/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/041001.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, October 1, 2004, Vol. 5, Issue 195 Headlines A R G E N T I N A CAFERAL S.R.L.: Bankruptcy Proceeding COMPACT COMPANY: Enters Bankruptcy on Court Orders DALVIK S.A.: Reorganization Request Approved FANTASTICO PRODUCCIONES: Liquidating Assets to Pay Debts GIT S.A.: Verification Deadline Set MENDOZA BURSATIL: Trustee to Wrap-Up Verification Phase MUTUAL DE AYUDA: Verification Deadline Approaches PREVENT ARC: Debt Payments Halted; Asks To Reorganize PROCONSULT S.A.: Court Declares Company Bankrupt SARSIS S.A.: Files Petition to Reorganize SIDERAR: Makes Early Debt Payment of $77M TRANSPORTES DOMCAR: Court OKs Creditor's Bankruptcy Call TUBOS TRANS: Enters Into Extra-Judicial Workout With Creditors B E R M U D A DANIEL'S HEAD: Worker Urges Receiver to Pay Redundancy Packages GRN REINSURANCE: Court Issues Wind-Up Notice SENATE INSURANCE: Presents Wind-Up Petition in Court B R A Z I L BANCO BRADESCO: Fitch Ups Ratings Following Sovereign Upgrade BANCO BRASCAN: Fitch Ups LT Foreign, Local Currency Ratings BANCO DO BRASIL: Long-term Currency Ratings Upgraded BANCO ITAU: Sovereign Rating Upgrade Sends Ratings Up BANCO PACTUAL: Fitch Raises Long-term Currency Ratings BANCO SAFRA: Fitch Ups Ratings Following Sovereign Upgrade BANCO SANTANDER BRASIL: Fitch Ups LT Currency Ratings BANCO SANTANDER MERIDIONAL: Long-term Currency Ratings Upgraded BANCO VOTORANTIM: Fitch Raises LTFC Ratings BANESPA: Currency Ratings Climb Following Sovereign Upgrade CSN: Board Approves Resignation of Executive NET SERVICOS: Bndespar OKs Globo's Share Acquisition Proposal TELEMAR: Proceeds With Registered Exchange Offer UNIBANCO: Fitch Ups Ratings Following Sovereign Upgrade VASP: Striking Workers Return to Work C H I L E EDELNOR: S&P Ups Rating to 'B' on Better Financial Performance C O L O M B I A * COLOMBIA: IDB Approves $600M Loan M E X I C O CEMEX: Moody's Puts Ratings Under Review for Possible Downgrade TV AZTECA: To Make $210M Cash Distribution to Shareholders T R I N I D A D & T O B A G O FNCU VENTURE CAPITAL: Transaction Raises Concerns in Senate V E N E Z U E L A * Venezuela: Reports Clearing Spreads, Results of Invitation - - - - - - - - ================= A R G E N T I N A ================= CAFERAL S.R.L.: Bankruptcy Proceeding ------------------------------------- Judge Gonzalez of Buenos Aires' Civil and Commercial Tribunal Court no. 8 declared Caferal S.R.L. bankrupt, says La Nacion. The ruling comes in approval of the bankruptcy petition filed by the Company's creditor, Internacional de Productos S.A., for nonpayment of US$5,478.34 in debt. The Company's trustee, Mr. Felipe Florio, will examine and authenticate creditors' claims until November 24, 2004. This is done to determine the nature and amount of the Company's debts. Creditors must have their claims authenticated by the said date in order to qualify for the payments that will be made after the Company's assets are liquidated. Dr. Saravia, the city's clerk no. 16, assists the court on the case that will conclude with the liquidation of the Company's assets. CONTACT: Caferal S.R.L. Grecia 4154 Buenos Aires Mr. Felipe Florio, Trustee Uruguay 618 Buenos Aires COMPACT COMPANY: Enters Bankruptcy on Court Orders -------------------------------------------------- Compact Company S.A. enters bankruptcy protection upon orders from Court no. 19 of Buenos Aires' Civil and Commercial Tribunal. The order effectively transfers control of the company's assets to the court- appointed trustee who will supervise the liquidation proceedings. Infobae reports that the court selected Mr. Alfredo Donatti as trustee. He will be verifying creditors' proofs of claims until the end of the verification phase on October 25, 2004. Argentine bankruptcy law requires the trustee to provide the court with individual reports on the forwarded claims and a general report containing an audit of the Company's accounting and business records. The individual reports will be submitted on December 6, 2004 followed by the general report, which is due on February 18, 2005. CONTACT: Mr. Alfredo Donatti, Trustee Montevideo 31 Buenos Aires DALVIK S.A.: Reorganization Request Approved -------------------------------------------- Judge Braga, serving for Court no. 22 of Buenos Aires' Civil and Commercial Tribunal, approved the "Concurso Preventivo" petition filed by Dalvik S.A., reports local news source La Nacion. The agricultural products company will undergo a reorganization process, with Ms. Ines Clos as Trustee. Ms. Clos will verify creditors' proofs of claim until November 1, 2004. Verifications are done to ascertain the nature and amount of the Company's debts. The presentation of the Company's settlement proposal is scheduled on August 4 next year. Dr. Julianelli, clerk no. 44, assists the court on the case. CONTACT: Dalvik S.A. Junin 55 Buenos Aires Ms. Ines Clos, Trustee Lavalle 715 Buenos Aires FANTASTICO PRODUCCIONES: Liquidating Assets to Pay Debts -------------------------------------------------------- Buenos Aires-based Fantastico Producciones S.A. will begin liquidating its assets following the bankruptcy pronouncement issued by court no. 2 of the city's civil and commercial tribunal. The ruling places the Company under the supervision of court- appointed trustee Andrea Rut Cetlinas. Ms. Cetlinas will verify creditors' proofs of claims until November 16, 2004. Next, the validated claims will be presented in court as individual reports on February 16, 2005. The trustee will also submit a general report, containing a summary of the Company's financial status as well as relevant events pertaining to the bankruptcy, on March 30, 2005. Clerk no. 4 assist the court on this case that will end with the disposal of Company assets in favor of its creditors. CONTACT: Ms. Andrea Rut Cetlinas, Trustee Lavalle 1678 Buenos Aires GIT S.A.: Verification Deadline Set ----------------------------------- The verification of claims for the Git S.A. bankruptcy will end on November 12, 2004 according to local news source Infobae. Creditors with claims against the bankrupt company must present proof of the liabilities to trustee Francisco Rogelio Cano before the deadline. Court no. 4 of Buenos Aires' Civil and Commercial Tribunal handles the Company's case with assistance from clerk no. 8. The bankruptcy proceedings will conclude with the liquidation of the Company's assets to pay its creditors. CONTACT: Mr. Francisco Rogelio Cano, Trustee Uruguay 618 Buenos Aires MENDOZA BURSATIL: Trustee to Wrap-Up Verification Phase ------------------------------------------------------- The verification of creditors' claims for the Mendoza Bursatil S.A. bankruptcy case is set to close on Monday, October 4, 2004. Creditors must submit all required documents to trustee Norberto Markel before the deadline to qualify for the official list of creditors who will receive post-liquidation payments. Judge Ferrario, serving for Court no. 6 of Buenos Aires' civil and commercial tribunal, handles this case with assistance from Dr. Mendez Sarmiento, clerk no. 12. CONTACT: Mendoza Bursatil S.A. Maipu 267 Buenos Aires Mr. Norberto Markel, Trustee Tucuman 1657 Buenos Aires MUTUAL DE AYUDA: Verification Deadline Approaches ------------------------------------------------- Accounting firm "Estudio Abella, Fernandez Martinez y Asociados" will close the verification of creditors' claims for the Mutual de Ayuda entre Bomberos Voluntarios, Asociados y Afiliados a Cajas de Prevision Social reorganization case on Monday, October 4, 2004. Creditors are required to present proof of their claims to the trustee before the said deadline to qualify for the official list of creditors covered by the Company's restructuring plan. CONTACT: "Estudio Abella, Fernandez Martinez y Asociados" Trustee Avda Mitre 940 Zarate-Campana PREVENT ARC: Debt Payments Halted; Asks To Reorganize ----------------------------------------------------- Judge Villanueva, serving for Court no. 23 of Buenos Aires' Civil and Commercial Tribunal, is now analyzing whether to grant Prevent Arc S.R.L. approval for its petition to reorganize. La Nacion recalls that the Company filed a "Concurso Preventivo" petition following cessation of debt payments since December 13, 2001. Dr. Robledo, clerk no. 46, assists the court on this case. CONTACT: Prevent Arc S.R.L. Tapalque 7450 Buenos Aires PROCONSULT S.A.: Court Declares Company Bankrupt ------------------------------------------------ Judge Bavastro of Buenos Aires' civil and commercial tribunal court no. 17 declared local company Proconsult S.A. "Quiebra", relates La Nacion. The court approved the bankruptcy petition filed by Medicas S.A., to whom the Company failed to pay debts amounting to US$ 34,983.29 The Company will undergo the bankruptcy process with Mr. Marcos Livszyc as its trustee. Creditors are required to present their proofs of claims to the trustee for verification before November 17, 2004. Creditors who fail to have their claims authenticated by the said date will be disqualified from the payments that will be made after the Company's assets are liquidated at the end of the bankruptcy process. Dr. Vanoli, clerk no. 34, assists the court on the case. CONTACT: Proconsult S.A. Bolivar 430 Buenos Aires Mr. Marcos Livszycm, Trustee Nunez 3687 Buenos Aires SARSIS S.A.: Files Petition to Reorganize ----------------------------------------- Sarsis S.A. filed a "Concurso Preventivo" motion, reports La Nacion. The Company opted for voluntary bankruptcy following cessation of debt payments since 1994. The Company's case is pending before Judge Ferrario of Buenos Aires's Civil and Commercial Tribunal Court no.6. Dr. Sicoli, clerk no. 11, assists the court with the proceedings. CONTACT: Sarsis S.A. Culpina 178 Buenos Aires SIDERAR: Makes Early Debt Payment of $77M ----------------------------------------- Argentine flat steelmaker Siderar SAIC (ERAR.BA) will make an early debt payment of US$77 million as part of the company's financial restructuring. Siderar told the local securities regulator that its board of directors approved the payment in a Tuesday meeting and will complete the transaction this week. The payment will be made "pro rata to creditors including the holders of bonds issued July 31, 1998," the company said. The steelmaker reached a US$473.3 million debt restructuring accord with its creditors in March 2003, agreeing to pay US$85 million up front and the remaining US$388.3 million in 11 installments over 5.25 years. Siderar, which is 51% owned by Grupo Techint, 5% by Brazil's CVRD and 5% by fellow Brazilian company Usiminas, posted a net profit of ARS362.9 million in the second quarter of 2004 - more than double from a year earlier. TRANSPORTES DOMCAR: Court OKs Creditor's Bankruptcy Call -------------------------------------------------------- Transportes Domcar S.A. entered bankruptcy after Court no. 13 of Buenos Aires' Civil and Commercial Tribunal approved a bankruptcy motion filed by Ms. Maria Amelia Gattellet, reports La Nacion. The Company's failure to pay US$1,335.34 in debt prompted the liquidation petition. Working with Dr. Guerri, the city's clerk no. 25, the court assigned Mr. Norberto Sapir 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 November 19, 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: Transportes Domcar S.A. Carlos Pellegrini 763 Buenos Aires Mr. Norberto Sapir, Trustee Uriburu 1010 Buenos Aires TUBOS TRANS: Enters Into Extra-Judicial Workout With Creditors -------------------------------------------------------------- Cordoba-based Tubos Trans Electric S.A. entered into a private agreement or "Acuerdo Preventivo Extrajudicial" with its creditors to settle its debts, says Infobae. While the extra-judicial workout is private in nature, the procedure still has to be legitimized by the court to ensure that it contains certain basic provisions. Court no. 8 of Cordoba's civil and commercial tribunal will handle the brief proceeding to review the settlement between the Company and its creditors. CONTACT: Tubos Trans Electric S.A. Eliseo Canton 2342 Cordoba ============= B E R M U D A ============= DANIEL'S HEAD: Worker Urges Receiver to Pay Redundancy Packages --------------------------------------------------------------- It's been more than two years since Daniel's Head, a Bermuda resort owned by San Diego based Excel Legacy Corporation, collapsed but up to now, workers at the failed eco-resort still have not received redundancy money, reports the Bermuda Sun. Mr. Graeme Outerbridge, one of 30 staff left without jobs when the resort collapsed, claims he still hasn't received his pay- off. According to him, outstanding workers' pay should have been resolved by the receiver, KPMG. Kelvin Hastings-Smith, a specialist in employment law with Appleby, Spurling and Hunter, said that the employees have priority over all other non-secured creditors. "It may have been that the Company did not have the wherewithal to pay them at the time..." "But if it has now been sold then the liquidator, once the sale has gone through, should pay out. "The purpose of the employment legislation is to make sure that, in cases like these, employees do have their claims dealt with." KPMG is yet to respond to Outerbridge's comments. GRN REINSURANCE: Court Issues Wind-Up Notice -------------------------------------------- IN THE SUPREME COURT OF BERMUDA COMPANIES (WINDING-UP) IN THE MATTER OF THE COMPANIES ACT 1981 And IN THE MATTER OF GRN Reinsurance International Ltd. Take notice that an order was made in the Supreme Court on September 24, 2004 winding-up GRN Reinsurance International Ltd. under the provisions of the Companies Act 1981 and appointing John McKenna of Ernst & Young, Bermuda as the Provisional Liquidator of the Company. CONTACT: Conyers Dill & Pearman Attorneys for the Petitioner Clarendon House 2 Church Street Hamilton, HM 11 Bermuda SENATE INSURANCE: Presents Wind-Up Petition in Court ---------------------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 And IN THE MATTER OF Senate Insurance Company Ltd. Advertisement of Petition Notice is given that a Petition for the winding-up of the above- named company by the Supreme Court of Bermuda was on September 22, 2004 presented to the Court by the Company and the Petition is directed to be heard before the Court on Friday, October 22, 2004 at 9.30 a.m. Any creditor or contributory desirous to support or oppose the making of an order on the said Petition may appear at the time of hearing by himself or his counsel for that purpose and a copy of the Petition will be furnished to any creditor or contributory of the said Company requiring the same by the undersigned on payment of the regulated charge for the same. NOTE: Any person who intends to appear at the hearing of the said Petition must serve on or send by post to the above-named notice in writing of his intention to do so. The notice must state the name and address of the person or the name and address of the firm, and must be signed by the person or firm, or his or their attorneys (if any) and must be served (or if posted) must be sent by post in sufficient time to reach the above-named not later than four o'clock (4.00 p.m.) on October 21, 2004. CONTACT: Conyers Dill & Pearman Attorneys for the Petitioner Clarendon House 2 Church Street Hamilton, HM 11 Bermuda =========== B R A Z I L =========== BANCO BRADESCO: Fitch Ups Ratings Following Sovereign Upgrade ------------------------------------------------------------- Fitch Ratings upgraded the ratings of Brazilian bank Banco Bradesco in the wake of Fitch's sovereign rating upgrade. The ratings affected are: (To/From) -- Long-term foreign currency rating 'BB-' 'B+' -- Long-term local currency rating 'BB+' 'BB' The Rating Outlook remains Stable. The long-term local currency ratings of Banco Bradesco reflect the bank's intrinsic financial strength. CONTACTS: FITCH RATINGS Rafael Guedes, +5511 4504 2608 Maria Rita Goncalves, +5521 4503 2621 Peter Shaw, 212-908-0553 Kenneth Reed, 212-908-0540 (Media Relations) BANCO BRASCAN: Fitch Ups LT Foreign, Local Currency Ratings ----------------------------------------------------------- Fitch Ratings upgraded the long-term foreign and local currency ratings of Banco Brascan to 'B+' from 'B' in the wake of Fitch's sovereign rating upgrade. The Rating Outlook remains Stable. CONTACTS: FITCH RATINGS Rafael Guedes, +5511 4504 2608 Maria Rita Goncalves, +5521 4503 2621 Peter Shaw, 212-908-0553 Kenneth Reed, 212-908-0540 (Media Relations) BANCO DO BRASIL: Long-term Currency Ratings Upgraded ---------------------------------------------------- Fitch upgraded the ratings of Brazilian bank Banco do Brasil in the wake of Fitch's sovereign rating upgrade. The ratings affected are: (To/From) --Long-term foreign currency rating 'BB-' 'B+' --Long-term local currency rating 'BB' 'BB-' The Rating Outlook remains Stable. The long-term local currency rating of Banco do Brasil reflects its predominant position in Brazil's financial system, as well as its much improved financial performance over recent years. CONTACTS: FITCH RATINGS Rafael Guedes, +5511 4504 2608 Maria Rita Goncalves, +5521 4503 2621 Peter Shaw, 212-908-0553 Kenneth Reed, 212-908-0540 (Media Relations) BANCO ITAU: Sovereign Rating Upgrade Sends Ratings Up ----------------------------------------------------- Fitch Ratings announced Wednesday several rating upgrades affecting the Brazilian banks mentioned below in the wake of Fitch's sovereign rating: (To/From) Banco Itau --Long-term foreign currency rating 'BB-' 'B+' --Long-term local currency rating 'BB+' 'BB' Banco Itau BBA --Long-term foreign currency rating 'BB-' 'B+' --Long-term local currency rating 'BB+' 'BB' Banco Itau Holding Financeira --Long-term foreign currency rating 'BB-' 'B+' --Long-term local currency rating 'BB+' 'BB' The Rating Outlook remains Stable. The long-term local currency ratings of, Banco Itau and Banco Itau BBA reflect the banks' intrinsic financial strengths, as evident in their individual ratings. CONTACT: Rafael Guedes +5511 4504 2608, Sao Paulo Maria Rita Goncalves +5521 4503 2621, Rio de Janeiro Peter Shaw +1-212-908-0553, New York MEDIA RELATIONS: Kenneth Reed +1-212-908-0540, New York BANCO PACTUAL: Fitch Raises Long-term Currency Ratings ------------------------------------------------------ Fitch Ratings upgraded the long-term foreign and local currency ratings of Banco Pactual to 'BB-' from 'B+' in the wake of Fitch's sovereign rating upgrade. The Rating Outlook remains Stable. CONTACTS: FITCH RATINGS Rafael Guedes, +5511 4504 2608 Maria Rita Goncalves, +5521 4503 2621 Peter Shaw, 212-908-0553 Kenneth Reed, 212-908-0540 (Media Relations) BANCO SAFRA: Fitch Ups Ratings Following Sovereign Upgrade ---------------------------------------------------------- Fitch upgraded Brazilian bank Banco Safra's ratings in the wake of Fitch's sovereign rating upgrade. The ratings affected are: (To/From) --Long-term foreign currency rating 'BB-' 'B+' --Long-term local currency rating 'BB' 'BB-' The Rating Outlook remains Stable. The long-term local currency rating of Banco Safra reflects the bank's intrinsic financial strength. CONTACTS: FITCH RATINGS Rafael Guedes, +5511 4504 2608 Maria Rita Goncalves, +5521 4503 2621 Peter Shaw, 212-908-0553 Kenneth Reed, 212-908-0540 (Media Relations) BANCO SANTANDER BRASIL: Fitch Ups LT Currency Ratings ----------------------------------------------------- Fitch upgraded the ratings of Brazilian bank Banco Santander Brasil in the wake of Fitch's sovereign rating upgrade. The ratings affected are: (To/From) --Long-term foreign currency rating 'BB-' 'B+' --Long-term local currency rating 'BB+' 'BB' The Rating Outlook remains Stable. The long-term local currency rating of Banco Santander Brasil is based principally on the potential support available from its parent, Banco Santander Central Hispano. CONTACTS: FITCH RATINGS Rafael Guedes, +5511 4504 2608 Maria Rita Goncalves, +5521 4503 2621 Peter Shaw, 212-908-0553 Kenneth Reed, 212-908-0540 (Media Relations) BANCO SANTANDER MERIDIONAL: Long-term Currency Ratings Upgraded --------------------------------------------------------------- Fitch upgraded the ratings of Brazilian bank Banco Santander Meridional in the wake of Fitch's sovereign rating upgrade. The ratings affected are: (To/From) --Long-term foreign currency rating 'BB-' 'B+' --Long-term local currency rating 'BB+' 'BB' The Rating Outlook remains Stable. The long-term local currency rating of Banco Santander Meridional IS based principally on the potential support available from its ultimate parent, Banco Santander Central Hispano. CONTACTS: FITCH RATINGS Rafael Guedes, +5511 4504 2608 Maria Rita Goncalves, +5521 4503 2621 Peter Shaw, 212-908-0553 Kenneth Reed, 212-908-0540 (Media Relations) BANCO VOTORANTIM: Fitch Raises LTFC Ratings ------------------------------------------- Fitch Ratings upgraded the long-term foreign currency ratings of Brazilian bank Banco Votorantim to 'BB-' from 'B+' in the wake of Fitch's sovereign rating upgrade. The Rating Outlook remains Stable. CONTACTS: FITCH RATINGS Rafael Guedes, +5511 4504 2608 Maria Rita Goncalves, +5521 4503 2621 Peter Shaw, 212-908-0553 Kenneth Reed, 212-908-0540 (Media Relations) BANESPA: Currency Ratings Climb Following Sovereign Upgrade ----------------------------------------------------------- Fitch upgraded the ratings of Brazilian bank Banco do Estado de Sao Paulo (Banespa) in the wake of Fitch's sovereign rating upgrade. The ratings affected are: (To/From) --Long-term foreign currency rating 'BB-' 'B+' --Long-term local currency rating 'BB+' 'BB' The Rating Outlook remains Stable. The long-term local currency rating of Banespa is based principally on the potential support available from its parent, Banco Santander Central Hispano. CONTACTS: FITCH RATINGS Rafael Guedes, +5511 4504 2608 Maria Rita Goncalves, +5521 4503 2621 Peter Shaw, 212-908-0553 Kenneth Reed, 212-908-0540 (Media Relations) CSN: Board Approves Resignation of Executive -------------------------------------------- Companhia Siderurgica Nacional S.A. - CSN (NYSE:SID) (BOVESPA:CSNA3) announced Wednesday that in a general ordinary meeting held on September 28, 2004, its board of directors analyzed and, unanimously, approved the resignation presented on September 22, 2004 by Mr. Marcelo Pereira Malta de Araujo from his position as Executive Officer of Administration and Participations of the Company. NET SERVICOS: Bndespar OKs Globo's Share Acquisition Proposal ------------------------------------------------------------- Net Servicos de Comunicacao S.A. ("Net"), a publicly held company, with headquarters in the city and state of Sao Paulo, pursuant the dispositions of CVM Instruction # 358/02, reports information received as of Wednesday from its shareholders Globo Comunicacoes e Participacoes S.A. ("Globopar"), Distel Holding S.A.("Distel") and Roma Participacoes Ltda. ("Roma") (Globopar, Distel and Roma, are jointly referred to as "Globo") and BNDES Participacoes S.A. ("Bndespar"). Bndespar accepted Globo's proposal (the "Proposal") for the acquisition by Globo of total 60,138,289 common shares, which represent 7.26% of Net's voting capital, held by Bndespar. The completion of such acquisition is subject to the execution of a final agreement between the parties. Among other applicable preceding conditions, Globo's obligation to acquire the common shares held by Bndespar is subject to the conclusion of the sale by Globo of its minor interest in Net to Telefonos de Mexico, S.A de C.V ("Telmex") and to the execution of a new Net's Shareholders' Agreement between Globo and Telmex, which was the object of relevant notices released by the Company on June 28 and 30, 2004. Assuming the completion of the proposed acquisition until December 31, 2004, the price per common share held by Bndespar will be R$ 0.90, totaling R$ 54,124,459.74. After December 31, 2004, the price will be monetarily readjusted. Also, the price per share payable to Bndespar can not be lower than the price per common share to be received by Globo from Telmex that, subject to certain variables, should range from R$ 0.60 to R$ 0.80, as announced by means of relevant notices on June 28 and 30, 2004. The Proposal also foresees the exclusion of Bndespar as one of the parties of Net's existing Shareholders' Agreement, as well as, the execution of a new Shareholders' Agreement between Globo, Telmex and Bndespar to ensure Bndespar the right to register its preferred shares in eventual public offerings to be made by Net. After the execution of the final agreements between Bndespar and Globo, the common shares held by Bndespar will be offered to the other signatories of Net's existing Shareholders' Agreement. The Proposal will be effective until June 30, 2005. The acceptance of the Proposal by Bndespar will be informed to appropriate governmental authorities. CONTACT: NET Servicos de Comunicacao S.A. Rua Verbo Divino 1356 Chacara Santo Antonio Sao Paulo SP 04719-002 Brazil Phone: 5511-5186-2000 Web Site: http://globocabo.globo.com/ TELEMAR: Proceeds With Registered Exchange Offer ------------------------------------------------ Tele Norte Leste Participacoes S.A.(Telemar) announced that it has commenced an offer to exchange up to US$300 million aggregate principal amount of its registered Series B 8.0% Notes due 2013 (the new notes) for a like principal amount of its unregistered Series A 8.0% Notes due 2013 (the old notes). The expiration date for the exchange offer will be 5:00 p.m., Eastern Standard Time, on October 29, 2004, unless extended. The new notes are substantially identical to the old notes, except that the new notes have been registered under the Securities Act of 1933, as amended, and will not bear any legend restricting their transfer. The purpose of the exchange offer is to allow holders that meet the conditions described in the prospectus to receive new notes that may be resold in the United States without further registration under the Securities Act. The terms of the exchange offer and other information relating to Telemar are set forth in a prospectus dated September 29, 2004. Copies of the prospectus and the related letter of transmittal may be obtained from the exchange agent: HSBC Bank USA National Association One Hanson Place, Lower Level Brooklyn, NY 11243 Attn: Paulette Shaw Phone:(718) 488-4475 Fax: (718) 488-4488 This announcement is neither an offer to sell nor a solicitation of an offer to buy or exchange the new notes or the old notes. The exchange offer is made solely by the prospectus dated September 29, 2004. CONTACT: TNE - INVESTOR RELATIONS Mr. Roberto Terziani Phone: 55 21 3131 1208 e-mail: (terziani@telemar.com.br) Mr. Carlos Lacerda Phone: 55 21 3131 1314 Fax: 55 21 3131 1155 e-mail: (carlosl@telemar.com.br) GLOBAL CONSULTING GROUP Mr. Kevin Kirkeby Tel: 1-646-284-9416 Fax: 1-646-284-9494 e-mail: (kkirkeby@hfgcg.com) Web Site: http://www.telemar.com.br/ir/ UNIBANCO: Fitch Ups Ratings Following Sovereign Upgrade ------------------------------------------------------- Fitch upgraded Brazilian bank Unibanco's (Uniao de Bancos Brasileiros) ratings in the wake of Fitch's sovereign rating upgrade. The ratings affected are: (To/From) --Long-term foreign currency rating 'BB-' 'B+' --Long-term local currency rating 'BB' 'BB-' The Rating Outlook remains Stable. The long-term local currency rating of Unibanco reflects the bank's intrinsic financial strength. CONTACTS: FITCH RATINGS Rafael Guedes, +5511 4504 2608 Maria Rita Goncalves, +5521 4503 2621 Peter Shaw, 212-908-0553 Kenneth Reed, 212-908-0540 (Media Relations) VASP: Striking Workers Return to Work ------------------------------------- Striking workers of Vasp, Brazil's fourth-largest airline, returned to work Wednesday after receiving their August salaries, the Associated Press reports. Vasp, which controls about 10% of the air passenger market in Brazil, saw more than 1,000 of its 5,100-workforce walk off the job on Tuesday because the financially troubled carrier failed to pay August salaries. The action forced the airline to cancel flights Tuesday. But flights resumed Wednesday because workers, which received payments Tuesday night, went back to work. Vasp continues to operate amid turbulent times. Besides labor problems, the Company has an aging fleet. Government officials last week grounded six Vasp Boeing 737s for failure to have detailed maintenance plans in place, forcing Vasp to cancel numerous flights around the country and scramble to find seats on other airlines for its passengers. ========= C H I L E ========= EDELNOR: S&P Ups Rating to 'B' on Better Financial Performance -------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on Chilean power generator Empresa El�ctrica del Norte Grande S.A. (Edelnor) to 'B' from 'B-', reflecting better-than-expected financial performance since 2003, which should stay adequate for the rating category in the next five years. In addition, Edelnor's diversified power generation portfolio should protect the company from natural gas shortages in the Northern Electric System (SING). The outlook remains stable. Edelnor had about $220 million in outstanding debt with third parties as of June 30, 2004. The ratings on Edelnor reflect a still-weak financial profile and the cash flow volatility derived from projected volatile spot prices in the SING. "These weaknesses are counterbalanced by Edelnor's diversified generation base, the ownership of transmission assets, a competitive advantage for Edelnor, and its 21% equity stake in the Gasoducto Norandino pipeline, which provides a stable cash flow stream," said Standard & Poor's credit analyst Sergio Fuentes. The stable outlook incorporates Standard & Poor's expectations that Edelnor's will be able to offset the effect of potential natural gas shortages to its natural gas-fired units by selling its noncontracted coal-fired capacity at high prices in the spot market. Therefore, projected debt and interest coverage ratios should not be affected in the context of natural gas supply shortages in the SING. If the effect of the crisis is significant, Standard & Poor's could revise its ratings. However, the ratings could be revised upward if the company's financial ratios continue improving in spite of natural gas shortages and if the company recovers access to the financial markets before its financial debt starts coming due in May 2008. ANALYSTS: Sergio Fuentes, Buenos Aires (54) 114-891-2131 Marta Castelli, Buenos Aires (54) 114-891-2128 =============== C O L O M B I A =============== * COLOMBIA: IDB Approves $600M Loan ----------------------------------- The Inter-American Development Bank approved Wednesday a $600 million policy-based loan to Colombia to support policy and institutional reforms to promote greater efficiency, equity and quality in public services while at the same time enhancing the climate for private investment. The resources will be disbursed over a period of from 18 to 36 months in three tranches of $200 million each as the government carries out its reform program in the electricity, telecommunications and water and sanitation sectors. The program will support measures to improve the business climate and increase the participation of private investment in public services as well as improve the targeting of subsidies to low income groups so these resources benefit families that need assistance the most. Regulatory and supervisory frameworks for public utilities will be strengthened through measures to enhance capacity and promote transparency and public accountability. The competitive functions in the electricity and telecommunications sectors will be strengthened. The program will also support measures in the water and sanitation sectors that will contribute to meeting United Nations Millennium Development Goals. While carrying out the reform process, the Colombian government is committed to maintaining the country's present climate of macroeconomic stability. The program reflects the IDB joint strategy with Colombia of reducing fiscal and regulatory constraints on economic growth and social investment, protecting socially vulnerable groups and strengthening governance. It will be carried out by the Ministry of Finance* through its Technical Vice Ministry in coordination with the National Planning Department. The Executive Director for Colombia on the IDB Board of Executive Directors, Luis Guillermo Echeverri, said, "This operation signifies a vote of confidence by the IDB in Colombia and a positive signal for foreign investment. Clarity in the rules of the game, professionalization of public enterprises that provide essential services and strengthening of regulatory agencies will improve the country's business climate." Other members of the Board of Executive Directors reaffirmed their support for the reform agenda now being carried out by the Colombian government and expressed their satisfaction at the macroeconomic results that have been achieved. Earlier this year the IDB approved three loans to Colombia totaling $102.3 million to support the modernization and redesign of health services networks, environmental protection and public service reform. CONTACT: Inter-American Development Bank Mr. Daniel Drosdoff danieldr@iadb.org Phone: (202) 623-2407 Web Site: http://www.iadb.org/ =========== M E X I C O =========== CEMEX: Moody's Puts Ratings Under Review for Possible Downgrade --------------------------------------------------------------- Cemex's recent announcement of its offer to acquire UK-based RMC Group p.l.c. (RMC) prompted Moody's Investors Service to put the Mexican cement company's ratings under review for possible downgrade. The ratings under review are: - Senior implied -- Ba1 - Senior unsecured issuer rating -- Ba2 - Senior unsecured eurobonds due 2006 -- Ba1 - Senior unsecured global bonds due 2009 -- Ba1 Cemex is looking to acquire RMC in a transaction valued at roughly US$5.8 billion. The entire transaction is to be funded with debt. The Boards of Directors of both companies unanimously approved the transaction and RMC's directors recommended that its shareholders approve the acquisition, which will be the largest acquisition ever undertaken by Cemex. Moody's said its review will address concerns over the ambitious size of the acquisition, as RMC revenues exceed those of Cemex, and the significant redirection of management attention over the medium-term associated with integration of RMC. Also, Cemex's pro forma capital structure and leverage are of concern given the substantial incremental debt burden associated with its use of 100% debt financing for the acquisition. The review will also address Moody's concerns over the significant operational problems experienced by RMC that prompted a substantial turnover among its senior management and directors, and also resulted in a significant restructuring charge to earnings during 2003. Cemex S.A. de C.V. is the world's third largest cement company. the company generated revenues of US$7.2 billion in 2003. TV AZTECA: To Make $210M Cash Distribution to Shareholders ---------------------------------------------------------- TV Azteca, S.A. de C.V. (NYSE: TZA; BMV: TVAZTCA), one of the two largest producers of Spanish language television programming in the world, announced Wednesday that its board of directors unanimously approved US$210 million cash distributions to shareholders, of which US$130 million are expected to be distributed during the fourth quarter of 2004 and US$80 million in 2005. The recently convened distributions are in addition to the approximately US$22 million of cash disbursements scheduled for November 11, 2004, which were approved by the company's shareholders on April 15. The cash distributions are part of TV Azteca's six-year plan for uses of cash, which entails making disbursements to shareholders above US$500 million and reducing the company's debt by approximately US$250 million within a six-year period that started in 2003. Within the cash plan, TV Azteca has made aggregate distributions to shareholders of US$173 million, consisting of a US$125 million disbursement on June 30, 2003, US$15 million on December 5, 2003, and US$33 million on May 13, 2004. The accumulated distributions are equivalent to a 10% yield, based on the closing price of the TV Azteca ADR on September 28, 2004. The distributions made to date, when added to the upcoming US$22 million and US$210 million disbursements, will represent an aggregate amount of US$405 million cash disbursements, equivalent to a 22% yield on the September 28, 2004 ADR closing price. The Company noted that the newly approved distributions reflect the solid track record and prospects for cash generation of TV Azteca, and confirm the board's commitment to the company's strategic cash plan. The distributions will be subject to approval at the shareholders' meeting to be held in October. Under the cash plan, TV Azteca has also reduced its total debt by US$79 million, on a nominal U.S. dollar basis, since June 2003. Additionally the company has announced the prepayment of its US$300 million 101/2% note due February 15, 2007, during the fourth quarter of 2004, with resources coming from the execution of a committed secured credit line denominated in pesos with Banco Inbursa, S.A., which represents extended maturity and an anticipated improvement in financial costs. The Company also noted the advances on its cash plan further strengthen its overall capital structure, reduce financial expense and contribute to increased free cash generation, while distributing to shareholders the benefits of its solid profitability. TV Azteca operates two national television networks in Mexico, Azteca 13 and Azteca 7, through more than 300 owned and operated stations across the country. TV Azteca affiliates include Azteca America Network, a broadcast television network focused on the rapidly growing US Hispanic market; and Todito.com, an Internet portal for North American Spanish speakers. CONTACT: TV Azteca S.A. Investor Relations Mr. Bruno Rangel Phone: 5255 1720 9167 e-mail: jrangelk@tvazteca.com.mx Mr. Omar Avila Phone: 5255 1720 0041 e-mail: oavila@tvazteca.com.mx Media Relations Mr. Tristan Canales Phone: 5255 1720 5786 e-mail: tcanales@tvazteca.com.mx Mr. Daniel McCosh Phone: 5255 1720 0059 e-mail: dmccosh@tvazteca.com.mx ================================= T R I N I D A D & T O B A G O ================================= FNCU VENTURE CAPITAL: Transaction Raises Concerns in Senate ----------------------------------------------------------- FNCU Venture Capital Company and its fund manager, Financial Concepts Ltd., comes under fire as senators asked for a full inquiry into alleged financial irregularities at the two companies. The Trinidad Express reports that key shareholders have voiced their complaints regarding questionable transactions entered by Financial Concepts. These transactions include a US$2.17 million outlay to Salybia Village Spa that has been the object of an investigation by industry regulator Venture Capital Incentive Programme (VCIP) and the Securities and Exchange Commission. At the hearing on the Venture Capital Amendment Bill on Tuesday, senator Wade Mark of the Opposition Business in the Senate claimed that millions of investors' money is now at risk. He adds that Financial Concept's operations have raised doubts on the status of the investors' money. During the same hearing, Independent Senator Dana Seetahal asked for a probe into FCL's operations. She stressed the importance of finding the truth behind the fund manager's actions concerning the capital of FNCU Venture Capital Company and in particular the investment in Salybia. The Stock Exchange has suspended trading of the company's shares pending the outcome of the investigations. ================= V E N E Z U E L A ================= * Venezuela: Reports Clearing Spreads, Results of Invitation ------------------------------------------------------------ The Bolivarian Republic of Venezuela (the "Republic") announced Wednesday that it expects to issue approximately U.S.$710,000,000 aggregate principal amount of its 8.5% Global Bonds due 2014 (the "Global Bonds") pursuant to its previously announced invitation (the "Invitation") to holders of several series of its outstanding Brady bonds (together, the "Old Bonds") to submit offers to exchange the Old Bonds for Global Bonds. The Republic also announced Wednesday that it will also issue and sell approximately U.S.$790,000,000 aggregate principal amount of Global Bonds pursuant to an underwritten offering (the "Cash Offering" and, together with the Invitation, the "Global Bond Offering"). The aggregate principal amount of Global Bonds expected to be issued in the Global Bond Offering is approximately U.S.$1,500,000,000. Capitalized terms used but not defined in this notice are defined in the prospectus supplement, dated September 22, 2004, describing the Global Bond Offering and the terms of the Global Bonds. The aggregate principal amount of Global Bonds to be issued is subject to final confirmation by the exchange agent. The Invitation expired on September 28, 2004 at 4:00 P.M., New York City time. The Global Bonds will mature on October 8, 2014 and will bear interest at a fixed rate of 8.5% per year. Interest will be computed on the basis of a 360-day year comprised of twelve 30- day months and will be paid in U.S. dollars semi-annually in arrears in equal installments on April 8 and October 8, commencing on April 8, 2005. The Global Bond New Issue Price per U.S.$1,000 principal amount of Global Bonds will be U.S.$950.56. The Global Bond New Issue Price was determined as to result in a yield to maturity of the Global Bonds on the Settlement Date equal to the sum of: (i) the UST Benchmark Rate of 4.069% (i.e., the yield to maturity corresponding to the bid-side price, as reported on Telerate page 500 as of 10:00 A.M., New York City time, Wednesday for the U.S. Treasury 4.25% Bond due August 15, 2014), plus (ii) the New Issue Spread selected by the Republic of 520 basis points (bps). The Republic has selected 520 bps as the FLIRB Clearing Spread and 520 bps as the DCB Clearing Spread. The following table sets forth: -- the Currency Exchange Rate for each series of Old Bonds; -- the Exchange Ratio for each series of Old Bonds; and -- the aggregate principal amount of each series of Old Bonds to be acquired in exchange for Global Bonds pursuant to accepted exchange offers. Series of Currency Exchange Ratio Aggregate Principal Old Bonds Exchange Rate for each Amount of Old Bonds for each Series of Accepted for Series of Old Bonds Exchange Old Bonds for Global Bonds* Front-Loaded Interest Reduction Bonds Due 2007, USD Series A 1 0.2505 U.S.$531,250,000 Front-Loaded Interest Reduction Bonds Due 2007, USD Series B 1 0.2505 U.S.$317,971,000 Debt Conversion Bonds Due 2007, USD Series DL 1 0.3507 U.S.$1,153,130,000 Debt Conversion Bonds Due 2008, USD Series IL 1 0.4117 U.S.$206,250,000 Front-Loaded Interest Reduction Bonds Due 2007, Deutsche Mark 0.6300 0.6628 DM 900,000 Debt Conversion Bonds Due 2007, Deutsche Mark 0.6300 0.6628 DM 3,355,000 Front-Loaded Interest Reduction Bonds Due 2007, Pounds Sterling 1.8013 0.4512 GBP 3,243,500 Debt Conversion Bonds Due 2007, Pounds Sterling 1.8013 0.6317 GBP -- Front-Loaded Interest Reduction Bonds Due 2007, Swiss Franc 0.7945 0.1990 CHF 20,000,000 * Assumes all of the exchange offers have been validly submitted and will settle pursuant to the Invitation. To the extent certain failures occur, these numbers may be revised. The clearing numbers for the Old Bonds are as follows: Bond Series Common Code ISIN Number Front-Loaded Interest Reduction Bonds Due 2007, USD Series A 002943930 XS0029439303 Front-Loaded Interest Reduction Bonds Due 2007, USD Series B 003438040 XS0034380401 Debt Conversion Bonds Due 2007, USD Series DL 002943549 XS0029435491 Debt Conversion Bonds Due 2008, USD Series IL 002945606 XS0029456067 Front-Loaded Interest Reduction Bonds Due 2007, Deutsche Mark 003807720 DE0004019724 Debt Conversion Bonds Due 2007, Deutsche Mark 004224558 DE0004019732 Front-Loaded Interest Reduction Bonds Due 2007, Pounds Sterling 002943875 XS0029438750 Debt Conversion Bonds Due 2007, Pounds Sterling 002947048 XS0029470480 Front-Loaded Interest Reduction Bonds Due 2007, Swiss Franc 002943662 XS0029436622 In addition, holders of Old Bonds with certain ISIN numbers that are different than those listed in the table above were also allowed to participate in the exchange. Application has been made to list the Global Bonds on the Luxembourg Stock Exchange. The Global Bonds have been accepted for clearance through DTC's book-entry settlement system, Euroclear System and Clearstream Banking, societe anonyme (Common Code: 020241519; ISIN: US922646BM57; and CUSIP No.: 922646BM5). The Global Offering is scheduled to settle on October 8, 2004. The Dealer Managers for the Invitation are: Barclays Capital Inc. Merrill Lynch & Co. 200 Park Avenue, 5th Floor 4 World Financial Center New York, New York 10166 New York, New York 10080 Inside the U.S.: Toll-Free Inside the U.S.: Toll-Free 1-866-307-8991 1-888-654-8637 Outside the U.S.: Call Collect Outside the U.S.: Call Collect 212-412-4072 212-449-4914 *********** 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 * * *