/raid1/www/Hosts/bankrupt/TCRLA_Public/050113.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, January 13, 2005, Vol. 6, Issue 9
Headlines
A R G E N T I N A
AEROLINEAS ARGENTINAS: Files Complaint Against Government
AHOLD: To Report 5.5% Slump in Sale for 4Q04 Say Analysts
COLEGIO HISPANO ARGENTINO: Verification Deadline Approaches
COLORIN INDUSTRIA: $47M Worth of Bonds Remain in Default
EDESUR/EDENOR/EDELAP/AGUAS: Regulators Impose Fine
MOVICOM BELLSOUTH: Telefonica Completes LatAm Acquisition
SANCOR COOP: $300M in Bonds Remain in Default
TELECOM ARGENTINA: Changes Organizational Structure
TELECOM ARGENTINA: America Movil Discloses Stake in Controller
TELEFONICA HOLDING: Seeks to Boost Capital Via Share Issuance
B E R M U D A
BCS INVESTMENTS: Shareholders to Vote on Liquidation Motion
LINES OVERSEAS: Ordered To Comply With SEC Subpoenas
C H I L E
AES GENER: Plant Goes Offline After Argentina Slashes Gas Supply
D O M I N I C A N R E P U B L I C
EDENORTE/EDESUR: Government Moves Tender Date
M E X I C O
EMPRESAS ICA: Secures PS.918 Mln Worth of New Contracts
ISSSTE: Proposal Stirs Conflicting Reactions
P A R A G U A Y
COPACO: Commences Sabotage Probe
P U E R T O R I C O
CENTENNIAL COMMUNICATIONS: Caribbean Main Man Resigns
CENTENNIAL COMMUNICATIONS: Selects Nortel to Upgrade Network
V E N E Z U E L A
PDVSA: Maintains Spending Budget at $15B for 2005
- - - - - - - -
=================
A R G E N T I N A
=================
AEROLINEAS ARGENTINAS: Files Complaint Against Government
---------------------------------------------------------
National airline Aerolineas Argentinas is at odds with the
government again. The new conflict stems from the government's
refusal to renew six national routes for Aerolineas' subsidiary,
Austral.
Dow Jones Newswires recalls that on Dec. 21, the Transportation
Secretariat published a resolution renewing Austral's concession
to fly five national routes. But the said resolution rejected
the airline's request to keep operating six other routes.
The 15-year concession of these six routes expired in December
2001. National regulations dictate that airlines have to request
the renewal at least one year before the concession expires, the
government said. But in a press statement issued Friday, the Air
Transport Subsecretariat said Austral had asked to renew those
routes in June 2001, non-compliant with the regulation.
The government statement said Austral has operated the routes
"without any type of inconvenience or delay" since the December
2001 expiration and will still be allowed to do so given the
Transport Secretariat's objective to expand "the sector's
potential ... considering that (air transport) is a public
service."
According to Undersecretary of Commercial Air Transport Ricardo
Cirielli, with whom Aerolineas Argentinas has had a long-running
and public feud, the government intends to re-tender the routes
in favor of Austral, but the airline must comply with procedural
regulations and participate in a public hearing.
Nevertheless, Aerolineas Argentinas says it is still upset with
the government's decision.
"Austral has flown those routes for 40 years, so there's no
reason to call a tender through the Official Bulletin without
notifying us previously," airline spokesman Julio Scaramella was
quoted as saying in the Tuesday edition of Clarin newspaper.
Scaramella said the company has already filed a complaint with
the government and will go to the courts if it doesn't receive
an answer within 48 hours.
Aerolineas Argentinas, whose controlling shareholder is a
consortium run by Spanish travel group Marsans (GMSN.YY), has
just completed its bankruptcy proceedings. It is planning to
float some of its shares on the local stock exchange later this
year.
CONTACT: AEROLINEAS ARGENTINAS
Torre Bouchard 547, 1106 Buenos Aires, ARGENTINA
Phone: (54-11) 4310-3000
Fax: (54-11) 4310-3585
E-mail: volar@aerolineas.com.ar
Home Page: www.aerolineas.com.ar
AHOLD: To Report 5.5% Slump in Sale for 4Q04 Say Analysts
---------------------------------------------------------
Halfway through its "Road to Recovery Program", Dutch retailer
Royal Ahold NV is expected to report a 5.5% slide in sales for
the fourth quarter of 2004, says analysts polled by Dow Jones
Newswires.
According to the report, the steady weakening of the US dollar
coupled with divestments the Company made to beef up its
operations will have a direct link on its year-end figures.
Analysts predict 4Q04 sales to come in at EUR12 billion and full
year sales to top at EUR51.7 billion.
However, the report cautions that final results could vary due
to additional trading days in the year, foreign exchange
adjustments at the end of December and termination of
unprofitable contracts at U.S. Food Service.
The growth of Ahold's U.S. retail market could give first sign
of its recovery. The Company is dependent on its U.S. operations
where it generates and estimated 70 percent of its sales.
The Company was buffeted by competition in the first three
quarters of 2004 as it struggled to streamline administration,
logistics and management. With the transition accomplished,
analysts predict the U.S. retail sector to show marginal
improvement.
Ahold's "Road to Recovery" is also dependent on the outcome of
its EUR2.5 billion divestment program. Proceeds from the sale of
its non-core assets will be used to reduce debt and regain
investment grade status.
COLEGIO HISPANO ARGENTINO: Verification Deadline Approaches
-----------------------------------------------------------
The verification of claims for the Fundacion Colegio Hispano
Argentino bankruptcy will end on March 30 according to local
news source Infobae. Creditors with claims against the bankrupt
company must present proof of the liabilities to the trustee
before the deadline.
Court No. 2 of Bahia Blanca's civil and commercial tribunal
handles the company's case with the assistance of the city's
Clerk No. 3. The bankruptcy will conclude with the liquidation
of the company's assets to pay its creditors.
CONTACT: Fundacion Colegio Hispano Argentino
Lamadrid 441
Bahia Blanca
COLORIN INDUSTRIA: $47M Worth of Bonds Remain in Default
--------------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. maintained its
'D' rating on the US$47 million bond issued by Colorin Industria
de Materiales Sintet.
Comision Nacional de Valores (CNV), Argentina's securities
regulator, reports that the action was based on the Company's
financial status as of September 30, 2004.
Moody's assigns `D' ratings to bonds that are in payment default
and have a poor prospect of repaying all obligations. The bond
issue, described as `Obligaciones Negociables', will mature on
March 31, 2006.
CONTACT: Colorin Industria de Materiales Sinteticos S.A.
Av del Libertador 7400
Buenos Aires
EDESUR/EDENOR/EDELAP/AGUAS: Regulators Impose Fine
--------------------------------------------------
Holding true to its threat, the Argentine government levied
fines on power and water utilities for intermittent outages in
and around Buenos Aires last week, reports Dow Jones Newswires.
Planning Minister Julio De Vido announced that regulators fined
power producers Edesur SA, Edenor and Edelap SA ARS460,000,
ARS400,000, and ARS140,000, respectively and Aguas Argentinas
ARS2.16 million.
In addition, electricity regulator Enre slapped Edesur and
Edenor with fines of ARS6.6 million and ARS5.4 million,
respectively, for allegedly not investing enough in the sector
to prevent the blackouts.
The government also gave the companies 10 days to present
investment plans.
According to local media reports, some 15,000 clients in Buenos
Aires lost power last week, while some 8,000 faced water
shortages. The outages were triggered by temperatures in the
capital that exceeded 95 degrees Fahrenheit and strained the
electricity grid and water works as residents cranked up air
conditioners and used more water.
CONTACT: EDESUR S.A.
San Jos, 140
Buenos Aires
Tel: 4383-0200
4381-1313
EDENOR S.A.
Azopardo Building
Azopardo 1025 (1107) Capital Federal
Phone: (54-11) 4346-5000
Fax: (54-11) 4346-5300
e-mail: to ofitel@edenor.com.ar
Web Site: http://www.edenor.com.ar
MOVICOM BELLSOUTH: Telefonica Completes LatAm Acquisition
---------------------------------------------------------
-- With the purchase of Movicom, for an enterprise value of 988
million dollars, Telefonica Moviles has completed, in record
time, the acquisition of BellSouth's ten Latin American cellular
operators for a total enterprise value of 5,850 million dollars.
-- The transaction makes Telefonica Moviles the world's second-
largest multinational mobile company, with approximately 72
million managed customers (figures at the end of the third
quarter of 2004) and the biggest in Latin America, with over
50.6 million managed customers in the region.
-- By combining the operations of Movicom and Unifon, Telefonica
Moviles becomes the leading mobile operator in Argentina (with
5.5 million customers at the end of 2004) and is in an excellent
position to capture a significant part of the high growth
potential in the Argentine cellular market.
Telefonica Moviles (NYSE:TEM), the company that manages all the
Telefonica Group's cellular assets, has completed the
acquisition of all of BellSouth's mobile operators in Latin
America with the purchase of 100% of Movicom, BellSouth's
wireless operator in Argentina, for an enterprise value of 988
million dollars. The transaction was carried out after obtaining
the necessary approval from the Argentine authorities and in
compliance with the prevailing regulations on spectrum in
Argentina.
"This acquisition marks a further step in the Telefonica Group's
commitment to Argentina. At the same time, receiving definitive
approval for the acquisition of Movicom enables Telefonica
Moviles to make additional investments of around 400 million
pesos in infrastructure in Argentina in 2005," said Antonio
Viana-Baptista, Chairman and CEO of Telefonica Moviles.
"The combination of Unifon and Movicom should bring out the best
of both companies and give rise to an operator that actively
helps to develop Argentina's mobile communications. Customers
will have access to the most developed products in the world
thanks to the experience and leadership of Telefonica Moviles,
the largest wireless operator in Argentina and Latin America and
the second-largest mobile telephony multinational in the world."
The operator acquired
Movicom ended 2004 with 2.15 million customers. Adding together
the operations of Movicom and Unifon, Telefonica Moviles'
operator in Argentina, would give the Telefonica Moviles Group
some 5.5 million customers at the end of 2004, making it the
clear leader in the Argentine market.
The Telefonica Moviles Group is now in an excellent position to
capture a significant part of the high growth potential of the
Argentine cellular market.
Telefonica Moviles will assume the management of Movicom as of
today and will maintain (as with Unifon) its brand name and
commercial systems during a transition period, until the
company's commercial platforms are integrated into those of the
Telefonica Moviles Group.
Eduardo Caride is the Regional Director of Telefonica Moviles'
operations in the Southern Cone (Argentina, Chile and Uruguay),
while Federico Rava, up to now General Manager of Movicom
BellSouth, has been appointed CEO of Telefonica Moviles' new
integrated operations in Argentina.
Unifon and Movicom customers can rest assured that they will
keep their current benefits, telephone numbers, price plans and
commercial terms with no changes whatsoever.
The global agreement with BellSouth
With the acquisition of Movicom, Telefonica Moviles has
completed the acquisition of BellSouth's ten Latin American
cellular operators, pursuant to the agreement reached by the
Telefonica Group and BellSouth on March 5, 2004.
At the end of the third quarter of 2004 (period ending in
August) these ten operators (in Venezuela, Colombia, Argentina,
Chile, Ecuador, Panama, Peru, Guatemala, Uruguay and Nicaragua)
had 13.1 million customers, with combined revenues of 2,282
million dollars and EBITDA of 741 million dollars.
The acquisitions have been made in record time and the
transaction values 100% of the companies (firm value) at 5,850
million dollars, to be financed with Telefonica Moviles' cash
flow and debt.
The transaction makes Telefonica Moviles the world's second-
biggest multinational cellular company, with more than 72
million managed customers (figures at the end of the third
quarter of 2004) and the largest mobile operator in Latin
America, with over 50.6 million managed customers. In addition,
it is the only mobile telephony company operating in all the
region's key markets, which together have over 421 million
inhabitants. This leaves the company better positioned to
leverage the strong growth potential of the Latin American
market.
Telefonica Moviles
Telefonica Moviles manages all the Telefonica Group's cellular
assets worldwide. It is one of the world's largest mobile
telephony operators and the leader in the Spanish- and
Portuguese-speaking markets. It has operations on three
continents and a managed customer base of around 72 million (at
the end of the third quarter of 2004) including those of
BellSouth's Latin American operators, whose acquisition was
agreed in March, 2004. In 2003, Telefonica Moviles reported
operating revenues of 10,070 million euros (+10.2%), EBITDA of
4,463 million euros (+19.5%) and net profit of 1,608 million
euros. Telefonica Moviles is a founding member of the European
mobile operators' alliance, FreeMove.
Telefonica Moviles' shares are traded on the Spanish and New
York Stock Exchanges with the ticker TEM. For more information
visit our website: www.telefonicamoviles.com
Telefonica Group
The Telefonica Group is one of the world's leading
telecommunications companies. Telefonica is the leading operator
in the Spanish- and Portuguese-speaking markets and the sixth
biggest operator in the world by market capitalisation. Its
activities are centred mainly on the fixed and mobile telephony
businesses, with broadband as the key tool for the development
of both of these. The company has a significant presence in 16
countries and has operations in approximately 40. Telefonica has
a strong presence in Latin America, where the company operates
in eight countries and has a clear growth strategy. Its customer
base amounts to more than 115 million worldwide.
SANCOR COOP: $300M in Bonds Remain in Default
---------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. maintains a
`D' rating on US$300 million worth of corporate bonds issued by
Sancor Coop. Unidas Ltda. under `Program.' The bonds affected
were described as "Titulos de Deuda de Mediano Plazo", the CNV
reports, without revealing the maturity date of the issue.
The rating given is based on the Company's financial standing as
of September 30, 2004.
TELECOM ARGENTINA: Changes Organizational Structure
---------------------------------------------------
Telecom Argentina filed a letter dated January 5, 2005 with the
local stock exchange announcing the implementation of a new
organizational model. The announcement states that the Telecom
Group, conformed by the Company and its controlled subsidiaries,
has adopted a new organizational model, where a new unit
dedicated to the fixed telephony business was created. This unit
will be joined to the existing one that is dedicated to the
cellular business (represented by Telecom Personal S.A.).
The Telecom Group will adjust the rest of the corporate
functions under this new organizational model. Both units (fixed
telephony and cellular) will report to the Chief Executive
Officer, Mr. Carlos Felices.
Moreover, Mr. Edmundo Poggio was designated as General Director
of the Fixed Telephony Unit, while Mr. Carlos Felices will be
General Director of Telecom Personal (the Cellular Unit), in an
interim manner.
The Telecom Group, market leader in the telecommunications
business, has designed this new organizational model in response
to the changing needs of its business and to continue with the
most effective and responsive offer for its clients.
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
TELECOM ARGENTINA: America Movil Discloses Stake in Controller
--------------------------------------------------------------
Mexican mobile phone operator America Movil (AMX) revealed in a
recent 13G filing with the U.S. Securities and Exchange
Commission that it has a 6.5% stake in the preferred B shares of
Nortel Inversora (NTL), the company that owns 54.7% of Argentine
fixed-line provider Telecom Argentina (TEO).
Citing a Tuesday research report by Bear Stearns telecom
analysts, Dow Jones Newswires that the stake was acquired in
2001 and represents 1.2% of Nortel Inversora's total shares.
Though the Bear Stearns analysts said America Movil's stake
doesn't signal that America Movil plans to take further control
of Telecom Argentina, the newly disclosed information could
refuel long-standing speculation that the Mexican company is on
the prowl for major telecom assets in Argentina.
TELEFONICA HOLDING: Seeks to Boost Capital Via Share Issuance
-------------------------------------------------------------
Telefonica Holding de Argentina and its unit Telefonica Moviles
Argentina are planning to issue shares to increase capital.
Telefonica is mulling the issuance of up to ARS2.046 million
worth of shares, while the unit is considering the issuance of
ARS1.254 million of shares.
Both companies have reportedly announced their intent and have
scheduled an assembly for February 15 to consider the planned
operation.
The shares that will be issued will be ordinary, 'a la par',
with a nominal value of ARS1 and with a right to vote, equal
amount to be capitalized and with the same rights to perceive
dividends as the rest of the shares in circulation.
=============
B E R M U D A
=============
BCS INVESTMENTS: Shareholders to Vote on Liquidation Motion
-----------------------------------------------------------
Shareholders of Bermuda-based BCS Investments Limited will be
asked at a Special General Meeting to be held on Jan. 25 to vote
on a motion to put the Company into voluntary liquidation.
This information was revealed by Mr. Donald P. Lines, chairman
of BCS Investments, in a press statement recently released
through the Bermuda Stock Exchange.
"For this motion to carry, 75% of the voting shares must approve
the motion and if passed, it is anticipated that the liquidator
will make a final payout to the shareholders of approximately
$300,000 or $1.00 per share," Mr. Lines said.
The statement also revealed that consolidated earnings of the
company for the year ended Oct. 31, 2004 amounted to $3,066
compared with $3,207,967 in the ten months ended Oct. 31, 2003,
(which included the gain on sale of Bermuda Computer Services
Limited of $3,033,474).
Total consolidated assets at Oct. 31, 2004 consisted of cash and
short-term deposits of $327,490 compared with total consolidated
assets of $6,132,015 at Oct. 31, 2003. Total liabilities at Oct.
31, 2004 amounted to $16,833 including a provision of $10,000 to
cover the anticipated cost of liquidation of the Company
compared with total liabilities of $3,424,424, which included
the dividend payable of $3,000,000.
Furthermore, the statement disclosed that that the company's
name was changed to BCS Investments Limited on Oct. 30, 2003 "to
avoid confusion with the continuing operations of Bermuda
Computer Services Limited. The year-end of the Company was also
changed to 31st October to allow us to provide shareholders with
a better understanding of the financial position of the Company
and its operations."
CONTACT: BCS Investments Limited
27 Reid Street, Hamilton HM 11
Telephone: (441) 295 4754
Fax: (441)295 5491
Officers: Mr. Donald Lines, Chairman
Mrs. Susan Wilson, President
Mr. Kevin Gunther, Vice President
LINES OVERSEAS: Ordered To Comply With SEC Subpoenas
----------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION V. LINES OVERSEAS MANAGEMENT,
LTD., AND SCOTT LINES, Misc. Action No. 1:04 MC 302 (D.D.C.)
The Securities and Exchange Commission announced that, on
January 7, 2005, Magistrate Judge Alan Kay of the U.S. District
Court for the District of Columbia ordered Lines Overseas
Management, Ltd. ("LOM"), a Bermuda-based financial services
firm, and its Managing Director, Scott Lines, to comply with
four subpoenas issued and served on Scott Lines by the
Commission in connection with two separate investigations. LOM
and Lines, a Bermuda resident, had refused to produce documents
and appear for testimony as directed by the four subpoenas. On
June 10, 2004, the Commission filed the above-mentioned subpoena
enforcement action seeking a court order requiring LOM and Lines
to comply with the subpoenas.
The Commission had issued the subpoenas in connection with two
separate investigations into possible fraud, market
manipulation, and reporting violations in the securities of
three U.S. public companies: Sedona Software Solutions, Inc.
("Sedona"), SHEP Technologies, Inc. ("SHEP"), and Hienergy
Technologies, Inc. ("Hienergy"). The Commission's investigations
have revealed that certain individuals engaged in extensive
trading in the securities of Hienergy, Sedona, and SHEP through
accounts at LOM in Bermuda, the Bahamas, and the Cayman Islands.
The Commission alleged that the subpoenaed documents and
testimony were relevant to matters under investigation and were
within the scope of the Commission's investigative authority.
The subpoenas were served on Scott Lines on April 20, 2004 while
he was in the United States.
The Court ordered LOM and Lines to comply with the document
subpoenas by no later than February 14, 2005. Lines was ordered
to appear for testimony in Washington, D.C. within 20 days of
the Commission's receipt of the document production. The Court
found that it possessed personal jurisdiction over LOM and
Lines, and rejected LOM's contention that the confidentiality
laws of Bermuda, the Bahamas, and the Cayman Islands precluded
the firm from complying with the Commission's subpoenas.
=========
C H I L E
=========
AES GENER: Plant Goes Offline After Argentina Slashes Gas Supply
----------------------------------------------------------------
AES Gener, a unit of US-based power company AES Corp., was
forced to halt operations at its Nueva Renca combined cycle
plant indefinitely following deepening cutbacks in Argentine
natural gas deliveries to Chile, according to Dow Jones
Newswires.
Chile's government energy commission (CNE) said Argentina is
scheduled to deliver this week only some 80% of normal demand
for the present Southern Hemisphere summer period.
Argentina last March began cutting back on gas exports to Chile,
its sole gas export market, to offset a looming energy crisis as
both countries headed into the Southern Hemisphere winter.
The Chilean government has launched efforts to minimize
dependence on Argentine gas, but the government insists that it
can't do it on its own.
Economics Minister Jorge Rodriguez is calling on the private
sector, which has been reticent to invest in new power plants or
energy sources, to do its share.
CONTACT: AES Gener S.A.
Mariano Sanchez Fontecilla 310, Piso 3
Santiago, Chile
Phone: (56-2) 6868900
Fax: (56-2) 6868991
Web site: http://www.aesgener.cl/
===================================
D O M I N I C A N R E P U B L I C
===================================
EDENORTE/EDESUR: Government Moves Tender Date
---------------------------------------------
The Dominican Republic government has opted to wait until after
2005 to push through with the tender of local power distributors
EdeNorte, EdeSur and AES-operated EdeEste.
Superintendent of Power Francisco Mendez, quoted in a report
from DR1 Daily News, said that this year the government aims to
reduce fraud and increase subscribers at the EdeNorte and EdeSur
units.
Meanwhile, local power utility coordinator CDEEE has created
commissions to negotiate these tenders. CDEE is also making
recommendations regarding the EdeNorte and EdeSur buyback deal
with Union Fenosa that was inked during the past administration.
===========
M E X I C O
===========
EMPRESAS ICA: Secures PS.918 Mln Worth of New Contracts
-------------------------------------------------------
Empresas ICA Sociedad Controladora, S.A. de C.V. (BMV and NYSE:
ICA), the largest engineering, construction, and procurement
company in Mexico announced Tuesday that its civil construction
subsidiary has signed three contracts with a total value of Ps.
918 million.
The contracts are:
- IMSS General Hospital in Cancun, Quintana Roo for the
Instituto Mexicano del Seguro Social, the Mexican Social
Security Institute, with 186 beds and an area of 39,345 m2. The
project includes a three story main building, parking, and
access areas. The work is scheduled to last 15 months, and the
value of the unit price contract is Ps. 295 million.
- Federal Justice Building in Puebla for the Consejo de la
Judicatura Federal in Cholula, Puebla. The office building
project includes two levels of underground parking, a lobby, 15
floors of offices, and outside areas. The work is scheduled to
be carried out over 24 months under a fixed price contract for
Ps. 515 million.
Both projects include civil works, masonry, finishing, exterior
work, installation of electrical, water, sanitary, control, and
other special systems, as well as the installation of permanent
equipment.
- Civil work on Building B of the Jose Vasconcelos Library, for
the Administrative Committee of the Federal Schools Building
Project (CAPFCE) in Mexico City. The modernist building designed
by the architect Alfredo Kalach includes both steel and concrete
elements, and has representative volumes of 800 tons and 7,000
m3, respectively. The project will be executed over eight months
under a Ps. 107.5 million unit price contract.
ICA was founded in Mexico in 1947. ICA has completed
construction and engineering projects in 21 countries. ICA's
principal business units include civil construction and
industrial construction. Through its subsidiaries, ICA also
develops housing, manages airports, and operates tunnels,
highways, and municipal services under government concession
contracts and/or partial sale of long-term contract rights.
CONTACT: Empresas ICA Sociedad Controladora S.A. de C.V.
Col. Escandon Del Migual Hidalgo
Mexico City, 11800
Mexico
Phone: 525-272-9991
Web site: http://www.ica.com.mx
ISSSTE: Proposal Stirs Conflicting Reactions
--------------------------------------------
The proposal to reform the Social Security and Services
Institute for State Workers (ISSSTE) has divided state workers
into two groups.
El Economista reports that the group led by Joel Ayala asked to
continue developing the issue, while the other seven union
sections, represented by Antonio Vital Galicia, are against the
reform.
"First, we asked for a general financial and technical diagnosis
of the ISSSTE so that based on those results the decisions to be
made about the institute and its workers can be planned",
Galicia said.
Ayala, on the other hand, said he does not support the idea of
creating a private pension fund (Afore) for the institute, but
prefers a public body called "public investment organization"
for specific areas to reinforce the institute.
===============
P A R A G U A Y
===============
COPACO: Commences Sabotage Probe
--------------------------------
Paraguay's state-run fixed line operator Copaco has kicked off
an internal investigation to find out who sabotaged the
Company's networks and facilities, reports Business News
Americas.
However, the Company's investigation is being hampered by the
technical know-how of several current and former employees.
Vandalism left 1,500 users without telephony services during
January 8 and 9 in the area of Nemby, causing the company some
PYG20 million (US$3,175) in losses. Copaco cannot give an
assurance that it can prevent another disruption in its
services.
=====================
P U E R T O R I C O
=====================
CENTENNIAL COMMUNICATIONS: Caribbean Main Man Resigns
-----------------------------------------------------
Centennial Communications Corp. (NASDAQ: CYCL) announced Tuesday
that John de Armas, President - Caribbean Operations, is leaving
the Company for personal reasons.
"Under John's leadership, our Caribbean operations have
experienced significant growth and improvement," said Michael J.
Small, Chief Executive Officer. "John's keen understanding of
the Caribbean market and his enthusiasm for and commitment to
Centennial's vision and values, will be missed. We thank John
for his many contributions to Centennial and wish him success in
the future."
About Centennial
Centennial Communications based in Wall, NJ, is a leading
provider of regional wireless and integrated communications
services in the United States and the Caribbean with over 1
million wireless subscribers.
The U.S. business owns and operates wireless networks in the
Midwest and Southeast covering parts of six states. Centennial's
Caribbean business owns and operates wireless networks in Puerto
Rico, the Dominican Republic and the U.S. Virgin Islands and
provides facilities-based integrated voice, data and Internet
solutions. Welsh, Carson Anderson & Stowe and an affiliate of
the Blackstone Group are controlling shareholders of Centennial.
CONTACT: Mr. Steve E. Kunszabo
Director, Investor Relations
Phone: 732-556-2220
Web site: http://www.centennialpr.com/
CENTENNIAL COMMUNICATIONS: Selects Nortel to Upgrade Network
------------------------------------------------------------
Centennial Communications Corp. (Nasdaq: CYCL), a leading
wireless and broadband telecom service provider in the
Caribbean, has chosen Nortel (NYSE: NT)(TSX: NT) to replace and
upgrade its existing wireless network in Puerto Rico and the
Virgin Islands with advanced third generation (3G) wireless
technology.
This new 3G network -- based on CDMA2000 1X technology -- is
expected to increase subscriber capacity and expand service
coverage to help address growing subscriber demand for such
wireless data services as mobile Web browsing, e-mail and high-
speed download of videos and graphics.
"Centennial is committed to offering its wireless customers the
best quality and most advanced service options," said Michael J.
Small, chief executive officer, Centennial. "We are
strengthening our network leadership by improving the reach,
reliability, performance and capabilities of our wireless
infrastructure, a key differentiator for our heavy usage
wireless customers in this region."
"We are relying on Nortel's superior technology and extensive
expertise in deploying CDMA networks to ensure we have an
infrastructure that can meet the vast demand for wireless voice
and data services in Puerto Rico and the Virgin Islands today,
while also giving us the capacity to continue to grow and expand
our service offerings in the future," said Tom Cogar, chief
technology officer, Centennial.
Nortel will deploy both core (switching) and access (radio base
stations, base station controllers) network equipment for
Centennial. The initial phase of the project is expected to be
complete by July 2005.
"We're excited about working with Centennial to help them
enhance the communications experience of their subscribers with
new, sophisticated wireless services," said Kevin Taylor, vice
president, Wireless Networks, Caribbean and Latin America,
Nortel. "Centennial can count on our world-class technology and
our 30-plus years of experience in deploying advanced, reliable
networks in the Caribbean region to help them successfully
complete this and future projects."
Centennial also selected Nortel in 2003 to deploy a CDMA 1X
network in the Dominican Republic.
"Centennial is a valued customer and we look forward to
expanding this relationship, and to continuing to work with them
to evolve their networks cost-effectively so they can provide
advanced data services to their customers," said Richard Lowe,
president, CDMA Wireless Networks, Nortel. "This contract also
further enhances Nortel's leadership position in providing
mobile solutions for emerging markets like the Caribbean and
Latin America."
The new network being deployed by Centennial will be fully 1xEV-
DO ready. 1xEV-DO is a broadband radio technology that can
support transmission speeds higher than those currently
available using ADSL and cable modems. EV-DO provides speeds
bursting in excess of 2 megabits per second (Mbps). EV-DO users
can expect more than 600 kilobits per second (Kbps) average
throughput -- equivalent to and in some cases better than fixed
broadband -- for high-speed broadband Internet, virtual office,
real-time video, and other data and multimedia services.
Nortel is deploying 1xEV-DO with leading customers around the
world, including Smartcom, Verizon Wireless, Telstra, Pelephone
and Eurotel. Nortel CDMA equipment is designed to support 1xEV-
DO through modular upgrades to existing hardware. This approach
provides a cost-effective and rapid method for bringing to
market advanced wireless services and associated revenues.
Nortel CDMA technology is designed to maximize existing customer
investments and help service providers drive down capital and
operating costs. It supports multiple frequencies, including
450, 800, 1900 and 2100 MHz. Nortel has designed, deployed and
launched more than 300 wireless networks in more than 50
countries around the world. Nortel was the first industry
supplier to have wireless networks operating in all advanced
radio technologies (GSM/GPRS/EDGE, CDMA2000 1X and EV-DO, UMTS
and WLAN), and is the only end-to-end supplier of all new-
generation wireless solutions.
About Centennial
Centennial Communications (Nasdaq:CYCL), based in Wall, N.J., is
a leading provider of regional wireless and integrated
communications services in the United States and the Caribbean
with over 1 million wireless subscribers. The U.S. business owns
and operates wireless networks in the Midwest and Southeast
covering parts of six states. Centennial's Caribbean business
owns and operates wireless networks in Puerto Rico, the
Dominican Republic and the U.S. Virgin Islands and provides
facilities-based integrated voice, data and Internet solutions.
Welsh, Carson Anderson & Stowe and an affiliate of the
Blackstone Group are controlling shareholders of Centennial.
About Nortel
Nortel is a recognized leader in delivering communications
capabilities that enhance the human experience, ignite and power
global commerce, and secure and protect the world's most
critical information. Serving both service provider and
enterprise customers, Nortel delivers innovative technology
solutions encompassing end-to-end broadband, Voice over IP,
multimedia services and applications, and wireless broadband
designed to help people solve the world's greatest challenges.
Nortel does business in more than 150 countries.
CONTACT: Nortel
Ms. Ferngene Kook
Phone: 954-858-7101
E-mail: fkook@nortelnetworks.com
Ms. Jamie Moody
Phone: 972-684-7167
E-mail: moodyjam@nortelnetworks.com
Centennial Communications
Mr. Steve Kunszabo
Phone: 732-556-2220
E-mail: skunszabo@centennialcorp.com
Web site: www.centennialwireless.com
=================
V E N E Z U E L A
=================
PDVSA: Maintains Spending Budget at $15B for 2005
-------------------------------------------------
Mr. Rafael Ramirez, the president of Petroleos de Venezuela,
announced Tuesday that the state oil giant has set a US$15-
billion spending budget for 2005, relates Dow Jones Newswires.
According to Ramirez, who is also Venezuela's oil minister, 70%
of what the Company invests this year will go toward exploration
and production. PdVSA still plans to reach 5 million barrels a
day in oil production by 2009, a goal the company announced in
early 2004.
"We will maintain, during the time that is needed, an investment
level similar to $5 billion (per year)...to reach 5 million b/d
in production by 2009," said Ramirez.
The budget for this year is similar to last year's US$15.2
billion spending plan for operating costs and investment
outlays, up from the US$12 billion it spent in 2003. The 2004
budget included a $5 billion investment budget, geared toward
improving the nation's refining capacity and increasing oil
production capacity.
***********
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 2005. 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 * * *