television advertising made prior to
2003.
During the quarter, barter sales were Ps.101 million (US$9
million), compared with Ps.45 million (US$4 million) in the same
period of the prior year. Inflation adjustment of advertising
advances was Ps.45 million (US$4 million), compared with Ps.66
million (US$6 million) of the fourth quarter of 2002.
Costs and Expenses
The 42% increase in fourth quarter costs and expenses resulted
from the combined effect of a 64% increase in programming,
production and transmission costs to Ps.859 million (US$76
million), from Ps.524 million (US$47 million) in the prior year
period, and a 1% reduction in administration and selling expense
to Ps.274 million (US$24 million), from Ps.276 million (US$25
million) in the same quarter a year ago.
On a proforma basis, excluding a non-recurring cancellation of
amortization of exhibition rights for Ps.97 million (US$9
million) in the fourth quarter of the prior year, total costs and
expenses grew 26%.
"In addition to the cancellation of amortization, we had a tough
yardstick for costs with the fourth quarter of 2002," added Mr.
San Roman. "A year ago we substituted a prime-time novela with La
Academia, our musical reality show, after the costs of its
rehearsal and production facilities had already been amortized in
the prior quarter, resulting in overall reduced costs."
The company noted the programming grid of its flagship channel in
the fourth quarter of 2003 contained a standard weekday primetime
lineup that included three novelas. TV Azteca's programming also
incorporated the company's reality show Escuela de Estrellas. In
contrast, in the fourth quarter a year ago, TV Azteca aired only
two primetime novelas, and La Academia, with its associated
facilities fully amortized in the third quarter of 2002.
The company also noted that the operations of the Los Angeles
station and the growing business of Azteca America Network
generated production costs during the quarter, which were not
present in the same period of 2002.
EBITDA and Net Income
The 12% increase in fourth quarter net sales, combined with the
42% growth in costs and expenses, resulted in EBITDA of Ps.1,163
million (US$104 million), down 7% from Ps.1,254 million (US$112
million) a year ago. On a proforma basis, excluding the non-
recurring cancellation of amortization of exhibition rights for
Ps.97 million (US$9 million) in the fourth quarter of the prior
year, EBITDA was up 1%.
Below EBITDA, fourth quarter results were negatively impacted by
an increase in depreciation and amortization to Ps.111 million
(US$10 million), from a positive figure of Ps.5 million (US$0
million) a year ago. The change is primarily explained by a
positive figure for amortization of Ps.86 million (US$8 million)
in the fourth quarter of the prior year, resulting from a
reversal in accumulated amortization of the first nine months of
2002, reflecting changes in the valuation of television
concession in accordance with Mexican GAAP bulleting C-8, as was
previously detailed.
During the quarter, the company also recorded other expense of
Ps.168 million (US$15 million), compared with Ps.178 million
(US$16 million) a year ago. Other expense for the quarter was
primarily composed of Ps.69 million (US$6 million) of
amortization of installation charges, Ps.27 million (US$2
million) from the recognition of 50% of the net loss of
Todito.com in TV Azteca's financial statements, Ps.26 million
(US$2 million) of advisory fees, Ps.26 million (US$2 million)
from amortizations of brands and patents, and Ps.19 million (US$2
million) of charitable donations.
Fourth quarter net comprehensive financing cost increased to
Ps.238 million (US$21 million), from Ps.192 million (US$17
million) for the same period of 2002. The increase mainly results
from the combined effect of a Ps.55 million (US$5 million)
exchange loss during the quarter compared with an exchange gain
of Ps.25 million (US$2 million) a year ago, and of a Ps.27
million (US$2 million) reduction in monetary loss. The exchange
loss reflects a net dollar liability position of the company,
whereas the exchange gain results from increases in accounts
receivable from Pappas Telecasting in the prior year. The
reduction in monetary loss is explained by a decrease in TV
Azteca's net asset monetary position.
Fourth quarter net income was Ps.595 million (US$53 million),
compared with net income of Ps.745 million (US$66 million) for
the same period of 2002.
Advertising Advances
The balance of advertising advances as of December 31, 2003,
excluding advance sales to Unefon and Todito, rose 6% to Ps.4,903
(US$437 million), compared with Ps.4,623 million (US$412 million)
in the prior year.
The company considers the advertising advances level to be a vote
of confidence from advertisers in regard to the ability of TV
Azteca's proven content to reach target audiences.
Generation and Uses of Cash
The company noted its sound financial results in 2003 translated
into free-cash generation for the year-before debt payment and
distributions to shareholders-of Ps.1,458 million (US$130
million), which surpassed its target of US$125 million for 2003.
Adhering to the timetable of the company's plan for uses of cash,
TV Azteca made cash distributions of US$140 million during 2003,
and on February 2004 used US$60 million of its cash position to
amortize its US$125 million 101/8% note due February 15, 2004.
Growth in Azteca America
Azteca America Network increased its over-the-air coverage to 73%
of the U.S. Hispanic households from 67% at the close of the
prior quarter, with no associated equity investment from TV
Azteca.
With this quarter's affiliations in Dallas and Corpus Christi,
TX; Denver, CO and Yakima-Pascoe-Richland, WA, Azteca America
Network has coverage in 33 markets, and reaches 13 of the top 15
Hispanic market areas. Cable carriage is present in twelve
markets, which are equivalent to 30% of U.S. Hispanic households.
During the quarter, some of Azteca America Network's affiliates
reached agreements with DirecTV to have their signal carried on
DirecTV's system. On January 7, 2004, the DirecTV system started
to transmit the signal of the network's affiliate stations of New
York, Miami and Las Vegas.
Unefon Split off
On December 19, 2003, TV Azteca shareholders approved a split off
of the company's 46.5% equity stake in Unefon (BMV: UNEFON) and
of its 50% equity stake in Cosmofrecuencias, a wireless broadband
Internet access provider. The telecommunications assets formed
Unefon Holdings, which on December 22 became a legal Mexican
entity (Sociedad Anonima) independent from TV Azteca.
From the perspective of TV Azteca's balance sheet, the split off
entailed a reduction of TV Azteca's assets and stockholders'
equity equal to the book value of TV Azteca's investment in
Unefon and Cosmofrecuencias, which totaled Ps.629 million (US$56
million) as of December 31, 2003.
The split off of the telecom investments did not have an impact
on TV Azteca's income statement.
Payment of US$125 Million 101/8% Note due 2004
On February 9, 2004, TV Azteca fully amortized its US$125 million
101/8% note due February 15, 2004. As previously detailed, the
payment was composed of US$60 million from TV Azteca's cash
position and US$65 million of unsecured financing obtained from
financial institutions, on market terms.
On a proforma basis, including the US$125 million amortization,
TV Azteca's total debt as of December 31, 2003 was US$544
million, which results into a total debt to EBITDA ratio of 1.8
times.
Sale of Station in El Salvador
During the fourth quarter, TV Azteca sold its majority equity
stake in Channel 12 of El Salvador for US$6 million.
"We focus on developing highly profitable businesses, and the
station in El Salvador was at the lower end of contribution to
overall results," said Carlos Hesles, Chief Financial Officer of
TV Azteca. Additionally, TV Azteca considers Channel 12's growth
prospects were limited by a relatively small market scale.
The company expects Channel 12 to be a buyer of TV Azteca's
programming going forward, given that viewers in El Salvador have
enjoyed Azteca entertainment since the initial company investment
in 1997.
Twelve Month Results
Net sales for the full year rose 5% to an all-time high level of
Ps.7,281 million (US$648 million), up from Ps.6,956 million
(US$619 million) for 2002. Full year EBITDA increased 1% to a
six-year record of Ps.3,376 million (US$301 million), from
Ps.3,332 million (US$297 million) for last year. The EBITDA
margin for 2003 was 46%. Net earnings were Ps.1,576 million
(US$140 million), compared with Ps.1,024 million (US$91 million)
in 2002.
Millions of pesos(1) and dollars(2) except percentages and per
share amounts.
2002 2003 Change
US$ %
Net Sales
Pesos Ps. 6,956 Ps. 7,281
US$ US$ 619 US$ 648 29 +5%
EBITDA(3)
Pesos Ps. 3,332 Ps. 3,376
US$ US$ 297 US$ 301 4 +1%
Net Income
Pesos Ps. 1,024 Ps. 1,576
US$ US$ 91 US$ 140 49 54%
Income per ADS(4)
Pesos Ps. 5.36 Ps. 8.25
US$ US$ 0.48 US$ 0.73 0.25 54%
1 Pesos of constant purchasing power as of December 31, 2003.
2 Conversion based on the exchange rate of Ps.11.23 per US dollar
as of December 31, 2003.
3 EBITDA is Profit Before Depreciation and Amortization under
Mexican GAAP.
4 Calculated based on 191 million ADSs outstanding as of December
31, 2003
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.
To see financial statements:
http://bankrupt.com/misc/TV_AZTECA.htm
=======
P E R U
=======
* IMF Final Review of Peru's Stand-By Arrangement Favorable
-----------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
completed Tuesday the fourth and last review of Peru's
performance under a two-year, SDR 255 million (about US$380
million) Stand-By Arrangement that was approved on February 1,
2002 (see Press Release No. 02/6). This decision enables the
release of SDR 27.87 million (about US$41 million) to Peru, which
brings the total amount available to SDR 255 million (about
US$380 million). The country has not made any drawings under the
arrangement nor intends to do so.
In completing the review, the Executive Board also approved
Peru's request to waive the nonobservance of the end of December
2003 performance criterion related to the contracting or
guaranteeing of nonconcessional external public debt.
Following the Executive Board review of Peru, Agustin Carstens,
Deputy Managing Director and Acting Chairman, said:
"Peru's economic performance under the 2002-03 program has been
favorable. Real GDP growth averaged 4.5 percent, with inflation
in the low single digits and a robust external position. The
outlook for 2004 and the medium term is favorable, supported by
the authorities' commitment to continue to implement prudent
macroeconomic policies and structural reforms. Their efforts to
maintain broad domestic consensus on key reforms will help
support continued growth with low inflation, while ensuring debt
sustainability and further progress on de-dollarization.
"Fiscal consolidation is a key element of the authorities' medium
term strategy. In 2003, the fiscal deficit was reduced to 1.9
percent of GDP as programmed, and the medium-term objective of
limiting the deficit to no more than one percent of GDP will set
the public debt-to-GDP ratio on a firm downward path.
"Monetary policy under the inflation targeting framework has
succeeded in meeting the target, with an annual inflation rate
converging to 2.5 percent. The authorities' goal of further
raising official reserves is appropriate, in view of the still
relatively high public debt and dollarization, and it will be
important to pursue this goal in a transparent manner that allows
appropriate exchange rate flexibility.
"Progress was made with the structural agenda under the program.
The recent framework law provides a sound basis for the fiscal
decentralization process. It will now be important to follow
through with additional legislation on the assignation of
expenditure responsibilities to subnational governments, and with
careful implementation to ensure broad fiscal neutrality. While
many improvements have been introduced to the tax system, work
should continue to broaden the consensus for the elimination of
regional and sectoral tax exemptions, and the impact of the
financial transaction tax will need to be monitored closely.
"Continued improvements in the prudential framework are helping
to reduce the risks associated with the high degree of financial
dollarization. Welcome steps in this regard are the new
regulations related to managing the risks of dollar lending, and
the plan to grant bank supervisors appropriate legal protection
in the discharge of their duties.
"The authorities' strategy rightly focuses on continued fiscal
consolidation, de-dollarization, reforms of government
operations, labor markets, the judicial system, and trade
openness. The plans to improve public infrastructure, including
through greater private sector participation, are also
appropriate. Implementation of these reforms and continued
prudent macroeconomic management will provide the foundation for
sustained high growth, employment creation and poverty
reduction," Mr. Carstens stated.
CONTACT: INTERNATIONAL MONETARY FUND
700 19th Street, NW
Washington, D.C. 20431 USA
IMF EXTERNAL RELATIONS DEPARTMENT
Public Affairs
Phone: 202-623-7300
Fax: 202-623-6278
Media Relations
Phone: 202-623-7100
Fax: 202-623-6772
=====================
P U E R T O R I C O
=====================
CENTENNIAL COMMUNICATIONS: Announces New Director
-------------------------------------------------
Centennial Communications Corp. (NASDAQ:CYCL) ("Centennial")
announced Tuesday that Lawrence H. Guffey, a senior managing
director of the Blackstone Group, has resigned from Centennial's
board of directors. Robert D. Reid, a principal of the Blackstone
Group, has been named to serve the remainder of Mr. Guffey's
term. Mr. Reid previously served as a director of Centennial from
March 2001 to July 2001 and has been affiliated with Blackstone
since 1998.
"On behalf of our management team, I would like to thank Larry
for his many contributions to Centennial," said Michael J. Small,
Chief Executive Officer. "I am delighted to welcome Robert back
to the Centennial board."
About Centennial
Centennial is one of the largest independent wireless
telecommunications service providers in the United States and the
Caribbean with approximately 17.3 million Net Pops and
approximately 997,200 wireless subscribers. Centennial's U.S.
operations have approximately 6.1 million Net Pops in small
cities and rural areas. Centennial's Caribbean integrated
communications operation owns and operates wireless licenses for
approximately 11.2 million Net Pops in Puerto Rico, the Dominican
Republic and the U.S. Virgin Islands, and provides voice, data,
video and Internet services on broadband networks in the region.
Welsh, Carson Anderson & Stowe and an affiliate of the Blackstone
Group are controlling shareholders of Centennial. More
information regarding Centennial is available at the following
websites: www.centennialwireless.com, www.centennialpr.com and
www.centennialrd.com.
CONTACT: CENTENNIAL COMMUNICATIONS CORP., WALL
Eric S. Weinstein
732-556-2220
***********
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.
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