/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/050209.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 Wednesday, February 9, 2005, Vol. 6, Issue 28 Headlines A N T I G U A & B A R B U D A LIAT: Funding From CDB Will Depend on Viability of Action Plan A R G E N T I N A BERSA: Sale Process Scheduled to Start in March CLINICA SALUD: Claims Submission Nears End COVICSA S.A.: Court Designates Trustee For Bankruptcy DAILY EXPRESS: Set to Complete Claims Verification ECOPSA S.R.L.: General Report Due for Submission Feb. 22 HABER MAYORISTA: Gets Court OK for Reorganization IRSA: Reduces Debt by $1.25M IRSA: U.S. Firm Increases Indirect Stake to 7.6% LITTLE PALACE: Trustee to End Verification Period NOVA TEK: Initiates Bankruptcy Proceedings TELECOM ARGENTINA: Creditors Favor APE Proposal YARIKA S.A.: Trustee to Close Verification Phase * ARGENTINA: Debt Swap Going Smoothly B E R M U D A ANNUITY & LIFE: Amends Reinsurance Agreement With Transamerica FOSTER WHEELER: Wins $18M Power Plant Deal GLOBAL CROSSING: Names New Financial Team B R A Z I L CESP: Sao Paulo Governor Seeks to Privatize CTEEP UNIBANCO: Completes Issuance of $125M, 60-Month Bonds C O L O M B I A COLOMBIA TELECOMUNICACIONES: Pays Off $47M Debt To 7 Banks C O S T A R I C A ICE: Proposes Flat Rate for RDSI to Prevent Customer Exodus H O N D U R A S * HONDURAS: IMF Mission Presents Favorable Outlook J A M A I C A AIR JAMAICA: Suspends Service to Houston M E X I C O HYLSAMEX: Share Price Fluctuations Due to Market Forces INNOPHOS: Commitments Solid for Floating Rate Senior Notes INNOPHOS: S&P Cuts Ratings, Off Watch; Outlook Negative MAXCOM TELECOMUNICACIONES: To Cover Fixed Telephony Service Gap MINERA AUTLAN: To Open New Sinter Plant in August TV AZTECA: U.S. Federal Judge Grants Motion to Delay Trial U R U G U A Y UTE: Three Firms Submit Bids for 400MW Thermo Project V E N E Z U E L A PDVSA: Workers Favor Cashcard In Lieu of Subsidized Food Stores PDVSA: Harvest To Tackle Output Issues Soon - - - - - - - - ================================= A N T I G U A & B A R B U D A ================================= LIAT: Funding From CDB Will Depend on Viability of Action Plan -------------------------------------------------------------- Struggling Caribbean carrier LIAT can expect aid from the Caribbean Development Bank (CDB) once it is able to present a feasible five-year plan. LIAT had negotiated for funds from the CDB to upgrade its fleets and the restructure operations. Dr. Compton Bourne, president of CDB, said in a report from the Barbados Daily Nation that the bank's decision regarding additional financing for the airline depends on the viability of the plan the airline will outline. LIAT's financial health is a cause of concern among the Caribbean nations because of their dependence on air services to transfer commodities from one country to another. To keep the airline on the air, Antigua and Barbuda, Barbados, St Vincent and the Grenadines and Trinidad and Tobago have collectively provided EC$44 million for restructuring. In addition, the group is also establishing a fund, with an annual provision of EC$150 million, to give LIAT access to more financing. However, the plan still needs approval from the Trinidad and Tobago Cabinet and the CARICOM Heads of Government. CONTACTS: ANTIGUA (ANU) City Ticket Office Woods Center, St. John's BARBADOS (BGI) Oliver Haywood E-mail: haywoodo@liatairline.com Tel.: 246 428 8888 246-436-9753 246-426-7140 ST.LUCIA (SLU) Josse Mesmin E-mail: mesminj@liatairline.com Tel: 758 452 3051/2 ST.VINCENT (SVD) Dominique Patterson E-mail: pattersond@liatairline.com Tel: 784 457 1821 ================= A R G E N T I N A ================= BERSA: Sale Process Scheduled to Start in March ----------------------------------------------- Argentine federal bank Banco de la Nacion will initiate the sale process of local bank Nuevo Banco de Entre Rios (BERSA) in March, reports Business News Americas. BERSA, along with Nuevo Banco Bisel and Banco Suquia, were taken over by the Argentine government in early 2002, when French banking conglomerate Credit Agricole SA left Argentina in the middle of the country's financial crisis. Nacion has already sold Suquia to local bank Banco Macro Bansud. According to Entre Rios governor Jorge Busti, the BERSA auction has drawn the interest of several companies in light of the fact that Argentina's deposit insurance agency Sedesa will inject ARS200 million (US$68.7mn) into the bank to boost its net equity. The governor also said that BERSA is likely to remain as the province's financial agent after the sale into private hands. CLINICA SALUD: Claims Submission Nears End ------------------------------------------ Creditors of bankrupt Clinica Salud D Elia S.A. have until tomorrow to submit proof of their claims for verification. All required documents must be submitted to Mr. Roberto Di Martino, the trustee, by the said deadline in order to qualify for the company's post-liquidation payments. Court No. 4 of Lomas de Zamora's civil and commercial tribunal has jurisdiction over this bankruptcy case. CONTACT: Clinica Salud D Elia S.A. Santiago Plaul 2082 Lanus Mr. Roberto Di Martino, Trustee Basavilbaso 2026 Lanus COVICSA S.A.: Court Designates Trustee For Bankruptcy ----------------------------------------------------- Buenos Aires accountant Carlos Alberto Bavio was assigned trustee for the bankruptcy of local company Covicsa S.A., relates Infobae. Mr. Bavio will verify creditors' claims until March 24, the source adds. After that, he will prepare the individual reports, which are to be submitted in court on May 5. The general report should follow on June 16. The city's Court No. 22 holds jurisdiction over the Company's case. Clerk No. 44 assists the court with the proceedings. CONTACT: Mr. Carlos Alberto Bavio, Trustee Pavon 4374 Buenos Aires DAILY EXPRESS: Set to Complete Claims Verification -------------------------------------------------- The restructuring process for Daily Express S.A.'s debts moves forward with the closing of the claims verification period tomorrow. Creditors are required to submit proof of their claims to trustee Baldomero Gonzalez Herrera by the said date to qualify under the Company's settlement plan. Court No. 18 of Buenos Aires' civil and commercial tribunal has jurisdiction over this case. Clerk No. 35 assists the court with the proceedings. CONTACT: Mr. Baldomero Gonzalez Herrera, Trustee Avda de Mayo 1260 Buenos Aires ECOPSA S.R.L.: General Report Due for Submission Feb. 22 -------------------------------------------------------- The trustee assigned to supervise the liquidation of Ecopsa S.R.L., Ms. Liliana Ester Taccetta, is set to submit a general report on the case February 22, says Infobae. This report provides the court with a review of the Company's accounting and business records. Court No. 6 of Rosario's civil and commercial tribunal handles this case that will close with the sale of all the company's assets. CONTACT: Ms. Liliana Ester Taccetta, Trustee Dorrego 1615 Rosario (Santa Fe) HABER MAYORISTA: Gets Court OK for Reorganization ------------------------------------------------- Haber Mayorista S.A. will begin reorganization following the approval of its petition by Court No. 5 of Cordoba's 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. Gabriel Tobal will oversee the reorganization proceedings as the court-appointed trustee. CONTACT: Mr. Gabriel Tobal, Trustee Lavalleja 1206 BA Cofico (Cordoba) IRSA: Reduces Debt by $1.25M ---------------------------- By letter dated February 4, 2005, IRSA Inversiones y Representaciones S.A. reported that a holder of Company's Convertible Notes exercised it conversion right. Hence, the financial indebtedness of the Company shall be reduced in US$ 1,250,000 and an increase of 2,293,577 ordinary shares face value pesos 1 (V$N 1) each was made. The conversion was performed according to terms and conditions established in the prospectus of issuance at the conversion rate of 1.83486 shares, face value pesos 1 per Convertible Note of face value US$ 1. As a result of that conversion the amount of shares of the Company goes from 261,556,943 to 263,850,520. On the other hand, the amount of registered Convertible Notes is US$ 84,902,381. CONTACT: IRSA Inversiones y Representaciones S.A. 1066 Bolivar 108 Buenos Aires Argentina Phone: 541-342-7555 IRSA: U.S. Firm Increases Indirect Stake to 7.6% ------------------------------------------------ U.S. investment management firm Capital Group Companies informed the Buenos Aires stock exchange Friday that it has increased its indirect stake in Argentine real estate developer IRSA- Inversiones y Representaciones SA (IRSA). Dow Jones Newswires reports that the Los Angeles-based fund paid US$8.5 million for 694,800 ADRs, which represent 6.948 million IRSA shares, or a 2.7% stake. This brings its total IRSA holding to 7.6% from 4.9%. IRSA, Argentina's largest, most well-diversified real estate company, reported a net profit of ARS17.2 million ($1=ARS2.92) in the first quarter of fiscal year 2005, reversing an ARS15.2 million loss a year earlier. CONTACT: Mr. Alejandro Elsztain Director or Mr. Gabriel Blasi CFO Phone: +(5411) 4323 7449 e-mail: finanzas@irsa.com.ar Web Site: http://www.irsa.com.ar/ LITTLE PALACE: Trustee to End Verification Period ------------------------------------------------- Mr. Pablo Alberto Amante, the trustee handling the Little Palace S.A. liquidation case, will close the verification of creditors' claims tomorrow. Creditors who fail to comply with the submission deadline will not be able to participate in the liquidation, and consequently forfeit their claims against the Company. The case is under the jurisdiction of Buenos Aires' civil and commercial Court No. 26. CONTACT: Little Palace S.A. Guemes 3856 Buenos Aires Mr. Pablo Alberto Amante, Trustee Lavalle 1537 Buenos Aires NOVA TEK: Initiates Bankruptcy Proceedings ------------------------------------------ Court No. 24 of Buenos Aires' civil and commercial tribunal declared Nova Tek S.R.L. "Quiebra," reports Infobae. Mr. Arnaldo Manuel, who has been appointed as trustee, will verify creditors' claims until April 11 and then prepare the individual reports based on the results of the verification process. The individual reports will then be submitted to court on May 19, followed by the general report on July 4. Clerk No. 48 assists the court on the case that will close with the liquidation of the Company's assets to repay creditors. CONTACT: Mr. Arnaldo Manuel, Trustee Parana 224 Buenos Aires TELECOM ARGENTINA: Creditors Favor APE Proposal ----------------------------------------------- The bondholders Meeting Held February 4, 2005 adopted the following resolutions adopted upon consideration of the day's agenda: 1) Appointment of two persons to record the minutes together with the person appointed by Telecom to preside over the Meeting. Representatives of the Bank of New York and Fimex International LTD were appointed unanimously. 2) Consideration of Telecom's APE proposal and election of option(s) in the event that the APE proposal is approved. All the attending creditors in each and every Series voted in favor of Telecom's APE proposal, with no votes against the proposal. To view results of voting process: http://bankrupt.com/misc/TelecomAccept.htm To view creditors present at the meeting for all eight Series of Corporate bonds involved in the Bondholders' Meeting: http://bankrupt.com/misc/telecomAttendance.htm To view election of options by series: http://bankrupt.com/misc/TelecomOptions.htm CONTACT: Telecom Argentina S.A. Alicia Moreau de Justo No. 50 Buenos Aires, 1107 Argentina Phone: (54-11) 4968-3627 YARIKA S.A.: Trustee to Close Verification Phase ------------------------------------------------ Yarika S.A. will complete a significant phase in its liquidation with the closing of the claims verification period tomorrow. Claims must be presented for authentication to trustee Leonardo Schvarztein. Creditors who fail to submit proof of the company's indebtedness by the said deadline cannot participate in the post-liquidation distributions to be made. Court No. 11 of Buenos Aires' civil and commercial tribunal handles this case with help from Clerk No. 22. CONTACT: Mr. Leonardo Schvarztein, Trustee Uruguay 390 Buenos Aires * ARGENTINA: Debt Swap Going Smoothly ------------------------------------- Interest in Argentina's debt swap is picking up with 32 percent of bondholders now willing to exchange their defaulted securities for new debt. Last week, only 26 percent had shown interest in Argentina's offering. While the pace of the restructuring is going well according to Mr. Luis Corsigilia, an executive at the Buenos Aires Stock Exchange, Mr. Fernando Losada of ABN Amro Inc. contends that the country had encountered more resistance than anticipated when it opened the tender Jan. 14. In a report from Bloomberg, Mr. Losada says "The government initially thought it would get 100 percent of domestic investors very quickly and that would act as an incentive to lure international investors." However, it has only managed to convince around 75 percent of local investors to join the exchange. The offer is set to close Feb. 28. The Global Committee of Argentina Bondholders, the largest international creditor group holding one-third of the country's defaulted debt, has in fact labeled the Country's move as a scam. The group cited the 8 percent growth in Argentina's economy as evidence that the country can pay more than the 25 cents to the dollar it is willing to exchange for the defaulted bonds. The reduction in value will however be offset by higher interest rates and shorter maturities. The exchange covers $10 billion of so-called par bonds, $20.2 billion of discount bonds and $8.3 billion of quasi-par bonds. Currently, Argentina has offers for 27.7 percent of the discount bonds, 16 percent of the par bonds and all of the quasi par bonds. ============= B E R M U D A ============= ANNUITY & LIFE: Amends Reinsurance Agreement With Transamerica -------------------------------------------------------------- As contemplated by a previously announced letter of intent dated December 31, 2004, on January 31, 2005, a wholly-owned subsidiary of Annuity and Life Re (Holdings), Ltd. (the "Company") entered into definitive documents and completed the termination and recapture of its annuity reinsurance agreement with Transamerica Occidental Life Insurance Company ("Transamerica"). The Company and Transamerica entered into an Amendment of the annuity reinsurance agreement between the two parties, effective as of December 1, 2004 (the "Amendment"). Pursuant to the Amendment, the annuity reinsurance contract between Transamerica and the Company was terminated, and Transamerica recaptured all business ceded under the contract effective as of December 1, 2004. In consideration of the recapture, the Company paid Transamerica all amounts owed under the annuity reinsurance contract through November 30, 2004, along with a termination premium of $14.0 million. Also as contemplated by the previously announced letter of intent, on January 31, 2005, the Company entered into a Master Agreement (the "Master Agreement") with Transamerica, pursuant to which the Company novated to Transamerica two blocks of life reinsurance as of December 31, 2004. In consideration of these novation transactions, the Company paid Transamerica $18.5 million. The amount paid to Transamerica in connection with the novations was based on models and data prepared by the Company, and is subject to adjustment based on certain factors, including Transamerica's validation of the Company's models. In addition, if Transamerica cannot obtain Sarbanes-Oxley clearance from its Steering Committee with respect to the two blocks of life reinsurance, the Company and Transamerica have agreed to take steps to unwind the novations. Transamerica must notify the Company by March 2, 2005 if it is unable to obtain such clearance. In connection with the consummation of the novations of the two blocks of life reinsurance and the termination of the annuity reinsurance contract, approximately $29 million of collateral held in a trust established with respect to certain of the life reinsurance contracts was transferred to Transamerica. In addition, the letters of credit posted by the Company on behalf of the cedent under another of the life reinsurance contracts were cancelled and the collateral securing those letters of credit was released. All amounts paid to Transamerica in connection with the novation and recapture transactions were paid from this collateral. Following those payments, approximately $8 million of cash and securities previously posted as collateral was released to the Company. The Company expects to report substantial charges in the fourth quarter of 2004 relating to the transactions described above. While the Company is still preparing its financial results for the fourth quarter of 2004, it anticipates a GAAP loss of approximately $61 million relating to the novation and recapture transactions. Completion of Acquisition or Disposition of Assets On January 31, 2005, the Company completed the previously announced novation to Transamerica of two blocks of life reinsurance as of December 31, 2004, and the recapture of its largest annuity reinsurance contract as of December 1, 2004. Results of Operations and Financial Condition On January 31, 2005, the Company completed the previously announced novation to Transamerica of two blocks of life reinsurance as of December 31, 2004, and the recapture of its largest annuity reinsurance contract as of December 1, 2004. CONTACT: Annuity & Life Re (Holdings), Ltd. Cumberland House 1 Victoria St. P.O. Box HM 98 Hamilton, HM AX Bermuda Phone: 441-296-7667 FOSTER WHEELER: Wins $18M Power Plant Deal ------------------------------------------ Foster Wheeler Ltd. (OTCBB: FWHLF) announced Monday that its subsidiary, Foster Wheeler North America Corp., has been awarded a contract valued in excess of $18 million by SNC-Lavalin Power Inc. of Redmond, Washington. The booking will be included in the fourth quarter of 2004. Foster Wheeler's Canadian subsidiary, headquartered in Ontario, will design and supply a 55 MW boiler for Fibrominn LLC's landmark green energy project in Benson, Minnesota. This will be the first U.S. power plant to use poultry litter as its primary fuel. SNC Lavalin is the EPC contractor for the project. "Foster Wheeler North America Corp. remains committed to helping its customers find environmentally sound methods of generating power," said Bernard H. Cherry, president and chief executive officer. "In addition to providing an alternative, more environmentally friendly method of disposing of poultry-litter waste, the plant's only by-product is ash that can be recycled as fertilizer. This plant also contributes to the reduction of greenhouse gas production through the displacement of existing fossil-fueled generation by carbon-neutral biomass electricity." The Benson plant will burn over 700,000 tons of poultry litter and other biomass fuels per year under a long-term supply agreement with Minnesota poultry producers. The plant is expected to be operational in 2007. Foster Wheeler has had a 15-year relationship with the founders of Fibrominn's parent company, Fibrowatt LLC of Yardley, Pennsylvania, having performed consultancy services for the UK Fibrowatt Group when it built the world's first two poultry litter fired power plants in the UK in the early 1990s, and having supplied the boiler for that Group's 38.5 MW poultry litter power plant at Thetford in the UK, which came on stream in 1998. The UK Fibrowatt Group now holds a 30% stake in Fibrowatt LLC, which was set up to develop multiple opportunities in the USA using the Fibrowatt technology. About Foster Wheeler Foster Wheeler Ltd. is a global company offering, through its subsidiaries, a broad range of design, engineering, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA. CONTACT: Foster Wheeler Media Contacts Ms. Maureen Bingert Phone: 908-730-4444 Other Inquiries Phone: 908-730-4000 Web site: http://www.fwc.com/ GLOBAL CROSSING: Names New Financial Team ----------------------------------------- Global Crossing (Nasdaq: GLBC) announced Monday the appointment of a new financial leadership team with distinguished backgrounds in finance and telecommunications, as the company enters a new phase in 2005. Effective immediately, Jean Mandeville becomes the company's executive vice president and chief financial officer. William I. Lees, Jr. will take up the post of senior vice president, accounting and financial operations, and William T. Ginn will be named vice president of finance for Global Crossing UK Telecommunications Ltd. (GCUK). "The collective experience and expertise of this new team will ably guide Global Crossing to attain our financial goals and our mission of becoming an industry leader in global IP services," said John Legere, Global Crossing's chief executive officer. "Our steady execution against those goals in this new phase of our evolution -- aided by these talented individuals -- will demonstrate once again that what this company envisions, it also achieves." Jean Mandeville was previously chief financial officer of Singapore Technologies Telemedia (ST Telemedia), Global Crossing's majority shareholder. His career has included positions in telecommunications, education and research, transport and maritime, including more than 15 years in finance and telecommunications alone. "Jean will play a pivotal role as we forge a leadership position in the fast-changing telecom industry," continued Legere. "With Jean leading our first-rate team of financial professionals, Global Crossing will continue to supply world-class customer solutions, enabled by an unmatched technology, security and support model." Prior to joining ST Telemedia, Mr. Mandeville's professional achievements included several senior roles in telecommunications and finance. Mr. Mandeville served in various capacities at British Telecom (BT) and was appointed president of BT Asia Pacific in 2000. As head of business planning for BT Europe, he oversaw the development of BT's entry strategy for European telecommunications markets. Prior to joining BT, Mr. Mandeville was a senior consultant with Coopers & Lybrand, Belgium, among other positions. Mr. Mandeville received a license in applied economics and special degree in sea law from the University Saint-Ignatius Antwerp. He also attended the Stanford Senior Executive Program in 1996 and has accumulated numerous post- graduate achievements in general management, mergers and acquisitions, strategic alliances, strategy, financial and marketing management and economics. William Lees, who will be Global Crossing's newly appointed senior vice president for accounting and financial operations, will be the company's chief accounting officer reporting to Mr. Mandeville. He has more than 20 years' experience in multinational planning and operations, most recently serving as senior vice president and corporate controller of Mediacom Communications. His background includes senior positions at the manufacturing companies Formica Corporation and Imperial Schrade, as well as thirteen years at Ernst & Young. Mr. Lees received B.S. degrees in accounting and economics from Boston College, and he participated in the University of Michigan's executive training program. He is a member of the American Institute of Certified Public Accountants. Global Crossing is reinforcing the leadership strength of its UK business by naming William Ginn the vice president of finance. As the senior financial officer for GCUK, Ginn will report to Mr. Mandeville and will work closely with Phil Metcalf, managing director, as they focus on growing one of the company's most important and successful endeavors, its managed services business. Mr. Ginn was most recently the chief financial officer of Cable and Wireless America, where as a member of the firm's leadership team, he implemented a restructuring plan resulting in significant performance improvements. His previous responsibilities included serving as the vice president of finance for Cable and Wireless Global, as well several senior positions within Cable and Wireless UK. Mr. Ginn received B.A. and M.A. degrees from Cambridge University, as well as a Ph.D. from the University of Kent. He is a member of the Chartered Institute of Management Accountants. Daniel P. O'Brien, Global Crossing's former CFO, will remain with the company during the time required to complete a smooth transition, and the company expressed its gratitude for his many contributions over this formative period in its history. About Global Crossing Global Crossing provides telecommunications solutions over the world's first integrated global IP-based network. Its core network connects more than 300 cities and 30 countries worldwide, and delivers services to more than 500 major cities, 50 countries and 6 continents around the globe. The company's global sales and support model matches the network footprint and, like the network, delivers a consistent customer experience worldwide. Global Crossing IP services are global in scale, linking the world's enterprises, governments and carriers with customers, employees and partners worldwide in a secure environment that is ideally suited for IP-based business applications, allowing e- commerce to thrive. The company offers a full range of managed data and voice products including Global Crossing IP VPN Service, Global Crossing Managed Services and Global Crossing VoIP services, to more than 40 percent of the Fortune 500, as well as 700 carriers, mobile operators and ISPs. CONTACT: Global Crossing Press Contacts Ms. Becky Yeamans Phone: + 1 973-937-0155 E-mail: PR@globalcrossing.com Ms. Tisha Kresler Phone: + 1 973-937-0146 E-mail: PR@globalcrossing.com Mr. Mish Desmidt Phone: + 011 44 1256 732 866 E-mail: EuropePR@globalcrossing.com Analysts/Investors Contact Ms. Laurinda Pang Phone: + 1 800-836-0342 E-mail: glbc@globalcrossing.com Web site: http://www.globalcrossing.com =========== B R A Z I L =========== CESP: Sao Paulo Governor Seeks to Privatize CTEEP ------------------------------------------------- Sao Paulo Governor Geraldo Alckmin sent a bill to the state's legislature Thursday, seeking to include power transmission company CTEEP in the state's privatization program, reports Business News Americas. The move is part of the state government's efforts to rescue its indebted generation company CESP, which is a sister company of CTEEP. Sao Paulo state controls 36% of CTEEP, while federal holding power company Eletrobras has a 35% minority stake. CTEEP could be valued at around BRL1 billion, says newspaper Valor Economico. The plan is to sell control of CTEEP and use the proceeds to capitalize CESP. CESP is struggling to pay a staggering debt of BRL10.4 billion, of which BRL5.8 billion is linked to foreign currencies. The company's situation was made even worse by power regulations that call for the expiry of 25% of generators' power sale contracts every year, thereby reducing revenues for generators. Meanwhile, local press reported that legislators from the left- leaning Workers' Party (PT) have said they would block the sale of CTEEP. CONTACT: Companhia Energetica De Sao Paulo (CESP) Rua da ConsolaO o, 1.875 CEP 01301 -100 S o Paulo, Brazil Phone: +55-11-234-6322 Fax: +55-11-287-0871 Home Page: http://www.CESP.com.br/ Contact: Mauro G. Jardim Arce, Chairman Ruy M. Altenfelder Silva, Vice Chairman Vicente Kazuhiro Okazaki, Finance Director UNIBANCO: Completes Issuance of $125M, 60-Month Bonds ----------------------------------------------------- Unibanco, Brazil's third-largest private bank, completed late Thursday the issuance of a total of US$125 million bonds overseas, reports Dow Jones Newswires. The 60-month, Brazilian reals-denominated bonds were placed at an annual yield of 8.7% over the variation in the IGP-M inflation index. The IGP-M is an inflation index published by the private Getulio Vargas Foundation. The bond sale was coordinated by Unibanco and Citigroup. Unibanco had originally planned to place only US$100 million but strong demand lifted the issue to US$125 million, according to a spokesman for the bank. CONTACT: Investor Relations Unibanco - Uniao de Bancos Brasileiros S.A. Ave. Eusebio Matoso 891 15th floor - Sao Paulo, SP 05423-901 Brazil Phone: (55 11) 3097-1980 Fax: (55 11) 3813-6182 E-mail: investor.relations@unibanco.com Web site: http://www.ir.unibanco.com =============== C O L O M B I A =============== COLOMBIA TELECOMUNICACIONES: Pays Off $47M Debt To 7 Banks ---------------------------------------------------------- Colombia Telecomunicaciones, which was created by the government from the ashes of the liquidated state telco Telecom, has paid off a US$47 million debt to seven international banks, reports Business News Americas. The payment, according to liquidating agency Fiduciaria La Previsora, is the final installment of an US$85-million debt with the banks, which had helped finance line installation in rural areas. Colombia Telecomunicaciones has been channeling revenues to help pay off debts left by its predecessor. Already, the company has paid off bank debts of COP324 billion (US$137mn), including the first US$38 million of the US$85 million debt with the Inter- American Development Bank, Banesto, Mitsui, Natexis, Kleinwort, BSCH and ICO. =================== C O S T A R I C A =================== ICE: Proposes Flat Rate for RDSI to Prevent Customer Exodus ----------------------------------------------------------- In an effort to keep its customers, Costa Rica's telecoms monopoly ICE sought approval from the country's utilities regulator Aresep to implement a flat rate of US$14 for telephony users of its integrated digital network services (RDSI), reports Business News Americas. RDSI enables users to increase the throughput of their telephone line by adding a special device that digitalizes the signal, which increases a typical 56Kbps dial-up internet connection to 128Kbps. RDSI users currently pay CRC3.6 (US$0.008) a minute to surf at 64Kbps and double that a minute to surf at 128Kbps. Average monthly usage is 43 hours, which ends up costing around US$40. Added to Internet access services through ICE or RACSA, the total is around US$56 monthly. ICE believes that it is losing RDSI clients because of the high price. If the flat rate proposal will be approved, RDSI users will only have to pay US$16 for Internet access and US$14 for phone service. =============== H O N D U R A S =============== * HONDURAS: IMF Mission Presents Favorable Outlook -------------------------------------------------- The following statement was issued Monday in Tegucigalpa by an International Monetary Fund (IMF) staff mission: "An IMF mission visited Tegucigalpa during January 24-February 7, 2005, for discussions with the authorities on the second review of the PRGF program, the 2005 Article IV consultation, and the status of implantation of policy commitments for the HIPC completion point. "The mission found that the government's economic program continues to deliver favorable results. Preliminary estimates suggest that real GDP grew by nearly 5 percent in 2004- significantly above projections-with a broad rebound across all sectors, including agriculture. Inflation has now stabilized, after drifting up during much of last year mainly because of high oil prices. The external position has also strengthened significantly, boosted by rapid growth in remittances, exports, and capital inflows; as a result, official international reserves now stand at over US$ 1.6 billion, well above the program target. "The strong performance reflects the government's steadfast implementation of macroeconomic policies and structural reforms envisaged under the program. The fiscal deficit was reduced in line with the program targets, owing especially to improved control of the wage bill which permitted poverty-reducing spending to increase as targeted. Important structural reforms implemented included strengthening the financial system, and improving tax administration and governance. All quantitative targets for end-December were met, and good progress has also been made on the set of trigger conditions for the completion point under the enhanced HIPC initiative. "Looking ahead, it will be critical for Honduras to maintain broad consensus on the program supported by the PRGF, including the key elements of sustained public sector wage discipline, prudent macroeconomic policies, and financial sector reforms. Keeping the reforms on track will be important for Executive Board consideration of the PRGF review and HIPC completion. The program is working well, and evidence is growing that the key goal of poverty reduction is being achieved. It will be critical to maintain continuity in these policies, through the forthcoming election year and beyond, so that the hard-won gains of higher growth and social progress can endure and prosper further in the coming years. "Upon its return to Washington, the mission will submit its report to the IMF's Management. Executive Board discussion of the PRGF review, the Article IV consultation, and the HIPC completion point could take place around end-March." CONTACT: International Monetary Fund External Relations Department Public Affairs Phone: 202-623-7300 Fax: 202-623-6278 Media Relations Phone: 202-623-7100 Fax: 202-623-6772 ============= J A M A I C A ============= AIR JAMAICA: Suspends Service to Houston ---------------------------------------- Effective April 3, 2005, Air Jamaica will suspend service to/from Houston's George Bush Intercontinental Airport, Texas. Executive Vice President Operations & Planning, John Lewis, says the suspension of service to Houston is part of the ongoing restructuring effort to bring the airline into financial stability and improve its viability. Service to Manchester, Antigua and London to Havana have also been suspended as part of the restructuring process. In addition, the frequency of flights on other routes has been reduced and the restructuring team is reviewing other ways to reduce operating costs. Executive Chairman, Dr. Vincent Lawrence, thanked the people of Jamaica and Houston for their support of the airline and its staff and promises that the excellent service and high safety standards to which they have become accustomed will be maintained in this period of transition. He says the national airline is important to the country's economy and is a source of pride for the Jamaican people and everything will be done to ensure that it survives and becomes viable. Air Jamaica commenced service to Houston on June 7, 2001. =========== M E X I C O =========== HYLSAMEX: Share Price Fluctuations Due to Market Forces ------------------------------------------------------- Hylsamex, a Mexican steel company majority-owned by steel and industrial conglomerate Grupo Alfa, explained to the stock market regulator Monday why there were fluctuations of up to 2.5% on its B and L series stock. Hylsamex's B and L series stock (BMV: HYLSAMX.B and L) opened at MXN35.23 and increased to as much as 36.10 during afternoon trading. Share trading volume for the day was 24,000 for series L and 5,900 for series B. According to the company, the fluctuations were due to "natural movements in the share market." CONTACT: Mr. Othon Diaz Del Guante Phone: +(52) 81-8865-1240 E-mail: odiaz@hylsamex.com.mx Mr. Ismael De La Garza Phone: +(52) 81-8865-1224 E-mail: idelagarza@hylsamex.com.mx Mr. Kevin Kirkeby Phone: +(646) 284-9416 E-mail: kkirkeby@hfgcg.com INNOPHOS: Commitments Solid for Floating Rate Senior Notes ----------------------------------------------------------- Innophos Investments Holdings, Inc., the direct parent of Innophos, Inc., a manufacturer of specialty phosphates in North America, announced Monday that it has received commitments for a private offering of $120 million in aggregate principal amount of Floating Rate Senior Notes due 2015. Interest on the notes will be payable on or prior to February 15, 2010 in the form of additional notes and thereafter in cash. Offers and sales of the notes will be made only in the United States to qualified institutional buyers, as defined in Rule 144A under the Securities Act of 1933, as amended and outside the United States in compliance with Regulation S under the Securities Act of 1933 in transactions exempt from the registration requirements of the Securities Act of 1933, as amended. The notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and they may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This announcement does not constitute an offer to sell, or the solicitation of an offer to buy, any securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. About Innophos, Inc. Innophos, Inc. (www.innophos.com) is a leading North American manufacturer of specialty phosphates serving a diverse range of customers across multiple applications, geographies and channels. Innophos offers a broad suite of products used in a wide variety of food and beverage, consumer products, pharmaceutical and industrial applications. The Company's market-leading positions derive from its experience and dedication to customer service and innovation. Headquartered in Cranbury, New Jersey, Innophos has plant operations in Nashville, TN; Chicago Heights, IL; Waterway, IL; Geismar, LA; Port Maitland, ON (Canada); and Coatzacoalcos and Guanajuato (Mexico). INNOPHOS: S&P Cuts Ratings, Off Watch; Outlook Negative ------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Cranbury, N.J.-based Innophos Inc., and removed the ratings from CreditWatch where they were placed in November 2004. The corporate credit rating was lowered to 'B' from 'B+'. At the same time, Standard & Poor's assigned its 'CCC+' rating to $120 million of floating-rate senior notes due 2015 to be issued by Innophos Investments Holdings Inc., parent company of Innophos Inc. Proceeds from the debt offering will fund a cash dividend to the equity sponsors. The outlook is negative. The downgrade reflects the unexpected increase in the already aggressive debt load as a result of this transaction. "Clearly, this debt issuance is inconsistent with a commitment to improving the credit quality profile that had been factored into prior ratings and signals a change in financial policy," said Standard & Poor's credit analyst Wesley Chinn. "Credit quality is also under pressure from financial uncertainties arising from tax claims at a Mexican subsidiary." The ratings of Innophos, a specialty chemical manufacturer owned by Bain Capital, reflect a moderate sales base, a narrow product line in a niche, mature market, some vulnerability to raw material costs and to the cyclicality of general economic conditions, and very aggressive debt leverage. Moreover, exposure to potential demand reduction for phosphates in the U.S. detergent market remains a concern given environmental concerns at the state level, but the phase-out of phosphates for home laundry detergents sold in the U.S. is complete. Further demand reduction for the auto-dishwasher market in the U.S., or the onset of unforeseen environmental concerns in Mexico, both of which are key markets, will remain longer-range variables, although these issues are not expected to impact Innophos based on current information. These negatives overshadow the company's solid position in the production of specialty phosphates, stable volume growth, expected higher earnings for 2005, and good operating margins. Specialty phosphates are used in various food and beverage, consumer products, pharmaceutical, and industrial applications to improve the texture and taste of food, make cleaning easier in toothpaste, increase the effectiveness of active ingredients in tablets, and improve the cleaning characteristics of detergents. Innophos has leading shares in all three major product segments of the specialty phosphates industry: purified phosphoric acid (which is used in part in the downstream production of phosphate derivatives), specialty salts and acids, and technical grade sodium tri-polyphosphate. Specialty salts and acids account for well over half of Innophos' operating income. MAXCOM TELECOMUNICACIONES: To Cover Fixed Telephony Service Gap --------------------------------------------------------------- Telco outfit Maxcom Telecomunicaciones plans to invest some US$40 million this year to take advantage of what it sees is a gap in fixed telephony service, reports Business News Americas. "In Mexico there are around 20 million homes, of which 10 million have a line, and of the ten million remaining, between five and eight million represent the potential market for traditional fixed telephony," said Maxcom CEO Rene Sagastuy. Maxcom has been able to contemplate on these investments following a debt restructuring last year, which slashed its debt to US$53 million from US$180 million. Maxcom Telecomunicaciones, S.A. de C.V., headquartered in Mexico City, Mexico, is a facilities-based telecommunications provider using a "smart-build" approach to deliver last-mile connectivity to micro, small and medium-sized businesses and residential customers in the Mexican territory. Maxcom launched commercial operations in May 1999 and is currently offering local, long distance and data services in greater metropolitan Mexico City, Puebla and Queretaro. CONTACT: Maxcom Telecomunicaciones S.A. de C.V. Magdalena 211 Col. del Valle 03100 Mexico, D.F. Mexico Telephone: 52 55 5147 1111 MINERA AUTLAN: To Open New Sinter Plant in August ------------------------------------------------- Mexican manganese producer Compania Minera Autlan SA's (AUTLAN.MX) new sinter plant should be operational by mid August, says company president Jose Antonio Rivero in a report from Business News Americas. Sinter is a product used to make manganese-ferroalloy. The US$5 million plant, located at Tamos in Mexico's Veracruz state, will add 300,000 tons to the Company's sinter production capacity. The new plant can use coal or charcoal instead of natural gas. Minera Autlan ended the fourth quarter 2004 with revenues of MXP585 million and Net Sales of MXP1.75 billion, 79% higher in the same period last year. Ebitda during the period came at MXP188 million, a 698% increase on 4Q03. TV AZTECA: U.S. Federal Judge Grants Motion to Delay Trial ---------------------------------------------------------- A U.S. federal judge has delayed the start of a trial against Mexican broadcaster TV Azteca (NYSE: TZA) and its top management until May 31. District of Columbia Judge Emmet Sullivan's chambers granted the delay Monday, following a motion filed by TV Azteca parent, Azteca Holdings. TV Azteca and executives Ricardo Salinas Pliego, Pedro Padilla Longoria and Luis Echarte were charged by the U.S. Securities and Exchange Commission (SEC) for their role in a controversial debt deal involving sister mobile phone company Unefon. "Azteca Holdings' lawyers have discussed the matter with the SEC and both parties agree that in order to achieve better efficiency, save legal resources and coordinate the proceedings, an extension until May 31 is necessary," said TV Azteca legal counsel Thomas Sjoblom, of Chadbourne & Park, an international law firm with headquarters in Washington. Sjoblom spent 20 years working for the SEC. CONTACT: Investor Relations Mr. Bruno Rangel Phone: 5255 1720 9167 E-mail: jrangelk@tvazteca.com.mx Mr. Omar Avila Phone: 5255 1720 0041 E-mail: oavila@tvazteca.com.mx Media Relations: Mr. Tristan Canales Phone: 5255 1720 5786 E-mail: tcanales@tvazteca.com.mx Mr. Daniel McCosh Phone: 5255 1720 0059 E-mail: dmccosh@tvazteca.com.mx ============= U R U G U A Y ============= UTE: Three Firms Submit Bids for 400MW Thermo Project ----------------------------------------------------- Three firms submitted bids Friday for Uruguay's state-owned power company UTE's turnkey contract to build a 350-400MW combined cycle thermoelectric power plant in San Jose department, Business News Americas reports, citing UTE legal advisor Jose Alem. The bidders, namely French company Alstom, Fiat Engineering do Brasil and Germany's Siemens Westinghouse, were three of the four companies that originally bid for the contract in June last year. The fourth one was General Electric. At the time, UTE asked the companies to submit new bids because Alstom and Siemens did not comply with the mechanical requirements related to the turbines and the other two, Fiat and General Electric, failed to present complete documentation. It is not known why General Electric did not submit a bid this time around. But earlier, General Electric insisted it complied with the original bidding rules and said it wasn't fair that other bidders that did not comply with all the rules should have a chance to adjust their economic bids. UTE will begin to study the technical bids February 7 and will then study the economic bids, Alem said, adding that the contract should be awarded in about two months time. ================= V E N E Z U E L A ================= PDVSA: Workers Favor Cashcard In Lieu of Subsidized Food Stores --------------------------------------------------------------- State oil firm Petroleos de Venezuela SA (PDVSA) and its workers have overcome one of the last hurdles in a collective labor contract that took months of hard bargaining to settle. According to Business News Americas, workers have voted in favor of clause 14 of the labor contract, which calls for substituting subsidized food stores with a cashcard. The new cashcard guarantees 12 monthly payments of VEB500,000 (US$261). The money can be spent nationwide in more than 5,000 food establishments with electronic payment infrastructure, mainly supermarkets. Credit not spent in any given month is accumulated. All three national oil workers' federations that negotiated the contract with PDVSA management - Fedepetrol, Sinutrapetrol and Fetrahidrocarburos - took part in the vote. PDVSA's labor contract for the period 2005-2007 was signed two weeks ago, but with the caveat that a vote on clause 14 be held. Workers had threatened to boycott the signing of the agreement if a vote was not held. PDVSA: Harvest To Tackle Output Issues Soon ------------------------------------------- PDVSA and Houston-based oil and gas development company Harvest Natural Resources are yet to resolve issues over the latter's output and capital spending plans for this year. But according to a Dow Jones Newswires report, Harvest plans to discuss these issues with PDVSA "in the very near future." "If the situation can be resolved quickly, we anticipate we will be able to meet guidance," said Steven W. Tholen, chief financial officer at Harvest. "If it does take us some time to resolve the situation, we anticipate we'll have to revise our 2005 guidance." PdVSA sent Harvest a letter about a month ago, asking it to reduce oil production and capital expenditure program in 2005. But Tholen said Harvest still expects to produce 29,000 to 34,000 barrels of oil a day in 2005, significantly up from 20,000 b/d last year. Harvest is one of several overseas oil companies that have hit roadblocks in advancing drilling programs in Venezuela. US oil major ConocoPhillips (NYSE: COP) had also planned to start drilling 14 wells in the Corocoro oil field last December. However, the Venezuela energy ministry rejected ConocoPhillips' proposed 2005 investment plan, saying it was US$200 million below what had been previously agreed. Venezuela's energy and oil minister and PDVSA president, Rafael Ramirez, said PDVSA plans to meet with officials from ConocoPhillips on February 11 to discuss plans for their Corocoro oil field joint venture. "We have a meeting with representatives of ConocoPhillips on [February] 11 and are going to announce what we are going to agree to," Ramirez said. The Corocoro field was discovered by ConocoPhillips in 1999 and declared open for commercial use in 2002. *********** 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 * * *