/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040930.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 Thursday, September 30, 2004, Vol. 5, Issue 194 Headlines A R G E N T I N A AUTOSISTEMAS SGA: Asset Liquidation Process Begins BALUARTE S.A.: Seeks Court's Reorganization Approval CAR & MEL: Court Approves Creditor's Bankruptcy Motion CLALCIN S.A.: Creditor's Bankruptcy Petition Gets Court OK CLUB DE GIMNASIA: Reorganization Authorized; Process Begins CRESUD: Plans to Issue $30M Debt DECANO INDUSTRIAL: Court Moves Claims Verification Deadline DISI-NET S.A.: Court-Required Reports Deadlines Set ESTABLECIMIENTOS DON VILLA: Seeks Bankruptcy Protection IRSA: Board Summons Shareholders to Meeting NII HOLDINGS: Nextel Proposes Share Sale In Public Offering PAN AMERICAN ENERGY: Moody's Affirms, Assigns Ratings PROTAMEX S.A.: Court Orders Liquidation SYCON ARGENTINA: Files Petition to Reorganize TELECOM ARGENTINA: Shareholder Meeting Set for Exchange Details B E R M U D A GLOBAL CROSSING: NASDAQ Grants Extension Request B R A Z I L ALCOA ALUMINIO: Fitch Raises Rating Following Sovereign Upgrade ARACRUZ CELULOSE: Foreign Currency Rating Upgraded to BB- CERJ: Anti-Theft Measures Prove Effective; Power Stealing Drops COMPANHIA PETROLIFERA: Fitch Ups FC Rating In Line With Brazil's CSN: Fitch Ups LTFC Rating After Raising Sovereign Rating CST: Sovereign Upgrade Floats Individual Ratings GERDAU ACOMINAS: FC Rating Now In Line With Sovereign Rating MRS LOGISTICA: Fitch Raises Rating Following Sovereign Upgrade RIPASA: Foreign Currency Rating Upgraded to BB- SADIA S.A. Fitch Ups FC Rating In Line With Brazil's SAMARCO: Fitch Ups LTFC Rating After Raising Sovereign Rating SINGER: Extends Tender Offer for Brazil Secured Notes TELEMAR: Fitch Raises Rating Following Sovereign Upgrade * Fitch Upgrades Brazil Sovereign To 'BB-' C O L O M B I A AVIANCA: Restructuring Gets Creditor Support TERMOEMCALI: Default Prompts `D' Rating From Fitch J A M A I C A JPSCo: To Remain Part of Mirant After Chapter 11 Emergence M E X I C O AMERICAN TOWER: Moody's Assigns Caa1 Rating to $300M Sr. Notes TV AZTECA: Report on Controversial Debt Deal Expected End-Oct. VITRO: New Issue Will Not Affect S&P Ratings - - - - - - - - - - ================= A R G E N T I N A ================= AUTOSISTEMAS SGA: Asset Liquidation Process Begins -------------------------------------------------- Autosistemas SGA S.R.L. entered bankruptcy after Judge Carrega of Buenos Aires' civil and commercial tribunal court no. 4 approved a bankruptcy motion filed by Robert Bosch Argentina S.A., reports La Nacion. The Company's failure to pay US$13,631.02 in debt prompted the creditor to file the petition. Working with Dr. Juarez, the city's clerk no. 7, the court assigned Ms. Silvia Ferrandina as trustee for the bankruptcy process. The trustee's duties include the authentication of the Company's debts and the preparation of the individual and general reports. Creditors are required to present their proofs of claims to the trustee before December 1, 2004. The Company's assets will be liquidated at the end of the bankruptcy process to repay creditors. Payments will be based on the results of the verification process. CONTACT: Autosistemas SGA S.R.L. Cabrera 3815 Buenos Aires Ms. Silvia Ferrandina, Trustee Asuncion 4642 Buenos Aires BALUARTE S.A.: Seeks Court's Reorganization Approval ---------------------------------------------------- Judge Fernandez, serving for court no. 19 of Buenos Aires' civil and commercial tribunal, is currently reviewing the merits of the reorganization petition filed by local company Baluarte S.A., reports La Nacion. The reorganization petition, if granted by the court, will allow the Company to negotiate a settlement with its creditors in order to avoid a straight liquidation. Dr. Durao, clerk no. 37, assists the court on this case. CONTACT: Baluarte S.A. Salta 1275 Buenos Aires CAR & MEL: Court Approves Creditor's Bankruptcy Motion ------------------------------------------------------ Judge Dieuzeide of Buenos Aires' civil and commercial tribunal court no. 1 declared Car & Mel S.R.L. bankrupt, says La Nacion. The ruling comes in approval of the bankruptcy petition filed by the Company's creditor, Banca Nazionale del Lavoro S.A., for nonpayment of US$17,748.30 in debt. The Company's trustee, Mr. Daniel Macri, will examine and authenticate creditors' claims until November 23, 2004. This is done to determine the nature and amount of the Company's debts. Creditors must have their claims authenticated by the trustee by the said date in order to qualify for the payments that will be made after the Company's assets are liquidated. Clerk no. 1, Dr. Fernandez Garello, assists the court on the case that which will conclude with the liquidation of the Company's assets. CONTACT: Car & Mel S.R.L. Lope de Vega 3215 Buenos Aires Mr. Daniel Macri, Trustee Simbron 5742 Buenos Aires CLALCIN S.A.: Creditor's Bankruptcy Petition Gets Court OK ---------------------------------------------------------- Banco R¡o de la Plata S.A. successfully sought for the bankruptcy of Clalcin S.A. after Judge Gutierrez Cabello of Buenos Aires' civil and commercial tribunal court no. 7 declared the Company "Quiebra," reports La Nacion. Based on the ruling, the data processing equipment supplier will now start the bankruptcy process with Mr. Carlos Carrescia as trustee. Creditors of the Company must submit their proofs of claim to the trustee before December 6, 2004 for authentication. Failure to do so will mean a disqualification from the payments that will be made after the Company's assets are liquidated. The creditor sought to have the Company declared bankrupt after the it failed to pay debts amounting to US$3,368.26. Dr. O'Reilly, clerk no. 13, assists the court on the case, which will culminate in the liquidation of all of its assets. CONTACT: Clalcin S.A. Avenida de los Incas 3732 Buenos Aires Mr. Carlos Carrescia, Trustee Tucuman 1621 Buenos Aires CLUB DE GIMNASIA: Reorganization Authorized; Process Begins ----------------------------------------------------------- Judge Vassallo, working for court no. 5 of Buenos Aires' civil and commercial tribunal, approved the "Concurso Preventivo" petition filed by Club de Gimnasia y Esgrima, reports La Nacion. The sports company will undergo a reorganization process under the supervision of accounting firm "Estudio Fern ndez Rodr¡guez y Asociados." The firm will verify creditors' proofs of claim until December 20, 2004. Verifications are done to ascertain the nature and amount of the Company's debts. The firm will also prepare the individual and general reports on the case. Clerk no. 10, Dr. Djivaris, assists the court on the case. CONTACT: Club de Gimnasia y Esgrima Bartolome Mitre 1142 Buenos Aires Estudio Fernandez Rodr¡guez y Asociados - Trustee Sarmiento 1452 Buenos Aires CRESUD: Plans to Issue $30M Debt -------------------------------- Argentine agricultural producer Cresud SACIF (CRESY) informed the Buenos Aires bourse of its intention to issue up to US$30 million worth of new bonds. According to Dow Jones Newswires, the company will formally propose the bond sale to shareholders on October 22. If approved by shareholders, this would be Cresud's first bond sale since late 2002, when the company issued US$50 million in debt. Proceeds of the planned issue will be used to finance new investment projects over the next five years. CONTACT: Cresud S.A.C.I.F. y A Av. Roque Saenz Pena 832 8th Fl. Buenos Aires Phone: 001-54-1-3287808 DECANO INDUSTRIAL: Court Moves Claims Verification Deadline ----------------------------------------------------------- Court no. 1 of Buenos Aires' civil and commercial tribunal rescheduled key events in the Decano Industrial S.A. insolvency proceedings to these dates: 1. Deadline for the verification of claims - November 17, 2004 2. Submission of Individual Reports - December 30, 2004 3. Submission of General Report - March 11, 2005 4. Informative Assembly - August 25, 2005 Mr. Tito Gargaglione serves as trustee on this case. CONTACT: Mr. Tito Gargaglione, Trustee Medrano 833 Buenos Aires DISI-NET S.A.: Court-Required Reports Deadlines Set --------------------------------------------------- Mr. Luis Maria Guastavino, the trustee assigned to supervise the liquidation of Disi-Net S.A., will submit the validated individual claims for court approval on December 22, 2004. These reports explain the basis for the accepted and rejected claims. He will also submit a general report on March 7, 2005. Infobae reports that court no. 18 of Buenos Aires' civil and commercial tribunal has jurisdiction over this bankruptcy case. Clerk no. 35 assists the court with the proceedings. CONTACT: Mr. Luis Maria Guastavino Nicolas Repetto 1115 Buenos Aires ESTABLECIMIENTOS DON VILLA: Seeks Bankruptcy Protection ------------------------------------------------------- Court no. 7 of Buenos Aires' civil and commercial tribunal, under Judge Gutierrez Cabello, is now analyzing whether to grant Establecimientos Don Villa S.A. approval for its voluntary bankruptcy motion. Local daily La Nacion recalls that the company filed the petition following cessation of debt payments since July 12, 2004. The company reports assets valued at US$77,738.68 and liabilities totaling US$440,439.93. Clerk of court Dr. O'reilly assists on this case. CONTACT: Establecimientos Don Villa S.A. Avenida Belgrano 1235 Buenos Aires IRSA: Board Summons Shareholders to Meeting ------------------------------------------- The board of directors of Argentina real estate company IRSA Inversiones Y Representaciones Sociedad Anonima (NYSE: IRS), (BCBA: IRSA) scheduled an ordinary and extraordinary shareholders meeting for October 22, 2004 at 9:45 hrs. at its headquarters located in Bolivar 108, 1§ floor, Buenos Aires city. The shareholders meeting will consider, among other topics, a report regarding the constitution of an Audit Committee; the steps taken by the Board of Directors as substitute responsible, in relation to the shareholders personal property tax; and a report over the execution of an agreement for the exchange of corporate services. CONTACT: Mr. Alejandro Elsztain - Director Mr. Gabriel Blasi - CFO Tel: +(5411) 4323 7449 e-mail: finanzas@irsa.com.ar Web Site: http://www.irsa.com.ar/ NII HOLDINGS: Nextel Proposes Share Sale In Public Offering ----------------------------------------------------------- NII Holdings, Inc. (Nasdaq: NIHD - News) announced Tuesday that Nextel Communications, Inc. (Nasdaq: NXTL - News), the owner of approximately 18% of its shares, proposes to sell 6,200,000 NII Holdings' shares in a secondary public offering. Bear, Stearns & Co. Inc. is the sole underwriter in this offering. NII will not receive any proceeds from the offering. The offering is by prospectus only. Prospectuses can be obtained from Bear, Stearns & Co. Inc. at 383 Madison Avenue, New York, NY 10179. The shelf registration statement relating to these securities has been filed with and declared effective by the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. About NII Holdings, Inc. NII Holdings, Inc., a publicly held company based in Reston, Va., is a leading provider of mobile communications for business customers in Latin America. NII Holdings, Inc. has operations in Argentina, Brazil, Mexico and Peru, offering a fully integrated wireless communications tool with digital cellular service, text/numeric paging, wireless Internet access and International Direct Connect(SM), an extension of Direct Connect(SM), a radio feature that allows Nextel subscribers to communicate instantly and across national borders. NII Holdings, Inc. trades on the Nasdaq market under the symbol NIHD. Visit the Company's website at http://www.nii.com. Nextel, the Nextel logo, Nextel Online, Nextel Business Networks and Nextel Direct Connect are trademarks and/or service marks of Nextel Communications, Inc. CONTACTS: Investor Relations: Tim Perrott (703) 390-5113 tim.perrott@nii.com Media Relations: Claudia E. Restrepo (786) 251-7020 claudia.restrepo@nii.com PAN AMERICAN ENERGY: Moody's Affirms, Assigns Ratings ----------------------------------------------------- Moody's Investors Service affirmed the Ba2 global local currency issuer rating and B1 foreign currency issuer rating of Pan American Energy LLC (PAE). At the same time, the ratings agency assigned a B1 foreign currency rating to the proposed issuance of medium-term notes by Pan American Energy LLC, Argentine Branch. The notes will be issued under the company's US$1 billion medium-term note program. The notes issued under the program are guaranteed by Pan American Energy LLC. The outlook for the ratings is stable. Moody's said PAE's Ba2 global local currency rating is supported by the company's substantial oil and gas reserves and strong market share in Argentina; its position as a net exporter of oil and gas; its fairly long reserve life on proven developed reserves and favorable oil production growth outlook; its efficient cost structure; the benefits derived from its relationship with its majority owner, BP plc (rated Aa1); and its appropriately conservative financial leverage. However, the Ba2 rating also considers PAE's geographic concentration; its small contribution to BP's worldwide hydrocarbon reserves and production; economic instability and political risk in Argentina and Bolivia, including the risk of government interference through price controls and taxation, with negative implications for natural gas reserve replacement; PAE's high proportion of proved undeveloped reserves; recent increases in and the potential for continued upward pressure on its full-cycle costs; and the company's significant near-term debt maturities. PAE's B1 foreign currency rating reflects all of the factors discussed above, as well as PAE's strong track record in servicing its foreign currency debt obligations during the Argentine financial crisis, its ability as an oil and gas company operating in Argentina to keep up to 70% of its export proceeds offshore, and the fact that it has a strong majority owner that operates outside of Argentina. PAE's B1 foreign currency rating takes into account Argentina's Caa1 long-term foreign currency ceiling, which reflects a high degree of foreign currency convertibility and transfer risk. Moody's said its stable outlook for PAE's ratings assumes the company will continue to maintain appropriately conservative financial leverage (below US$2/boe proven developed reserves) as it seeks to grow its oil reserves and production. The stable outlook for PAE's foreign currency ratings is consistent with Moody's stable outlook for Argentina's Caa1 sovereign ceiling. PROTAMEX S.A.: Court Orders Liquidation --------------------------------------- Protamex S.A. prepares to wind-up its operations following the bankruptcy pronouncement issued by court no. 22 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 Ms. Marta Estela Acuna as trustee. She will be reviewing creditors' proofs of claims until November 2, 2004. The verified claims will be the basis for the individual reports to be presented for court approval on December 15, 2004. Afterwards, the trustee will also submit a general report on February 28, 2004. Clerk no. 43 assists the court on this case, which will end with the disposal of the company's assets to cover its liabilities. CONTACT: Ms. Marta Estela Acuna, Trustee Combate de los Pozos 129 Buenos Aires SYCON ARGENTINA: Files Petition to Reorganize --------------------------------------------- Sycon Argentina S.A. filed a "Concurso Preventivo" motion, reports La Nacion. The Company is seeking to reorganize its finances following cessation of debt payments since April this year. The Company's case is pending before court no. 15 of Buenos Aires' civil and commercial tribunal, under judge Di Noto. Dr. Vitale, clerk no. 30, assists the court in the proceedings. Sycon is a gas network installation and maintenance firm operating in the city of Buenos Aires. CONTACT: Sycon Argentina S.A. Cosquin 4876 Buenos Aires TELECOM ARGENTINA: Shareholder Meeting Set for Exchange Details --------------------------------------------------------------- The board of Telecom Argentina (NYSE: TEO) elected to summon shareholders to an Ordinary General Meeting scheduled for November 2, 2004 to deal with the issuance of Notes (" Obligaciones Negociables ") to be delivered in exchanged of currently existing debt, in the context to the debt restructuring process. As reported earlier, the controlled subsidiary Telecom Personal S.A. launched a proposal to restructure its debt. Telecom Argentina, as creditor to Telecom Personal for an amount of ARS78,209,225, has had the opportunity to elect one of the three options offered to all creditors (options A, B and C), by which the transaction can be considered under normal and ordinary market conditions. In the meeting held September 24, the Board of Directors of Telecom Argentina, with the participation of the members of the Audit Committee, has ratified the decision of the officers of the Company, in relation to the debt restructuring proposal of Telecom Personal, that have elected Option A denominated in US Dollars. 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 ============= B E R M U D A ============= GLOBAL CROSSING: NASDAQ Grants Extension Request ------------------------------------------------ Global Crossing (NASDAQ: GLBCE) announced Tuesday that the NASDAQ Listing Qualifications Panel granted the company's request for an extension until October 8, 2004 to return to full compliance with NASDAQ listing and Securities Exchange Commission (SEC) filing requirements. As previously announced, Global Crossing expects to return to compliance with SEC filing requirements by Friday, October 8, 2004. 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. CONTACTS: Global Crossing Press Contacts Ms. Becky Yeamans Phone: + 1 973-937-0155 e-mail: PR@globalcrossing.com Ms. Fernanda Marques Phone: + 55 21-3820-4712 e-mail: LatAmPR@globalcrossing.com Ms. Kirstie Phimister Europe Phone: + 44 (0) 1256-734063 e-mail: EuropePR@globalcrossing.com Analysts/Investors Contact Mr. Mitch Burd Phone: +1 800-836-0342 e-mail: glbc@globalcrossing.com Web Site: http://www.globalcrossing.com/ =========== B R A Z I L =========== ALCOA ALUMINIO: Fitch Raises Rating Following Sovereign Upgrade --------------------------------------------------------------- Fitch Ratings upgraded the long-term foreign currency rating of Brazilian company Alcoa Aluminio S.A. to 'BB-' from 'B+'. The outlook on the rating remains Stable. The rating action follows the recent upgrade of the foreign currency rating of the Federative Republic of Brazil to 'BB-' from 'B+'. ARACRUZ CELULOSE: Foreign Currency Rating Upgraded to BB- --------------------------------------------------------- Fitch Ratings has upgraded the long-term foreign currency rating of Brazilian company Aracruz Celulose S.A. to 'BB-' from 'B+'. The outlook on the rating remains Stable. The rating action follows the recent upgrade of the foreign currency rating of the Federative Republic of Brazil to 'BB-' from 'B+'. CERJ: Anti-Theft Measures Prove Effective; Power Stealing Drops --------------------------------------------------------------- Cerj, Rio de Janiero's state power distributor, expects to recover 15 million reals in revenue for each percentage point reduction in power theft with the recent upgrading of its power distribution system. Business News Americas says the company has spent $40 million in new equipment in its fight against power pilferage. The upgrade includes raising power distribution cables 10 meters above ground to make it less accessible for illegal tapping. Public lighting systems have also been reconfigured to discourage robbers. The report adds that power theft in the cities of Duque de Caxias, Sao Goncalo, Mage and Itaborai fell from 53 percent to 9 percent after the system was installed. COMPANHIA PETROLIFERA: Fitch Ups FC Rating In Line With Brazil's ---------------------------------------------------------------- Fitch Ratings has upgraded the long-term foreign currency rating of Brazilian company Companhia Petrolifera Marlim to 'BB-' from 'B+'. The outlook on the rating remains Stable. The rating action follows the recent upgrade of the foreign currency rating of the Federative Republic of Brazil to 'BB-' from 'B+'. CSN: Fitch Ups LTFC Rating After Raising Sovereign Rating --------------------------------------------------------- Fitch Ratings has upgraded the long-term foreign currency rating of Brazilian company Companhia Siderurgica Nacional S.A. (CSN) to 'BB-' from 'B+'. The outlook on the rating remains Stable. The rating action follows the recent upgrade of the foreign currency rating of the Federative Republic of Brazil to 'BB-' from 'B+'. CST: Sovereign Upgrade Floats Individual Ratings ------------------------------------------------ Fitch Ratings has upgraded the long-term foreign currency rating of Brazilian company Companhia Siderurgica de Turbarao S.A. (CST) to 'BB-' from 'B+'. The outlook on the rating remains Stable. The rating action follows the recent upgrade of the foreign currency rating of the Federative Republic of Brazil to 'BB-' from 'B+'. GERDAU ACOMINAS: FC Rating Now In Line With Sovereign Rating ------------------------------------------------------------ Fitch Ratings has upgraded the long-term foreign currency rating of Brazilian company Gerdau Acominas S.A. to 'BB-' from 'B+'. The outlook on the rating remains Stable. The rating action follows the recent upgrade of the foreign currency rating of the Federative Republic of Brazil to 'BB-' from 'B+'. MRS LOGISTICA: Fitch Raises Rating Following Sovereign Upgrade -------------------------------------------------------------- Fitch Ratings upgraded the long-term foreign currency rating of Brazilian company MRS Logistica S.A. (MRS) to 'BB-' from 'B+'. The outlook on the rating remains Stable. The rating action follows the recent upgrade of the foreign currency rating of the Federative Republic of Brazil to 'BB-' from 'B+'. RIPASA: Foreign Currency Rating Upgraded to BB- ----------------------------------------------- Fitch Ratings has upgraded the long-term foreign currency rating of Brazilian company Ripasa Celulose e Papel S.A. to 'BB-' from 'B+'. The outlook on the rating remains Stable. The rating action follows the recent upgrade of the foreign currency rating of the Federative Republic of Brazil to 'BB-' from 'B+'. SADIA S.A. Fitch Ups FC Rating In Line With Brazil's ---------------------------------------------------- Fitch Ratings has upgraded the long-term foreign currency rating of Brazilian company Sadia S.A. to 'BB-' from 'B+'. The outlook on the rating remains Stable. The rating action follows the recent upgrade of the foreign currency rating of the Federative Republic of Brazil to 'BB-' from 'B+'. SAMARCO: Fitch Ups LTFC Rating After Raising Sovereign Rating ------------------------------------------------------------- Fitch Ratings has upgraded the long-term foreign currency rating of Brazilian company Samarco Mineracao S.A. (Samarco) to 'BB-' from 'B+'. The outlook on the rating remains Stable. The rating action follows the recent upgrade of the foreign currency rating of the Federative Republic of Brazil to 'BB-' from 'B+'. SINGER: Extends Tender Offer for Brazil Secured Notes ----------------------------------------------------- Singer N.V. (Symbol: SNGR) -- Singer N.V. ("Singer" or the "Company") announced Tuesday that Brazil Financing Ltd. ("BFL"), its direct, wholly-owned subsidiary is extending its tender offer for the 10% Series A Secured Notes due 2005 and the Series B Secured Notes due 2007 issued by Brazil Financing (II) Ltd., an indirect, wholly-owned subsidiary of the Company. The expiration time for the offer has been extended from 5:00 p.m., London time, on September 28, 2004 to 5:00 p.m., London time, on September 29, 2004 (the "Offer Expiration Time"). The closing remains subject to the satisfaction of certain conditions including the consummation of the acquisition of BFL and certain other subsidiaries of Singer by KSIN Holdings, Ltd. ("KSIN"). Series A Notes and Series B Notes validly tendered and not validly withdrawn after 5:00 p.m., London time, on August 3, 2004 and at or prior to the Offer Expiration Time will receive the offer consideration of $1,000 per $1,000 principal amount, plus accrued and unpaid interest, and $230 per $1,000 of maximum principal amount, respectively, if the tendered Series A Notes and Series B Notes are accepted for purchase. As of 5:00 p.m., London time, on September 28, 2004, BFL received tenders from holders of approximately $20,531,149 aggregate principal amount of the Series A Notes, representing approximately 90% of the outstanding principal amount of the Series A Notes and from holders of approximately $27,525,747 aggregate maximum principal amount of the Series B Notes, representing approximately 90% of the outstanding maximum principal amount of the Series B Notes. The terms and conditions of the offer, including the conditions of BFL's obligation to accept the Series A Notes and the Series B Notes tendered and pay the purchase price and, if applicable, the consent payment for them are described in the Offer to Purchase and Consent Solicitation Statement dated July 13, 2004, copies of which may be obtained from D.F. King & Co., Inc., the information agent for the offer, at 1-800-769-7666 (US toll free) or, outside the United States, at (44 20) 7920 9700 (collect). This announcement is not an offer to purchase, a solicitation of an offer to purchase or a solicitation of consent with respect to any securities. The offer is being made solely by the Offer to Purchase and Consent Solicitation Statement dated July 13, 2004. All amounts are in U.S. dollars. Singer N.V. was incorporated under the laws of the Netherlands Antilles on December 21, 1999. Effective September 2000, as a result of a successful Chapter 11 reorganization, Singer became the parent company of several Operating Companies formerly owned by The Singer Company N.V., as well as acquiring ownership of the SINGER(R) brand name, one of the most widely recognized and respected trademarks in the world. Through its Operating Companies, Singer is engaged in two principal businesses, Retail and Sewing. The SINGER(R) trademark ties the two businesses together and also stands on its own with licensing and wholesaling potential. Additional financial and other information about the Company may be found at the investor section of the Company's website http://www.singer.com. TELEMAR: Fitch Raises Rating Following Sovereign Upgrade -------------------------------------------------------- Fitch Ratings upgraded the long-term foreign currency ratings of Tele Norte Leste Participacoes S.A. and Telemar Norte Leste S.A. to 'BB-' from 'B+'. The outlook on the ratings remains Stable. The rating actions follow the recent upgrade of the foreign currency rating of the Federative Republic of Brazil to 'BB-' from 'B+'. * Fitch Upgrades Brazil Sovereign To 'BB-' ------------------------------------------ Fitch Ratings, the international rating agency, has upgraded Brazil's long-term foreign and local currency ratings to 'BB-' from 'B+'. The short-term rating is affirmed at 'B'. The Rating Outlook is Stable. Fitch's rating action reflects a marked turnaround in international trade performance, declining public and external debt burdens, and a demonstrated commitment to sound macroeconomic policies. 'The 25 basis point hike in the Selic policy rate earlier this month and the fact that the authorities chose not to ramp up spending ahead of Sunday's municipal elections, even in light of strong tax performance so far this year, are further signals of the determination to run sound macro policies in Brazil,' said Roger Scher, Managing Director, Latin American Sovereigns, Fitch Ratings. Exports have expanded 34.8% in the January-August 2004 period over the same period last year, reflecting both price and volume increases and growth in a broad array of manufactured and primary exports to diverse destinations. Fitch expects the trade surplus to finish the year at US$33 billion, yielding a current account surplus of 1.3% of gross domestic product (GDP). Economic growth has proceeded apace, with Fitch forecasting a 4.7% expansion this year, moving imports up markedly, but not creating substantive balance of payments pressures. 'It is a break with the past in Brazil, having strong GDP growth without balance of payments pressures,' said Scher. Brazil's external financing needs, which Fitch forecasts at nearly US$33 billion next year, essentially unchanged from 2004, remain heavy due to the legacy of past borrowing. Nevertheless, current account surpluses, equity inflows and strong export growth have yielded a declining net external debt burden, forecast at under 140% of broad exports this year, down from a high of 308% in 1999. Although this ratio still compares unfavorably with the 'B' category median, forecast at 92% this year, it is projected to fall below 100% in two years time. The fiscal authorities continue to outperform their targets, with the public sector primary surplus totaling 4.95% of GDP in the 12 months to August. The authorities raised the full-year 2004 target to 4.5% of GDP this month, though the 2005 target remains at 4.25%, still 0.5% of GDP higher than the previous government's target. Exceptional tax performance has been underpinned by the economic upturn as well as by the reform of the Cofins (social security) tax last year. Domestic debt reprofiling has reduced risks to the government, resulting in only 27% of general government debt linked to or denominated in foreign currencies, versus over 40% in 2002 before President Lula took office. The monetary authorities, after bringing interest rates down from a high of 26.5% in 2003, raised the policy rate 25 basis points to 16.25% to counter rising inflation expectations. Nevertheless, Fitch expects inflation to finish 2004 at about 7.5%, within the central bank's target range. With this as a backdrop, Brazil's public and external debt burdens have moved down, with gross general government debt down 4.7% of GDP in August 2004 from year-end 2003. Fitch expects gross general government debt to finish the year at around 78% of GDP, versus 'B' and 'BB' rating category medians of 67% and 47% respectively. Thus, Brazil's ratings remain constrained by its heavy public and external debt burdens, though both are on a declining trend. 'Another constraint to the ratings,' said Scher, 'is the limited progress so far in implementing major microeconomic reforms.' Fitch points out that such structural reforms as bankruptcy legislation (which stands a good chance of passage after October's municipal elections), central bank autonomy legislation, labor reform, regulatory reform, second-stage social security and tax reforms, and privatization could ensure that Brazil moves beyond this current cyclical upswing toward high, sustainable economic and export growth rates. Political scandals and reform fatigue slowed the pace of reform this year, and Fitch emphasizes that sovereign creditworthiness would be served if reform efforts were redoubled after the municipal elections. CONTACT: Roger M. Scher +1-212-908-0240, New York Richard Fox +44 (0)20 7417 4357, London =============== C O L O M B I A =============== AVIANCA: Restructuring Gets Creditor Support -------------------------------------------- Avianca's restructuring gains ground after a committee of creditors approved a plan that would transfer a 75 percent ownership in the troubled carrier to Brazil's Grupo Sinergy. Dow Jones Newswires reports that Grupo Sinergy offered to carry US$300 million of Avianca's debt in exchange for the stake. The deal also involves a US$64 million capital infusion from the Brazilian group. The Company has until November 4 to seek creditor support for the restructuring plan. After the exclusive period, creditors will vote to confirm the plan on November 16. Avianca, jointly owned by Valores Bavaria and the National Federation of Coffee Growers, filed for bankruptcy protection in March of 2003. Rising fuel prices and low demand has hurt the Company's bottom line in recent years although the Company posted a net profit of $18.9 million in the first seven months of 2004. TERMOEMCALI: Default Prompts `D' Rating From Fitch -------------------------------------------------- Fitch Ratings downgraded the debt of TermoEmcali Funding Corp. (TermoEmcali Funding) to 'D' from 'C' upon receipt of notice of default from TermoEmcali management pursuant to Section 5.1(b)(vi) of the common agreement. The default affects holders of the US$165 million 10.125% senior secured bonds due 2014, issued by TermoEmcali Funding in April 1997 to finance the construction of a 233.8 MW gas-fired electric generating facility near the City of Cali, Colombia. The 'D' rating indicates a probability of capital recovery estimated below 50%. As highlighted in the Fitch Ratings press release dated Sept. 9, 2004, TermoEmcali continues to face the challenges of successfully renegotiating the formal terms of the new power purchase agreement (PPA) with Empresas Municipales de Cali (Emcali) (implied Fitch rating of 'D'), which will be central to the successful restructuring of the TermoEmcali 10.125% bonds. Although discussions remain in progress with the various relevant parties that include TermoEmcali, Emcali, the Superintendencia de Servicios Publicos (SSP), InterGen, and Ecopetrol/Ecogas, the timing and content of a final resolution remains highly uncertain. Fitch will continue to monitor the debt restructuring progress and follow up with any additional rating comments. ============= J A M A I C A ============= JPSCo: To Remain Part of Mirant After Chapter 11 Emergence ---------------------------------------------------------- Jamaica Public Service Company (JPS) will continue to be under the control of Mirant Corporation when the Atlanta-based energy producer emerges from bankruptcy by June next year, reports the Jamaica Observer. Mirant spokesperson, James Peters, says the Company plans to retain JPS and its other non-US subsidiaries when it emerges from Chapter 11, saying that JPS will not be sold to help pay its debt. Mr. Peters adds: "JPS is a valuable and strategic part of Mirant's global operations." Meanwhile, JPS, 80 percent owned by Mirant, needs US$100 million to fund its expansion plans. Mr. Peters remains confident that the Jamaican company will continue to have sufficient resources and access to the financial markets to raise this amount. Mirant's bankruptcy filing is one of the largest in U.S. history. The company fell into financial trouble after rising operating costs and low power prices hurt its ability to refinance around US$4.9 billion in bank and bond debt. The Company's assets are valued at US$20.6 billion while its liabilities are placed at US$11.4 billion. =========== M E X I C O =========== AMERICAN TOWER: Moody's Assigns Caa1 Rating to $300M Sr. Notes -------------------------------------------------------------- Moody's Investors Service assigned a Caa1 rating to the US$300 million 7 1/8% senior notes offering by American Tower Corporation. American Tower is offering the notes in order to raise funds to reduce its outstandings on the 9.375% senior unsecured notes due 2009. This issuance will provide the company with lower interest expense and extend maturities by approximately 4 years. Concurrently, Moody's affirmed American Tower's other debt ratings as outlined below: American Tower Corporation (American Tower) - Senior Implied -- B2 - Speculative Grade Liquidity -- SGL-2 - US$225 million of 7.5% Senior Notes due 2012 -- Caa1 - US$636 million of 9.375% Senior Notes due 2009 -- Caa1 - US$298 million of 5.0% Convertible Notes due 2010 -- Caa1 American Towers, Inc. (ATI) - US$808 million (face value) of 12.25% Senior Subordinated Discount Notes due 2008 -- B3 - US$400 million of 7.25% Senior Subordinated Notes due 2011 -- B3 American Tower, LP and American Towers, Inc. (co-borrowers) - US$400 million senior secured revolving credit facility expiring 2011 -- B1 - US$300 million senior secured term loan A maturing 2011 -- B1 - $400 million senior secured term loan B maturing 2011 -- B1 The outlook for all ratings is positive. According to Moody's, the B2 senior implied rating reflects the company's steadily improving free cash flow profile. The Caa1 rating on the new and existing senior unsecured debt at the ultimate parent holding company reflects their junior position in the capital structure behind the higher rated obligations at subsidiaries closer to the assets and cash flows of the company. The B1 rating on the senior secured credit facilities reflects their priority position in the company's capital structure, and their relatively modest proportion of the company's total debt capital (21% at 2Q04). The B3 rating for the unsecured debt at the intermediate ATI level reflects the effective subordination of these securities to the secured bank borrowings and other liabilities of the company's operating subsidiaries. The SGL-2 liquidity rating continues to reflect the good liquidity profile of the company with healthy cash balances, good free cash flows, and significant covenant cushion under its credit facilities. The positive rating outlook reflects Moody's opinion that should the company continue to generate higher levels of free cash flow the ratings are likely to be upgraded in the next 12 to 18 months. Headquartered in Boston, American Tower Corporation is an independent owner and operator of wireless communications and broadcast towers in the U.S., Mexico, and Brazil. TV AZTECA: Report on Controversial Debt Deal Expected End-Oct. -------------------------------------------------------------- Ricardo Salinas, owner of Mexican broadcaster TV Azteca, told reporters Tuesday that his company will file a report on a controversial debt deal to U.S. and Mexico authorities by the end of October, says Reuters. "We are working on the final details. We are going to make a public presentation and put it on the Internet so that everyone can look at it," Mr. Salinas said. The U.S. Securities and Exchange Commission and Mexican authorities are investigating TV Azteca's failure to disclose that Mr. Salinas and business partner Moises Saba had profited about US$218 million by buying debt in unit Unefon SA (UNEFON.MX) and then selling it back to the wireless service provider. Mr. Saba is chairman of Unefon, and Mr. Salinas is president of the wireless carrier. At the time of the questioned debt transaction, TV Azteca had a 46.5% stake in Unefon, which it spun off last December. CONTACT: Investor Relations Mr. Bruno Rangel 5255 3099 9167 jrangelk@tvazteca.com.mx Mr. Omar Avila 5255 3099 004 1oavila@tvazteca.com.mx Web Site: www.irtvazteca.com VITRO: New Issue Will Not Affect S&P Ratings -------------------------------------------- Standard & Poor's Ratings Services said that the announcement by Vitro S.A. de C.V. (Vitro, B+/Negative/--) that it has issued $230 million through its subsidiary Vitro Envases Norteamerica S.A. de C.V. (Vena; B+/Negative/--) does not affect Vitro's rating. Standard & Poor's was not asked to rate the new issue. Standard & Poor's comments reflect Vitro's indications that the announced issue will not lead to increased leverage given that it will ultimately be used to refinance debt at the holding company in the short term and that it intends to refinance the new issue in more favorable terms with a new credit facility to be provided by the International Finance Corp. Furthermore, Vitro's announcement illustrates Standard & Poor's rationale behind the equalization of Vena's ratings with those of its parent company. The company's announcement that it has agreed to sell its 50% interest in Vitro American National Can S.A. de C.V. (Vancan, not rated) will not affect Vitro's rating or outlook, given that it will not have a significant impact on Vitro's consolidated business and financial profile. Vancan's sales during 2003 represented about 2% of Vitro's consolidated sales. ANALYSTS: Jose Coballasi, Mexico City (52) 55-5081-4414 Santiago Carniado, Mexico City (52) 55-5081-4413 *********** 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. 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