/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040423.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, April 23, 2004, Vol. 5, Issue 80 Headlines A R G E N T I N A ALCOMAR: Informational Report Due in Court Today APSA: Corporate Bonds Get Local S&P `raBBB-' Rating CABLEVISION: S&P Comments on APE Process Status CIESA: Junk Level Unchanged on $220M Bonds CRM: S&P Assigns Default Ratings To $150M of Bonds DISCO: Local Judge Blocks Disco Sale HURD SUDAMERICA: Claims Verification Ends Today MADERA POSADAS: Receiver Prepares Individual Reports MARCOS MARTINI: Court Orders Claims Verification Wrap Up MOPAL: Court Expects Individual Reports Today OGDEN-RURAL: SRA to Sell Stake in Exhibition Center PETROBRAS ENERGIA: Announces US$100 Million Bond Issue PETROBRAS ENERGIA: Anticipates Drilling Permit By Month's End PINTURERIA PROFESIONAL: Receiver's General Report Due Today REJIAR: Court OKs Creditor's Bankruptcy Motion SAN DIEGO: Informative Assembly Slated for Today B E R M U D A TK ALUMINUM: S&P Lowers Long-Term Corporate Credit Rating to `B' B O L I V I A COTAS: Signs $7M Frame Agreement With Alvarion B R A Z I L EMBRATEL: MCI Signs Amended Sale Agreement with TELMEX EMBRATEL: MCI Provides Terms of Senior Notes C H I L E COEUR D'ALENE: Files Registration Statements; Capital Needed D O M I N I C A N R E P U B L I C * Fitch Comments on Dominican Republic's Paris Club Agreement E C U A D O R PETROECUADOR: Anticipates Drilling Contract Bids In May J A M A I C A KAISER ALUMINUM: RUSAL Successful Bidder for Alpart Interests M E X I C O GRUPO ELEKTRA: Deposits $293M Advanced Payment to Restructure GRUPO MEXICO: Reverses Course; Posts 1Q Sales, Profit Gains U R U G U A Y UTE: Combined Cycle Plant Project Attracts Four Bidders V E N E Z U E L A CANTV: Signs Capacity Agreement with New World Network PDVSA: Denies Shortages, Smuggling Enforcement Increased - - - - - - - - - ================= A R G E N T I N A ================= ALCOMAR: Informational Report Due in Court Today ------------------------------------------------ Mr. Flavio Amantovan, the court-appointed receiver overseeing the reorganization process of Mendoza company Alcomar S.R.L., is expected to submit the general report to court today, April 23, 2004. The receiver prepared this report after the individual reports, which contain the verification results were processed in court. According to an earlier report by the Troubled Company Reporter - Latin America, the Civil and Commercial Tribunal of Mendoza, which is handling the Company's case, has set August 18, 2004 as the date for the informative assembly, which is the last stage of a reorganization process. CONTACT: Flavio Amantovan Lemos 679 Mendoza APSA: Corporate Bonds Get Local S&P `raBBB-' Rating --------------------------------------------------- The Argentine branch of Standard & Poor's International Ratings assigned an `raBBB-' rating to ARS85 million worth of corporate bonds issued by Alto Palermo S.A., according to the Comision Nacional de Valores (CNV), the country's securities regulator. The bonds, which will mature on April 7, 2005, were described as "Obligaciones Negociables Simples no Convertibles en acciones" and classified under `Simple Issue.' The rating action was taken based on the Company's financial status as of the end of December 2003. Alto Palermo is the largest shopping mall operator in Argentina. CONTACT: Alto Palermo S.A. (APSA) 2/F 476 Hipolito Yrigoyen Buenos Aires Argentina Phone: +54 11 4344 4600 Home Page: http://www.altopalermo.com.ar Contacts: Eduardo Sergio Elsztain, Chairman Marcos Marcelo Mindlin , Vice Chairman Aaron Gabriel Juejati, Vice Chairman CABLEVISION: S&P Comments on APE Process Status ----------------------------------------------- CableVision S.A. (CableVision, D/--/--), the largest Argentine cable operator, recently announced that it has detected a miscalculation regarding the required majority of creditors needed to restructure its financial debt under an out-of-court agreement, or "Acuerdo Preventivo Extrajudicial"(APE). On March 3, 2004, the company announced that it had obtained the sufficient number of holders to ask for the APE endorsement by the Argentine Courts. On April 16, 2004, CableVision became aware that one of the bondholders has both given its positive vote on the APE to the exchange agent and separately subscribed to the APE under a private agreement, thus duplicating its vote. CableVision will verify the calculation of the votes and announce the results in the near term. Although the situation might generate some uncertainties regarding the timing of the approval or the endorsement of the APE in itself, CableVision's ratings are not affected because the company will remain in default until the restructuring process is concluded. ANALYSTS: Ivana Recalde, Buenos Aires (54) 114-891-2127 Pablo Lutereau, Buenos Aires (54) 114-891-2125 CIESA: Junk Level Unchanged on $220M Bonds ------------------------------------------ Standard & Poor's International Ratings, Ltd. Sucursal Argentina reaffirmed the `raD' rating assigned to US$220 million worth of corporate bonds issued by Compania de Inversiones de Energia S.A. The CNV described the bonds as "Obligaciones Negociables autorizadas por AGE de fecha 13.12.96." These bonds, which were classified under `Simple Issue,' matured on April 22, 2002. The rating action, which was taken based on the Company's finances as of the end of December 2003, indicates that the financial obligations are currently in default. The ratings agency said that the same rating may be issued if interest or principal payments are not made on the due even if the applicable grace period has not expired. CRM: S&P Assigns Default Ratings To $150M of Bonds -------------------------------------------------- Standard & Poor's International Ratings, Ltd. Sucursal Argentina maintains an `raD' rating on corporate bonds issued by Compania de Radiocomunicaciones Moviles S.A. CRM), according to data released by the CNV on its Web site. The bonds, worth US$150 million, were described as "Serie emitida bajo el Programa de Ons por hasta U$S 350 millones, vencido el 9-02-03" and classified under "Series and/or Class." The bonds will mature on May 31, 2008. The rating action was taken based on the Company's finances as of the end of December 2003. Financial obligations, which carry an `raD' rating, are currently in default. The ratings agency said that the same rating may be issued if interest or principal payments are not made on the due even if the applicable grace period has not expired. DISCO: Local Judge Blocks Disco Sale ------------------------------------ Citing a technicality, an Argentine federal judge ruled this week that Chilean company Cencosud cannot purchase Disco, the troubled Argentine supermarket chain controlled by Dutch retailer Ahold, according to Dow Jones. According to widespread local media reports, the federal judge in San Rafael, Mendoza province is blocking the sale because Argentina's antitrust authority, the National Committee for Defense of Competition, has yet to convene a required quorum, which renders any decision from the committee as illegitimate. The committee, which is currently reviewing the deal which will give Cencosud a 22% share in Argentina's retail market, is not expected to come up with a decision for several months. According to a Cencosud official Wednesday, the company, which already operates the Jumbo supermarket chain and hardware store chain Easy in Argentina, has yet to be formally notified of the San Rafael ruling. But the official said that once it gets official word, Cencosud will take any legal means necessary to resolve the situation. The continuing troubles for Disco and Ahold come as Cencosud is preparing to float shares on Santiago's stock exchange. The company, which plans to start trading next month, launched a road show in Chile Tuesday. Capital raised in the share issue will be utilized for its expansion in both Chile and Argentina. HURD SUDAMERICA: Claims Verification Ends Today ----------------------------------------------- The credit verification process for the bankruptcy of Hurd Sudamerica S.A. ends today. The Company's receiver, Mr. Norberto Bonesi, will now prepare the individual reports, which are to be submitted to Buenos Aires Court No. 6 on June 7, 2004. An earlier report by the Troubled Company Reporter - Latin America indicated that the general report is due to be submitted to court in August this year. The receiver will prepare this report after the individual reports are processed in court. Clerk No. 11 aids the court on the case, which will conclude with the liquidation of the Company's assets to repay creditors. CONTACT: Hurd Sudamerica S.A. Maipu 1252 Buenos Aires MADERA POSADAS: Receiver Prepares Individual Reports ---------------------------------------------------- The reorganization of Madera Posadas S.A. proceeds with the preparation of the individual reports as Mr. Hector Arzu, the Company's receiver, is scheduled to close the credit verifications today. The receiver will gather the data and finalize individual reports as well as the general report. Judge Ojea Quintana of Buenos Aires Court No. 12, with assistance from Clerk No. 24, Dr. Medici Garrot, will be announcing the deadlines for the submission of the said reports later. The Company, which sells and manufactures ceilings, iron straps, moldings and socles, decided to undergo a reorganization process after it stopped making debt payments in May last year. CONTACT: Madera Posadas S.A. 2nd Floor Florida 336 Buenos Aires Hector Arzu 9th Floor, Room 19 Junin 55 Buenos Aires MARCOS MARTINI: Court Orders Claims Verification Wrap Up -------------------------------------------------------- Estudio Fernandez Miro Dazza, the receiver appointed by the Tribunal civil y comercial de Moron No. 5 to oversee the reorganization process of Marcos Martini S.A., will conclude the claims verification process today. The next step in the process is for the receiver to prepare the individual reports and submit these to court on May 28, 2004, followed by the general report on July 2, 2004. The informational meeting will take place on September 3, 2004. CONTACT: Marcos Martini S.A. Pasteur 2874 Castelar (Partido de Moron) "Estudio Fernandez, Miro, Dazza" - Receiver San Martin 131 Moron MOPAL: Court Expects Individual Reports Today --------------------------------------------- Court No. 3 of the Civil and Commercial Tribunal of Mar del Plata, ordered Mr. Juan Carlos Codagnone, the receiver for the reorganization process of Mopal S.A., to hand in the individual reports to court today, according to an earlier report released by Troubled Company Reporter - Latin America. These reports contain the results of the credit verification process, which was completed earlier this year. After the individual reports are processed in court, the receiver will submit the general report on June 4, 2004. The court is yet to set the date for the informative assembly. CONTACT: Mopal S.A. Entre Rios 1648 Mar del Plata OGDEN-RURAL: SRA to Sell Stake in Exhibition Center --------------------------------------------------- Argentine businessman Francisco De Narvaez and Alejandro Shaw, who own a 50% stake in exhibition center La Rural are negotiating the acquisition of the other 50% that belongs to the Argentine Rural Society (SRA) for US$60,000 per month until the end of the concession, in 2005. SRA's shareholders will discuss the sale of 100% of the shares of La Rural de Palermo, the corporation through which the entity controls 50% of Ogden Rural, owner of the concession to manage the center until 2025, during an extraordinary meeting to take place April 30. According to sources close to the negotiations, De Narvaez and Shaw, owners of the other 50% stake in Ogden Rural, have good chances of taking SRA's stake. SRA President Luciano Miguens wants to sell the stake in Ogden Rural and claims that the deal would bring revenues to the entity and would free it from its liabilities with state-owned bank Banco Provincia, to which Ogden Rural owes ARS109 million (US$38.65 million). After the sale, the SRA would still keep its right to co-organize the annual farming exhibition that has been taking place since 1878. The company has just closed a debt restructuring agreement with Banco Provincia. This accord will also be discussed during the April 30 assembly. Although the last word on the sale of La Rural de Palermo lies on SRA's members, this deal would be one of the conditions to maintain the refinancing accord with the bank. According to Miguens, the main guarantee for the restructuring is a trust fund in favor of Banco Provincia that will retain 40% of the revenues generated by the exhibition center and these funds will be used to cancel the debt to the bank. Ogden Rural agreed to repay its debt in 15 semi-annual payments between 2006 and 2016. PETROBRAS ENERGIA: Announces US$100 Million Bond Issue ------------------------------------------------------ As part of its existing US$2.5 billion bond program, Argentine energy company Petrobras Energia SA (PECO.BA) said in a statement to the Buenos Aires stock exchange that it is planning to issue up to US$100 million in new bonds, Dow Jones reports. Petrobras Energia, which is the main asset of Petrobras Energia Participaciones (PZE), which is in turn owned by Petroleo Brasileiro (PBR) or Petrobras of Brazil, did not give further details in its filing to the stock exchange. The company said the bonds issue was decided during a meeting Tuesday by its board. This is the first time Petrobras Energia to make such an issuance since October 2003, when it also issued US$100 million in 10-year bonds. PETROBRAS ENERGIA: Anticipates Drilling Permit By Month's End ------------------------------------------------------------- The environmental permit for Argentine energy company Petrobras Energ�a (Merval: PESA) to commence drilling operations on Ecuador's block 31 in the Yasun� national park is expected by the company to be released by the end of this month, reports BNamericas, quoting an El Comercio newspaper report. The El Comercio report said the environmental impact study (EIS) and drilling plan presented by the company have already been approved by the energy and mines ministry. Once authorization is granted, Petrobras Energ�a will then start construction on a road and a port on the Napo river. "We can carry out the drilling while minimizing the environmental impact," the paper quoted Petrobras Energ�a spokesperson Ren� Esp�n as saying. The company recently inked a 5-year accord with an indigenous peoples' group in Ecuador to facilitate its exploration work on block 31, which holds oil reserves of some 230 million barrels. The company acquired the concession in 1996. The company has made various changes to its project plans in accordance with recommendations from the technical advisory group (GAT) of the management committee of Yasun� national park, which will be at the receiving end of a US$3.5 million donation from Petrobras Energia. PINTURERIA PROFESIONAL: Receiver's General Report Due Today ----------------------------------------------------------- Buenos Aires Court No. 25 expects Mr. Raul Brener, the receiver for Pintureria Profesional Marcos S.R.L., to file the general report for the Company's reorganization today. The Company's receiver prepared the general report, a consolidation of all the individual reports. After the general report is processed in court, an informative assembly will be held on October 6, 2004. Clerk No. 49 aids the court on the case. CONTACT: Raul Brener Lambare 1140 Buenos Aires REJIAR: Court OKs Creditor's Bankruptcy Motion ---------------------------------------------- Rejiar SA entered bankruptcy after Judge Braga of Buenos Aires Court No. 22 approved an involuntary bankruptcy petition filed by Cooperativa Concred de Credito y Vivienda Ltda. The Company's failure to pay ARS4956.22 in debt prompted Cooperativa Concred de Credito y Vivienda Ltda. to file the petition. Working with Dr. Mata, the city's Clerk No. 43, the Company assigned Mr. Federico Mansbach as receiver for the bankruptcy process. The receiver's duties include the authentication of the Company's debts and the preparation of the individual and general reports. Creditors are required to present their proofs of claims to the receiver before September 17, 2004. The Company's assets will be liquidated at the end of the bankruptcy process to repay creditors. Payments will be made based on the results of the verification process. CONTACT: Rejiar SA Joaquin V. Gonzalez 3804, Piso 3� Buenos Aires Federico Mansbach, Receiver Tucuman 1506, Piso 4� "402" Buenos Aires SAN DIEGO: Informative Assembly Slated for Today ------------------------------------------------ The informative assembly for the reorganization of San Diego S.R.L. will be held today, as ordered by the Civil and Commercial Tribunal of Las Lomas (San Luis), the Troubled Company Reporter - Latin America recalls. The informative assembly is one of the last processes in a reorganization process. CONTACT: Mr. Federico Gabriel Estrada, Receiver Lavalle 1416 San Luis Argentina ============= B E R M U D A ============= TK ALUMINUM: S&P Lowers Long-Term Corporate Credit Rating to `B' ---------------------------------------------------------------- Standard & Poor's Rating Services said Wednesday it lowered its long-term corporate credit rating on Bermuda-based aluminum auto parts manufacturer TK Aluminum Ltd. (TKA) to 'B' from 'B+' owing to weaker-than-expected production volumes in 2003 and 2004. In addition, the rating on the guaranteed EUR240 million senior unsecured notes that TKA issued through its financing unit, Teksid Aluminum Luxembourg S.a.r.l., S.C.A., was lowered to 'CCC+' from 'B-', reflecting solely their subordination to all existing and future priority debt. All ratings were removed from CreditWatch, where they were placed on December 19, 2003. The outlook is stable. These actions conclude the credit review carried out by Standard & Poor's over the past few weeks. "Standard & Poor's considers TKA's business environment to be weaker, following lower-than-expected improvements in production volumes in 2003, lower-than-expected production volumes and higher pricing pressures in 2004, and currently unfavorable foreign exchange exposure," said Standard & Poor's credit analyst Martin Amann. "This is likely to affect TKA's financial performance in 2004, so that credit protection measures are commensurate with a 'B' rating." The rating also reflects the operating challenges the company must overcome to increase its capacity utilization and improve operating efficiencies, as well as increase production volumes. "The stable outlook is based on our expectation that TKA's credit protection measures will improve gradually in the foreseeable future, and that its financial profile will remain in line with the 'B' rating level," said Mr. Amann. Free operating cash flow generation is expected to become permanently positive from 2005. The outlook also assumes that liquidity will remain sufficient and that TKA remains in compliance with financial covenants. CONTACT: STANDARD AND POORS RATING SERVICES Analyst E-Mail Addresses: martin_amann@standardandpoors.com bob_ukiah@standardandpoors.com CoporateFinanceEurope@standardandpoors.com ============= B O L I V I A ============= COTAS: Signs $7M Frame Agreement With Alvarion ---------------------------------------------- Alvarion Ltd. (NASDAQ: ALVR), the leading provider of wireless broadband solutions worldwide, announced Wednesday that Cooperativa de Telecommunicaciones Santa Cruz Ltda. (COTAS), the second largest phone cooperative in Bolivia, has signed a $7 million frame agreement to deploy Alvarion's eMGW broadband wireless access solution. As a replacement for its current outdated WLL system, Alvarion's 3.8 GHz product will allow COTAS to provide enhanced voice and Internet access to its customers in the greater Santa Cruz area beginning in the third quarter. The Santa Cruz deployment, for which Alvarion has already received a $3.6 million purchase order, represents the first phase of COTAS deploying broadband wireless to service customers throughout its service territory. Hans Lohner Paz, CEO of COTAS, said, "By choosing Alvarion and its eMGW product for our wireless network solution, we will now be able to reach many new customers in suburban and rural Santa Cruz with not only traditional toll-quality voice services, but also with Internet and data as well. This demonstrates COTAS' commitment to offer the latest in technology to improve service to our customers." Alvarion's eMGW solution was selected after an extensive review of suppliers from all over the world. The eMGW provides fast Internet access, corporate access and carrier-class telephony in a single system and its modular and scalable configuration enables incremental growth based on customer demand and a fast return on investment. Operating in a wide range of frequencies (800MHz - 5.7GHz), the MGW/eMGW family of solutions have been successfully installed in mass markets in over 60 countries. Zvi Slonimsky, chief executive officer of Alvarion, added, "COTAS is a progressive operator that is committed to improving its services. Alvarion was chosen from 18 competing companies to be COTAS' preferred wireless vendor. COTAS' deployment is yet another example of the important role that BWA plays in improving the telecommunications infrastructure by enabling high-speed data as well as voice." About Cotas: COTAS Ltda. (Cooperativa de Telecomunicaciones Santa Cruz Ltda.) is the second largest local phone cooperative in Bolivia. COTAS leads all other cooperatives in call volume and in revenues. It offers a wide range of telecommunications services such as Internet, ADSL, data transmission, pager services, long distance calls, public phones, cable TV and of course local calls. In Santa Cruz, COTAS is the leader in every service it provides. COTAS was founded in 1960 with 2400 lines. At this moment COTAS has 178,000 digital landlines. About Alvarion With over 1.5 million units deployed in 130 countries, Alvarion is the worldwide leader in wireless broadband providing systems to carriers, ISPs and private network operators. Featuring the industry's most extensive portfolio and covering the full range of frequency bands, the company's products enable the delivery of business and residential broadband access, corporate VPNs, mobile base station feeding, Hotspot coverage extension, community interconnection, and public safety communications. Alvarion works with several leading OEM providers and through over 200 local partners to support its diverse customer base in solving their last mile connection challenges wherever located. As an industry pioneer, Alvarion has been driving and delivering wireless broadband innovations for 10 years from core technology developments to creating and promoting industry standards. Most recently offering OFDM-based systems and taking leading roles in the IEEE and HiperMAN standards, the company's prominent work in the WiMAX ForumTM is focused on leading the wireless broadband market to widespread adoption of standards-based products. CONTACT: Alvarion Ltd. Investor Relations: Carmen Deville, 760-517-3188 E-mail: carmen.deville@alvarion.com =========== B R A Z I L =========== EMBRATEL: MCI Signs Amended Sale Agreement with TELMEX ------------------------------------------------------ MCI Inc. (MCIAV.PK) announced Wednesday that it has signed an amended agreement with Telefonos de Mexico, S.A. de C.V. (NYSE: TMX; NASDAQ: TFONY) for the sale of MCI's equity stake in Brazilian telecommunications provider Embratel Participacoes (NYSE: EMT). The new agreement, which has been approved by the MCI Board of Directors, increases the cash purchase price to be paid by Telefonos de Mexico (TELMEX) to $400 million from $360 million and establishes a $12.2 million breakup fee to the transaction. The amended agreement also provides for a $50 million up-front payment to MCI by TELMEX - which would be retained by MCI if the proposed transaction cannot be consummated because of the inability to obtain regulatory approvals. MCI has filed the amended sale contract with the U.S. Bankruptcy Court for the Southern District of New York and has requested a hearing to approve the termination fee on April 26, 2004. If the termination fee is not approved by the Court, TELMEX will have the option of reducing the purchase price to $360 million. The Bankruptcy Court hearing for approval of the sale to TELMEX is scheduled for April 27, 2004. About MCI MCI, Inc. (MCIAV.PK) is a leading global communications provider, delivering innovative, cost-effective, advanced communications connectivity to businesses, governments and consumers. With the industry's most expansive global IP backbone, based on the number of company-owned points of presence, and wholly-owned data networks, MCI develops the converged communications products and services that are the foundation for commerce and communications in today's market. PR Contact: Name: Les Kumagai Tel: 800-644-NEWS PR Contact: Name: Gregory Pettit Role: Investors Tel: (877) 624-9266 Web site: http://www.mci.com EMBRATEL: MCI Provides Terms of Senior Notes -------------------------------------------- MCI, Inc. (MCIAV.PK) provided additional details Wednesday on the terms of its senior notes issued on April 20, 2004 as a result of the Company's emergence from Chapter 11. The senior notes were issued in accordance with the Company's Plan of Reorganization, are senior unsecured obligations of the Company and consist of three separate issues with maturities of three, five and ten years. The three-year notes mature on May 1, 2007, have an initial coupon rate of 5.908%, a principal amount of $1,982,537,000 and are designated as the 5.908% Senior Notes due 2007. Commencing on May 1, 2005, MCI will have the right to redeem some or all of the 5.908% Senior Notes due 2007 at an initial call price of 102.454%, declining to par in May 2006. Prior to May 1, 2005, MCI will have the right to redeem some or all of the Notes at a price that would include a make-whole premium (calculated using a discount rate equal to the applicable Treasury rate plus 1.331%). The five-year notes mature on May 1, 2009, have an initial coupon rate of 6.688%, a principal amount of $1,982,537,000 and are designated as the 6.688% Senior Notes due 2009. Commencing on May 1, 2006, MCI will have the right to redeem some or all of the 6.688% Senior Notes due 2009 at an initial call price of 102.844%, declining ratably to par in May 2008. Prior to May 1, 2006, MCI will have the right to redeem some or all of the Notes at a price that would include a make-whole premium (calculated using a discount rate equal to the applicable Treasury rate plus .229%). The ten-year notes mature on May 1, 2014, have an initial coupon rate of 7.735%, a principal amount of $1,699,496,000 and are designated as the 7.735% Senior Notes due 2014. Commencing on May 1, 2009, MCI will have the right to redeem some or all of the 7.735% Senior Notes due 2014 at an initial call price of 103.3675%, declining ratably to par in May 2012. Prior to May 1, 2009, MCI will have the right to redeem some or all of the Notes at a price that would include a make-whole premium (calculated using a discount rate equal to the applicable Treasury rate plus 0.845%).,/p> Interest on the senior notes is payable semi-annually on May 1 and November 1, beginning November 1, 2004, with interest accruing from April 20, 2004. The initial coupon rates on the senior notes are subject to reset after the Company has applied for and received ratings for the notes from Moody's Investors Service and Standard & Poor's Corporation. The adjustment could result in a change in the interest rates ranging from (a) a decrease of 3.0% if the notes are rated Baa3 or higher by Moody's and BBB- or higher by Standard & Poor's to (b) an increase of 3.0% if the notes are rated lower than B3 by Moody's and lower than B- by Standard & Poor's. If the notes are rated between the levels indicated, the coupon rates will change to a lesser degree. MCI expects to apply for ratings from Moody's and Standard & Poor's within the next 30 days. After applying for these ratings, the Company plans to meet with the two rating agencies and expects that the ratings for the notes will be received sometime thereafter. After the ratings are received, the Company will promptly announce any change to the coupon rates. PR Contact: Name: Brad Burns Tel: 800-644-NEWS PR Contact: Name: Peter Lucht Tel: (800) 644-NEWS PR Contact: Name: Gregory Pettit Role: Investors Tel: (877) 624-9266 ========= C H I L E ========= COEUR D'ALENE: Files Registration Statements; Capital Needed ------------------------------------------------------------ Coeur d'Alene Mines Corporation (NYSE: CDE - News) announced Tuesday that it filed a registration statement on Form S-3 with the Securities and Exchange Commission ("SEC") to register the offer and sale by the Company from time to time of up to $250 million of various securities, which may include debt securities, preferred stock, common stock and or warrants. The Company will determine the use of proceeds of any particular offering only if and when the Company actually sells securities, but the Company currently expects that it will use the proceeds of any sale of any securities registered on Form S-3 registration statement for general corporate purposes, which may include expansion and development of existing operations, possible acquisitions of mining properties or other mining companies, for working capital to support the Company's growth or the repayment of indebtedness. In addition, the Company filed a registration statement on Form S-4 with the SEC to register the offer by the Company from time to time of up to 50 million shares of common stock to be used solely for exchanges, mergers, asset acquisitions and other forms of business combinations. The registration statements on Form S-3 and Form S-4 relating to these securities filed with the SEC have not yet become effective. These securities may not be sold nor may any offers to buy be accepted prior to the time that the particular registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. The offering of the securities shall be made only by means of a prospectus contained in the registration statement filed with and declared effective by the SEC. Coeur d'Alene Mines Corporation is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The Company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile and Bolivia. CONTACT: Tony Ebersole Director of Investor Relations 800-523-1535 =================================== D O M I N I C A N R E P U B L I C =================================== * Fitch Comments on Dominican Republic's Paris Club Agreement ------------------------------------------------------------- Fitch Ratings, the international rating agency, commented Wednesday on the completion of negotiations between the Dominican Republic (DR) and the Paris Club to reschedule debt service. The resulting agreement is expected to reduce debt service due to Paris Club creditors from US$479 million to US$293 million this year. The ratings on the Dominican Republic's foreign and local currency obligations are 'CCC+'. The ratings remain on Rating Watch Negative. The government projects external financing needs of close to US$1 billion in 2004, of which around US$700 million is covered by multilateral and bilateral disbursements. With the Paris Club rescheduling, the remaining financing gap is estimated at US$114 million. As the authorities have agreed to seek 'comparable treatment' from non-Paris Club bilateral and private creditors, the likelihood of a bond restructuring is high. Comparability of treatment considers the effects of duration, net present value, flow relief, as well as the provision of new money. As such, it is not yet clear the extent to which bondholders will be affected, though Fitch believes it may prove challenging to avoid a bond restructuring that involves an NPV loss. Although the government has utilized grace periods, thus far they have honored their external obligations, even under dire circumstances. The government continues to state its desire to avoid a bond restructuring, but this is likely to be contingent upon negotiations with other creditors and the extent to which 'comparable treatment' is met by an NPV loss and maturity extension on the aggregate of remaining non-multilateral debt. Fitch will continue to monitor the Dominican Republic's progress under the Stand-by Arrangement with the IMF as well as negotiations with non-Paris Club creditors. Any additional disbursement delays could make meeting debt service requirements difficult. Fitch would view any future restructuring that imposes a material loss in NPV terms to bondholders a default event. In addition, if the government fails to cure its missed coupon payment on the 2006 bond due March 27, prior to the expiration of the 30-day grace period, the ratings will be lowered to default. Conversely, successful reviews of the country's Stand-by Arrangement with the IMF, a favorable debt restructuring not involving an event of default and a smooth transition to the next government (following the May 16 presidential elections) could ease pressures on the ratings going forward. Until there is more clarification on the extent of non-Paris Club rescheduling, the ratings will remain on Rating Watch Negative. CONTACT: Theresa Paiz Fredel +1-212-908-0534 Roger M. Scher +1-212-908-0240, New York MEDIA RELATIONS: James Jockle +1-212-908-0547, New York ============= E C U A D O R ============= PETROECUADOR: Anticipates Drilling Contract Bids In May ------------------------------------------------------- In a statement released Wednesday, the president of Ecuador's state oil company Petroecuador said the company expects to receive bids for two integrated drilling services contracts on May 17, reveals BNamericas. The two one-year contracts are intended to reverse declining production on the company's oil fields, Petroecuador president Pedro Espin said in the statement. The contracts, which are budgeted at US$14 million each according to the statement, are expected to be awarded by the company within three months, said a Petroecuador spokesperson. One of the two new rigs will be for drilling vertical wells guided by new 3D seismic data, while the other will drill directional wells, both in the Amazon region. The spokesperson said the contracts are designed to replace a contract with US company Pride awarded in November 2003, which was suspended because the rig did not meet the terms of the tender according to the state purchasing officer. The Pride rig was supposed to start drilling in the first quarter, but Petroecuador has decided to award two contracts instead of one since the two new contracts will not start until mid-year. ============= J A M A I C A ============= KAISER ALUMINUM: RUSAL Successful Bidder for Alpart Interests ------------------------------------------------------------- Kaiser Aluminum announced that RUSAL was the successful bidder for Kaiser's interests in and related to Alpart, a partnership that owns bauxite mining operations and an alumina refinery in Jamaica, with an offer providing a base purchase price of $295 million prior to certain adjustments. Kaiser made the determination in consultation with the Unsecured Creditors Committee and others at the conclusion of Tuesday's auction, which had been ordered by the U.S. Bankruptcy Court for the District of Delaware. Kaiser's agreement to sell its interests in Alpart is subject to the conditions cited below. Kaiser expects the Court to rule on the agreement on April 26. The company has targeted a closing date on the transaction near the end of the second quarter of 2004. As previously disclosed, under Alpart's existing partnership arrangement, Hydro Aluminium a.s., which currently owns the remaining 35% of Alpart, retains the right -- for 30 days following Kaiser's receipt of Court approval of any sale transaction -- to elect to purchase Kaiser's interests at the price specified in any agreement approved by the Court. As discussed more fully in its Form 10-K for 2003, Kaiser is working with the lenders under its Post-Petition Credit Agreement to obtain an amendment to the Credit Agreement that, among other things, would permit the sale of the company's interests in and related to Alpart. Kaiser Aluminum (OTCBB:KLUCQ) is a leading producer of fabricated aluminum products, alumina and primary aluminum. =========== M E X I C O =========== GRUPO ELEKTRA: Deposits $293M Advanced Payment to Restructure ------------------------------------------------------------- Grupo Elektra S.A. de C.V. (NYSE: EKT - News; BMV: Elektra*), Latin America's leading specialty retailer, consumer finance and banking services company, announced Wednesday that it deposited US$293.3 million (US$275.0 million of the principal, US$16.5 million of the 106% call price, and US$1.8 million of accrued interest) in The Bank of New York, who acts as Trustee and Paying Agent, to fully amortize four years in advance, the Company's 12% US$275 million Senior Notes due in 2008. As previously detailed, the payment that covers the call price plus accrued interest is comprised of US$218 million from the unsecured long-term Certificados Bursatiles, US$36 million from the unsecured short-term Certificados Bursatiles, and US$39 million from the cash position of Grupo Elektra's retail division. The redemption in advance of the Senior Notes is part of the Company's ongoing plan to refinance its expensive debt and to eliminate its exposure to foreign exchange fluctuations. Javier Sarro, Chief Executive Officer of Grupo Elektra commented: "The redemption of our Senior Notes calls for a celebration within the Company. Grupo Elektra can proudly announce it has completely eliminated all of its dollar- denominated debt. Our two successful debt issuances in local currency placed last month, and the determination to reduce expensive debt since last year, were key factors that triggered us to the position where we stand today. We believe that this accomplishment reflects the commitment of Grupo Elektra to create value for all of its beneficiaries." "We are very proud to announce the accomplishment of one of the main objectives set in our financial strategy," said Rodrigo Pliego, Chief Financial Officer of Grupo Elektra. "We reached a major goal of our financial strategy by completely eliminating the Company's foreign exchange risk and interest expenses in US dollars which will result in savings of approximately US$ 40 million in the next four years." Going forward, Grupo Elektra will only carry peso-denominated debt, out of which approximately 75% will be long-term. However, the Company expects that the liability structure of the long- term Certificados Bursatiles, which includes increasing annual amortizations of capital starting on April 2006, should allow Grupo Elektra to actually reduce its debt in the coming years. Web site: http://www.grupoelektra.com.mx Grupo Elektra is Latin America's leading specialty retailer, consumer finance and banking services company. Grupo Elektra sells retail goods and services through its Elektra, Salinas y Rocha and Bodega de Remates stores and over the Internet. The Group operates almost 900 stores in Mexico, Guatemala, Honduras and Peru. Grupo Elektra also sells and markets its consumer finance and banking products and services through its Banco Azteca branches located within its stores. Financial services include consumer credit, personal loans, money transfers, extended warranties, savings accounts and term deposits. Investor Relations Contacts: Esteban Galindez, CFA Director of Finance and IR Grupo Elektra, S.A. de C.V. Tel. +011-52-55-8582-7819 Fax. +011-52-55-8582-7822 E-mail: egalindez@elektra.com.mx Samantha Pescador Investor Relations Grupo Elektra S.A. de C.V. Tel. +011-52-55-8582-7819 Fax. +011-52-55-8582-7822 E-mail: spescador@elektra.com.mx Rolando Villarreal Head of Investor Relations Grupo Elektra S.A. de C.V. Tel. +011-52-55-8582-7819 Fax. +011-52-55-8582-7822 E-mail: rvillarreal@elektra.com.mx GRUPO MEXICO: Reverses Course; Posts 1Q Sales, Profit Gains ----------------------------------------------------------- In a filing to the Mexican Stock Exchange, Mexican copper mining company Grupo Mexico SA (GMEXICO.MX) said Wednesday that it has registered sharp sales and profit gains in the first quarter largely due to higher production volume and metals prices, Dow Jones relates. Grupo Mexico, the world's third largest copper producer with mining operations in Mexico, Peru and the U.S., said sales rose to MXN9.8 billion from MXN6.1 billion in the first quarter of 2003. Operating profit, meanwhile, was MXN3.81 billion compared with MXN366.5 million for the same period last year, and net profit was MXN2.51 billion, compared with a net loss of MXN716.0 million. The company also said it invested US$77.4 million in the first quarter in its mining operations, while its Mexican railway unit was allotted US$7.6 million. The statement also said that its copper production rose 20% from the year-ago period, with its Mexican mining unit raising copper output by 54%. The company increased copper sales by 7% to 204,000 metric tons, keeping the remaining increase in production in inventory. Molybdenum sales rose 18%, gold sales 37% and silver sales 7%, compared with the first quarter of 2003, the filing added. Copper prices rose 62% to 123 cents a pound from 76 cents a pound. Molybdenum prices rose 102% to US$8.04 a pound; zinc rose 36% to 48.5 cents a pound; silver was up 44% to US$6.71 an ounce, and gold rose 16% to US$408.44 an ounce. ============= U R U G U A Y ============= UTE: Combined Cycle Plant Project Attracts Four Bidders ------------------------------------------------------- A spokesperson for Uruguay's state-owned power company UTE said four companies have submitted bids Wednesday for a turnkey contract to build a 350-400MW combined cycle thermoelectric power plant, BNamericas reports. Fiat Engineering do Brasil, General Electric, Alstom and another unidentified company have bid for the construction of the plant, which will be built in the San Jos� department, some 15-20km from Montevideo, near a city gate in the Cruz del Sur pipeline that brings natural gas over from Argentina, the spokesperson said. Six other companies have bought bidding rules, the spokesperson added. UTE will be awarding the contract in the next two weeks after studying all economic and technical bids. UTE aims to speed up the construction of the plant, which is projected to take about 18 months, to cover its energy shortfall as a result of Argentina's decision last month to suspend power exports. ================= V E N E Z U E L A ================= CANTV: Signs Capacity Agreement with New World Network ------------------------------------------------------ New World Network, Ltd., a leading provider of advanced, high- speed clear channel and IP services and the principal owner of the Americas Region Caribbean Optical-ring System (ARCOS), announced Wednesday a capacity services agreement with CANTV, the leading provider of telecommunication services in Venezuela. New World Network will provide fully protected capacity services to CANTV through the ARCOS Submarine Cable System from Miami to Venezuela. "This agreement provides a long term solution for the rapid growth of traffic to and from Venezuela, delivering a highly resilient solution to CANTV," stated Alfonso Olombrada, General Manager of Interconnection of CANTV. "The unique fiber ring architecture helps us provide secure and dependable connectivity that our customers expect from us," added Olombrada. "Through this agreement, New World Network continues to demonstrate its commitment to the region and its ongoing relationship with CANTV by providing technologically advanced fiber optic capacity services" said Eduardo Gandarilla, Senior Vice President of Sales and Marketing of New World Network. About CANTV CANTV, a Venezuelan corporation, is the leading Venezuelan telecommunications service provider with approximately 2.7 million access lines in service, 2.7 million cellular subscribers and 1 million Internet users as of December 31, 2003. The Company's principal strategic shareholders are affiliates of Verizon Communications Inc. with 28.5% of the outstanding capital stock, and Telefonica S.A. with 6.9%. Other major shareholders include the Venezuelan Government with 6.6% of the outstanding capital stock (class B Shares), and employees, retirees and employee trusts which own 9.0% (Class C Shares). Public shareholders hold the remaining 48.9% of the outstanding capital stock. About New World Network New World Network is a wholesale services provider that offers advanced, high-speed bandwidth capacity to telecommunications companies and Internet Service Providers. The company's Americas Region Caribbean Optical-ring System (ARCOS) is the leading undersea broadband fiber-optic cable network connecting the U.S., Mexico, Central America, South America and the Caribbean. The unique hybrid ownership structure of ARCOS is co-owned by 28 carriers throughout the region and led by New World Network, the principal owner with approximately 88.2% interest. Web site: http://www.nwncable.com PDVSA: Denies Shortages, Smuggling Enforcement Increased -------------------------------------------------------- As part of its efforts to curb fuel smuggling to Colombia which is reportedly causing fuel shortages in Venezuela's border cities, Venezuelan state oil company PDVSA has begun restricting and monitoring fuel sales more closely in those areas, BNamericas says, citing a report from government news service Venpres. However, mines and energy minister Rafael Ram�rez denied the reported shortages, saying that the rumors of deficits are meant to pressure the government into giving distributors higher margins. The Venpres report said that aside from causing fuel shortages in border cities, smuggling is also hurting the PDVSA's finances. Gasoline stations are in some cases buying over two million liters of gasoline and diesel but registering sales of less than half that amount, the report said. Local daily El Universal, meanwhile, reported that distributors buy the smuggled fuel from the El Vig�a storage plant, where restrictions in place have led to shortages at 80% of pumps in T chira state. The paper also said the fuel shortages had caused 60% of the state's public transport to ground to a halt. * * * * * * * 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 and Edem Psamathe P. Alfeche, 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 * * *