/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040305.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 Friday, March 5, 2004, Vol. 5, Issue 46 Headlines A R G E N T I N A AVICOLA SAN CAYETANO: Credit Verification Period Ends BACK SWING: Court Closes Credit Review for Reorganization CABLEVISION: S&P Comments on Debt Restructuring Progress GIVENS: Court Declares Company Bankrupt JUNCAL AUTOMOTORES: Individual Reports Due at Court Today KONTECNICA: Receiver Prepares Individual Reports LIVE TEX: Credit Review for Bankruptcy Ends Today MANDATARIA DE SALUD: Court Closes Credit Verifications MASAY: Court Orders Receiver To File Individual Reports MEMBRILLAR: Individual Reports Filing Deadline Expires NORFINA SOCIEDAD: Receiver Prepares Individual Reports PET SUPPLIES: Credit Review in Reorganization Ends Today SALUD CONTEMPORANEA: Credit Check in Reorganization Ends SINDELAR: Files Petition For Reorganization TELEFONICA DE ARGENTINA: Deloitte Casts Doubt on Viability TRANSPORTE AUTOMOTOR: Credit Review Ends Today ZUZEPAR: Receiver Closes Credit Verifications for Bankruptcy B E R M U D A BERMUDA FIRE: Issues Meetings Notice B R A Z I L BANCO PACTUAL: Assigns, Affirms Ratings CMS ENERGY: Four Companies Competing for CPEE PARMALAT BRASIL: Court Returns Control to Parent Company TELEMAR: Sets Initial Payment Date For Dividend, Interest on Cap C H I L E PARMALAT CHILE: Seeks Protection from Creditors C O L O M B I A PAZ DEL RIO: Reports Higher Steel Sales in 2003 PAZ DEL RIO: Wants A Brand New Continuous Caster E C U A D O R PETROECUADOR: Engineers Will Replace Ousted VPs J A M A I C A KAISER ALUMINUM: Bankruptcy Court Postpones Alpart Sale Hearing M E X I C O EMPRESAS ICA: Fitch Upgrades to 'CCC'; Withdraws Ratings XIGNUX: Announces Expiration of Proxy Payment for Its Notes - - - - - - - - ================= A R G E N T I N A ================= AVICOLA SAN CAYETANO: Credit Verification Period Ends ----------------------------------------------------- The credit verification process for the reorganization of Avicola San Cayetano S.R.L., ends today. The Company's receiver, Mr. Miguel Angel Troisi, will prepare the individual reports on the verification results. Buenos Aires Court No. 17 also requires the receiver to prepare a general report after it processed the individual reports. CONTACT: Avicola San Cayetano S.R.L. Ave Cordoba 657 Buenos Aires Miguel Angel Troisi Cerrito 146 Buenos Aires BACK SWING: Court Closes Credit Review for Reorganization --------------------------------------------------------- Buenos Aires Court No. 16 ordered the conclusion of the credit verification process for Back Swing S.A.'s reorganization. Ms. Rosa Santos, the Company's receiver, will prepare the individual reports on the verification results, which are to be submitted to court on April 21. She will also be responsible for the general report to be filed on the following June 3. The informative assembly, to be held on February 16, 2005, will signal the conclusion of the reorganization process. CONTACT: Rosa Santos Ave Corrientes 6031 Buenos Aires CABLEVISION: S&P Comments on Debt Restructuring Progress -------------------------------------------------------- CableVision S.A., the largest Argentine cable operator, announced Wednesday that it had reached an agreement with the required majority of its creditors to restructure US$796 million in debt (excluding past due interest) under the context of an out-of-court agreement, or "Acuerdo Preventivo Extrajudicial" (APE). Standard & Poor's Ratings Services said that the announcement will not affect CableVision's rating. The company must now present the plan to the Argentine Courts for endorsement and go through other stages to complete the restructuring process. CableVision's final restructuring proposal, which has been changed from the one presented in September 2003, includes four options: seven-year non-par amortizing bonds; 10-year par amortizing notes; equity (up to a stake of 20% after the restructuring); and a cash tender with a 60% discount for up to $114.4 million. The cash tender will be partially funded by a $55 million capital infusion from certain affiliates of Hicks, Muse, Tate & Furst Inc., which owns 50% of the equity of CableVision and Liberty Media International Inc., which owns 78.2% of the economic rights for VLG Argentina (which has the other 50% of the equity). Standard & Poor's will reassess the rating once the restructuring process is concluded. ANALYST: Ivana Recalde Buenos Aires Phone: (54) 114-891-2127 Marta Castelli Buenos Aires Phone: (54) 114-891-2128 GIVENS: Court Declares Company Bankrupt --------------------------------------- Givens S.A. entered bankruptcy on orders from Judge Ojea Quintana of Buenos Aires Court No. 12. The ruling comes on approval of the petition filed by System Corp S.R.L. after the Company failed to meet financial obligations. A report by Argentine newspaper La Nacion said that local accountant Ms. Susana Santorsola was assigned as receiver for the case. Proofs of claim should be presented to the receiver for verification before May 3. Verification results will be forwarded to the court via the individual reports. CONTACT: Givens S.A. Ave Santa Fe 879 Buenos Aires Susana Santorsola Marcelo Torcuato de Alvear 1364 Buenos Aires JUNCAL AUTOMOTORES: Individual Reports Due at Court Today --------------------------------------------------------- The individual reports on the bankruptcy of Argentine company Juncal Automotores S.A. must be submitted to Buenos Aires Court No. 22 today. The Company's receiver, Mr. Ruben Eduardo Calcagno, prepared the reports after the credit verification process was closed. After the individual reports are processed in court, the receiver will consolidate these into a general report to be filed in court on April 20. The city's Clerk No. 43 assists the court on the case, which will end with the liquidation of the Company's assets to reimburse creditors. CONTACT: Ruben Eduardo Calcagno Pieres 161 Buenos Aires KONTECNICA: Receiver Prepares Individual Reports ------------------------------------------------ Mr. Jose Nullo, receiver for Argentine construction and real estate company Kontecnica S.R.L., will prepare the individual reports on the Company's bankruptcy. The credit verification period ends today. The Company entered bankruptcy after Buenos Aires Court No. 17, under Judge Bavastro, approved the bankruptcy petition filed by the Company's receiver, Mancia S.A., on the Company's failure to pay its debts. CONTACT: Kontecnica S.R.L. 1st Floor, Office A Arenales 2708 Buenos Aires Jose Nullo 2nd Floor, Office F Suipacha 612 Buenos Aires LIVE TEX: Credit Review for Bankruptcy Ends Today ------------------------------------------------- The credit verification period for the bankruptcy of Buenos Aires-based Live Tex S.R.L. ends today. Buenos Aires Court No. 21 ordered the Company's receiver, Mr. Jorge Edmundo Sahade, to prepare the individual reports and submit these to the court on April 16. The receiver will also prepare a general report, to be filed on May 31 after the individual reports are processed at court. CONTACT: Live Tex S.R.L. Azcuenaga 497 Buenos Aires Jorge Edmundo Sahade Ave de Mayo 1324 Buenos Aires MANDATARIA DE SALUD: Court Closes Credit Verifications ------------------------------------------------------ Court No. 2 of Buenos Aires ordered Mr. Mauricio Mudric, the receiver assigned to oversee the bankruptcy of local company Mandataria de Salud S.A., to close the credit verifications today. Creditors' claims were checked to determine the nature and amount of the Company's debts. The receiver is also required to prepare the individual and general reports. CONTACT: Mauricio Mudric Tucuman 893 Buenos Aires MASAY: Court Orders Receiver To File Individual Reports ------------------------------------------------------- Buenos Aires Court No. 6 requires the receiver for local company Masay S.A. to file the individual reports on the Company's bankruptcy today. The receiver, Mr. Luis Benedossi, prepared the reports after the credit verification process was completed. The receiver will also prepare a general report after the individual reports are processed in court. CONTACT: Luis Benedossi Maipu 812 Buenos Aires MEMBRILLAR: Individual Reports Filing Deadline Expires ------------------------------------------------------ Buenos Aires Court No. 20 ordered the receiver for Membrillar 66 S.R.L. to file the individual reports on the Company's bankruptcy today. The receiver, Mr. Luis Maria Rementeria, prepared the reports, which contain the credit verification results. After the individual reports are processed in court, the receiver will prepare a general report, which is due on April 21. The bankruptcy process will end with the liquidation of the Company's assets afterwards. CONTACT: Luis Maria Rementeria Piedras 1319 Buenos Aires NORFINA SOCIEDAD: Receiver Prepares Individual Reports ------------------------------------------------------ The bankruptcy of local company Norfina Sociedad de Bolsa S.A. proceeds with its receiver, Miryam Lewenbaum, preparing the individual reports as the credit verification period is set to end today. The receiver will also prepare a general report after the individual reports are processed in court. Judge Gutierrez Cabello of Buenos Aires Court No. 6 and Clerk No. 12, Dr. Mendez Sarmiento, handle the Company's case, which will close with the liquidation of the Company's assets to repay creditors. CONTACT: Norfina Sociedad de Bolsa S.A. Reconquista 520 Buenos Aires Miryam Lewenbaum 11th Floor, Office 1102 Montevideo 666 Buenos Aires PET SUPPLIES: Credit Review in Reorganization Ends Today -------------------------------------------------------- Creditors of Pet Supplies International S.A. must have their claims authenticated by its receiver, Mr. Fernando Ezequiel Aquilino as the credit verification process ends today. Buenos Aires Court No. 2 ordered the receiver to prepare the individual reports to be filed on April 27. The general report, a consolidation of the information in the individual reports, must be submitted to court on June 2. Working with Clerk No. 4, the court decided that the informative assembly will be held on November 10, 2004, said the Troubled Company Reporter - Latin America in an earlier report. The meeting will signal the conclusion of the reorganization process. CONTACT: Fernando Ezequiel Aquilino Lavalle 1459 Buenos Aires SALUD CONTEMPORANEA: Credit Check in Reorganization Ends -------------------------------------------------------- Argentine accountant Francisco Jose Granja, receiver for the reorganization of Salud Contemporanea S.A., ends the claims validation period today. The individual reports on the results of the verification process are due at the court on April 21 next year. The general report, a summary of the information in the individual reports, should follow on June 3. The city's Court No. 2 and Clerk No. 3 handle the Company's case. CONTACT: Salud Contemporanea S.A. Arenales 2871 Buenos Aires Francisco Jose Granja Parana 467 Buenos Aires SINDELAR: Files Petition For Reorganization ------------------------------------------- Argentine company Sindelar S.A. filed for "Concurso Preventivo" at Buenos Aires Court No. 19, which is under Judge Fernandez. Local newspaper La Nacion relates that the Company ceased making debt payments in September 2000. Clerk No. 37, Dr. Mazzoni, works with the court on the case. CONTACT: Sindelar S.A. General Mosconi 3916 Buenos Aires TELEFONICA DE ARGENTINA: Deloitte Casts Doubt on Viability ---------------------------------------------------------- Auditing firm Deloitte & Touche has again raised doubts about the capacity of Telefonica de Argentina (TASA) to continue as a going concern, Spanish paper Cinco Dias revealed Wednesday. In its report, Deloitte says it does not see any sign of improvement in TASA's finances and for the second year in a row it highlights the existence of a mismatch between assets and liabilities that jeopardizes the viability of the Company. The liabilities are ARS1.853 billion higher than the assets, according to the paper. TRANSPORTE AUTOMOTOR: Credit Review Ends Today ---------------------------------------------- Estudio Vicco y Asociados, receiver for Transporte Automotor del Milagro S.R.L., will close the credit verification process for the Company's bankruptcy today. Salta Court No. 6 recently declared the Company bankrupt. The individual reports on the verification results must be submitted to the court on April 16; the general report is due on June 2, the Troubled Company Reporter - Latin America said in an earlier report. CONTACT: Estudio Vicco y Asociados Mendoza 306 Salta ZUZEPAR: Receiver Closes Credit Verifications for Bankruptcy ------------------------------------------------------------ Mr. Angel Vello Vazquez, receiver for Zuzepar S.A., closes the credit verification process for the Company's bankruptcy today. He will prepare the individual reports, which are to be submitted to Buenos Aires Court No. 14 on April 19. The receiver will also prepare a general report and submit it to court on June 1 before the Company's assets are liquidated to repay creditors. CONTACT: Angel Vello Vazquez Viamonte 1592 Buenos Aires ============= B E R M U D A ============= BERMUDA FIRE: Issues Meetings Notice ------------------------------------ Notice is hereby given that the Bermuda Fire & Marine Insurance Company Limited (the "Company") has applied to the Supreme Court of Bermuda and to the High Court of England and Wales for directions relating to the convening and conduct of meetings (the "Meetings") of the Company's Scheme Creditors (the "Scheme Creditors"). The Meetings are proposed to be convened under Section 99 of the Bermudian Companies Act 1981 and Section 425 of the Companies Act 1986 of Great Britain for the purpose of enabling the Scheme Creditors to consider and, if thought appropriate, approve an Amending Scheme of Arrangement (the "Amending Scheme") in respect of the Company and its Scheme Creditors. Should the Amending Scheme become effective, it will amend and restate the terms of the Scheme of Arrangement presently in force in respect of the Company dated January 14, 1997 (the "Original Scheme"). The Amending Scheme will introduce a mechanism for the closure of the Original Scheme by utilization of a bar sate for submission of claims together with actuarially based estimation methodology, where appropriate, to evaluate and quantify liabilities (including contingent and future insurance and reinsurance liabilities) notified under the substantive and ultimate distribution to Scheme Creditors earlier than would be the case under the Original Scheme. At these directions hearings (the "Hearings") the Company will request that the Bermudian Court and English Court convene separate meetings of its: (i) Protected Scheme Creditors (being Scheme Creditors whose claims are eligible for protection under the applicable provisions of the Policyholders Protection Act 1975 by the Financial Services Compensation Scheme Limited); and (ii) General Scheme Creditors (being Scheme Creditors in respect of claims which are not Protected Scheme Claims) Scheme Creditors who wish to attend and make representations in connection with the Composition of the Meetings at the Hearings at 2:30 pm on April 1, 2004 in the Supreme Court of Bermuda and at 10:30 am on March 31, 2004 in the High Court of England and Wales, should contact the Liquidators as soon as possible. If the Courts give directions to convene the Meetings, the Company will, in due course, make available t all Scheme Creditors copies of the Amending Scheme and Explanatory Statement at the same time as formal notice is given of the Meetings. In the meantime, the latest drafts of those documents, the Liquidators' letter to the Scheme Creditors dated March 1, 2004 notifying Scheme Creditors of the Hearings and a more detailed notice of the Hearings, the Bermudian and English Court applications and draft Court Orders setting out the proposed directions can be downloaded from http://www.bfmic.bm. Alternatively, hard copies can be obtained from the Liquidators. In the event the Courts give leave to convene the Meetings, we would expect the bar date to be toward the end of September 2004. CONTACT: J.C. McKenna, G.H. Hughes and L.A. Joaquin BFMIC Liquidators John Stow House 18 Bevis Marks, London EC3A 7JB UK Phone: +44 (0) 20 7645 4995 Fax: +44 (0) 870 600 7582 Clifford Chance LLP 10 Upper Bank Street, London E14 5JJ, UK Appleby Suprling & Kempe Canons Court 22 Victoria Street, PO Box HM 1179 Hamilton, Bermuda =========== B R A Z I L =========== BANCO PACTUAL: Assigns, Affirms Ratings --------------------------------------- International ratings agency Fitch Ratings assigned ratings to Banco Pactual, the largest independent investment bank in Brazil. - Long-term foreign currency B+ - Long-term local currency B+ - Short-term foreign currency B - Short-term local currency B - Individual rating C/D Fitch said Pactual's individual and national ratings reflect its well-defined strategy and philosophy, which relies on experienced partners, strict risk controls and research capabilities to preserve capital while operating profitably. Simultaneously, Fitch affirmed Pactual's other ratings: - National long-term A+ - National short-term F1 - Support 5 The outlook for all long-term ratings is stable. Although operating conditions in Brazil have experienced varying degrees of volatility over the past several years, Pactual has reported steady results throughout, reflecting its "enshrined" philosophy of preserving capital while operating in the black, the agency said. Pactual's foreign and local currency ratings are at Brazil's country ceiling, reflecting a balance sheet dominated by Brazilian federal government debt instruments and the risks inherent to operating in a highly volatile market, Fitch added. CMS ENERGY: Four Companies Competing for CPEE --------------------------------------------- Three Brazilian power companies and one foreign investment fund have expressed interest in acquiring CMS Energy's 94% stake in local power distribution group CPEE, reports Business News Americas. Integrated power company Cemig (NYSE: CIG), distributors CPFL and Elektro and an unnamed foreign fund have been studying CPEE's assets, which are valued at over US$50 million. The assets include three small power distributors - Sul Paulista de Energia, Jaguari de Energia and Companhia Luz e Forca Mococa - in the state of Sao Paulo, a power service and trading company, nine small-scale hydro electric plants and a 7% stake in the Lajeado dam, which is controlled by Portugal's EDP. Citing Cemig CFO Fernando Rolla, newspaper Valor Economico reported that the Minas Gerais state-based company has already put in a bid for CPEE. CMS is selling its CPEE stake for US$85 million as part of its US$900 million international asset divestment program in order to focus on North American assets. The CPEE sale was scheduled for end-2003 but CMS decided to wait until electricity regulator Aneel granted a rate revision before going ahead with the sale. PARMALAT BRASIL: Court Returns Control to Parent Company -------------------------------------------------------- Italy's Parmalat regained control of its main Brazilian unit, Parmalat Brasil Industria de Alimentos, after a Sao Paulo judge ordered the court-appointed administrator to step down, reports Reuters. According to Thomas Felsberg, a partner at the Brazilian law firm representing Parmalat Brasil, the Company had obtained an injunction overruling a lower court ruling on Feb. 11 that brought in Keyler Carvalho Rocha to run the unit. With the injunction, Ricardo Goncalves can now return to the presidency of Parmalat Brasil, at least until an appeals court rules on the merit of the lower court's decision. "This decision clearly states that Goncalves can return to his job as president of the company, but we're still trying to determine when that will happen," Felsberg said. Goncalves was forced to give up his post when Rocha was named to run the Company last month. The press office of Parmalat Brasil said it still had not been formally notified of the injunction, adding that the Company's shareholders would likely decide at an assembly on Thursday if and when Goncalves will return to the fold. The injunction in Brazil also allows for the reinstatement of Andrea Ventura as the Company's financial director, but Felsberg said he was not sure if Ventura intended to return to his post. TELEMAR: Sets Initial Payment Date For Dividend, Interest on Cap ---------------------------------------------------------------- TELE NORTE LESTE PARTICIPACOES S.A. (NYSE: TNE), the holding company of providers of wireline and wireless telecommunications services in Brazil, announced that the General Shareholders' Meeting held on March 1st, 2004 approved an initial payment in the amount of R$ 342 million for the dividends with a local record date of March 1, 2004, and R$ 458 million for the interest on capital (IOC) with a local record date of December 30th, 2003. The distribution will be effected as of March 08, 2004, as described below: 1. Interest on Capital per common or preferred share (TNLP3/TNLP4): R$ 1.20353788020 per thousand shares, which represents R$ 1.02283030416 net of withholding tax; 2. Accrued Interest and Taxes: as decided in the aforementioned Meeting, the above mentioned interest on capital amount accrues interest based on the TR - Taxa Referencial - rate, from January 1st, 2004 until March 8th, 2004. On the corresponding amount, exclusively on the accrued interest, a 20% income tax will be applied to Brazilian shareholders. 3. Dividend per common or preferred share (TNLP3/TNLP4): R$ 0.89559284816 per thousand shares, which represents R$ 0.89557752767 net of withholding tax; 4. Accrued Interest and Taxes: as decided in the aforementioned Meeting, the above mentioned dividend amount accrues interest based on the TR - Taxa Referencial - rate, from March 2nd, 2004 until March 8th, 2004. On the corresponding amount, exclusively on the accrued interest, a 20% income tax will be applied to Brazilian shareholders. CONTACT: TNE - INVESTORS RELATIONS Roberto Terziani E-mail: terziani@telemar.com.br Tel: 55 21 3131 1208 Carlos Lacerda E-mail: carlosl@telemar.com.br Tel: 55 21 3131 1314 Fax: 55 21 3131 1155 ========= C H I L E ========= PARMALAT CHILE: Seeks Protection from Creditors ----------------------------------------------- Parmalat Chile filed for court protection from its creditors Wednesday, the latest in a chain of global Parmalat subsidiaries to embark on the measure, says Reuters. Parmalat Chile owes more than US$4 million to dairy farmers, and at least one bank lender has asked for a freeze on the Company's assets. Under Chilean law, Magistrate Juan Polanco of Santiago's 18th Civil Court has a period of several days to call a meeting of creditors and to assign a temporary outside administrator for the Parmalat Chile. The court proceedings could complicate the offer by privately held Chilean investment firm Bethia to buy a controlling stake of Parmalat Chile because the conditions of any buyout will now have to be approved by a committee of creditors. Besides Bethia, Parmalat Chile has other suitors. Businessman Max Marambio told Reuters on Wednesday that he has made an offer for one of Parmalat's plants in Chile, and some dairy farmers have also expressed interest in making a joint offer for some of Parmalat's assets. Parmalat Chile was Chile's No. 5 dairy firm last year with $45 million in sales. =============== C O L O M B I A =============== PAZ DEL RIO: Reports Higher Steel Sales in 2003 ----------------------------------------------- Colombian iron and steel maker Acerias Paz del Rio reported steel sales of US$72.4 million in 2003, up 1.3% from the previous year's US$71.4 million. The Company, according to Business News Americas, attributed better sales figures to an improved average sale price of steel, which continues to rise. Operating profit, however, dropped slightly to US$97 million in 2003 from US$117 million in 2002. The Boyaca-based company's installed capacity for liquid steel is 350,000t/y and 800,000t/y for rolled products, although the rolling plant is operating at less than half that rate. The Company is the biggest employer in Boyaca department, which partly owns the steelmaker, and has 14% market share in Colombia, contributing 30% of national steel production which last year came to 642,000t. CONTACT: ACERIAS PAZ DEL RIO S.A. Carrera 8 # 13-31, Pisos 7 al 11 Bogota, D.C. Phone: (091) 282-8111 Fax: (091) 282-6268 282-3480 E-mail: apdr@multi.net.co PAZ DEL RIO: Wants A Brand New Continuous Caster ------------------------------------------------ An Acerias Paz del Rio executive revealed that the Company's board has decided to buy a brand new continuous casting machine instead of buying a used one, relates Business News Americas. The Company is now getting quotations, the unnamed official said. The continuous caster channels the molten metal to the different moulds where it solidifies. The purchase of the continuous caster is part of the industrial conversion of Paz del Rio, which includes the acquisition of a ladle furnace and hot roller to increase production by 40%. This process will cut production costs by an average US$32/t, which would make it possible to boost production to 500,000t/y from the present 260,000t/y within 10 years. ============= E C U A D O R ============= PETROECUADOR: Engineers Will Replace Ousted VPs ----------------------------------------------- Three engineers have been appointed to replace the vice- presidents in Petroecuador's three subsidiaries who left their posts Monday on Ecuadorian President Lucio Gutierrez's order, says Business News Americas. Petroecuador's board named chemical engineers German Davalos and Cesar Enrique Cobo Alvear as acting VPs of refining subsidiary Petroindustrial and downstream subsidiary Petrocomercial, respectively. Oil engineer Fausto Jara Martinez will act as VP of upstream subsidiary Petroproduccion. Gutierrez declared Petroecuador in a state of emergency on Monday and called for all VPs at the Company and its subsidiaries to resign in order to fill their posts with technical professionals with no political loyalties. The move was designed to trim bureaucracy within the state-owned oil company and to stamp out oil theft that costs the country some US$100 million a year. Meanwhile, a Petroecuador spokesperson revealed that the Company is continuing operations as normal despite the state of emergency and change of management. "Everything is totally normal. The company keeps working because immediately there are people that step up to take charge," the spokesperson said. ============= J A M A I C A ============= KAISER ALUMINUM: Bankruptcy Court Postpones Alpart Sale Hearing --------------------------------------------------------------- A source from Kaiser Aluminum & Chemical Corp. (OTC BB: KLUCQ) revealed that a US bankruptcy court has postponed a hearing on the Company's plan to sell its 65% share in Jamaica's Alpart aluminum refinery. The Bankruptcy Court for the District of Delaware was scheduled to hear the case on Feb. 23 but deferred it to Mar. 22, Kaiser spokesperson Scott Lamb told Business News Americas. "In some instances the court can rule before the hearing and issue a decision, but I don't believe they have done that in the case of Alpart, and I probably would know," he said. As such, Houston-based Kaiser will "probably" close the sale early next quarter. Kaiser announced the deal, estimated to be worth some US$170 million, in January as part of its efforts to emerge from Chapter 11 bankruptcy protection. The Company aims to sell its share to Swiss natural resources company Glencore AG, though Hydro Aluminum, which holds the remaining 35% share in Alpart, has 30 days once the transaction is approved to buy Kaiser's interest in the refinery. "They [Hydro] still have one last opportunity to take a look at matching the terms of the transaction if they want to buy our interest," Lamb said. Kaiser Aluminum & Chemical Corporation is a leading producer of fabricated aluminum products, alumina and primary aluminum. It is the operating subsidiary of Kaiser Aluminum Corporation. CONTACT: Kaiser Aluminum Corporation 5847 San Filipe, Ste, 2500 Houston, TX 77057-3268 Phone: 713-267-3777 Fax: 713-267-3701 Home page: http://www.kaiseral.com Contact: Scott Lamb Phone: 713-332-4751 George T. Haymaker Jr., Chairman Jack A. Hockema, President & CEO John T. La Duc, EVP & CFO =========== M E X I C O =========== EMPRESAS ICA: Fitch Upgrades to 'CCC'; Withdraws Ratings -------------------------------------------------------- Fitch Ratings has upgraded the foreign and local currency ratings of Empresas ICA Sociedad Controladora, SA de CV (ICA) to 'CCC' from 'CC' and simultaneously has withdrawn the ratings. Fitch will no longer provide analytical coverage of this issuer as the company is expected to retire all of its publicly traded debt within the next two weeks. The rating action is the result of the company's recent recapitalization. In December 2003 and January 2004, ICA successfully completed an equity offering of approximately $220 million, which substantially reduces near term liquidity risk and should allow the company to meet its debt maturity of $92 million on March 15, 2004. The company remains highly leveraged with Debt to EBITDA of roughly 10x at Dec. 31, 2003 and interest coverage is weak at approximately 1x (1.6x over net interest) during 2003. These ratios are expected to show some improvement as work progresses on the El Cajon power project, as further benefits from its ongoing restructuring program are realized, and as the company adds to its construction backlog. Longer term, the company will continue to face the challenges of procuring and satisfactorily executing future infrastructure projects. ICA remains exposed to infrastructure spending in Mexico. ICA is Mexico's largest engineering, construction and procurement company in terms of revenues and assets. CONTACT: Daniel R. Kastholm, CFA Chicago Phone: +1-312-368-2070 Media Relations: James Jockle New York Phone: +1-212-908-0547 XIGNUX: Announces Expiration of Proxy Payment for Its Notes ----------------------------------------------------------- Xignux, S.A. de C.V. (formerly known as Axa, S.A. de C.V.) ("Xignux") announced Tuesday the expiration of the Proxy Payment Deadline and Withdrawal Rights Termination Deadlines pertaining to its previously announced exchange offer. In the exchange offer Xignux is offering to exchange its 91/2% Senior Guaranteed Notes due 2009 for its 9% Guaranteed Notes Due 2004 (the "Existing Notes") and is soliciting proxies from holders of the Existing Notes in favour of an extraordinary resolution to adopt certain proposed amendments to the terms and conditions of the Existing Notes and the trust deed under which the Existing Notes were issued. The expiration date for the exchange offer is midnight, New York City time, on March 12, 2004. In addition, Xignux announced that it has received valid and unrevoked tenders and proxies representing approximately 59.5% in aggregate principal amount of Existing Notes in the exchange offer. Xignux is therefore waiving the condition to the exchange offer requiring that it receive valid and unrevoked tenders and proxies representing at least 60% in aggregate outstanding principal amount of its Existing Notes. All other terms and conditions of the exchange offer and proxy solicitation remain the same. Citigroup Global Markets is the dealer manager and Global Bondholder Services Corporation is the information agent for the Exchange Offer. Requests for documentation should be directed to Global Bondholder Services Corporation at +1(212) 430-3774 (collect - for banks and brokers) and +1( 866) 470-3800 (for all others). Questions regarding the transaction should be directed to Matt Radley of Citigroup Global Markets at (800) 558-3745. CONTACT: Xignux, S.A. de C.V. Matt Radley Phone: +1-800-558-3745 *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and Oona G. Oyangoren, Editors. Copyright 2004. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is $575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *