/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/041019.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 Tuesday, October 19, 2004, Vol. 5, Issue 207 Headlines A R G E N T I N A AIRSYS S.A.: Court OKs Reorganization Plea ARKOPSCA S.A.: Creditor's Bankruptcy Petition Gets Court OK AUTO RADIO: Court Declares Company Bankrupt BANCO FRANCES: Argentina's Default Status Hinders Lending D AGOVAC: Verification Deadline Moved ESTABLECIMIENTO METALURGICO: Gets Liquidation Order From Court FOTO CLUB ARGENTINO: Court Reschedules Submission Deadlines LA NUBECITA: Court Authorizes Reorganization LAMINACION NORTE: Enters Bankruptcy on Court Orders MASTELLONE HERMANOS: Extends Debt Offer to October 19 MIEL LAS HERAS: Liquidates Assets to Pay Debts MULTICANAL: Antitrust Authorities Order HBO To Restore Channels PEHUEN VIAL: Declared Bankrupt by Court POLIPEL S.A.: Begins Liquidation Process SANCOR: Reaches Debt Agreement With Creditors TRAFIND S.A.I.C: Proceeds to Restructure Debt B E R M U D A AHL GUARANTEED: Members Resolve to Wind-Up Voluntarily AUGUST TRADING: To Hold Final General Meeting FOSTER WHEELER: Issues Class B Warrants GLOBAL FUTURES FUND: Appoints Beverly Mathias as Liquidator INTERNATIONAL MANAGEMENT: Names Norman Holbrow as Liquidator LORAL SPACE: Finalizes Revised Settlement Plan MINT GUARANTEED: Members Appoint Liquidator B R A Z I L INEPAR: Cemar, Celpa Stake Sales Get Stockholder Approval LIGHT: Strikes Debt Rescheduling Accord With Bank Creditors SKY BRASIL: S&P Places Ups Ratings to Watch Positive C O L O M B I A TELECOM: Sells Comcel Stake for Undisclosed Amount E L S A L V A D O R BANCO MULTISECTORIAL: Fitch Affirms Ratings J A M A I C A KAISER ALUMINUM: Reaches Pension Settlement With PBGC M E X I C O AHMSA: No. 3 Furnace Returns to Production GRUPO ELEKTRA: Retires All Debt, S&P Withdraws Ratings GRUPO MEXICO: Workers Go On Strike Over Payment Conflict INNOVA: S&P Places Ratings On Watch Positive MAXCOM TELECOMUNICACIONES: Revenue, EBITDA Gains Continue P E R U LANPERU: Aviation Authorities Lift Flight Suspension U R U G U A Y PLUNA: British Firm Offers to Buy Varig's Stake - - - - - - - - - - ================= A R G E N T I N A ================= AIRSYS S.A.: Court OKs Reorganization Plea ------------------------------------------ Buenos Aires-based refrigeration equipment supplier Airsys S.A. received approval to enter "concurso preventivo" proceedings from court no. 4 of the city's civil and commercial tribunal, Infobae reports. During reorganization, the Company will be able to draft a settlement plan for its creditors in order to prevent a complete liquidation of its assets. Clerk no. 8 assists the court on this case. CONTACT: Airsys S.A. Viamonte 1454 Buenos Aires ARKOPSCA S.A.: Creditor's Bankruptcy Petition Gets Court OK ----------------------------------------------------------- Murchison S.A. Estibajes and Cargas I.C. successfully sought a bankruptcy ruling against Arkopsca S.A.. Judge Ballerini, serving for court no. 24 of Buenos Aires' civil and commercial tribunal, declared the Company "Quiebra" in response to the creditor's motion. Local daily La Nacion reports that the fishing company will now start the bankruptcy process with Mr. Juan Sosa as trustee. Creditors of the Company must submit their proofs of claim to the trustee before December 20 for authentication. Failure to do so will mean disqualification from the payments that will be made after the Company's assets are liquidated. The creditors petitioned the court after Arkopsca failed to pay debts amounting to US$45,018. Dr. Medina, clerk no. 47, assists the court on the case that will culminate in the liquidation of all of its assets. CONTACT: Arkopsca SA Teniente General Juan D. Peron 1615 Buenos Aires Mr. Juan Sosa, Trustee Viamonte 1783 Buenos Aires AUTO RADIO: Court Declares Company Bankrupt ------------------------------------------- Judge Villanueva, working for court no. 23 of Buenos Aires' civil and commercial tribunal, declared local company Auto Radio Canning S.R.L. "Quiebra", relates La Nacion. The court approved the bankruptcy petition filed by Banco Comafi S.A. Fiduciario del Fideicomiso Acex, whom the Company failed to pay debts totaling US$8,810. The Company will undergo the bankruptcy process with Mr. Ricardo Agrogue as its trustee. Creditors are required to present their proofs of claims to the trustee for verification before December 20. Creditors who fail to have their claims authenticated by the said date will be disqualified from the payments that will be made after the Company's assets are liquidated at the end of the bankruptcy process. Dr. Robledo, clerk no. 46, assists the court on the case. CONTACT: Auto Radio Canning S.R.L. Avenida Scalabrini Ortiz 1925 Buenos Aires Mr. Ricardo Agrogue, Trustee Bouchard 468 Buenos Aires BANCO FRANCES: Argentina's Default Status Hinders Lending --------------------------------------------------------- BBVA Banco Frances (NYSE: BFR), one of the three largest private-sector banks in Argentina, is looking to take up long- term lending again, reports Business News Americas. But that seems to be a remote reality as the country's banks have focused exclusively on short-term lending since they began lending again following the severe crisis in late 2001 and 2002. The average maturity of the bank's time deposits is only 40 days and without access to longer-term funding abroad "then it's difficult to talk about long-term lending," the official said, adding that solving Argentina's default status is a fundamental condition to recover local long-term financing as it will boost local depositors' confidence and open international markets. Spanish financial group BBVA (NYSE: BBV) controls Banco Frances. CONTACT: Maria Elena Siburu de Lopez Oliva Investor Relations Manager Phone: (5411) 4341 5035 E-mail: mesiburu@bancofrances.com.ar Maria Adriana Arbelbide Investor Relations Phone: (5411) 4341 5036 E-mail: marbelbide@bancofrances.com.ar D AGOVAC: Verification Deadline Moved ------------------------------------- Court no. 15 of Buenos Aires' civil and commercial tribunal changed the verification deadline for the D Agovac S.R.L. bankruptcy case to December 15, reports Infobae. Creditors must submit proof of their claims to trustee Carlos Alberto Lausi before the said deadline in order to qualify for the post-liquidation payments that will be made. Clerk no. 30 assist the court with the liquidation proceedings. CONTACT: Mr. Carlos Alberto Lausi, Trustee Avda Cordoba 456 Buenos Aires ESTABLECIMIENTO METALURGICO: Gets Liquidation Order From Court -------------------------------------------------------------- Local mining company Establecimiento Metalurgico J.G. S.R.L. proceeds to liquidate its assets after receiving authorization from court no. 26 of Buenos Aires' civil and commercial tribunal, says Infobae. The report did not provide dates for key events in the bankruptcy proceedings or the name of the trustee assigned to on the case. The city's clerk no. 52 assists the court with the bankruptcy process. CONTACT: Establecimiento Metalurgico J.G. S.R.L. General Enrique Martinez 1350 Buenos Aires FOTO CLUB ARGENTINO: Court Reschedules Submission Deadlines ----------------------------------------------------------- Court no. 26 of Buenos Aires' civil and commercial tribunal reset key events in the Foto Club Argentino Asociacion Civil bankruptcy case to these dates: 1. Claims verification deadline - December 6, 2004 2. Submission of Individual Reports - February 21, 2005 3. Submission of the General Report - April 6, 2005 Mr. Enrique Luis Cabello supervises the Company's liquidation as the court-appointed trustee. Clerk no. 52 assists the court on this case. CONTACT: Mr. Enrique Luis Cabello, Trustee Aguaribay 6736 Buenos Aires LA NUBECITA: Court Authorizes Reorganization -------------------------------------------- La Nubecita Blanca S.R.L. will begin reorganizing its financial affairs following the approval of its petition by court no. 1 of Lomas de Zamora's civil and commercial tribunal. The process allows allow the company to negotiate a settlement with its creditors in order to avoid a complete liquidation. Mr. Jose Angel Tsanis will oversee the reorganization proceedings as the court-appointed trustee. He will verify creditors' claims until December 7. Afterwards, the validated claims will be presented in court as individual reports on February 16, 2005. 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 March 30, 2005. 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 June 16, 2005. CONTACT: La Nubecita Blanca S.R.L. Madariaga 374/86 Avellaneda Mr. Jose Angel Tsanis, Trustee Mariano Acosta 137 Avellaneda LAMINACION NORTE: Enters Bankruptcy on Court Orders --------------------------------------------------- Laminacion Norte S.R.L. enters bankruptcy protection after court no. 9 of Buenos Aires' civil and commercial tribunal, with the assistance of clerk no. 17, ordered the company's liquidation. 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. Jaime Luis Jeiman as trustee. He will be verifying creditors' proofs of claims until the end of the verification phase on December 15. 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 March 9, 2005 followed by the general report, which is due on April 26, 2005. Steel firm Acindar S.A., which has US$20,007 worth of receivables from the Company, requested the bankruptcy. CONTACT: Mr. Jaime Luis Jeiman, Trustee Lavalle 1312 Buenos Aires MASTELLONE HERMANOS: Extends Debt Offer to October 19 ----------------------------------------------------- Argentine dairy company Mastellone Hermanos extended the final extension of its US$330 million debt-restructuring offer from Oct. 14 to Oct. 19 to give more time to debt holders to sign on, says Dow Jones Newswires. The company had sweetened the terms of its offering in mid- September, at which time it could count on 88.3% acceptance. One month later, it had secured a total of 97.66% support, Mastellone said Friday in a press release. When it sweetened the terms of the offering, Mastellone brought forward the maturity date of one of the new bonds to be issued to 2012 from 2014, upped its coupon to 8% from 7%, and set the start date for accrued interest at July 31, 2004, rather than the closing date of the offer. At that time, the company also withdrew a plan to pay out a separate floating-rate bond due in 2011 early if it had excess cash to do so. Finally, it also extended a cash payment offer worth 60% of original holdings to both qualified institutional investors and individual investors in the U.S. The company has said in the past that it won't pursue its out- of-court debt restructuring agreement, known as an APE, if acceptance reaches 98%. Under APE rules, two-thirds approval from creditors allows a company to submit its offer for legal clearance, which then makes the repayment terms binding on all creditors. As of midnight Thursday, the company said it had received commitments from about US$217.3 million, or 96.58%, of the US$225 million in bonds subject to the restructuring. The company had already received 100% acceptance from banks holding about US$103.9 million in bank debt. Combined, this amounts to overall support of 97.66%. MIEL LAS HERAS: Liquidates Assets to Pay Debts ---------------------------------------------- Buenos Aires-based Miel Las Heras S.R.L. will begin liquidating its assets following the pronouncement of the city's court no. 26 that the company is bankrupt, reports Infobae. The ruling places the company under the supervision of court- appointed trustee, Mr. Ricardo Luis Bonifatti. The trustee will verify creditors' proofs of claims until December 2. Next, the validated claims will be presented in court as individual reports on February 14, 2005. Mr. Bonifatti 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 28, 2005. The bankruptcy process will end with the disposal company assets in favor of its creditors. CONTACT: Miel Las Heras S.R.L. Las Heras 2219 Buenos Aires Mr. Ricardo Luis Bonifatti, Trustee Avda. Corrientes 123 Buenos Aires MULTICANAL: Antitrust Authorities Order HBO To Restore Channels --------------------------------------------------------------- Argentina's National Commission for Defense of Competition ordered U.S.-based pay TV programmer and distributor HBO Latin America Group to continue providing channels to local cable operator Multicanal. According to reports, the ruling grants a request by Multicanal and can be appealed in court. On Oct. 9, HBO suspended 10 channels from Multicanal because the Argentine cable company hadn't made a sufficient commitment to eliminate piracy. HBO also said Multicanal had continued to illegally broadcast the channels. The Argentine provider hit back at HBO, saying the content provider had - without reason - hiked its rates by 110% and up to 242% for some channels. The local company further said it has met all its payment obligations and has, in fact, presented a proposal for digital conversion to HBO, which hasn't responded. Multicanal said it was "unacceptable that (HBO) seeks to conceal its abusive commercial conduct beneath unfounded accusations of Multicanal's supposed tolerance regarding piracy. Multicanal has been one of the companies that has given more concrete steps to combat piracy, as much through its own developments and investments as intensely supporting industry initiatives." PEHUEN VIAL: Declared Bankrupt by Court --------------------------------------- Pehuen Vial S.R.L. of Buenos Aires is now "Quiebra" - meaning bankrupt, says Infobae. Court no. 26 of the city's civil and commercial tribunal decreed the Company's bankruptcy. The court, aided by clerk no. 51 will conclude the bankruptcy process by liquidating its assets to repay creditors. CONTACT: Pehuen Vial S.R.L. Avda Rivadavia 882 Buenos Aires POLIPEL S.A.: Begins Liquidation Process ---------------------------------------- Local company Polipel S.A. will begin liquidating its assets after court no. 26 of Buenos Aires' civil and commercial tribunal declared the company bankrupt. Infobae reveals that the bankruptcy process will commence under the supervision of court- appointed trustee Pablo Alberto Amante. The trustee will review claims forwarded by the company's creditors until November 15. After claims verification, the trustee will submit the individual reports for court approval on December 28. The general report submission will follow on March 9, 2005. Clerk no. 51 assists the court on this case. CONTACT: Polipel S.A. Lavalle 1634 Buenos Aires Mr. Pablo Alberto Amante, Trustee Lavalle 1537 Buenos Aires SANCOR: Reaches Debt Agreement With Creditors --------------------------------------------- Argentine dairy cooperative SanCor managed to reach a US$167- million debt restructuring agreement with its creditors. In order to strike the deal, the company had to put its most appreciated asset, its brand, as additional security. This asset will be realeased from liens in the future, as long as SanCor complies with the payment schedule. The rest of the warranties, such as plants and machinery, will expire once the whole debt has been paid off. SanCor's debt dates from the 90s, when the company decided to carry out an ambitious industrial updating plan, which included the purchase of machinery and plant investment. SanCor started to default in payments of its debt after the devaluation of the Argentine peso. Its major creditors are the International Finance Corporation (IFC) Cooperative Centrale Raiffeisen-Boerenleebank B.V., Rabobank International and New York Branch. According to the debt restructuring agreement, the US$167 million will be repaid with two tranches of new notes. TRAFIND S.A.I.C: Proceeds to Restructure Debt --------------------------------------------- Local company Trafind S.A.I.C. received approval to enter "concurso preventivo" proceedings from court no. 18 of Buenos Aires' civil and commercial tribunal, Infobae reports. During reorganization, the Company will be able to draft a settlement plan for its creditors in order to prevent a straight liquidation. Clerk no. 36 assists the court on this case. CONTACT: Trafind S.A.I.C. Av. Pueyrred�n 524 Buenos Aires ============= B E R M U D A ============= AHL GUARANTEED: Members Resolve to Wind-Up Voluntarily ------------------------------------------------------ IN THE MATTER OF THE COMPANIES ACT 1981 and IN THE MATTER OF AHL Guaranteed Real Time Trading Limited The Members of AHL Guaranteed Real Time Trading Limited, acting by written consent without a meeting on October 13, 2004 passed the following resolutions: 1) That the Company be wound up voluntarily, pursuant to the provisions of the Companies Act 1981; and 2) That Beverly Mathias be and is hereby appointed Liquidator for the purposes of such winding-up, such appointment to be effective forthwith. Ms. Mathias, the Liquidator, informs that: - Creditors of AHL Guaranteed Real Time Trading Limited, which is being voluntarily wound up, are required, on or before October 29, 2004 to send their full Christian and Surnames, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their lawyers (if any) to Beverly Mathias at c/o Argonaut Limited, Argonaut House, 5 Park Road, Hamilton HM O9, Bermuda, the Liquidator of the said Company, and if so required by notice in writing from the said Liquidator, and personally or by their lawyers, to come in and prove their debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. - A final general meeting of the Members of AHL Guaranteed Real Time Trading Limited will be held at the offices of Argonaut Limited, Argonaut House, 5 Park Road, Hamilton HM O9, Bermuda, on November 30, 2004 at 9:30 a.m., or as soon as possible thereafter, for the purposes of: 1) Receiving an account laid before them showing the manner in which the winding-up of the Company has been conducted and its property disposed of and of hearing any explanation that may be given by the Liquidator; 2) By resolution determining the manner in which the books, accounts and documents of the Company and of the Liquidator shall be disposed of; and 3) by resolution dissolving the Company. CONTACT: Ms. Beverly Mathias, Liquidator c/o Argonaut Limited Argonaut House, 5 Park Road, Hamilton HM O9, Bermuda AUGUST TRADING: To Hold Final General Meeting --------------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 and IN THE MATTER OF August Trading Limited Notice is hereby given that the Final General Meeting of the Members of August Trading Limited will be held at KPMG Financial Advisory Services Limited, Crown House, 4 Par-la-Ville Road, Hamilton Bermuda on November 15, 2004 at 10:00 p.m. for the following purposes of: 1) receiving an account laid before them showing the manner in which the winding-up of the Company has been conducted and its property disposed of and of hearing any explanation that may be given by the Liquidator; and 2. by Resolution determining the manner in which the books, accounts and documents of the Company and of the Liquidator shall be disposed of; and 3. by Resolution dissolving the Company. FOSTER WHEELER: Issues Class B Warrants --------------------------------------- Foster Wheeler Ltd. (OTCBB: FWLRF) announced that it has distributed on a one-to-one basis the Class B Warrants to the holders of record of the Company's Common Shares at the close of business on September 23, 2004. The Class B Warrants allow the holders to purchase Common Shares or, if the approval of the increase in the authorized Common Shares is not obtained at the shareholder's meeting scheduled to be held on November 29, 2004, Series B Convertible Preferred Shares. Each Class B Warrant becomes exercisable on September 24, 2005, at an exercise price of $0.4689 per Common Share issuable and expires at 5:00 p.m. on September 24, 2007. Following the expiration of the subsequent offering period of its equity-for-debt exchange offer on October 20, 2004, Foster Wheeler will announce the precise number of Common Shares for which each Class B Warrant will become exercisable. The CUSIP number for the Class B Warrants is G36535113. The Company is also providing the following additional information related to securities issued in connection with the exchange offer, which closed on September 24, 2004. Securities Issued in Connection with the Exchange Offer: 1. New Notes Foster Wheeler LLC issued $141,437,250 of Series A New Notes in connection with the exchange offer. The New Notes have a maturity date of September 15, 2011, and an annual coupon rate of 10.359%. Interest on the Series A New Notes began accruing on September 24, 2004, and is payable semi-annually on March 15 and September 15. The CUSIP number for the New Notes is 350250AA4. In addition, $120,000,000 of Series B New Notes were privately placed with a group of institutional investors. These notes have substantially identical terms, including the same interest rate, maturity date, and semi-annual interest payment dates as the Series A New Notes described above. The Company intends to file a registration statement with the Securities and Exchange Commission to offer Series A New Notes that are registered under the Securities Act and eligible for public trading in exchange for the privately placed Series B New Notes. 2. Common Shares The Company also issued 61,243,146 Common Shares in connection with the exchange offer. The issuance of these shares raised the aggregate number of the Company's Common Shares issued as of the closing of the exchange offer to 102,014,706. The CUSIP for the Common Shares is G36535105. 3. Series B Convertible Preferred Shares The Company also issued 599,850 shares of Series B Convertible Preferred Shares in connection with the exchange offer. Provided that the Company's shareholders approve an increase in the number of authorized shares of Common Shares of the Company at a shareholder's meeting currently scheduled to be held on November 29, 2004, each share of Series B Convertible Preferred Shares will be convertible into 1,300 Common Shares. On an as-converted basis, the Series B Convertible Preferred Shares issued equates to 779,805,198 Common Shares. Voting rights of the holders of the Series B Convertible Preferred Shares will be on an as- converted basis. The CUSIP number for the Series B Convertible Preferred Shares is 35024P201. 4. Class A Warrants The Company issued 4,150,014 Class A Warrants to those holders of the 9.00% Preferred Securities that were tendered into the exchange offer. The Class A Warrants allow the holders to purchase Common Shares or, if the approval of the increase in the authorized Common Shares is not obtained, Series B Convertible Preferred Shares. Each Class A Warrant becomes exercisable on September 24, 2005, at an exercise price of $0.4689 per Common Share issuable, and expires on September 24, 2009. Following the expiration of the subsequent offering period of its equity-for-debt exchange offer on October 20, 2004, Foster Wheeler will announce the precise number of Common Shares for which each Class A Warrant will become exercisable. The CUSIP number for the Class A Warrants is G36535121. Securities Issued After the Closing of the Exchange Offer: 1. Management and Director Issuances On October 6, 2004, management was issued 37,674,898 restricted common share awards in accordance with the Company's Management Restricted Stock Plan, of which 27,036,920 were in the form of restricted shares and 10,637,978 were in the form of restricted share units. One third of the restricted awards vest in the fourth quarter of 2005, and the balance vest during the fourth quarter of 2006. The restricted shares have immediate voting rights, and the restricted stock units will give the holders voting rights upon vesting. On October 6, 2004, management also was issued options to purchase 43,103 shares of the Company's Series B Convertible Preferred Shares. If the shareholders affirmatively vote at the shareholder's meeting to increase the number of the Company's Common Shares, each such option to purchase a Convertible Preferred Share would be converted into an option to purchase 1,300 Common Shares. These options have an exercise price of $609.57 (or $0.4689 per Common Share issuable). One third of the options vest in the fourth quarter of 2005, and the balance vest during the fourth quarter of 2006. On October 6, 2004, the Company's Board of Directors approved (i) the grant of 361,298 restricted share units, and (ii) options to purchase 413 Series B Convertible Preferred Shares to the Company's non-employee directors. If the shareholders affirmatively vote at the shareholder's meeting to increase the number of the Company's Common Shares, each such option to purchase a Convertible Preferred Share would be converted into an option to purchase 1,300 Common Shares. The options have an exercise price of $609.57 (or $0.4689 per Common Shares issuable). These non-employee director grants are subject to the approval of the Company's shareholders, who will vote on this matter at the shareholders' meeting currently scheduled for November 29, 2004. If the grants are approved, the options and restricted share units will vest on December 31, 2005. At the close of business on October 6, 2004, the Company had an aggregate of 129,051,626 Common Shares and 599,850 Preferred Shares issued with full voting rights. On an as-converted basis, the aggregate number of Common Shares with voting rights outstanding was 908,856,824. Foster Wheeler Ltd. is a global company offering, through its subsidiaries, a broad range of design, engineering, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, oil and gas, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA. CONTACT: Foster Wheeler Ltd. Media Contact: Ms. Maureen Bingert, 908-730-4444 or Investor Contact: John Doyle, 908-730-4270 or Other Inquiries: 908-730-4000 Web Site: http://www.fwc.com/ GLOBAL FUTURES FUND: Appoints Beverly Mathias as Liquidator ----------------------------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 and IN THE MATTER OF Global Futures Fund III Limited The Members of Global Futures Fund III Limited, acting by written consent without a meeting on October 13, 2004 passed the following resolutions: 1) THAT the Company be wound up voluntarily, pursuant to the provisions of the Companies Act 1981; and 2) THAT Beverly Mathias be and is hereby appointed Liquidator for the purposes of such winding-up, such appointment to be effective forthwith. The Liquidator notifies that: - Creditors of Global Futures Fund III Limited, which is being voluntarily wound up, are required, on or before October 29, 2004 to send their full Christian and Surnames, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their lawyers (if any) to Beverly Mathias at c/o Argonaut Limited, Argonaut House, 5 Park Road, Hamilton HM O9, Bermuda, the Liquidator of the said Company, and if so required by notice in writing from the said Liquidator, and personally or by their lawyers, to come in and prove their debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. - A final general meeting of the Members of Global Futures Fund III Limited will be held at the offices of Argonaut Limited, Argonaut House, 5 Park Road, Hamilton HM O9, Bermuda, on November 30, 2004 at 9:30 a.m., or as soon as possible thereafter, for the purposes of: 1) receiving an account laid before them showing the manner in which the winding-up of the Company has been conducted and its property disposed of and of hearing any explanation that may be given by the Liquidator; 2) by resolution determining the manner in which the books, accounts and documents of the Company and of the Liquidator shall be disposed of; and (3) by resolution dissolving the Company. CONTACT: Ms. Beverly Mathias, Liquidator c/o Argonaut Limited Argonaut House, 5 Park Road, Hamilton HM O9 Bermuda INTERNATIONAL MANAGEMENT: Names Norman Holbrow as Liquidator ------------------------------------------------------------ IN THE MATTER OF THE COMPANIES ACT 1981 and IN THE MATTER OF International Management and Marketing Corporation Limited The Sole Member of International Management and Marketing Corporation Limited, acting by written consent without a meeting on October 12, 2004 passed the following resolutions: 1) THAT the Company be wound up voluntarily, pursuant to the provisions of the Companies Act 1981; and 2) THAT Norman J. Holbrow be and is hereby appointed Liquidator for the purposes of such winding-up, such appointment to be effective forthwith. Mr. Holbrow, in his capacity as Liquidator, notifies that: - Creditors of International Management and Marketing Corporation Limited, which is being voluntarily wound up, are required, on or before October 29, 2004 to send their full Christian and Surnames, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their lawyers (if any) to Norman J. Holbrow, c/o Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, HM DX, Bermuda, the Liquidator of the said Company, and if so required by notice in writing from the said Liquidator, and personally or by their lawyers, to come in and prove their debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. - A final general meeting of the Sole Member of International Management and Marketing Corporation Limited will be held at The Bank of Bermuda, 9 Compass Point, Bermudiana Road, Hamilton HM 11, Bermuda on November 19, 2004 at 9:30 a.m. or as soon as possible thereafter, for the purposes of: 1) receiving an account laid before them showing the manner in which the winding-up of the Company has been conducted and its property disposed of and of hearing any explanation that may be given by the Liquidator; 2) by resolution determining the manner in which the books, accounts and documents of the Company and of the Liquidator shall be disposed of; and 3) by resolution dissolving the Company. CONTACT: Mr. Norman J. Holbrow, Liquidator P. O. Box HM 3211, Hamilton HM NX Bermuda LORAL SPACE: Finalizes Revised Settlement Plan ---------------------------------------------- Loral Space & Communications Ltd. (OTCBB: LRLSQ) and the Creditors' Committee appointed in the chapter 11 cases of Loral and certain of its subsidiaries announced Friday that they reached an agreement on revised economic terms of a proposed plan of reorganization (the "Plan"). The Company expects to file a revised Plan and a Disclosure Statement with the Bankruptcy Court by October 22, 2004. The company expects to exit chapter 11 under current management in the first-quarter of 2005. The Plan, which revises the terms of a Plan previously filed on August 19, 2004, is the product of continued negotiations between the company and the Creditors' Committee and is subject to final documentation and the resolution of certain other issues between the company and the Creditors' Committee and confirmation by the bankruptcy court. It provides, among other things, that: - Loral's two businesses, Space Systems/Loral and Loral Skynet, will emerge intact as separate subsidiaries of reorganized Loral (New Loral). - Space Systems/Loral, the satellite design and manufacturing business, will emerge debt-free. - The common stock of New Loral will be owned by Loral bondholders, Loral Orion bondholders and certain other unsecured creditors. In addition, bondholders of Loral Orion and other unsecured creditors of Loral Orion will receive an aggregate of $200 million in new senior secured notes to be issued by reorganized Loral Skynet, New Loral's satellite services subsidiary. - Loral Orion unsecured creditors also will be offered the right to subscribe to purchase their pro-rata share of $30 million in new senior secured notes to be issued by reorganized Loral Skynet. - Based upon current estimates, creditors of Space Systems/Loral, Loral SpaceCom Corporation and Loral Satellite, Inc. will be entitled to share in a recovery consisting primarily of cash, as well as New Loral common stock that is expected to result in a blended recovery of approximately 33%, subject to significant decrease in the event claims materially exceed current estimates. - New Loral will emerge as a public company and will seek listing on a major stock exchange. - Existing common and preferred stock will be cancelled and no distribution will be made to current shareholders. Once filed, the Plan and Disclosure Statement will be available via the court's website, at http://www.nysb.uscourts.gov/. Please note that a PACER password is required to access documents on the Bankruptcy Court's website. Loral's bankruptcy case number is 03-41710 (RDD). Loral Space & Communications is a satellite communications company. It owns and operates a fleet of telecommunications satellites used to broadcast video entertainment programming, distribute broadband data, and provide access to Internet services and other value-added communications services. Loral also is a world-class leader in the design and manufacture of satellites and satellite systems for commercial and government applications including direct-to-home television, broadband communications, wireless telephony, weather monitoring and air traffic management. CONTACT: Ms. Jeanette Clonan or Mr. John McCarthy Phone: (212) 697-1105 Web Site: http://www.loral.com/ MINT GUARANTEED: Members Appoint Liquidator ------------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 and IN THE MATTER OF Mint Guaranteed Currencies Limited The Members of Mint Guaranteed Currencies Limited, acting by written consent without a meeting on October 13, 2004 passed the following resolutions: 1) THAT the Company be wound up voluntarily, pursuant to the provisions of the Companies Act 1981; and 2) THAT Beverly Mathias be and is hereby appointed Liquidator for the purposes of such winding-up, such appointment to be effective forthwith. Ms. Mathias informs that: - Creditors of Mint Guaranteed Currencies Limited, which is being voluntarily wound up, are required, on or before October 29, 2004 to send their full Christian and Surnames, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their lawyers (if any) to Beverly Mathias at c/o Argonaut Limited, Argonaut House, 5 Park Road, Hamilton HM O9, Bermuda, the Liquidator of the said Company, and if so required by notice in writing from the said Liquidator, and personally or by their lawyers, to come in and prove their debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. - A final general meeting of the Members of Mint Guaranteed Currencies Limited will be held at the offices of Argonaut Limited, Argonaut House, 5 Park Road, Hamilton HM O9, Bermuda, on November 30, 2004 at 9:30 a.m., or as soon as possible thereafter, for the purposes of: 1) receiving an account laid before them showing the manner in which the winding-up of the Company has been conducted and its property disposed of and of hearing any explanation that may be given by the Liquidator; 2) by resolution determining the manner in which the books, accounts and documents of the Company and of the Liquidator shall be disposed of; and 3) by resolution dissolving the Company. CONTACT: Ms. Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road, Hamilton HM O9 Bermuda =========== B R A Z I L =========== INEPAR: Cemar, Celpa Stake Sales Get Stockholder Approval --------------------------------------------------------- Shareholders of Brazilian engineering group Inepar have given their approval to the sale of non-controlling stakes in distributors Cemat and Celpa, reports Business News Americas. The plan, which saw its approval at a meeting on October 7, is part of the company's restructuring to put a lid on its debt that stood at approximately BRL289 million at the end of June. Inepar had been planning to sell the stakes in the distributors since 2000 but had to back down on it because of the 2001-2002 power crisis in Brazil, which spoiled investors' appetite for power ventures. The company is selling an 18.4% stake in center-west distributor Cemat and a 33.7% share in Celpa, a distributor in northern Para state. Inepar plans to raise some BRL231 million (US$81mn) from the sale of its stake in Cemat, Valor Economico newspaper reported, without revealing how much the company wants to get from the sale of its stake in Celpa Brazil's Grupo Rede, which controls Cemat and Celpa, is seen as one of the most potential buyers of Inepar's interests in the distributors. LIGHT: Strikes Debt Rescheduling Accord With Bank Creditors ----------------------------------------------------------- Brazilian power distributor Light Servicos de Eletricidade (E.LSE) signed an agreement in principle with 17 of its creditor banks to lengthen by four years US$660 million in short-term debt, reports Business News Americas. The part of the company's US$1.5-billion total debt would be reduced through a US$350 million capital injection from its French controller Electricte de France (EdF). The remaining US$480 million is made up of long-term debt items with national development bank BNDES and the national treasury, including Brady bonds that mature over the next 20 years. According to Light finances superintendent Ricardo Levy, the agreement includes a BRL740-million loan from BNDES, part of which will be used to pay down US$132 million of the principal with the rest being used to pay down interest. EdF's capital injection writes off debts the company had with its parent company when the latter assumed payment of financial obligations in recent years. EdF's stake is expected to rise to as much as 98% from the current 95%, Levy said. In addition, creditors agreed to convert most of foreign currency-linked debt to local currency debt. Once the agreement is signed, the company's local currency debt will represent 75% of the total debt, up from 25%. The local currency debt will carry interest of 2 percentage points over the interbank lending rate, while the foreign currency debt will be charged at three percentage points over Libor. "Details are being finalized," he said. 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 SKY BRASIL: S&P Places Ups Ratings to Watch Positive ---------------------------------------------------- Standard & Poor's Rating Services placed its 'B-' global scale foreign and local currency ratings on Sky Brasil Servicos Ltda. (Sky) in CreditWatch with positive implications. The CreditWatch listing follows the announcement on Oct. 11, 2004, that Sky and DIRECTV Brazil will be consolidating their local direct-to-home (DTH) satellite TV platforms and reflects Standard & Poor's expectation of stronger commitment--both operational and financial--of DIRECTV to the merged entity. The transaction is part of a more comprehensive set of agreements between the DIRECTV Group Inc. and News Corporation with Grupo Televisa, Globopar, and Liberty Media that will result in the reorganization of the companies' DTH operations in Latin America. "The CreditWatch should be resolved upon confirmation of the merger and the indication that Sky/DIRECTV Brasil will count on financial support from DIRECTV Group to fund one-time expenses related to the merger, and future growth," said Standard & Poor's credit analyst Milena Zaniboni. "On the other hand, the Brazilian operation is expected to show stronger results and gradually become more financially independent, as it benefits from significant synergies." The combined company should also benefit from better negotiation terms in programming and boxes acquisition due to the larger scale of DIRECTV in the region. The CreditWatch outcome will also depend on Standard & Poor's analyzing the combined financial statements of the new entity, as financial information on DIRECTV Brasil is not available. "Assuming additional debt burden from DIRECTV will not be relevant, Standard & Poor's expects to raise the ratings on Sky by one notch to reflect its stronger business profile and incentives for shareholder support," Ms. Zaniboni said. =============== C O L O M B I A =============== TELECOM: Sells Comcel Stake for Undisclosed Amount -------------------------------------------------- State-owned telecommunications company Telecom, which is being liquidated, has struck a deal to sell its 4.3% stake in cellular services company Comcel to America Movil, reports Portafolio. America Movil, which already owns 95.7% of Comcel, is buying the stake for an undisclosed sum. Before its liquidation in June 2003, Telecom valued its shares in Comcel at US$25 million. The Colombian government decided to liquidate Telecom after it chalked up losses of US$42.9 million in 2002. A new firm, called Colombia Telecomunicaciones, has been created from the ashes of the defunct Telecom. ===================== E L S A L V A D O R ===================== BANCO MULTISECTORIAL: Fitch Affirms Ratings ------------------------------------------- Fitch Ratings has affirmed El Salvador's Banco Multisectorial de Inversiones' (BMI) ratings as follows: --Long-term foreign currency 'BB+' (Outlook Negative); --Short-term foreign currency 'B'; --Individual 'C' and support '5'. BMI's ratings reflect its unique position in El Salvador's financial system as one of the few providers of medium- and long-term funds, its strong capital base, asset quality, adequate profitability, market-oriented management, and insulation from public-sector credit risk. The ratings are limited by the bank's small size, its declining loan balances, relatively weak economic environment, as indicated by El Salvador's sub-investment-grade sovereign rating, and significant concentrations given the reduced number of banks BMI can lend to. BMI is a limited purpose credit institution, established in 1994 to promote El Salvador's private-sector economic development. It was spun off from the central bank's development lending division and took over its credit portfolio. Risk of political intervention is low as the bank's success has been a priority for the national development program. The bank's congressional charters and regulation by organic law and the superintendence of the financial system also limit political interference. CONTACT: Akiko Kudo +1-212-908-0819, New York Gustavo Lopez +1-212-908-0853, New York Franklin Santarelli +58-212-286-3356, San Salvador MEDIA RELATIONS: Kenneth Reed +1-212-908-0540, New York ============= J A M A I C A ============= KAISER ALUMINUM: Reaches Pension Settlement With PBGC ----------------------------------------------------- Kaiser Aluminum has executed a settlement agreement with the Pension Benefit Guaranty Corporation (PBGC). The company and the PBGC have agreed, among other things, that: -- Kaiser will continue to sponsor specified pension plans for hourly employees at plants in Los Angeles, Calif.; Tulsa, Okla.; Sherman, Texas; and Bellwood, Va., and will satisfy the estimated $4.4 million minimum funding standard for these plans; -- The PBGC will have an allowed post-petition administrative claim of $14 million, which is expected to be paid upon the consummation of a plan of reorganization for the company or the consummation of a plan for its subsidiary, Kaiser Alumina Australia Corporation, whichever comes first; -- The PBGC will have allowed pre-petition unsecured claims in respect of the three Kaiser-sponsored pension plans that were terminated in the amount of $616 million, which will be resolved in plans of reorganization; -- In respect of its total pre-petition unsecured claims, PBGC's cash recovery from proceeds of Kaiser's sale of its interests in the Alpart alumina refinery in Jamaica and the QAL alumina refinery in Australia will be limited to 32% of the net proceeds distributable to holders of the company's Senior Notes, Senior Subordinated Notes, and the PBGC. The agreement is subject to approval by the U.S. Bankruptcy Court for the District of Delaware. The company expects shortly to file a motion with the Court seeking approval of the agreement. Kaiser's Form 10-Q for the second quarter of 2004 contains additional information related to pension matters. Kaiser Aluminum (OTCBB:KLUCQ) is a leading producer of fabricated aluminum products and owns interests in alumina and primary aluminum assets. =========== M E X I C O =========== AHMSA: No. 3 Furnace Returns to Production ------------------------------------------ Mexican steel maker Altos Hornos de Mexico SA (AHMSA.MX) announced Friday that its spare No. 3 furnace is now back in operation, reports Dow Jones Newswires. The debt-laden company said it spent MXN20 million $1=MXN11.4475) on maintenance to restart the furnace to meet growing demand for steel. The operation of the third furnace will support its current program to produce more than 3 million metric tons of liquid steel a year, while allowing for maintenance to be done on its other two furnaces. Monclova, Mexico-based AHMSA, one of the country's biggest steel producers, has been in default on US$1.8 billion in debt since April 1999. Companies from Russia, the UK and other countries have expressed interest in acquiring AHMSA in light of a resurgence in the global steel industry. CONTACT: AHMSA Prolongacion B. Juarez s/n, Monclova , Coahuila 25770 Mexico http://www.AHMSA.com Phone: +52 86 33 81 72 Fax: +52 86 33 65 66 Contacts: Alonso Ancira Elizondo, CEO, Vice Chairman, Pres/CEO Jorge Ancira Elizondo, Chief Financial Officer Manuel Ancira Elizondo, Chief Operating Officer GRUPO ELEKTRA: Retires All Debt, S&P Withdraws Ratings ------------------------------------------------------ Standard & Poor's Ratings Services withdrew its 'B+' local and foreign currency corporate credit ratings on Mexico-based Grupo Elektra S.A. de C.V. (Elektra). "The ratings were withdrawn at the company's request following the payment in second-quarter 2004 of the $275 million bond due 2008, which represented all of Elektra's debt rated by Standard & Poor's," said Standard & Poor's credit analyst Federico Mora. GRUPO MEXICO: Workers Go On Strike Over Payment Conflict -------------------------------------------------------- Workers at Grupo Mexico's Cananea copper mine walked off the job Friday, accusing the company of not paying them the equivalent of 5% of its equity promised 15 years ago. The payment is related to the privatization of Cananea and Grupo Mexico's other major Mexican mine, La Caridad. The National Mining, Metallurgical and Similar Workers Union said Grupo Mexico is offering to make the payment at the value the shares had 15 years ago, while the union is demanding payment at the current value. The strike comes at an inopportune time for Grupo Mexico, which is also in contract negotiations with workers at its U.S. mining unit Asarco and is hoping to get shareholder approval to merge its Mexican mining operations with Southern Peru Copper Corp., of which Grupo Mexico owns 54 percent. The union, which has among its members workers at other mining and metals companies, said Friday it will seek support for the strike from other mining chapters. INNOVA: S&P Places Ratings On Watch Positive -------------------------------------------- Standard & Poor's Ratings Services placed its 'B+' global scale foreign and local currency ratings on Innova S. de R.L. de C.V. (Innova) on CreditWatch with positive implications. The CreditWatch listing follows the announcement made on Oct. 11, 2004 of the upcoming closing of Galaxy Mexico's (dba DirecTV Mexico) operations and the consequent change in Innova's (dba Sky Mexico) competitive environment, as well as the future restructuring of Innova's stockholder composition. These developments will cause an intense marketing and promotion effort by Innova to attract DirecTV Mexico's current subscribers. "The CreditWatch listing should be resolved upon a better assessment of Innova's marketing and promotion strategy to attract DirecTV Mexico's subscribers and the expenses associated with such an effort," said Standard & Poor's credit analyst Manuel Guerena. MAXCOM TELECOMUNICACIONES: Revenue, EBITDA Gains Continue --------------------------------------------------------- The number of lines in service at the end of 3Q04 increased 13% to 154,968 lines, from 137,222 lines at the end of 3Q03, and 5% when compared to 147,238 lines in service at the end of 2Q04. Out of the total outstanding lines at the end of 3Q04, 11,320 lines, or 7% were from Wholesale customers, which compares to 6,920 lines, or 5% at the end of 3Q03, and 9,940 lines, or 7% at the end of 2Q04. During 3Q04 line construction was higher by almost three times at 12,816 lines, from 3,513 constructed lines in the same period of 2003; and by 69% when compared to 7,587 constructed lines during 2Q04. During 3Q04, 14,655 new lines were installed, 26% above the 11,650 lines installed during 3Q03. When compared to 2Q04, the number of installations increased 12% from 13,105 lines. (1) During 3Q04, the monthly churn rate was 2.0%, lower than the 2.6% monthly average churn during 3Q03. When compared to 2Q04, churn rate increased from 1.9%. Voluntary churn in 3Q04 resulted in the disconnection of 2,717 lines, a rate of 0.6%, which is the same than rate registered in 2Q04 with 2,332 disconnected lines. Involuntary churn resulted in the disconnection of 5,588 lines, a rate of 1.3%, which is higher than the 5,334 disconnected lines, or 1.3% during 2Q04. CUSTOMERS: Total customers grew 11% to 111,444 at the end of 3Q04, from 100,432 at the end of 3Q03, and 5% when compared to 106,447 customers as of the end of 2Q04. The growth in number of customers by region was distributed as follows: (i) in Mexico City customers increased by 9% from 3Q03 and 4% when compared to 2Q04; (ii) in Puebla customers grew 11% from 3Q03 and 3% when compared to 2Q04; and, (iii) in Queretaro, the number of customers increased 45% from 3Q03 and 50% when compared to 2Q04. The change in the number of customers by category was the following: (i) business customers increased by 3% from 3Q03 and 1% when compared to 2Q04; and, (ii) residential customers increased by 11% from 3Q03 and by 5% from 2Q04. REVENUES: Revenues for 3Q04 increased 12% to Ps$223.0 million, from Ps$199.7 million reported in 3Q03. Voice revenues for 3Q04 increased 7% to Ps$181.1 million from Ps$169.1 million during 3Q03, driven by a 10% increase in voice lines together with a 1% increase in ARPU. Data revenues for 3Q04 were Ps$11.5 million and contributed 5% of total revenues; during 3Q03 data revenues were Ps$6.1 million. Wholesale revenues for 3Q04 were Ps$30.4 million, a 24% increase from Ps$24.5 million in 3Q03. Revenues for 3Q04 increased 7% to Ps$223.0 million, from Ps$207.5 million reported in 2Q04. Voice revenues for 3Q04 increased 4% to Ps$181.1 million, from Ps$173.8 million during 2Q04. Data revenues in 3Q04 increased 30% to Ps$11.5 million from Ps$8.8 million during 2Q04. During 3Q04, revenues from Wholesale customers increased 22% to Ps$30.4 million, from Ps$24.8 million in 2Q04. COST OF NETWORK OPERATION: Cost of Network Operation in 3Q04 was Ps$79.8 million, an 18% increase when compared to Ps$67.7 million in 3Q03. Over the same period, outbound traffic grew 24%, showing an improvement on a cost per minute basis. The Ps$12.1 million increase in Cost of Network Operation was generated by: (i) Ps$7.8 million, or 16% increase in network operating services, mainly driven by Ps$3.2 million and Ps$2.4 million higher long distance and calling party pays interconnection charges respectively, as traffic increased and a higher number of lines were in service; Ps$1.9 million higher cost of circuits and ports; and, Ps$0.3 million higher cost of other services; (ii) Ps$4.5 million, or 28% increase in technical expenses basically as a result of higher maintenance costs; (iii) Ps$1.5 million or 44% decrease in installation expenses and cost of disconnected lines; and, (iv) Ps$1.4 million related to the sale of telecommunications equipment to one single customer under a lease of capacity agreement (see "Maxcom Telecomunicaciones 4th Quarter 2003 and full year 2003 results" released on April 16, 2004). Cost of Network Operation increased 6% quarter-over-quarter when compared to Ps$75.3 million in 2Q04. Network operating services increased Ps$2.2 million or 4%, mainly driven by Ps$0.8 million higher calling party pays charges and Ps$0.9 million higher long distance reselling cost as a result of increased traffic, and, Ps$0.6 million of higher leases of circuits. Technical expenses increased Ps$0.9 million or 5%, and installation expenses and cost of disconnected lines remained at Ps$1.9 million. When compared cost per minute on a traffic-related cost basis, cost per minute improved as outbound traffic increased 12%. Gross margin at 64% in 3Q04 decreased from 66% reported in 3Q03 and remained at the same level that the one reported in 2Q04. SG&A: SG&A expenses were Ps$96.8 million in 3Q04, a 2% increase from Ps$95.2 million in 3Q03. The increase was mainly driven by: (i) higher salaries, wages and benefits of Ps$3.6 million; (ii) higher consulting fees of Ps$3.6; and, (iii) higher advertising of Ps$3.8 million. Higher expenses were partially offset by: (i) lower bad debt reserve of Ps$3.5 million; (ii) lower sales commissions of Ps$3.5 million, (iii) lower general and insurance expenses of Ps$1.6 million; and, (iv) lower leases and maintenance expenses of Ps$0.7 million. SG&A expenses in 3Q04 increased 9%, from Ps$88.7 million in 2Q04. This variation was mainly driven by: (i) higher salaries, wages and benefits of Ps$4.6 million; (ii) higher bad debt reserve of Ps$3.7 million; (iii) higher consulting fees of Ps$1.4 million; (iv) higher advertising expenses of Ps$1.4 million; and, (v) higher leases and maintenance of Ps$0.4 million. Higher expenses were partially offset by: (i) lower sales commissions of Ps$2.5 million; and, (ii) lower general and insurance expenses of Ps$1.0 million. EBITDA: EBITDA for 3Q04 increased 26% to Ps$46.3 million, from Ps$36.8 million reported in 3Q03. When compared to 2Q04, EBITDA grew 7% from Ps$43.5 million. EBITDA margin improved from 18% in 3Q03 to 21% in 2Q04, and remained at 21% in 3Q04. This is the 6th consecutive quarter that Maxcom reports positive EBITDA. Cumulative EBITDA for the last four quarters was Ps$180.7 million. CAPITAL EXPENDITURES: Capital Expenditures for 3Q04 were Ps$105.6 million, a three- fold increase when compared to Ps$26.1 million in 3Q03, and a 69% increase when compared to Ps$62.4 million in 2Q04. CASH POSITION: Maxcom's cash position at the end of 3Q04 was Ps$41.6 million in Cash and Cash Equivalents, compared to Ps$39.6 million at the end of 3Q03. Cash and Cash Equivalents at the end of 2Q04 were Ps$40.1 million. RECENT DEVELOPMENTS: On October 6, 2004, Maxcom announced the expiration of the exchange offer for its Senior Notes due 2007; the exchange offer closed on October 8, 2004. Pursuant to the terms of the exchange offer, for the proposed amendments to the indenture to be adopted, holders of at least a majority in aggregate principal amount of the Old Notes, other than Old Notes held by Maxcom or any affiliate of Maxcom must have consented to such amendments. As of the expiration date, Maxcom received consents to the proposed amendments in the aggregate principal amount of Old Notes (other than Old Notes held by Maxcom or any affiliate of Maxcom) of $36,408,282, which represented 92% of the total principal amount of outstanding Old Notes (other than Old Notes held by Maxcom or any affiliate of Maxcom), therefore fulfilling the condition for the adoption of the proposed amendments. With the completion of this transaction, Maxcom's indebtedness was substantially reduced by 71% to $52,825,668 from $179,213,590.The Company also significantly improved its debt profile by extending its maturity dates. The following tables set forth Maxcom's cash and cash equivalents and capitalization on a Pro Forma consolidated basis as of September 30, 2004 and Maxcom's debt maturity dates, as adjusted to give effect to the consummation of the exchange offer. Please refer to the Offering Circular dated September 8, 2004, for further details on the adjustments. Actual Pro Forma Pesos Dollars Pesos Dollars Thousands of constant September 30, 2004 Pesos and thousands of U.S. dollars Long term debt: New Notes 412,126 36,118 Old Notes 1,912,686 167,624 58,398 5,118 13.75% Series B Senior Notes due 2007 132,249 11,590 132,249 11,590 Warrants Cost, net (1,754) (154) (1,754) (154) Notes Payable 12,928 1,133 12,928 1,133 Total debt 2,056,109 180,193 613,947 53,805 Shareholders' equity Capital Stock and additional paid in capital 1,813,798 158,957 3,255,960 285,345 Accumulated deficit (1,717,136) (150,486) (1,717,136) (150,486) Total shareholders' equity 96,662 8,471 1,538,824 134,859 Total capitalization 2,152,771 188,664 2,152,771 188,664 DEBT MATURITY DATES (Thousands of US Dollars) March-07 April-07 October-09 Total Debt as of September 30, 2004 13.75% Series B Senior Notes 11,590 11,590 0/10% Senior Notes 167,624 167,624 Total 167,624 11,590 - 179,214 Debt after Exchange Offer 13.75% Series B Senior Notes 11,590 11,590 0/10% Senior Notes 5,118 5,118 Senior Step-Up Notes 36,118 36,118 Total 5,118 11,590 36,118 52,826 (1) In our reports for the 1st and 2nd quarters of 2004, we reported the number of lines installed including Wholesale lines, per our discussion on reporting methodology we should have reported installed lines without Wholesale (See "Maxcom Telecomunicaciones announces 3rd Quarter 2002 Results" released on October 29, 2002). The number of installed lines without Wholesale, as well as the previously reported numbers are shown in the following table: As Reported w/o Reported as a reference In the Wholesale w/o Lines Installed period Earnings Reported Wholesale Report 1st Quarter 2003 14,911 14,911 1Q04 15,591 14,911 2nd Quarter 2003 13,930 13,930 2Q04 15,220 13,930 3rd Quarter 2003 11,650 11,650 4th Quarter 2003 9,694 9,694 1Q04 9,694 9,694 1st Quarter 2004 10,029 9,789 2Q04 10,029 9,789 2nd Quarter 2004 16,285 13,105 Maxcom Telecomunicaciones, S.A. de C.V., headquartered in Mexico City, Mexico, is a facilities-based telecommunications provider using a "smart-build" approach to deliver last-mile connectivity to micro, small and medium-sized businesses and residential customers in the Mexican territory. Maxcom launched commercial operations in May 1999 and is currently offering local, long distance and data services in greater metropolitan Mexico City, Puebla and Queretaro. To see financial statements: http://bankrupt.com/misc/MAXCOM_TELECOMUNICACIONES.htm ======= P E R U ======= LANPERU: Aviation Authorities Lift Flight Suspension ---------------------------------------------------- LanPeru (NYSE:LFL) resumed its national and international operations at 3 p.m. Friday as authorized by the aviation authorities in Peru. LanPeru was required to temporarily suspend its operations earlier Friday due to a judicial mandate. LanPeru accepted the decision issued by a local judge in the city of Arequipa, Peru, despite the fact that the company believes the ruling was arbitrary and unjust. But the civil aviation authorities and the Transport Ministry later authorized it to resume flights to prevent a closedown of the Andean nation's major air carrier. LanPeru says it has 11 national flights and 11 international flights a day, and has about 35% of the cargo market. Chile's Lan owns a direct 49% of LanPeru, while another 21% is owned by a Lan-controlled company. The rest is owned by a company executive. CONTACT: MSP Communications, Inc., Coral Springs, Fla. Misty Pinson, 954-341-2535 mspcomm@bellsouth.net or LAN PERU Public Relations Monica Verastegui, 011-511-213-8384 monica.verastegui@lanperu.com.pe ============= U R U G U A Y ============= PLUNA: British Firm Offers to Buy Varig's Stake ----------------------------------------------- Ashmore Funds, the UK-based investment company, moves to beef-up its Uruguayan investments with an offer to acquire a stake in local carrier Pluna. Local daily El Pais reveals that the investment house has offered to purchase Varig's share in Pluna although the Brazilian air company has not indicated a desire to dispose of its holdings. Ashmore currently holds a stake in another Uruguayan airline, flag carrier UAir. In 2003, Ashmore invested an estimated US$30 million in Uruguayan government securities. Pluna averages more than 100 flights per week. Its fleet of Boeing 737-200 Advanced and 767-200 connects the cities of Asuncion, Buenos Aires, Madrid, Montevideo, Porto Alegre, Punta del Este, R�o de Janeiro, San Paulo, and Santiago de Chile. *********** 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 * * *