/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040709.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, July 9, 2004, Vol. 5, Issue 135 Headlines A R G E N T I N A ALSE ALTA: Trustee Finalizes Credit Verification BARCLET: Trustee Readies Final Reports for Filing BY BITAHON: Buenos Aires Judge Approves Bankruptcy COLORIN INDUSTRIA: Moody's Assigns `D' Ratings to $47M of Bonds DELTA CALZADOS: Claims Report Deadline Approaches EDEMSA: S&P Retains `D' Rating on $150M Bonds LABOR MED: General Report Due in Court Today M.C.E. S.A.: Seeks Court Authorization to Reorganize NESTOR VITIGLIANO: Liquidates Assets to Repay Debts PARMALAT ARGENTINA: Saputo Remains Silent on Acquisition Bid TRI ECO: Debt Payments Halted, Prepares To Reorganize B E R M U D A ANNUITY & LIFE: Resolves Dispute With Transamerica NORTHERN OFFSHORE: Misses Bond Interest Payment B R A Z I L BANCO RURAL: Obtains B2 Rating for its $25M Notes CEMIG: Moody's Affirms Ratings on Recent Regulatory Decision TELEMAR: TRF Scrutinizing Appeal to Reinstate Price Adjustments TELEMAR: Seeks Co-Billing Agreements With Mobile Operators * Fitch Assigns Expected 'B+' to Brazil's Global Bonds D O M I N I C A N R E P U B L I C BANCO MERCANTIL: Parent Company Awaits Auditors' Certification E C U A D O R PETROECUADOR: Government to Emulate Brazil's Petrobras Success PETROECUADOR: Seeks New Investment to Boost Production M E X I C O GRUPO MEXICO: Monex Issues `Buy' Rating on Shares ING COMERCIAL: State Judge Yet to Act on Federal Court Ruling IUSACELL: U.S. Court Denies Creditors Petition IUSACELL: Lack of Funding May Lead to Bankruptcy VITRO: Tops "Most Innovative Companies in Mexico" List P E R U * Peru Mulling $1B Bond Issue T R I N I D A D & T O B A G O CDC: Standard's Director Eases Repossession Worries V E N E Z U E L A PDVSA: Plans Sale of Orimulsion Facilities - - - - - - - - - - ================= A R G E N T I N A ================= ALSE ALTA: Trustee Finalizes Credit Verification ------------------------------------------------ Creditors of insolvent Alse Alta Seguridad S.R.L. must present proofs of claims against the Company before July 12, 2004 in order to participate in the settlement plan being prepared by the Company. All claims must be submitted to Mr. Esteban D. Morganti, the court-appointed trustee, who will validate the claims and prepare the individual reports to be presented in court on October 4, 2004. The informative assembly, the final stage in the reorganization, is scheduled on February 10 next year. CONTACT: Alse Alta Seguridad S.R.L. Calle 122 Bis Nro. 1848 Berisso La Plata Mr. Esteban D. Morganti, Trustee Calle 12 Nro. 883 La Plata BARCLET: Trustee Readies Final Reports for Filing ------------------------------------------------- The bankruptcy of Buenos Aires-based Barcelt S.A. nears its conclusion as the case's trustee, Mr. Santos Ernesto Luparelli, prepares to submit the individual reports on July 12, 2004. The city's Court No. 8 will review the individual reports and endorse the final list of creditors that will be included in the payments to be made after the Company's liquidation. Apart from the individual reports, the trustee is also obliged to provide the court with a general report on September 13, 2004. The general report summarizes important events in the liquidation process and presents an audit of the Company's accounting and business records. CONTACT: Mr. Santos Ernesto Luparelli, Trustee Paraguay 2067 Buenos Aires BY BITAHON: Buenos Aires Judge Approves Bankruptcy -------------------------------------------------- By Bitahon S.R.L. was declared bankrupt after Judge Gonzalez of Buenos Aires Court No. 8 endorsed the petition of Tecotex Sacifia for the company's liquidation. La Nacion reports that the creditor has claims totaling US$1,434 against the troubled textile company. The court assigned Mr. Felipe Florio to supervise the liquidation process as trustee. He will validate creditors' proofs of claims until September 23, 2004. CONTACT: By Bitahon S.R.L. Avenida Pueyrredon 689 Buenos Aires Mr. Felipe Florio, Trustee Uruguay 618 Buenos Aires COLORIN INDUSTRIA: Moody's Assigns `D' Ratings to $47M of Bonds --------------------------------------------------------------- Moody's Latin America Calificadora de Riesgo S.A. assigned a `D' rating to the US$47 million bond issued by Colorin Industria de Materiales Sintet. Comision Nacional de Valores (CNV), Argentina's securities regulator, reports that the action was based on the Company's financial status as of March 31, 2004. Moody's assigns `D' ratings to bonds that are in payment default and have a poor prospect of repaying all obligations. The bond issue, described as `Obligaciones Negociables', will mature on March 31, 2006. DELTA CALZADOS: Claims Report Deadline Approaches ------------------------------------------------- Individual reports from claims submitted by the creditors of Delta Calzados S.H. are due for court presentation on July 12, 2004. Ms. Olga Susana Urriza, the court-appointed trustee will prepare this report together with a general report on the Company's reorganization that will be submitted in court on September 8, 2004. The Company will present the completed settlement proposal during the informative assembly on March 1 next year. CONTACT: Olga Susana Urriza, Receiver Calle 18 Nro. 425 La Plata EDEMSA: S&P Retains `D' Rating on $150M Bonds --------------------------------------------- Standard & Poor's International Ratings, Ltd. Sucursal Argentina maintained its default ratings on US$150 million bonds issued by Empresa Distribuidora de Electricidad de Mendoza S.A. The bond issue described as "Programa de emisi¢n de Obligaciones Negociables simples" earned the `D' rating based on EDEMSA's financial standing as of March 31, 2004, says CNV. A `D' rating is assigned when the issuer has filed for bankruptcy or when interest or principal payments are not made on the due date, even if the applicable grace period has not expired, unless S&P believes that such payments will be made during such grace period. CONTACT: Empresa Distribuidora de Electricidad de Mendoza S.A. San Mart¡n 322 (5500) Mendoza LABOR MED: General Report Due in Court Today -------------------------------------------- Mr. Pedro Luis Santa Maria, the trustee supervising the liquidation of Labor med S.R.L., will submit the case's general report on July 12, 2004. The general report provides the court with an overview of the ongoing bankruptcy and gives an audit of the Company's business records. The Company's bankruptcy case will close with the liquidation of its assets to pay its creditors. CONTACT: Labor Med S.R.L. Talcahuano 438 Buenos Aires Pedro Luis Santa Maria, Receiver Lavalle 1430 Buenos Aires M.C.E. S.A.: Seeks Court Authorization to Reorganize ---------------------------------------------------- M.C.E. S.A., a Buenos-Aires based company engaged in construction, has requested for reorganization after failing to pay its liabilities since May 30, 2004. Argentine daily La Nacion reports that the case is pending before Judge Uzal of the city's Court No. 26. Dr. Dermardirossian, Clerk No.51, assists on this case. CONTACT: M.C.E. S.A. Junin 257 Buenos Aires NESTOR VITIGLIANO: Liquidates Assets to Repay Debts --------------------------------------------------- Buenos Aires-based Company N‚stor Vitigliano S.R.L. will begin liquidating its assets following the bankruptcy pronouncement issued by Judge Gonzalez of the city's Court No. 8. Infobae reports that the bankruptcy ruling places the company under the supervision of court-appointed trustee, Mr. Norberto Jose Perrone. The trustee will verify creditors' proofs of claims until September 23, 2004. CONTACT: Nestor Vitigliano S.R.L. Nahuel Huapi 4929 Buenos Aires Mr. Norberto Jose Perrone, Trustee Constitucion 2894 Buenos Aires PARMALAT ARGENTINA: Saputo Remains Silent on Acquisition Bid ------------------------------------------------------------ Saputo Inc. refused to comment on rumors that it is one of six companies eyeing the assets of troubled dairy-company Parmalat Argentina. Mr. Claude Pinard, the company's spokesman, reiterated this non-disclosure policy in a Reuters report. While Parmalat's Argentine subsidiary has not been placed in the market, the parent company's plans to concentrate on its Italian operations have fueled speculation that its Latin American assets may eventually be sold. Along with Saputo Inc., companies like Pegasus, Coinvest S.A., American Invest Group; Dolphin Fund and HSBC Holdings have also shown interest in acquiring Parmalat Argentina. TRI ECO: Debt Payments Halted, Prepares To Reorganize ----------------------------------------------------- Judge Vasallo of Buenos Aires Court No. 5 is currently reviewing the merits of the reorganization petition filed by Tri Eco S.A. La Nacion recalls that the company filed the petition after defaulting on its debt payments. Once approved by the court, reorganization will allow the industrial residue processing company to avoid bankruptcy by negotiating a settlement with its creditors. Dr. Perez Cazado, Clerk No. 9, assists the court on this case. CONTACT: Tri Eco S.A. Lavalle 534 Buenos Aires ============= B E R M U D A ============= ANNUITY & LIFE: Resolves Dispute With Transamerica -------------------------------------------------- Annuity and Life Re (Holdings), Ltd. (NYSE: ANR) reported Wednesday that the Company and Transamerica have agreed to settle all disputes relating to the current arbitration proceedings between the two parties. Pursuant to the terms of the settlement agreement, Transamerica and the Company will calculate monthly settlements under their reinsurance treaty in a manner the Company believes is consistent with the original terms of the treaty. Transamerica also agreed to the Company's $5.0 million offset of amounts owing to Transamerica at October 31, 2003. The Company will pay Transamerica approximately $8.7 million, representing amounts currently due under the reinsurance treaty as of April 30, 2004. The Company does not expect an adverse impact on its financial results as a result of the settlement. Jay Burke, Chief Executive Officer of the Company, commented, "We are very pleased that Transamerica and the Company were able to amicably resolve their differences. The Company's future is heavily dependent upon the performance of this contract, and we are hopeful that with this dispute out of the way we can have a more constructive dialogue with Transamerica." Annuity and Life Re (Holdings), Ltd. provides annuity and life reinsurance to insurers through its wholly owned subsidiaries, Annuity and Life Reassurance, Ltd. and Annuity and Life Reassurance America, Inc. CONTACT: Mr. John Lockwood Annuity & Life Re (Holdings), Ltd. Cumberland House 1 Victoria Street Hamilton HM 11 P.O. Box HM 98 Hamilton HM AX Bermuda Tel: (441) 296-7667 Fax: (441) 296-7665 NORTHERN OFFSHORE: Misses Bond Interest Payment ----------------------------------------------- Northern Offshore will, due to the Company's overall financial situation, not be in position to pay interest on the Norwegian Bond loan ISIN 001009351.1 due July 6th. As stated in an earlier press release, the Board of Directors of Northern Offshore does not believe its is appropriate to pay funds to any stakeholder without agreement on a comprehensive financial restructuring of the group. CONTACT: Mr. Tor Olav Troim Northern Offshore Tel + 44 77 34 97 65 75 Mr. Joseph Swanson Houlihan Lokey Howard & Zukin Tel + 44 20 7747 2727 =========== B R A Z I L =========== BANCO RURAL: Obtains B2 Rating for its $25M Notes ------------------------------------------------- Moody's Investors Service assigned a B2 rating to US$25 million notes issued by Rio de Janeiro-based Banco Rural S.A. The outlook on the rating is stable. The affected notes, which mature on July 2005, were issued under the US$500 million Euro- medium term note program established by Banco Rural in October 2003. According to Moody's, the B2 rating incorporates Banco Rural's fundamental credit quality, which is reflected by its Ba3 global local currency rating and which includes all relevant country risks. The B2 rating reflects the probability of a sovereign default implied by the Brazilian government's sub-investment- grade B2 foreign currency bond rating, and the likelihood that the Brazilian government could impose a debt moratorium in the event of default on its own foreign currency obligations. CEMIG: Moody's Affirms Ratings on Recent Regulatory Decision ------------------------------------------------------------ Moody's America Latina Ltda. affirmed the following the ratings of Companhia Energetica de Minas Gerais (Cemig): - Baa2.br Brazil National Scale rating for issuer and senior unsecured debentures - B1 Global Local Currency Scale ratings for issuer and senior unsecured debentures - Baa2.br Brazil National Scale rating and the B1 Global Local Currency Scale rating on Cemig's proposed BRL400 million senior unsecured debenture issuance due 2014. The affirmation of the ratings is a reflection of the federal regulator's recent decision to amend Resolution 83, which establishes the distribution tariffs that Cemig charges its consumers as of April 2004, resulting in a reduction of the percentage increase in tariffs from 19.13% to 14.0%. Moody's indicated that Cemig plans to appeal the decision. If the regulator decides to uphold the ruling, the rating agency expects a reduction of approximately BRL250 million in Cemig's 2004 regulated net revenues and BRL50 million in its gross cash flow. While the recent ruling reflects a less than supportive regulatory environment, considering that Cemig's debt protection measures are currently strong for its rating category, it is unlikely that the modest impact of the lower tariff on its 2004 results would affect the ratings or the outlook. Cemig's ratings are principally constrained by the B3 rating of the state of Minas Gerais, the company's controlling shareholder, which reflects the state's heavy, growing debt burden and a structural fiscal imbalance. Moody's America Latina observes that there is no clear ring-fencing of Cemig's cash flows from its controlling shareholder, thus leaving the Company exposed to the risk of a cash drain in a scenario under which the state experiences a serious fiscal crisis. TELEMAR: TRF Scrutinizing Appeal to Reinstate Price Adjustments --------------------------------------------------------------- A spokesperson from Brazil's second regional federal court (TRF) revealed that TRF Pesident Valmir Pecanha is now studying an appeal lodged by telecoms operator Telemar seeking to reinstate annual telephone price adjustments, relates Business News Americas. As part of the annual price adjustment process, telecoms regulator Anatel authorized an average increase of 7.43% for local line services but a reduction for long-distance prices. However, Judge Luis Eduardo Bianchi Cerqueira of the 9th federal court stopped Telemar from applying price hikes authorized by Anatel, following a motion brought by local consumer association Afcont. In its motion, Afcont stated that the use of the IGP-DI index for measuring inflation was harmful to consumers because it does not adequately reflect inflation in Brazil. In June 2003, a Brasilia court switched the IGP-DI index for the IPCA index using the same argument. Cerqueira's rejection prompted Telemar to bring its appeal to the TRF. If Pecanha's decision is contested by either party, the case will move directly to the federal appeals court, the STJ, which last week ruled that the IGP-DI index must be used for the annual price readjustments as it is laid down in the incumbents' concession contracts. STJ president Edson Vidigal said that lower courts had the right to question the STJ's decisions and that if the case makes it back to the STJ he would "not waste time in applying the law and what the constitution determines." CONTACT: TNE - INVESTOR RELATIONS Email: invest@telemar.com.br Roberto Terziani - 55 (21) 3131-1208 Carlos Lacerda - 55 (21) 3131-1314 Fax: 55 (21) 3131-1155 TELEMAR: Seeks Co-Billing Agreements With Mobile Operators ---------------------------------------------------------- Telemar is asking mobile operators to implement a full co- billing system for long-distance calls made from mobile phones, reports Business News Americas. According to Telemar long- distance manager Jorge Braga, full co-billing agreements would allow Telemar to provide tailored promotions to individual mobile customers. Telemar wants to sign co-billing agreements with mobile operators Vivo, TIM and Claro, Braga said. Telemar's own mobile unit, Oi, has already met the regulatory requirements by signing full co-billing agreements with all fixed line operators. * Fitch Assigns Expected 'B+' to Brazil's Global Bonds ------------------------------------------------------ Fitch, the international rating agency, assigned the forthcoming U.S. dollar-denominated 10-year global bond issue of the Republic of Brazil an expected long-term foreign currency rating of 'B+' with a Stable Rating Outlook. Brazil's credit fundamentals have improved in the past year but still remain vulnerable to market sentiment, given the sovereign's heavy debt rollover needs, as well as the external financing needs of the country as a whole. Credit improvements have included a marked turnaround in international trade performance, with the trade surplus rising 45% (to US$15 billion) in the year to June 2004, and the current account likely to post its second straight annual surplus this year. As a result, international reserves net of IMF borrowings and other items should rise modestly this year to more than US$22 billion. In addition, the public sector continues to run sizable primary budget surpluses (excluding interest payments), driven by buoyant tax performance. The primary surplus in the 12 months to May totaled 4.3% of GDP, yielding a budget deficit of 4.1%, down from 5.2% in calendar year 2003, as moderating inflationary pressures have allowed interest rates to decline. The sovereign's debt profile has improved markedly, with over US$18 billion in dollar-indexed liabilities being withdrawn from the market in the year to mid-July and such liabilities representing only 16.6% of government debt in May 2004, down from 30.7% one year earlier. Some momentum on the reform front continues, evidenced by the government holding the line on minimum wage growth and moving ahead in the legislative process to pass bankruptcy reform. This follows on the modest successes last year in the areas of social security and tax reform. Finally, signs of a growing economy have emerged with industrial production, real incomes, and bank lending on the rise during the first half of the year, indicating that GDP could expand 3.5% or more this year. Nevertheless, Brazil's sovereign ratings remain constrained by medium-term debt sustainability concerns as well as nearer term heavy financing needs. Gross general government debt to GDP of above 75% compares unfavorably with the median of Fitch-rated 'B' sovereigns. Likewise, net external debt of nearly 150% of current external receipts exceeds the 'B' median. Regarding near-term financing needs, in April and May, as market sentiment turned more bearish regarding the outlook for U.S. interest rates, rollover rates on public domestic debt and on external debt plummeted. These rollover rates have improved in recent weeks; however, Brazil remains highly leveraged to market sentiment, given US$20.7 billion in medium- and long-term external debt amortizations due during the rest of the year. Furthermore, the treasury's domestic debt rollover requirements for the rest of the year are not light, representing approximately 7.6% of 2004 GDP and about 17% of GDP in the next 12 months. CONTACT: Roger M. Scher +1-212-908-0240, New York. MEDIA RELATIONS: James Jockle +1-212-908-0547, New York. =================================== D O M I N I C A N R E P U B L I C =================================== BANCO MERCANTIL: Parent Company Awaits Auditors' Certification -------------------------------------------------------------- Mr. Ronald Harford, Chairman of the Republic Bank Limited, expects auditors to complete its certification of the records of Banco Mercantil, the group's subsidiary in the Dominican Republic, before the end of the week, says The Trinidad Guardian. The audit reportedly found a US$300 million hole in Banco Mercantil's accounts. But the executive claims Republic Bank has received a commitment from the DR's Central Bank Governor Jose Lois Malkum that he (Malkum) will resolve the issue once Mercantil's accounts have been certified. Banco Mercantil became a 99.97% owned subsidiary of Republic Bank Limited in October last year. CONTACT: Roberto Pastoriza 303 Apartado Postal 20203 Santo Domingo Dominican Republic Website: http://www.mercantil.com.do ============= E C U A D O R ============= PETROECUADOR: Government to Emulate Brazil's Petrobras Success -------------------------------------------------------------- The government of Ecuador is scheduled to meet with executives of Brazilian energy giant Petroleo Brasileiro SA (Petrobras) in Ecuador next week, Dow Jones reports, citing Energy Minister Eduardo Lopez. Ecuador, which is seeking to overhaul the state- owned, cash-strapped oil company Petroecuador, wants to get ideas from the Petrobras executives on how they successfully created a "mixed" company. Brazil sold a significant portion of Petrobras' shares on international equity markets while still retaining control of the company. Ecuador wants to follow the same steps with regards to Petroecuador. Yet the move would require legislative approval. But according to Lopez, most lawmakers would back a plan to partially privatize the Company, as long as the government retained control. PETROECUADOR: Seeks New Investment to Boost Production ------------------------------------------------------ Petroecuador president Luis Camacho Barrios revealed that the state oil company produced 200,154 barrels of oil on July 6, relates Business News Americas. A Petroecuador spokesperson said that the Company aims to up production to 205,000b/d by year-end by drilling a total of about 20 new wells and rehabilitating some 40 existing wells. According to the government, Petroecuador has seen its output dwindle at an average annual rate of around 7% in recent years. To address this problem, the government plans to attract foreign investment. Ecuador's energy and mines ministry could reopen a tender to boost production in four state-owned Amazon oil and gas fields by end-September if congress passes a new hydrocarbons reform bill by end-July. =========== M E X I C O =========== GRUPO MEXICO: Monex Issues `Buy' Rating on Shares ------------------------------------------------- Mexican financial group Monex is advising investors to purchase shares in the mining and metals giant Grupo Mexico, reports Business News Americas. Monex is setting a three-month target share price of MXN39.50 compared to Tuesday's MXN35.72 close on expectations that the Company will post higher sales this year. In a report, Monex projects a 36.9% increase in net sales this year to MXN39.3 billion (US$3.42 billion) over 2003 and a 118% increase in EBITDA to MXN18.7 billion. High metal prices are bolstering the Company's financials, Monex said, adding that copper prices will average US$1.15/lb during the second half of the year. Copper closed at US$1.25/lb on the London Metal Exchange (LME) on July 7. CONTACT: GRUPO MEXICO S.A. DE C.V. Avenida Baja California 200, Colonia Roma Sur 06760 Mexico, D.F., Mexico Phone: +52-55-5264-7775 Fax: +52-55-5264-7769 Home Page: http://www.gmexico.com Contacts: Germ n Larrea Mota-Velasco, Chairman and CEO Xavier Garca de Quevedo Topete, President and COO Alfredo Casar Perez, COO, Ferrocarril Mexicano Daniel Chavez Carren, COO, Industrial Minera Mexico Daniel Tellechea Salido, VP and Administration and Finance President ING COMERCIAL: State Judge Yet to Act on Federal Court Ruling ------------------------------------------------------------- ING Comercial America, the Mexican subsidiary of Dutch financial services giant ING (NYSE: ING), awaits a decision by a state court judge regarding a lawsuit lodged against it by local fertilizer company Fertinal, reports Business News Americas. Fertinal sued ING Comercial America and 21 of its employees last year seeking damages relating to an insurance claim on its fertilizer mine in Baja California, which was damaged by Hurricane Juliette in 2001. On August 27, a small town judge in Morelos state ruled in Fertinal's favor and froze all of the insurer's bank accounts. ING managed to free up all of its assets except for US$300 million. In May, however, a federal court decided that the Morelos judge overstepped his authority and left the state court judge to overturn the earlier judge's ruling. "That is what we are waiting for," Hans Porias, ING communications director for Latin America, said in an interview with Business News Americas. It could be several months before the judge reviews the federal court's decision and lifts the asset embargo, he added. IUSACELL: U.S. Court Denies Creditors Petition ---------------------------------------------- Grupo Iusacell, S.A. de C.V. [BMV: CEL, NYSE: CEL] informs that on June 30, 2004, the Supreme Court, New York County entered a decision and order denying in its entirety the request of certain holders of 2004 senior notes that the Company be preliminarily enjoined from selling or otherwise transferring certain assets. This in connection with the extension of the lawsuit filed on January 2004, by certain holders of the Senior Notes due 2004 against our principal subsidiary, Grupo Iusacell Celular, S.A. de C.V. ("Iusacell Celular") and others. Grupo Iusacell, S.A. de C.V. (Iusacell, NYSE: CEL; BMV: CEL) is a wireless cellular and PCS service provider in Mexico encompassing a total of approximately 92 million POPs, representing approximately 90% of the country's total population. Independently of the negotiations towards the restructure of its debt, Iusacell reinforces its commitment with customers, employees and suppliers and guarantees the highest quality standards in its daily operations offering more and better voice communication and data services through state-of-the-art technology, as the new 3G network, in more populations, thanks to its aggressive expansion plan. CONTACT: Mr. Jose Luis Riera Chief Financial Officer, +5255-5109-5927 Mr. J. Victor Ferrer Finance Manage +5255-5109-5927 vferrer@iusacell.com.mx Web Site: www.iusacell.com IUSACELL: Lack of Funding May Lead to Bankruptcy ------------------------------------------------ Iusacell faces impending bankruptcy after the company failed to attract more funds to relieve its looming US$10 million debt. Industry insiders interviewed by El Economista say the company's creditors could call for technical bankruptcy because Mr. Ricardo Salinas Pliego has not injected more capital to the troubled telecommunications firm. Iusacell was scheduled to make a US$3.7 million payment on June 15, 2004. However, the Company announced that it does not have enough resources to make the payements. VITRO: Tops "Most Innovative Companies in Mexico" List ------------------------------------------------------ Due to a strategy well supported by a solid IT infrastructure in all of its businesses initiatives in Mexico and international operations, Vitro (BMV: VITROA; NYSE: VTO) achieved the first place in the fourth edition of the "50 most innovative companies in Mexico" annual survey coordinated by the Mexican edition of the InformationWeek Magazine. According to the IT specialized magazine, Vitro's position demonstrates that large corporations, consolidated companies and field pioneers, can continue to re-invent themselves depending on market conditions. A large number of corporations participated in the annual survey by submitting their answers to be evaluated by Mancera Ernst & Young and the Editorial Council of the InformationWeek M‚xico magazine. "Top management's support and the internal management practices in the IT area have allowed us to incorporate new technologies and apply them into our Company. We have defined the corporate government model to segment all initiatives and approvals, therefore all of the initiatives are aligned to the business strategy and justified under the Economic Value Creation (EVC) methodology" said Hector Pro, Vitro's Director of e-business and IT. The magazine assures that the fourth edition of the "50 Most Innovative Companies in Mexico" is considered as an significant reference for many industries and observers of the IT creative application to achieve business objectives. In 2003, Vitro implemented new technologies throughout the company, applying all initiatives, from the Help Desk outsourcing, to the CRM, mobile applications, SCM, B2E, among other. Thanks to e-procurement, Vitro purchases more than 90% of its requirements via electronic transactions, which brings significant savings in time and money. Another initiative that allows the company to reduce costs between 10 and 20% is the outsourcing infrastructure, meanwhile systems applications allow Vitro to save between 15 and 30%. Due to the use of the Economic Value Creation (EVC) methodology, Vitro's IT staff may justify technology investments and clearly explain company benefits. The same methodology allows the Company to keep track of the benefits after solutions have been implemented, a fact that helps the IT department to ensure credibility. And at the same time, the Total Quality Management model, as well as top management's support has made us one of the most recognized companies in the Technology Management practices. This ranking includes a wide variety of economic sectors, public and private companies that apply IT in Mexico, which demonstrates the survey has been applied to most national industrial activities. Vitro, S.A. de C.V. (NYSE: VTO; BMV: VITROA), 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. Its subsidiaries serve 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; plastic and aluminum containers. Vitro also produces raw materials and equipment and capital goods for industrial use. 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 nine countries, located in North, Central and South America, and Europe, and export to more than 70 countries worldwide. CONTACT: Media Mexico D.F. Mr. Antonio Ocaranza Vitro, S. A. de C.V. +52 (55) 5089-6911 aocaranza@vitro.com Web Site: www.vitro.com ======= P E R U ======= * Peru Mulling $1B Bond Issue ----------------------------- Peru hopes to reduce the US$8.543 billion debt it owes to a the Paris Club by around US$200 million per year over the next five years through a refinancing plan that would involve another bond issuance. Mr. Pedro Pablo Kuczynski, the country's Economy Minister said in a Rueters report that proceeds of the planned US$1 billion 10 to 15-year bond issue would be used to prepay part of this debt. "We owe about $700 (million) to $800 (million) a year in amortizations for the next five years, and what we'd like to do is reduce this by around $200 million ... refinancing this in the market," explained Kuczynski in an RPP radio interview. However, the minister did not provide a specific schedule for the new bond issue. The Paris Club, a loose amalgamation of 19 creditor nations including Italy, France, Germany, Japan, Britain and the United States, may accept the offer, claims Mr. Kuczynski, because many of its member nations are coping with big fiscal deficits which they can trim down with cash from the debt restructuring. An April issue worth US$500 million 12-year global bond further increased Peru's foreign debt, which is now estimated at US$22.247 billion. =============================== T R I N I D A D & T O B A G O =============================== CDC: Standard's Director Eases Repossession Worries --------------------------------------------------- A director from Standard Distributors has denied allegations made by Mr. Robert Guiseppi, the leader of NUGFW, that CDC's parent company Ansa McAl used its influence over the furniture retailer to repossess items from striking CDC workers. Mr. Nabel Hadeed, the managing director for Standard Distributors, explained in a report from the Trinidad Express that the company's computer automatically generates the repossession letters when a payment is missed. He adds that no outright repossession will be made because no repossession authority has been issued and a bailiff has not been notified. The recent picket in front of the Standard store is an offshoot of the ongoing seven-week strike at the CDC compound in Champs Fleurs that began with a dispute between workers and the management. NUGFW leaders have said that they want CDC to withdraw the worker lockout and resume negotiation with the union on a collective agreement. ================= V E N E Z U E L A ================= PDVSA: Plans Sale of Orimulsion Facilities ------------------------------------------ Venezuela's decision to stop producing orimulsion fuel could mean the sale of the first operational orimulsion plant in the country and lead to a US$2 million breach of contract lawsuit from one of its principal clients. Mr. Rafael Ramirez, the country's Energy Minister stated in a Petroleumworld article that the government has decided to stop Orimulsion production because the product has proven to be unprofitable. He claims that Venezuela lost US$12.30 a barrel last year from selling orimulsion because extra heavy crude oil, the product's main component, could be sold at a much higher price when mixed with other crudes. With the orimulsion freeze, Venezuela is exploring the possibility of unloading its orimulsion facility to Orifuel Sinovensa, a company controlled by Bitor, China National Oil and Gas Exploration and Development Corporation and Petrochina Fuel Oil. However, the decision to stop production has also contravened some of Venezuela's orimulsion delivery commitments. One of its largest clients, New Brunswick Power in Canada, has threatened to file a US$2 billion lawsuit if it fails to supply the fuel for its Orimulsion reformulated plant. Orimulsion, an alternative fuel source successfully used to replace coal or bitumen, was developed in Venezuela by INTEVEP. *********** 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 * * *