/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040824.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 Tuesday, August 24, 2004, Vol. 5, Issue 167 Headlines A R G E N T I N A CONSULTORA TECNICA: Court To Finalize List of Creditors CLINICA PRIVADA: Gears for Reorganization EDENOR: Rejects Violent Attacks From Union Members FRIGORIFICO BLOCK: Trustee to Submit General Report Today GESAL: Individual Reports Due Today HELP S.R.L.: Court Orders Liquidation LOCUCENTER S.A.: Liquidating Assets to Pay Debts MUSIMUNDO.COM: Reorganization Concluded PARMALAT ARGENTINA: Bidders' Interest Starts Waning PLAN MEDICO: Sets to Liquidate Assets TRIOMPHE S.A.: Proceeds With Reorganization B A R B A D O S CABLE & WIRELESS: Layoffs Over, Says CEO B R A Z I L BANCO VOTORANTIM: Starts $100B Eurobond Issue COSIPA: Issues Audit Statement EMBRATEL: Telmex Registers Tender Offer for Embrapar Shares HSBC BANK BRASIL: Ratings Unaffected by Acquisition HSBC BANK BRASIL: To Acquire Indusval's Consumer Finance Ops METALLURG INC.: S&P Raises Ratings to `CCC' From `D' TELEMAR: To Adjust Tariffs By September TELEMAR: Cuts Interest on Loan Transactions VARIG: Government Not Mulling Capital Injection C H I L E ENERSIS: Fitch Assigns 'BBB-' To SEC Registered Bonds G U A T E M A L A MILLICOM INTERNATIONAL: Offers GSM Service in Central America M E X I C O GRUPO IUSACELL: Inks 10-Year Contract With Unefon VOLKSWAGEN: Strike Ends As Workers Accept Wage Proposal T R I N I D A D & T O B A G O NWRHA: Grants 15% Pay Hike to Employees V E N E Z U E L A PDVSA: Delaying Investments SIDOR: Diaco Stockholders Reject Purchase Offer - - - - - - - - ================= A R G E N T I N A ================= CONSULTORA TECNICA: Court To Finalize List of Creditors ------------------------------------------------------- Court No. 20 of Buenos Aires' Civil and Commercial Tribunal will finalize the list of Consultora Tecnica S.R.L. creditors eligible for post-liquidation payments after reviewing all individual reports from the case. Mr. Julio Coy, the trustee, is scheduled to submit the individual reports today. Clerk No. 20 assists the court on this case. CONTACT: Mr. Julio Coy, Trustee Piedras 181 Buenos Aires CLINICA PRIVADA: Gears for Reorganization ----------------------------------------- Court No. 14 of La Plata's Civil and Commercial Tribunal issued a resolution opening the reorganization of Clinica Privada Dr. J J Vaccarini S.R.L., says Infobae. This announcement authorizes the Company to begin drafting a settlement proposal with its creditors in order to avoid liquidation. The reorganization further allows the Company to retain control of its assets subject to certain conditions imposed by Argentine law and the oversight of the court appointed trustee. Accounting firm "Estudio Genoro y Asociados" will serve as trustee during the course of the reorganization. The firm will be validating creditors' proofs of claims until November 12, 2004. Next, the results of the verification will be presented in court as individual reports on February 18, 2005. The trustee is also required to give the court a general report of the case on April 12, 2005. The general report summarizes events relevant to the reorganization and provides an audit of the Company's accounting and business records. The company will present the completed settlement proposal to its creditors during the informative assembly scheduled on June 3, 2005. CONTACT: Clinica Privada Dr. J J Vaccarini S.R.L. Calle 80 Nro. 570 La Plata Estudio Genoro y Asociados - Trustee Calle 80 Nro. 570 La Plata EDENOR: Rejects Violent Attacks From Union Members -------------------------------------------------- Argentine power distributor Edenor SA (DNOR.BA) strongly rejected an attack lodged by members of Argentina's electricity workers union on Thursday. Dow Jones reports that workers threw rocks and Molotov cocktails at Edenor's administrative headquarters, breaking windows on three floors and destroying the ground-level customer service center. In a statement, the company said: "It expresses its rejection of these violent actions, taking into account that it was found in the process of dialogue and negotiations with the directors of the union at Labor Ministry headquarters." Power distributor representatives and union leaders are in talks over new contracts and have asked the Labor Ministry to help mediate the process. The three groups met last week and scheduled to meet again today, Tuesday. Edenor, which is owned by Electricite de France SA (EDF.YY), has the power distribution concession for half of Buenos Aires city. FRIGORIFICO BLOCK: Trustee to Submit General Report Today --------------------------------------------------------- Ms. Maria Elena Mercante, the trustee handling the liquidation of Frigorifico Block S.A., submits the general report of the case today, August 24, 2004. The report provides the court with an audit of the Company's accounting and business records. Court No. 20 of Buenos Aires' Civil and Commercial Tribunal has jurisdiction over this case, which will end with the sale of the Company's assets to repay its debt obligations. CONTACT: Frigorifico Block S.A. Murguiondo 1846 Buenos Aires Ms. Maria Elena Mercante Uruguay 772 Buenos Aires GESAL: Individual Reports Due Today ----------------------------------- Individual reports from the Gesal S.A. bankruptcy case will be submitted today at Court No. 1 of Villa Mercedes' Civil and Commercial Tribunal. Court-appointed trustee Ms. Adriana Noemi Piccolo, will prepare these documents from the creditors' claims submitted during the credit verification period. The court will use the individual reports to come up with a list of creditors eligible to receiver post-liquidation payments. CONTACT: Ms. Adriana Noemi Piccolo, Trustee Hipolito Irigoyen 215 Villa Mercedes (San Luis) HELP S.R.L.: Court Orders Liquidation ------------------------------------- Court No. 18 of Buenos Aires' Civil and Commercial Tribunal ordered the liquidation of Help S.R.L. after the company defaulted on its debt obligations, Infobae reveals. The pronouncement will effectively place the company's affairs as well as its assets under the control of Mr. Walter Arturo Calleja, the court-appointed trustee. Mr. Calleja will verify creditors' proofs of claims until September 20, 2004. The verified claims will serve as basis for the individual reports to be submitted in court on November 2, 2004. The submission of the general report follows on December 15, 2004. Clerk No. 35 assists the court on this case, which will end with the disposal of the company's assets in favor of its creditors. CONTACT: Mr. Walter Arturo Calleja, Trustee Lambare 1140 Buenos Aires LOCUCENTER S.A.: Liquidating Assets to Pay Debts ------------------------------------------------- Locucenter S.A., a Buenos Aires-based phone booth installation firm, prepares to wind-up its operation after receiving a liquidation order from Court No. 8 of the city's Civil and Commercial Tribunal, relates Clarin. The Company's assets will be liquidated in order to repay its debt obligations. CONTACT: Locucenter S.A. Avenida Jujuy 275 Buenos Aires MUSIMUNDO.COM: Reorganization Concluded --------------------------------------- The settlement plan proposed by Musimundo.com S.A. for its creditors acquired the number of votes necessary for confirmation. As such, the plan has been endorsed by the court and will now be implemented by the company. CONTACT: Musimundo.com S.A. Buenos Aires Tel: (5411) 4555-5555 Web Site: www.musimundo.com PARMALAT ARGENTINA: Bidders' Interest Starts Waning --------------------------------------------------- The sale of the Argentine assets of insolvent Italian dairy company Parmalat has proven to be much more complicated than previously assumed, El Cronista suggested. When the sale was announced in May, several investors came out to express their desire to place a bid. However, a high asking price and the company's high debt have seemed to dampen the interest of some potential investors. Now, only five bidders remain in the list of potential acquirers. These are investment funds Pegasus Capital, AIG, Dolphin Fund and businessmen Jorge Cinque and Sergio Teselli. Of these bidders, Pegasus Capital and AIG seem to be the companies with the highest chances to close a deal. Parmalat has set the price of its Argentinean assets at US$20 million plus debt, which is estimated at more than US$70 million. PLAN MEDICO: Sets to Liquidate Assets ------------------------------------- Buenos Aires-based medical benefits company Plan Medico Personal Oroville entered bankruptcy protection on orders from Court No. 15 of the city's Civil and Commercial Tribunal, reports Clarin. The bankruptcy order transfers control of the Company to a court-appointed trustee. CONTACT: Plan Medico Personal Oroville Avenida Gaona 3519 Buenos Aires TRIOMPHE S.A.: Proceeds With Reorganization ------------------------------------------- Court No. 17 of Buenos Aires' Civil and Commercial Tribunal approved the "Concurso Preventivo" petition filed by Triomphe S.A., reports local news source Clarin. The Company, which listed liabilities of US$4,887.661.17, will undergo a reorganization process under the supervision of a court-appointed trustee. Clerk No. 33 assists the court on this case. CONTACT: Triomphe S.A. Avenida Cordoba 875 Buenos Aires =============== B A R B A D O S =============== CABLE & WIRELESS: Layoffs Over, Says CEO ---------------------------------------- The spate of personnel retrenchments that have affected numerous employees of Cable & Wireless Caribbean in the last three years is over, says CEO Len de Burros. Asia Intelligence Wire reports that the Company will now shift its restructuring exercises towards creating strategies to improve its services. Improved service will allow Cable & Wireless Caribbean to fight tough competition in the region's newly liberalized telecom marker by providing new technology to its clients. While new players such as Digicel and AT&T wireless have challenged the Company's dominance, Mr. de Burros maintains that Cable & Wireless still stands as the leading telecoms provider in the region. =========== B R A Z I L =========== BANCO VOTORANTIM: Starts $100B Eurobond Issue --------------------------------------------- Brazilian bank Banco Votorantim started late Thursday a US$100 million offer of three-year Eurobonds, which are expected to yield 5.125% to 5.375% annually. Brazilian bank Banco Itau (NYSE: ITU) is underwriting the operation and the issue should be completed by August 27. Sao Paulo-based Banco Votorantim focuses mainly on corporate banking and it forms part of the Votorantim group, which is one of Brazil's largest industrial conglomerates. COSIPA: Issues Audit Statement ------------------------------ The following audit statement is a translation into English of Independent Auditors' Special Review Report on Quarterly Information Originally Issued in Portuguese: The Board of Directors and Shareholders Companhia Siderurgica Paulista - COSIPA Belo Horizonte - MG 1. We have carried out a special review of the accompanying quarterly information (ITR) of Companhia Siderurgica Paulista - COSIPA as of and for the three-months ended June 30, 2004, which comprises the balance sheet and the statement of operations of the parent company and consolidated, notes to quarterly information and management's discussion and analysis, prepared in accordance with accounting principles generally accepted in Brazil. The computation of the technical reserves, on which the calculation of the actuarial liabilities was based, was carried out by independent actuaries. Our special review report, with respect to the determination of these actuarial liabilities, parent company and consolidated, was solely based upon this actuarial report, in the amounts of R$371.451 thousand at June 30, 2004 and of R$12.991 thousand for the income for the semester then ended. 2. We conducted our review in accordance with specific standards established by the Brazilian Accountants' Institute - IBRACON and the Brazilian Federal Accounting Council, which consisted principally of (a) inquiries and discussion with the persons responsible for the accounting, financial and operating areas about the criteria adopted in preparing the quarterly information; and (b) review of the information and subsequent events that have or could have material effects on the financial position and operations of the Company and subsidiaries. 3. Based on our special review, and on the actuarial report issued by the independent actuaries, we are not aware of any relevant modifications that should be made to the quarterly information referred to in the first paragraph in order for them to be in accordance with accounting principles established by Brazilian Corporate Law and standards issued by the Brazilian Securities and Exchange Commission (CVM), specifically applicable to the preparation of the required quarterly information. 4. The quarterly information for the three-months ended March 31, 2004 and June 30, 2003, included in certain fields of the attached quarterly information, were reviewed by other independent auditors, who issued special review reports dated April 30, 2004 and July 30, 2003, respectively. Both audit reports included emphasis paragraphs with respect to default situations in which the Company did not meet certain financial covenants required by long-term debt contracts. Such defaults could trigger the acceleration of the long-term financings` due dates. The auditors mention in their reports that the Company obtained waivers from the banks for such defaults with respect to December 31, 2003 and March 31, 2004. Further, the auditors also emphasize that the Company results from a societary, financial and net asset restructuring carried out by Usinas Siderurgicas Minas Gerais S.A. - USIMINAS and by the Company, approved in 1999. Certain financial information for the year ended December 31, 2003, included in this quarterly information, were audited by the same auditors who issued their report on March 01, 2004 with the same emphasis paragraphs mentioned above. Sao Paulo - SP August 04, 2004 Ernst & Young Auditores Independentes CRC - 2SP 015.199/O-6 Mr. Joao Ricardo Pereira da Costa Contador CRC - 1RJ 066.748/O-3-S-SP To view financial statements: http://bankrupt.com/misc/Cosipa_2Q04.pdf CONTACT: Mr. Gilson Rodrigues Bentes CFO's Assistant Tel: (11) 5070-8980 Mr. Leandro Jose Cappa de Oliveira Financial Economic Analyst Tel.: (11) 5070-8887 E-mail: investidores@cosipa.com.br Web Site: http://cosipa.infoinvest.com.br EMBRATEL: Telmex Registers Tender Offer for Embrapar Shares ----------------------------------------------------------- Embratel Participacoes S.A. (Embrapar) announced that it was informed by its controlling shareholder, Telefonos de Mexico S.A. de C.V. (Telmex), that last Friday Telmex, through its Brazilian subsidiary, Telmex Solutions Telecomunicacoes Ltda., filed with the Brazilian Securities and Exchange Commission - Comissao de Valores Mobiliarios (CVM) a request to register a tender offer for Embrapar's ordinary shares held by the remaining shareholders of Embrapar. The tender offer price will be R$15,11 (fifteen reais and eleven cents) for each lot of 1000 ordinary shares corresponding to 80% of the amount paid by Telmex in acquiring equity interests equivalent to each lot of 1000 ordinary shares on the acquisition of the controlling stake of Embrapar concluded on July 23, 2004. Telmex further informs that the tender price of R$15,11 (fifteen reais and eleven cents) per lot of 1000 ordinary shares will be paid in cash and in Reais adjusted pro rata temporis by the "Taxa Referencial" -TR plus 6% per annum (360 days basis) from the 23/7/04 until the date of the financial settlement of the tender offer. The tender will be conducted through a public offering at the Bolsa de Valores de Sao Paulo according to the format described in the public offering documentation that has been presented to be analyzed and approved by CVM. About Embratel 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. About TELMEX TELMEX is the leading telecommunications company in Mexico with 16.5 million telephone lines in service, 2.8 million line equivalents for data transmission and 1.6 million Internet accounts. TELMEX offers telecommunications services through a fiber optic digital network. TELMEX and its subsidiaries offer a wide range of advanced telecommunications, data and video services, Internet access as well as integrated telecom solutions for corporate customers. Additionally, the company offers telecommunications services through its affiliates in Argentina, Brazil, Chile, Colombia and Peru. CONTACT: Ms. Silvia M.R. Pereira Investor Relations Tel: (55 21) 2121-9662 Fax: (55 21) 2121-6388 E-mail: silvia.pereira@embratel.com.br invest@embratel.com.br Web Site: www.embratel.com.pr HSBC BANK BRASIL: Ratings Unaffected by Acquisition --------------------------------------------------- Standard & Poor's Ratings Services said Friday that the announcement of the acquisition of the financial company Valeu Promotora de Vendas, the securitization company Indusval Securitizadora, and the credit portfolio of Indusval Multistock Financeira (from the Brazilian group Indusval) by HSBC Bank Brasil S.A. (HSBC; LC: BB/Stable/B; FC: B+/Positive/B) does not affect the ratings or outlooks on HSBC in Brazil. The operations' increase in the retail portfolio of Brazilian reais (BrR) 253 million reveals the consistency of this acquisition with the bank's strategy in increasing its presence in the Brazilian retail market to face the rising competition. Valeu's operations will be incorporated into HSBC's consumer finance portfolio and will increase its retail customer base by around 1.1 million. Beyond increasing the portfolio and its stores (61 units will be added to the 131 active stores of Losango), one of the main positive points is the low overlapping with active clients of HSBC group-only around 15%. Standard & Poor's does not expect any substantial change in the liquidity or capitalization positions of HSBC in Brazil, because the sum involved in the transaction (BrR371 million, from which BrR253 million relates to the credit portfolio and BrR115 million refers to goodwill that is expected to be amortized in up to 10 years) is substantially lower than the liquidity position of HSBC group in Brazil (historically above BrR7 billion). ANALYSTS: Claudio Gallina, Sao Paulo (55) 11-5501-8938 Daniel Araujo, Sao Paulo (55) 11-5501-8939 HSBC BANK BRASIL: To Acquire Indusval's Consumer Finance Ops ------------------------------------------------------------ HSBC Bank Brasil S.A. has entered into an agreement to acquire the consumer finance operations of Indusval Multistock Group, which were formerly known as Maxima, for a total consideration of BRL371 million (approximately US$124 million) subject to final adjustments at closing. This includes the purchase of Indusval's consumer finance sales promotion company (`Valeu Promotora de Vendas'), its securitisation subsidiary and consumer finance loans amounting to approximately BRL253 million. Completion of the transaction, which will be funded from internal resources, is subject to conditions including regulatory approvals. Indusval's consumer finance business in Brazil operates in two main areas - store loans through some 3,250 retailers and personal loans through its own network of 61 branches and 1.1 million active customers. Emilson Alonso, CEO of HSBC Bank Brasil, said: "This transaction reaffirms HSBC's strong commitment to Brazil and to consumer finance. It will help us grow our share of the country's consumer finance market where we already have a leading position through our acquisition of the Losango consumer finance business in 2003." Manoel Felix Cintra Neto, president of Indusval Multistock, said: "We are happy to have built up such a successful business that will enhance HSBC's presence in Brazil. This transaction will allow us to focus our efforts in the middle market segment, including possible acquisitions in order to expand our product scope." CONTACT: Travessa Oliveira Bello 34 Sobreloja, Centro Curitiba, Brazil PR 80020-030 Tel: (+55) 41 321 6161 Fax: (+55) 41 321 6549 President: Youssef A Nasr CEO: Emilson Alonso METALLURG INC.: S&P Raises Ratings to `CCC' From `D' ---------------------------------------------------- Standard & Poor's Rating Services raised its corporate credit rating on New York, N.Y.-based Metallurg Inc. and its parent Metallurg Holdings Inc. to 'CCC' from 'D'. At the same time, Standard & Poor's raised its ratings on Metallurg's 11% senior unsecured notes due 2007 to 'CC' from 'D' and Metallurg Holdings' 12.75% senior discount notes due 2008 to 'CC' from 'D'. The outlook is negative. The upgrade follows the recent $1.5 million interest payment made by Metallurg Holdings to public holders of its 12.75% senior discount notes due 2008 within the 30-day grace period provided under the bond indenture, and the refinancing of Metallurg's credit facility. The new credit facility consists of a $21 million letter of credit facility and a $10 million term loan at Metallurg and a $1.7 million term loan at Metallurg Holdings, all maturing on Aug. 31, 2007. The term loan at Metallurg Holdings was used to help make an interest payment on its 12.75% notes. "The ratings reflect an onerous debt burden, limited liquidity, and dependence on favorable industry conditions," said Standard & Poor's credit analyst Dominick D'Ascoli. Metallurg produces and markets metal alloys used by manufacturers of steel, aluminum, and superalloys from production facilities located in the U.S., U.K., and Brazil. The company's poor financial condition resulted from high financial leverage and a downturn in its end markets, including steel, aluminum, and aerospace. TELEMAR: To Adjust Tariffs By September --------------------------------------- TELE NORTE LESTE PARTICIPACOES S.A. (NYSE: TNE), the holding company of telecommunication services providers in the northern, northeastern and eastern regions of Brazil, announced that, in accordance with the Superior Court's decision to reinstate the IGP-DI index as the adjustment factor, tariffs would begin to reflect the change as of the first day of September. The adjustments relating to 2003 will be applied, to the tariff rates in effect on June 30, 2004, in two steps (Sep 1st and Nov 1st) as shown in this table: http://bankrupt.com/misc/TelGra.doc CONTACT: TNE - INVESTOR RELATIONS Mr. Roberto Terziani (terziani@telemar.com.br) 55 21 3131 1208 or Mr. Carlos Lacerda (carlosl@telemar.com.br) 55 21 3131 1314 Fax: 55 21 3131 1155 The Global Consulting Mr. Kevin Kirkeby Tel: 1 646.284.9416 (kkirkeby@hfgcg.com) Web site http://www.telemar.com.br/ir TELEMAR: Cuts Interest on Loan Transactions ------------------------------------------- TELE NORTE LESTE PARTICIPACOES S.A. (NYSE: TNE), the holding company of telecommunication services providers in the northern, northeastern and eastern regions of Brazil, announced that on August 16, 2004, as a result of its improved financial and credit position, coupled with the more favorable perception of Brazil country risk, Telemar finalized an unprecedented US$ 816 million loan from a syndicate comprised of more than 20 banks, with ABN AMRO and Citigroup as the lead arrangers. Telemar availed itself of a clause in a loan agreement, originally granted in 2001 to finance the Oi project, to reduce interest rates on the contracted amounts and to raise new funds. Pursuant to the original agreement, lenders had two options, receive prepayment of the loan or enter into a new transaction. Of the transaction's US$ 816 million total, US$150 million represents new funds and the balance will bear reduced spreads. The term of the loan is three years on average, representing present value interest savings of US$ 25 million. Interest over Libor ranges from 2.125% p.a. to 3.75% p.a. CONTACT: TNE - INVESTOR RELATIONS Mr. Roberto Terziani (terziani@telemar.com.br) 55 21 3131 1208 or Mr. Carlos Lacerda (carlosl@telemar.com.br) 55 21 3131 1314 Fax: 55 21 3131 1155 The Global Consulting Mr. Kevin Kirkeby Tel: 1 646.284.9416 (kkirkeby@hfgcg.com) VARIG: Government Not Mulling Capital Injection ----------------------------------------------- Brazil's Finance Minister Antonio Palocci announced Friday that the government is not considering a capital injection into troubled flagship airline Varig, reports Reuters. The official's comment follows an announcement by Carlos Wilson, the head of state-run airport authority Infraero, that the government is discussing a plan to take control of Varig temporarily and then sell it to a private investor. "At this moment there is no study. And the constitution doesn't allow me to grant any credit, to individuals or companies," Palocci said. Varig has debts totaling BRL6 billion (US$2 billion), two-thirds of which is held by the government and state-run companies. "The company is practically state-owned as it is the government that is sustaining it. It is us who are injecting funds and having patience not to execute debts," Wilson said. Wilson further said Varig's controlling entity, the Ruben Berta Foundation, would have a symbolic participation in the new Varig that will be offered for sale. CONTACT: VARIG (Viacao Aerea Rio-Grandense, S.A.) Rua 18 de Novembro No. 800, Sao Joao 90240-040 Porto Alegre, Rio Grande do Sul, Brazil Phone: (51) 358-7039/7040 (51) 358-7010/7042 Fax: +55-51-358-7001 Home Page: www.varig.com.br/english/ Contacts: Dorival Ramos Schultz, EVP Finance and CFO E-mail: dorival.schultz@varig.com.br Investor Relations: Av. Almirante Silvio de Noronha, n 365-Bloco "B" - s/458 / Centro Rio de Janeiro, Brazil ========= C H I L E ========= ENERSIS: Fitch Assigns 'BBB-' To SEC Registered Bonds ----------------------------------------------------- Fitch Ratings has assigned a 'BBB-' rating to US$350,000,000 of new 7.375% notes to be issued by ENERSIS S.A., acting through its Cayman Island's Branch ('Enersis') in its announced Exchange Offer to replace outstanding unregistered notes due 2014 which were originally sold in November 2003 in a private offering (the 'old notes'). The terms of the new notes are identical to those of the old notes except for the fact that the new notes were publicly registered with the SEC under the Securities Act of 1933. The Exchange Offer commenced on August 6, 2004 and is expected to expire on September 3, 2004. Final settlement is expected to occur no later than September 10, 2004. The Rating Outlook for Enersis' ratings is Stable. Enersis is the largest private electricity distribution group in Latin America. The company has varying ownership interests in electric-distribution companies in Argentina, Brazil, Chile, Colombia and Peru; electric-generating companies in Argentina, Brazil, Chile, Colombia and Peru through Endesa-Chile; and electric utility related service companies throughout Latin America. Enersis is currently 60.62% owned by Endesa-Spain. ================= G U A T E M A L A ================= MILLICOM INTERNATIONAL: Offers GSM Service in Central America ------------------------------------------------------------- Millicom International Cellular S.A. (NasdaqNM:MICC) (Stockholmsborsen:MIC), announced Friday that its operations in Guatemala, El Salvador and Honduras have launched GSM services in the 850 MHz frequency, under the brand name of Tigo. The service will cover 92% of the population of El Salvador and 75% of the populations of Guatemala and Honduras. Customers will benefit from service enhancements including innovative wireless internet browser (WIB) services through the Tigo Menu. Comcel in Guatemala and Telemovil in El Salvador will continue to operate their TDMA cellular services alongside the GSM offering and, in Honduras, Celtel will continue to operate its CDMA service. Marc Beuls, President and CEO of Millicom International Cellular commented: "Central America is our largest cluster in terms of revenue and we expect the launch of GSM services to create added momentum in terms of both customer intake and revenue growth. We are committed to providing our customers with the most advanced technology, the best services and the widest regional coverage at the lowest tariffs, which will enable us to grow our market share." Millicom International Cellular S.A. is a global telecommunications investor with cellular operations in Asia, Latin America and Africa. It currently has a total of 16 cellular operations and licenses in 15 countries. The Group's cellular operations have a combined population under license of approximately 387 million people. CONTACTS: Millicom International Cellular S.A. Luxembourg Mr. Marc Beuls President and Chief Executive Officer Telephone: +352 27 759 327 Mr. Andrew Best Investor Relations Telephone: +44 20 7321 5022 =========== M E X I C O =========== GRUPO IUSACELL: Inks 10-Year Contract With Unefon ------------------------------------------------- Grupo Iusacell, S.A. de C.V. (NYSE: CEL - News; BMV: CEL), and Operadora Unefon, S.A. de C.V., principal subsidiary of Unefon, S.A. de C.V. (BMV: UNEFON), signed the final contract and annexes that define the technical aspects involved in providing exchange capacity and roaming services. The contract period is 10 years, during which time both companies will exchange services in regions 2, 3, 4, 5, 6, 7, 8 and 9 of Mexico. The current contract has been approved by both the related parties committee and the board of directors of Grupo Iusacell. Both companies are ready to begin exchanging services. "We believe this contract will benefit Iusacell customers allowing for an increase in company capacity and service coverage," said Gustavo Guzman, CEO of Grupo Iusacell. About Iusacell Grupo Iusacell, S.A. de C.V. (Iusacell, NYSE and 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. Independent of the negotiations towards the restructuring 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, such as its new 3G network, throughout all of the regions in which it operate. CONTACT: Grupo Iusacell SA de CV Prolongacion Paseo, De La Reforma 1236 Mexico, D.F., 05348 Phone: (525) 109-4400 Web Site: http://www.iusacell.com.mx VOLKSWAGEN: Strike Ends As Workers Accept Wage Proposal ------------------------------------------------------- Volkswagen and union members reached an agreement on wages on Saturday, ending a three-day-old strike at the car plant in the mountains of Puebla, 65 miles (105 kms) southeast of Mexico City, reports Dow Jones Newswires. The plant's 9,500 workers had requested an 8.5% salary increase, but finally accepted the company's offer of 4.5%, plus a 1.6% increase in benefits. Some workers have also wanted to return to a full, five-day work week after schedules were trimmed to four days last year to save money. However, that issue didn't appear to have been resolved in the contract negotiations. ================================= T R I N I D A D & T O B A G O ================================= NWRHA: Grants 15% Pay Hike to Employees --------------------------------------- Monthly paid employees of Trinidad's North West Regional Health Authority (NWRHA) will receive a 15 per cent increase in their salaries beginning August 26. Finance Vice President Ravi Ramcharan said in an article from the Trinidad Express that the agency is working to ensure that the adjustments will be made on time. He further assures that the move will not affect NWRHA's financial and payroll systems. CONTACT: North West Regional Health Authority Jerningham Place Jerningham Avenue Belmont Port of Spain (868) 624-3845 ================= V E N E Z U E L A ================= PDVSA: Delaying Investments --------------------------- State oil company Petroleos de Venezuela SA (PDVSA) still has US$3 billion left in its US$4.5 billion investment budget for 2004, El Universal reports, citing PDVSA Vice President for Finances Jose Rojas. Rojas gave no reason for the spending delays. The executive also revealed that PDVSA may boost operating expenses by about US$2 billion to cover increased spending on social programs. Operating costs may rise to US$11.3 billion from the previously announced US$9.5 billion. PDVSA earlier announced that it would spend up to US$3.7 billion on social, health, educational and infrastructure programs this year. According to Bloomberg, former PDVSA managers, who got sacked in last year's two-month long strike, criticized the spending, saying it is taking funds from the Company's energy businesses. SIDOR: Diaco Stockholders Reject Purchase Offer ----------------------------------------------- Colombian iron and steel group Diaco rejected a purchase offer from Venezuela's Siderurgica del Orinoco (Sidor), reports Business News Americas. In a statement to Colombia's securities regulator, Diaco said its stockholders rejected the offer. Diaco's announcement came amid rumors in the market that suggested Diaco have sold stock to Sidor. Sector analyst Juan Pablo Gomez suggested to Business News Americas that Diaco's decision was based on the amount offered - US$125mn - which he considers too low. *********** 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 * * *