/raid1/www/Hosts/bankrupt/TCRLA_Public/050317.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, March 17, 2005, Vol. 6, Issue 54
Headlines
A R G E N T I N A
ASOCIACION CIVIL: Initiates Bankruptcy Proceedings
AUTOMOTRIZ OLAVARRIA: Shifts Into Reorganization Mode
DE LA GUARDA: Court Approves Creditor's Bankruptcy Motion
INVERSIONES Y TRANSPORTES: Creditor's Bankruptcy Request Granted
JUAN MANUEL: Court Declares Company Bankrupt
MAVACO S.A.: Court Finds in Creditor's Favor
PROYECTOS Y TENDIDOS: Court Mandates Bankruptcy Proceeding
EDICIONES TENERIFEZ: Reports Submission Schedule Set
SEGURIDAD Y CUSTODIA: Court Orders Liquidation
SEVEN SEAS: Court Designates Trustee for Bankruptcy
SIDECO AMERICANA: Turns in Profit Following Debt-Restructuring
B E R M U D A
INTELSAT: Adjusts Consolidated Results for $1.7M Judgement
LORAL SPACE: Reports 2004 Financial Results
B R A Z I L
BANCO BRADESCO: Proposes Interest Payment on Own Capital
BRASKEM: Outlines Agenda for Upcoming Shareholder Meeting
BRASKEM: Proposes Revers Split to Increase Share Liquidity
ELETROPAULO: Clarifies Reports on Debt
PARMALAT: Board Appoints Enrico Bondi as CEO
C H I L E
MANQUEHUE NET: Cuts Reduces Losses by 50% in 2004
C O S T A R I C A
ICE: Warns of Power Rationing if Projects Not Implemented
M E X I C O
URI: S&P Says CreditWatch Negative Unchanged
URI: Delayed 10-K Filing Has No Effect on Current Ratings
VITRO: S&P Clarifies Issues' Structural Subordination, Ratings
P E R U
* PERU: Delays Presentation of Formal Proposal to Paris Club
- - - - - - - - - -
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A R G E N T I N A
=================
ASOCIACION CIVIL: Initiates Bankruptcy Proceedings
--------------------------------------------------
Court No. 10 of Buenos Aires' civil and commercial tribunal
declared Asociacion Civil Comision Deportiva de Concesionarios
Zanella (CO.DE.CO.ZA.) "Quiebra," reports Infobae.
Mr. Eduardo Daniel Gruden, who has been appointed as trustee,
will verify creditors' claims until May 2 and then prepare the
individual reports based on the results of the verification
process.
The individual reports will be submitted in court on June 14,
followed by the general report on August 10.
Clerk No. 10 assists the court on the case that will close with
the liquidation of the Company's assets to repay creditors.
CONTACT: Mr. Eduardo Daniel Gruden, Trustee
Avda Presidente Roque Saenz Pena 1219
Buenos Aires
AUTOMOTRIZ OLAVARRIA: Shifts Into Reorganization Mode
-----------------------------------------------------
Court No. 1 of Olavarria's civil and commercial tribunal issued
a resolution opening the reorganization of Automotriz Olavarria
S.A. The pronouncement authorizes the Company to begin drafting
a settlement proposal with its creditors in order to avoid a
straight liquidation. The reorganization further allows the
Company to retain control of its assets subject to certain
conditions imposed by Argentine law and the oversight of the
court appointed trustee.
Mr. Carlos Daniel Gandini will serve as trustee during the
course of the reorganization. He will be validating creditors'
proofs of claims until April 22. The results of the verification
will be presented in court as individual reports on June 6. The
trustee is also required to give a general report of the case on
August 2. The general report summarizes events relevant to the
reorganization and provides an audit of the Company's accounting
and business records.
CONTACT: Automotriz Olavarria S.A.
Avda. Colon 11.701/11
Olavarria
Mr. Carlos Daniel Gandini, Trustee
Fassina 3.157
Olavarria
DE LA GUARDA: Court Approves Creditor's Bankruptcy Motion
---------------------------------------------------------
Court No. 23 of Buenos Aires' civil and commercial tribunal
declared De la Guarda S.R.L. bankrupt, says La Nacion. The
ruling comes in approval of the bankruptcy petition filed by the
Company's creditor, Emsa S.A., for nonpayment of US$2,272.83 in
debt.
The Company's trustee, Mr. Luis Di Cesare, will examine and
authenticate creditors' claims until May 5. This is done to
determine the nature and amount of the Company's debts.
Creditors must have their claims authenticated by the trustee by
the said date in order to qualify for the payments that will be
made after the Company's assets are liquidated.
The city's Clerk No. 23 assists the court on the case that will
end with the sale of the Company's assets.
CONTACT: De la Guarda S.R.L.
Virrey Liniers 4511
Buenos Aires
Mr. Luis Di Cesare, Trustee
Sarmiento 2333
Buenos Aires
INVERSIONES Y TRANSPORTES: Creditor's Bankruptcy Request Granted
----------------------------------------------------------------
Inversiones y Transportes S.A. entered bankruptcy after Court
No. 20 of Buenos Aires' civil and commercial tribunal approved a
motion filed by Mr. Flavio Aparicio, reports La Nacion. The
Company's failure to pay US$18,831.93 in debt prompted the
creditor to file the petition.
Working with the city's Clerk No. 20, the court assigned Mr.
Juan Carlos 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 proofs of their claims to the trustee before
May 2.
The Company's assets will be liquidated at the end of the
bankruptcy process to repay creditors. Payments will be based on
the results of the claims verification process.
CONTACT: Inversiones y Transportes S.A.
Humboldt 170
Buenos Aires
Mr. Juan Carlos Herr, Trustee
Alicia Moreau de Justo 846
Buenos Aires
JUAN MANUEL: Court Declares Company Bankrupt
--------------------------------------------
Court No. 9 of Buenos Aires' civil and commercial tribunal
declared local company Juan Manuel Echeverz Harriet e Hijos S.A.
"Quiebra", relates local daily La Nacion. The court approved the
bankruptcy petition filed by the company's creditor, La Plata
Cereal S.A.
The Company will undergo bankruptcy proceedings with Mr. Emilio
Abraham as its court-appointed trustee. Creditors are required
to present proofs of their claims to the trustee for
verification before May 12. Creditors who fail to have their
claims authenticated by the said date will be disqualified from
the payments that will be made after the Company's assets are
liquidated at the end of the bankruptcy process.
Clerk No. 18 assists the court on the case.
CONTACT: Juan Manuel Echeverz Harriet e Hijos S.A.
Avenida Presidente Roque Saenz Pena 648
Buenos Aires
Mr. Emilio Abraham, Trustee
Talcahuano 768
Buenos Aires
MAVACO S.A.: Court Finds in Creditor's Favor
--------------------------------------------
Court No. 23 of Buenos Aires' civil and commercial tribunal
ordered the liquidation of Mavaco S.A. after the company
defaulted on its obligations, Infobae reveals.
The liquidation pronouncement will effectively place the
company's affairs, as well as its assets, under the control of a
court-appointed trustee. The court, however, has not provided
the name of the trustee assigned on this case.
Clerk No. 46 assists the court on this case that will close with
the disposal of the company's assets in favor of its creditors.
PROYECTOS Y TENDIDOS: Court Mandates Bankruptcy Proceeding
----------------------------------------------------------
Organizacion de Servicios Directos Empresarios (OSDE)
successfully sought for the bankruptcy of Proyectos y Tendidos
S.A. after Court No. 23 of Buenos Aires' civil and commercial
tribunal declared the Company "Quiebra," reports La Nacion.
As such, the construction company will now start the bankruptcy
process with Ms. Maria Tynik as trustee. Creditors of the
Company must submit their proofs of claim to the trustee before
May 5 for authentication. Failure to do so will mean a
disqualification from the payments that will be made after the
Company's assets are liquidated.
OSDE petitioned the court after the debtor failed to pay a
US$49,151.32 debt. Clerk No. 45 assists the court on the case.
CONTACT: Proyectos y Tendidos S.A.
Hipolito Yrigoyen 1144
Buenos Aires
Ms. Maria Tynik, Trustee
Avenida Rivadavia 10.444
Buenos Aires
EDICIONES TENERIFEZ: Reports Submission Schedule Set
----------------------------------------------------
Ms. Jessica Andrea Minc, the trustee assigned to supervise the
liquidation of Ediciones Tenerife S.A., will submit validated
individual claims for court approval on April 19. These reports
explain the basis for the accepted and rejected claims. The
trustee will also submit a general report of the case on July
14.
Infobae reports that Clerk No. 23 of Buenos Aires' civil and
commercial tribunal has jurisdiction over this bankruptcy case.
Clerk No. 45 assists the court with the proceedings.
CONTACT: Ms. Jessica Andrea Minc, Trustee
Avda Callao 420
Buenos Aires
SEGURIDAD Y CUSTODIA: Court Orders Liquidation
----------------------------------------------
Seguridad y Custodia S.A. prepares to wind-up its operations
following the liquidation pronouncement issued by Court No. 7 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 local accounting firm
"Estudio Dzierza, De Amaral y De Benedetto" as trustee. The firm
will be reviewing creditors' proofs of claims until May 3. The
verified claims will be the basis for the individual reports to
be presented for court approval on June 22. Afterwards, the
trustee will also submit a general report of the case on August
3.
Clerk No. 14 assists the court on this case that will end with
the sale of the company's assets. Proceeds from the sale will be
used to repay its liabilities.
CONTACT: "Estudio Dzierza, De Amaral y De Benedetto"
Trustee
Hipolito Irigoyen 1530
Buenos Aires
SEVEN SEAS: Court Designates Trustee for Bankruptcy
---------------------------------------------------
Buenos Aires accountant Ana Maria Lopez was assigned trustee for
the liquidation of local company Seven Seas S.A., relates
Infobae.
The trustee will verify creditors' claims until May 17, the
source adds. After that, he will prepare the individual reports
that are to be submitted in court on June 30. The general report
submission should follow on August 26.
The city's Court No. 22 holds jurisdiction over the Company's
case. Clerk No. 44 assists the court with the proceedings.
CONTACT: Ms. Ana Maria Lopez, Trustee
San Martin 662
Buenos Aires
SIDECO AMERICANA: Turns in Profit Following Debt-Restructuring
--------------------------------------------------------------
Argentine public services and infrastructure holding company has
returned to black in 2004 with a ARS263-million consolidated net
profit in 2004 as against a ARS286-million net loss the year
before.
Business News Americas reports that the company managed to
improve its results despite a 6.42% drop in net sales to ARS741
million. The company, in a filing to the country's securities
regulator (CNV), attributed positive results to its debt
restructuring.
Operating profit in 2004 stood at ARS64.6 million, compared to a
ARS14-million operating loss in 2003.
In the filing, Sideco said it intends to continue solidifying
its domestic and international operations particularly in Latin
America. The Company's interest in the region extends to
Argentina, Brazil and Chile.
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B E R M U D A
=============
INTELSAT: Adjusts Consolidated Results for $1.7M Judgement
----------------------------------------------------------
Intelsat, Ltd. (the "Company") was due to file Tuesday its
Annual Report on Form 20-F for the twelve months ended December
31, 2004 containing its audited consolidated financial results.
Subsequent to the issuance of its earnings release dated March
3, 2005, the Company updated its results to include the effect
of a $1.7 million judgment in favor of certain of its former
employees in respect of certain wrongful termination and related
claims. The Company intends to vigorously appeal the award.
Notwithstanding the Company's intent to appeal, the Company has
determined that, as a result of the possibility that it could be
liable for up to the full amount of the judgment, it is
reflecting a reserve of $1.7 million on its financial
statements. The Company is reissuing its Consolidated Statement
of Operations, Consolidated Balance Sheet and Consolidated
Statement of Cash Flows for the year and three months ended
December 31, 2004 to reflect a $1.7 million litigation reserve.
Updated consolidated financial statements are attached to this
press release and are also available in today's Form 20-F
filing.
The Company is reissuing, and has attached to this release, its
Consolidated Statement of Operations, Consolidated Balance Sheet
and Consolidated Statement of Cash Flows for the year and three
months ended December 31, 2004 to reflect the $1.7 million
reserve described above. The effect of this reserve for the year
and three months ended December 31, 2004 is to increase the
Company's selling, general and administrative expenses by $1.7
million which decreases the Company's income from continuing
operations from $7.0 million to $5.3 million for the year ended
December 31, 2004 and increases the Company's loss from
continuing operations from $49.0 million to $50.7 million for
the three months ended December 31, 2004. The reserve increases
the Company's net loss from $37.0 million to $38.7 million and
from $55.1 million to $56.9 million for the year and three
months ended December 31, 2004, respectively. Free cash flow
from operations of $320.5 million for the year ended December
31, 2004 was unchanged. EBITDA from continuing operations was
decreased from $621.9 to $620.1 million and from $95.2 million
to $93.5 million for the year and three months ended December
31, 2004, respectively, while Covenant EBITDA was unchanged at
$800.2 million for the year ended December 31, 2004. The results
included in this release are presented both in accordance with
United States generally accepted accounting principles and also
on a non-GAAP basis. All EBITDA from continuing operations,
Covenant EBITDA, and free cash flow from operations figures
noted above are non-GAAP financial measures. The financial
information attached to this release contains a reconciliation
of these non-GAAP financial measures to comparable GAAP
financial measures.
About Intelsat
Building on 40 Years of Leadership. As a global communications
leader with 40 years of experience, Intelsat helps service
providers, broadcasters, corporations and governments deliver
information and entertainment anywhere in the world, instantly,
securely and reliably. Intelsat's global reach and expanding
solutions portfolio enable customers to enhance their
communications networks, venture into new markets, and grow
their businesses with confidence. For more information, visit
www.intelsat.com.
To see financial statements:
http://bankrupt.com/misc/INTELSAT.htm
CONTACT: INTELSAT, LTD.
Investor Relations and Financial Media:
Noah Asher, 202-944-7328
LORAL SPACE: Reports 2004 Financial Results
-------------------------------------------
Loral Space & Communications (OTCBB: LRLSQ) yesterday filed its
annual report on Form 10-K with the Securities and Exchange
Commission in which it reported financial results for the fourth
quarter and year ended December 31, 2004.
The 10-K is available in PDF format on the company's web site at
www.loral.com or through the SEC's EDGAR service at www.sec.gov.
About Loral
Loral Space & Communications is a satellite communications
company. Its Space Systems/Loral division is a world-class
leader in the design and manufacture of satellites and satellite
systems for commercial and government applications including
direct-to-home television, broadband communications, wireless
telephony, weather monitoring and air traffic management.
Through its Loral Skynet division, it owns and operates a fleet
of telecommunications satellites used to broadcast video
entertainment programming, distribute broadband data, and
provide access to Internet services and other value-added
communications services.
CONTACT: Mr. John McCarthy
Loral Space & Communications
600 Third Ave.
New York, NY 10016
USA
Phone: 212/338-5345
Web site: http://www.loral.com
===========
B R A Z I L
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BANCO BRADESCO: Proposes Interest Payment on Own Capital
--------------------------------------------------------
Mr. Jose Luiz Acar Pedro, Executive Vice-President and Investor
Relations Director of Banco Bradesco S.A., informed the U.S.
Securities and Exchange Commission of the Company's intention to
pay interest on own capital for the month of April 2005. The
letter, dated March 15, 2005, follows:
March 15, 2005
Securities and Exchange Commission
Office of International Corporate Finance
Division of Corporate Finance
Washington, DC
Ref.: Payment of Monthly Interest on Own Capital Banco Bradesco
S.A.
Dear Sirs,
The Board of Executive Officers of this Bank, in a meeting held
as of today, decided to propose to the Board of Directors, in a
meeting to be held on April 1st, 2005, the payment to the
Company's stockholders, pursuant to the Corporate By-Laws and
legal provisions, of interest on own capital related to the
month of April/2005, in the amount of R$0.057000 per common
stock and R$0.062700 per preferred stock, benefiting the
stockholders registered in the Company's records on that date
(April 1st, 2005).
Upon approval of the proposal, the payment will be made on May
2nd, 2005, at the net amount of R$0.048450 per common stock and
R$0.053295 per preferred stock, after deduction of Withholding
Income Tax of fifteen percent (15%), except for the legal entity
stockholders that are exempt from such taxation, which will
receive for the declared amount.
The respective Interests will be computed, net of Withholding
Income Tax, in the calculation of the mandatory dividends for
the year as provided in the Corporate By-Laws.
The Interests relating to the stocks under custody at CBLC -
Brazilian Company and Depository Corporation will be paid to
CBLC which will be transferred to the stockholders through the
depository Brokers.
Note: The stocks subscribed in the capital increase disclosed in
the Annual Stockholders' Meeting held on 12.9.2004 and ratified
on 3.10.2005, will be entitled to Monthly Dividends and/or
Interests on Own Capital to be declared by the Board of
Directors as from the date the respective process is approved by
the Central Bank of Brazil.
Cordially,
Banco Bradesco S.A.
Jose Luiz Acar Pedro
Executive Vice President and
Investor Relations Director
CONTACT: Banco Bradesco S.A.
Predio Novo - 4 ANDAR
Cidade de Deus
S/N, Osasco
Sao Paulo, 06029-900
Brazil
Phone: 55-11-3684-9229
Web site: http://www.bradesco.com.br
BRASKEM: Outlines Agenda for Upcoming Shareholder Meeting
---------------------------------------------------------
The shareholders of BRASKEM S.A. are invited to attend the
Ordinary and Extraordinary Shareholders Meetings which are to be
held concurrently on March 31, 2005, 10:30 a.m., at the
Company's headquarter at Rua Eteno, no. 1561, at the
Petrochemical Pole, in the Municipality of Camacari, in the
State of Bahia, in order to deliberate about the following
Agenda:
ANNUAL SHAREHOLDERS MEETING
01) To examine, discuss and vote the Management Report and the
respective rendering of accounts by the Managers, as well as the
Financial Statements containing Explanatory Notes regarding the
fiscal year that ended on December 31, 2004;
02) Approval of the Capital Expenditure Budget justifying the
proposal for the destination for the results attained by the
Company;
03) Approval regarding the destination of the results of the
fiscal year ending on December 31, 2004;
04) Election of the members of the Fiscal Council;
EXTRAORDINARY SHAREHOLDERS MEETING
01) Election of the members of the Board of Directors as arising
from the resignations presented;
02) The determination of the overall annual compensation to be
paid to the administrators;
03) The approval and the ratification of the appointment and the
hiring by the management of the Company of the specialized
company that shall be responsible for the elaboration of the
evaluation report regarding Odebrecht Química S.A. ("Odequi");
04) To examine, to discuss and to approve the documents
regarding the merger operation of Odequi into the Company;
05) The approval of the merger of Odequi into the Company
without a capital increase;
06) To approve the reverse stock split of the shares of the
company at the rate of 250 shares of each category and class
into 1 share of each category and class, and to deliberate about
the manner to deal with the fractions of the shares that will
result from the reverse split operation;
07) To approve the change to be made to article 4 and its first
paragraph of the Company's by-laws to express the change of the
number of shares resulting from the reverse stock split;
08) To approve the stock split operation of the American
Depositary Shares ("ADSs") of the Company at the rate of 2 ADSs
for each existing ADS.
Attention: Taking into account the Health, Safety and
Environmental Rules (SSMA) in effect at the headquarters of the
Company, which have established the necessary directives to
control the access and the circulation of individuals and
vehicles in the internal and outside headquarter areas, all the
shareholders, as well as their legal representatives are
requested to be present for the aforementioned Meetings at least
30 minutes before hand, with the intent to insure compliance
with the basic training instructions pertaining to SSMA, in
effect at the Company, and which may be consulted on the site
www.braskem.com.br
CONTACT: Braskem S.A.
Av. Nacoes Unidas
4777 Cep
San Paulo, 05477-000
Brazil
Phone: 55-11-3443-9999
Website: http://www.braskem.com.br
BRASKEM: Proposes Revers Split to Increase Share Liquidity
----------------------------------------------------------
Braskem S.A. (NYSE:BAK; BOVESPA:BRKM5) (LATIBEX:XBRK), leader in
the thermoplastic resins segment in Latin America and one of the
three largest Brazilian privately-owned industrial companies, in
accordance with its long term strategic commitment to the
domestic and international capital markets, announced Tuesday
that its Board of Directors, in a meeting held on March 14,
2005, resolved to submit to the Extraordinary General
Shareholders' Meeting to be held on March 31, 2005, a proposal
to effect a reverse stock split in respect of its outstanding
share capital, together with a split of its American Depositary
Shares ("ADSs") traded on the New York Stock Exchange ("NYSE"),
as follows:
1. Objective
In accordance with the recommendations and guidelines of the Sao
Paulo Stock Exchange ("Bovespa"), the reverse stock split of
Braskem's share capital is intended to facilitate the trading of
Braskem's shares on the Bovespa, resulting in increased
liquidity through:
(i) a reduction in the number of shares that are quoted as a
round lot on the Bovespa, from the current round lot of 1,000
shares to a round lot of one share,
(ii) an adjustment in Braskem's share price to a more accessible
level, enabling a larger number of investors, particularly
individual investors, to purchase Braskem's shares, and
(iii) a reduction in the minimum number of Braskem's shares for
trading on the Bovespa from 100,000 to 100 shares, thus lowering
the minimum investment required to purchase shares of Braskem.
2. Proportion of the Reverse Stock Split
Braskem will effect a reverse split of its share capital in the
proportion of 250 (two hundred and fifty) shares of each type
and class to 01 (one) share.
3. Split of the ADSs
In order to align the trading price of the ADSs representing
Braskem's class A preferred shares on the NYSE with the average
trading price of ADSs of other Brazilian issuers, Braskem's ADSs
will be split, in the proportion of 02 (two) ADSs for each ADS
outstanding. Following the reverse stock split in Brazil and the
split of the ADSs, each ADS (which currently represents 1,000
(one thousand) class A preferred shares), will represent 02
(two) class A preferred shares, thus attaining the established
objectives.
4. Position Adjustment
If this proposal is approved by Braskem's shareholders in the
Extraordinary General Meeting, Braskem will publish a Notice to
its Shareholders establishing a period of 30 (thirty) days from
the date of publication for shareholders, in their discretion,
to adjust their respective shareholding positions through
private sale or trading on the Bovespa, to lots of multiples of
250 (two hundred and fifty) shares, by each type and class, so
that they will not hold any fractional shares after consummation
of the reverse stock split.
5. Auction and Complementary Information
After the 30 (thirty) day adjustment period has expired, any
fractional shares resulting from the reverse stock split will be
separated and consolidated into whole shares to be sold on the
Bovespa. The proceeds of the sales of these shares will be
deposited on a pro rata basis in the accounts of the holders of
any fractional shares.
Braskem's shares will begin to be sold taking into account the
reverse stock split following the seventh business day after the
expiration of the 30-day adjustment period referred to above.
Documents related to the proposal of the Board of Directors
described in this release will be available at Braskem's
headquarters, as well as on the websites of the Bovespa and of
the Brazilian Securities Commission (Comissao de Valores
Mobiliarios).
CONTACT: Braskem S.A.
Investor Relations:
Mr. Jose Marcos Treiger
Phone: (+55 11) 3443 9529
E-mail: jm.treiger@braskem.com.br
or
Mr. Luiz Henrique Valverde
Phone: (+55 11) 3443 9744
E-mail: luiz.valverde@braskem.com.br
or
Mr. Vasco Barcellos
Phone: (+55 11) 3443 9178
E-mail: vasco.barcellos@braskem.com.br
ELETROPAULO: Clarifies Reports on Debt
--------------------------------------
Pursuant to the terms of CVM Instruction no. 358 of January 3,
2002, Eletropaulo Metropolitana Eletricidade de Sao Paulo
S.A.(the "Company") hereby announces the following to the
market:
Considering the article published in O Estado de Sao Paulo on
March 14, 2005, under the headline "Three Electricity Utilities
Owe R$ 18 billion", AES Eletropaulo should like to provide the
following clarifications to the market.
As mentioned in the Material Fact published on March 12, 2004,
the Company has successfully completed a debt restructuring
program with private creditors, as required due to revenue
losses dating from the period of energy rationing, namely from
June 2001 through February 2002.
All the objectives originally proposed and presented to the
creditors have been achieved, including:
(i) the extension of amortization periods for rescheduled debts
in the amount of R$ 2.3 billion;
(ii) the alignment of repayment periods with the Company's cash
flow generation;
(iii) a significant reduction in foreign currency exposure; (iv)
improvement of credit ratings with Fitch and Standard & Poors,
from DDD to BB and from SD to BB+, respectively, both on the
local scale; and
(v) opening of new credit lines for the Company.
With regard to the Company's application for financing with the
Brazilian Social and Economic Development Bank (BNDES), we
should like to clarify that it is contemplated under the
Financing Program for Electricity Distribution Companies,
created by BNDES in conjunction with the Ministry of Mines &
Energy for the purpose of capitalizing electricity distribution
service concessionaires, thus enabling them to adjust their
economic and financial profile, and to reschedule their short-
term debts with creditor banks. In the case of AES Eletropaulo,
this debt rescheduling program was completed on March 12, 2004.
Today, the Company has a consolidated debt of R$ 5,284 million.
This amount includes R$ 1,102 million to finance deferred
assets, counterbalanced with an associated revenue, plus R$
1,778 million to cover pension fund liabilities already in
existence prior to the Company's privatization. AES Eletropaulo
showed the following debt profile as at December 31, 2004:
Consolidated Debt - R$ million 5.284 100,0%
Total short-term 1.287 22,8%
Total long-term 4.077 77,2%
Total local currency 4.384 83,0%
Total foreign currency 900 17,0%
Total foreign currency
hedged with swap operations 100%
Financial leverage ratio 3,0x
Interest Coverage ratio 1,6x
Finally, we should also like to clarify that the debt
rescheduling agreement signed with BNDES and mentioned in the
said news article refers not to the concessionaire's debts but
to those of its controlling shareholders. This agreement
resulted from the incorporation of Brasiliana Energia S.A., a
company controlled by AES and BNDES, and the issuer of
debentures in the amount of US$ 510 million. Brasiliana Energia
S.A. has strictly complied with the repayment schedule agreed to
in 2003. The first debt service payment occurred in December
2004 and the next should be made in December 2005. The principal
is to be repaid in installments as of December 2007.
CONTACT: Eletropaulo Metropolitana Eletricidade de Sao Paulo S/A
Investor Relations Manager
Ms. Clarice Silva Assis
E-mail: clarice.assis@aes.com
Phone:(55 11) 2195-2229
Fax:(55 11) 2195-2503
PARMALAT: Board Appoints Enrico Bondi as CEO
--------------------------------------------
A meeting of the Board of Directors and a Shareholder Meeting of
Parmalat S.p.A. was held Tuesday under the Chairmanship of
Professor Raffaele Picella. During the meeting, the Board of
Directors appointed Dr. Enrico Bondi as Chief Executive Officer
of the Company.
The Shareholder meeting of the Company, in the context of the
listing process, having received a favorable opinion from the
Board of Statutory Auditors, appointed PricewaterhouseCoopers as
auditors of the Company's financial statements for the financial
years 2005, 2006 and 2007 in accordance with section 159 of
Legislative Decree no. 58 of 24 February 1998. The Shareholder
Meeting also incorporated recommendations from Borsa Italiana
S.p.A. relating to the independence of Board Members, with the
following integration of Article 12 of the Company's Bylaws.
Following the decision of the Shareholder Meeting, and further
to the existing Bylaws of the Company, Board Members are
considered to be independent when: they have no legal disputes
with Parmalat S.p.A. or with its subsidiary companies; they are
not Board Members, Employees or controlling Shareholders of a
company with which Parmalat S.p.A. is in legal dispute and in
any case do not hold - and/or are not Board Members or Employees
of a Company which holds - directly and/or indirectly a
participation in the share capital of Parmalat S.p.A. of an
amount equal to or more than 2%.
CONTACT: Administrative Offices
20122 Milan - Piazza Erculea 9
Phone: +39-02-8068801
Fax: +39-02.8693863
=========
C H I L E
=========
MANQUEHUE NET: Cuts Reduces Losses by 50% in 2004
-------------------------------------------------
Chilean telephony and broadband provider Manquehue Net reported
a net loss of CLP3.17 billion (US$5.42mn) in 2004, cutting by
half the previous year's net loss of CLP6.17 billion, according
to Business News Americas.
For the first time, the company recorded an operating profit,
registering CLP1.31 billion, compared to an operating loss of
COP286 million in 2003 following a reduction in operating
expenses and administrative costs.
CEO Jorge Troncoso has said earlier that the company is poised
to become profitable this year.
The company said its gross revenues for 2004 were CLP29.3
billion, compared to CLP30.7 billion in 2003. Ebitda was up
13.3% at CLP13.0 billion compared to 2003.
The company attributed the improvement to its commercial,
financial and operating strategies.
===================
C O S T A R I C A
===================
ICE: Warns of Power Rationing if Projects Not Implemented
---------------------------------------------------------
State power company ICE has warned that the absence of new
generation projects could mean power rationing from 2007 for
Costa Rica, reports Business News Americas.
"We cannot guarantee electricity supply for the summer of 2007.
Power will likely be rationed," newspaper Al Dia quoted ICE's
deputy manager Carlos Obregon as saying.
Mr. Obregon's comments came after it failed to implement the
190MW diesel-fired Garabito combined cycle project in Puntarenas
province and the 157MW Pacuare hydroelectric project in the
province of Cartago.
Last October, ICE halted the contract to build the US$160-
million Garabito project due to legal controversies involving
Abener Energia, the company that was to develop the project.
Recently, the country's environmental regulator, Setena,
rejected an environmental impact study (EIS) for the
construction of Pacuare.
The company has not yet decided if it will revise the Pacuare
project or scrap the project altogether, Mr. Obregon said.
===========
M E X I C O
===========
URI: S&P Says CreditWatch Negative Unchanged
--------------------------------------------
Standard & Poor's Ratings Services said Tuesday that its ratings
on United Rentals (North America) Inc. (URI) including the 'BB'
corporate credit rating, remained on CreditWatch with negative
implications. The ratings were originally placed on CreditWatch
on Aug. 30, 2004.
"The ratings remain on CreditWatch because of the Greenwich,
Conn.-based company's ongoing delay in making its 2004 results
final and filing its Report on Form 10-K to allow additional
time for review of matters relating to the ongoing investigation
by the SEC," said Standard & Poor's credit analyst John Sico.
"The delay will require the company to seek a waiver from its
senior lenders under its credit facility, which it expects to
receive by the end of March."
The company is asking for a 90-day extension of this filing
requirement with the banks until June 29, 2005. In addition, its
bond indentures require the timely filing of reports, and a
delay in filing could lead to an event of default if the company
receives a notice of default from the trustees or 25% of
holders.
Separately, the company has stated that as a result of its
ongoing testing of internal controls as required by the
Sarbanes-Oxley Act, it will restate its provision for income
taxes for the 1999-2003 period and that this will result in a
decrease in tax provision of about $25 million over the period.
This does not have any cash implication. Further, the company
disclosed the presence of other control weaknesses.
The company said that it is continuing to cooperate with the SEC
regarding the non-public, fact-finding inquiry into the company,
which has been indicated to relate to a broad range of
accounting practices and no specific time period. The company
has not given any specific reason for the investigation,
although the original notice was accompanied by a subpoena for
certain of the company's accounting records.
The lack of specific information to date and the possibly broad
parameters of the investigation, however, remain a cause of
concern and the reason for the CreditWatch. Standard & Poor's
will continue to review events as further information becomes
available and could lower the ratings if events unfold that have
a material effect on credit quality or are detrimental to the
company's liquidity, including failure to maintain access to the
bank facility.
URI offers a broad range of construction and industrial
equipment through a network of 730 locations in the U.S.,
Canada, and Mexico with sales of about $3 billion in 2004 and
total debt outstanding of about $3 billion.
URI: Delayed 10-K Filing Has No Effect on Current Ratings
---------------------------------------------------------
United Rentals, Inc. (URI) announced Monday that the company
will delay finalizing its 2004 results and filing its Report on
Form 10-K to allow additional time to review matters relating to
the previously announced Securities and Exchange Commission
(SEC) fact-finding inquiry. The company believes this delay will
extend beyond the Form 10-K due date, including the 15-day
extension period. This delay will also give the company time to
complete work on the income tax restatement, and its evaluation
and testing of internal controls and other items. As part of
this process, URI will need to secure waivers from its lenders,
a process that Fitch believes the company will be successful in
achieving at little or no cost.
Fitch believes that the delay in URI's 10-K filing will have no
impact on the company's current ratings, which are:
United Rentals, Inc.
--Subordinated debt 'B'.
United Rentals, Inc. (North America)
(Guaranteed by United Rentals, Inc.)
--Senior secured debt 'BB';
--Senior unsecured debt 'BB-';
--Subordinated debt 'B'.
During its earnings conference call on March 14, 2005,
management provided additional information regarding URI's 2004
results and guidance for 2005. Specific highlights include
record total revenues of $3.1 billion, cash flow from operations
of $761 million, and free cash flow of $385 million.
Additionally, rental rates increased by 7.5% in 2004, the first
annual increase for several years. Fitch also notes that URI's
unrestricted cash balance increased significantly to $302
million at Dec. 31, 2004, up from $79 million at Dec. 31, 2003.
In Fitch's view, the increase in cash, although not necessarily
related to the SEC inquiry, provides management with additional
financial flexibility in the event of an adverse decision.
For 2005, URI's gross revenues are projected to increase to $3.4
billion, driven in part by a 5% increase in rental rates and the
addition of 30 to 35 new rental locations along with a 25%
increase in contractor supplies revenue. Fitch believes that
company's revenue projection is realizable given the existing
momentum in its business and domestic economy.
CONTACT: Philip S. Walker, Jr., CFA +1-212-908-0624
Edward Soffer +1-212-908-0642, New York
MEDIA RELATIONS: Kenneth Reed +1-212-908-0540, New York
VITRO: S&P Clarifies Issues' Structural Subordination, Ratings
--------------------------------------------------------------
Rationale
The 'CCC+' rating on Servicios y Operaciones Financieras Vitro
S.A. de C.V.'s notes due 2007 (which are guaranteed by Vitro
S.A. de C.V. (Vitro)) reflects the structural subordination of
the issues relative to Vitro's priority liabilities,
particularly operating company debt. Under Standard & Poor's
Ratings Services' corporate ratings criteria, when priority debt
and other liabilities amount to 30% of the assets, lower-
priority debt is substantially disadvantaged and is therefore
differentiated by two notches.
The ratings on Vitro reflect the company's high financial
leverage, its weak free operating cash flow generation, and the
challenging operating environment faced by its operating units
across the board. The ratings also reflect the company's leading
position in flat glass, glass containers, and glassware business
in Mexico and its export activities and international operations
(particularly in the U.S.), which contribute about 50% of total
revenues.
Monterrey, Mexico-based Vitro, through its subsidiary companies,
is Mexico's leading glass producer. Vitro is a major participant
in three principal businesses: flat glass, glass containers, and
glassware. Vitro also produces raw materials and equipment and
capital goods for industrial use.
Vitro's high leverage is reflected in its key financial
indicators. For the 12 months ended Dec. 31, 2004, Vitro posted
EBITDA interest coverage, total debt/EBITDA, and FFO/total debt
ratios of 1.8x, 4.4x, and 9.7%, respectively, which compare
unfavorably to the 2.0x, 4.2x, and 13% posted in 2003.
Furthermore, the company's free operating cash flow generation
is considered weak, as evidenced by the FOCF/sales ratio of 2%
and FOCF/total debt ratio of 3% posted in 2004. The operating
environment for Vitro's operations is challenging across the
board, and it reflects increased competition in the domestic
market and the continued strength in natural gas prices. In
2005, the spotlight will be on the glass containers business, as
it is expected to drive the company's revenue and EBITDA
generation. It appears that prospects for the unit are favorable
due to the acceptance of price increases by key customers.
Nevertheless, the company's performance has been disappointing
in recent years, and 2005 could see another decline in the
issuer's EBITDA margin.
Liquidity
The company's prefinancing cash flow generation is weak (less
than $50 million is expected in 2005) and compares unfavorably
to debt maturities (ex-trade facilities) that totaled $216
million as of Dec. 31, 2004. Nevertheless, Standard & Poor's
believes that Vitro's liquidity is sufficient to meet its 2005
maturities. As of Dec. 31, 2004, the issuer held about $234
million in unrestricted cash, which should be sufficient to meet
holding company obligations of about $100 million that are due
in 2005. Vitro's financing plan for 2005 will focus on the
refinancing of debt maturities that total $115 million during
the year, particularly $80 million due at its flat glass
subsidiary (Vitro Plan S.A. de C.V.) The company has
demonstrated good access to the capital markets, as evidenced by
the recent issue of $80 million notes through Vena.
Outlook
The stable outlook reflects Standard & Poor's opinion that
Vitro's liquidity is adequate to meet its debt maturities due in
2005. The ratings could be lowered if the company's key
financial indicators fail to improve during the year, as it is
expected that excess cash balances will be directed toward debt
reduction as maturities come due. In particular, Standard &
Poor's expects Vitro's EBITDA interest coverage and its total
debt/EBITDA ratio to move toward 2.0x and 4.0x respectively
during the year. A positive rating action would demand a
substantial improvement in Vitro's operating and financial
performance relative to Standard & Poor's expectations.
Primary Credit Analyst: Jose Coballasi, Mexico City (52)55-5081-
4414; jose_coballasi@standardandpoors.com
Secondary Credit Analyst: Federico Mora, Mexico City (52) 55-
5081-4436; federico_mora@standardandpoors.com
=======
P E R U
=======
* PERU: Delays Presentation of Formal Proposal to Paris Club
------------------------------------------------------------
Peru is not going ahead with its schedule to make a formal debt
proposal to the Paris Club in the middle of the month, Dow Jones
Newswires reports, citing a government official.
"We are refining the proposal. It isn't ready and we decided to
wait a bit," Deputy Finance Minister Luis Carranza said Monday,
adding that it could possibly take place in April.
Carranza had said earlier that the government expects to present
a formal proposal in mid-March to restructure up to US$1.5
billion in outstanding debt with the Paris Club of nations.
As of December, Peru's debt with the Paris Club totaled US$8.51
billion. Officials have said Peru hopes to buy back Paris Club
debt at a discount and refinance that with longer-term market
debt. It had hopes that some of the nations holding the debt
will agree to the discount in order to obtain liquidity.
If the proposal gets rejected, Peru will continue with other
avenues in its overall debt restructuring process, Carranza
said.
Renegotiating Paris Club debt is part of the finance ministry's
overall plan to restructure government debt.
***********
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
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