/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/041129.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, November 29, 2004, Vol. 5, Issue 236 Headlines A R G E N T I N A AES ARGENTINA: Epse Formally Takes Over Hydro Plant ALPHA HERRAMENTAL: Court Orders Liquidation BANCO NACION: Opens New Line of Credit for SMEs COLLECTIVEMIND INC.: Initiates Bankruptcy Proceedings COMPANIA DE SERVICIOS: Files Petition to Reorganize CRESUD: Convertible Notes Holder Exercises Conversion Rights DARRIAN S.A.: Gets Court Ok for Reorganization DEBO S.A.: Liquidates Assets to Pay Debts DISENO E IMAGEN: Enters Bankruptcy on Court Orders EXPORIALE S.R.L.: Court Rules for Liquidation IMPSA: Fitch Argentina Maintains Ratings on Corporate Bonds JERGON S.R.L.: Liquidates Assets to Pay Debts LITTLE PALACE: Enters Bankruptcy on Court Orders MARMOLERIA PRINGLES: Court Grants Reorganization Plea MASTELLONE HERMANOS: S&P Affirms `raD' Rating on Bonds PETROBRAS ENERGIA: October Oil, Gas Production Falls 1.6% SAMBEX INVESTMENT: Court Converts Bankruptcy to Reorganization B R A Z I L BANCO SANTOS: Moody's Attempts to Explain Reasons for Downgrade CEMIG: Notifies Suppliers of Changes From De-Verticalization J A M A I C A AIR JAMAICA: Government Eyeing Additional 20% Stake M E X I C O BANAMEX: Proceeds with Liquidation of New York Agency PEMEX: Announces Discovery of Heavy Crude Oil in Deep Waters P E R U TDP: Welcomes New President V E N E Z U E L A PDVSA: To Create Gas JV With Russian Firm - - - - - - - - ================= A R G E N T I N A ================= AES ARGENTINA: Epse Formally Takes Over Hydro Plant --------------------------------------------------- Argentina's energy ministry notified the wholesale power market (MEM by its Spanish initials) that the San Juan province power company Epse has officially taken control of the 45MW Ullum hydro plant from US power Company AES, reports Business News Americas. AES obtained a 30-year concession for the Caracoles hydro complex, which included Ullum and the construction of two new plants, in 1998. Business News Americas earlier reported that the project was dependent on securing financing, but Argentina's financial crisis made it nearly impossible to attract investment, prompting AES to ask the San Juan government in February 2002 for permission to return the concession. As part of the Caracoles complex, San Juan province has also taken control of the construction of the 123MW Caracoles and the 65MW Punta Negra projects. AES still operates distributors Eden, Edes and Edelap and various other Argentine generation plants. ALPHA HERRAMENTAL: Court Orders Liquidation ------------------------------------------- Buenos Aires-based Alpha Herramental S.R.L. prepares to wind-up its operations following the bankruptcy pronouncement issued by Court No. 17 of the city's civil and commercial tribunal. The declaration effectively prohibits the Company from administering its assets, control of which will be transferred to a Court- appointed trustee. Infobae reports that the Court appointed Mr. Guillermo Hector Fernandez as trustee. He will be reviewing creditors' proofs of claims until February 4, 2005. The verified claims will serve as basis for the individual reports to be presented for Court approval on March 4, 2005. The trustee will also submit a general report on April 4, 2005. The city's Clerk No. 33 assists the Court on this case that will end with the disposal of the Company's assets to pay its liabilities. CONTACT: Alpha Herramental S.R.L. Ramon L Falcon 1060 Buenos Aires Mr. Guillermo Hector Fernandez, Trustee Cerrito 520 Buenos Aires BANCO NACION: Opens New Line of Credit for SMEs ----------------------------------------------- Federal Argentine bank Banco Nacion has offered a new line of credit for micro-, small- and medium-sized enterprises totaling ARS300 million (US$100 million), Business News Americas reports. The loans will be issued at a fixed 8.5% annual interest rate for up to ARS500,000. "We want to support SMEs at this time of the year when they have higher production needs," bank president Felisa Miceli said. Banco Nacion, the country's largest export and import financier for SMEs, recently revealed plans to boost its operations in the segment next year. According to Nacion's senior VP and head of financial institutions and correspondent banking Patricio Suarez, and the bank is already the Argentina's largest export and import financier in that segment. COLLECTIVEMIND INC.: Initiates Bankruptcy Proceedings ----------------------------------------------------- Court no. 14 of Buenos Aires' civil and commercial tribunal declared Collectivemind Inc. S.A. "Quiebra," reports Infobae. Ms. Adriana Beatriz Elisii, who has been appointed as trustee, will verify creditors' claims until February 23, 2005 and then prepare the individual reports based on the results of the verification process. The individual reports will be submitted in Court on April 6, 2005 followed by the general report on May 18, 2005. The city's Clerk No. 27 assists the Court on the case that will close with the liquidation of the Company's assets to repay creditors. CONTACT: Ms. Adriana Beatriz Elisii, Trustee Avda Cabildo 2040 Buenos Aires COMPANIA DE SERVICIOS: Files Petition to Reorganize --------------------------------------------------- Compania de Servicios Monasterio S.A. filed a "Concurso Preventivo" motion, reports La Nacion. The Company is seeking to reorganize its finances after defaulting on scheduled debt payments. The Company's case is pending before Court No. 6 of Buenos Aires' civil and commercial tribunal. The city's clerk no. 12 assists the Court on this case. CONTACT: Compania de Servicios Monasterio S.A. Avda Cabildo 2510 Buenos Aires CRESUD: Convertible Notes Holder Exercises Conversion Rights ------------------------------------------------------------ Cresud S.A.C.I.F. y A. (Nasdaq: CRESY - News; BCBA: CRES), a leading Argentine producer of agricultural products, informed the Bolsa de Comercio de Buenos Aires and the Comision Nacional de Valores that a holder of Company's Convertible Notes exercised its conversion rights. Hence, the financial indebtedness of the Company shall be reduced in US$225,000 and an increase of 443,087 ordinary shares face value pesos 1 (V$N 1) each was made. The conversion was performed according to terms and conditions established in the prospectus of issuance at the conversion rate of 1.96928 shares, face value pesos 1 per Convertible Note of face value US$ 1. As a result of that conversion the amount of shares of the Company goes from 151,285,377 to 151,728,464. On the other hand, the amount of registered Convertible Notes is US$ 42,778,014. CONTACT: Mr. Gabriel Blasi - CFO Phone: +011-54-11-4323-7449 e-mail: finanzas@cresud.com.ar Web Site: http://www.cresud.com.ar DARRIAN S.A.: Gets Court Ok for Reorganization ---------------------------------------------- Darrian S.A. begins reorganization following the approval of its petition by Court No. 15 of Buenos Aires' civil and commercial tribunal. The opening of the reorganization allows the Company to negotiate a settlement with its creditors in order to avoid a straight liquidation. Mr. Roberto Oscar Hermida will oversee the reorganization proceedings as the Court-appointed trustee. He will verify creditors' claims until December 15. Afterwards, the validated claims will be presented in Court as individual reports on February 25, 2005. The trustee is further 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 April 12, 2004. The Informative Assembly, the final stage of a reorganization where the settlement proposal is presented to the Company's creditors for approval, is scheduled on August 29, 2005. CONTACT: Mr. Roberto Oscar Hermida, Trustee Tucuman 1668 Buenos Aires DEBO S.A.: Liquidates Assets to Pay Debts ----------------------------------------- Debo S.A. will begin liquidating its assets following the bankruptcy pronouncement issued by Court No. 2 of Buenos Aires' civil and commercial tribunal, Infobae reports. The ruling places the Company under the supervision of court- appointed Trustee Sergio Leonardo Novick. The trustee will verify creditors' proofs of claims until February 14, 2005. Next, the validated claims will be presented in Court as individual reports on April 11, 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 May 23, 2005. CONTACT: Debo S.A. Avda Santa Fe 3159 Buenos Aires Mr. Sergio Leonardo Novick, Trustee Libertad 359 Buenos Aires DISENO E IMAGEN: Enters Bankruptcy on Court Orders -------------------------------------------------- Court No. 14 of Buenos Aires' civil and commercial tribunal declared Diseno e Imagen S.A. bankrupt after the Company defaulted on its debt payments. The bankruptcy order effectively places the Company's affairs as well as its assets under the control of court-appointed Trustee Alberto Jorge Rotenberg. As trustee, Mr. Rotenberg is tasked with verifying the authenticity of claims presented by the Company's creditors. The verification phase is ongoing until February 14, 2005. Following claims verification, the trustee will submit the individual reports based on the forwarded claims for final approval by the Court on March 30, 2005. A general report will also be submitted on May 13, 2005. Infobae reports that the city's Clerk no. 28 assists the Court on this case that will end with the disposal of the Company's assets to repay its debts. CONTACT: Mr. Alberto Jorge Rotenberg, Trustee Avda Cordoba 1336 Buenos Aires EXPORIALE S.R.L.: Court Rules for Liquidation --------------------------------------------- Court No. 16 of Buenos Aires civil and commercial tribunal ordered the liquidation of Exporiale S.R.L. after the Company defaulted on its debt obligations, Infobae reveals. The liquidation pronouncement will effectively place the Company's affairs as well as its assets under the control of Mr. Miguel Antonio Suppicich, the court-appointed trustee. Mr. Suppicich will verify creditors' proofs of claims until December 27. The verified claims will serve as basis for the individual reports to be submitted in Court on March 9, 2005. The submission of the general report follows on April 22, 2005. Clerk No. 32 assists the Court on this case that will end with the disposal of the Company's assets to repay creditors. CONTACT: Mr. Miguel Antonio Suppicich, Trustee Avda Argentina 5785 Buenos Aires IMPSA: Fitch Argentina Maintains Ratings on Corporate Bonds ----------------------------------------------------------- Fitch Argentina Calificadora de Riego S.A maintains a `D(arg)' rating on US$150 million worth of corporate bonds issued by Industrias Metalurgicas Pescarmona SA (IMPSA), the CNV says. The affected bonds, issued under "series and/or class," were described as "2 Serie emitida por US$150 millones del Programa Global de US$ 250 millones." The bonds expired on May 30, 2002. A `D (arg)'' rating indicates a Company has defaulted on its financial commitment. At the same time, Fitch maintains a `C(arg)' rating on US$250 million worth of IMPSA's bonds, which were classified under program and described as "Programa de obligaciones negociables." The bonds expired on June 2, 2004 A `C(arg)' rating indicates a highly uncertain capacity for timely payment of financial commitments relative to other issuers or issues in the same country. Capacity or meeting financial commitments is solely reliant upon a sustained, favorable business and economic environment, said Fitch. The ratings assigned were based on IMPSA's financial health as of June 30, 2004 CONTACT: Industrias Metalurgicas Pescarmona S.A. Latin America Mr. Hernan Guinazu Carril Rodriguez Pena 2451 (M5503AHY) Godoy Cruz, Mendoza Argentina. Phone: (+54-261) 4131374 Fax:(+54-261) 4131429 - 4131423 e-mail: guinazu@impsa.com.ar Web Site: www.impsa.com.ar JERGON S.R.L.: Liquidates Assets to Pay Debts --------------------------------------------- Buenos Aires-based Jergon S.R.L. will begin liquidating its assets following the pronouncement of the city's civil and commercial Court No. 18 that the Company is bankrupt, reports Infobae. The ruling places the Company under the supervision of court- appointed Trustee Shizue Matayoshi. The trustee will verify creditors' proofs of claims until February 7, 2005. The validated claims will be presented in Court as individual reports on March 21, 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 May 2, 2005. CONTACT: Jergon S.R.L. Larraya 3424 Buenos Aires Mr. Shizue Matayoshi, Trustee Viamonte 1337 Buenos Aires LITTLE PALACE: Enters Bankruptcy on Court Orders ------------------------------------------------ Little Palace S.A. enters bankruptcy protection after Court No. 26 of Buenos Aires' civil and commercial tribunal, with the assistance of Clerk No. 51, ordered the Company's liquidation. Infobae reports that the Court selected Mr. Pablo Alberto Amante as trustee. She will be verifying creditors' proofs of claims until the end of the verification phase on February 10, 2005. 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 28, 2005 followed by the general report that is due on May 9, 2005. CONTACT: Little Palace S.A. Guemes 3856 Buenos Aires Mr. Pablo Alberto Amante, Trustee Lavalle 1537 Buenos Aires MARMOLERIA PRINGLES: Court Grants Reorganization Plea ----------------------------------------------------- Marmoleria Pringles de Miguel Fama y Avelino Alvarez S.H. successfully petitioned for reorganization after Court No. 3 of La Matanza's civil and commercial tribunal issued a resolution opening the Company's insolvency proceedings. Under insolvency protection, the Company will continue to manage its assets subject to certain conditions imposed by Argentine law and the oversight of a Court-appointed trustee. Infobae relates that Mr. Carlos Felix Ocaranza will serve as trustee during the course of the reorganization. He will be accepting creditors' proofs of claims for verification until December 29. After the verification deadline, the trustee will prepare the individual reports and submit it in Court on March 11, 2005. The firm will also present a general report for Court review on April 22, 2005. The Company is scheduled to endorse a settlement proposal for approval by the creditors during the informative assembly on October 7, 2005. CONTACT: Mr. Carlos Felix Ocaranza, Trustee Ignacio Arieta 2912 La Matanza MASTELLONE HERMANOS: S&P Affirms `raD' Rating on Bonds ------------------------------------------------------ Standard & Poor's International Ratings, Ltd. Sucursal Argentina maintained the `raD' rating given to US$150 million worth of corporate bonds issued by Mastellone Hermanos S.A., the CNV reveals in its Web site. The bonds were classified as `Program' and described as "Programa de Obligaciones Negociables autorizado por AGE de fechas 11 y 23.6.99." Also, S&P assigned an `raD' rating to another US$225 million worth of bonds from the Company. The affected bonds are described as "Obligaciones Negociables, autorizadas por AGE de fecha 28.8.97." with final maturity on April 1, 2008. S&P gives the `raD' rating to financial obligations that are currently in default. The ratings agency said that the same rating may be issued if interest or principal payments are not made on the due even if the applicable grace period has not expired. The ratings given were based on the Company's finances as of September 30, 2004. PETROBRAS ENERGIA: October Oil, Gas Production Falls 1.6% --------------------------------------------------------- Argentine energy producer Petrobras Energia revealed total oil and gas production of 171,000 barrels of oil equivalent a day (boe/d) in October 2004, 1.6% lower than the production in the same month in 2003. But according to a Business News Americas report, production increased 1.4% from 168,600boe/d in September this year. Total oil production in Argentina, Venezuela, Peru, Bolivia and Ecuador fell 0.5% to 122,800boe/d in October 2004, while gas production fell 4.2% to 48,200boe/d. Petrobras Energia is a subsidiary of Brazil's federal energy company Petrobras (NYSE: PBR). CONTACTS: Daniel E. Rennis E-mail: drennis@petrobrasenergia.com Alberto Jankowski E-mail: ajankows@petrobrasenergia.com Tel: (5411) 4344-6655 SAMBEX INVESTMENT: Court Converts Bankruptcy to Reorganization -------------------------------------------------------------- Sambex Investment Corporation S.A., which had started liquidation proceedings, proceeds with reorganization on orders from Court No. 9 of Mar del Plata's civil and commercial tribunal. Infobae reports that the Court named Ms. Elida Zuanetti as the Company's trustee. The trustee will conduct the credit verification process "por via incidental." CONTACT: Sambex Investment Corporation S.A. Gascon 1749 Mar del Plata Mr. Elida Zuanetti, Trustee Avda Colon 3130 Mar del Plata =========== B R A Z I L =========== BANCO SANTOS: Moody's Attempts to Explain Reasons for Downgrade --------------------------------------------------------------- Moody's Investors Service will release a report in the coming days commenting further on the factors behind its recent downgrade of Brazilian bank Banco Santos' ratings. On Nov. 15, Moody's lowered the rating on the Sao Paulo-based bank's bonds to Caa3, the third-lowest on its scale of 21 ratings, from B1. Moody's, at that time, said that the new rating means the bonds may be in default or there may be "present elements of danger" in relation to payments of principal or interest. In addition, Moody's also cut its financial strength rating for the Sao Paulo-based bank to E from E+ and downgraded its local and foreign currency deposits to Caa1 from B1. "Essentially, the action reflected the bank's takeover by the regulatory authorities on the basis of its solvency and liquidity problems, but it has come to our attention that some market participants remain uncertain about the timing of our rating actions, as well as the specific significance of our ratings," says Celina Vansetti-Hutchins, the team leader of the Latin American bank analysts. "It must be emphasized", the analyst states, "that each of Moody's ratings addresses different credit-support and -risk elements, which include our assessment of solvency and intrinsic credit worth on a globally comparable basis, as well as country and issuer-specific elements of support or constraints on creditworthiness". "For example," she says, "the bank financial strength rating is a measure of the bank's intrinsic safety and soundness and, as such, excludes certain external credit risks and credit support elements". She explained that banks rated in the "very weak" E range, such as Banco Santos, display very modest intrinsic financial strength, with a higher likelihood of periodic outside support or outside assistance. "The global local currency rating of B1", the analyst said, "is an indication of the bank's ability to repay its obligations in local currency, and banks rated in the B category for deposits, including Banco Santos, offer generally poor credit quality." CEMIG: Notifies Suppliers of Changes From De-Verticalization ------------------------------------------------------------ As ordered by Law 10848/04, Cemig is undergoing a process of de- verticalization (otherwise known as "unbundling") of its electricity generation, transmission and distribution activities into different companies. As a result of the process, these activities that have until now been run by a single Company (the present Cemig), will be run and operated by two different companies starting in January 2005. As part of the process, the present legal entity CEMIG will be maintained, as a holding Company. It will own all the shares of the new subsidiaries, which will carry out the activities of: (I) electricity generation and transmission - CEMIG Geracao e Transmissao S/A; and (II) distribution - CEMIG Distribuicao S/A. These two wholly owned subsidiaries, which are being formed, will begin operating on January 1, 2005, after authorization by Aneel and approval by a Meeting of Stockholders of the Company. The holding Company will control the new subsidiaries, giving continuity to the Cemig brand name, and ensuring the uniformity and cohesion of the group. The separation will require the transfer of goods and assets (generation plant, substations, transmission and distribution lines, vehicles, computers, etc.), and rights and obligations of the concession-holding Company Cemig to the new companies that will be created: - COMPANHIA ENERGETICA DE MINAS GERAIS S.A. - CNPJ: 17.155.730/0001-64 - CEMIG DISTRIBUICAO S.A. - CNPJ: 06.981.180/0001-16 - CEMIG GERACAO E TRANSMISSAO S.A. - CNPJ: 06.981.176/0001-58 The instruments that guarantee rights and obligations include Contracts for Provision of Services and Acquisition of Material, and to enable these to be legalized under the new structure will require changes to be formalized through Amendments, which Cemig will prepare and submit to you for signature. It is important to clarify that these changes are solely for the purpose of changing the name, CNPJ number, state and municipal tax number, and invoice delivery address of the client Company in each contract - to establish the legal link between the supply and the Company receiving and using the goods or services. We would emphasize that, in some cases, the original contract will have to be separated into as many as three (3) new contracts, which will result in the need to issue separate tax invoices - to enable the costs of services or material covered by them to be passed to the new companies. To ensure continuation of normal payment, starting in the month of January 2005, for tax invoices linked to contracts, purchase orders or delivery orders issued, we would ask for your attention to the changes in Company names, CNPJ, and state and municipal tax numbers of your client Company. These will be provided very soon. The process of payment of suppliers will take place normally, by means of delivery of invoices and their acceptance by Cemig up to 13 December 2004 We also have to inform you that, in the period from 4 December 2004 to 2 January 2005, CEMIG'S central materials warehouse will not receive any material, because it will be closed for inventory. To deal with any doubts or exceptions, please contact Cemig as follows: Subjects related to contracts the Cemig department that manages the contract; Accounts Receivable dial (031) 3299-3884 or 3299-3769; Materials warehouse dial (031) 3389-2233. We apologize for the inconvenience, and feel sure that we can count on your understanding and support. CONTACT: Cemig Av.Barbacena, 1200 Santo Agostinho - CEP 30190-131 Belo Horizonte Brasil Fax: (0XX31)3299-3934 Phone: (0XX31)3299-4524 ============= J A M A I C A ============= AIR JAMAICA: Government Eyeing Additional 20% Stake --------------------------------------------------- Air Jamaica could move closer to clearing its books of US$110 million in fees and back taxes owed to the government if a debt- for-equity exchange materializes. Europe Intelligence Wire reports that the Jamaican government is negotiating to increase its stake in the troubled carrier from the current 25 percent to 45 percent. The government's show of support will help boost the airline's image in the wake of criticism over its mounting US$682 million debt. Air Jamaica has also drawn flak for losing close to US$560 million since it's 1994 privatization. Chairman Gordon Stewart, however, clarified that the airline has not avoided its debt responsibility to the government. In fact, he claims that the airline has paid US$160 million in taxes and fees over the last ten years. =========== M E X I C O =========== BANAMEX: Proceeds with Liquidation of New York Agency ----------------------------------------------------- Notice to Customers and Creditors of Banco Nacional de Mexico S.A., Integrante del Grupo Financiero Banamex On or about November 22, 2004, Banco Nacional de Mexico, S.A., integrante del Grupo Financiero Banamex (Banamex) will commence the voluntary liquidation of its New York Agency, located at 767 Fifth Avenue, New York, New York, under the provisions of Section 605.11(c) of the New York State Banking Law. Upon completion thereof, all business related thereto shall be conducted from the bank's offices located in Mexico. All inquiries with respect to the liquidation and winding-up of the New York agency of Banmex should be directed to: Mr. Charles E. Guiliani General Manager New York Agency Banco Nacional de Mexico S.A., integrante del Grupo Financiero Banamex 767 Fifth Avenue, Eighth Floor New York, NY 10153 Phone: (212) 303-1469 on or before December 30, 2004. PEMEX: Announces Discovery of Heavy Crude Oil in Deep Waters ------------------------------------------------------------ During 2004, Pemex Exploracion y Produccion started and completed within the Gulf's Mexican Waters, the drilling of the first underwater well surpassing 500 meters deep. In the petroleum industry, drilling beyond this depth is considered deepwater drilling. This first well, dubbed Nab-1, is located approximately, 145 kilometers Northeast of Ciudad del Carmen, Campeche, and 681 meters deep under water. The drilling of the well began on April 27, and concluded on November 8, 2004, reaching a depth of 4,050 meters in the Kimmeridgian Upper Jurassic. Well production test analyses at 2,800 meters deep revealed the presence of heavy crude oil (9� API). This test used an electrocentrifuge pumping system producing over 1,200 barrels of oil per day. It is worth mentioning that this discovery confirms the presence of heavy crude oil in an area evolving into deep waters. This area, close to Nab, has been previously delimited with successful drilling shallow waters (less than 500 meters deep) of other wells, such as Num n, Baksha and Pohp. Preliminary information obtained from Nab1, estimates an original volume of hydrocarbons above 200 million barrels of crude oil equivalent. The reserve associated to this volume, namely, the original volume fraction potentially productive is in the evaluation process and its estimate will be announced during the first quarter of 2005. This information does not represent any change on the proved hydrocarbon reserves that have been disclosed in the 2003 Annual Report and the Form 20-F of Petroleos Mexicanos filed to the Mexican Stock Exchange and the U.S. Securities and Exchange Commission. ======= P E R U ======= TDP: Welcomes New President --------------------------- Javier Nadal has resigned from his post as president of Telefonica del Peru (TDP) to take on the job as General Director of Institutional Relations and Foundation, reports Dow Jones Newswires. Taking over Nadal's former post is Brazilian Antonio Carlos Valente, who is currently responsible for regulatory issues for the Telefonica SA (TEF) group in Latin America. The shuffle comes as telecommunications regulatory agency Osiptel is looking at Telefonica Moviles SAC's purchase of BellSouth Peru SA at the request of Peru's Ministry of Transport and Communications. BellSouth Corp.(BLS) has sold wireless operations in five Latin American countries, including Peru, to Telefonica SA units. With the purchase, Telefonica holds about 73% of the mobile phone market in Peru. ================= V E N E Z U E L A ================= PDVSA: To Create Gas JV With Russian Firm ----------------------------------------- Petroleos de Venezuela (PdVSA) and Russian oil Company Lukoil are contemplating the creation of a joint venture to develop oil and natural gas projects in the South American country, Dow Jones Newswires reports, citing a PDVSA executive. Eulogio Del Pino, PdVSA's director for strategic associations, indicated that PDVSA would hold 51% and Lukoil 49% of the investment tie-up under consideration. "We haven't yet held discussions on the size of investments required or the structure of financing," Del Pino said. "That will come later." Lukoil plans to study the possibility of participating in gas projects in Venezuela, said Andrei Kuzyaev, president of the Company's foreign production operator Lukoil Overseas. He said the initial stage of cooperation with Venezuelan companies will be to concentrate on oil projects. Venezuela plans to increase oil production 1.5 to 2 times and Lukoil plans to take part in this process. "We will begin with oil, which we know the best. The gas sector is the second step in our cooperation," he said. *********** 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 * * *