/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040825.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 Wednesday, August 25, 2004, Vol. 5, Issue 168 Headlines A R G E N T I N A BAPRO: Buenos Aires Seeks Congress' Approval to Use Public Funds CARTEX S.A.: Asks to Restructure Debt CLUB DE GIMNASIA: Seeks Reorganization Approval from Court COINDEL: Verification Deadline Approaches EDENOR: Investigates Cause of Power Cut EL RAITAN: Court Gives Green Light to Restructuring EUROMAYOR: Fitch Maintains Default Ratings on Bonds G. CACERES Y CIA: Trustee to Close Claims Check GARAVAGLIA HNOS: Gears for Reorganization GRAFIBORD S.A.: Court Favors Creditor's Bankruptcy Petition KITARIA S.A.: Liquidates Assets to Pay Debts LINEAS LEON: Court Appoints Trustee for Reorganization MARINKA S.A.: Begins Liquidation Proceedings MASTELLONE HERMANOS: S&P Affirms `raD' Rating on Bonds N.Y M. GARAVAGLIA: Court Grants Reorganization Plea OVOMAX S.A.: Enters Bankruptcy on Court Orders PC PLUS: Court Orders Liquidation PUERTO CONCORDIA: Reorganization Concluded SOLDATI: Agrees to Parque and Tren Split TELEFONICA DE ARGENTINA: Strikes Concession Accord With Govt. TEODORO J: Liquidating Assets to Pay Debts TERMOGLASS S.R.L.: Court Declares Company Bankrupt TIPEI S.A.: Enters Bankruptcy on Court Orders TRANSPORTES GARCIA: Verification Deadline Set WELMAR: Credit Validation to End Friday * ARGENTINA: White & Case to Represent Bondholders B E L I Z E * BELIZE: S&P Lowers Long-Term Ratings; Outlook Negative B E R M U D A FOSTER WHEELER: Stresses Importance of Exchange Offer LINES OVERSEAS: Managing Director Ordered to Appear Before Court LORAL SPACE: Telstar 18 Completes In-Orbit Testing B R A Z I L BRASKEM: Develops New Technology for Polypropylene Use ELETROPAULO METROPOLITANA: May Bid in November Power Auction C H I L E ENERSIS: Exchange Offer Expires September 3 C O L O M B I A PAZ DEL RIO: To Name Company to Carry Out Rationalization Plan J A M A I C A KAISER ALUMINUM: Court Extends Exclusivity Agreement - - - - - - - - ================= A R G E N T I N A ================= BAPRO: Buenos Aires Seeks Congress' Approval to Use Public Funds ---------------------------------------------------------------- The Argentine province of Buenos Aires is seeking approval from congress to use future public funds to support Banco de la Provincia de Buenos Aires (Bapro), the country's second-largest bank in terms of assets. Dow Jones Newswires reports that a bill, which would establish a 12-year flow of periodic disbursements to Bapro from the provincial government, the bank's sole shareholder, was sent to the Province of Buenos Aires Senate last week. The "Fund to Sustain the Value of Guaranteed Bonds" is intended as a backup to the bank's ARS8 billion ($1=ARS3.0075) portfolio of "guaranteed loans," a category of federal government debt bought by numerous banks in a debt swap that formed part of pre- default sovereign restructuring in December 2001. Without these funds, Bapro would find it hard to comply with an Argentine Central Bank regulation requiring banks to gradually write down the value of their government debt holdings over time. According to an earlier report in El Cronista newspaper, a total amount of ARS1.5 billion will be disbursed over 12 years. Bapro is one of two public banks cited by the International Monetary Fund as needing restructuring after the crisis. The other is the Banco de la Nacion, Argentina's largest bank, which is owned by the federal government. CARTEX S.A.: Asks to Restructure Debt ------------------------------------- Cartex S.A., a sports token manufacturer in Buenos Aires, requested for reorganization after failing to pay its liabilities since May 31, 2004. The reorganization petition, once approved by the court, will allow the company to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending before Judge Gutierrez Cabello of Buenos Aries' Civil and Commercial Tribunal Court No. 7. Dr. Giardinieri, Clerk of Court No. 14, assists on this case. CONTACT: Cartex S.A. Marcos Sastre 4994 Buenos Aires CLUB DE GIMNASIA: Seeks Reorganization Approval from Court ---------------------------------------------------------- Judge Vasallo of Buenos Aires' Civil and Commercial Tribunal Court No. 5 is currently reviewing the merits of the reorganization petition filed by Club de Gimnasia y Esgrima. Argentine daily La Nacion reports that the company filed the request after defaulting on its debt payments since June 30 this year. The reorganization petition, if granted by the court, will allow the sports company to negotiate a settlement with its creditors in order to avoid a straight liquidation. Dr. Djivaris, Clerk No. 10 assists the court on this case. CONTACT: Club de Gimnasia y Esgrima Bartolome Mitre 1142 Buenos Aires COINDEL: Verification Deadline Approaches ----------------------------------------- Creditors of bankrupt Coindel S.A.I.C.F.I. y A.G. have until Friday, August 27, 2004, to submit proofs of their claims for verifications. All pertinent documents should be submitted to accounting firm "Estudio Soto, Torresin". Failure to comply with the verification deadline will mean disqualification from the payments to be made once the Company's assets are liquidated. CONTACT: Coindel S.A.I.C.F.I. y A.G. Talcahuano 439 Buenos Aires Estudio Soto, Torresin, Trustee French 2394 Buenos Aires EDENOR: Investigates Cause of Power Cut --------------------------------------- Argentine power distributor Edenor SA is now investigating the cause of a fire in one of its transformers that led to a power cut for about half an hour on Monday morning, reports Business News Americas. Edenor spokesperson Alberto Lippi related the incident affected service in 12 of Edenor's substations and affected 455,000 of the company's clients for a period of 15-34 minutes. Some clients of fellow distributor Edesur were also affected due to a "knock-on" effect, Lippi added. "We have started to carry out the necessary studies to determine the causes of the incident," Lippi said, adding: "The first priority was to re-establish service as soon as possible." Last week, members of Argentina's electricity workers union threw rocks and Molotov cocktails at Edenor's administrative headquarters, breaking windows on three floors and destroying the ground-level customer service center. Power distributor representatives and union leaders are in talks over new contracts and have asked the Labor Ministry to help mediate the process. EL RAITAN: Court Gives Green Light to Restructuring --------------------------------------------------- Judge Ojea Quintana, serving at Court No. 12 of Buenos Aires' Civil and Commercial Tribunal, approved the "Concurso Preventivo" petition filed by El Raitan S.R.L., reports local news source La Nacion. The Company will undergo a reorganization process, with Ms. Susana Santarsola as trustee. She will verify creditors' proofs of claim until September 27, 2004. Verifications are done to ascertain the nature and amount of the Company's debts. The receiver will also prepare the individual and general reports on the case. During the Informative Assembly on June 15 next year, the company will present a completed settlement plan for the approval of its creditors. Clerk No. 23, Dr. Perez, assists the court on the case. CONTACT: El Raitan S.R.L. Avenida La Plata 293 Buenos Aires Ms. Susana Santarsola, Trustee Marcelo Torcuato de Alvear 1364, piso 3ø "C" Buenos Aires EUROMAYOR: Fitch Maintains Default Ratings on Bonds --------------------------------------------------- Fitch Argentina Calificadora de Riesgo S.A. maintained the `D(arg)' rating assigned to a total of US$10 million of corporate bonds issued by Argentine company Euromayor S.A. de Inversiones. The Company's finances as of April 30, 2004 were used as basis for the issued rating. The Comision Nacional de Valores, Argentina's securities regulator, described the bonds as "Primera Serie por 10 millones de U$S dentro de un Programa Global". These bonds, which matured on April 28, 2003, are classified under "Series and/or Class". Fitch assigns a `D(arg)' rating to bonds that are in payment default. In addition, Fitch maintained the `CCC(arg)' rating assigned to the following corporate bonds from Euromayor based on the Company's financial standing as of April 30, 2004: - ARP4.4 million of bonds called "Serie II Clase pesos" - US$3 million of "Serie II Clase dolares", The rating also applied to: - US$3 million of "Serie I Clase dolares" - ARS6.8 million of "Serie I Clase pesos" The `CCC(arg)' rating denotes that the obligations have extremely weak credit risk relative to other issues in Argentina. Fitch said that the Company's capacity to meet its financial obligations ion this debt is solely reliant on favorable business and economic conditions. G. CACERES Y CIA: Trustee to Close Claims Check ----------------------------------------------- Mr. Gustavo Vignale, trustee for the G. Caceres y Cia S.R.L. bankruptcy case, will examine and authenticate creditors' claims until Friday, August 27, 2004. This is done to determine the nature and amount of the Company's debts. Creditors must have their claims authenticated by the trustee by the said date in order to qualify for the payments that will be made after the Company's assets are liquidated. CONTACT: G. Caceres y Cia S.R.L. Avenida Forest 5160 Buenos Aires Mr. Gustavo Vignale, Trustee Vuelta de Obligado 2717 Buenos Aires GARAVAGLIA HNOS: Gears for Reorganization ----------------------------------------- Court No. 17 of La Plata's Civil and Commercial Tribunal issued a resolution opening the reorganization of Garavaglia Hnos S.H., reports Infobae. This pronouncement 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. Mr. German Daniel Mancebo will serve as trustee during the course of the reorganization. He will be validating creditors' proofs of claims until October 4, 2004. The results of the verification will be presented in court as individual reports on November 16, 2004. The trustee is also required to give the court a general report of the case on December 30, 2004. The general report summarizes events relevant to the reorganization and provides an audit of the Company's accounting and business records. Garavaglia Hnos will present the completed settlement proposal to its creditors during the informative assembly scheduled on June 15, 2005. CONTACT: Garavaglia Hnos S.H. Del Carmen 1001 Ca¤uelas Mr. German Daniel Mancebo, Trustee Calle 35 Nro. 824 La Plata GRAFIBORD S.A.: Court Favors Creditor's Bankruptcy Petition ----------------------------------------------------------- Cooperativa Concred Ltda successfully sought the bankruptcy of Grafibord S.A. after Judge Ottolenghi of Buenos Aires' Court No. 4 declared the Company "Quiebra," reports La Nacion. The creditor sought for the Company's bankruptcy after the latter failed to pay debts amounting to US$5,150. As such, the graphics company will now start the bankruptcy process with Mr. Omar Lares as trustee. Creditors of the Company must submit their proofs of claim to the trustee before October 6, 2004 for authentication. Failure to do so will mean a disqualification from the payments that will be made after the Company's assets are liquidated. Dr. Juarez, Clerk No. 7, assists the court on the case, which will culminate in the liquidation of all of its assets. CONTACT: Grafibord S.A. Avenida Santa Fe 1385, Piso 2 Buenos Aires Mr. Omar Lares. Trustee Viamonte 749, Piso 7 "C" Buenos Aires KITARIA S.A.: Liquidates Assets to Pay Debts -------------------------------------------- Kitaria S.A. will begin liquidating its assets following the bankruptcy order issued by Court No. 4 of Buenos Aires' Civil and Commercial Tribunal, says Infobae. The bankruptcy ruling places the company under the supervision of court-appointed trustee, Ms. Silvia Amanda Ferrandina. The trustee will verify creditors' proofs of claims until September 13, 2004. Clerk No. 7 assists the court on this case. CONTACT: Ms. Silvia Amanda Ferrandina, Trustee Asuncion 4642 Buenos Aires LINEAS LEON: Court Appoints Trustee for Reorganization ------------------------------------------------------ Lineas Leon S.A., a company operating in Buenos Aires, is ready to start its reorganization after Court No. 15 of the city's Civil and Commercial Tribunal appointed Ms. Eva Malvina Gorsd to supervise the proceedings as trustee. Clerk No. 29 assists the court on this case. An Infobae report states that the trustee will verify creditors claims until October 5, 2004. Afterwards, Ms. Gorsd will present these claims as individual reports for final review by the court on November 17, 2004. She will also provide the court with a general report pertaining to the Company's reorganization on December 30, 2004. The court has scheduled the informative assembly on April 7 next year. CONTACT: Lineas Leon S.A. Avda Corrientes 2565 Buenos Aires Ms. Eva Malvina Gorsd, Trustee Paraguay 1225 Buenos Aires MARINKA S.A.: Begins Liquidation Proceedings -------------------------------------------- Marinka S.A., a company operating in Buenos Aires, will begin liquidating its assets after Court No. 14 of the city's Civil and Commercial Tribunal declared the company bankrupt. Infobae reveals that the bankruptcy process will commence under the supervision of court-appointed trustee, Ms. Susana Graciela Marino. The trustee will review claims forwarded by the company's creditors until October 21, 2004. After claims verification, the trustee will submit the individual reports for court approval on December 2, 2004. The submission of the general report will follow on February 16 next year. Clerk No. 27 assists the court on this case. CONTACT: Ms. Susana Graciela Marino, Trustee Uruguay 560 Buenos Aires MASTELLONE HERMANOS: S&P Affirms `raD' Rating on Bonds ------------------------------------------------------ Standard & Poor's International Ratings, Ltd. Sucursal Argentina maintained the `raD' rating given to US$150 million worth of corporate bonds issued by Mastellone Hermanos S.A., the CNV reveals in its Web site. The bonds were classified as `Program' and described as "Programa de Obligaciones Negociables autorizado por AGE de fechas 11 y 23.6.99." Also, S&P assigned an `raD' rating to another US$225 million worth of bonds from the Company. The affected bonds are described as "Obligaciones Negociables, autorizadas por AGE de fecha 28.8.97." with final maturity on April 1, 2004. S&P gives the `raD' rating to financial obligations that are currently in default. The ratings agency said that the same rating may be issued if interest or principal payments are not made on the due even if the applicable grace period has not expired. The ratings given were based on the Company's finances as of June 30, 2004. N. Y M. GARAVAGLIA: Court Grants Reorganization Plea ---------------------------------------------------- N. y M. Garavaglia Hnos S.R.L. successfully petitioned for reorganization after Court No. 17 of La Plata's Civil and Commercial Tribunal issued a resolution opening the company's insolvency proceedings. During insolvency, the company will continue to manage its assets subject to certain conditions imposed by Argentine law and the oversight of a court-appointed trustee. Infobae relates that Mr. German Daniel Mancebo will serve as trustee during the course of the reorganization. He will be accepting creditors' proofs of claims for verification until October 4, 2004. After the verification deadline, the trustee will prepare the individual reports and submit it in court on November 16, 2004. The firm will also present a general report for court review on December 30, 2004. The company will endorse the settlement proposal, drafted from the submitted claims, for approval by the creditors during the informative assembly scheduled on June 15 next year. CONTACT: Mr. German Daniel Mancebo, Trustee Calle 35 Nro. 824 La Plata OVOMAX S.A.: Enters Bankruptcy on Court Orders ---------------------------------------------- Court No. 4 of Buenos Aires' Civil and Commercial Tribunal declared local company Ovomax S.A. bankrupt due to a default in debt payments. The bankruptcy order effectively places the company's assets under the control of court-appointed trustee, Mr. Mario Leizerow. As trustee, Mr. Leizerow is tasked with verifying the authenticity of claims presented by the company's creditors. The verification phase is ongoing until September 13, 2004. Infobae reports that Clerk No. 7 assists the court on this case, which will end with the disposal of the company's assets in favor of its creditors. CONTACT: Mr. Mario Leizerow, Trustee Avda Corrientes 1250 Buenos Aires PC PLUS: Court Orders Liquidation --------------------------------- Court No. 3 of Buenos Aires' Civil and Commercial Tribunal ordered the liquidation of PC Plus S.R.L. after the company defaulted on its obligations, Infobae reveals. The liquidation pronouncement will effectively place the company's affairs as well as its assets under the control of Mr. Carlos Ireneo Lastoria, the court-appointed trustee. Mr. Lastoria will verify creditors' proofs of claims until September 10, 2004. The verified claims will serve as basis for the individual reports to be submitted in court on October 25, 2004. The submission of the general report follows on December 6, 2004. Clerk No. 5 assists the court on this case, which will end with the disposal of the company's assets in favor of its creditors. CONTACT: Mr. Carlos Ireneo Lastoria, Trustee Viamonte 1785 Buenos Aires PUERTO CONCORDIA: Reorganization Concluded ------------------------------------------- The settlement plan proposed by Puerto Concordia 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: Puerto Concordia S.A. Buenos Aires SOLDATI: Agrees to Parque and Tren Split ---------------------------------------- Soldati and its creditors have agreed to separate the group's entertainment park concern, Parque de la Costa from Tren de la Costa, the railway operator. El Cronista reports that upon approval by Argentina's legal authorities, the restructuring deal will see Soldati surrendering its 67% stake in Parque de la Costa to creditors HSBC and Dresdner Bank. The two creditors will take over the control of Parque through a trust fund. However, Soldati will retain 98 percent ownership of Nuevo Tren de la Costa, the sub-holding company created for Tren de la Costa, after the split. TELEFONICA DE ARGENTINA: Strikes Concession Accord With Govt. ------------------------------------------------------------- Argentine fixed-telephony operator Telefonica de Argentina SA has renegotiated its concession contract with the government, says Europe Intelligence Wire. Under the deal, Telefonica will withdraw its complaint to the ICSID, the World Bank's organization dedicated to settling investment disputes, over the telephone tariff freeze that has been operational in Argentina since January 2002. Telefonica de Argentina reported a US$31 million net loss for the six-month period ended June 30, 2004. CONTACT: TELEFONICA DE ARGENTINA Tucuman 1, 18th Floor, 1049 Buenos Aires, Argentina Phone: (212) 688-6840 Home Page: http://www.telefonica.com.ar TEODORO J: Liquidating Assets to Pay Debts ------------------------------------------ Buenos Aires-based Teodoro J Szczipny S.A. will begin liquidation proceedings after Court No. 4 of the city's Civil and Commercial Tribunal pronounced the Company bankrupt. Infobae reports that the ruling places the Company under the supervision of court-appointed trustee, Ms. Mariana A Nadales. The trustee will verify creditors' proofs of claims until September 17, 2004. Clerk No. 7 assists the court on this case, which will end with the disposal company assets in order to repay its debt obligations. CONTACT: Ms. Mariana A Nadales, Trustee Hipolito Yrigoyen 1349 Buenos Aires TERMOGLASS S.R.L.: Court Declares Company Bankrupt -------------------------------------------------- Judge Villanueva of Buenos Aires' Civil and Commercial Tribunal Court No. 23 declared local company Termoglass S.A. "Quiebra", relates La Nacion. The order comes in approval of the bankruptcy petition filed by Compania Industrial Sao Paulo. The Company will undergo the bankruptcy process under the direction of court-appointed trustee Mr. Anibal Osuna. Creditors are required to present their proofs of claims to the trustee for verification before November 1, 2004. Creditors who fail to have their claims authenticated by the said date will be disqualified from the payments that will be made after the Company's assets are liquidated at the end of the bankruptcy process. Dr. Robledo, Clerk No. 46, assists the court on the case. CONTACT: Termoglass S.R.L. Juan Agustin Garcia 5121 Beunos Aires Mr. Anibal Osuna, Trustee Mercedes 3250 Buenos Aires TIPEI S.A.: Enters Bankruptcy on Court Orders --------------------------------------------- Tipei S.A. of Buenos Aires will enter bankruptcy protection after Court No. 3 of the city's Civil and Commercial Tribunal, assisted by Clerk No. 6, ordered the company's liquidation. The bankruptcy order effectively transfers control of the company's assets to the court-appointed trustee who will supervise the liquidation proceedings. Infobae reports that the court selected Mr. Oscar Luis Serventich as trustee. He will be verifying creditors' proofs of claims until the end of the verification phase on September 3, 2004. Argentine bankruptcy law requires the trustee to provide the court with individual reports on the forwarded claims and a general report containing an audit of the company's accounting and business records. The individual reports will be submitted on October 18, 2004 followed by the general report, which is due on November 29, 2004. CONTACT: Mr. Oscar Luis Serventich, Trustee Piedras 1319 Buenos Aires TRANSPORTES GARCIA: Verification Deadline Set --------------------------------------------- The verification of claims for the Transportes Garcia S.R.L. bankruptcy case will end on September 20, 2004 according to local news source Infobae. Creditors with claims against the bankrupt company must present proof of the liabilities to Mr. Gustavo A. Pagliere, the court-appointed trustee, before the deadline. Court No. 4 of Buenos Aires' Civil and Commercial Tribunal handles the case with assistance from Clerk No. 7. The bankruptcy will conclude with the liquidation of the company's assets to pay its creditors. CONTACT: Mr. Gustavo A. Pagliere, Trustee Tucuman 1424 Buenos Aires WELMAR: Credit Validation to End Friday --------------------------------------- The verification of creditors' claims fro the Welmar S.A. liquidation will close on Friday, August 27, 2004. Creditors are required to submit proofs of the Company's indebtedness to court-appointed trustee, Mr. Eduardo Hector Vasini. Buenos Aires Court No. 10 will base the final list of creditors eligible for post-liquidation payments on the verified claims. CONTACT: Mr. Eduardo Hector Vasini, Trustee Avda Rivadavia 4783 Buenos Aires * ARGENTINA: White & Case to Represent Bondholders -------------------------------------------------- White & Case has been retained by the Global Committee of Argentina Bondholders (GCAB) as legal advisor on the restructuring of more than $81 billion in total bond principal claims of the Republic of Argentina. GCAB represents more than 500,000 retail investors and 100 institutional investors who hold approximately 45 percent or $37 billion in total bond principal claims owed by Argentina. GCAB selected White & Case for its proven ability to handle large sovereign restructurings and its global network of lawyers, who possess a deep understanding of local and international restructuring practices in countries where many of the largest number of GCAB members are based. The Firm will work in concert with GCAB's financial advisor Bear, Stearns & Co. Inc. to expeditiously negotiate a consensual and equitable restructuring with Argentina. "Good faith negotiations between sovereign debtors and creditors are the best way to resolve crises like that facing Argentina. Negotiations lead to compromises that allow sovereign debtors justifiable relief without alienating foreign private investment. We're hopeful that Argentina will soon respond to GCAB's open invitation to commence negotiations and that such negotiations will lead to a consensual and mutually beneficial solution," says Wendell Maddrey, head of White & Case's sovereign practice who, together with partner Mark Richards, will lead the team representing GCAB. In addition to Argentina's debt being among the largest ever defaulted by a sovereign, the restructuring poses unique challenges because so many of the holders involved are retail investors. "The nature of debt and the nature of creditors has changed dramatically since the 1980s, when the last big sovereign restructurings were handled. In this changed landscape, GCAB has succeeded in bringing together bondholders of all types throughout the world and is the largest cohesive group of creditors of Argentina," says Richards. "We encourage Argentina to seize this opportunity to reach out to all creditors through negotiations with GCAB." White & Case has more than 30 years experience in sovereign debt restructuring matters, representing both creditors and sovereigns. The Firm has advised on sovereign restructuring matters in a number of Latin American countries, including Costa Rica, Honduras, Panama and Peru. In addition to Maddrey and Richards, the other key members of the White & Case team are partners John Riggs, Martin Hughes and Howard Kleinman. About White & Case White & Case LLP is a leading global law firm with nearly 1800 lawyers practicing in 38 offices in 25 countries. Global Counsel consistently ranks White & Case among the top global law firms. CONTACT: Ms. Sandi Sonnenfeld Media Relations Manager White & Case LLP 1 212 819 8299 E-Mail: ssonnenfeld@whitecase.com =========== B E L I Z E =========== * BELIZE: S&P Lowers Long-Term Ratings; Outlook Negative -------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term foreign currency sovereign credit rating on Belize to 'B' from 'B+'. Standard & Poor's also lowered its long-term local currency sovereign credit rating on Belize to 'B+' from 'BB-'. The outlook on the ratings remains negative. At the same time, Standard & Poor's lowered its short-term foreign currency sovereign credit rating on Belize to 'C' from 'B' and affirmed its 'B' short-term local currency sovereign credit rating. According to Standard & Poor's credit analyst Olga Kalinina, the downgrades and negative outlook signal both the continuously worsening external liquidity situation and the increasing challenge to institute budgeted fiscal tightening. "The liquidity situation remains precarious; the government has high financing needs and has had no success, to date, in securing needed funds (as evidenced by the ongoing delay in its placement of an international bond)," said Mrs. Kalinina. "Moreover, recent political friction and the disclosure of an alleged misuse of social security funds, which highlight problems with transparency in public finances, have further damaged investor confidence and led to a further deferral of the debt sale," she added. Standard & Poor's estimates the country's financing needs (current account deficit + principal amortization + short-term debt) at over US$200 million between August 2004 and the end of the year. Specifically, estimated financing requirements for the remainder of the year include coverage of the current account deficit (US$60 million); amortization payments on government debt (US$36 million) and on Development Finance Corporation's (DFC) debt and mortgage-backed securities transactions (US$10 million); and private sector financing needs (US$100 million). The country's total financing requirement compares poorly with foreign exchange reserves of US$72 million at end-July 2004, underscoring a strained liquidity situation. Rising oil prices and the risk of imminent sugar price cuts (as a result of the European Union's recently announced proposal to eliminate subsidies to African-Caribbean-Pacific countries) will put further strain on the current account of the balance of payments, which was already a high 19% of GDP at year-end 2003. Mrs. Kalinina explained that, while fiscal first-quarter results showed improvement over those of the previous fiscal year, ongoing problems in DFC's loan portfolio and the slower-than- expected pace of real-estate divestments may lead to further onlending from the government, putting a strain on government finances. In addition, the ongoing investigations into the state of social security's finances and a heated political situation constrain the government's ability to maintain a strong focus on the planned fiscal consolidation. "Belize's ratings could fall further if the country's external liquidity position becomes more stretched, or if the government falters in effecting its fiscal tightening," Mrs. Kalinina noted. "Firm government resolve on the fiscal front, with an aim to stabilize and reduce the looming public debt stock (estimated at 95% of GDP at end 2003), and adept debt management on the external side will be required to avert a liquidity crisis and maintain the ratings at their current levels," she concluded. ANALYSTS: Olga Kalinina, CFA, New York (1) 212-438-7350 Helena Hessel, New York (1) 212-438-7349 ============= B E R M U D A ============= FOSTER WHEELER: Stresses Importance of Exchange Offer ----------------------------------------------------- Foster Wheeler Ltd. (OTCBB: FWLRF) announced Monday that it is currently well below the 75% minimum participation threshold on the company's 9.00% Trust Preferred Securities as it relates to the exchange offer that the company launched on June 11, 2004. "Once again, we want to emphasize the absolute importance of achieving the debt reduction that results from meeting or exceeding the minimum participation levels," said Raymond J. Milchovich, chairman, president and chief executive officer. "In our business, financial strength is an important factor when potential clients make their hiring decisions. Unfortunately for Foster Wheeler, we have over $1 billion of debt - which provides our competition with a distinct advantage. The exchange offer would allow us to reduce our debt levels - which I believe is a key to Foster Wheeler's ongoing success." If Foster Wheeler is unable to complete this exchange offer or otherwise reduce its debt levels, the company would continue to be faced with $630 million of obligations coming due prior to the end of the second quarter of 2007, $315 million of which is debt maturing in 2005. The expiration of the exchange offer remains Monday, August 30, 2004. To summarize, for each trust preferred security (liquidation amount $25) that is held, a holder that elects to tender into the exchange offer would receive the following: 1) Common and Preferred Shares - 0.76 common shares of Foster Wheeler Ltd. - 0.0123 preferred shares of Foster Wheeler Ltd. Each preferred share offered would be convertible at the holder's option into 1,300 common shares of Foster Wheeler Ltd. if and when the company's shareholders vote to increase the number of authorized shares at a shareholder meeting to be held later in 2004. The company expects both the common and preferred shares to be traded Over-the-Counter after they have been issued. - On an as-converted basis, then, holders would receive 16.75 common shares for each trust preferred security. AND 2) A warrant - 1 warrant, exercisable into a to-be-determined number of preferred or common shares. This number of shares is dependent upon the ultimate participation level in the exchange offer of the trust preferred securities. - At the minimum participation level of 75%, a holder would receive 1 warrant exercisable into approximately 30.5 common shares at a strike price of approximately 47 cents per common share. Additional points of clarification include the following: - The debentures issued by Foster Wheeler LLC that underlie the trust preferred securities are junior subordinated debentures. The trust preferred securities are junior to all other debt securities of Foster Wheeler and, as such, are junior to approximately $850 million of existing debt. - Under the terms of the documents that govern the 9.00% Trust Preferred Securities, the company began deferring distributions to holders of these securities in January 2002. The documents allow for up to a 60 month deferral period. Foster Wheeler's current senior credit agreement prohibits it from resuming distributions while this credit agreement is in place. The company expects to defer these distributions until January 2007 which would be the full 60 months allowed. Once the accrued distributions are paid, the company can then elect to defer distributions for up to another 60 months. As previously announced, Foster Wheeler will pay a soliciting brokers' fee to registered broker/dealers for soliciting qualifying tenders of trust preferred securities pursuant to this exchange offer. This fee will be equal to 50 cents per trust preferred security (liquidation amount $25) which the registered broker/dealers tender on behalf of their customers and which Foster Wheeler accepts for exchange. Individuals holding their securities through brokers are urged to contact their brokers to receive a copy of the prospectus and to tender their securities. A copy of the prospectus relating to these securities and other related documents may be obtained from the information agent. The information agent for this exchange offer and consent solicitation is : Georgeson Shareholder Communications Inc. 17 State Street, 10th Floor New York, New York 10014. Georgeson's telephone number for bankers and brokers is: 212- 440-9800 All other security holders is: 800-891-3214. The dealer manager for the exchange offer and consent solicitation is: Rothschild Inc. 1251 Avenue of the Americas, 51st Floor New York, New York 10020 Phone: 212-403-3784 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, or from the information agent as noted above. The foregoing reference to the 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. 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 Contact: Maureen Bingert, 908-730-4444 or Investor Contact: John Doyle, 908-730-4270 or Other Inquiries: 908-730-4000 Web Site: www.fwc.com LINES OVERSEAS: Managing Director Ordered to Appear Before Court ---------------------------------------------------------------- The Securities and Exchange Commission announced that, on August 17, 2004, Magistrate Judge Alan Kay of the U.S. District Court for the District of Columbia ordered Lines Overseas Management, Ltd. ("LOM"), a Bermuda-based holding company with broker-dealer subsidiaries, and its Managing Director, Scott Lines, to demonstrate why they should not be ordered to comply with four subpoenas lawfully issued and validly served by the Commission in connection with two separate investigations. LOM and Lines, a Bermuda resident, refused to appear for testimony and produce documents as directed by the four subpoenas. On June 10, 2004, the Commission filed the above-mentioned subpoena enforcement action seeking a court order requiring LOM and Lines to comply with the subpoenas. The Commission issued the subpoenas in connection with two separate investigations into possible fraud, market manipulation, and reporting violations in the securities of three U.S. public companies: Hienergy Technologies, Inc. ("Hienergy"), Sedona Software Solutions, Inc. ("Sedona"), and SHEP Technologies, Inc. ("SHEP"). The Commission's investigations have revealed that certain individuals engaged in extensive trading in the securities of Hienergy, Sedona, and SHEP through accounts at LOM in Bermuda, the Bahamas, and the Cayman Islands. The Commission has alleged that the subpoenaed documents and testimony are relevant to matters under investigation and are within the scope of the Commission's investigative authority. The Commission has requested that the Court order LOM and Lines to comply fully with the terms of the subpoenas by producing documents and appearing for testimony. LORAL SPACE: Telstar 18 Completes In-Orbit Testing -------------------------------------------------- Loral Space & Communications announced Monday that Telstar 18, a powerful and flexible satellite designed to provide communication services across Asia, has completed its in-orbit testing and is now fully operational. "With Telstar 18 joining Telstar 10 over Asia, Loral now operates two of the most powerful and strategically placed satellites in that region," said Patrick Brant, president, Loral Skynet. "Telstar 18 covers a large area that stretches from Central Asia, through the Indian sub-continent, China, Korea, Japan, South East Asia, Australia and Hawaii. It offers our customers a strong footprint for intra-regional applications, as well as the ability to directly connect with the US." Built by Space Systems/Loral (SS/L) and operated by Loral Skynet, Telstar 18 was launched June 28, 2004 aboard a Sea Launch Zenit-3SL rocket. During the launch, the rocket's upper stage shut down early and placed the satellite in a lower than expected orbit. Engineers from SS/L, however, were able to raise the satellite to its proper orbital position at 138 degrees East longitude. The satellite still has sufficient on-board fuel to exceed its specified 13-year life. Telstar 18's users include well-known regional video and data providers, such as Smart Digital Communications Bhd, of Kuala Lumpur, Malaysia, and PSVN, Inc., which is based at the Hawaii Pacific Teleport. Loral's other satellite over Asia, Telstar 10/APSTAR-IIR, hosts one of the largest video communities in Asia at 76.5 degrees East longitude. In addition to transmitting innovative new applications, cable programming and direct-to-home broadcasting services, Telstar 18 is scheduled to begin hosting Skynet's SkyReach(SM) two-way IP- based networking solution in 2005. SkyReach is already available and in use by customers throughout the Americas, allowing organizations to create an instant infrastructure using a VSAT network, connecting offices between cities or around the globe. Telstar 18 carries a total of 54 active transponders, of which sixteen are high-power Ku-band transponders and thirty-eight are C-band transponders. In consideration for funding a portion of the satellite project's cost, APT Satellite Company Limited, Hong Kong, will initially use 68.5 percent of Telstar 18's transponder capacity for APSTAR-V services. The number of transponders used by APT will be reduced over time, ultimately to 54 percent of the satellite's capacity. For more information on APT, visit www.apstar.com. Telstar 18 is a version of SS/L's space-proven 1300 satellite platform, which has an excellent record of reliable operation. The geostationary 1300 has a specified service life of 13 years and maintains station-keeping and orbital stability by using bipropellant propulsion and momentum-bias systems. In all, SS/L satellites have amassed more than 1,100 years of on-orbit service. A pioneer in the satellite industry, Loral Skynet continues to deliver the superior service quality and range of satellite solutions that have made it an industry leader for more than 40 years. Through the broad coverage of the Telstar satellite fleet in combination with its hybrid VSAT/fiber global network infrastructure, Skynet is a source for all broadcast, data network, Internet access, IP and systems integration needs. Headquartered in Bedminster, New Jersey, Loral Skynet is dedicated to providing secure, high-quality connectivity and communications. For more information, visit the Loral Skynet web site at www.loralskynet.com. Space Systems/Loral is a premier designer, manufacturer, and integrator of powerful satellites and satellite systems. SS/L also provides a range of related services that include mission control operations and procurement of launch services. Based in Palo Alto, Calif., the company has an international base of commercial and government customers whose applications include broadband digital communications, direct-to-home broadcast, defense communications, environmental monitoring, and air traffic control. SS/L is ISO 9001:2000 certified. For more information, visit the Space Systems/Loral web site at www.ssloral.com. Loral Skynet and Space Systems/Loral are both subsidiaries of Loral Space & Communications (OTCBB: LRLSQ). CONTACT: Mr. John McCarthy Loral Space & Communications 212/338-5345 =========== B R A Z I L =========== BRASKEM: Develops New Technology for Polypropylene Use ------------------------------------------------------ Braskem is launching a brand new solution in polypropylene in the regional petrochemical market. The company identified a market opportunity for replacing polystyrene by polypropylene in disposable glasses production. In partnership with one of its customers, Zanatta industry, the company developed an innovative technology of application based on thermoshaping. This development, in which Braskem is investing about R$ 30 million, includes more crystallyne and rigid polypropylene, a technological system and new machinery for production with polypropylene. Its an integrated solution that aims at offering more competitiveness for disposable glasses producers and it has attracted the most important leaders of this segment in Brazil. Three of them have already tested the process of replacing polystyrene by polypropylene, including Zanatta that has already started to produce with new technology in its Unit in Crici£ma (SC). The use of Polypropylene helps the producers to follow the specifications for the product - specifications that establish the minimum quantity of resin by glass with a better result and higher resistance. "It is another opportunity taken by Braskem to expand its performance in the market. An expansion based on technological development and strategic innovation", states the vice president, responsible for Braskem Polyolefin Unit, Luiz de Mendon‡a. This solution offers Braskem exclusivity in the propylene supply for a period pre-established in contract. Nowadays, the resin demand for producing disposable glasses is estimated in around 60 thousand tons/year. Braskem estimates that half of this potential will be supplied by Polypropylene until June next year, when the 28 machines expected for the initial phase will be in use. The equipment fabrication is under NTS responsibility, a company that produces with exclusivity for Braskem. The price of this machinery corresponds to one third of the cost to import a similar equipment from Europe or The USA, around US$ 1,3 million. The process and the machinery are patented. This integrated solution launching demanded two years of work in a partnership that involved Braskem Innovation and Technology Center, located in Triunfo (RS), and Zanatta. The support of the Innovation and Technology Center offered to Braskem customers has guaranteed the implementation of a wide program to replace traditional raw materials by thermoplastic resins. The polypropylene market was recently enhanced by the amianthus replacement in tiles and water tanks of fibercement and by glass in glasses, among other examples. This process has contributed for an increase in polypropylene demand in the country, three times higher than for other resins. Braskem, a world-class Brazilian petrochemical, is a leader in thermo-plastics in Latin America and it figures among the five biggest Brazilian private industrial companies. Braskem's 13 industrial plants are located all over the country and they produce 5 million tons of petrochemical products annually. CONTACT: Ms. Claudia Bredarioli Communication Phone: 11 3443-9099 claudia@prumocom.com.br ELETROPAULO METROPOLITANA: May Bid in November Power Auction ------------------------------------------------------------ Brazilian power distributor Eletropaulo is analyzing the possibility of bidding in the auction to buy power from already- built power plants that the government is planning to hold in November, Business News Americas reports, citing company vice president Cyro Boccuzzi. If the company decides to bid, it will be a lightweight bidder because Eletropaulo has several contracts with suppliers, Bocuzzi said without detailing the company's future power needs. Business News Americas reports that the government wants to auction up to 55,000MW in installed capacity that will be idle in coming years, with the aim of allowing generators to rebuild their portfolios to compensate for the laws that are ending initial contracts at a rate of 25% a year. The new power sector model determines that all power be auctioned at the power trading chamber. Distributors will have to buy power in one-, three- or five-year contracts. Brazil's 64 distributors have until September to hand in their projected long-term demand to the government. The mines and energy ministry is still detailing the auction and the maximum price. "Eletropaulo is going through this transition quite well - we have to improve our projections but we are quite comfortable," Boccuzzi said. Controlled by US power company AES Corp., Eletropaulo sells power to 5 million billed clients in the city of Sao Paulo and 23 surrounding municipalities in the metropolitan area. ========= C H I L E ========= ENERSIS: Exchange Offer Expires September 3 ------------------------------------------- ENERSIS S.A. (NYSE: ENI), announced on August 6, 2004 the commencement of its offer to exchange (the "Exchange Offer") up to $350,000,000 of its new 7.375% notes due 2014 (the "New Notes"), registered under the Securities Act of 1933, as amended (the "Securities Act"), for its outstanding, unregistered 7.375% notes due 2014 (the "Old Notes"). The offer is valid for 20 business days and is set to expire at midnight (New York time) on September 3, 2004, unless the Company decides to extend it. The terms of the New Notes are identical in all material respects to the terms of the Old Notes, except that the New Notes have been registered under the Securities Act, and the transfer restrictions and registration rights relating to the Old Notes do not apply to the New Notes. Upon settlement of the Exchange Offer, which is expected to occur on or about September 10, 2004, the tendering holders of the Company's Old Notes Due 2014 will receive a like principal amount of its New Notes. The Company will not receive any proceeds from the issuance of the New Notes in the Exchange Offer. A copy of the prospectus may be obtained by contacting the information agent: D.F. King & Co., Inc. 48 Wall Street 22nd Floor New York, NY 10005 Bankers and brokers call collect: (212) 269-5550 All others call toll free: (800) 714-3313. Deutsche Bank Trust Company Americas is serving as the Exchange Agent in connection with the Exchange Offer. INVESTORS ARE URGED TO READ, BEFORE MAKING ANY DECISION, THE REGISTRATION STATEMENT, PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ("SEC") BY ENERSIS S.A. IN RESPECT OF THE EXCHANGE OFFER BECAUSE THEY CONTAIN IMPORTANT INFORMATION. INVESTORS CAN OBTAIN THESE DOCUMENTS FREE OF CHARGE AT THE SEC'S WEBSITE (http://www.sec.gov)OR BY DIRECTING A REQUEST TO D.F. KING & CO., INC. AT THE ADDRESS AND PHONE NUMBERS PROVIDED ABOVE. THIS PRESS RELEASE IS NEITHER AN OFFER TO PURCHASE NOR A SOLICITATION OF AN OFFER TO SELL SECURITIES. THE EXCHANGE OFFER IS MADE SOLELY BY THE PROSPECTUS AND THE RELATED LETTER OF TRANSMITTAL AND IS NOT BEING MADE TO, NOR WILL TENDERS BE ACCEPTED FROM OR ON BEHALF OF, HOLDERS OF NOTES IN ANY JURISDICTION IN WHICH THE MAKING OF THE EXCHANGE OFFER OR ACCEPTANCE THEREOF WOULD NOT BE IN COMPLIANCE WITH THE LAWS OF SUCH JURISDICTION. CONTACTS: Ms. Susana Rey Head of Investor Relations Enersis S.A. Santa Rosa 76 Santiago, CHILE srm@e.enersis.cl Phone: 56 (2) 353 4554 Web Site: www.enersis.cl =============== C O L O M B I A =============== PAZ DEL RIO: To Name Company to Carry Out Rationalization Plan -------------------------------------------------------------- Colombian iron and steel company Acerias Paz del Rio will identify Thursday the firm to carry out its US$15-million industrial rationalization plan, says Business News Americas. The awarding of the contract to supply a continuous casting machine, a furnace and other equipment has been held off for months now, and according to APDR stockholder Myriam Cuadrado, the delay "has caused a loss of confidence in the project and in company administration." The delay in making a decision shows "a lack of vision on behalf of Paz del Rio's president, who has managed the company well, to obtain even better operating margins," Cuadrado said. Meanwhile, sector analyst Juan Pablo Gomez told Business News Americas that once Paz del Rio makes the announcement, "confidence in the company will recover." ============= J A M A I C A ============= KAISER ALUMINUM: Court Extends Exclusivity Agreement ---------------------------------------------------- Mr. Jack A. Hockema, President and Chief Executive Officer of Kaiser Aluminum issued the following update, dated August 23, 2004, regarding the Company's debt restructuring: While the company originally proposed an extension of exclusivity through October 31, 2004, after receiving feedback from various creditor constituencies, we reached a mutual agreement to extend exclusivity for all the Kaiser debtor entities to September 27, 2004. The court approved this exclusivity agreement in Monday's hearing. Discussions continue with the various creditor committees in respect of, among other things, the Intercompany Settlement Agreement, the possibility of accelerated emergence for certain of the alumina subsidiaries, and the company's first half 2005 revised timeline for emergence for certain or all of the other entities. See the company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2004 for additional discussion of these matters. Liquidity: Liquidity continues to be adequate and to fluctuate within the $150-$180 million range experienced in previous months CONTACT: Kaiser Aluminum Corp. 5847 San Felipe Suite 2500 P.O. Box 572887 Houston TX 77257-2887 USA Phone: 713-267-3777 Web Site: http://www.kaiseral.com *********** 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 * * *