/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040625.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, June 25, 2004, Vol. 5, Issue 125 Headlines A R G E N T I N A AGRITECH INVERSORA: 'D' Rating on Bonds Remains Intact AGUAS ARGENTINAS: Government Contract Up for Review BANCO BISEL: Moody's Latin America Leaves Bonds Unchanged COPEMA S.R.L.: Court Declares Company Bankrupt CORASA: Argentina Defends Move to Transfer Postal Assets CRM: Moody's Leaves Default Ratings on Bonds Unchanged CURTIEMBRE LA MARIA: Bankruptcy Initiated by Court Order DANIEL BALDINI AUTOMOTORES: Liquidation Looms In Bankruptcy EMPRENDIMIENTOS INMOB.: Moody's Reaffirms Bonds' Default Rating EUROMAYOR: $10M of Bonds Maintain 'C' Rating GAS TRELEW: Schedule of Reports Submission Set EL LUCERO FABRICA: Gets Court Liquidation Order IMAGEN SATELITAL: Bonds Still In Default LAKE TAHOE: Court Rules on Bankruptcy Petition LETER S.A.: Liquidates Assets to Pay Debts MARCOS MARTINI S.A.: Gets Court Authorization to Reorganize MARMOLERIA SIERRA CHICA: Reorganize Official on Court Ruling PAN AMERICAN ENERGY: Outlines Increased Gas Exploration in 2004 PARILLA DON ZOILO: Claims Review Deadline Approaches PRIDE INTERNATIONAL: Fitch Assigns 'B+' To Sr Unsecured Notes SALPE S.R.L.: Court Authorizes Reorganization TARJETA NARANJA: $200M of Bonds Retain 'D' Rating TELEFONICA DE ARGENTINA: Concession Talks Moving Forward TOLDOS NAZCA: Enters Bankruptcy Protection, Liquidation Follows TOP BOARD: Court Rules in Favor of Creditor's Bankruptcy Motion TRENES METROPOLITANOS: Stripped of Railway Contract B R A Z I L AES TIETE: Fitch Affirms Certificates at 'B-' CESP: Outlines Investment, Debt Payment Prioritization Plans EMBRATEL: Telmex Appoints President, CEO PARMALAT FINANZIARIA: Posts Period Ending May 31, 2004 Results D O M I N I C A N R E P U B L I C AES EDE-ESTE: Contracts Unauthorized $50M Loan, Audit Shows G U Y A N A * Guyana Secures US$22.5 Mln Loan From IDB M E X I C O GRUPO MEXICO: S&P Puts 'B-' Rating On CreditWatch Positive GRUPO MEXICO EXPORT: Watch Positive Shift on S&P Ratings GRUPO TMM: Begins Restructuring Plan's Next Phase PARMALAT MEXICO: Milk Company Seeks to Acquire Assets SATMEX: Scrambles to Negotiate $205M Loan With Creditors VITRO: Contemplates $150M Private Bond Placement P E R U PANAMERICANA: Delgado Parker Secures Control of Network T R I N I D A D & T O B A G O CDC: Defends Lock-Out Action in Court Hearing - - - - - - - - - - ================= A R G E N T I N A ================= AGRITECH INVERSORA: 'D' Rating on Bonds Remains Intact ------------------------------------------------------ Evaluadora Latinoamericana S.A. Calificadora de Riesgo maintains a 'D' rating on ARS4.5 million worth of corporate bonds issued by Agritech Inversora S.A., according to Argentina's securities regulator, the Comision Nacional de Valores (CNV). The rating, which was given based on the Company's financial status as of March 31, 2004, affected bonds described as "Primera Serie de obligaciones negociables." The bonds will mature on Oct. 5, 2007. A 'D' rating is issued to bonds that are in default, said the ratings agency. AGUAS ARGENTINAS: Government Contract Up for Review --------------------------------------------------- The transitory contract renegotiation agreement entered by water utility Aguas Argentinas and the federal government of Argentina in May will undergo scrutiny from a bicameral committee created by federal congress. Business News Americas says that the committee, known as "Comision bicameral de Seguimiento de las Facultades Delegadas al Ejecutivo por la ley de Emergencia Económica", will take a month to prepare and present its report. Both houses of congress will also need another month to discuss the findings after the document is submitted. Among the contract provisions up for review by the committee is the ARS242 million (US$82.6 million) infrastructure and service improvement budget that Aguas has allocated for this year. Aguas Argentinas won its 30-year operating concession in 1993. The company supplies water to 11.5 million residents as well as sewerage service to 7.5 million residents in Buenos Aires. BANCO BISEL: Moody's Latin America Leaves Bonds Unchanged --------------------------------------------------------- The National Securities Commission of Argentina relates that the local branch of Moody's Ratings Agency maintains a 'D' rating on various corporate bonds issued by local bank, Banco Bisel S.A. The rating, which denotes payment default, pertains to the following bonds: - US$54 million worth of "Obligaciones Negociables Subordinadas" classified under "Series and/or Class." The bonds matured on July 20, 2000. - US$100 million worth of "Programa Global de Obligaciones Negociables" classified under "Program." These bonds also matured on July 20, 2000. - US$300 million worth of "Programa de Emision de Titulos de Deuda a Mediano Plazo" classified under "Program." These bonds matured on July 20, 2000. - US$200 million worth of "Programa Global de Emision de Obligaciones" classified under "Program." The maturity date of the bonds was not indicated. The Company's financial status as of the end of December 2003 determined the ratings given by Moody's. CONTACT: Banco Bisel S.A. Mitre 602 Rosario 2000 Santa Fe Argentina Phone: 0341-4200300 Home Page: http://www.bancobisel.com.ar/ Contact: Guillermo Harteneck, President Jean Luc Perron, Vice President Bernard Brousse, Vice President COPEMA S.R.L.: Court Declares Company Bankrupt ---------------------------------------------- Copema S.R.L. enters bankruptcy protection after a local court in Buenos Aires issued a liquidation order against the Company, says Infobae. The court assigned Mr. Juan Jose Roberto Esturo as trustee for the case. He will be supervising the liquidation proceedings beginning with the verification of creditor's claims, which is ongoing until August 11, 2004. Analyzing these claims is important because the outcome of the process will determine the amount each creditor will get after all the assets of the Company are liquidated. CONTACT: Mr. Juan Jose Roberto Esturo, Trustee Reconquista 336 Buenos Aires CORASA: Argentina Defends Move to Transfer Postal Assets -------------------------------------------------------- The Argentine government said Wednesday that its decision to transfer control of the country's postal assets to a new state- owned company is constitutional. The comment came after Correo Argentino SA (CASA), the company that until last year held the private concession, filed a suit against the State claiming that a decree issued earlier this month, which creates Correo Official de la Republica Argentina SA and hands over CASA's assets to the new company, breaches constitutionally protected property rights. According to Planning Minister Julio De Vido, the government's move was completely justified. "The fact that Mr. (Francisco) Macri presents a lawsuit does not mean that the bases on which we decided to rescind the contract of Correo are not legally solid and judicially impeccable. Mr. Macri can seek his rights in any way he wishes. The Argentine state can also seek its own corresponding (rights)," he said. Correo Argentino became the world's first fully privatized postal service in 1997. It was owned by Macri's Sideco Americana (SDA.YY) and other investors including Grupo Financiero Galicia SA (GGAL). The postal concession is one of a string of contract recessions ordered by the Kirchner government since it took office last May. CRM: Moody's Leaves Default Ratings on Bonds Unchanged ------------------------------------------------------ Moody's Latin America Calificadora de Riesgo S.A., maintains a 'D' rating on a total of US$350 million worth of corporate bonds issued by Compania de Radiocomunicaciones Moviles S.A. (CRM), the CNV says on its Web site. The Company's financial health as of March 31, 2004 determined the rating, which denotes a payment default. The CNV described the affected bonds as "Programa Global de Ons simpleas, autorizado por AGE de fecha 26.6.97 y 23.9.97". These bonds, which are classified under "Program", matured in March 2003. CURTIEMBRE LA MARIA: Bankruptcy Initiated by Court Order -------------------------------------------------------- The civil and commercial tribunal of Lomas de Zamora declared Curtiembre La Maria bankrupt after the Company defaulted on its debt payments, reports Argentine news source Infobae. The bankruptcy order effectively places the company's affairs as well as its assets under the control of court-appointed trustee, Mr. Sergio Omar Barragan. As the trustee, Mr. Barragan is tasked with verifying the authenticity of claims presented by the Company's creditors. The verification phase is ongoing until June 25, 2004. Following claims verification, the trustee will submit the individual reports based on the forwarded claims for final approval by the court on August 24, 2004. A general report will also be submitted on October 7, 2004. CONTACT: Curtiembre La Maria S.R.L. Florida 2254 Valentin Alsina Partido de Lanus Lomas de Zamora Mr. Sergio Omar Barragan, Trustee Rodriguez 296 Banfield Lomas de Zamora DANIEL BALDINI AUTOMOTORES: Liquidation Looms In Bankruptcy ----------------------------------------------------------- Daniel Baldini Automotores S.A. is now "Quiebra" - meaning bankrupt, says Infobae. A Lomas de Zamora court decreed the company's bankruptcy and appointed Jorge R. Caputo as trustee for the Company. Mr. Caputo will be tasked with reviewing creditors' claims against the company as well as preparing the individual and the general reports concerning the case. CONTACT: Daniel Baldini Automotores S.A. Avda Eva Peron 3610 Lanus Este Lomas de Zamora Mr. Jorge R. Caputo, Trustee Belgrano 98 Lomas de Zamora EMPRENDIMIENTOS INMOB.: Moody's Reaffirms Bonds' Default Rating --------------------------------------------------------------- Moody's Latin America Calificadora de Riesgo reaffirmed the `D' rating of US$1.65 million worth of corporate bonds issued by Emprendimientos Inmob. y Financieros S.A., formerly ECIPSA. The rating affected bonds described as "Obligaciones Negociables Clase B," says the CNV, without revealing the bonds' maturity date. The issued rating was based on the Company's finances as of April 30, 2004. EUROMAYOR: $10M of Bonds Maintain 'C' Rating -------------------------------------------- Moody's Latin America Calificadora de Riesgo S.A. reaffirms the 'C' rating on US$10 million worth of bonds issued by Euromayor S.A. de Inversiones, the CNV reports. The rating issued was based on the Company's financial situation as of March 31, 2004. The bonds affected are described as "Primera Serie por 10 milliones de US$ dentro de un Programa Global," and matured in April 28, 2003. A 'C' rating is assigned to financial obligations that have a risk of nonpayment. GAS TRELEW: Schedule of Reports Submission Set ---------------------------------------------- Accounting firm Estudio Rodriguez, Martorelli - Demarchi & Asoc, the trustee assigned to supervise the Gas Trelew S.A. insolvency case, will submit the validated individual claims for court approval on November 22, 2004. These reports explain the basis for the accepted and rejected claims. The firm will also submit a general report of the case on February 2, 2005. Infobae reports that the Buenos Aires court handling the case has scheduled the Company's informative assembly on June 30, 2005. CONTACT: CONTACT: Gas Trelew S.A. Cerrito 146 Parque Industrial Trelew Chubut Estudio Rodr¡guez Martorelli, Demarchi y Asociados Trustee Sarmiento 1452 Chubut EL LUCERO FABRICA: Gets Court Liquidation Order ----------------------------------------------- Buenos Aires Court No. 3 declared local company El Lucero Fabrica de Manijas S.R.L. bankrupt, relates La Nacion. The liquidation order was issued upon the petition of Union Obreros y Empleados Plasticados for debts totaling US$15,608.88. The troubled plastic factory will undergo the bankruptcy process with Ms. Alicia Kurlat as its trustee. Creditors are required to present their proofs of claim to the trustee for verification before August 17, 2004. Creditors who fail to have their claims authenticated by the said date will be disqualified from the payments that will be made after the Company's assets are liquidated at the end of the bankruptcy process. Clerk No. 35., Dr. Alconada, assists the court on the case. CONTACT: El Lucero Fabrica de Manijas S.R.L. Pasaje Francisco Lopez Merino 3945 Buenos Aires Ms. Alicia Kurlat, Trustee Carlos Pellegrini 1079 Buenos Aires IMAGEN SATELITAL: Bonds Still In Default ---------------------------------------- Moody's Latin America Calificadora de Riesgo S.A. maintains a 'D' rating on US$80 million worth of corporate bonds issued by Argentine company Imagen Satelital S.A., the CNV relates. The rating issued applies to bonds called "obligaciones negociables" which will expire on May 2, 2005. The Company's financial health as of March 31, 2004 determined the action taken by Moody's. LAKE TAHOE: Court Rules on Bankruptcy Petition ---------------------------------------------- The Buenos Aires civil and commercial tribunal ordered the liquidation of Lake Tahoe S.A. after the Company defaulted on its obligations, Infobae reveals. The liquidation pronouncement effectively places the Company's affairs as well as its assets under the control of Mr. Gustavo G. Vignale, the court-appointed trustee. Mr. Vignale will verify creditors' proofs of claim until August 23, 2004. The verified claims will serve as basis for the individual reports to be submitted in court on October 4, 2004. The submission of the general report follows on November 16, 2004. CONTACT: Mr. Gustavo G. Vignale, Trustee Vuelta de Obligado 2717 Buenos Aires LETER S.A.: Liquidates Assets to Pay Debts ------------------------------------------ Buenos Aires-based Leter S.A. will begin liquidating its assets following the pronouncement of the city's civil and commercial tribunal that the Company is bankrupt, reports Infobae. The bankruptcy ruling places the Company under the supervision of court-appointed trustee, Ms. Analia Ostojich. The trustee will verify creditors' proofs of claim until August 31, 2004. Following verification, the claims will be presented in court as individual reports on October 13, 2004. Ms. Ostojich will also submit a general report, containing a summary of the Company's financial status as well as relevant events pertaining to the bankruptcy, on November 24, 2004. The bankruptcy process will end with the disposal company assets to pay its creditors. CONTACT: Leter S.A. Avda Corrientes 4566 Buenos Aires Ms. Analia Ostojich, Trustee Quirno 962 Buenos Aires MARCOS MARTINI S.A.: Gets Court Authorization to Reorganize ----------------------------------------------------------- Marcos Martini S.A. will begin reorganization following the approval of its petition by the civil and commercial tribunal of Moron. The opening of the reorganization will allow the Company to negotiate a settlement with its creditors in order to avoid a straight liquidation. Accounting firm Estudio Fernandez, Miro y Dazza will oversee the reorganization proceedings as court-appointed trustees. The firm will verify creditors' claims until June 22, 2004. Afterwards, the validated claims will be presented in court as individual reports on July 5, 2004. The trustee is also required by the court to submit a general report essentially auditing the Company's accounting and business records as well as summarizing important events pertaining to the reorganization. This report will be presented in court on August 27, 2004. The Informative Assembly, the final stage of a reorganization where the settlement proposal is presented to the Company's creditors for approval, is scheduled on October 8, 2004. CONTACT: Marcos Martini S.A. Luis Pasteur 2874 Castelar Partido de Moron Estudio Fernandez, Miro y Dazza Trustees San Martin 131 Moron MARMOLERIA SIERRA CHICA: Reorganize Official on Court Ruling ------------------------------------------------------------ Judge Bavastro Modet of Buenos Aires Court No. 17 approved the Concurso Preventivo petition filed by Marmoleria Sierra Chica, reports local news source La Nacion. The marble supplier will undergo reorganization with Mr. Hugo Trejo as trustee. The court-appointed trustee will verify creditors' proofs of claim until September 3, 2004. Verifications are done to ascertain the nature and amount of the Company's liabilities. Clerk No. 33, Dr. Trevino Figueroa, assists the court on the case. CONTACT: Marmoleria Sierra Chica S.A. Sanchez de Bustamante 1758 Buenos Aires Mr. Hugo Trejo, Trustee Avenida Cordoba 744 Buenos Aires PAN AMERICAN ENERGY: Outlines Increased Gas Exploration in 2004 --------------------------------------------------------------- Argentine oil and gas company Pan American Energy will raise investments in gas exploration and production to US$91.3 million this year from US$62.1 million in 2003, Business News Americas reports, citing an executive. Jose Luis Sureda, Pan American's gas sales VP, revealed that the Cuenca Austral field, operated by France's Total, will account for US$41.2 million in investment, with US$22 million earmarked for the Pan American-operated Cerro Dragon. As a result of frozen gas and electricity rates in Argentina since January 2002, "We have not invested at the pace we are accustomed to investing, but we have been investing and we are continuing to invest," Sureda said. "We would have liked to invest US$200 million [in 2002 and 2003] but evidently we have invested less because of the whole situation in Argentina, but [we were still] meeting our contract obligations," Sureda continued. PARILLA DON ZOILO: Claims Review Deadline Approaches ---------------------------------------------------- The verification of claims for the Parilla Don Zoilo S.A. reorganization will end on August 19, 2004 according to Infobae. Creditors with claims against the bankrupt company must present proof of the liabilities to Mr. Alfredo Ruben Dario Rodriguez, the court-appointed trustee, before the stated deadline. CONTACT: Parilla Don Zoilo S.A. Avenida Honorio Pueyrredon 1412 Buenos Aires Mr. Alfredo Ruben Dario Rodriguez, Trustee Marcelo T. Alvarez 1775 Buenos Aires PRIDE INTERNATIONAL: Fitch Assigns 'B+' To Sr Unsecured Notes ------------------------------------------------------------- Fitch Ratings has assigned a 'B+' senior unsecured debt rating to Pride International Inc.'s (Pride) newly issued senior unsecured notes and a 'BB' rating for the proposed credit facility. The Rating Outlook is Stable. The unchanged ratings reflect Pride's relatively weak credit profile, the regions where Pride operates, and the company's competitive position in the oil and gas drilling market. These ratings were initiated by Fitch as a service to users of its ratings and are based on public information. Pride intends to use the proceeds from the senior unsecured offering and new credit facility to repay its existing credit facilities ($400 million) and redeem its outstanding 9.375% senior notes ($175 million), 10% senior notes ($200 million), and 9% convertible notes ($86 million). The consolidated net tangible asset covenants in Pride's 9.375% and 10% senior notes limited Pride's ability to borrow under the revolving credit facilities. These transactions will improve Pride's liquidity position. The ratings reflect Pride's relatively weak credit profile, the regions where the company operates, and its competitive position in the oil and gas drilling market. A number of factors have contributed to Pride's weaker-than-expected credit profile, including problems with the technical services segment, persistent weakness in the shallow-water Gulf of Mexico, and a heavily leveraged balance sheet. Since mid-2003, the company has suffered from significant cost overruns on several new platform rig construction projects, including ExxonMobil's Kizomba A TLP in West Africa and BP's Holstein spar project in the U.S. Gulf of Mexico. In the latest twelve months (LTM) ended March 31, 2004, the technical service segment's operating losses approached $95 million. Additionally, Pride has significant exposure to the shallow waters of the Gulf of Mexico, a market that has been particularly weak recently. The total offshore rig count in that region has declined by about 50% since its peak in the spring of 2001 despite extremely strong commodity prices. Notably, to offset the weak environment in the Gulf of Mexico, Pride mobilized fourteen jackups and two semi-submersibles to Mexico, where activity is robust. Also contributing to Pride's weak credit profile are the debt- funded capital expenditures used to finance new builds and upgrades to its fleet in the past five years. Development of the company's drillships, several Amethyst-class semi-submersibles, and refurbishments on nearly all of its other semi-submersible fleet has been funded primarily with debt. These factors contributed to Pride generating negative free cash flow for the sixth consecutive year in 2003. Pride's LTM EBITDA as of March 31, 2004, was $359 million, providing adjusted interest coverage of 2.2 times (x) and adjusted debt-to-EBITDA of 5.7x. At quarter's end, Pride had $84 million of cash on hand, of which $43 million was restricted. The company also had $162 million available through its credit facilities but was prevented from further borrowings under either facility due to the previously mentioned consolidated net tangible asset covenants. Subsequent to the refinancing of the senior unsecured notes, total debt and lease obligations will be nearly $2 billion. Fitch has concerns with several regions where Pride has significant operations. In the intermediate term, Fitch is pessimistic about the prospects of shallow-water domestic drillers, given that demand in the shallow-water Gulf of Mexico has been limited despite strong cash flows from the upstream. This is evident by the weakness in the number of active jackups in the Gulf of Mexico. The focus of operators domestically has shifted to the deep-water Gulf of Mexico, where Pride's presence is limited. Additionally, Fitch has a cautious view of businesses operating in Argentina or Venezuela due to the political uncertainty in each country. Fitch currently has a sovereign rating of 'DDD' for Argentina and 'B-' for Venezuela. Pride competes in the offshore drilling market and is a market leader in the South American land drilling and service segment. The company's commodity fleet of 33 jackup rigs is best suited for shallow waters, with 80% of its fleet designed to drill in less than 300 feet of water. Nearly all of its jackups are equipped to drill depths of up to 20,000 feet. Its fleet of floating deepwater units consists of ten semi-submersibles and two dynamically positioned drillships. Of these twelve vessels, only six are capable of drilling in water depths greater than 5,000 feet. The company also operates 21 platform rigs, five tender-assisted rigs, and three barge rigs. Pride's onshore fleet consists of 249 land rigs, the majority of which are workover rigs located in Argentina and Venezuela. The company also provides a variety of oilfield services to customers in Argentina, Venezuela, Bolivia, and Peru. Services provided include integrated project management, directional and horizontal drilling, environmental drilling, cementing, and stimulation. SALPE S.R.L.: Court Authorizes Reorganization --------------------------------------------- Graphic arts company Salpe S.R.L. will proceed with reorganization after the Company trustee authorization from Judge Ballerini of Buenos Aires Court No. 24. According to Infobae, the court, which is assisted by Clerk No. 48 Dr. Diaz, appointed Ms. Alicia Zurron as trustee. Creditors have until August 31, 2004 to submit their proofs of claim to the trustee. The informative assembly, the last stage of a reorganization process, will be held on May 20 next year. CONTACT: Salpe S.R.L. Pasaje Doctor Diego Rivarola Buenos Aires Ms. Alicia Zurron, Trustee Avenida Corrientes 2963 Buenos Aires TARJETA NARANJA: $200M of Bonds Retain 'D' Rating ------------------------------------------------- Moody's Latin America Calificadora de Riesgo S.A. maintains a 'D' rating on US$200 million worth of bonds issued by Tarjeta Naranja S.A. The rating was given based on the Company's financial status as of March 31, 2004. The CNV described the affected bonds as "Programa de Obligaciones Negociables de Corto y Mediano Plazo," without indicating the maturity date of the issue. TELEFONICA DE ARGENTINA: Concession Talks Moving Forward -------------------------------------------------------- The renegotiation of the concession contract of Argentine fixed- telephony operator Telefonica de Argentina SA is making "great progress", a government source told daily La Nacion. The Company, a unit of Spanish telecom Telefonica SA, last month agreed to freeze tariffs for basic services throughout 2004 while the government pledged to renegotiate the Company's concession contract before year-end. Telefonica de Argentina reported net profits of ARS577 million (US$200.3mln) in the first quarter of 2004, bigger than the ARS405 million net profit it registered in the same year-ago. It also reported a net equity of ARS2.86 billion (US$991.3 million) for the January to March period. CONTACT: TELEFONICA DE ARGENTINA Tucuman 1, 18th Floor, 1049 Buenos Aires, Argentina Phone: (212) 688-6840 Home Page: http://www.telefonica.com.ar TOLDOS NAZCA: Enters Bankruptcy Protection, Liquidation Follows --------------------------------------------------------------- Judge Bavastro Modet of Buenos Aires Court No. 17 declared Toldos Nazca S.A. bankrupt, says La Nacion. The ruling comes in approval of the petition filed by the Company's creditor, Mr. Luis Zullo, for nonpayment of US$1,669.80 in debt. Clerk No. 33, Dr. Trevino Figueroa, assists the court on the case, which will conclude with the liquidation of the Company's assets. The court-appointed trustee, Ms. Dina Lorenzon, will examine and authenticate creditors' claims until August 29, 2004. CONTACT: Toldos Nazca S.A. Avenida Nazca 1057 Buenos Aires Ms. Dina Lorenzon, Trustee Viamonte 749 Buenos Aires TOP BOARD: Court Rules in Favor of Creditor's Bankruptcy Motion --------------------------------------------------------------- Cosena Seguros S.A. successfully sought for the bankruptcy of Top Board S.R.L. after Judge Villanueva of Buenos Aires Court No. 23 declared the Company "Quiebra," reports La Nacion. Cosena Seguro asked for the company's bankruptcy after the latter failed to pay debts amounting to US$453.62. The office equipment distributor will now start the liquidation process under the supervision of Ms. Susana Vacchelli. Creditors of the company must submit their proofs of claim to the trustee before August 26, 2004 for authentication. Failure to present claims within the verification period will disqualify creditors from the payments that will be made after the company's assets are liquidated. Dr. Timpanelli, Clerk No. 45, assists the court on the case, which will end in the liquidation of all of its assets. CONTACT: Top Board S.R.L. Leopoldo Marechal 950 Buenos Aires Ms. Susana Vacchelli Montevideo 571 Buenos Aires TRENES METROPOLITANOS: Stripped of Railway Contract --------------------------------------------------- The Argentine government rescinded passenger-train operator Trenes Metropolitanos' contract to run services on one of the main railway lines going into the capital, according to Dow Jones Newswires. The contract has been rescinded for "the bad state of the services," Planning Minister Julio de Vido said, adding that Trenes Metropolitanos had failed to meet a range of contractual obligations. Now, a committee consisting of three other private companies - Trenes de Buenos Aires SA, Ferrovias SA and Metrovias SA - will run the service for a "short time" and the government will then re-privatize the service, de Vido said. Trenes Metropolitanos won the contract to run the services on three railway lines in 1994. In 2000, the concession was extended until 2024. Meanwhile, Trenes Metropolitanos issued a press statement Wednesday saying it was indignant over what it called a "surprise" decision. "Up until this date the company hasn't been informed or fined (and) in addition, the state hasn't complied with its obligations either," the statement said. Trenes Metropolitanos will "evaluate follow-up actions with its legal advisors" once it receives formal notification of the government's decision. The train operator, which will continue running services on two other lines, would consider appealing the rescission if the government ended the contract, according to local press reports. =========== B R A Z I L =========== AES TIETE: Fitch Affirms Certificates at 'B-' --------------------------------------------- Fitch Ratings affirmed the rating on USD$300 million of 11.5% trust certificates issued by AES IHB Cayman, Ltd. (IHB) at 'B-'. The affirmation reflects the upgrade of Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A. (Eletropaulo) to 'B-' following the completion of its debt restructuring. The certificates are guaranteed by AES Tiete Holding, Ltd., a holding company of AES Tiete S.A. (Tiete), a publicly traded, Brazilian, hydroelectric generation company. Fitch has also affirmed the national scale rating of Tiete at 'BBB+(bra)'. The rating of the certificates is based on the underlying credit strength of Tiete and the quality and amount of dividends and distributions available to the holding company to pay debt service on the certificates. Eletropaulo, Tiete's primary offtaker, is estimated to supply approximately 70% of Tiete's 2004 revenues. Tiete benefits from a growing base of inflation-indexed contracted revenues (adjusted each July) increasingly derived from a long-term power purchase agreement (PPA) with Eletropaulo. The Eletropaulo PPA ramps up supply in 25% increments, which began in 2003 and is more favorably priced than Tiete's initial (privatization) contracts, which the Eletropaulo PPA is replacing. The company's operating cost structure is low and relatively stable, and operating company debt service is easily manageable. Fitch believes that Tiete's net income levels and its holding company's liquidity situation should improve in 2004 and thereafter as it is expected to receive greater dividends due to the growth in net earnings as the PPA with Eletropaulo ramps up. On May 21, 2004, Tiete distributed dividends related to 2003 net income to AES Tiete Empreendimentos S.A. (TE) and AES Tiete Participacoes S.A. (TP) in the amount of BRL32.8 million and BRL4.2 million, respectively. The dividends, in turn, were used to repay the outstanding intercompany loan with Tiete, resulting in an outstanding balance of approximately BRL22.2 million. As per the restructured certificate documentation, the interest payment of USD$11.3 million due to certificate holders on April 15, 2004 was deferred. Given the financial performance of Tiete so far in 2004, Fitch believes it is possible that the intercompany loan may be repaid in full and allow for a partial payment on interest at the next payment date of Oct. 15, 2004. Tiete is directly owned by TE and TP, now subsidiaries of Brasiliana. TE and TP own 71% of the voting shares of Tiete, which represents approximately 44% of the company's total capital stock. While TE and TP have effective control, they receive only 44% of dividends and distributions from Tiete, which provide the cash flow available for debt service on the certificates. TE and TP forward all payments to AES Tiete Holdings, Ltd., which will service the certificate. CONTACT: Jason Todd +1-312-368-3217, Chicago Mauro Storino +5521 4503-2600, Rio de Janeiro MEDIA RELATIONS: Brian Bertsch +1-212-908-0549, New York CESP: Outlines Investment, Debt Payment Prioritization Plans ------------------------------------------------------------ Mr. Mauro Arce, chairman of the board of Brazilian power generator Cesp, revealed that the utility will invest BRL150 million (US$48 million) by the end of 2004 to conclude the 1,980MW Porto Primavera hydroelectric complex, relates Business News Americas. Cesp, which has 7,500MW installed capacity, is seeking to conclude the project this year, so that it can focus on the restructuring of its debts next year. "Since 1995, we have increased generation capacity by 25% and we have built several dams. But because we have a very large debt, our efforts now will be channeled to conclude this project and from then on we will be investing only in maintenance," Arce said. Annual investment from 2005 onwards will be limited to BRL30 million, said Mr. Arce, who is also Sao Paulo state's energy and water resources secretary. Cesp has been restructuring its US$4 billion debt, which included a 1.2bn real loan from national development bank BNDES that will guarantee debt payments to the federal government through June next year, Arce said. In addition to limiting investment, the company also wants to increase power sale revenues by holding short-term power auctions to rebuild its portfolio after not being able to sell the 25% in initial contracts that expired in 2003. CONTACT: Companhia Energetica De Sao Paulo Rua da ConsolaO o, 1.875 CEP 01301 -100 S o Paulo, Brazil Phone: +55-11-234-6322 Fax: +55-11-287-0871 Home Page: http://www.CESP.com.br/ Contact: Mauro G. Jardim Arce, Chairman Ruy M. Altenfelder Silva, Vice Chairman Vicente Kazuhiro Okazaki, Finance Director EMBRATEL: Telmex Appoints President, CEO ---------------------------------------- Embratel Participacoes S.A. will now operate under the leadership of newly appointed president Mr. Carlos Henrique and chief executive officer Mr. Jose Formoso Martinez once the takeover by Telefonos de Mexico S.A (Telmex) is completed at the end of July. Bloomberg reports that Telmex announced the new appointments after the company received regulatory approval to acquire MCI Inc.'s Brazilian subsidiary. PARMALAT FINANZIARIA: Posts Period Ending May 31, 2004 Results -------------------------------------------------------------- Parmalat Finanziaria SpA in Extraordinary Administration communicates the Parmalat's Groups financial results as at 31 May 2004. Parmalat Finanziaria SpA RESULTS Highlights Revenues EBITDA % Revenues In millions of Euros 2003 2004 2003 2004 2003 2004 Core Activities* 1,519.5 1,484.4 89.3 101.3 5.9 6.8 Non-core Activities** 330.9 260.4 (21.5) (8.3) (6.5) (3.2) Activities In Special Procedures*** 372.9 232.4 (11.4) (31.7) (3.1) (13.6) Total 2,223.3 1,977.2 56.4 61.3 2.5 3.1 (*) Core Activities: consisting of drinks (milk and fruit juice), milk-based products, focused on approximately thirty brands (Global brands or strong local brands), focused on high potential countries in which there is a strong demand for healthy lifestyle products, a willingness to pay a premium price for Parmalat brands and the availability of leading edge technology. (**) Non-core Activities: consisting of countries and activities considered non-strategic which will be subject to disposal. (***) Activities subject to Special Procedures: consisting of businesses in countries outside Italy that are currently subject to restrictions to their management as a result of local bankruptcy proceedings. CORE ACTIVITIES Parmalat's Core Activity revenues have generally held up well compared to the same period in the previous year (EUR1,484.4 million compared to EUR1,519.5 million) while EBITDA increased by 13.4% to EUR101.3 million compared to EUR89.3 million in the same period in 2003. This improvement in operating results is largely as a result of initiatives of a commercial nature and thanks to operating cost reduction measures which have also been applied to the corporate structure. In particular, looking at the Group's principal geographic areas of operation, the following can be noted: Italy Revenues for the period reached EUR574.2, down 7.9% compared to the EUR623.8 million recorded in the same period in 2003. While revenues fell, EBITDA showed an improvement rising by 17.6% from EUR34.0 million at 31 May 2003 to EUR40.0 at 31 May 2004. This confirms the positive trend already seen last month, even if this is somewhat reduced as a result of a lower contribution from the fruit juice activities (-12% for the period January to May) compared to the same period in the previous year, whose sales were slowed by unfavourable weather conditions. Spain Revenues for the period were EUR91.0 million compared to EUR93.4 million achieved at 31 May 2003. EBITDA for the same period fell from EUR8.9 million to EUR5.9 million. The two factors largely responsible for the worsening of the result for the period were the increase in the cost of milk supplies compared to the previous year (+8.2%) that were not balanced by a corresponding increase in sale prices and the negative trend of a strong seasonal character relating to the sale of ice cream (Royne brand) which suffered as a result of weather conditions that slowed consumption. South Africa Revenues for the period of EUR93.1 million grew by 28.8% compared to the EUR72.3 million reported at 31 May 2003. EBITDA also increased considerably moving from EUR5.6 million at 31 May 2003 to EUR8.1 million at 31 May 2004. As indicated last month this increase in profitability has resulted from the acquisition of new brands, the optimization of the business' productive structure as well as the appreciation of the South African rand against the Euro. Venezuela The lack of credit lines for the importation of raw materials (powdered milk) resulted in reduced revenues which went from EUR78.6 million in May 2003 to EUR62.7 million in May 2004 (- 20.2%). This resulted in a strong decrease in operating profitability which fell from EUR11.5 million to EUR1.7 million, impacted also by an increase in local raw materials costs and higher structural costs. Canada The Canadian market showed slight growth at the revenue level moving from EUR457.1 million to EUR464.6 million while EBITDA of EUR27.2 million in May 2004 was 23.7% ahead of the same period last year (EUR22.0 million). This improved profitability results principally from an increase in cheese sales and from general and distribution cost containment. Australia Revenues reached EUR154.9 million up 7.3% compared to the EUR144.4 million in the same period in 2003. Similarly EBITDA for the period was EUR11.7 million compared to EUR10.5 million in the same period in the previous year (+10.9%). This improvement in results is down to a favourable exchange rate trend; and with regard to EBITDA a reduction in general and promotional costs also made a contribution. NON-CORE ACTIVITIES AND ACTIVITIES IN SPECIAL PROCEDURES The negative result for the businesses covered under these two headings is mainly due to the performance of the Brazilian and US operations. Brazil Revenues fell from EUR153.7 million to EUR45.4 million (-70.5%) and EBITDA worsened moving from a negative EUR9.9 million to a loss of EUR21.8 million. However in Brazil the Group's operations recently came back under Parmalat's control and a corporate restructuring plan is currently being drawn up as part of a Concordata procedure. In the meantime revenues have started to pick up compared to previous months (+18% in May compared to April). USA Consolidated results showed a fall in revenues (from EUR350.2 million at 31 May 2003 to EUR288.7 million at 31 May 2004) and a reduction in the operating result which moved from a loss of EUR5.8 million in 2003 to a loss of EUR7.6 million at 31 May 2004. The Dairy activities (milk and milk products) hit by a serious financial crisis, were put into a Chapter 11 procedure. This crisis has resulted in a significant reduction in revenues and are worsening in EBITDA. The Bakery activities produced lower revenues but a significantly improved operating result (even though this is still in negative territory) thanks to the process of reorganization currently underway. NET FINANCIAL POSITION: Highlights Values in millions of Euros As at As at 31 May 2004 31 December 2003 Short-term Financial Assets (121.0) (121.3) of which: Liquid financial assets (0.9) (20.9) Available liquidity (120.1) (100.4) Accruals on Financial Assets (63.1) (61.9) Total Short-term Financial Assets (184.1) (183.2) Financial Debt 13,762.5 13,457.5 Accruals on financial liabilities 263.5 256.2 Total Financial Liabilities 14,026.0 13,713.7 Financial Indebtedness 13,841.9 3,530.5 In addition, further financial debt of EUR132.0 million needs to be taken into account in relation to the situations as at 31 December 2003 and 31 May 2004, this relating to companies that are not totally consolidated, and connected and controlling companies. The above figures still contain an element of uncertainty as regards some companies in the Group that are subject to restrictions as a result of local procedures (Brazil and USA Dairy specifically). Financial debt should be considered as being largely short-term in nature, given the current situation of theoretical default on the covenants underlying the financing contracts. Some companies are in talks to renegotiate their debt in order to consolidate it. At 31 May a debt of EUR250 million was inserted relating to the financing of a foreign subsidiary company carried out in 2002 which envisaged a possible conversion into equity. Parmalat has deemed it appropriate to forgo this option instead registering with the subsidiary company a debt for the same amount. Given the above the net financial position of the Group is substantially unchanged and impacted by two events: - on the asset side there has been an increase in the level of available liquidity largely thanks to the close attention paid to the management of available resources and to the disposal of Parmalat SpA's holdings in MCC SpA and Banca di Roma SpA and Parmalat Finanziaria SpA's disposal of its holding in Fondo Alfieri. - On the liabilities side there has been a small increase almost entirely resulting from a worsening of exchange in the exchange rate between the Euro and currencies in countries outside Europe where the Group operates, and by an increase in accruals on liabilities for interest. No use has been made until now of the line of credit of EUR105,8 million provided by a pool of banks on 4 March 2004. Main companies in Extraordinary Administration The following tables summarises situations of the main Italian Companies in Extraordinary Administration Parmalat Finanziaria SpA Values in millions of Euros As at As at 31 May 2004 31 December 2003 Short-term Financial Assets (172.8) (172.3) Of which: Intercompany financial credit (171.8) (171.8) Liquid Financial assets 0.0 (0.5) Avauilable liquidity (1.0) 0.0 Accruals on financial assets (incl. Interco.) 0.0 (0.6) Total short-term financial assets - 172.8 (172.9) Financial Debit (incl. Intercompany debt) 1,268.4 1,268.4 of which: Intercompany Finacial Debt 1,006.4 1,006.4 Other Financial Debt 262.0 262.0 Accruals on Financial Liabiilties (incl. Interco.) 4.7 4.8 Total Financail Liabilities 1,273.1 1,273.2 Financial Indebtedness 1,100.3 1,100.3 The net financial position of the company is substantially unchanged with a small increase in available liquidity even given the disposal during the course of May 2004 of its holding in Fondo Alfieri. Parmalat SpA Values in millions of Euros Situation Situation at at 31 May 2004 31 December 2003 Short-term Financial Assets (64.8) (53.9) of which: Intercompany Financial Credit (44.6) (27.6) Liquid Financial Assets 0.0 (19.7) Available Liquidity (20.2) (6.6) Accruals on Financial Assets (incl. Interco.) 0.0 0.0 Total Short-term Financial Assets (64.8) (53.9) Financial Debt (incl. Intercompany Debt) 3,912.8 3,912.8 of which: Intercompany Financial Debt 1,030.0 1,030.0 Other Financial Debt 2,882.8 2,882.8 Accruals on Financial Liabilities (incl. Interco.) - - Total Financial Liabilities 3,912.8 3,912.8 Financial Indebtedness 3,848.0 3,858.9 The net financial position of Parmalat SpA presents a positive variation for the period (moving from -EUR3,859.0 to - EUR3848.1, an improvement of EUR10.9 million). Liabilities were unchanged while available financial resources were positively effected by the disposal of holdings in MCC SpA and Banca di Roma SpA. These disposals, along with the performance of the operating business generated new cash that allowed for, above and beyond covering the ongoing requirements of the business, an increase in total available liquidity (moving from EUR6.6 million to EUR20.2 million) and the granting of inter-company credits for an amount of EUR16.7 million, principally in favour of units in North America (EUR10.7 million), Uruguay (EUR1.7 million) and Germany (EUR1.6 million) and the payment of suppliers with a privileged position (advisors to the Administration procedure). Eurolat SpA Values in millions of Euros As at As at 31 May 2004 31 Deember 2003 Short-term Financial Assets (11.3) (13.6) of which: Intercompany Financial Credit 0.0 0.0 Liquid Financial Assets 0.0 0.0 Available Liquidity (11.3) (13.6) Accruals on Financial Assets (incl. Interco.) (0.1) 0.0 Total Short-term Financial Assets (11.4) (13.6) Financial Debt (incl. Intercompany Debt) 192.9 191.9 of which: Intercompany Financial Debt 45.8 45.8 Other Financial Debt 147.1 146.1 Accruals on Financial Liabilities (incl. Interco.) 0.5 1.5 Total Financial Liabilities 193.4 193.4 Financial Indebtedness 182.0 179.8 This company also saw its debt position stabilize having had no requirement to seek new financing. The variation in the Other Financial Debt line as at 31 May 2004 compared to 31 December 2003 is at a result of reclassifications relating to already made accruals for liabilities at the close of the previous financial year. Lactis SpA Values in millions of Euros As at As at 31 May 2004 31 December 2003 Short-term Financial Assets (3.1) (0.4) of which: Intercompany Financial Credit 0.0 0.0 Liquid Financial Assets 0.0 0.0 Available Liquidity (3.1) (0.4) Accruals on Financial Assets (incl. Interco.) 0.0 (0.0) Total Short-term Financial Assets (3.1) (0.4) Financial Debt (incl. Intercompany Debt) 20.5 20.5 of which: Intercompany Financial Debt 8.6 8.6 Other Financial Debt 11.9 11.9 Accruals on Financial Liabilities (incl. Interco.) 0.0 0.1 Total Financial Liabilities 20.5 20.6 Financial Indebtedness 17.4 20.2 Available liquidity increased from EUR0.4 million to EUR3.1 million, while financial liabilities remained unchanged compared to 31 December 2003. =================================== D O M I N I C A N R E P U B L I C =================================== AES EDE-ESTE: Contracts Unauthorized $50M Loan, Audit Shows ----------------------------------------------------------- Dominican Republic daily newspaper Hoy reports that AES Ede-Este power distributor contracted a US$50 million loan at an annual interest rate of 18%, when the average rate being offered by banks fluctuated from 10-13%, relates DR1 Daily News. According to an audit carried out at the Company revealed that the loans did not have the due authorization of the board of directors. The audit showed that from March to June of 2000, the Company received US$38 million in loans from the company affiliate that took out the loan, despite not having the proper authorization. =========== G U Y A N A =========== * Guyana Secures US$22.5 Mln Loan From IDB ------------------------------------------ Program supports infrastructure, research, diversification The Inter-American Development Bank announced Wednesday the approval of a $22.5 million concessional loan to Guyana to improve the competitiveness of agriculture through investments in infrastructure, training, research and diversification. The program will finance civil works to improve drainage and irrigation in selected areas, institutional development, rice seed research and production, and agricultural diversification. Farmers training and extension services will be strengthened under the program, and support will be provided for the establishment of Water User Associations, which will empower farmers to better manage secondary drainage and irrigations systems, maintain canals and control costs. The project, to be carried out by the Ministry of Agriculture*, reflects the IDB country strategy of supporting sustainable economic growth, as the agricultural sector accounts for a significant share of the country's economic output. The IDB loan is for a 40-year term, with a 10-year grace period, at an annual interest rate of 1 percent during the grace period and 2 percent thereafter. Local counterpart funds total $2.5 million. Since 1977 the IDB has loaned Guyana more than $200 in loans for projects related to agriculture, supporting institutional reform and higher productivity. In other loans earlier this year, the Bank approved $88.3 million in low-interest loans to Guyana to help finance improvements in surface transportation, health services and public fiscal management. =========== M E X I C O =========== GRUPO MEXICO: S&P Puts 'B-' Rating On CreditWatch Positive ---------------------------------------------------------- Standard & Poor's Ratings Services said today that it placed its 'B-' long-term corporate credit rating on Grupo Mexico S.A. de C.V. (Gmexico) on CreditWatch with positive implications. Additionally, the 'CCC+' long-term corporate credit ratings on Americas Mining Corp. (AMC) and its subsidiaries (Southern Peru Copper Corp., Minera Mexico S.A. de C.V., and ASARCO Inc.) were placed on CreditWatch with positive implications. Positive implications mean that the ratings could be raised or affirmed following completion of Standard & Poor's review. The CreditWatch placement reflects the companies' better financial profile due to both the strong copper price environment and factual and expected debt reductions. Copper prices have changed last year's negative trend and so far this year, the average copper price has been above 120.0 U.S. cents per pound, which compares favorably with 2003's average price of 80.7 U.S. cents per pound. Standard & Poor's believes that the current copper price environment will allow the company to continue to make additional early debt amortizations. "Standard & Poor's will monitor whether Gmexico continues to improve its operating performance and financial profile, as well as whether copper prices remain strong," said Standard & Poor's credit analyst Juan P. Becerra. Gmexico is the holding company of Grupo Ferroviario Mexicano (GFM), a railroad company, and AMC, a mining company. AMC, the worldwide third-largest copper producer, fully owns Minera Mexico and ASARCO, and has a 54.2% ownership of Southern Peru Copper Corp.; GFM fully owns Ferrocarriles Mexicanos, the longest railroad in Mexico. GRUPO MEXICO EXPORT: Watch Positive Shift on S&P Ratings -------------------------------------------------------- Standard & Poor's Ratings Services placed its 'CCC+' rating on Grupo Mexico Export Master Trust No. 1's secured export notes series C and D on CreditWatch with positive implications. In addition, the 'CCC+' rating on Minera Mexico S.A. de C.V.'s (MM) guaranteed senior notes (series A and B) was also placed on CreditWatch with positive implications. The 'AAA' rating on Grupo Mexico Export Master Trust No. 1's series E notes, insured by MBIA Insurance Corp. ('AAA' financial enhancement rating), was affirmed. The rating actions follow the June 23, 2004, placement of the 'CCC+' long-term foreign and local currency corporate credit ratings on MM, the world's largest producer of refined silver, on CreditWatch with positive implications. The rating action on the corporate credit rating reflects the company's better financial profile, caused by the strong copper price environment and factual and expected debt reductions. Last year's negative trend in copper prices has ended; so far this year, the average copper price has been above US120.0 cents per pound, which compares favorably with 2003's average price of US80.7 cents per pound. Standard & Poor's believes that the current copper price environment will allow the company to continue to make additional early debt amortizations. Standard & Poor's expects to review the company's strategy and projections, and their potential effects on the structured notes in the next few weeks to resolve the CreditWatch status. The structured export notes securitize the proceeds of copper and zinc export sales of MM and its principal operating subsidiaries. As is typical with a future flow transaction, the proceeds of the sold export sales are captured offshore in a segregated collection account under the control of the trustee. All export sales are denominated and paid in U.S. dollars. Grupo Mexico, of which MM is a subsidiary, is Mexico's largest mining company and one of the largest mining conglomerates in the world. CONTACT: Maria Tapia, Mexico City (52) 55-5081-4415 Juan Pablo De Mollein, New York (1) 212-438-2536 Juan P. Becerra, Mexico City (52) 55-5081-4416 GRUPO TMM: Begins Restructuring Plan's Next Phase ------------------------------------------------- Grupo TMM, S.A. (NYSE:TMM and BMV:TMM A) ("Grupo TMM" or the "Company") announced Wednesday that it has commenced its exchange offer for all of its outstanding 9 1/2 percent Notes due 2003 (the "2003 notes") and its 10 1/4 percent Senior Notes due 2006 (the "2006 notes" and together with the 2003 notes, the "existing notes"). The exchange offer is being conducted to implement the previously announced restructuring of the existing notes. The Company has entered into voting agreements with the holders of approximately 72 percent of the outstanding principal amount of the existing notes, pursuant to which they have agreed to support the restructuring and to exchange their existing notes. The Company is also soliciting consents to the proposed amendments to the indenture governing the 2006 notes and acceptances of a pre-packaged plan of reorganization described below. The pre-packaged plan would, if confirmed, implement the restructuring on essentially the same terms as the exchange offer. In the exchange offer, the Company is offering to exchange $1,000 principal amount of the Company's newly issued Senior Secured Notes due 2007 (the "new notes") for each $1,000 principal amount of existing notes validly tendered in the exchange offer. Holders whose consents are validly received prior to Thursday, July 8, 2004, (the "consent date") will be entitled to receive as a consent fee a pro rata portion of approximately $21.1 million of new notes. Accrued unpaid interest on the existing notes through the settlement date of the exchange offer will be paid in additional new notes with a principal amount equal to the amount of the accrued interest. On July 22, 2004, the current expiration date of the exchange offer, the amount of accrued interest on the 2003 notes and the 2006 notes will be approximately $186 and $190, respectively, per $1,000 principal amount of such existing notes. The new notes will be guaranteed on a senior basis by each of the Company's wholly-owned subsidiaries and will be secured by a pledge of certain assets of the Company and the guarantors. The new notes will bear interest initially at 10 1/2 percent per annum, payable, at the option of the Company, in cash or in additional new notes, provided that the Company must pay at least 2 percent per annum in cash interest. If the Company elects to pay a portion of the interest in additional new notes, the interest rate will increase. The new notes will mature on August 1, 2007, subject to the right of the Company to extend the maturity until August 1, 2008, under certain circumstances. The new notes are redeemable at any time at the option of the Company, and the Company is required to redeem or repurchase notes with the proceeds of certain assets sales or other payments. The exchange offer will expire at, and the ballots for the pre- packaged plan must be received by, 5:00 p.m., New York City time, on Thursday, July 22, 2004, unless extended. Holders whose consents are validly received may not withdraw any existing notes once they are tendered, except under limited circumstances. The primary purpose of the consent solicitation is to eliminate substantially all of the restrictive covenants of the indenture governing the 2006 notes. Holders who tender their 2006 notes in the exchange offer will be deemed, as a condition to a valid tender, to have given their consent to the proposed amendments to the indenture governing the 2006 notes. Concurrent with the exchange offer, the Company is also soliciting votes to accept a pre-packaged plan of reorganization under chapter 11 of the United States Bankruptcy Code or, at the Company's election, Mexican bankruptcy law, which, if confirmed, would accomplish the restructuring on substantially the same terms as the out-of- court restructuring through the exchange offer. Grupo TMM only expects to seek confirmation of the pre-packaged plan of reorganization if the minimum tender condition to its exchange offer is not satisfied or waived. The exchange offer is conditioned upon, among other things, receipt of valid tenders (including exchanges pursuant to the voting agreements) representing at least 98 percent of the outstanding principal amount of the 2003 notes and at least 95 percent of the outstanding principal amount of the 2006 notes. Pursuant to the voting agreements, holders of approximately 71 percent of the 2003 notes and approximately 72 percent of the 2006 notes have agreed to exchange their existing notes for new notes and to vote in favor of the pre-packaged plan of reorganization. Accordingly, the Company believes that it should have sufficient support from the holders of the existing notes to complete the restructuring through the pre-packaged plan if the minimum tender condition of the exchange offer is not met. Questions regarding the proposed restructuring should be directed to Martin F. Lewis and Ronen Bojmel at Miller Buckfire Lewis Ying & Co., LLC, the Company's financial advisor, or Alan D. Fragen and Oscar A. Mockridge of Houlihan Lokey Howard & Zukin Capital, the Ad Hoc Bondholders' Committee's financial advisor. Akin Gump Strauss Hauer & Feld LLP is legal counsel to the Ad Hoc Bondholders' Committee. Martin F. Lewis Ronen Bojmel Miller Buckfire Lewis Ying & Miller Buckfire Lewis Ying & Co., LLC Co., LLC 250 Park Avenue 250 Park Avenue New York, New York 10177 New York, New York 10177 Telephone: (212) 895-1805 Telephone: (212) 895- 1807 Email: martin.lewis@mbly.com Email: ronen.bojmel@mbly.com and Alan D. Fragen Oscar A. Mockridge Houlihan Lokey Howard & Houlihan Lokey Howard & Zukin Capital Zukin Capital 1930 Century Park West 685 Third Avenue Los Angeles, California 90067 New York, New York 10017 Telephone: (310) 788-5338 Telephone: (212) 497- 4175 Email: afragen@hlhz.com Email: omockridge@hlhz.com Miller Buckfire Lewis Ying & Co., LLC and Elek, Moreno-Valle y Associados are acting as financial advisors to Grupo TMM in connection with the exchange offer and the restructuring. Headquartered in Mexico City, TMM is a Latin American multimodal transportation company. Through its branch offices and network of subsidiary companies, TMM provides a dynamic combination of ocean and land transportation services. TMM also has a significant interest in Transportacion Ferroviaria Mexicana (TFM), which operates Mexico's Northeast railway and carries over 40 percent of the country's rail cargo. The exchange offer and consent solicitation are made solely by the prospectus dated June 23, 2004, the related letter of transmittal and consent, and the ballot for the pre-packaged plan. These documents contain important information about the Company and the proposed restructuring. Investors and holders of the existing notes are urged to read these documents carefully. Copies of the prospectus and transmittal materials can be obtained from Innisfree M&A Incorporated, the solicitation agent, information agent and voting agent for the exchange offer and solicitation, at the following address: Innisfree M&A Incorporated 501 Madison Avenue, 20th Floor New York, NY 10022 (877) 750-2689 (toll free) Fax: (212) 750-5799 CONTACT: Grupo TMM Investor Relations Mr. Brad Skinner 011-525-55-629-8725 brad.skinner@tmm.com.mx Dresner Corporate Services General Investors, Analysts and Media Ms. Kristine Walczak 312-726-3600 kwalczak@dresnerco.com Proa/StructurA Media Relations Mr. Marco Provencio 011-525-55-629-8708 011-525-55-442- 4948 mp@proa.structura.com.mx Web Site: www.tmm.com.mx PARMALAT MEXICO: Milk Company Seeks to Acquire Assets ----------------------------------------------------- Mr. Eduardo Tricio, president of Grupo Industrial Lala, confirmed to local daily Reforma that his company is in talks to buy Parmalat Finanziaria S.p.A.'s assets in Mexico, relates Dow Jones Newswires. The executive, however, declined to put a dollar value on the assets. Lala, Mexico's biggest milk company, is eyeing Parmalat's local assets, which include one plant and three distribution centers that supply 300 million liters of milk, or 7% of domestic consumption. Milan-based Parmalat filed for bankruptcy protection from creditors in December following a management fraud scandal. The insolvent Italian dairy products concern then announced in March that it would sell off assets in about 20 countries, including Mexico. At the time, Parmalat's Mexican unit said the Company's local operations required investment beyond the group's ability under present conditions. SATMEX: Scrambles to Negotiate $205M Loan With Creditors -------------------------------------------------------- Mexican satellite operator Satmex may lose its Satmex 6 satellite to creditors before it can even launch it, indicates Business News Americas. Satmex is currently in negotiations with creditors to restructure a US$205-million syndicated loan. Failure to reach an accord before the principal payment of the loan expires on July 1 may drive creditors to resort to legal means, eventually seizing the Satmex 6 satellite in order to recover some assets. But the Company is confident that it will be able to reach a compromise with creditors before July 1 allowing for the restructuring of the current debt by exchanging it with a new long-term liability. Satmex could also surrender a portion of its capital to sweeten the deal. On August 2003, Satmex missed service payments totaling US$16.2 million for the US$320 million loan due in November. Apart from this debt and the one maturing this month, the Company also faces a US$188-million debt with the Mexican government maturing in December. Last year, the Company's sales dipped to US$85 million after the failure of its Solidaridad 1 satellite, further hurting its restructuring efforts. VITRO: Contemplates $150M Private Bond Placement ------------------------------------------------ Vitro, S.A. de C.V. ("Vitro") (NYSE: VTO - News; BMV: VITROA) announced Wednesday that its subsidiary Vitro Envases Norteamerica S.A. de C.V. ("VENA") is evaluating several possible financing transactions, including the possibility of offering, subject to market and other conditions, approximately US$150 million of senior secured guaranteed notes (the "Notes") in a private placement pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (the "Securities Act"). The possible transaction is one of several financing transactions being evaluated by VENA at this time. VENA is currently assessing market conditions for the possible offering. Depending on VENA's assessment of those market conditions and other factors, including but not limited to, subsequent changes in market conditions and the status or terms of other possible transactions, VENA may decide to proceed with the offering, to change the terms of the offering, to pursue other financing transactions or to not pursue the possible transaction or any other transaction at this time. The Notes being considered would be issued by VENA and guaranteed by VENA's principal Mexican subsidiaries and Vitro Packaging. The Notes would be secured by liens on most of VENA's and its subsidiaries' assets. The collateral may be shared with other creditors of VENA and its subsidiaries. Neither VENA nor any person acting on its behalf makes any representations or warranties as to the likelihood of any possible transaction or the terms thereof. The Notes have not been, and will not be, registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of the Securities Act. This press release is neither an offer to sell nor a solicitation to buy the Notes. Vitro, through its subsidiary companies, is one of the world's leading glass producers. Vitro is a major participant in three principal businesses: flat glass, glass containers and glassware. Vitro serves multiple product markets, including construction and automotive glass; food and beverage, wine, liquor, cosmetics and pharmaceutical glass containers; glassware for commercial, industrial and retail uses, and aluminum containers. Founded in 1909 in Monterrey, Mexico-based Vitro has joint ventures with major world-class partners and industry leaders that provide its subsidiaries with access to international markets, distribution channels and state-of-the- art technology. Vitro's subsidiaries have facilities and distribution centers in eight countries, located in North, Central and South America, and Europe, and export to more than 70 countries worldwide. CONTACT: Media Mexico D.F. Mr. Eduardo Cruz Vitro, S. A. de C.V. +52 (55) 5089-6904 ecruz@vitro.com Web Site: www.vitro.com ======= P E R U ======= PANAMERICANA: Delgado Parker Secures Control of Network ------------------------------------------------------- Peruvian businessman Genaro Delgado Parker gained the upper hand in the legal battle for control of Panamericana Television that has nearly brought the Company on the throes of bankruptcy. According to EFE, Mr. Delgado Parker took possession of one of the facilities of Panamericana on Friday after a court injunction solidified his claim on the Company. The facilities had been in the hands of rival shareholder Ernesto Schutz for almost a year. The dispute over control of the broadcast outfit started when Mr. Delgado Parker assumed command of the Company after Mr. Ernesto Schutz Sr., the majority owner of the network and father of Ernesto Schutz, was arrested for bribery in Argentina. EFE adds that Mr. Fernando Viana, speaking for the Schutz camp, hinted that the Mr. Delgado Parker used his connections with the presidential palace and Peruvian President Alejandro Toledo to gain a favorable decision from the court. ================================= T R I N I D A D & T O B A G O ================================= CDC: Defends Lock-Out Action in Court Hearing --------------------------------------------- An injunction against CDC's lock-out action would permanently impair the company's right to lock out workers, argued the company's senior counsel, Seenath Jairam, during the hearing at the Industrial Court on Wednesday. The lawyer also asserted that the court should not set a precedent for other unions who might follow similar practices in the future. The Trinidad Guardian relates that Attorney Jairam questioned Union head Roberto Guiseppi's claims that the he was not aware of the company's terms and conditions for the lock-out. The union had based its injunction arguments on allegations that these terms were not on the lock-out notices. However, Attorney Jairam counters that the union was aware of the lock out terms because Guiseppi had previously discussed them in two Guardian articles. Further, the lawyer pointed out that the legitimacy of the lock- out should be based on whether the notices from CDC ended up in the right hands or were in the correct format. Senior Counsel Douglas Mendes and assistant Donna Prowell will respond in behalf of the union workers on the next hearing scheduled on June 30. *********** 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 Lucilo Junior M. Pinili, Editors. Copyright 2004. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is $575 per half-year, delivered via e-mail. 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