/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/041203.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, December 3, 2004, Vol. 5, Issue 240 Headlines A R G E N T I N A AES CORP.: Argentine Unit Signs Government Concession Accord AGROFLEX S.A.: Seeks Court Authorization to Reorganize AUTOMOTORES PUERTO: Court Designates Trustee for Bankruptcy BRAMESC S.H.: Court Orders Liquidation COTO: Closes Debt Restructuring Accord DRES. MOREAU: Enters Bankruptcy on Court Orders ENVASES DEL NORTE: Court OKs Creditor's Bankruptcy Request HELAFRUT S.R.L.: Begins Liquidation Proceedings LA CASA: Liquidates Assets to Pay Debts MAMBA S.A.: Initiates Bankruptcy Proceedings MILLICOM INTERNATIONAL: New Share, Bond Offering Priced NEW DELIVERY: Debt Payments Halted, Set To Reorganize RECTIFICACION TURDERA: Debts Stayed; Court OK's Reorganization S.B. MANDATARIA: Court Orders Liquidation TELECOM ARGENTINA/TELEFONICA: Strike Cripples Services TRYA S.A.: Court Designates Trustee for Bankruptcy VINTAGE PETROLEUM: Sells Canadian Subsidiary for $275M B R A Z I L CEMIG: Pays BRL170 Million Dividend PARMALAT BRAZIL: Nears Agreement With Creditors VARIG: VP May Propose Special Credit Line to Save Airline * BRAZIL: IDB Extends $33M Loan C H I L E CHIQUITA BRANDS: Redemption Price Set For 10.56% Senior Notes CHIQUITA BRANDS: Approves Quarterly Dividend of $0.10 per Share C O L O M B I A * COLOMBIA: Receives Loans Totaling $35M Worth From IDB C O S T A R I C A ICE: Seeks Aresep's Approval to Hike Rates By March 2005 M E X I C O HYLSAMEX: EDC Agreements to Boost Exports T R I N I D A D & T O B A G O COURTS TRINIDAD: Dodges Parent Company's Troubles V E N E Z U E L A PDVSA: Plans to Increase Refining Capacity - - - - - - - - - - ================= A R G E N T I N A ================= AES CORP.: Argentine Unit Signs Government Concession Accord ------------------------------------------------------------ Empresa Distribuidora La Plata SA (Edelap), a unit of US-based power company AES Corp. (AES), has reached an agreement with the government public services agency Uniren regarding its concession for power distribution at La Plata and neighboring areas. According to local daily El Clarin, the accord, which lasts until 2006, allows for an increase in electricity rates in the first quarter of 2005 that would imply an 8% hike for all users or a 15% rise if only large-scale industrial users are affected. Clarin also said the agreement calls for ARS16 million ($1=ARS2.9525) in outstanding Edelap fines owed to the Argentine electricity regulator to be temporarily suspended and then converted into investment if the company meets certain quality standards. If the requirements are not met, the fines will be reinstated, the paper said. The newspaper also said the agreement commits AES to withdraw the US$100 million claim it has filed against Argentina in ICSID, the World Bank's arbitration tribunal. AGROFLEX S.A.: Seeks Court Authorization to Reorganize ------------------------------------------------------ Agroflex S.A., a company operating in Buenos Aires, has requested for reorganization after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow the company to negotiate a settlement with its creditors in order to avoid a straight liquidation. Infobae reports that the case is pending before Court No. 9 of the city's civil and commercial tribunal. Clerk No. 18 assists the court with the proceedings. CONTACT: Agroflex S.A. Romulo Naon 3129 Buenos Aires AUTOMOTORES PUERTO: Court Designates Trustee for Bankruptcy ----------------------------------------------------------- Buenos Aires accountant Andres Angel Landro was assigned trustee for the bankruptcy of local company Automotores Puerto Nuevo S.A., relates Infobae. The trustee will verify creditors' claims until February 23, 2005, the source adds. After that, he will prepare the individual reports, which are to be submitted in court on April 6, 2005. The general report submission should follow on May 19, 2005. The city's Court No. 37 holds jurisdiction over the Company's case. Clerk no. 37 assists the court on this case. CONTACT: Automotores Puerto Nuevo S.A. Chacabuco 721 Buenos Aires Mr. Andres Angel Landro, Trustee Avda Raul Scalabrini Ortiz 215 Buenos Aires BRAMESC S.H.: Court Orders Liquidation -------------------------------------- Bramesc S.H. prepares to wind-up its operations following the bankruptcy pronouncement issued by Court No. 2 of Mendoza'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. Jorge Iermoli as trustee. He is scheduled to submit individual reports for court approval on December 21, 2004. Afterwards, the trustee will also submit a general report on June 16, 2005. CONTACT: Mr. Jorge Iermoli, Trustee San Martin 1167 Mendoza COTO: Closes Debt Restructuring Accord -------------------------------------- Argentine supermarket chain Coto struck a debt deal with 100% of its creditors. According to the agreement, which involved no haircut, the company will have to pay its creditors US$200 million within 6 years. Coto was advised by Infupa and the law firm Munoz de Toro & Munoz de Toro. DRES. MOREAU: Enters Bankruptcy on Court Orders ----------------------------------------------- Court No. 2 of Buenos Aires' civil and commercial tribunal declared Dres. Moreau S.R.L. bankrupt after the company defaulted on its debt payments. The order effectively places the company's affairs as well as its assets under the control of court-appointed trustee Mauricio Mudric. As trustee, Mr. Mudric is tasked with verifying the authenticity of claims presented by the company's creditors. The verification phase is ongoing until March 7, 2005. Following claims verification, the trustee will submit the individual reports based on the forwarded claims for final approval by the court on April 15, 2004. A general report will also be submitted on May 30, 2005. Infobae reports that the city's Clerk No. 3 assists the court on this case that will end with the disposal of the company's assets in favor of its creditors. CONTACT: Mr. Mauricio Mudric, Trustee Tucuman 893 Buenos Aires ENVASES DEL NORTE: Court OKs Creditor's Bankruptcy Request ---------------------------------------------------------- Envases del Norte S.A. entered bankruptcy after Judge Hualde, serving for Court No. 9 of Buenos Aires' civil and commercial tribunal approved a bankruptcy motion filed by Obra Social del Personal de la Industria del Plastico. Working with Dr. Taricco Vera, the city's Clerk No. 18, the court assigned Mr. Miguel Troisi as trustee for the bankruptcy process. The trustee's duties include the authentication of the Company's debts and the preparation of the individual and general reports. Creditors are required to present their proofs of claims to the trustee before February 22, 2005. CONTACT: Envases del Norte S.A. Avenida Las Heras 2024 Buenos Aires Mr. Miguel Troisi, Trustee Cerrito 146 Buenos Aires HELAFRUT S.R.L.: Begins Liquidation Proceedings ----------------------------------------------- Helafrut S.R.L. of Bahia Blanca will begin liquidating its assets after Court No. 2 of the city's civil and commercial tribunal declared the company bankrupt. Infobae reveals that creditors with outstanding claims against the Company have until February 16, 2005 to submit proof of the indebtedness to a court-appointed trustee for verifications. CONTACT: Helafrut S.R.L. Ameghino 1452 Bahia Blanca LA CASA: Liquidates Assets to Pay Debts --------------------------------------- Local company La Casa de los Pyjamas S.C.A. will begin liquidating its assets following the bankruptcy pronouncement issued by Court No. 9 of Buenos Aires' civil and commercial tribunal, Infobae reports. The ruling places the company under the supervision of court- appointed trustee Gabriel Jorge Churin. The trustee will verify creditors' proofs of claims until March 23, 2005. The validated claims will be presented in court as individual reports on May 16, 2005. Mr. Churin 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 16, 2005. The bankruptcy process will end with the disposal company assets in favor of its creditors. CONTACT: Mr. Gabriel Jorge Churin, Trustee Sarmiento 731 Buenos Aires MAMBA S.A.: Initiates Bankruptcy Proceedings -------------------------------------------- Court No. 16 of Buenos Aires' civil and commercial tribunal declared Mamba S.A. "Quiebra," reports Infobae. The city's Clerk No. 31 assists the court on the case that will close with the liquidation of the Company's assets to repay creditors. Mr. Jose Miras, who has been appointed as trustee, will verify creditors' claims until February 21, 2005 and then prepare the individual reports based on the results of the verification process. CONTACT: Mr. Jose Miras, Trustee Paraguay 1307 Buenos Aires MILLICOM INTERNATIONAL: New Share, Bond Offering Priced ------------------------------------------------------- Millicom International Cellular S.A. (``Millicom'' or the ``Company'') announced Wednesday that it has priced its offerings of 8 million Ordinary Shares in the form of Swedish Depositary Receipts (``SDRs'') or Ordinary Shares (the ``Share Offering'') and $175 million of convertible bonds convertible into Ordinary Shares and/or SDRs (the ``Bonds'' or ``Bond Offering''). The Ordinary Shares were priced at $23.24 per Ordinary Share (SEK 156.90 per SDR), today's closing price on Nasdaq. Payment for and settlement of the Ordinary Shares is expected to occur on December 7, 2004. The Bonds were priced at par and will pay an annual coupon of 4.00%, payable semi-annually in arrear. The conversion price was set at $34.86 per share, representing a premium of 50% to today's closing price on NASDAQ. At that conversion price, the Bonds will initially be convertible into an aggregate of approximately 5.02 million Ordinary Shares or SDRs commencing on the date that is 41 days after the issuance date of the Bonds. The conversion price is subject to adjustment in the case of certain dilutive events. Payment for and settlement of the Bonds is expected to occur on January 7, 2005. Millicom will undertake to list the Bonds on the Luxembourg Stock Exchange on that date. The aggregate proceeds of the offerings are expected to be approximately $361 million (before deducting commissions, concessions and the expenses of the offerings and without giving effect to any exercise of the lead manager's options to purchase additional Ordinary Shares or Bonds). The net proceeds of the offerings will primarily be used by Millicom to fund investment in its existing businesses, including in capital expenditures and license renewals, as well as to potentially increase its stake in any of its existing holdings. Millicom has agreed, subject to certain exceptions, not to sell any further Ordinary Shares and/or SDRs of the Company, or securities convertible into or exchangeable for such Ordinary Shares and/or SDRs, for a period of 120 days. The Bonds, Ordinary Shares and SDRs, including Ordinary Shares or SDRs issuable upon conversion of the Bonds, have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States unless registered under the U.S. Securities Act of 1933 or pursuant to an exemption from registration. CONTACTS: Mr. Marc Beuls President and Chief Executive Officer Millicom International Cellular S.A. Luxembourg Phone: +352 27 759 327 Mr. Andrew Best Investor Relations Phone: +44 (0)7798 576378 Web Site: http://www.waymaker.net NEW DELIVERY: Debt Payments Halted, Set To Reorganize ----------------------------------------------------- Court No. 21 of Buenos Aires' civil and commercial tribunal is currently reviewing the merits of a petition to reorganize filed by New Delivery S.A. La Nacion recalls that the company filed the petition following cessation of debt payments. Reorganization will allow the Company to avoid bankruptcy by negotiating a settlement with its creditors. CONTACT: New Delivery S.A. Talcahuano 38 Buenos Aires RECTIFICACION TURDERA: Debts Stayed; Court OK's Reorganization -------------------------------------------------------------- Rectificacion Turdera S.R.L. will begin reorganization proceedings following the approval of its petition by Court No. 6 of Buenos Aires' civil and commercial tribunal. The opening of the reorganization will allow the company to negotiate a settlement with its creditors in order to avoid a straight liquidation. Mr. Luis A. Traverso will oversee the reorganization proceedings as the court-appointed trustee. He will verify creditors' claims until February 25, 2005. The validated claims will be presented in court as individual reports on April 12, 2004. The trustee is also required by the court to submit a general report essentially auditing the company's accounting and business records as well as summarizing important events pertaining to the reorganization. This report will be presented in court on May 24, 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 November 7, 2005. CONTACT: Mr. Luis A. Traverso, Trustee Avda Corrientes 1820 Buenos Aires S.B. MANDATARIA: Court Orders Liquidation ----------------------------------------- S.B. Mandataria S.A. prepares to wind-up its operations following the bankruptcy pronouncement issued by Court No. 2 of Buenos Aires' civil and commercial tribunal. The declaration effectively prohibits the company from administering its assets, control of which will be transferred to a court-appointed trustee. Infobae reports that the court appointed Mr. Jorge Eladio Feito as trustee. He will be reviewing creditors' proofs of claims until March 4, 2005. The verified claims will be the basis for the individual reports to be presented for court approval on April 19, 2005. Afterwards, the trustee will also submit a general report on June 1, 2005. Clerk No. 3 assists the court on this case that will end with the disposal of the company's assets to cover its liabilities. CONTACT: S.B. Mandataria S.A. Nogoya 2459 Buenos Aires Mr. Jorge Eladio Feito, Trustee San Martin 662 Buenos Aires TELECOM ARGENTINA/TELEFONICA: Strike Cripples Services ------------------------------------------------------ Argentina's telephone service is at risk of collapsing as a national strike by thousands of workers from Telecom Argentina SA and Telefonica de Argentina SA entered into its fifth day Wednesday, according to Dow Jones Newswires. Striking telephone workers are camped out inside and surrounding at least two buildings in Buenos Aires, forcing their closure. "The telephone service is starting to fail as we can't provide maintenance to the operator call center, which monitors the lines in all the country," said Pablo Talamoni, spokesman for Telecom. The union is threatening to expand the protest unless a 25% increase in wages is granted. The protests are already affecting Telefonica's operations and an extension of the strike threatens to spark service cuts as line maintenance isn't carried out, union leaders said. "The system has already started to deteriorate but that's the companies' responsibility, not ours," union leader Claudio Marin said. CONTACT: TELECOM ARGENTINA S.A. Alicia Moreau de Justo 50, 10th Floor Capital Federal (1107) Republica Argentina Phone: +54 11 4968 4000 Home Page: http://www.telecom.com.ar Contacts: Alberto J. Ricciardi, Chief Financial Officer Elvira Lazzati, Finance Director Pedro Insussarry, Investor Relations Manager Phone: (5411) 4968-3626/3627 Fax: (5411) 4313-5842/3109 E-mail: inversores@intersrv.telecom.com.ar TELEFONICA DE ARGENTINA Tucuman 1, 18th Floor, 1049 Buenos Aires, Argentina Phone: (212) 688-6840 Home Page: http://www.telefonica.com.ar TRYA S.A.: Court Designates Trustee for Bankruptcy -------------------------------------------------- Buenos Aires accountant Jose Eduardo Obes was assigned trustee for the liquidation of local company Trya S.A., relates Infobae. The trustee will verify creditors' claims until March 16, 2005. After the verification deadline, Mr. Obes will prepare the individual reports, which are to be submitted in court on May 12, 2005. The submission of the general report should follow on June 30, 2005. The city's civil and commercial Court No. 9 holds jurisdiction over the Company's case. Clerk No. 17 assists the court with the proceedings. CONTACT: Mr. Jose Eduardo Obes, Trustee Lavalle 1619 Buenos Aires VINTAGE PETROLEUM: Sells Canadian Subsidiary for $275M ------------------------------------------------------ Vintage Petroleum, Inc. (NYSE:VPI) announced Wednesday that it has closed its previously announced sale of its wholly-owned Canadian subsidiary, Vintage Petroleum Canada, Inc. ("VPC") to Midnight Oil and Gas, Ltd. for a total consideration of US$275 million cash subject to normal post-closing adjustments and expenses. VPC holds all of Vintage's properties in Canada and had estimated working capital of approximately US$22 million as of the transaction's June 30, 2004 effective date. At year-end 2003, Vintage disclosed estimated proved reserves in Canada of 14.6 million barrels of oil equivalent. Proceeds from the sale of its Canadian interests will be used to reduce debt outstanding under its revolving credit facility and for general corporate purposes. Pro forma for the sale of Canada, net debt at September 30, 2004 of $631 million is reduced 42 percent to about $365 million. This reduces Vintage's net debt-to-book capitalization ratio to approximately 38 percent, with net debt representing approximately 1.1 times 2005 targeted cash flow of $320 million and less than one times 2005 targeted EBITDAX of $440 million. Vintage also announced today that its bank group has completed its semi-annual review of the borrowing base under the company's bank credit facility. After the sale of its Canadian properties, the borrowing base remains unchanged at $325 million. Approximately $130 million of the proceeds from the sale will be used to reduce outstanding advances to zero, creating unused availability under the $300 million bank credit facility of approximately $297 million, net of outstanding letters of credit. "We are pleased with the closing of this transaction as it represents a significant step in the execution of our 2004 plan to improve shareholder value," said Charles C. Stephenson, Jr., CEO. "The proceeds and book gain from this sale will result in reducing our net debt-to-book capitalization ratio below the 40 percent range, thus achieving our stated financial target, and the enhancement of our flexibility to fund future production growth," added Mr. Stephenson. Vintage Petroleum, Inc. is an independent energy company engaged in the acquisition, exploitation and exploration of oil and gas properties and the marketing of natural gas and crude oil. Company headquarters are in Tulsa, Oklahoma, and its common shares are traded on the New York Stock Exchange under the symbol VPI. CONTACT: Mr. Robert E. Phaneuf Vintage Petroleum, Inc. Tulsa Phone: 918-592-0101 Web Site: http://www.vintagepetroleum.com =========== B R A Z I L =========== CEMIG: Pays BRL170 Million Dividend ----------------------------------- Companhia Energetica De Minas Gerais (Cemig) informs its stockholders that the Board of Directors, in a meeting held on November 30, 2004, decided to pay interest on equity in respect of the year 2004, under Article 9 of Law 9249/95 of 26 December 1995, in the amount of R$170,000,000.00 (one hundred and seventy million Reais), equal to R$1.048834 per thousand shares. This will be considered as part of the calculation of the obligatory dividend, in the terms of Paragraph 1 of Clause 30 of the Bylaws, and the form and date of payment will be decided at a meeting of the Board of Directors to be held on an opportune date. All stockholders whose names are on the company's Nominal Share Register on 10 December 2004 will have the right to this payment, on which tax at 15% will be withheld at source of payment, other than for stockholders that are exempt from this withholding under current legislation. The shares will trade with the exclusion of this benefit on 11 December 2004. The Company reminds stockholders of the importance of updating their registration information. This can be done by visiting any branch of Banco Itau S.A. (the institution which administers Cemig's system of registered nominal shares), taking their personal documents with them. CONTACT: Companhia Energetica De Minas Gerais - Cemig Av.Barbacena, 1200 Santo Agostinho - CEP 30190-131 Belo Horizonte - MG Brasil Fax (0XX31)3299-3934 Phone: (0XX31)3299-4524 PARMALAT BRAZIL: Nears Agreement With Creditors ----------------------------------------------- Italian dairy Parmalat's unit in Brazil and its 17 creditor banks are working on a memorandum of understanding, which would pave the way for the latter to take over the company's business. But, according to a Valor Economico report, the institutions do not want to exchange credits for stocks at present. One of the options is to deliver to the creditors of the holding Parmalat Participacoes, debentures convertible into shares. The papers would be issued by a new operational company to be established. Among the largest creditors of the holding are BankBoston, ABN Amro and Santander. Meanwhile, the creditors of Parmalat Alimentos - unit that concentrates operational activities of the group in Brazil - will extend debt profiles. Parmalat Alimentos has debts with Bank of America, Standard Chartered, Sumitomo, Citibank, Banco do Brasil, Unibanco, Itau and others. Parmalat Alimentos and Parmalat Participacoes are in a bankruptcy process since August. During the process they recognized debts of BRL500 million and BRL1.6 billion, respectively. VARIG: VP May Propose Special Credit Line to Save Airline --------------------------------------------------------- Brazilian Vice President and Defense Minister Jose Alencar is likely to propose extending a special government credit line of US$1 billion to embattled airline Varig, says Dow Jones Newswires. Alencar, whose responsibility includes supervising the Brazilian Air Force and the Air Force's Civil Aviation Division, revealed his intention at a meeting Tuesday with leaders of airline workers unions. Citing union sources present at the meeting, Dow Jones Newswires said the vice president is likely to broach the idea to Brazil's President Luiz Inacio Lula da Silva. The sources added that the credit line would be offered by the federal government's Brazilian Development Bank, or BNDES. Under the plan, Varig may have to change its name to Nova Varig. Part of the plan would involve government loans to companies interested in buying stakes in the new company. CONTACT: VARIG (Viacao Aerea Rio-Grandense, S.A.) Rua 18 de Novembro No. 800, Sao Joao 90240-040 Porto Alegre, Rio Grande do Sul, Brazil Phone: (51) 358-7039/7040 (51) 358-7010/7042 Fax: +55-51-358-7001 Home Page: www.varig.com.br/english/ Contacts: Dorival Ramos Schultz, EVP Finance and CFO E-mail: dorival.schultz@varig.com.br Investor Relations: Av. Almirante Silvio de Noronha, n 365-Bloco "B" - s/458 / Centro Rio de Janeiro, Brazil * BRAZIL: IDB Extends $33M Loan ------------------------------- The Inter-American Development Bank announced Wednesday the approval of a $33 million loan to Brazil for a program to improve competitiveness of the agrifood sector by focusing on food security and export support. Applied research projects will be selected through a competitive mechanism in the areas of agroexport chains, agrifood health and quality, preservation and exploitation of biodiversity, organic agriculture, hydroponics and family agriculture. Strategic areas of crosscutting research will include sustainability of natural resources in production systems, genetic resources and biotechnology and biosafety. Actions will strengthen the research capacity for export diversification with high-quality and high-value products and greater private sector participation; modernize and update resources to serve strategic research areas; and increase market access and integration of family production in agrifood and agribusiness chains. A modernized management model with greater access to international knowledge will take advantage of new information and communication systems. Brazil's agrifood sector has outpaced the rest of the economy with sustained growth, particularly in the production of soybeans, sugar, coffee, citrus and meat, highly competitive in world markets. "Although a sizeable group of producers is well established and has made progress in the technological and management fronts," said IDB team leader Adriana Delgado, "most small-scale producers remain in traditional product lines with low levels of productivity and income. A significant potential lies, for example, in the four million family farms in Brazil." "Experience with this type of projects in Latin America shows that agricultural research is profitable and generates economic impacts that repay the investments undertaken," said Delgado. "Incorporation of new technologies is fundamental to ensure that the whole Brazilian agrifood-agribusiness complex maintains its current dynamism." The IDB supports the Brazilian strategy to improve agribusiness competitiveness internationally by fostering research and the modernization of infrastructure. Support to the growing relationship among the Brazilian technological development system and other international partners is based on priorities established in bilateral agreements. The IDB 25-year loan, at a variable interest rate, has a five- year grace period. Local counterpart funds total $27 million. The executing agency will be Empresa Brasileira de Pesquisa Agropecuaria. ========= C H I L E ========= CHIQUITA BRANDS: Redemption Price Set For 10.56% Senior Notes ------------------------------------------------------------- Chiquita Brands International, Inc. announced Wednesday the redemption price for its 10.56% Senior Notes due 2009. All of the approximately $40 million of these notes which are still outstanding have been called for redemption on Dec. 3, 2004. The redemption price will be $1,075.36 per $1,000 principal amount of the notes, plus accrued and unpaid interest to the redemption date in the amount of $22.88. This redemption price was calculated in accordance with the provisions in the indenture relating to the notes. Beneficial owners of notes in book-entry form do not need to take action in connection with the redemption. The redemption price will be automatically deposited into their accounts. Questions concerning the redemption of the notes can be directed to the trustee, Wells Fargo Bank, National Association, at (800) 344-5128 or the paying agent, Securities Transfer Co. at (513) 579-2414 or (800) 368-3417. Chiquita Brands International, Inc. is a leading international marketer, producer and distributor of high-quality bananas and other fresh produce, which are sold under Chiquitar premium brands and related trademarks. The company is one of the largest banana producers in the world and a major supplier of bananas in Europe and North America. The company also distributes and markets fresh-cut fruit and other branded, value-added fruit products. CONTACT: Mr. Michael Mitchell Phone: 513-784-8959 e-mail: mmitchell@chiquita.com Web Site: www.chiquita.com CHIQUITA BRANDS: Approves Quarterly Dividend of $0.10 per Share --------------------------------------------------------------- Chiquita Brands International, Inc. (NYSE: CQB) announced Wednesday that its board of directors has authorized the initiation of a quarterly cash dividend of $0.10 per share on the company's outstanding shares of common stock. The first dividend is payable on Jan. 17, 2005 to shareholders of record as of the close of business on Jan. 3, 2005. This will be Chiquita's first dividend since emerging from Chapter 11 restructuring in March 2002. "The initiation of a regular quarterly cash dividend demonstrates our optimism in Chiquita's future as well as confidence in our ability to continue generating strong cash flows," said Fernando Aguirre, chairman and chief executive officer. "It also provides us with an opportunity to provide returns to our shareholders as we continue to build the long- term value of our company." Aguirre continued, "We believe the approved dividend policy will allow us to fund our future growth initiatives while simultaneously returning cash to shareholders. We will continue to use excess cash flow to pay off debt, fund potential acquisitions or other growth opportunities and execute our previously announced stock and warrant repurchase program. We believe this dividend, combined with our stock and warrant repurchase program, demonstrates the ongoing strength and stability of our company without compromising our strategy of pursuing profitable growth by making Chiquita a more consumer- and marketing-centric organization." While Chiquita intends to pay regular quarterly dividends for the foreseeable future, all subsequent dividends will be reviewed quarterly and declared by the board at its discretion. CONTACT: Mr. Michael Mitchell Phone: 513-784-8959 e-mail: mmitchell@chiquita.com Web Site: www.chiquita.com =============== C O L O M B I A =============== * COLOMBIA: Receives Loans Totaling $35M Worth From IDB ------------------------------------------------------- The Inter-American Development Bank approved Wednesday two loans to Colombia for a total of $35 million to support a program to help low-income rural families obtain better housing and to help strengthen institutional mechanisms that will improve the climate for private participation in infrastructure development. Rural Housing An IDB loan of $30 million will help finance a system of subsidies that will enable 17,000 rural families to either improve their home, build a new house on property they own or buy a new home. Subsidies will be provided for up to $1,400 for home improvement, $1,900 for building a home on a lot owned by the beneficiary and $2,000 for buying a home. The beneficiary will finance at least 10 percent of the cost of a home from their own resources, while nongovernmental organizations, municipalities and other agencies active in supporting low-income housing will finance 20 percent of the cost. The total cost of the homes will not exceed 50 minimum wages, or about $6,750. In addition to financing, the Bank, beginning with the preparation of the program, is providing technical assistance. It is helping national authorities establish an information system for administering the subsidy and design and implement a system for follow-up and monitoring, thereby improving overall rural housing subsidy mechanisms. The program reflects the IDB strategy for Colombia of supporting programs to reduce poverty and modernize public management. The loan is for a 25-year term, with a four-year grace period, at a variable annual interest rate. Local counterpart funds total $9,830,000. The project will be carried out by the Ministry of Agriculture and Rural Development. In October of 2003 the Bank approved a $150 million loan to Colombia to help finance and improve its program of urban housing subsidies for low-income homeowners. Private Participation In Infrastructure A $5 million IDB loan will help strengthen institutional mechanisms that will improve the climate for private participation in infrastructure development. The resources will finance advisory services to identify ways to strengthen policy-making, regulatory and supervisory functions for infrastructure services, thereby enhancing the investment climate. The program will also finance advisory services to design specific private participation projects for the rehabilitation, upgrading, construction, operation and maintenance of infrastructure services, especially in the transportation, power, communications and water and sanitation sectors. The project will be carried out by the National Planning Department. The project is a sequel to a $12.5 million loan to Colombia in 1996 by the IDB and an equal amount of financing by the World Bank that supported a program of privatizations and concessions in infrastructure. The project contributes to the implementation of the IDB strategy for Colombia by supporting efforts to improve competitiveness, economic growth, reforms and modernization of the state. The current IDB loan is for a 20-year term, with a four-year grace period, at a variable interest rate. Local counterpart funds total $2.15 million. =================== C O S T A R I C A =================== ICE: Seeks Aresep's Approval to Hike Rates By March 2005 -------------------------------------------------------- Costa Rica's state-run telecoms monopoly ICE is seeking authorization from the public service regulator Aresep to hike rates by nearly 24% as of March 1, 2005, reports Business News Americas. The planned rates hike - 23.5% for industrial rates and 23.76% for residential users - is part of ICE's goal to generate CRC37 billion (US$81.3mn), which are needed to cover investment, operations, maintenance and fuel purchasing costs, said ICE tariff director Francisco Garro. Simultaneously, ICE is also seeking authorization from Aresep to raise rates for power sold to other companies by 19.9%. Meanwhile, ICE mobile division head Orlando Cascante revealed that ICE boosted its mobile client base to 960,000 this week with a flash sale of 17,000 GSM lines confiscated from non- paying customers. The client base consists of 400,000 GSM users and 560,000 TDMA users and ICE has 38,000 TDMA lines available for sale. The GSM lines are more attractive because they allow a greater variety of services and ICE sold these last 17,000 lines in 36 hours. Cascante expects the remaining TDMA lines to be sold out during January. =========== M E X I C O =========== HYLSAMEX: EDC Agreements to Boost Exports ----------------------------------------- Export Development Canada (EDC) has concluded two financial agreements with manufacturing giant Hylsamex that will facilitate USD 20 million in Canadian export sales to Mexico. "EDC is committed to working with important Mexican companies like Hylsamex to build on Canada's trade relationship with Mexico," said Gilles Ross, Acting President of EDC. "By structuring and delivering the necessary financing and insurance, EDC helps businesses in both our countries identify opportunities and close deals that are mutually beneficial." "Hylsamex is honoured to have EDC as an important participant in our recent loan syndications. EDC's participation attests to our long-time relationship and mutual business interests," said Alejandro Elizondo, CEO of Hylsamex. Credit facilities to two of Hylsamex's main operating subsidiaries, Hylsa and Galvak, will benefit Canadian exporters in the steel and industrial equipment sectors. EDC increased its collaboration with Galvak, a steel galvanizing and painting company, by taking a USD 10 million position in a new USD 175 million credit facility. EDC will also provide USD 10 million in a USD 160 million syndicated loan for steel manufacturer Hylsa. These credit facilities will enable Galvak and Hylsa to purchase Canadian capital goods and services for their Mexican operations. Since EDC established permanent representation in Mexico City in April 2000, and in Monterrey in 2002, business volume with Mexico has grown from CAD 1.2 billion in 1999 to CAD 2.45 billion in 2003. Hylsamex is a vertically-integrated steel producer and processor, using proprietary technology for the direct reduction of iron. The company has an extensive manufacturing and distribution network in North America. EDC provides trade finance and risk management services to Canadian exporters and investors in up to 200 markets. Founded in 1944, EDC is a Crown corporation that operates on commercial principles. MEDIA CONTACT: Glen Nichols EDC-Public Affairs Tel: (613) 598-2876 glnichols@edc.ca ================================= T R I N I D A D & T O B A G O ================================= COURTS TRINIDAD: Dodges Parent Company's Troubles ------------------------------------------------- Courts Trinidad Limited will continue with its normal operations even after its parent company Courts PLC entered into administration in the UK, Courts Trinidad managing director Thomas Pantin said Tuesday. "The administrators have made their positions extremely clear in writing. Their intention is to leave overseas operations which currently are profitable." "They [administrators] want to leave us open for the benefit of the Group. The issue is to address the unprofitable side of the business, which Courts UK has been for some time," he added. Questioned as to whether there is the chance that Courts branches in the Caribbean could become independent entities, Mr. Pantin said: "The administrator will have to look at all the options available to them. Separating the Caribbean from the rest is open to them." ================= V E N E Z U E L A ================= PDVSA: Plans to Increase Refining Capacity ------------------------------------------ State-owned oil Company PDVSA plans to increase its oil refining capacity by 1.2 bpd, reports Petroleumworld News. The upgrade, which will include the construction of a new plant, is a step towards doubling the Company's oil production to 5 million barrels by 2009. Hydrocarbons vice minister Luis Vierma says that the investments will also better equip the Company to increase production conversion into products rather than ship them as crude. *********** 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 * * *