/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040708.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, July 8, 2004, Vol. 5, Issue 134 Headlines A R G E N T I N A AGUAS ARGENTINAS: ARI Party Seeks To Nullify Government Accord BANCO NACION: Government to Call for New Bank Audit Bids BOUCLES S.R.L.: Court Issues Bankruptcy Ruling CLINICA COLON: Trustee Finalizing Claims Verifications EDEMSA: Three Buyers Await French Government OK on Takeover FLORIDA AUTOMOTORES: Trustee to Conclude Claims Review Today INTERBRICK S.R.L.: Court Declares Company Bankrupt JOCKEY CLUB: Claims Verification Deadline Reached LA ESPIGA: Debt Payments Halted, Set To Reorganize LUDO: Creditor Claims Filing Due Today MEDECAL S.A.: Judge Approves Bankruptcy PANELMASTER: Seeks Bankruptcy Protection SIDERAR: Details $82M Investment for Current Year Operations B E R M U D A FOSTER WHEELER: Institutional Investors Backing Exchange Deal GLOBAL CROSSING: Re-Attains NASDAQ NM Listing NORTHERN OFFSHORE: Damaged Ship Repair Cost $1M, Lost Revenues B R A Z I L EMBRATEL: Strikes Marketing Alliance With Drugstore Chain GERDAU: Allocates BRL83 Million for Ceara Subsidiary Expansion E C U A D O R PACIFICTEL: Interim President to Become Permanent Head PACIFICTEL: Arbitration Panel Favors Company in LAT Dispute E L S A L V A D O R BANCO AGRICOLA: Cabei Authorizes $30M Loan TESAL: Fitch Leaves Rating Unchanged M E X I C O HYLSAMEX: Reports Preliminary 2Q04 EBITDA of $222M P A N A M A BLADEX: Adopts New Branding Strategy, Corporate Identity V E N E Z U E L A PDVSA: Delayed 2003 Results to be Filed in September PDVSA: Plans $9.5 Bln Outlay In Five Years - - - - - - - - - - ================= A R G E N T I N A ================= AGUAS ARGENTINAS: ARI Party Seeks To Nullify Government Accord -------------------------------------------------------------- Argentina's leftist ARI party is seeking to invalidate a transitional accord signed between waterworks operator Aguas Argentinas and the government in May, reports Dow Jones Business News. In a press statement issued Tuesday, the party said it will ask a federal judge to block the bridge agreement because the executive branch violated aspects of two laws that regulate the renegotiation of public service contracts. One of the laws in question was emergency legislation passed in July 2002 during the country's economic crisis, and the other law, passed in October 2003, extends the contract renegotiation period until Dec. 31, 2004. Under those two laws, new public service contracts must be approved by Argentina's congress. However, the government signed the bridge agreement with Aguas in May even without congressional approval, presumably because the accord was a transitional one and not the final concession. "The ARI expresses its absolute rejection of the accord signed, and it considers that conditions have been given for the recission of Aguas Argentinas' contract," the press statement said. BANCO NACION: Government to Call for New Bank Audit Bids -------------------------------------------------------- Argentina is canceling the current tender to select a consultancy to audit federal bank Banco de la Nacion, reports Business News Americas. Sources close to the government revealed that bidders in the current bid lack experience in federal bank audits. The bidders, which presented their bids for the Nacion contract on May 5, are Booz Allen Hamilton, AON Consulting, DFC, and Aguirre y Gonzalez y Suarez y Menendez. Regulators are now planning to call for a new tender for the contract. The audit is part of an agreement between the government and the IMF to restructure Argentina's major state banks. Under the agreement, the tender process for the bank should be completed by the end of June. But since that is not the case, the Argentine government may have to request a so-called waiver from the IMF on the tender issue. BOUCLES S.R.L.: Court Issues Bankruptcy Ruling ---------------------------------------------- Judge Chomer of Buenos Aires Court No. 10 declared Boucles S.R.L. bankrupt, says La Nacion. The ruling comes in approval of the bankruptcy petition filed by the Company's creditor, Mr. Jorge Ceballos, for nonpayment of US$38,128 in debt. The Company's trustee, Mr. Jorge Ceballos, will examine and authenticate creditors' claims until September 30, 2004. This is done to determine the nature and amount of the Company's debts. Clerk No. 20, Dr. Gigglberger, assists the court on the case, which will conclude with the liquidation of the Company's assets. CONTACT: Boucles S.R.L. Esmeralda 584 Buenos Aires Mr. Jorge Ceballos, Trustee Aguaribay 6736 Buenos Aires CLINICA COLON: Trustee Finalizing Claims Verifications ------------------------------------------------------ The Lomas de Zamora civil and commercial tribunal is scheduled to receive individual reports pertaining to the Clinica Colon S.R.L. reorganization today, July 8, 2004. The individual reports, prepared by court-appointed trustee Ms. Patricia Monica Narduzzi, contain information on creditors' claims that will serve as basis for the settlement plan being prepared by the Company. The informative assembly, the last stage of a reorganization process, will be held on December 14, 2004. CONTACT: Ms. Patricia Monica Narduzzi Rodriguez Peña 296 Banfield Lomas de Zamora EDEMSA: Three Buyers Await French Government OK on Takeover ----------------------------------------------------------- EDF, France's state-controlled power company, formally agreed to sell its interest in troubled Argentine energy distributor Edemsa to a group of local businessmen, reports Business News Americas. In a deal signed July 1, EDF agreed to sell control of the unit to Argentine businessmen Jose Angulo, Jacques Matas and Omar Alvarez for US$50 million. The businessmen reportedly have the backing of an unidentified foreign investor who would finance the purchase. Already, Mr. Yves Desrousseaux, EDF Americas representative, has given a go-signal to the sale, which will take three months of "bureaucratic paperwork" to be approved by the French government, EDF's controllers. EDF, through the Sodemsa consortium, purchased Edemsa for US$237 million in a 1998 privatization. Edemsa has over 1,000km of high voltage transmission lines, over 12,000km of distribution lines, and a 110,000sq. km concession area. Edemsa has been buffeted by the country's rates freeze in recent months. The pesofication of these rates as well as the end of dollarization has also affected the company's bottom line. FLORIDA AUTOMOTORES: Trustee to Conclude Claims Review Today ------------------------------------------------------------ The trustees supervising the Florida Automotores S.A. bankruptcy, Ms. Ines Etelvina Clos and Mr. Ruben Eduardo Calgano, will conclude the validation of creditors' claims today, July 8, 2004. Once the claims are reviewed, the trustee will prepare individual reports and submit it in court on September 6, 2004. CONTACT: TRUSTEES Ms. Ines Etelvina Clos Mr. Ruben Eduardo Calgagno Lavalle 715 Buenos Aires INTERBRICK S.R.L.: Court Declares Company Bankrupt -------------------------------------------------- Judge Dieuzeide of Buenos Aires Court No. 1 declared local company Interbrick S.R.L Bankrupt, relates La Nacion. The bankruptcy order was issued upon the request of Mr. Jacinto Ibanez for unpaid debts totaling US$1,451.38. The Company will undergo the bankruptcy process with Ms. Lydia ALbite as its trustee. Creditors are required to present their proofs of claims to the trustee for verification before September 17, 2004. Creditors who fail to have their claims authenticated by the said date will not qualify for the payments to be made after the Company's assets are liquidated at the end of the bankruptcy process. Dr. Fernandez Garello, Clerk No. 1, assists the court on the case. CONTACT: Interbrick S.R.L. Estomba 2226 Buenos Aires Ms. Lydia Albite, Trustee Tacuari 119 Buenos Aires JOCKEY CLUB: Claims Verification Deadline Reached ------------------------------------------------- Creditors of Jockey Club Mar del Plata must have submitted proofs of their claims by today, July 8, 2004, to qualify for disbursements to be made once the company's assets are liquidated. All claims for validation should be coursed through Ms. Adriana Mabel Sereno the court-appointed trustee serving on this case. CONTACT: Jockey Club Mar del Plata Salta 2269 Mar del Plata Ms. Adriana Mabel Sereno, Trustee Mariani 4780 Mar del Plata LA ESPIGA: Debt Payments Halted, Set To Reorganize -------------------------------------------------- The Buenos Aires civil and commercial tribunal is currently reviewing the merits of the reorganization petition filed by Le Espiga de Oro S.A. Reorganization will allow the troubled food company to avoid bankruptcy by negotiating a settlement with its creditors. La Nacion recalls that the company filed the petition following cessation of debt payments since August 31, 2003. Judge Kolliker Frers of Buenos Aires Court No. 16, with the assistance of Clerk No. 31 Dr. Ibarzabal, handles the Company's case. CONTACT: La Espiga de Oro S.A. Rivadavia 1157 Buenos Aires LUDO: Creditor Claims Filing Due Today -------------------------------------- Mr. Luis Juan Kuklis, the trustee supervising the liquidation of Ludo S.A., will close the verification of claims today, July 08, 2004. Creditors with unverified claims will not be able to participate in the payments to be made upon the liquidation of the Company's assets. CONTACT: Ludo S.A. Avda Roque Saenz Pe¤a 943 Buenos Aires Mr. Luis Juan Kuklis, Trustee Lavalle 1619 Buenos Aires MEDECAL S.A.: Judge Approves Bankruptcy --------------------------------------- Medecal S.A., a financing firm based in the city of Buenos Aires, was declared bankrupt after Judge Garibotto of the city's Court No. 2 endorsed the petition filed by Ms. Laura Wojciechowski for the Company's liquidation. Argentine daily La Nacion reports that the creditor has claims totaling US$50,000 against Medecal. Mr. Fancisco Granja will supervise the liquidation process as trustee. He will verify creditors' proofs of claims until September 20, 2004. CONTACT: Medecal S.A. Pasaje del Carmen 750 Buenos Aires Mr. Francisco Granja, Trustee Parana 467 Buenos Aires PANELMASTER: Seeks Bankruptcy Protection ---------------------------------------- Panelmaster S.A., a paper company operating in Buenos Aires, has filed for bankruptcy after defaulting on its debt payments since February 1, 2002. The case is pending before Judge Villar of the city's Court No. 13. Dr. Guerri, Clerk of Court No. 25, assists on this case. CONTACT: Panelmaster S.A. Marcelo Torcuato de Alvear 1381 Buenos Aires SIDERAR: Details $82M Investment for Current Year Operations ------------------------------------------------------------ Argentine steelmaker Siderar will allocate US$82 million for operations this year, AE Setorial reports, citing a Siderar executive. Mr. Daniel Novegil, Executive VP at Siderar's 51%- owner, Buenos Aires-based Techint, the Company will spend US$25 million to restart a blast furnace, US$45 million to "fine tune" production, and US$12 million to upgrade IT. Additionally, the Company seeks to expand its presence in the local auto industry, which is showing some signs of recovery. Siderar produced 2.5Mt of steel in 2003, a company record. ============= B E R M U D A ============= FOSTER WHEELER: Institutional Investors Backing Exchange Deal ------------------------------------------------------------- Foster Wheeler Ltd. (OTCBB: FWLRF) announced Tuesday that additional investors have agreed not to transfer their Foster Wheeler securities. Including these additional investors' holdings, institutional investors holding 56.8% of the 6.75% senior notes due 2005, 83.7% of the 6.50% convertible subordinated notes due 2007, 91.5% of certain of the Robbins bonds due 2009, and 19.6% of the 9% trust preferred securities have executed agreements not to transfer their securities. While Foster Wheeler has not yet requested these institutional investors to tender their securities in the offer, Foster Wheeler believes they will do so when requested. The amended exchange offer is subject to review by the Securities and Exchange Commission and other regulatory agencies, and revised offering materials will be distributed as soon as practicable. As previously announced, the exchange offer contemplates the issuance of warrants. The holders of the trust preferred securities would be issued five-year warrants to purchase additional voting equity securities representing, at the minimum required participation level for the trust preferred securities, approximately 15% of the Company's fully diluted equity, and the holders of common stock outstanding prior to the closing of the proposed exchange offer would receive a dividend in the form of three-year warrants to purchase additional voting equity securities representing approximately 5% of the Company's fully diluted equity. The warrants would be exercisable commencing one year after the completion of the exchange offer and would have an exercise price equal to the share price at which the holders of the convertible subordinated notes due 2007 who have tendered their notes in the exchange offer receive a par recovery. The Company currently expects the exercise price to be approximately $0.47. The warrants would be in addition to the other previously described voting equity securities to be issued in the exchange offer. The foregoing reference to the proposed registered exchange offer and any other related transactions shall not constitute an offer to buy or exchange securities or constitute the solicitation of an offer to sell or exchange any securities in Foster Wheeler Ltd. or any of its subsidiaries. Investors and security holders are urged to read the following documents filed with the SEC, as amended from time to time, relating to the proposed exchange offer because they contain important information: (1) the registration statement on Form S-4 (File No. 333-107054) and (2) the Schedule TO (File No. 005-79124). These and any other documents relating to the proposed exchange offer, when they are filed with the SEC, may be obtained free at the SEC's Web site at www.sec.gov. You may also obtain these documents for free (when available) from Foster Wheeler by directing your request to: John A. Doyle E-mail: john_doyle@fwc.com Telephone: 908-730-4270 FOSTER WHEELER INC., Perryville Corporate Park Clinton, NJ 08809-4000 Foster Wheeler Ltd. is a global company offering, through its subsidiaries, a broad range of design, engineering, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, oil and gas, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA. CONTACTS: Foster Wheeler Ltd. Media: Maureen Bingert, 908-730-4444 or Investors: John Doyle, 908-730-4270 or Other Inquiries: 908-730-4000 Web Site: www.fwc.com GLOBAL CROSSING: Re-Attains NASDAQ NM Listing --------------------------------------------- Global Crossing (NASDAQ: GLBCE) announced Tuesday that a NASDAQ Listings Qualifications Panel has granted the company's request that its common stock continue to be traded on the NASDAQ National Market until July 30, 2004, giving the company until that date to return to full compliance with exchange listing requirements. To return to compliance, the company will need to provide additional information to NASDAQ regarding the company's response to the cost of access issue and to re-file with the SEC audited 2002 and 2003 financial statements and unaudited first quarter 2004 financial statements, and related periodic reports. The company is working toward meeting the July 30, 2004 deadline and reported making progress toward that goal. The panel also conditioned the company's ongoing listing on timely filing of all periodic reports with the SEC for the next year. "We've made significant progress on both internal and independent reviews of cost of access issues, including the completion of Deloitte and Touche's investigation which did not reveal any management integrity issues," said John Legere, Global Crossing's chief executive officer. "We're grateful for the panel's decision today, which gives us time to finalize our financials and return to compliance." Grant Thornton LLP is in the process of conducting audit procedures with respect to the company's cost of access liabilities and cost of access expenses and evaluating the appropriate accounting treatment for any potential understatement to determine whether it can reissue its previously withdrawn audit reports. Once Grant Thornton completes its audit work, the company hopes to make the appropriate filings with the SEC to regain compliance with SEC requirements Global Crossing provides telecommunications solutions over the world's first integrated global IP-based network. Its core network connects more than 300 cities and 30 countries worldwide, and delivers services to more than 500 major cities, 50 countries and 6 continents around the globe. The company's global sales and support model matches the network footprint and, like the network, delivers a consistent customer experience worldwide. Global Crossing IP services are global in scale, linking the world's enterprises, governments and carriers with customers, employees and partners worldwide in a secure environment that is ideally suited for IP-based business applications, allowing e- commerce to thrive. The company offers a full range of managed data and voice products including Global Crossing IP VPN Service, Global Crossing Managed Services and Global Crossing VoIP services, to more than 40 percent of the Fortune 500, as well as 700 carriers, mobile operators and ISPs. CONTACTS: Press Contacts Ms. Becky Yeamans + 1 973-937-0155 PR@globalcrossing.com Ms. Tisha Kresler + 1 973-937-0146 PR@globalcrossing.com Ms. Fernanda Marques Latin America + 55 21-3820-4712 LatAmPR@globalcrossing.com Mr. Mish Desmidt Europe +44 (0) 7771-668438 EuropePR@globalcrossing.com Web Site: www.globalcrossing.com NORTHERN OFFSHORE: Damaged Ship Repair Cost $1M, Lost Revenues -------------------------------------------------------------- Northern Offshore Ltd. (NOF.OS), an Oslo-listed Bermuda-based drilling vessels operator, revealed that one of its drill ships collided with a passenger vessel late Sunday morning en route from Singapore to Indonesia. The Company said the collision severely damaged the ship called Energy Searcher. Repairing it would take at least two weeks and cost US$1 million, including lost revenue. Energy Searcher was sailing to Indonesia to commence a three- month contract with Medco Langsa Indonesia. But Northern Offshore is confident that it will still be able to commence a drilling contract with Medco Langsa Indonesia once Energy Searcher is fully operational. Northern Offshore recently announced that it is preparing for liquidation. The move followed an impasse between the Company and its creditors. The Company had indicated that although an unofficial committee of unsecured creditors had formed to consider the Company's restructuring proposal, the committee had sent a letter and term sheet to the Company stating that it would not engage in negotiations with the Company without the Company's immediate payment of US$7.2 million of interest due on May 15, 2004 in connection with the 10.0% senior notes due 2005 and further on July 6, 2004 pay interest which is due on that date on the outstanding NOK bonds. =========== B R A Z I L =========== EMBRATEL: Strikes Marketing Alliance With Drugstore Chain --------------------------------------------------------- Brazilian telecoms operator Embratel and drugstore chain Farmacias Pague Menos have agreed to form a marketing partnership, reports Business News Americas. Under the deal signed this week, Farmacias will offer 21% discounts on medications to customers who buy Embratel's prepaid phone cards. Customers can make calls from any fixed or mobile phone. The cards can also be used outside the country to call Brazil are valid for three to six months. The Company is charging around BRL0.45 (US$0.15) a minute for local fixed-to-fixed calls. Embratel recently commenced an offer to exchange up to US$275 million aggregate principal amount of Embratel's registered 1.0% Guaranteed Notes due 2008 (the "New Notes") for any and all of Embratel's outstanding unregistered 11.0% Guaranteed Notes due 2008 (the "Old Notes"). The expiration date for the exchange offer will be 5:00 p.m., Eastern Standard Time (EST), on July 28, 2004, unless extended. Embratel is the premium telecommunications provider in Brazil and offers an ample variety of telecom services -- local and long distance telephony, advanced voice, high-speed data transmission, Internet, satellite data communications, and corporate networks. The Company is a leader in the country for data services and Internet, and is highly qualified to be an all-distance network carrier in Latin America. Embratel's network spreads countrywide, with almost 29 thousand kms of optic cables, which represents about one million and sixty-nine thousand km of fiber optics. CONTACTS: Ms. Silvia M.R. Pereira Investor Relations tel: (55 21) 2121-9662 fax: (55 21) 2121-6388 email: silvia.pereira@embratel.com.br invest@embratel.com.br Web site: www.embratel.net.br GERDAU: Allocates BRL83 Million for Ceara Subsidiary Expansion -------------------------------------------------------------- The Gerdau Group, the largest flat steel producer in the Americas, will invest BRL83 million in expansion and technological upgrades at Gerdau Cearense, a steel mill located in the municipality of Maracanau (state of Ceara). The new cycle of investments, programmed to take place over the next five years, will expand the unit's annual production by 50%, from 100 thousand metric tons to 150 thousand metric tons. In addition to improving the quality of Gerdau Cearense products, it will also increase productivity in the industrial line by 43%, which are destined for the civil construction and industrial sectors. Investments are also being made to upgrade environmental protection equipment and enhance social projects involving the local community. The main highlight of the program is a new rolling mill natural gas reheat furnace, purchased for BRL7.5 million. The equipment heats the billets produced in the melt shop, transforming them into final products for the civil construction and industrial sectors, such as rebar, bars and angles. One of the advantages of the new, fully automated furnace is its adjustable reheating temperature, which varies from 1050 to 1150 ºC (1922 to 2102 ºF) depending on the type of steel. With the investment, the unit's production capacity during this stage of the process will increase from 20 metric tons per hour to 40 metric tons per hour. Investments will be made throughout the significant stages of the production process: Scrap yard Gerdau Cearense transforms 100% of the ferrous scrap generated in the state of Ceara into steel. It also uses scrap from other states, covering an area that extends from the state of Rio Grande do Norte to the state of Amazonas. This process contributes to the cleanup of the cities while generating jobs for the collection of the raw material. In the area where the scrap is prepared to enter the furnace, new shearing presses and mechanical trusses will be installed to expand the unit's capacity to process and clean the raw material. Melt shop The main highlight of the program is the installation of a new 25-ton electric furnace used to transform ferrous scrap - the unit's main raw material - into liquid steel. It incorporates advanced technology, such as Eccentric Bottom Tapping (EBT), which is designed to enhance the quality of the products while streamlining the production process. Upgrades will also be performed for the continuous casting unit, where liquid steel is solidified in the form of billets. With the investment, larger gauge billets (120 mm x 120 mm) will be produced enhancing both the productivity and the operating efficiency of the final product. Rolling mill In addition to the new reheat furnace noted above, the Group will invest in a technological upgrade designed to automate the rolling mill, thus increasing efficiency during this stage of the steel making process. The upgrade will increase the quality of the products destined for the civil construction and industrial sectors. At the rolling mill, billets are transformed into final products such as rebar, bars and angles. Logistics The new level of production at Gerdau Cearense will also demand improvements in the mill's internal logistics to facilitate the receipt of raw materials and organize production flows. The investments regarding logistics are directed at the construction of new paved access ways and entrances in addition to the acquisition of new industrial transportation equipment. ENVIRONMENTAL INVESTMENTS A total of BRL7 million will be directed at technological upgrades of air and water protection equipment. To reinforce its eco-efficiency practices, the Gerdau Group will invest BRL6 million in the technological upgrade of the mill's air protection equipment. The melt shop dust removal system, which filters solid particles and gases generated during the production process, will undergo an expansion: the bag house will be doubled in size, reaching the 1,000 filter mark. In addition, a new cowl will be installed with the capacity to collect 800 thousand cubic meters. Currently, water resources are protected by the water treatment and recirculation systems. These systems assure that 100% of the water used during the production process returns to the industrial line and not returned to nearby rivers. Due to the mill's new production level, a BRL1 million investment is planned to adjust the process water treatment process and recirculation systems. The systems' flow rate and heat exchange in the entire plant will increase from 900 to 2,100 cubic meters/hour. REBAR FABRICATING FACILITY The Gerdau Group will also invest in improving the quality of customer services at the Rebar Fabricating Facility, designed to meet the demands of the region's civil construction sector. The unit supplies rebar that is fabricated to meet the specific requirements of each project. Its primary technological advantage is the elimination of steel waste at construction sites, where the average loss of such material can reach as high as 15%. The Armafer Rebar Fabricating Service adds value to the traditional concrete structure frame, offers gains in productivity and improves construction site organization in addition to contributing to the technological evolution of the civil construction sector. SOCIAL INVESTMENTS Resources will be invested in three community projects The Gerdau Group is also directing resources at three new social projects in the state of Ceara. By the end of 2006, the Group plans to construct 10 multi-sport courts in local public schools, representing an investment of BRL1.5 million. One of the new courts will be installed in the municipality of Maracanau and another in the municipality of Juazeiro do Norte. Working with government officials, the locations of the other courts will be determined shortly. The resources will be generated by Fundo Pró-Infância dos Profissionais Gerdau (Gerdau Professionals' Pro-Childhood Fund), a nation-wide program designed to assist needy children and adolescents who are; at risk, chemically dependant or have special needs. The Prato Popular restaurant, created to assist the low-income population, will be yet another highlight in the social area. With an opening date scheduled for December, the project will serve healthy and nutritionally-balanced meals to 350 people in the municipality of Maracanau. The Gerdau Group will remodel the building, purchase furniture and utensils and provide publicity of the venture within the community. Costs of this project are estimated to be approximately BRL100 thousand. The company will also be responsible for supporting the difference between the actual cost of the meal and the BRL.50 price paid by the consumer, an investment that is estimated to reach BRL250 thousand per year. The restaurant will be open from Monday to Friday and will operate in partnership with the Maracanau City Government, SESI and SERLARES. To encourage the local community to play an active role in preserving nature, the Gerdau Group plans to participate in the Ceara Environmental Education Program (Programa de Educacao Ambiental do Ceara or PEACE) developed by the State Ombudsman and Environmental Departments in local schools. The environmental awareness program will be implemented through educational activities in the Padre Cicero (Father Cicero) trailer, a mobile classroom that will be equipped with a sound system, VCRs, air-conditioning, a study table and a library. The vehicle will travel to several locations in the state. GERDAU IN THE STATE OF CEARA The Gerdau Group has already invested BRL213 million in Ceara since the end of the 1970's. The Group's first venture in the state was the opening of a Comercial Gerdau branch in the city of Fortaleza in 1979. In 1981, construction began for the Gerdau Cearense steel mill, which was built to meet the demands of the civil construction and industrial sectors in the region by using the most modern industrial technologies. Over time, the unit has benefited from a continuous cycle of investments designed to guarantee the excellence of the products and services offered to customers. In 2001, the Armafer Rebar Fabricating Facility began operations in order to meet the needs of the civil construction sector. During the same year, a new branch of Comercial Gerdau was inaugurated in the municipality of Juazeiro do Norte. The new unit soon joined the service network of the largest steel product distributor in Brazil. Two years later, Gerdau Group operations were expanded in the state, with the inauguration of a downstream operation center for flat steel in the city of Fortaleza, designed to meet the needs of the industrial sector. CONTACT: Gerdau Group Press Office +55(51) 3323-2170 imprensa@gerdau.com.br Web Site: www.gerdau.com.br ============= E C U A D O R ============= PACIFICTEL: Interim President to Become Permanent Head ------------------------------------------------------ Ecuador's solidarity fund (FS), which controls state-owned telecoms operator Pacifictel, is expected to name Alberto Perez- Llona as permanent president of the Company today, July 8, reports Business News Americas. Mr. Perez-Llona has been interim president since the beginning of this year and has been ratified following a lengthy selection process. In addition, four directors and eight new executives will be named to run the Company. FS manager Milton Ordonez said the executives, selected by international consulting firm PricewaterhouseCoopers, would take office between Tuesday and Thursday. Local press are speculating that Angel Torres Noboa will be appointed as chairman of the board, with Guillermo Guerrero, Manuel Vivanco and Jose Luis Hidalgo as directors. PACIFICTEL: Arbitration Panel Favors Company in LAT Dispute ----------------------------------------------------------- The arbitration panel of Guayaquil's chamber of commerce (CCG) ordered international carrier Latin American Telecom (LAT) to award part of the US$14 million in settlement fees to Pacifictel, reports Business News Americas. The panel was made up of three judges: Vladimiro Alvarez, Gustavo Ortega and Jacinto Loaiza. The payment relates to the fees owed to Pacifictel for terminating international calls in Ecuador between October 2000 and November 2002. Additionally, the panel ruled that Pacifictel must use the US$0.04 a minute charge applied to other carriers for any calls terminated by LAT after November 2002. The panel didn't order LAT to pay all the fees because both parties admitted they had broken terms of the interconnection contract. ===================== E L S A L V A D O R ===================== BANCO AGRICOLA: Cabei Authorizes $30M Loan ------------------------------------------ El Salvadoran bank Banco Argricola is set to receive US$30 million in additional financing after The Central American Bank for Economic Integration (Cabei) approved a loan increase. Business News Americas reports that the new loan brings Agricola's total debt in Cabei to US$64 million. The fund is earmarked for medium and long-term financing projects. Cabei is a cross-border financial development organization supporting the economic integration of Central America. Its main office is located in Honduras, and it has a regional presence in each Central American member nation. TESAL: Fitch Leaves Rating Unchanged ------------------------------------ Credit ratings agency Fitch reaffirmed its B(slv) rating on Telefonica Moviles El Salvador (Tesal), a unit of Spain's Telefonica Moviles, reports Business News Americas. The action came despite a boost on Tesal's revenues in the first quarter. Fitch indicated that the Company is struggling to keep up with fierce competition. The Company's high debt level is also affecting the ratings. Tesal's total debt is US$139 million and although the Company continues to benefit from the good grace of its parent company, "the financial flexibility of the company remains limited," Fitch said. Any new debt could worsen the Company's debt profile, Fitch added, referring to Tesal's efforts to seek financing to build a US$40 million GSM network to operate alongside its existing CDMA network. =========== M E X I C O =========== HYLSAMEX: Reports Preliminary 2Q04 EBITDA of $222M -------------------------------------------------- Mexican steelmaker Hylsamex SA (HYLSAMX.MX) informed Mexico City's bourse that initial results for the quarter ended June 30 showed an EBITDA of US$222 million, up from US$45 million in the same year ago period. Preliminary revenue rose to US$589 million from US$369 million. "Better steel prices, sustained volumes and relatively stable costs explain the figures," Hylsamex said. The Company shed US$95 million in net debt in the second quarter of the year thanks to the growth, ending with US$867 million. Hylsamex is yet to provide additional information. CONTACT: Hylsamex S.A. de C.V. 101 Ave Munich Cuauhtemoc 66452 San Nicolas de los Garza Nuevo Leon Mexico Phone: +52 81 8865 2828 Fax: +52 81 8865 1210 Home Page: http://www.hylsamex.com.mx Contact: Engr. Dionisio Garza Medina, Chairman Alejandro Elizondo Barragan, Chief Executive Engr =========== P A N A M A =========== BLADEX: Adopts New Branding Strategy, Corporate Identity -------------------------------------------------------- Bladex, Banco Latinoamericano de Exportaciones , S.A. (NYSE: BLX), announced the launch of its new corporate identity and branding strategy at a gala held on Monday Evening and at a seminar held on Tuesday in Panama City. Before an audience of distinguished executives from Latin American banks, Bladex unveiled its new image, which is the focal point of the new corporate identity. It coincides with Bladex's 25th anniversary, which is being celebrated at events throughout the year with clients, shareholders, business partners and employees. Gonzalo Menendez Duque, Chairman of Bladex's Board of Directors, stated, "Bladex's new image culminates a period of momentous change at the Bank and symbolizes its continuous commitment to Latin America, contributing to profitable initiatives benefiting many countries throughout the Region. As Bladex celebrates its 25 year anniversary, it emerges in the most financially solid position of its history with a vision to become the financial leader in foreign trade services of Latin America." Jaime Rivera, Chief Executive Officer, added, "The new branding strategy is clearly aligned with the Company's business goals and is a major step towards optimizing Bladex's client coverage model, segment the client base and initiate cross-selling tactics to capitalize on new product opportunities." Bladex's new logo, which resembles the shapes of its areas of influence: Central America, the Caribbean and South America, reflects the uniqueness that is synonymous with Bladex. While Bladex's legal name will continue to be Banco Latinoamericano de Exportaciones , S.A, it will phase out the use of this name for daily business purposes and emphasize the name "Bladex" as it commercial trademark. This measure is aimed at further increasing Bladex's brand recognition. The launch followed extensive research from external consultant, BrandSpin , who identified Bladex as a highly-committed, professional and reliable lender of choice with its clients throughout Latin America. Based on the conclusions from the research, Bladex is positioning itself as a leading provider of trade finance products, services and funding, and will continue to broaden its services and products portfolio to leverage its strong client relationships and recognition in the Region. Bladex will introduce its new corporate identity to the international investor community during a series of special events in New York City in October 2004. Management will ring the closing bell at the New York Stock Exchange on October 11 th and will host a luncheon with presentations from Mr. Gonzalo Menendez Duque, Chairman of the Board, and Mr. Jaime Rivera, Chief Executive Officer, on October 12th. The details of these events will be announced in the coming weeks. CONTACT: Bladex Head Office Calle 50 y Aquilino de la Guardia Panama City, Panama Mr. Carlos Yap Senior Vice President for Finance Tel. No. (507) 210-8581 e-mail: cyap@blx.com or Investor relations firm i-advize Corporate Communications, Inc. Ms. Melanie Carpenter / Peter Majeski Tel: (212) 406-3690 e-mail: bladex@i-advize.com Web Site: www.blx.com ================= V E N E Z U E L A ================= PDVSA: Delayed 2003 Results to be Filed in September ---------------------------------------------------- Petroleos de Venezuela S.A., the state-controlled oil company, intends to file its 2003 financial results with the U.S. Securities and Exchange Commission by early September, says the Associated Press. The filing is expected to come two months after SEC's June 30 deadline. The company was unable to comply with the filing deadline because of administrative problems stemming from the two-month strike that paralyzed production in 2003. PDVSA is currently required to file with the SEC because it operates several wholly owned units in the U.S. If the Company succeeds in buying back more than half of the US$2.6 billion outstanding debt it has recently tendered, reporting requirements to the U.S. regulators would be relaxed. PDVSA: Plans $9.5 Bln Outlay In Five Years ------------------------------------------ Investments totaling US$9.5 billion will be poured into PDVSA over the next five years in order to improve its refining capacity and raise gas output. The cash infusion is expected to boost production from 6.3 billion cubic feet per day to 11 billion by 2009. The company will finance the investment through its own funds and loans from Citigroup (C) and J.P Morgan Chase (JPM), said Mr. Nelson Martinez, head of PdVSA Gas. In a report from Business News Americas, the deputy manager for the Company's Paraguana refinery, Mr. Fernando Padron, said that the investment amounts to 42 percent of the total spending needed to fully exploit refining capacity in the whole of Latin America. Fossil fuels are expected to comprise 90 percent of the region's energy source in the next twenty years. The state-owned oil company relies on ongoing on-shore and offshore exploration projects such as Plataforma Deltana and Mariscal Sucre to increase its current production. Venezuela plans to eventually funnel its excess gas production to neighboring Colombia through a pipeline project extending from Maracaibo in Venezuela to Colombia's Guajira Peninsula. In addition the planned capital outlay, PDVSA has also allotted US$1.1 million aimed at improving product quality in order to comply with stricter U.S. standards. *********** 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. 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 * * *