/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040917.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, September 17, 2004, Vol. 5, Issue 185 Headlines A R G E N T I N A AIRSYS S.A.: Asks Court for Reorganization EDESUR: Fitch Rates Proposed $120M Bond Issue BBB ENRIQUE CALCAGNO: Gets Court Ok for Reorganization EQUIPAMIENTOS PROFESIONALES: Begins Liquidation Process GATIC: Judge's Bankruptcy Ruling Surprises Creditors GRANJA LOS TILOS: Court Grants Reorganization Plea LOCK SECURITY: Court Orders Liquidation METALURGICA VIALE: Individual Reports Up for Submission METROGAS: S&P Maintains Junk Rating Assigned to Various Bonds PESQUERA AUSTRAL: General Report Due Today REJIAR: Claims Verification Period Closes TELEFONICA DE ARGENTINA: To Spend $16.6M In Fiber-Optic Network TGS: $400M in Bonds Remain at Junk Level B E R M U D A FOSTER WHEELER: Recalculates Interest on New Notes to 10.422% GLOBAL CROSSING: Provides Telecom Services to CIMSA NORTHERN OFFSHORE: Restructuring Plan Gets Bondholders' OK B R A Z I L LIGHT: Restructures $650M Debt With Creditors C H I L E ENAMI: Back in the Black With $9M Profits C O L O M B I A TERMOEMCALI: S&P Cuts Ratings To `D' J A M A I C A JPSCo: Mirant Settles Issues on Technical Loan Breach M E X I C O CYDSA: Shareholders OK $167M Capital Hike EMPRESAS ICA: Unit Wins $684M Refinery Overhaul Contract GRUPO POSADAS: To Issue $150M Senior Notes Due 2011 HOST MARRIOTT: S&P Rates Amended $575M Facility B+ P U E R T O R I C O CENTENNIAL COMMUNICATIONS: To Elect Directors at Sept. 30 AM V E N E Z U E L A CANTV: Works with Alcatel to Develop Networks PDVSA: Former Workers Claim They Are Owed $1.3B - - - - - - - - ================= A R G E N T I N A ================= AIRSYS S.A.: Asks Court for Reorganization ------------------------------------------ Airsys S.A., a company operating in Buenos Aires, requested reorganization after defaulting on its debt obligations. 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 court no. 4 of the city's civil and commercial tribunal. Clerk no. 8 assists on this case. CONTACT: Airsys S.A. Viamonte 1454 Buenos Aires EDESUR: Fitch Rates Proposed $120M Bond Issue BBB ------------------------------------------------- The Argentine arm of credit ratings agency Fitch Ratings assigned a BBB rating to local power distributor Edesur SA's proposed US$120-million bond issue, reports Business News Americas. The outlook is stable. Concurrently, Fitch confirmed the local scale BBB rating on Edesur's US$450 million debentures program, under which the bonds will be issued. The rating reflects successful refinancing carried out in 2003 and 2004, which stretched the maturity of Edesur debts, as well as an improvement in the company's liquidity. Edesur proposes to issue up to US$120 million bonds in two series - Classes 5 and 6. Details of the offering will be presented to a group of selected banks and private investors this week, Business News Americas reports, citing a company source. Bond issue proceeds will be used to finance investments and to pay debt in US dollars, thereby increasing the portion of debt in pesos, which reduces the company's exposure to the exchange rate, Fitch said. Edesur reported net losses of US$2.3 million for the first half of 2004 and Net Equity of ARS2.1 billion as of June 30, 2004. Edesur holds an exclusive license to provide electricity distribution services in the central and southern areas of Buenos Aires as well as the southeastern portion of the Greater Buenos Aires area. It serves a population of over 6 million people making it the largest electric distribution outfit in Argentina in terms of volume distributed. CONTACT: Edesur S.A. San Jos, 140 Buenos Aires Tel: 4383-0200 4381-1313 ENRIQUE CALCAGNO: Gets Court Ok for Reorganization -------------------------------------------------- Enrique Calcagno S.R.L. will begin reorganization proceedings following the approval of its petition by court no. 3 of Junin's civil and commercial tribunal. The opening of the reorganization will allow the company to negotiate a settlement with its creditors in order to avoid a straight liquidation. Mr. Luis A. Mathieu will oversee the reorganization proceedings as the court-appointed trustee. He will verify creditors' claims until October 15, 2004. The validated claims will be presented in court as individual reports on November 5, 2004. The trustee is also required by the court to submit a general report essentially auditing the company's accounting and business records as well as summarizing important events pertaining to the reorganization. This report will be presented in court on December 15, 2004. The Informative Assembly, the final stage of a reorganization where the settlement proposal is presented to the company's creditors for approval, is scheduled on April 25 next year. CONTACT: Mr. Luis A. Mathieu, Trustee P. Respuela 321 Junin EQUIPAMIENTOS PROFESIONALES: Begins Liquidation Process ------------------------------------------------------- Court no. 12 of Buenos Aires' civil and commercial tribunal declared local company Equipamientos Profesionales S.A. bankrupt, says Clarin. The ruling comes in approval of the bankruptcy petition filed by the Company's creditor, Mr. Carlos Alonso, for nonpayment of US$9,008.60 in debt. Clerk No. 23 assists the court on the case, which will conclude with the liquidation of the Company's assets. CONTACT: Equipamientos Profesionales S.A Pieres 1965 Buenos Aires GATIC: Judge's Bankruptcy Ruling Surprises Creditors ---------------------------------------------------- Buenos Aires Civil and Commercial Judge Juan Manuel Gutierrez Cabello declared textiles and apparel company Gatic bankrupt at the behest of a creditor whose name has not been disclosed, reports La Nacion. The court's declaration stunned creditors, which were negotiating for the reopening of four of the company's plants in Buenos Aires and the reinstatement of 2,500 workers. The plants were set to return to operation under the management of US-based Indular, which is headed by Argentine businessmen Guillermo Gotelli. Earlier, Mr. Gotelli said he would invest US$25 million in Gatic. The three main creditors of Gatic are the state-owned banks Banco de la Nacion and Banco Ciudad and a Buenos Aires trust fund. GRANJA LOS TILOS: Court Grants Reorganization Plea -------------------------------------------------- Granja Los Tilos Zarate S.R.L., a company operating in Zarate- Campana, successfully petitioned for reorganization after court no. 1 of the city's civil and commercial tribunal issued a resolution opening the company's insolvency proceedings. Under insolvency protection, 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. Daniel E. Masaedo will serve as trustee during the course of the reorganization. The firm will be accepting creditors' proofs of claims for verification until September 30, 2004. After the verification deadline, the trustee will prepare the individual reports and submit it in court on November 11, 2004. The firm will also present a general report for court review on December 27, 2004. CONTACT: Mr. Daniel E. Masaedo, Trustee Belgrano 156 Campana LOCK SECURITY: Court Orders Liquidation --------------------------------------- Lock Security S.A. prepares to wind-up its operations following the bankruptcy pronouncement issued by court no. 14 of Buenos Aires' civil and commercial tribunal. The declaration effectively prohibits the company from administering its assets, control of which will be transferred to a court-appointed trustee. Infobae reports that the court appointed Mr. Alberto Jorge Rotenberg as trustee. He will be reviewing creditors' proofs of claims until November 16, 2004. The verified claims will be the basis for the individual reports to be presented for court approval on December 30, 2004. Afterwards, the trustee will submit a general report on March 14 next year. Clerk No. 27 assists the court on this case, which will end with the disposal of the company's assets to repay its debts. CONTACT: Mr. Alberto Jorge Rotenberg, Trustee Avda Cordoba 1336 Buenos Aires METALURGICA VIALE: Individual Reports Up for Submission ------------------------------------------------------- Mr. Juan Carlos Pitrelli, the trustee supervising the Metalurgica Viale S.R.L. bankruptcy, will submit individual reports from the case today. These reports, based on claims forwarded by the Company's creditors during the verification period, will be used in determining the list of creditors eligible for post-liquidation payments. Court No. 5 of Buenos Aires civil and commercial tribunal handles this case with the assistance of clerk no. 9 CONTACT: Mr. Juan Carlos Pitrelli, Trustee Avda de Mayo 1343 Buenos Aires METROGAS: S&P Maintains Junk Rating Assigned to Various Bonds ------------------------------------------------------------- The Argentine arm of Standard & Poor's International Ratings, Ltd. reaffirms the `raD' rating assigned to various corporate bonds issued by natural gas distributor Metrogas SA, the CVN reveals on its Web site. The action affects the following bonds: - US$130 million worth of bonds described as " Serie C por U$S 130.000.000 dentro del Programa Global de U$S 600 millones," and which matured on May 7, 2004; - EUR110 million worth of bonds described as "Serie B por euros 110 millones" and which matured on Sep. 27, 2002; - US$100 million worth of bonds described as "Serie A por U$S 100.000.000 dentro del Programa Global de U$S 600 millones" and which matured on April 1, 2003; and - US$600 million worth of bonds described as "obligaciones negociables simples" with undisclosed maturity date. The rating action is based on Metrogas' financial status as of June 30, 2004. An obligation is rated 'raD' when it is in payment default, or the obligor has filed for bankruptcy, said the S&P. The rating is used when interest or principal payments are not made on the date due, even if the applicable grace period has not expired, unless S&P believes that such payments will be made during such grace period. Spain's Repsol-YPF SA (REP) and the U.K.'s BG Group PLC (BRG) control 70% of Metrogas. CONTACT: METROGAS, S.A. Gregorio Araoz de Lamadrid 1360 Buenos Aires Argentina CPA C 1267 Phone: +54 11 4309 1010 Fax: +54 11 4309 1025 Web Site: http://www.metrogas.com.ar PESQUERA AUSTRAL: General Report Due Today ------------------------------------------ A general report on the Pesquera Austral S.A. bankruptcy case is due for court submission today, September 17, 2004. The general report, prepared by trustee Ernesto Luis Hilman, provides the court with an audit of the Company's accounting and business records. Court no. 14 of Buenos Aires' civil and commercial tribunal handles this case with the assistance of clerk no. 27. The Company's bankruptcy case will close with the liquidation of its assets to pay its creditors. CONTACT: Mr. Ernesto Luis Hilman, Trustee Viamonte 1446 Buenos Aires REJIAR: Claims Verification Period Closes ----------------------------------------- Creditors of bankrupt Rejiar S.A. have until today to present proofs of their claims to court-appointed trustee Federico Mansbach. Failure to comply with the verification deadline will mean disqualification from any post-liquidation payments to be distributed. Rejiar entered bankruptcy upon the petition of its creditor Cooperativa Concred de Credito y Vivienda Ltda for ARS4,956.22 in unpaid debts. Judge Braga of Buenos Aires' civil and commercial tribunal court no. 22 has jurisdiction over this case. CONTACT: Rejiar SA Joaquin V. Gonzalez 3804, Piso 3o Buenos Aires Mr. Federico Mansbach, Trustee Tucuman 1506, Piso 4o "402" Buenos Aires TELEFONICA DE ARGENTINA: To Spend $16.6M In Fiber-Optic Network --------------------------------------------------------------- Argentine Planning Minister Julio de Vido revealed that Telefonica de Argentina plans to invest US$16.6 million in a fiber-optic network that would link the cities of Comodoro Rivadavia and Ushuaia, reports Business News Americas. The official, who spoke about the project after meeting with President Nestor Kirchner, Telefonica de Argentina chief Mario Vazquez and executives from other multinational companies, said the project will employ "some 1,000 people for close to a year." With this kind of project, residents of Ushuaia and Comodoro Rivadavia will have direct telephone access to the rest of the country and the world, De Vido said. 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 TGS: $400M in Bonds Remain at Junk Level ---------------------------------------- Standard & Poor's International Ratings, Ltd. Sucursal Argentina reaffirms the `raD' rating on corporate bonds issued by Transportadora de Gas del Sur S.A. (TGS), says the CNV. The bonds affected are: - US$300 million worth of bonds described as "Programa Global de 2000" with undisclosed maturity date; - US$500 million worth of bonds described as "Programa Global de 1999" with undisclosed maturity date; and - US$100 million worth of bonds described as "Obligaciones Negociables emitidas bajo el Programa Global de T�tulos de Corot y Mediano Plazo por USD 500 Mio, vencido en diciembre de 1998." This issue expired in December 2, 2002. The rating action is based on the Company's financial status as of June 30, 2004. TGS's operates the largest gas pipeline system in Latin America capable of transporting 2.2 billion cubic feet per day ("bcf/d"). Its system connects the main gas fields in the south and west areas of Argentina with the gas distributors in the city of Buenos Aires and other areas. CONTACT: Transportadora de Gas del Sur S.A. Don Bosco 3672, 5th Floor 1206 Capital Federal Buenos Aires, Phone: (212) 688-5144 Fax: (212) 688-5213 e-mail: eduardo_pawluszek@tgs.com.ar Web Site: http://www.tgs.com.ar/ ============= B E R M U D A ============= FOSTER WHEELER: Recalculates Interest on New Notes to 10.422% ------------------------------------------------------------- Foster Wheeler Ltd. (OTCBB: FWLRF) announced Wednesday the recalculated interest rate applicable to the Fixed Rate Senior Secured Notes due 2011, Series A (the "New Notes"), to be issued by Foster Wheeler LLC in the equity-for-debt exchange offer that the company launched on June 11, 2004. If the exchange offer expires as currently scheduled on September 17, 2004, the New Notes will bear interest at a rate of 10.422% per annum. This rate is equal to 6.65% plus the yield on U.S. Treasury notes having a remaining maturity equal to the maturity of the New Notes determined as of 2:00 p.m., New York City time, on the second business day prior to the expiration of the exchange offer. The terms of the New Notes are described in the registration statement on Form S-4 (File No. 333-107054) relating to the exchange offer. The interest rate set forth above supersedes the rates previously announced. A copy of the prospectus relating to the New Notes and other related documents may be obtained from the information agent. The information agent for the exchange offer and consent solicitation is: Georgeson Shareholder Communications Inc. 17 State Street, 10th Floor, New York, New York 10014. Tel: 212-440-9800(bankers and brokers) 800-891-3214(all other security holders) 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 Tel: 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. 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, upstream oil and gas, LNG and gas-to-liquids, petrochemicals, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA. CONTACT: Media: Ms. Maureen Bingert Tel: 908-730-4444 or Investors: Mr. John Doyle Tel: 908-730-4270 or Other Inquiries: Tel: 908-730-4000 Web Site: http://www.fwc.com/ GLOBAL CROSSING: Provides Telecom Services to CIMSA --------------------------------------------------- Global Crossing (NASDAQ: GLBCE) announced Wednesday a service agreement signed in February to provide managed IP VPN services and International Private Line (IPL) to Centro Interaccion Multimedia S.A. (C.I.M.S.A.), a growing Argentine offshore contact center company that provides high-quality contact center services to international clients. As a result of the agreement, Global Crossing Managed IP VPN Service will provide data transmission for C.I.M.S.A's customer support software applications over the company's seamless, fiber-optic network. This will provide C.I.M.S.A. the performance and security of a private network while capitalizing on the flexibility, scalability and economics only available in a shared network environment. Similarly, Global Crossing's IPL service will carry voice traffic between C.I.M.S.A's contact centers in Cordoba, Argentina, and customers in the United States in a reliable and efficient manner. "Our clients require fast and accurate customer support and services," said Humberto Sahade, executive director for C.I.M.S.A. "We were looking for a first-class IP VPN IPL and service provider to meet the demands of our clients, and we are pleased to see that the reach and capabilities of Global Crossing's worldwide network have enabled us to better serve our customers' international requirements." "Enterprises like C.I.M.S.A. require the highest level of reliability, and Global Crossing delivers it," said Pablo Mlikota, Global Crossing's vice president of enterprise sales for Latin America, Caribbean and the southeastern United States. "We met and exceeded C.I.M.S.A's expectations in terms of delivery timeframe, competitive price and service quality." C.I.M.S.A. will also benefit from Global Crossing's Managed Services, which provide full end-to-end turnkey service lifecycle support for IP VPN, including 24-hour customer service, engineering and design, equipment procurement, installation and maintenance and network monitoring. Global Crossing's Managed Services build upon Global Crossing's success in supporting more than 10,000 routers worldwide. Global Crossing IP VPN service is a feature-rich IP VPN solution that provides enterprises and carriers worldwide with three classes of service and multiple access options in a highly secure platform that provides a roadmap for the convergence of voice, video, Internet and data traffic onto a single connection. "This agreement is another example of Global Crossing's leadership in delivering innovative network services that support a truly unique customer experience," said Mlikota. "We are excited to count C.I.M.S.A. among our customers as we continue to expand our business in Latin America." Available in more than 500 cities and 50 countries, Global Crossing provides one of the most powerful and versatile IP VPN solutions available today, providing true global reach, wider connectivity, multiple access and billing options, and supporting integrated corporate data, VoIP, IP Video and Internet access, all over the same connection. Global Crossing provides telecommunications solutions over the world's first integrated global IP-based network. Its core network connects more than 300 cities and 30 countries worldwide, and delivers services to more than 500 major cities, 50 countries and 6 continents around the globe. The company's global sales and support model matches the network footprint and, like the network, delivers a consistent customer experience worldwide. Global Crossing IP services are global in scale, linking the world's enterprises, governments and carriers with customers, employees and partners worldwide in a secure environment that is ideally suited for IP-based business applications, allowing e- commerce to thrive. The company offers a full range of managed data and voice products including Global Crossing IP VPN Service, Global Crossing Managed Services and Global Crossing VoIP services, to more than 40 percent of the Fortune 500, as well as 700 carriers, mobile operators and ISPs. CONTACT: Press Contacts: Ms. Fernanda Marques Tel: + 55 21-3820-4712 e-mail: LatAmPR@globalcrossing.com Ms. Kirstie Phimister Europe Tel: + 44 (0) 1256-734063 e-mail: EuropePR@globalcrossing.com Analysts/Investors Contact: Mr. Mitch Burd Tel: +1 800-836-0342 e-mail: glbc@globalcrossing.com Web Site: http://www.globalcrossing.com/ C.I.M.S.A.: Ms. Mariana Caviglione Tel: + 54 11-4775-8181 e-mail: mcaviglione@apexamerica.com NORTHERN OFFSHORE: Restructuring Plan Gets Bondholders' OK ---------------------------------------------------------- Mike Morrison and Philip Wallace, the joint provisional liquidators (the "JPLs") of Northern Offshore Limited ("NOL"), have announced that NOL has entered into an agreement with a significant majority of the holders of NOL's outstanding US dollar notes and Norwegian kroner bonds, which is expected to be sufficient to achieve a financial restructuring of the company. The agreement follows a review by the JPLs of the restructuring options available to the company following their appointment by the Supreme Court of Bermuda on 13 July 2004. Under the terms of the restructuring agreement, NOL's bondholders will receive at least 98% of the post-restructuring share capital of the Northern Offshore group in settlement of their debts. The agreement provides for a number of ways of achieving this, including through the implementation of a scheme of arrangement in Bermuda. The bondholders who have signed up to the agreement have agreed to vote in favour of a restructuring on these terms at the relevant meetings of NOL's creditors and bondholders which will be held in due course to implement the restructuring. Prior to the appointment of the provisional liquidators, the informal committee of NOL's bondholders (the "Committee") were prepared to support a consensual restructuring of the company which allowed shareholders to retain 5% of the company's share capital. However, no acceptance of this was forthcoming. Following the JPLs' appointment, the Committee indicated to the JPLs that they would still be prepared to support a restructuring which would provide for the listing on the Oslo Stock Exchange being maintained and for 2% of the post- restructuring share capital being retained by NOL's existing shareholders. However, approval at a shareholders' meeting of NOL would be necessary to implement such a restructuring. The JPLs wrote to NOL's largest shareholder, World Shipholding Ltd ("World"), to see if it wished to accept this offer, but to date have received no reply. While the agreement reached with a significant majority of the bondholders does allow for the possibility of existing shareholders retaining a 2% interest in the company, the lack of any positive response from World has led the JPLs to conclude that this form of restructuring would be unlikely to receive the appropriate level of support from shareholders. Consequently the JPLs intend to propose an alternative restructuring whereby bondholders will own 100% of the post-restructuring share capital in the Northern Offshore group. Under such a proposal it will not be possible to maintain NOL's current listing. Mike Morrison said: "We are delighted to have already reached agreement with a majority of the company's bondholders, and to provide some clarity to creditors, suppliers and customers for the company's restructuring going forward. Meanwhile, the business is continuing as normal." Mr Morrison continued: "Given that the company has entered into a non-consensual insolvency process, the possibility for shareholders to receive anything at all is most unusual. In the absence of support from the main shareholder, World Shipholding Limited, we cannot justify spending further time and cost pursuing a consensual deal that leaves 2% for shareholders." It is currently expected that the terms of the scheme of arrangement will be finalized and sent to bondholders in October. Bondholders who wish to receive more information about the restructuring agreement should contact the London office of Bingham McCutchen LLP, the law firm acting for the Committee. CONTACT: Northern Offshore Limited (in provisional liquidation) c/o KPMG Financial Advisory Services Limited Crown House 4 Par-la-Ville Road Hamilton HM 08 Bermuda Tel: +1 441 294 2653 Fax: +1 441 295 8280 Mr. Adrian Bourne KPMG in London Tel: (+ 44 (0) 207 694 3018) Mr. Chris Giddens KPMG Financial Advisory Services Limited in Bermuda Tel: (+ (1) 441 294 2653) Ms. Judith Dow KPMG Corporate Communications (London) Tel: 0207 694 8584 Mobile: 07786 197 718 Email: Judith.dow@kpmg.co.uk KPMG Press Office: 0207 694 8773 Mr. Phil Knott Mr. James Terry Bingham McCutchen LLP Tel: + 44 (0)20 7661 5300 =========== B R A Z I L =========== LIGHT: Restructures $650M Debt With Creditors --------------------------------------------- Brazilian power distributor Light Servicos de Eletricidade (E.LSE), a unit of Electricte de France (EdF), struck an accord with creditors to restructure some US$650 million in debt, reports financial daily Valor Economico. About two-thirds of the debt would have matured at the end of the year, but Light creditors have agreed to extend the debt for four-and-a-half years. With the agreement, Light moves a step closer to becoming eligible for about US$200 million in financing under a government program being administered by Brazil's state-run development bank, the BNDES. EdF's chief executive in Brazil, Eduardo Vieira, told Valor that Light will meet other requirements and apply for the financing before the end of the month. Light operates in 31 municipalities in Rio de Janeiro state, including the capital city. CONTACT: LIGHT SERVICOS DE ELETRICIDADE S.A. Avenida Marechal Floriano, 168 20080-002 Rio de Janeiro, Brazil Phone: +55-21-2211-2794 Fax: +55-21-2211-2993 Home Page: http://www.lightrio.com.br Contact: Bo Gosta Kallstrand, Chairman Michel Gaillard, President and CEO Joel Nicolas, Executive Director, Operation Paulo Roberto Ribeiro Pinto, Executive Director, Investor Relations and CFO ========= C H I L E ========= ENAMI: Back in the Black With $9M Profits ----------------------------------------- The negative impact of Enami's US$454-million debt didn't prevent the Chilean state mining company from posting profits in the first six months of 2004. According to El Mercurio, Enami reported profits of US$9 million during the period, reversing losses of US$19 million in the first half of 2003. The company attributed good results to the rising cathode copper future prices and lower production costs. Operating profits increased to US$18.39 million in the first half of the year against US$4.56 million in the same year-ago period, while non-operating losses narrowed to US$9.27 million from US$23.82 million. The Chilean Senate was due to vote on Sep. 15 a bill, which would pave the way for the transfer of Enami's Ventanas Smelter to state company Codelco. But due to undisclosed circumstances, the voting was postponed to a yet-to-be determined date. A Ventanas transfer would shave as much as US$30 million off Enami's US$160 million debt from unpaid taxes. CONTACT: ENAMI (Empresa Nacional de Mineria) MacIver 459, Santiago, Chile Phone: 637 52 78 637 50 00 Fax: 637 54 52 Email: webmaster@enami.cl Home Page: www.enami.cl/ Contact: Jorge Rodriguez Grossi, President =============== C O L O M B I A =============== TERMOEMCALI: S&P Cuts Ratings To `D' ------------------------------------ Standard & Poor's Rating Services lowered its rating on TermoEmcali Funding Corp.'s US$165 million senior secured notes to 'D' from 'CC'. The rating action follows the Colombian company's failure to make the Sept. 15, 2004, debt service payment of about $5.4 million on its 10.125% senior notes due 2014. In November 2003, TermoEmcali and Empresas Municipales de Cali (Emcali), the project's offtaker, signed a memorandum of understanding (MOU), while pursuing an orderly restructuring of the obligations under the power purchase agreement (PPA). The MOU expired on June 30, 2004, and although the parties have discussed extending it, Emcali has indicated it would not continue payments under the MOU until an Energy Purchase Agreement, substituting the former PPA, is signed. In light of the suspension of payments by Emcali under both the PPA and the MOU, TermoEmcali did not have adequate liquidity to make the entire debt service payment scheduled for Sept. 15, 2004. TermoEmcali owns a 234-MW, combined-cycle, natural gas-fired power generation facility in Colombia that sells capacity and energy to Emcali under a PPA. Emcali is a Colombian municipal utility that provides diversified services to two million inhabitants in and around Santiago de Cali. The owners of the project company include Emcali, subsidiaries of InterGen (InterGen is owned by subsidiaries of Bechtel Enterprises and Royal Dutch Shell), Inversiones INCA, and Corporacion Financiera del Pacifico (local Cali business groups). ANALYST: Federico Mora, Mexico City (52) 55-5081-4436 Fabiola Ortiz, Mexico City (52) 55-5081-4449 ============= J A M A I C A ============= JPSCo: Mirant Settles Issues on Technical Loan Breach ----------------------------------------------------- In February 2004, Jamaica Public Service Company Limited, in which bankrupt U.S.-based Mirant Corporation has an 80% ownership interest, entered into a $30 million, 7-year amortizing credit facility ("2004 RBTT credit facility") with RBTT Merchant Bank Limited. The proceeds from this facility were used to replace the construction financing of the Bogue construction project completed in 2003. The loans are non- recourse to Mirant Corporation. The loan agreements contain a number of covenants, including: (i) restrictions on change of control; (ii) restrictions on the issuance or purchase of borrower's shares; (iii) limitations on transactions with affiliates; (iv) limitations on the incurrence of new debt; and (v) limitations on dividends. Jamaica Public Service Company Limited is also party to a separate $30 million, 7-year amortizing credit facility with RBTT Merchant Bank Limited entered into in 2003 ("2003 RBTT credit facility") and a $45 million, 12-year amortizing credit facility with International Finance Corporation ("IFC credit facility"). In connection with the 2004 RBTT, 2003 RBTT and IFC credit facilities, Jamaica Public Service Company Limited was required to obtain and register a title related to property on which the 120MW facility at Bogue is situated to facilitate registration of the lenders' mortgages. At December 31, 2003, Jamaica Public Service Company Limited had secured title and was actively working with the lender's local attorneys to register the mortgages, but had not finalized the registration at that time, which represented a breach of the IFC credit facility and a potential breach of the 2004 RBTT and 2003 RBTT credit facilities. As a result, the Company included amounts outstanding under the 2003 RBTT and IFC credit facilities in the current portion of long-term debt on its condensed consolidated balance sheets at December 31, 2003. In June 2004, the registration of the mortgage was finalized and the amounts outstanding under the 2004 RBTT, 2003 RBTT and IFC credit facilities were reclassified to long-term debt on its condensed consolidated balance sheets at June 30, 2004. =========== M E X I C O =========== CYDSA: Shareholders OK $167M Capital Hike ----------------------------------------- Shareholders of Mexican chemicals and fibers company Cydsa SA (CYDSASA.MX) approved a US$167-million capital increase via new shares, reports Reuters. The capital increase, which will allow the company to reduce its debt to around US$200 million, is expected to be completed before the end of the year, Cydsa chairman Tomas Gonzalez said. Cydsa reported debt of US$380.6 million at end June. CONTACTS: CYDSA, S.A. de C.V. (BMV: CYDSASA) Ave. Ricardo Margain Zozaya # 565 Parque Corporativo Santa Engracia, Edificio B, 66267 Garza Garc�a, Nuevo Leon Mexico Mr. Oscar Casas Kirchner Financing Manager Direct Phone: (52) (81) 81-52-46-04 Fax: (52) (81) 81-52-48-13 E-mail: ocasas@cydsa.com Mr. Alberto Balderas Calderon Administrative Information Manager Direct Phone:(52) (81) 81-52-46-08 Fax: (52) (81) 81-52-48-13 E-mail: abalderas@cydsa.com Web Site: www.cydsa.com EMPRESAS ICA: Unit Wins $684M Refinery Overhaul Contract -------------------------------------------------------- ICA Fluor, the industrial engineering company jointly owned by Mexico's Empresas ICA Sociedad Controladora (NYSE: ICA) and Fluor Corporation (NYSE: FLR), was awarded a US$684 million refinery upgrade project by state oil monopoly Pemex. The contract, according to Reuters, is part of a US$1.3-billion overhaul of the Minatitlan oil refinery in Mexico's coastal Veracruz state, the fifth out of the country's six refineries to be overhauled in the past few years. ICA (ICA.MX: Quote, Profile, Research) (ICA.N: Quote, Profile, Research) is Mexico's biggest construction company and Fluor (FLR.N: Quote, Profile, Research) is a California-based engineering and construction firm. CONTACT: Empresas ICA Sociedad Controladora SA de CV Mineria No. 145, Edificio Central 11800 Mexico, D.F., Phone: (212) 688-6840 Email: jose.guerrero@ica.com.mx Web Site: http://www.ica.com.mx/ GRUPO POSADAS: To Issue $150M Senior Notes Due 2011 --------------------------------------------------- Mexican hotels operator Grupo Posadas SA (POSADAS.MX) informed the local stock exchange Wednesday of its plans to issue approximately US$150 million senior notes due 2011. The notes, which are to be 100% guaranteed by its subsidiaries, won't be registered under the Securities Act of 1933. Proceeds of the operation will be used to pay existing debt. Posadas reported debt of US$331.5 million at the end of the second quarter, with an average life of 2.5 years, which it said it was hoping to extend. HOST MARRIOTT: S&P Rates Amended $575M Facility B+ -------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' rating to the $575 million amended and restated credit facility of hotel owner Host Marriott Corp. At the same time, Standard & Poor's affirmed its other ratings, including the 'B+' corporate credit rating on the company. The outlook is stable. Approximately $5.6 billion in debt (including approximately $475 million of convertible quarterly income preferred securities) was outstanding on June 18, 2004. The amended and restated credit facility will replace the company's existing $300 million bank credit facility due in June 2005. Under the amendment, the facility will mature in September 2008 but can be extended an additional year under certain conditions. The new credit facility has a unique structure composed of two parts: a revolving facility A and a revolving facility B. Maximum borrowings under the revolving facility A may vary from $0 to $385 million as determined by leverage as defined in the loan agreement. Revolving facility A has similar covenant levels to the existing credit facility, while the covenants governing revolving facility B are more relaxed. For instance, maximum leverage at the end of 2004 for revolving facility A is 7.0x, whereas it is 7.5x for revolving facility B. Based on this covenant differential, it is possible that there would be no availability under revolving facility A, but Host could continue to draw on revolving facility B. In return for the higher risk, revolving facility B borrowings will be priced at a 50 basis point premium to revolving facility A borrowings. Both the revolving credit facilities A and B are initially secured by a perfected first-priority security interest (on an equal and ratable basis with amounts outstanding under the senior note indenture) in all capital stock, partnership interests, and other equity interests owned by Host Marriott and each guarantor (with certain limitations). Guarantors consist of each direct and indirect wholly owned subsidiary of Host with certain limitations on foreign subsidiaries. "The ratings on Host Marriott reflect the company's substantial debt levels as well as credit measures that are somewhat weak for the ratings," said Standard & Poor's credit analyst Sherry Cai. However, Standard & Poor's expects an improvement in Host's credit measures to result from a healthier operating environment and management's focus on improving the balance sheet. The ratings also consider the high quality of the company's hotels, the geographic diversity of its portfolio, and its experienced management team. Moreover, Host's good liquidity position and historically good access to both debt and equity capital markets are viewed favorably. The company owns 112 luxury and upscale, full-service hotels, predominantly in urban, airport, and resort locations in the U.S., Canada, and Mexico. ===================== P U E R T O R I C O ===================== CENTENNIAL COMMUNICATIONS: To Elect Directors at Sept. 30 AM ------------------------------------------------------------ The 2004 Annual Meeting of Stockholders of Centennial Communications Corp. will be held at The Waldorf-Astoria Hotel, 301 Park Avenue, New York, NY 10022, on Thursday, September 30, 2004, at 11:00 a.m., local time. The purposes of the meeting are: 1. To elect nine directors to serve until the next Annual Meeting of Stockholders and thereafter until their successors are elected and qualified. 2. To ratify the appointment of Deloitte & Touche LLP as independent auditors for the Company for the fiscal year ending May 31, 2005. 3. To transact such other business as may properly come before the meeting. The Board of Directors has set August 27, 2004 as the record date for the Annual Meeting. This means that owners of common stock at the close of business on that date are entitled to receive notice of and vote at the Annual Meeting. CONTACT: Centennial Communications Corp. 3349 Route 138 Wall, New Jersey 07719 ================= V E N E Z U E L A ================= CANTV: Works with Alcatel to Develop Networks --------------------------------------------- Alcatel and CANTV, the principal operator in Venezuela and a subsidiary of Verizon, have signed a strategic 5-year agreement to foster the development of broadband telecommunications networks and applications. In accordance with this agreement, Alcatel will contribute its vast experience in digital subscriber line (DSL) and digital loop carrier (DLC) access technologies and in SDH and DWDM transmission. Alcatel also contributes the expertise to enable operators to incorporate the latest technological breakthroughs into their networks, and to benefit from economies of scale, in order to deploy a modern end-to-end network. "This alliance with Alcatel is an important step forward in our global strategy, since it gives us access to Alcatel's industry leading technologies, and allows us to benefit from their international experience as we incorporate new products and services into our network", declared Miguel G�nova, Network General Manager of CANTV. The collaboration between CANTV and Alcatel, which began with the supply of 100,000 DSL lines, will also allow both companies to analyze the most suitable evolution for the telecommunications network in Venezuela. "With this agreement we have the chance to share a common vision of the network and business. This strategic alliance will enable us to understand CANTV clients' needs and to determine which is the best technology to provide the value-added services required by the residential and corporate clients", stated Michel Rahier, chief operating officer of Alcatel's fixed communications activities. "In order to achieve this goal, we offer CANTV our solutions catalog and our knowledge of the sectors where we stand out on a global scale, such as optical transmission solutions for data networks as well as multiservice access and broadband DSL solutions", added Rahier. Alcatel is the leading DSL supplier with a global cumulative market share of 37.7 percent and a total of more than 49 million lines shipped. CANTV Corporation is a leading telecommunications service provider in Venezuela with almost 2.9 million access lines in service, more than 2.8 million cellular subscribers and more than 282,000 Internet access subscribers by 30 June 2004. CANTV's strategic shareholder is Verizon Communications Inc., with a 28.5%, the Venezuelan Government holding a 6.6% (class B shares), employees and retirees of the Company holding a 9% (class C shares) and Telefonica de Espana S.A. holding a 6.9% (class A shares). The rest of the share capital (49.0%) is in hands of different shareholders in Venezuela and other countries. Alcatel provides end-to-end communications solutions, enabling carriers, service providers and enterprises to deliver content to any type of user, anywhere in the world. Leveraging its long- term leadership in telecommunications network equipment as well as its expertise in applications and network services, Alcatel enables its customers to focus on optimizing their service offerings and revenue streams in a broadband environment. With sales of Euro 12.5 billion in 2003, Alcatel operates in more than 130 countries. CONTACT: CA National Telefonos de Venezuela Edificio CANTV, Primer Piso Avenida Libertador Caracas, Phone: (800) 269-2377 Web Site: http://www.cantv.com.ve/ PDVSA: Former Workers Claim They Are Owed $1.3B ----------------------------------------------- Venezuelan state oil company Petroleos de Venezuela, S.A. (PDVSA) owes more than US$1.3 billion to oil workers it dismissed during a Dec 2002 - Feb 2003 strike, reveals El Universal. Around 18,000 former PDVSA workers have reportedly lodged a legal action against the oil giant. Venezuelan Labor Minister, Maria Cristina Iglesias, has been asked to refrain from taking part in the said action. Horacio Medina, president of Unapetrol, a labor union association comprised of executives and managers who were dismissed from PDVSA, accused Iglesias of acting as "a political sheriff of the regime, rather than as an official in charge of defending the interests of workers." He insisted that Iglesias continues to violate international labor agreements, as she has disregarded the resolutions of the International Labor Organization (ILO) intended to protect the former PDVSA workers. A delegation of the ILO is to visit Venezuela on October 12-16 to "verify violations against trade union freedom," disclosed Medina. *********** 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. 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