/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040913.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 Monday, September 13, 2004, Vol. 5, Issue 181 Headlines A R G E N T I N A CENTRAL COSTANERA: Finalizes Debt Deal With Creditor Banks COPIAS DEL ALTO: Reorganization General Report Due Today CORES Y COMPANA: Claims Validation Closes Tomorrow GRAVIS S.A.: Bankruptcy Initiated by Court Order MARCELO, JULIAN: Begins Liquidation Proceedings MOLINOS RIO: Launches Joint Venture To Market Cooking Oil QUIMICA ESTRELLA: Debt Offer Gets Unanimous Backing RAF KAZ: Trustee Scheduled to Submit General Report TELECOM ARGENTINA: Local Fitch Ups Rating on Shares to "3" TELEFONICA DE ARGENTINA: To Use DSLAM IP Solution From Lucent TRANSPORTES CAPA: Court Anticipates Individual Report Today YACYRETA: Argentina, Paraguay Struggle to Secure IDB Payment B R A Z I L BOMBRIL: Court Ruling Puts Majority Stake on the Block BRASKEM: Issues Market Notice for New Share Sale CELG: 25.91% Tariff Hike Officially Authorized COSIPA: Foreign Currency Rating Raised to `B1' From `B2' CSN: Proposes Offering of Guaranteed Notes Due 2015 EMBRATEL: Moody's Ups FC Ratings Following Brazil Upgrade GERDAU: Purchasing North Star Steel Assets IPIRANGA: Moody's Raises FC Rating to B1 from B2 MARLIM: Moody's Improves FC Rating to B1 From B2 TELESP: Moody's Ups Foreign Currency Issuer Rating to B1 * BRAZIL: Fitch Assigns Global Bonds Much Anticipated 'B+' * BRAZIL: Moody's Raises Ratings on Continued Export Expansion C H I L E ENAMI: New Bill Could Ease Financial Strain C O L O M B I A AVIANCA: Enters Code-Sharing Agreement With Spain's Iberia CODAD: S&P Affirms Rating; Outlook Still Stable D O M I N I C A N R E P U B L I C BANCO CENTRAL: Fails to Pay Interest, Notice Issued M E X I C O AEROMEXICO: Orders 10 More Planes From Boeing LUZ Y FUERZA: Moves to Collect Payments From Various Firms GRUPO MEXICO: BBVA Starts Coverage With "Outperform" Rating MAXCOM TELECOMUNICACIONES: Selects Lucent to Expand Network U R U G U A Y UTE: Central Bank Refinances Debt V E N E Z U E L A PDVSA: Renews JBIC Financing Accord - - - - - - - - - - - ================= A R G E N T I N A ================= CENTRAL COSTANERA: Finalizes Debt Deal With Creditor Banks ---------------------------------------------------------- Central Costanera (CECO2.BA), Argentina's largest thermoelectric generator, informed the local stock exchange Thursday that it has locked a final agreement with a group of banks to restructure a US$95-million syndicated loan, relates Dow Jones. The creditor banks involved in the restructuring agreement are Banco Bilbao Vizcaya Argentaria (BBV), BankBoston, Bank of America (BAC), HSBC (HBC), Banco Latinoamericano de Exportaciones, ABN AMRO Bank (ABN) and J.P. Morgan Chase (JPM). The restructured amount will be US$47.7 million and maturities will be extended, with the company paying out in quarterly installments between September 2004 and June 2006. The loan dates back to June 2000 and was originally denominated in yen. In March 2003, two months before it was scheduled to come due, Central Costanera converted the debt to U.S. dollars and stretched the maturity to December 2004. The company also had asked its creditors to accept a Siemens AG (SI) power plant as a guarantee for the refinanced loan. Central Costanera, which is 63% owned by Spanish utility Endesa, reported 1H04 profits of ARS32.4 million, higher than the ARS18.2 million profits in the same year-ago period, due to increased energy consumption, fueled by Argentina's economic recovery. COPIAS DEL ALTO: Reorganization General Report Due Today -------------------------------------------------------- Mr. Luis Ricardo Bonifatti, the trustee overseeing the Copias del Alto bankruptcy proceedings, is scheduled to submit a general report of the case today. The general report provides the court with an audit of the Company's accounting and business records. It also details relevant events during the liquidation process. Court No. 26 of Buenos Aires' civil and commercial tribunal handles this case with the assistance of Clerk No. 52. CONTACT: Copias del Alto S.R.L. Av Coronel Diaz 2092 Buenos Aires Mr. Luis Ricardo Bonifatti, Trustee Av Corrientes 123 Buenos Aires CORES Y COMPANA: Claims Validation Closes Tomorrow -------------------------------------------------- Mr. Pedro Bonis, serving as trustee for the Cores y Compana liquidation, will close the verification of creditors' claims tomorrow, September 14, 2004. The verified claims will be used as basis for the individual reports to be presented for court approval on October 27, 2004. Court No. 11 of Lomas de Zamora's civil and commercial tribunal handles this case. CONTACT: Mr. Pedro Bonis, Trustee Del Valle Iberlucea 3027 Lanus GRAVIS S.A.: Bankruptcy Initiated by Court Order ------------------------------------------------ Court No. 22 of Buenos Aires' civil and commercial tribunal declared local company Gravis S.A. bankrupt after the company defaulted on its debt payments. The order effectively places the company's affairs as well as its assets under the control of court-appointed trustee, Mr. Julio Jorge Surenian. As trustee, Mr. Surenian is tasked with verifying the authenticity of claims presented by the company's creditors. The verification phase is ongoing until October 19, 2004. Following claims verification, the trustee will submit the individual reports based on the forwarded claims for final approval by the court on November 30, 2004. A general report will also be submitted on February 14, 2005. Infobae reports that Clerk No. 43 assists the court on this case, which will end with the disposal of the company's assets in favor of its creditors. CONTACT: Mr. Julio Jorge Surenian, Trustee Tucuman 1657 Buenos Aires MARCELO, JULIAN: Begins Liquidation Proceedings ----------------------------------------------- Marcelo, Julian y Martin Llinas S.H., a company operating in Necochea, will begin liquidating its assets after Court No. 2 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. Maria del Carmen Casassus. The trustee will review claims forwarded by the company's creditors until October 11, 2004. After claims verification, the trustee will submit individual reports for court approval on November 29, 2004. The general report submission follows on December 22, 2004. CONTACT: Marcelo, Julian y Martin Llinas S.H. Calle 65 Nro. 2143 Necochea Ms. Maria del Carmen Casassus, Trustee Calle 60 Nro. 2633 Necochea MOLINOS RIO: Launches Joint Venture To Market Cooking Oil --------------------------------------------------------- Argentine branded food manufacturer Molinos Rio de la Plata (MOLI.BA) and Chilean food company Corpora Tresmontes have formed a joint venture called Novaceites SA, says Dow Jones Newswires. The JV, in which each company will hold a 50% stake, will market cooking oil in the Chilean market. Novaceites will use Corpora Tresmontes' local sales and distribution network and will also acquire the Miraflores vegetable oil brand from Corpora Tresmontes. Molinos said the new company has also been granted licenses to market brands currently owned by the two partners. In the meantime, Molinos is analyzing whether to buy local condiment and vinegar maker Poo from investment fund Sabores Argentinos. Molinos has been tagged as the main candidate to acquire the investment fund's 66.7% stake in Poo for about US$2 million. Molinos is particularly interested in Poo's Omega and Huser vinegar brands, with which it would be able to strengthen its position in the domestic vinegar segment. Poo has about 38% of the vinegar market, whereas Molinos' Cocinero brand has a 10% share. Like Molinos, Poo has also suffered from financial difficulties. But Poo has emerged from bankruptcy protection and managed to obtain a 25% reduction in its debt of more than ARS11 million after carrying out successful renegotiations with its main creditors Banco Rio, Societe Generale, Banco Frances and Banco Sudameris. The approved proposal involved a 2-year grace period and the payment of 75% of the debt over the period of 10 years. Poo has also undertaken a deep restructuring process aimed at reducing fixed costs. It involved a number of measures, including the reduction of its workforce, the closure of its Caballito plant and the concentration of its spice and vinegar divisions at the Mataderos plant. Molinos posted losses of ARS11.7 million in the first half of the year. It is seeking to return to black by the end of year. CONTACT INFO: Molinos Rio de la Plata S.A. Uruguay 4075 CP (B1644HKG) Victoria Pcia. de Buenos Aires Argentina Telephone: 54-11-4340-1100 Contacts: Maria Soledad Kern Investors Service Tel: (0054)-(11)-4340-1592 E-mail: maria.soledad.kern@molinos.com.ar QUIMICA ESTRELLA: Debt Offer Gets Unanimous Backing --------------------------------------------------- Argentine food and chemical company Quimica Estrella announced it has fulfilled all the previous conditions established in the out-of-court settlement subscribed with its creditors and reached agreement with 100% of them. In this context, their private debt restructuring accord started to rule on August 30 without requiring court approval. RAF KAZ: Trustee Scheduled to Submit General Report --------------------------------------------------- Court No. 20 of Buenos Aires' civil and commercial tribunal expects to receive a general report on the Raf Kaz S.R.L. bankruptcy today. Court-appointed trustee, Mr. Oscar Chapiro will prepare the report from the Company's accounting and business records. The Company's assets will be liquidated at the end of the bankruptcy process to repay its creditors. Clerk No. 40 assists the court on the case. CONTACT: Mr. Oscar Chapiro, Trustee Avenida Raul Scalabrini Ortiz 151 Buenos Aires TELECOM ARGENTINA: Local Fitch Ups Rating on Shares to "3" ---------------------------------------------------------- Fitch Argentina on Wednesday increased its rating on the shares of fixed-line carrier Telecom Argentina (TEO) from "3" to "2", reports Dow Jones Newswires. The move, which could pave the way for the country's pension funds to increase their holdings in Telecom Argentina, came after the company secured a 94.4% approval rate for its US$2.63 billion debt restructuring in late August. Under Argentine bankruptcy law, the company only needed two- thirds agreement to move ahead with its out-of-court restructuring deal, known in Spanish as an APE. Telecom Argentina now needs final legal approval, which will make the repayment terms binding on all creditors. Company officials have said they plan to make the debt swap in the first quarter of 2005, thus completing the largest debt restructuring in the Argentine corporate sector. Argentine regulations limit pension funds, known in Spanish as AFJPs, to holding shares of only companies that have a "1" or "2" rating. As of the end of July, the last month for which data is available from the pension fund regulator, AFJPs held about ARS608 million ($1=ARS3.005) in Telecom Argentina shares out of total equity holdings of ARS8.9 billion. In a research note published Thursday, local consultancy Argentine Research said it estimates AFJPs could buy about US$210 million more of Telecom Argentina shares. "We consider that the rating improvement recognizes and ratifies the important changes solidified during the most recent quarters in the fundamentals of the local telephone operator," said analyst Rafael Ber, who kept his "buy" rating on the shares. CONTACT: TELECOM ARGENTINA S.A. Alicia Moreau de Justo 50, 10th Floor Capital Federal (1107) Republica Argentina Phone: +54 11 4968 4000 Home Page: http://www.telecom.com.ar Contacts: Alberto J. Ricciardi, Chief Financial Officer Elvira Lazzati, Finance Director Pedro Insussarry, Investor Relations Manager Phone: (5411) 4968-3626/3627 Fax: (5411) 4313-5842/3109 E-mail: inversores@intersrv.telecom.com.ar TELEFONICA DE ARGENTINA: To Use DSLAM IP Solution From Lucent ------------------------------------------------------------- Lucent Technologies (NYSE: LU) announced Thursday that it has completed the installation of 80,000 new ADSL (Asynchronous Digital Subscriber Line) access ports in the Telefonica de Argentina network as part of the agreement between the two companies reached last March. More than 60,000 of the new access ports deployed use DSLAM IP technology. As the sole supplier to date of DSLAM IP technology for Telefonica de Argentina, Lucent is supporting the operator in its plans to expand coverage and speed up the introduction of broadband services in the country. The new ADSL Stinger(R) FS+ ports will allow Telefonica de Argentina to meet the growing demand for broadband services from business and residential customers, who will now have access to high-speed Internet access, as well as new services over DSL in the future. With the implementation of the new ports, Lucent has now installed more than 100,000 ADSL ports in the Telefonica de Argentina network. "The use of Lucent's advanced solution for broadband access represents substantial cost savings, both in equipment and in the operation of the network, while we prepare to launch innovative services for the future," said Rofoldo E. Holzer, Network Director for Telefonica de Argentina. As part of the agreement, Lucent also supplied Telefonica de Argentina with its Stinger MRT (Micro Remote Terminal) access concentrator. Lucent Worldwide Services provided engineering, installation and technical support services for the rapid execution of this project. Lucent also installed its Stinger(R) FS+ Digital Subscriber Line Access Multiplexer (DSLAM) that offers innovative functionalities such as Virtual LANs, Gigabit Ethernet interface, IP Multicasting, and service aggregation. "We are very excited to continue working with Telefonica in their broadband network expansion and the deployment of advanced services for their clients," said Javier Rodriguez Falcon, vice president for the Southern Cone for Lucent Technologies. "This project strengthens our commitment with Telefonica and consolidates Lucent's leadership in the ADSL market in Latin America." Lucent Technologies de Argentina, a subsidiary of Lucent Technologies, provided the products and services outlined in this announcement. Lucent has already installed more than 28,000 Stinger(R) access concentrators (around 6 million ports) in more than 25 countries. About Stinger(R) DSL Access Concentrator Stinger(R) DSL Access Concentrator is a DSLAM - Digital Subscriber Line Access Multiplexer - featuring 14 slots with ports that can serve up to 72 subscribers, providing a total of up to 1008 ADSL access ports per piece of equipment installed in the operator network. This reduces costs and optimizes network infrastructure implementation. The Stinger(R) DSL Access Concentrator supports IP and ATM technologies simultaneously, which means Telefonica will have greater flexibility and security in designing its network to supply new services over DSL. About Lucent Technologies Lucent Technologies designs and delivers the systems, services and software that drive next-generation communications networks. Backed by Bell Labs research and development, Lucent uses its strengths in mobility, optical, software, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for its customers, while enabling them to quickly deploy and better manage their networks. Lucent's customer base includes communications service providers, governments and enterprises worldwide. Web site: http://www.lucent.com TRANSPORTES CAPA: Court Anticipates Individual Report Today ----------------------------------------------------------- Individual reports from the Transportes Capa S.R.L. bankruptcy case are due for court submission today. Trustee Patricia Monica Narduzzi based these reports from claims submitted by creditors during the verification period. Court No. 21 of Buenos Aires' civil and commercial tribunal will use the reports to finalize the list of creditors eligible for post-liquidation payments. CONTACT: Ms. Patricia Monica Narduzzi, Trustee Lavalle 1675 Buenos Aires YACYRETA: Argentina, Paraguay Struggle to Secure IDB Payment ------------------------------------------------------------ Argentine Planning Minister Julio de Vido and his Paraguayan counterpart, Jose Alderete, stepped up efforts to secure a US$90 million payment from the Inter-American Development Bank for the troubled bi-national Yacyreta hydropower dam. Citing Argentine business daily El Cronista, Dow Jones reports that de Vido and Alderete traveled to Washington on Thursday to persuade the IDB to release US$90 million of a US$130 million credit. The money would be used to complete works needed to lift water levels at the Yacyreta dam to 78 meters from the current 76 meters by the end of 2005, thereby increasing power output at the dam. In order to persuade the IDB to release the money, the governments had promised to commit US$564 million to finish the Yacyreta project by 2007 and said they will write this into the 2005 budget, due to be released by Sept. 15. The eventual goal is to lift water levels to 83 meters. The governments also prepared a detailed report laying out the steps it will take to wrap up the project. The Yacyreta expansion has been dogged with so many problems. One is disagreement between the neighbors, with Paraguay reportedly insisting on a slower pace of work to ensure that those who live near the dam are not adversely affected by the rising water levels. Higher water levels mean the flooding of surrounding land and most of the affected property is Paraguayan. These disputes, which have included protests by nearby residents, have already forced Argentina to give up its hope of increasing water levels by one meter by the end of this month. More significant: the Yacyreta project has become the target of a U.S. Senate Foreign Relations Committee investigation - part of a wider probe into World Bank and IDB projects. That may make the IDB more reluctant to release the disbursement. =========== B R A Z I L =========== BOMBRIL: Court Ruling Puts Majority Stake on the Block ------------------------------------------------------ A Brazilian court has ordered the auction of a majority stake in Bombril (BOBR4.SA), a detergents and household goods company previously held by insolvent Italian food group Cirio, Reuters reports, citing a legal source. The ruling, which will see the sale of 100% of ordinary voting shares, or 38% of Bombril's share capital, grants a petition filed by Bombril's former owner Ronaldo Sampaio Ferreira. Banco Nacional de Desenvolvimento Economico e Social (BNDES), a minority shareholder in Bombril, has been asked to value the stake. Bombril was placed under the control of a court-appointed administrator in July 2003, while Sampaio Ferreira fought for control of the firm with Cirio. Cirio's government-appointed Italian administrators have scheduled a trip to Brazil for mid-September to iron out disagreements with Cirio minority shareholders and former Bombril stakeholders. Cirio defaulted on EUR1.1 billion (US$1.346 billion) bonds in late 2002 and eventually collapsed at the hands of its majority owner and chairman, Sergio Cragnotti. Its downfall was thought to have been caused in part by the ambiguities surrounding Bombril's financial operations. BRASKEM: Issues Market Notice for New Share Sale ------------------------------------------------ Pursuant to Article 53 of Instruction No. 400, of December 29, 2003, of the Brazilian Securities Commission (the "CVM"), Braskem S.A. ("Braskem"), hereby announces that on 4/8/2004, the CVM required registration of the public offering for primary distribution, on the unorganized over-the-counter market, of: 11,700,000,000 Class "A" Preferred Shares (the "Shares"), issued by Braskem S.A. Rua Eteno, 1561 Polo Petroqu�mico, 42810-000 Camacari, BA CNPJ n� 42.150.391/0001-70 - NIRE 29300006939 Companhia Aberta - CVM n� 00482 0 to occur simultaneously in Brazil and abroad (the "Global Offering"). The Global Offering will be made through a public offering for the primary public distribution of Shares, as follows: (i) approximately 1/3 of the Global Offering will be distributed to institutional and retail investors in Brazil, in accordance with the procedures established by CVM Instruction No. 400/03 (the "Brazilian Offering"); and (ii) approximately 2/3 of the Global Offering will be distributed abroad, to investors in the United States of America and countries other than Brazil, in the form of American Depositary Shares, or ADS's, each one of which represents one thousand Shares, in accordance with the U.S. Securities Act of 1933 or the legislation in effect in the country of each investor's domicile, pursuant to Regulation S of the U.S. Securities Act (the "International Offering"). The Brazilian Offering will be coordinated by the Investment Bank Credit Suisse First Boston S.A. ("Banco CSFB"), and Unibanco - Uniao de Bancos Brasileiros S.A. ("Unibanco"), which shall together be designated as the "Brazilian Coordinators". Unibanco will act as the leading coordinator (the "Leading Coordinator") exclusively for purposes of registration with the CVM, pursuant to CVM Instruction No. 400/03. The International Offering will be coordinated by Credit Suisse First Boston LLC and Unibanco Securities, Inc. Credit Suisse First Boston LLC (the "Global Coordinator") will also act as global coordinator for purposes of coordinating the Brazilian Offering and the International Offering, and determining the final allocation between both offerings. The Global Offering is conditioned upon prior registration with the CVM and the U.S. Securities and Exchange Commission (the "SEC"). The Brazilian Offering is conditioned upon the existence of market conditions suitable to carrying out the International Offering and vice-versa, as well as the obtainment of the respective distribution registrations, on the conditions set forth herein. The Issuer will grant an option to the Brazilian Coordinators for the placement of additional shares in an amount up to 15% of the total Brazilian Offering ("Additional Shares of the Brazilian Offering"), for the exclusive purpose of meeting any possible additional demand during the course of the distribution, within thirty (30) days as of the date of the publication of the Announcement on the Commencement of Distribution. Furthermore, Braskem will grant an option to the Global Coordinator for additional shares ("Additional Shares of the International Offering"), which will be used to meet any additional demand noted during the course of the International Offering. Issue Price. The issue price for the Shares will be determined after the bookbuilding procedure is carried out by the Global Coordinator, together with the Brazilian Coordinators. This procedure consists of the receipt of statements of investment intentions regarding the purchase of Shares by Institutional Investors and investors in the International Offering, and the determination of the issue price per one thousand (1,000) Shares, based on: (i) the price of class "A" preferred shares issued by the Company, traded on the Sao Paulo Stock Exchange and the LATIBEX section of the Madrid Stock Exchange, and the ADS's traded on the New York Stock Exchange; and (ii) indications of interest, based on demand (in terms of volume and price), collected from potential investors, according to Article 170, 1, Item III of Law No. 6,404/76 and Article 23, 1, of CVM Instruction No. 400/03. The issue price of each ADS will be fixed in U.S. dollars. Considering that each ADS represents 1,000 Shares and that the Shares are traded in lots of one thousand, the issue price per one thousand Shares in the Brazilian Offering will correspond to the issue price of each ADS. The conversion of the issue price will be based on the selling rate for U.S. dollars on the floating rate exchange market, as calculated and published by the Brazilian Central Bank through SISBACEN, PTAX 800, option 5, after the close of the banking day on the date of the signing of the distribution contract for the Brazilian Offering. Distribution Plan and Procedures. The Brazilian coordinators have developed a Share distribution plan, which will take in account their relations with customers and other considerations of a commercial or strategic nature, of the Brazilian Coordinators and the Issuer. The Brazilian Coordinators shall guaranty the suitability of the investment to their customers' risk profiles, as well as the fair, equal treatment of investments. After the CVM has granted the necessary registration, the Brazilian Coordinators will make a public offering for the primary distribution of Shares on the unorganized over-the- counter market, in accordance with CVM Instruction No. 400/03, as follows: (i) a Retail Offering aimed at individual and company investors, residing and domiciled in Brazil, and not deemed "Institutional Investors" for purposes of the Brazilian Offering, and investment clubs that opt to participate in the Retail Offering ("Retail Investors"), and (ii) an Institutional Offering aimed at individual and company investors whose amounts of investment exceed the maximum limit established in the Retail Offering, investment funds and clubs, pension funds, entities administering third-party resources registered with the CVM, entities authorized by the Brazilian Central Bank to operate, insurance entities, supplementary retirement and capitalization entities, and investors located abroad that invest in Brazil pursuant to the rules of Resolution No. 2,689, of January 26, 2000, of the National Monetary Council ("Institutional Investors"). Retail Offering and Procedures for Reservation of Shares. Up to ten percent (10%) of the Shares in the first offering, not including the Additional Shares of the Brazilian Offering and Additional Shares of the International Offering, will be allocated first for distribution to Retail Investors, on the following conditions: (i) Retail Investors interested in the subscription of Shares will have the opportunity to make reservation requests, from 9/8/2004 to 9/21/2004, with a single institution -- either (1) Unibanco, through its subsidiary security brokers; (2) Banco ABN-Amro Real S.A., directly or through its subsidiaries, Banco Bradesco S.A., directly or through its subsidiaries, or Banco do Brasil S.A., directly or through its subsidiaries ("the Contracted Coordinators"); or (3) one of the securities brokers registered with the Brazilian Liquidation and Custody Company ("the Special Participants"). For purposes of this notice, the Contracted Coordinators and the Special Participants are jointly designated as the "Sub-contracted Parties". Reservation requests shall be made according to the following rules: (a) the minimum amount of investment per Retail Investor shall be one thousand Reais (R$ 1,000.00) and the maximum amount shall be three hundred thousand Reais (R$ 300,000.00), except for investment clubs that opt for the Retail Offering; and (b) the minimum amount of investment for investment clubs that opt for the Retail Offering shall be one thousand Reais (R$ 1,000.00) and the maximum amount shall be six hundred thousand Reais (R$ 600,000.00); (c) for purposes of calculating these limits, all of the reservations made by each Retail Investor shall be considered; (d) reservations must be made by filling out a specific form made available by Unibanco, through its subsidiary security brokers, or the Sub-contracted Parties, as listed below; (e) at Unibanco's discretion, through its subsidiary security brokers, or the Subcontracted Parties, as the case may be, Retail Investors may make their reservation requests with or without prior deposit of the full amount of intended investments. It is recommended that Investors verify the requirements of the institution of their choice regarding prior deposit of the full amount of intended investments, prior to making reservations requests; (f) in the event that Unibanco, through its subsidiary security brokers, or any the Sub-contracted Parties, as the case may be, demands prior deposit of the amount of intended investment at the time the reservation request is made, the funds related to such deposit shall be maintained in blocked, non-interestbearing accounts specified by Unibanco until the date of payment; (g) in the event that Unibanco, through its subsidiary security brokers, or any of the Sub-contracted Parties, as the case may be, receives reservation requests without the prior deposit of the full amount of intended investments, Retail Investors shall make payment to Unibanco, through the subsidiary security brokers, or the Sub-contracted Parties, which made their reservation requests, as the case may be, in an amount corresponding to the Shares effectively distributed to them, in immediately available funds by 10:30 a.m. on the date of payment; and (h) exclusively with respect to reservation requests made without prior, full deposit of intended investments, Unibanco, through its subsidiary security brokers, or the Sub-contracted Parties, shall notify Retail Investors of the number of Shares effectively subscribed and the respective amount of investment by 12:00 p.m. of the day following the publication of the Announcement of the Commencement of Distribution, by e-mail, or in its absence, by telephone or mail. (ii) The controllers or administrators of the Company, of the Brazilian Coordinators, or of the Subcontracted parties, as well as any other parties associated with the Brazilian Offering, their spouses and companions, ancestors, descendants and collateral relatives to the second degree of kinship may only participate in the Retail Offering and must make reservation requests between 9/8/2004 and 9/14/2004. (iii) In their reservation requests, Retail Investors may stipulate a maximum issue price per lot of one thousand (1,000) Shares as a condition to the reservation, without the need for subsequent confirmation. In the event that the issue price per thousand Shares established in the Bookbuilding Procedure is greater than the amount stipulated by the Retail Investor, the respective Reservation Request will automatically be cancelled and the total amount of any prior deposit made in connection with the reservation will be returned, without interest or monetary adjustment, without reimbursement and with deduction, as the case may be, of any amounts related to the CPMF tax (Prior Contribution for Transfer or Transmission of Securities, Credits and Rights of a Financial Nature), within three (3) working days after the date of payment. (iv) In the event that the CVM should cancel or revoke the Global Offering, pursuant to Articles 19 and 25 of CVM Instruction 400/03, reservation requests will be automatically cancelled and any prior deposits made will be returned to the respective Retail Investors, without interest or monetary adjustment, without reimbursement and with deduction, as the case may be, of any amounts related to the CPMF tax, within three (3) working days of the automatic cancellation of the respective Reservation Request. (v) Retail Investors may only cancel reservation requests in the event of material discrepancies between the information contained in the preliminary prospectus and the final prospectus that substantially alters the risk assumed by the Retail Investor or its investment decision. Retail Investors must make cancellation requests within five (5) working days as of the publication of the final prospectus. In such event, for those Retail Investors that made prior deposits, Unibanco, through its subsidiary security brokers, or the Sub-contracted Parties, will return such amounts in full to the respective Retail Investors, without interest or monetary adjustment, without reimbursement and with deduction, as the case may be, of any amounts related to the CPMF tax, within three (3) working days of the reservation cancellation requests; (vi) Each Retail Investor that has made a reservation request and deposit of funds according to the requirements described in this notice will receive the number of lots of one thousand Shares calculated by dividing the amount deposited by the issue price per one thousand Shares from the CBLC on the Global Offering payment date. If this calculation results in a fraction of a lot of one thousand Shares, Unibanco, through its subsidiary security brokers, or the Sub- ontracted Parties, as the case may be, will return the difference between the amount deposited and the amount corresponding to the number of lots of one thousand Shares delivered to the Retail Investor, without interest or monetary adjustment, without reimbursement and with deduction, as the case may be, of any amounts related to the CPMF tax, within three (3) working days after the date of payment; (vii) In the event that the total number of reservation requests is greater than ten percent (10%) of the total number of Shares in the Global Offering, not including the Additional Shares of the Brazilian Offering and Additional Shares of the International Offering, such Shares will be proportionally divided among all of the Retail Investors that made reservation requests. The unused balance of deposits made in connection with reservation requests will then be returned to the respective Retail Investors, without interest or monetary adjustment, without reimbursement and with deduction, as the case may be, of any amounts related to the CPMF tax, within three (3) working days after the date of payment. The Brazilian Coordinators may, at their sole discretion, choose to fulfill the additional demand related to the Retail Offer, or increase the number of Shares to be proportionally divided among the Retail Investors. (viii) In the event that the Global Offering is not concluded, reservation requests will be cancelled and Unibanco, through its subsidiary security brokers, or the Sub-contracted Parties, as the case may be, will return all amounts deposited to the Retail Investors, without interest or monetary adjustment, without reimbursement and with deduction, as the case may be, of any amounts related to the CPMF tax, within three (3) working days of the cancellation of the reservation request. The Shares not offered to Retail Investors will be used in the Institutional Offering or the International Offering. Institutional Offering. By 9/23/2004, the estimated date for the determination of the issue price of the Shares, the Brazilian Coordinators shall receive statements of investment intentions and/or requests to subscribe Shares from the Institutional Investors, which shall not be subject to reservation requirements or minimum/maximum limits, and all such respective allocations will be made according to the results of the bookbuilding procedure. The Brazilian Coordinators will adopt procedures to fulfill requests based on a qualitative analysis of each Institutional Investor, giving priority to those investors which, at the discretion of the Brazilian Coordinators and the Company, best meet the goal of this Offering to create a diversified base of shareholders made up of investors with different evaluation criteria on the long-term outlook of the Company, the sector and the Brazilian and international macro- economic scenario. It is recommended that investors, before making any investment decision, fully and carefully read the preliminary prospectus available as of today's date: (a) at Braskem's headquarters, located at Av. das Na�oes Unidas, 4,777, in the city of Sao Paulo, state of Sao Paulo, and on the Company's investor relations website: www.braskem.com.br; (b) at Banco CSFB headquarters, located at Av. Brigadeiro Faria Lima,3,064, 13th floor, in the city of Sao Paulo, state of Sao Paulo, and on the website: www.csfb.com.br/ofertas; (c) at Unibanco headquarters, located at Av. Eus�bio Matoso, 891, 18th floor, in the city of Sao Paulo, state of Sao Paulo, and on the website (under the Capital Markets section): www.unibanco.com/bancodeatacado; (d) at the Brazilian Securities Commission (CVM), located at Rua Sete de Setembro, 111, in the city of Rio de Janeiro, state of Rio de Janeiro, and on its website: www.cvm.gov.br; and (e) at the Sao Paulo Stock Exchange, located at Rua XV de Novembro, 275, in the city of Sao Paulo, state of Sao Paulo, and on its website: www.bovespa.com.br. Below follows a list of those Unibanco subsidiaries and Contracted Coordinators through which Retail Investors may make reservation requests: - Unibanco - exclusively through subsidiary security brokers, including on the website: www.investshop.com.br; - Banco ABN Amro Real S.A. - all agencies; - Banco do Brasil S.A. - all agencies; - Banco Bradesco S.A. - exclusively through subsidiary security brokers, including on the website: www.shopinvest.com.br; Retail Investors may also submit their reservation requests through one of the Special Participants in the offering. A complete list of these Special Participants may be found on the CBLC website: www.cblc.com.br CONTACT: Braskem Investor Relations Department Phone: (11) 3443-9531 Unibanco Phone: (11) 3097-1396 CELG: 25.91% Tariff Hike Officially Authorized ---------------------------------------------- The 25.91% tariff hike granted to Brazil's Goias state power distributor Celg would facilitate the payment of its BRL176 million debt to Cachoeira Dourada (CDSA) and end the dispute between the two companies. Business News Americas reports that the tariff hike, granted by electricity regulator Aneel, includes an extra 4.77% intended to allow the Company to raise BRL58.7 million (US$20.2mn) so it can pay back the first installment of its CDSA debt. The remaining 21.14% basic rate increase will account for inflation and non-manageable costs. Celg's decision to break away from a power purchase contract with CDSA landed the two companies in a legal dispute in 2003. Celg had claimed that the contract prices were too high. However, the court has since ordered Celg to pay 50% of the total contract price. The rest of the debt will be paid back in 2004, 2005 and 2006. The new rates took effect Saturday, September 11. COSIPA: Foreign Currency Rating Raised to `B1' From `B2' -------------------------------------------------------- Moody's Investors Service upgraded the foreign currency rating for Companhia Siderurgica Paulista (COSIPA) to B1 from B2. The upgrade affected Cosipa's US$500 million guaranteed medium-term note program and US$175 million guaranteed medium-term notes. The outlook for the rating is stable. The upgrade on Cosipa's rating follows an upgrade of Brazil's ceiling for foreign currency bonds and notes to B1 from B2. 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 CSN: Proposes Offering of Guaranteed Notes Due 2015 --------------------------------------------------- Companhia Siderurgica Nacional S.A. ("CSN") (NYSE:SID) (BOVESPA:CSNA3) announced Thursday that its wholly-owned subsidiary CSN Islands IX Corp., (the "Issuer") intends to offer guaranteed notes due 2015 by means of a private placement to qualified institutional buyers under Rule 144A, and in offshore transactions pursuant to Regulation S, under the Securities Act of 1933, as amended (the "Securities Act"). The aggregate principal amount of such notes is anticipated to be US$200,000,000. CSN will use the net proceeds from the offering for general corporate purposes, including the repayment of short-term indebtedness as it comes due. CSN and the Issuer expect to file a registration statement with the United States Securities and Exchange Commission ("SEC") and to use their reasonable best efforts to exchange the notes for others registered with the SEC on or before October 31, 2005. The notes have not been and, at the time of the offering, will not be, registered under the Securities Act, or any state securities laws, and may not be offered or sold in the United States absent registration under, or an applicable exemption from, the registration requirements of the Securities Act and applicable state securities laws. This press release shall not constitute an offer to sell the notes in the United States. This communication is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the "Order") or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2) of the Order (all such persons identified in (i), (ii) and (iii) together being referred to as "relevant persons"). The notes are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such notes will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this communication or any of its contents. EMBRATEL: Moody's Ups FC Ratings Following Brazil Upgrade --------------------------------------------------------- The foreign currency rating for the US$200 million senior unsecured notes issued by Empresa Brasileira de Telecomunicacoes S.A. (Embratel) has been upgraded to B1 from B2 by Moody's Investors Service. The outlook for the rating is stable. The upgrade on Embratel's rating follows an upgrade of Brazil's ceiling for foreign currency bonds and notes to B1 from B2. 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 GERDAU: Purchasing North Star Steel Assets ------------------------------------------ Gerdau Ameristeel Corporation (TSX: GNA.TO) announced Thursday that its U.S. operating subsidiary, Gerdau Ameristeel US Inc., has entered into definitive agreements with Cargill, Incorporated and certain of its subsidiaries to purchase the fixed assets and working capital of four long steel product minimills in St. Paul, Minnesota; Wilton, Iowa; Calvert City, Kentucky; and Beaumont, Texas; three wire rod processing facilities in Beaumont, Texas; Carrollton, Texas; and Memphis, Tennessee; and a grinding ball facility in Duluth, Minnesota. The integration of these operations will provide Gerdau Ameristeel's customers with expanded geographical coverage and a broader range of products. The purchase price for the acquired assets is $266 million in cash subject to adjustment for working capital fluctuations prior to the closing date. The agreement includes the assumption by Gerdau Ameristeel at the closing of substantially all of the liabilities of the businesses being acquired, including specific contractual obligations and selected employee liabilities. Gerdau Ameristeel has available cash and existing credit facilities that are sufficient to finance the transaction. Subject to satisfactory completion of anti-trust and other regulatory reviews, the transaction is expected to close before the end of 2004. The four North Star Steel minimills have an annual production capacity of approximately two million tons of long steel products, principally merchant bars, special bar quality steel, light structural shapes, reinforcing bar and wire rod. Customers include steel service centers, original equipment manufacturers and steel fabricators. The four downstream product manufacturing facilities have an annual production capacity of approximately 300,000 tons. The wire rod processing facilities produce reinforcing wire mesh, chain link fencing and industrial wire. The grinding ball facility produces grinding balls for crushing and processing of minerals in various mining industries. Phillip Casey, president and CEO of Gerdau Ameristeel commented: "This transaction combines the professional talents and solid reputations of two exceptional organizations. The consolidation of the North Star team with Gerdau Ameristeel is a dynamic step in the continuing revitalization of the North American steel industry. This combination will provide new opportunities for the employees, customers and associated stakeholders of both companies." Gerdau Ameristeel is the second largest minimill steel producer in North America with annual manufacturing capacity of over 6.4 million tons of mill finished steel product. Through its vertically integrated network of 11 minimills (including one 50% owned minimill), 13 scrap recycling facilities and 32 downstream operations, Gerdau Ameristeel primarily serves customers in the eastern half of North America. The company's products are generally sold to steel service centers, steel fabricators, or directly to original equipment manufacturers for use in a variety of industries, including construction, automotive, mining and equipment manufacturing. CONTACT: Gerdau S.A. Avenida Farrapos 1811 Porto Alerge RS 90220-005 Brazil Phone: +55 3323 2000 Web Site: http://www.gerdau.com.br/ IPIRANGA: Moody's Raises FC Rating to B1 from B2 ------------------------------------------------ Moody's Investors Service upgraded the foreign currency rating for the US$100 million senior unsecured step-up notes issued by Companhia Brasileira de Petroleo Ipiranga to B1 from B2. The outlook for the rating is stable. The upgrade on Ipiranga rating follows an upgrade of Brazil's ceiling for foreign currency bonds and notes to B1 from B2. MARLIM: Moody's Improves FC Rating to B1 From B2 ------------------------------------------------ Moody's Investors Service upgraded the foreign currency rating for the US$500 million medium-term notes issued by Companhia Petrolifera Marlim. The rating action follows an upgrade of Brazil's ceiling for foreign currency bonds and notes to B1 from B2. The outlook for the rating is stable. The rating on Marlim is linked to any future improvements in Brazil's B1 ceiling for foreign currency bonds and notes. TELESP: Moody's Ups Foreign Currency Issuer Rating to B1 -------------------------------------------------------- Moody's Investors Service upgraded the foreign currency issuer rating of Telecomunicacoes de Sao Paulo S.A. (Telesp) to B1 from B2 following an upgrade of Brazil's ceiling for foreign currency bonds and notes to B1 from B2. The outlook for the rating is stable. The rating on Telesp is linked to any future improvements in Brazil's B1 ceiling for foreign currency bonds and notes. * BRAZIL: Fitch Assigns Global Bonds Much Anticipated 'B+' ---------------------------------------------------------- Fitch Ratings, the international rating agency, has assigned the euro-denominated eight-year bond issue (EUR750 million) of the Republic of Brazil, expiring in September 2012, an expected long-term foreign currency rating of 'B+'. The Rating Outlook is Stable. 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 nearly 50% to US$18.5 billion in the year to July 2004, and the current account likely to post its second straight annual surplus this year, perhaps above 1% of GDP. As a result, international reserves net of IMF borrowings and other items, should rise modestly this year to close to US$24 billion. Exchange rate competitiveness, favorable commodity prices and diversified exports have enabled Brazilian exporters to gain ground. Brazilian GDP will be growing at a pace close to 4% this year with a current account surplus, which is no mean achievement. 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 twelve months to June totaled 4.5% of GDP, yielding a budget deficit of 3.8%, 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 dollar- indexed liabilities representing only 15.8% of government debt in June 2004, down from 30.7% a 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. 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. Yet Brazil remains highly leveraged to market sentiment, given US$17 billion in medium and long-term external debt amortizations due during the rest of this year and US$24 billion next year. In addition, Brazil's current financing program with the IMF expires at the end of this year, and the authorities appear poised not to renew the program for financing purposes. Brazil will have to pay the IMF US$6.8 billion in principal next year and US$8.4 billion in 2006. So, the legacy of borrowing in the past and the need to refinance leave Brazil vulnerable to market confidence, even though trade performance has improved dramatically. Furthermore, the treasury's domestic debt rollover requirements for the rest of the year are not light, representing nearly 5% of 2004 GDP and about 18% of GDP in the next twelve months. Finally, municipal elections are scheduled for October, and the outcome will affect perceptions about the strength of President Lula and his PT party, and their ability to continue down the path for such needed reforms as central bank autonomy legislation, further social security reform, further tax reform, and regulatory reform. * BRAZIL: Moody's Raises Ratings on Continued Export Expansion ------------------------------------------------------------ Moody's Investors Service upgraded Thursday Brazil's credit rating one notch to B1 - four notches below investment grade - bringing the rating flush with S&P and Fitch. The agency said "a continued export expansion combined with less reliance on foreign-currency borrowing that has sharply reduced the ratio of external debt-to-exports is sustainable." The outlook for all ratings remains stable. Local currency-denominated bonds of Brazil and of its central bank have been upgraded to Ba3 from B2, Moody's said in a statement. ========= C H I L E ========= ENAMI: New Bill Could Ease Financial Strain ------------------------------------------- Enami is expected to regain financial health with the Chilean government's proposal to refrain from drawing on the Company's anticipated profits until 2026 and defer charging taxes until 2021. Besides securing Enami's financial solidity, the proposal also gives the senate a new opportunity to discuss the bill, which would pave the way for the transfer of Enami's Ventanas Smelter to state company Codelco. The senate's mining committee will vote on the bill for a second time on September 15. A Ventanas transfer would shave as much as US$30 million off Enami's US$160 million debt from unpaid taxes. =============== C O L O M B I A =============== AVIANCA: Enters Code-Sharing Agreement With Spain's Iberia ---------------------------------------------------------- Colombian flagship airline Avianca has entered a code-sharing agreement with Spain's largest airline, Iberia SA (IBLA.MC), reports Dow Jones Newswires. Under the agreement, the airlines can sell seats on each other's flights as if they were its own. The airlines will also be able to expand their offerings without having to add flights. Starting Sept. 20, Avianca's passengers will be able to fly from Madrid to the Spanish cities of Valencia, Barcelona, Alicante as well as Paris. In return, Iberia's customers flying from Madrid to Bogota will have access to continuing service to the Colombian cities of Cali, Medellin, Cartagena and Pereira. Avianca filed for Chapter 11 bankruptcy protection in March of 2003 and delivered its reorganization plan to a U.S. court in July of this year. Just recently, a U.S. bankruptcy judge approved a restructuring plan that would transfer control to Brazil's Grupo Sinergy if creditors support the proposal. Sinergy offered in March to inject US$64 million of capital into Avianca and assume nearly US$300 million in debt in return for a 75% stake in the world's second-oldest airline. CODAD: S&P Affirms Rating; Outlook Still Stable ----------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB' rating on Compania de Desarrollo Aeropuerto Eldorado S.A.'s (CODAD) US$116 million 10.19% notes due 2011. The outlook is stable. CODAD is a special-purpose corporation, which was awarded a concession contract by the Republic of Colombia's governmental unit, Unidad Administrativa Especial de la Aeronautica Civil (AEROCIVIL), the operator of Colombian airports and the nation's equivalent to the U.S. Federal Aviatio Administration. CODAD collects all landing fees at the El Dorado international airport in Bogota, Colombia through 2015. These fees, as well as minimum revenue guarantee payments from AEROCIVIL, secure the bonds. CODAD's aircraft landings have decreased almost 5.0% during the first six months of 2004 compared with the same period last year. However, international landings have increase 4.5% during the same period, which have driven revenues up 17% compared with the last year (in pesos). International landing fees are almost 6.0x higher than domestic landings fees. On the other side, domestic aircraft landings continued its declining trend, decreasing by 8.0%. The stable outlook reflects the outlook assigned to the Republic of Colombia. The outlook also reflects the fact that CODAD currently is dependent on the minimum revenue guarantee from AEROCIVIL to service its debt. "Further declines in landings or evidence that AEROCIVIL may be distancing itself from its guarantee--an action which, to date, has not arisen--could result in a downgrade," said Standard & Poor's credit analyst Juan Becerra. In addition, any rating action on the Republic of Colombia could lead into the same rating action on CODAD. ANALYSTS: Juan P Becerra, Mexico City (52) 55-5081-4416 Santiago Carniado, Mexico City (52) 55-5081-4413 =================================== D O M I N I C A N R E P U B L I C =================================== BANCO CENTRAL: Fails to Pay Interest, Notice Issued --------------------------------------------------- NOTICE TO HOLDERS OF BANCO CENTRAL DE LA REPUBLICA DOMINICANA (THE "CENTRAL BANK") Uncollateralized Past Due Interest Bonds, Due 2009 (the "PDI Bonds") THIS NOTICE IS GIVEN pursuant to Section 6(e)(2) and Section 6(e)(3) of the PDI Bond Fiscal Agency Agreement, dated as of August 30, 2004, among Banco Central de la Republica Dominicana, Citibank, N.A. and Citibank (Luxembourg) S.A. Citibank, N.A., as Fiscal Agent, hereby notifies the holders of the Bonds that the Central Bank has failed to deposit sufficient funds to pay the interest and principal due on August 30, 2004 on the Bonds. Inquiries from holders may be sent via facsimile to the Fiscal Agent at (212) 657-4009. All inquiries must be accompanied by proof of status as holder. CITIBANK, N.A. As Fiscal Agent Dated: September 1, 2004 =========== M E X I C O =========== AEROMEXICO: Orders 10 More Planes From Boeing --------------------------------------------- Boeing (NYSE: BA) and Aeromexico said Thursday the airline is acquiring 10 additional Next-Generation 737-700 airplanes for its fleet-modernization program. Aeromexico ordered eight of the airplanes from Boeing and is leasing the remainder. As the transaction was completed earlier, Boeing has reflected it on its orders website in the "unidentified" category. "The 737-700 remains a key solution for our airline," said Aeromexico Chief Executive Officer Fernando Flores. "The superior operating economics of the Next-Generation 737s are especially important in light of continued rising fuel costs." The airplanes will be delivered between July and December, 2005. This order complements Aeromexico's 2003 order for 15 airplanes, 10 of which have been delivered. The remainder will be delivered by the end of November. The 737-700's short- and long-range flight flexibility provides access to 90 percent of Aeromexico's destinations. The airplane also replaces less efficient older aircraft and will allow Aeromexico to comply with noise reduction laws as required. Aeromexico's 737-700s have 112 economy-class seats and 12 Clase Premier seats, and the largest available overhead storage bins. As with Aeromexico's other 737s, the new ones will have Blended Winglets -- 8-foot-long wingtip extensions that reduce fuel consumption by approximately 3.5 percent and increase the aircraft's range up to 450 nautical miles. The winglets improve performance at hot, high-altitude airports like Mexico City, reduce airplane noise by lowering the engine thrust required at takeoff, and help reduce engine maintenance costs by reducing wear. The Boeing Next-Generation 737s fly higher, faster, farther, and more quietly than comparable airplanes, while offering greater fuel efficiency. It is the world's best-selling commercial airplane family, with more than 5,400 ordered by 220 customers. Aeromexico is Mexico's largest airline and a leader in on-time performance and baggage handling. It operates Boeing 767, 757, 737, and MD-80 jetliners. From its Mexico City hub it operates more than 300 daily flights to 30 cities within Mexico, 15 in the United States, two in Europe and three in South America. It's a founding member of SkyTeam, the global airline alliance that also includes Air France, Alitalia, Continental, CSA Czech Airlines, Delta Air Lines, Korean Air and Northwest. LUZ Y FUERZA: Moves to Collect Payments From Various Firms ---------------------------------------------------------- Mexico's state-owned electricity company Luz y Fuerza del Centro (LyFC) is seeking payment of approximately MXN3.5 billion from firms operating in the sewerage and potable water sector, reports Notimex. The agency's general director Luis de Pablo Serna said that his administration is willing to engage in talks with these debtor entities to resolve the matter. The official noted that the agency has had some difficulties in convincing some municipal authorities to recognize their debt. He explained that many have new political parties in office and that these authorities refuse to acknowledge the debt of their predecessors. The official insisted that services should be paid for, since LyFC's administration is unable to write them off because financial authorities (and not LyFC) establish the cost of services. GRUPO MEXICO: BBVA Starts Coverage With "Outperform" Rating ----------------------------------------------------------- Analysts with financial giant BBVA Securities started coverage Thursday of Mexican metals, mining and transport company Grupo Mexico SA (GMEXICO.MX) with an "outperform" rating. BBVA set a MXN47.19 (US$4.08) price target for the company's shares on Mexico City's bourse, 16% higher than the company's August 31 share price of MXN40.63. "We do not believe that 16% upside potential offers enough of a comfort margin to justify the accompanying environmental and commodity risks," BBVA said in a research report. The "environmental" risks refer to the liabilities at U.S. unit Asarco, while BBVA's warning on commodities stems from the possibility that copper prices may not sustain their current highs. Still, the investment bank sees the "strong copper price cycle" as an upside to the company, along with plans to unify operations between Mexican mining unit Minera Mexico and Southern Peru Copper (SPCC, NYSE: PCU). Grupo Mexico, with mining operations in Mexico, Peru and the U.S., is the world's third largest copper producer after Chile's Codelco and Phelps Dodge of the U.S. It's also the company with the world's second-largest copper reserves. Grupo Mexico shares have risen this year as the company takes advantage of high metals prices to increase earnings and pay down debt. MAXCOM TELECOMUNICACIONES: Selects Lucent to Expand Network ----------------------------------------------------------- Lucent Technologies (NYSE: LU) announced Thursday that it has been selected by Maxcom Telecomunicaciones to expand its network and incorporate access and other platforms for IP services and applications. Under the terms of the agreement, Lucent will supply Maxcom with next- generation 5E-XC(TM) switch software, from Lucent's Accelerate(TM) portfolio, to upgrade Lucent 5ESS(R) switches to increase capacity and expand coverage, and also the infrastructure to grow its access and IP services system. With these network upgrades, the operator will expand its services portfolio, increase its customers base with a proven technology and offer new IP services such as Voice over IP (VoIP) and virtual private networks (VPNs) for its corporate and residential customers. Maxcom selected Lucent's equipment, software and services as part of its network expansion and upgrade program to respond to current and future demand for voice and data services. With the advanced Lucent platforms, Maxcom will cost-effectively deploy new value added services, as well as traditional telephony services in new regions. "This expansion improves our network, increases its coverage and capacity, and expands the availability of our services across the country," said Ricardo Arevalo Ruiz, Maxcom Operations and Information Technologies vice president. "Through this project we will continue to improve and expand our network to move voice and data traffic between cities, from a geographic area to another, and from Mexico to the world." "We are very excited to be working with Maxcom in the quick deployment of this expansion to help them respond to the growing demand for voice and data services in Mexico," said Osvaldo di Campli, Lucent Technologies sales vice president for Mexico, Central America and the Caribbean. "Through this project Maxcom continues to be at the forefront of communications services in Mexico." Lucent Technologies de Mexico, a subsidiary of Lucent Technologies, will provide the products and services outlined in this agreement. About Lucent Technologies Lucent Technologies designs and delivers the systems, services and software that drive next-generation communications networks. Backed by Bell Labs research and development, Lucent uses its strengths in mobility, optical, software, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for its customers, while enabling them to quickly deploy and better manage their networks. Lucent's customer base includes communications service providers, governments and enterprises worldwide. Lucent Technologies has headquarters in Murray Hill, N.J., USA. Web site: http://www.lucent.com About Maxcom Maxcom Telecomunicaciones, S.A. de C.V, with headquarters in Mexico City, is a supplier of telecommunications services for small and medium size companies and to residential customers in Mexico city, Puebla and Queretaro. Maxcom started commercial operations in May 1999 and offers now local, long distance and data services. Web site: http://www.maxcom.com.mx ============= U R U G U A Y ============= UTE: Central Bank Refinances Debt --------------------------------- Uruguay's central bank has agreed to refinance state-power company UTE's debt, reports Business News Americas. The Company, which was scheduled to pay-off a US$1 - US$1.4 million debt this year, will instead resume payment in 2005. The refinancing agreement gives the Company ten years to repay its remaining debt with the bank. Also, the breathing space could minimize the planned tariff hike. UTE chairman Ricardo Scaglia says that because of the refinancing agreement, any increase would only be minimal. Rates could be adjusted 3-4 percent and not the 10 percent previously discussed. ================= V E N E Z U E L A ================= PDVSA: Renews JBIC Financing Accord ----------------------------------- The renewal of the financial cooperation agreement between Japan Bank for International Cooperation (JBIC) and state-run oil company PDVSA is an important move towards improving Venezuelas' oil and gas industry. In a Business News Americas report, vice president Jose Rojas said that PDVSA hopes to fund US$3 billion worth of investments plan with the help of JBIC. Mr. Rojas mentioned the east-west gas interconnection project among the projects for development. *********** 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 * * *