/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/050401.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, April 1, 2005, Vol. 6, Issue 64 Headlines A R G E N T I N A ARGENTINA BANKS: S&P To Upgrade Ratings After Debt Restructuring ASOCIACION FRUTICULTORES: Bankruptcy Reverts to Reorganization CUSTOMWARE S.R.L.: Liquidates Assets to Pay Debts DELTAGRAF S.A.: Court Rules for Liquidation EDICIAL S.A.: Reorganization Process Starts ESTRUCTURAS Y SERVICIOS: Court Authorizes Plan INVERSIONES Y TRANSPORTE: Enters Bankruptcy on Court Orders IRSA: Noteholder Exercises Conversion Right MAVACO S.A.: Begins Liquidation Proceedings NOW FAST S.R.L.: Liquidates Assets to Pay Debts TEC-SIN S.R.L.: Enters Bankruptcy on Court Orders TEDAR S.A.: Gets Court Ok for Reorganization TELEFONICA DE ARGENTINA/TELEFONICA HOLDING: S&P Upgrades Ratings TGS: S&P Raises Ratings To 'B-' TGS: S&P Raises IADB Bond Ratings B E R M U D A FLEMING INTERNATIONAL: Names Robin Mayor as Trustee INTER-ATLANTIC MANAGERS: Member Resolves to Liquidate Assets LORAL SPACE: Posts Updates on Reorganization LORAL SPACE: NY Court Stays Consolidated Securities Fraud Suit LORAL SPACE: Asks NY Court To Dismiss Consolidated ERISA Lawsuit NORTHBRIDGE FUND: Nicholas Hoskins to Serve as Liquidator B R A Z I L AES CORPORATION: Reports Changes in 2004 Results AES CORPORATION: Sets Annual Stockholders Meeting on April 28 AES CORPORATION: EVP Joseph Brandt Steps Down ALPARGATAS: 11.9% Stake Sold for $2.7M CEMIG: Approves Internal Staff Reassignment Between Units PARMALAT: Reports EUR568.7Mln Revenues in 2004 TELEMAR: Reveals $111M Budget for Telephone Installation UNIBANCO: To Discuss Payment of Interest on Capital Stock C H I L E COEUR D'ALENE: Books $4.7M Non-Cash Adjustment for 2004 C O S T A R I C A ICE: May Issue Bonds on Foreign Markets to Finance Hydro Project ICE: Sells 3,000 Reclaimed Mobile Lines D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: To Restructure $1B Debt M E X I C O MINERA AUTLAN: Invests $15M to Carry Out Energy Saving Measures V E N E Z U E L A PDVSA: Chavez Says Citgo Sale Still On PDVSA: Russian Firm Wants to Acquire Stake in German Refiner - - - - - - - - ================= A R G E N T I N A ================= ARGENTINA BANKS: S&P To Upgrade Ratings After Debt Restructuring ---------------------------------------------------------------- Three Argentine banks are awaiting their national scale ratings upgraded by Standard & Poor's Rating Services after the government completes its US$103 billion sovereign debt restructuring, says Dow Jones Newswires. In a press release issued Tuesday, S&P said it plans to upgrade BBVA Banco Frances (BFR) from "raBBB" to "raA+," and Banco Hipotecario and Banco de Galicia y Buenos Aires from "raBBB-"to "raA." The "raA" national scale rating signifies that the institution has a "strong" capacity to meet its financial obligations, when compared with its Argentine peers. "The banks' ratings continue to be conditioned by their high direct exposure to the Argentine government, and in Standard & Poor's opinion, they are seen benefitted by an improvement in the sovereign credit quality, achieved after the restructuring of the public debt," said S&P. Argentina secured 76% creditor acceptance for its debt workout and is scheduled to issue its new bonds under the restructuring on Friday. However, that settlement could be delayed because of a U.S. court ruling, handed down late Tuesday, that maintains a freeze on US$7 billion in defaulted bonds due to be exchanged Friday. A delayed settlement could also put off S&P's ratings upgrades. ASOCIACION FRUTICULTORES: Bankruptcy Reverts to Reorganization -------------------------------------------------------------- Asociacion de Fruticultores Autentico S.R.L. (en Liquidacion) will proceed with reorganization after a Rio Negro Court converted the Company's ongoing bankruptcy case into a "concurso preventivo", states Infobae. Under Insolvency protection, the Company will be able to draft a proposal designed to settle its debts with creditors. The reorganization also prevents an outright liquidation. Mr. Juan Jose Accastello, the court-appointed trustee, closed the verification of creditors' proofs of claims on March 11. Creditors with unverified claims cannot participate in the Company's settlement plan. The trustee will also submit individual reports on April 27 and a general report on June 9. CONTACT: Asociacion de Fruticultores Autentico S.R.L. (en Liquidacion) Avda Gral Paz 246 Cinco Saltos (Rio Negro) Mr. Juan Jose Accastello, Trustee Italia 235 Cipolletti (Rio Negro) CUSTOMWARE S.R.L.: Liquidates Assets to Pay Debts ------------------------------------------------- Buenos Aires-based Customware S.R.L. will begin liquidating its assets following the bankruptcy pronouncement issued by Court No. 2 of the city's civil and commercial tribunal, reports Infobae. The ruling places the Company under the supervision of court- appointed trustee Isabel A. Ramirez. Ms. Ramirez will verify creditors' proofs of claims until May 13. The validated claims will be presented in court as individual reports on June 28. The trustee will also submit a general report, containing a summary of the Company's financial status as well as relevant events pertaining to the bankruptcy, on August 24. The bankruptcy process will end with the sale of the Company's assets. Proceeds from the sale will be used to repay the Company's debts. CONTACT: Ms. Isabel A Ramirez, Trustee Tte Gral Juan Domingo Peron 2082 Buenos Aires DELTAGRAF S.A.: Court Rules for Liquidation ------------------------------------------- Court No. 9 of Buenos Aires' civil and commercial tribunal ordered the liquidation of Deltagraf S.A. after the Company defaulted on its debt obligations, Infobae reveals. The liquidation pronouncement will effectively place the Company's affairs as well as its assets under the control of Ms. Elisa Esther Tomattis, the court-appointed trustee. Ms. Tomattis will verify creditors' proofs of claims until June 27. The verified claims will serve as basis for the individual reports to be submitted in court on September 1. The submission of the general report follows on October 20. The city's Clerk No. 17 assists the court on this case. CONTACT: Ms. Elisa Esther Tomattis, Trustee Rodriguez Pena 110 Buenos Aires EDICIAL S.A.: Reorganization Process Starts ------------------------------------------- Court No. 2 of the civil and commercial tribunal for the Argentine province of Andalgala (Catamarca) approved a petition for reorganization filed by local Company Edicial S.A., reports Infobae. Accountants Silvia Luz Moreta, Juan Marcelo Rivas and Maria Laura de Kesseru will serve as co-trustees on this case. The trustees' duties include the verification of credit claims and preparation of the individual and general report. CONTACT: Edicial S.A. Callao 575 Buenos Aires Co-Trustees: Ms. Silvia Luz Moreta Avda Ocampo 2768 Catamarca Mr. Juan Marcelo Rivas Chacabuco 1901 Catamarca Ms. Maria Laura de Kesseru Almagro 275 San Fernando del Valle de Catamarca ESTRUCTURAS Y SERVICIOS: Court Authorizes Plan ---------------------------------------------- Buenos Aires-based Company Estructuras y Servicios S.A. concluded its reorganization process, according to data released by Infobae on its Web site. The conclusion came after the city's civil and commercial Court No. 1, with assistance from Clerk No. 2, homologated the debt plan signed between the Company and its creditors. INVERSIONES Y TRANSPORTE: Enters Bankruptcy on Court Orders ----------------------------------------------------------- Court No. 20 of Buenos Aires' civil and commercial tribunal declared Inversiones y Transporte S.A. bankrupt after the Company defaulted on its debt payments. The order effectively places the Company's affairs as well as its assets under the control of court-appointed trustee Juan Carlos Herr. As trustee, Mr. Herr is tasked with verifying the authenticity of claims presented by the Company's creditors. The verification phase is ongoing until May 2. Following claims verification, the trustee will submit the individual reports based on the forwarded claims for final approval by the court on June 13. A general report will also be submitted on August 1. Infobae reports that Clerk No. 39 assists the court in resolving this case. CONTACT: Mr. Juan Carlos Herr, Trustee Alicia Moreau de Justo 846 Buenos Aires IRSA: Noteholder Exercises Conversion Right ------------------------------------------- By letter dated March 29, 2005, the Company reported that a holder of its Convertible Notes exercised conversion rights. Hence, the financial indebtedness of the Company shall be reduced in US$ 20,000 and an increase of 36,697 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 302,549,829 to 302,586,526. On the other hand, the amount of registered Convertible Notes is US$ 63,791,254. CONTACT: IRSA Inversiones y Representaciones S.A. 1066 Bolivar 108 Buenos Aires, Argentina Phone: 541-342-7555 MAVACO S.A.: Begins Liquidation Proceedings ------------------------------------------- Mavaco S.A. will begin liquidating its assets after Court No. 23 of Buenos Aires' civil and commercial tribunal declared the company bankrupt. Infobae reveals that the bankruptcy process will commence under the supervision of court-appointed trustee Jacobo Beker. The trustee will review claims forwarded by the Company's creditors until May 12. After claims verification, the trustee will submit the individual reports for court approval on June 27. The general report submission will follow on August 23. Clerk No. 46 assists the court on this case. CONTACT: Mr. Jacobo Beker, Trustee Jeronimo Salguero 2244 Buenos Aires NOW FAST S.R.L.: Liquidates Assets to Pay Debts ----------------------------------------------- Now Fast S.R.L. will begin liquidating its assets following the pronouncement of Buenos Aires' civil and commercial Court No. 7 that the Company is bankrupt, Infobae reports. The ruling places the Company under the supervision of court- appointed trustee Jose Antonio Planas. The trustee will verify creditors' proofs of claims until May 20. The validated claims will be presented in court as individual reports on July 5. The trustee will also submit a general report, containing a summary of the Company's financial status as well as relevant events pertaining to the bankruptcy, on August 30. CONTACT: Mr. Jose Antonio Planas, Trustee Paraguay 631 Buenos Aires TEC-SIN S.R.L.: Enters Bankruptcy on Court Orders ------------------------------------------------- Tec-Sin S.R.L. enters bankruptcy protection after Court No. 19 of Buenos Aires' civil and commercial tribunal, with the assistance of Clerk No. 38, ordered the Company's liquidation. The order effectively transfers control of the Company's assets to the court-appointed trustee who will supervise the liquidation proceedings. Infobae reports that the court selected Mr. Carlos Menendez as trustee. Mr. Menendez will be verifying creditors' proofs of claims until the end of the verification phase on May 11. Argentine bankruptcy law requires the trustee to provide the court with individual reports on the forwarded claims and a general report containing an audit of the Company's accounting and business records. The individual reports will be submitted on June 24 followed by the general report that is due on August 22. CONTACT: Tec-Sin S.R.L. Paz Soldan 4834 Buenos Aires Mr. Carlos Menendez, Trustee Ventura Bosch 7098 Buenos Aires TEDAR S.A.: Gets Court Ok for Reorganization -------------------------------------------- Tedar S.A. will begin reorganization following the approval of its petition by Court No. 22 of Buenos Aires' civil and commercial tribunal. The opening of the reorganization will allow the Company to negotiate a settlement with its creditors in order to avoid a straight liquidation. Ms. Graciela Silvia Turco will oversee the reorganization proceedings as the court-appointed trustee. She will verify creditors' claims until May 26. The validated claims will be presented in court as individual reports on July 8. The trustee is also required by the court to submit a general report essentially auditing the Company's accounting and business records as well as summarizing important events pertaining to the reorganization. This report will be presented in court on September 2. The Informative Assembly, the final stage of a reorganization where the settlement proposal is presented to the Company's creditors for approval, is scheduled on February 6 next year. CONTACT: Tedar S.A. San Nicolas 410 Buenos Aires Ms. Graciela Silvia Turco, Trustee Cochabamba 4272 Buenos Aires TELEFONICA DE ARGENTINA/TELEFONICA HOLDING: S&P Upgrades Ratings ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term foreign currency corporate credit rating on Argentine-based telecom provider Telefonica de Argentina S.A. (TASA), and its local and foreign currency corporate credit ratings on TASA's indirect holding Company, Telefonica Holding de Argentina S.A. (THA) to 'B-' from 'CCC-'. The outlook on both ratings is stable. The upgrades are based both on the strengthening of economic conditions in Argentina in 2003 and 2004, and on improvements in TASA's operating and financial performance, which should allow it to weather a certain level of unfavorable changes in Argentina's macroeconomic environment-particularly as regards inflation and exchange rates-and still maintain credit quality commensurate with the current rating category. Still, the ratings on TASA continue to be constrained by the financial and regulatory challenges of operating in the Argentine environment after the crisis in 2002, which weakened TASA's debt-servicing ability. Uncertainty is still high regarding the contract and tariff renegotiation, which was mandated by the government in early 2002 but is still pending. In November 2004, the government extended the ruling of the Emergency Law and the period for tariff and contract renegotiation until December 2005, which could result in additional delays. Nevertheless, potential tariff adjustments resulting from the renegotiation are not expected to compensate for the effects of the devaluation of the peso, inflation, and pesification and freeze of tariffs. The ratings are supported by the Company's good market position and efficient operations. The stable outlook reflects expectations that the Company's good competitive position and a relatively stable economic scenario would allow TASA to consolidate its financial improvements. Nevertheless, ratings could be revised if tariff inflexibility persists under a higher than expected inflationary and exchange rate scenario, government intervention increases, or financial flexibility deteriorates significantly. TASA is one of two incumbent telephone companies in Argentina, holding approximately 53% of the 8 million lines in service. The ratings on THA are based on its indirect stake in TASA, its only significant asset. Primary Credit Analyst: Ivana Recalde, Buenos Aires (54) 114-891-2127; ivana_recalde@standardandpoors.com Secondary Credit Analyst: Marta Castelli, Buenos Aires (54) 114-891-2128; marta_castelli@standardandpoors.com TGS: S&P Raises Ratings To 'B-' ------------------------------- Standard & Poor's Ratings Services raised its local and foreign currency ratings on Transportadora de Gas del Sur S.A. (TGS) to 'B-' from 'CCC+'. The outlook is stable. The rating action follows Standard & Poor's perception of a better business environment in Argentina after three consecutive years of economic growth, and the unusually high prices of TGS's unregulated activities, despite the uncertainties about utilities in the country (particularly the prolonged renegotiation of concession contracts and tariff setting). The ratings do reflect some government intervention that could partially affect TGS's unregulated business. TGS is Argentina's largest natural gas transportation Company and has approximately US$910 million in debt outstanding. The ratings on TGS remain constrained by several risks, the main ones being: -- High regulatory risk in Argentina and future cash flow generation uncertainties, as regulated tariffs have remained frozen in Argentine peso terms since January 2002; -- The timing and final outcome of concession contract renegotiations remain uncertain; -- Still-high leverage after restructuring; -- Partial currency mismatches between revenues (partly in Argentine pesos) and debt service (in U.S. dollars); -- Exposure to the swings in international prices of liquids coming from natural gas processing; and -- Limited financial flexibility. These risks are partially offset by TGS's unregulated activity having benefited from the devaluation of the Argentine peso, and by a favorable debt maturity schedule after debt restructuring. "The stable outlook reflects expectations of strengthening repayment capacity after the improvement in TGS's debt maturity schedule, a certain stability in the exchange rate, and a certain degree of government intervention in the Company's operations," said Standard & Poor's credit analyst Luciano Gremone. The outlook also reflects our opinion that the debt restructuring concluded in December 2004 provides TGS with an adequate window for renegotiating the concession contract without incurring significant financial pressures. In this context, the ratings could benefit from future perceived important improvements in the country's institutional environment or a renegotiation of the concession contract favorable for the Company's cash flow generation. Nevertheless, the ratings could come under pressure if the renegotiation of the concession contract negatively affects TGS's business or financial profiles or if further government intervention (i.e., as a form of mandatory investments, additional export duties, or significant natural gas restrictions to be processed at the Cerri complex in the province of Buenos Aires) significantly affects the Company's cash generation. Primary Credit Analyst: Luciano Gremone, Buenos Aires (54) 11-4891-2143; luciano_gremone@standardandpoors.com Secondary Credit Analyst: Pablo Lutereau, Buenos Aires (54) 114-891-2125; pablo_lutereau@standardandpoors.com TGS: S&P Raises IADB Bond Ratings --------------------------------- Standard & Poor's Ratings Services raised its ratings on TGS S.A.'s US$201.14 million and US$89.00 million Inter-American Development Bank (IADB) bonds to 'B-' from 'CCC+'. The rating action follows the March 30, 2005, upgrade of the local and foreign currency ratings on Transportadora de Gas del Sur S.A. (TGS) to 'B-' from 'CCC+'. The outlook on all ratings on TGS is stable. The bonds benefit from the IADB's preferred creditor status umbrella, which means that the rating on the bonds' underlying loans is based on the 'B-' issuer credit rating of TGS. The continued performance of the bonds depends on TGS' ability and willingness to make all owed payments in U.S. dollars. The upgrade of TGS reflects Standard & Poor's perception of a better business environment in Argentina after three consecutive years of economic growth. The upgrade also reflects the unusually high prices of TGS' unregulated activities, despite the uncertainties regarding utilities in the country (particularly the prolonged renegotiation of concession contracts and tariff setting). The ratings still take into account the risk of some government intervention, which could partially affect TGS' unregulated business. TGS is Argentina's largest natural gas transportation Company. The Company had approximately US$910 million in debt outstanding as of Dec. 31, 2004. Primary Credit Analyst: Maria Sol Ventura, Buenos Aires (54) 11-4891-2114; maria_sol_ventura@standardandpoors.com Secondary Credit Analyst: Juan Pablo De Mollein, New York (1) 212-438-2536; juan_demollein@standardandpoors.com ============= B E R M U D A ============= FLEMING INTERNATIONAL: Names Robin Mayor as Trustee --------------------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 And IN THE MATTER OF Fleming International Equity (Bermuda) Limited The Sole Member of Fleming International Equity (Bermuda) Limited, acting by written consent without a meeting on February 21, 2005 passed the following resolutions: (1) THAT the Company be wound up voluntarily, pursuant to the provisions of the Companies Act 1981; (2) THAT Robin J. Mayor be and is hereby appointed Liquidator for the purposes of such winding-up, such appointment to be effective forthwith. The Liquidator informs that: - Creditors of Fleming-International Equity (Bermuda) Limited, which is being voluntarily wound up, are required, on or before April 13, 2005, to send their full Christian and Surnames, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their lawyers (if any) to Robin J. Mayor at Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, HM DX, Bermuda, the Liquidator of the said Company, and if so required by notice in writing from the said Liquidator, and personally or by their lawyers, to come in and prove their debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. - A final general meeting of the Sole Member of Fleming- International Equity (Bermuda) Limited will be held at the offices of Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda on May 4, 2005 at 9:30 a.m. or as soon as possible thereafter, for the purposes of: (1) receiving an account laid before them showing the manner in which the winding-up of the Company has been conducted and its property disposed of and of hearing any explanation that may be given by the Liquidator; and (2) by resolution determining the manner in which the books, accounts and documents of the Company and of the Liquidator shall be disposed of; and (3) by resolution dissolving the Company. CONTACT: Mr. Robin J. Mayor, Liquidator Clarendon House, Church Street Hamilton, Bermuda INTER-ATLANTIC MANAGERS: Member Resolves to Liquidate Assets ------------------------------------------------------------ IN THE MATTER OF THE COMPANIES ACT 1981 And IN THE MATTER OF Inter-Atlantic Managers, Ltd. The Member of Inter-Atlantic Managers, Ltd., acting by written consent without a meeting on 23rd March, 2005 passed the following resolutions: (1) THAT the Company be wound up voluntarily, pursuant to the provisions of the Companies Act 1981; (2) THAT Robin J. Mayor be and is hereby appointed Liquidator for the purposes of such winding-up, such appointment to be effective forthwith. The Liquidator informs that: - Creditors of Inter-Atlantic Managers, Ltd., which is being voluntarily wound up, are required, on or before April 13, 2005 to send their full Christian and Surnames, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their lawyers (if any) to Robin J. Mayor at Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, HM DX, Bermuda, the Liquidator of the said Company, and if so required by notice in writing from the said Liquidator, and personally or by their lawyers, to come in and prove their debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. - A final general meeting of the Member of Inter-Atlantic Managers, Ltd. will be held at the offices of Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda on May 2, 2005 at 9:30 a.m. for the purposes of: (1) receiving an account laid before them showing the manner in which the winding-up of the Company has been conducted and its property disposed of and of hearing any explanation that may be given by the Liquidator; and (2) by resolution determining the manner in which the books, accounts and documents of the Company and of the Liquidator shall be disposed of; and (3) by resolution dissolving the Company. CONTACT: Mr. Robin J. Mayor, Trustee Clarendon House Church Street Hamilton, Bermuda LORAL SPACE: Posts Updates on Reorganization -------------------------------------------- On July 15, 2003, Loral Space & Communications Ltd. and certain of its subsidiaries filed voluntary petitions for reorganization under chapter 11 of title 11 of the United States Code in the United States District Court for the Southern District of New York and parallel insolvency proceedings in the Supreme Court of Bermuda in which certain partners of KPMG were appointed as joint provisional liquidators. Regulation FD Disclosure On March 28, 2005, Loral Space & Communications Ltd. ("Loral" or the "Company") and certain of its subsidiaries filed the disclosure statement (the "Disclosure Statement") for their third amended joint plan of reorganization with the U.S. Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court"). On March 29, 2005, Loral filed its annual report (the "Annual Report") for the fiscal year ended December 31, 2004 with the Bankruptcy Court. CONTACT: Loral Space & Communications Ltd. c/o Loral SpaceCom Corp. 600 Third Ave. New York, NY 10016 USA Phone: 212-697-1105 Web site: http://www.loral.com LORAL SPACE: NY Court Stays Consolidated Securities Fraud Suit -------------------------------------------------------------- The consolidated securities class action filed against Loral Space & Communications, Ltd. in the United States District Court for the Southern District of New York remains stayed as a result of the Company's filing for reorganization under Chapter 11 of the Bankruptcy Code. On March 2, 2002, the seven separate purported class action lawsuits filed by various holders of the Company's common stock against the Company, Bernard L. Schwartz and Richard J. Townsend were consolidated into one action titled "In re: Loral Space Communications Ltd. Securities Litigation." On May 6, 2002, plaintiffs in the consolidated action filed a consolidated amended class action complaint alleging that all defendants violated Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder, by making material misstatements or failing to state material facts about the Company's s financial condition and its investment in Globalstar Telecommunications Limited (GTL) and that Mr. Schwartz is secondarily liable for these alleged misstatements and omissions under Section 20(a) of the Exchange Act as an alleged "controlling person" of the Company. The class of plaintiffs on whose behalf the lawsuit has been asserted consists of all buyers of the Company's common stock during the period from November 4, 1999 through February 1, 2001, excluding the defendants and certain persons related to or affiliated with them. After oral argument on a motion to dismiss filed by the Company and Mr. Schwartz and Mr. Townsend, in June 2003, the plaintiffs filed an amended complaint alleging essentially the same claims as in the original amended complaint. In February 2004, a motion to dismiss the amended complaint was granted by the court insofar as Mr. Schwartz and Mr. Townsend are concerned. As a result of the commencement of the Chapter 11 Cases, however, this lawsuit is subject to the automatic stay, and further proceedings in the matter have been suspended, insofar as the Company is concerned but continued as to the other defendants. The Company is obligated to indemnify Mr. Schwartz and Mr. Townsend for any losses or costs they may incur as a result of this lawsuit, subject to the effect of the Chapter 11 Cases. (Class Action Reporter, Thursday, March 31, 2005, Vol. 7, Issue 63) LORAL SPACE: Asks NY Court To Dismiss Consolidated ERISA Lawsuit ---------------------------------------------------------------- Loral Space & Communications, Ltd. asked the United States District Court for the Southern District of New York to dismiss the consolidated class action filed against it by its former employees and participants in the Loral Savings Plan (the "Savings Plan"), styled "In re: Loral Space ERISA Litigation." In July 2004, plaintiffs in the consolidated action filed an amended consolidated complaint against the members of the Loral Space & Communications Ltd. Savings Plan Administrative Committee and certain existing and former members of the Board of Directors of SS/ L, including Bernard L. Schwartz. The amended complaint alleges: (1) that defendants violated Section 404 of the Employee Retirement Income Security Act (ERISA), by breaching their fiduciary duties to prudently and loyally manage the assets of the Savings Plan by including Loral common stock as an investment alternative and by providing matching contributions under the Savings Plan in Loral stock, (2) that the director defendants violated Section 404 of ERISA by breaching their fiduciary duties to monitor the committee defendants and to provide them with accurate information, (3) that defendants violated Sections 404 and 405 of ERISA by failing to provide complete and accurate information to Savings Plan participants and beneficiaries, and (4) that defendants violated Sections 404 and 405 of ERISA by breaching their fiduciary duties to avoid conflicts of interest. The class of plaintiffs on whose behalf the lawsuit has been asserted consists of all participants in or beneficiaries of the Savings Plan at any time between November 4, 1999 and the present and whose accounts included investments in Loral stock. The suit is styled, "In Re Loral Space ERISA Litigation, case no. 1:03-cv-09923-LTS," filed in the United States District Court for the Southern District of New York, under Judge Laura Taylor Swain. Representing the plaintiffs is Evan J. Smith, Brodsky & Smith, L.L.C., Two Bala Plaza, Suite 602 Bala Cynwyd, PA 19004, Phone: 610.667.6200, Fax: 610.667.9029, E-mail: esmith@brodsky-smith.com. (Class Action Reporter, Thursday, March 31, 2005, Vol. 7, Issue 63) NORTHBRIDGE FUND: Nicholas Hoskins to Serve as Liquidator --------------------------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 And IN THE MATTER OF The Northbridge Fund Limited The following Resolutions of The Northbridge Fund Limited were adopted by the sole Member by written consent on March 28, 2005: (a) that the Company be wound up voluntarily pursuant to the provisions of The Companies Act, 1981; and (b) that Nicholas Hoskins be appointed Liquidator for the purposes of such winding-up, such appointment to be effective forthwith. The Liquidator informs that: - Creditors of The Northbridge Fund Limited, which is being voluntarily wound up, are required, on or before April 29, 2005 to send their full Christian and Surnames, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their attorneys (if any) to the Liquidator of the said Company at Wakefield Quin, Chancery Hall, 52 Reid Street, Hamilton, Bermuda and if so required by notice in writing from the said Liquidator, and personally or by their attorneys, to come in and prove their debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. - A Final General Meeting of the Members of The Northbridge Fund Limited will be held at the offices of Wakefield Quin, Chancery Hall, 52 Reid Street, Hamilton, Bermuda on May 6, 2005 at 10:00 a.m., or soon as possible thereafter, for the purposes of: having an account laid before them showing the manner in which the winding-up has been conducted and how the property of the Company has been disposed of and of hearing any explanation that may be given by the Liquidator; determining by Resolution the manner in which the books, accounts and documents of the Company and of the Liquidator thereof, shall be disposed of; and by Resolution dissolving the Company. CONTACT: Mr. Nicholas Hoskins, Liquidator Chancery Hall, 52 Reid Street Hamilton, Bermuda =========== B R A Z I L =========== AES CORPORATION: Reports Changes in 2004 Results ------------------------------------------------ The AES Corporation (NYSE:AES) completed its annual financial statements and filed its 2004 Annual Report on Form 10-K with the Securities and Exchange Commission Wednesday. In connection with its 2004 year-end closing process, the Company identified additional fourth quarter adjustments that changed the results the Company reported in a press release dated March 17, 2005. Final results for the year ended December 31, 2004 include: - Revenues were $9,486 million ($15 million above the previously reported amount) reflecting an increase of 13% from $8,415 million in 2003. - Gross margin was $2,772 million ($4 million above the previously reported amount) reflecting an increase of 14% from $2,436 million as restated for 2003. - Diluted earnings per share were $0.60 ($0.01 below the previously reported amount of $0.61) versus a ($0.69) loss per share as restated for 2003. - Diluted earnings per share from continuing operations were $0.57 ($0.01 below the previously reported amount of $0.58) versus $0.56 as restated for 2003. The majority of the $0.01 earnings per share difference is attributable to adjustments of capacity billings at AES's Dominican Republic generating plants for 2004 that were calculated and submitted post year-end by the government. As previously reported, the Company restated its 2003 and 2002 financial statements. The 2003 and 2002 restatement adjustments had no impact on revenue or net cash flow in either year, a $3 million positive impact on gross margin in 2003 and no impact on gross margin in 2002. In 2003, net income from continuing operations declined by $4 million to $332 million and net loss increased by $11 million to $414 million. In 2002, net loss from continuing operations increased by $37 million to $1,646 million, and net loss increased by $50 million to $3,559 million. The restatement adjustments related to the following: - Deferred tax reconciliation adjustments associated with certain of the Company's foreign subsidiaries, including amounts to correctly reflect the tax effect of a minimum pension liability account; - Discontinued operations adjustments associated with eliminating certain identified net liabilities related to operations previously written off in 2003; - Balance sheet reclassification adjustments to certain accounts associated with income tax, minority interest and foreign currency translation. In connection with its Sarbanes-Oxley evaluation of internal controls, the Company completed its assessment of the effectiveness of its internal controls. Management concluded that an individual material weakness existed as of December 31, 2004. This was due to the lack of an effective control for timely and detailed reconciliation of the components of its foreign subsidiaries' income tax assets and liabilities to related consolidated balance sheet accounts. The Company is taking steps to remedy this weakness. None of the restatement amounts described above will have an impact on the 2005 guidance previously disclosed on February 3, 2005. About AES AES is a leading global power company, with 2004 sales of $9.5 billion. AES operates in 27 countries, generating 44,000 megawatts of electricity through 120 power facilities and delivers electricity through 17 distribution companies. Our 30,000 people are committed to operational excellence and meeting the world's growing power needs. To learn more about AES, please visit www.aes.com or contact media relations at media@aes.com. CONTACT: AES Corporation Media Contact Mr. Robin Pence Phone: 703-682-6552 or Investor Contact Mr. Scott Cunningham Phone: 703-682-6336 AES CORPORATION: Sets Annual Stockholders Meeting on April 28 ------------------------------------------------------------- NOTICE OF 2005 ANNUAL MEETING OF STOCKHOLDERS OF THE AES CORPORATION TO BE HELD ON THURSDAY, APRIL 28, 2005 March 30, 2005 TO THE HOLDERS OF COMMON STOCK OF THE AES CORPORATION: The 2005 Annual Meeting of Stockholders of The AES Corporation will be held on Thursday, April 28, 2005, at 9:30 a.m. on the 10th floor of the Company's corporate offices located at 4300 Wilson Boulevard, Arlington, Virginia. Doors to the Annual Meeting will open at 8:30 a.m. The Annual Meeting will be conducted to address the following matters: 1. To elect 11 members to the Board of Directors; 2. To consider and vote on a proposal to ratify the appointment of Deloitte & Touche LLP as the independent auditors of the Company for the year 2005; and 3. To transact such other business as may properly come before the Annual Meeting. Stockholders of record at the close of business on March 3, 2005 are entitled to notice of and to vote at the Annual Meeting. Brian A. Miller Vice President, Deputy General Counsel and Secretary Each stockholder is requested to execute and promptly return the enclosed proxy card. A prepaid envelope is enclosed for returning proxy cards. Alternatively, stockholders may vote by telephone or via the Internet. Any stockholder submitting a proxy card has the power to revoke the vote set forth in such proxy card at any time prior to the submission of votes at the annual meeting. stockholders who are present at the annual meeting may withdraw their proxy and vote in person. CONTACT: AES Corporation Media Contact Mr. Robin Pence Phone: 703-682-6552 or Investor Contact Mr. Scott Cunningham Phone: 703-682-6336 AES CORPORATION: EVP Joseph Brandt Steps Down --------------------------------------------- The AES Corporation (NYSE:AES) announced Wednesday that Joseph C. Brandt, Executive Vice President and Chief Operating Officer, Integrated Utilities, is leaving AES to pursue other interests. John Ruggirello, Executive Vice President and Chief Operating Officer, Generation, will serve as acting COO for AES's Integrated Utilities business until a permanent replacement is named. "Joe was an exceptionally valuable contributor to the Company's turnaround efforts and we wish him well in his new endeavors," said AES President and Chief Executive Officer Paul Hanrahan. Brandt served as COO for AES's Integrated Utilities business since 2003. ALPARGATAS: 11.9% Stake Sold for $2.7M -------------------------------------- Long Bar Argentina has paid an estimated US$2.7 million to acquire an 11.9 percent stake in Brazilian sports apparel Company Alpargatas, reports El Cronista. Long Bar expects to eventually trade the shares, purchased from US investment fund Fallaron, as it does not intend to acquire a controlling interest in Alpargatas. Fallaron acquired around US$30 million worth of Alpargata's debts and exchanged them for shares in recent months to take advantage of the debt for equity swap offered by the Company. Alpargatas has capitalized US$400 million in debts, equivalent to 93 percent of its shares. CEMIG: Approves Internal Staff Reassignment Between Units --------------------------------------------------------- Matters approved by the meeting of the Board of Directors of Cemig held on March 30, 2005: 1. Advance against future capital increase of the Usina Termeletrica Barreiro S.A.. 2. Internal staff reassignment agreement between CEMIG/Rosal Energia S.A./Gasmig/Efficientia S.A. CONTACT: Cemig-Companhia Energetica AV. Barbacenda 1200 Bello Horizonte MG, 30161-970 Brazil PARMALAT: Reports EUR568.7Mln Revenues in 2004 ---------------------------------------------- Parmalat Finanziaria S.p.A. in Extraordinary Administration presents the operating and financial results of the Parmalat Group at February 28, 2005. Scope of Consolidation The scope of consolidation has been defined using principles that are consistent with those adopted in preparing the statement of income and balance sheet at December 31, 2004. Companies that are subject to certain restrictions on their management as a result of local bankruptcy proceedings that have effectively placed them outside the control of Parmalat Finanziaria S.p.A. in Extraordinary Administration, and companies in voluntary liquidation are no longer consolidated on a line-by-line basis. The current scope of consolidation no longer includes companies in which the Group held equity investments that were sold after January 1, 2005. The corresponding 2004 data have been restated accordingly on a pro forma basis. The operations divested in 2005 include the companies that comprised the USA Bakery Division (Mother's Cake & Cookies, Archway Cookies and three production units in Canada), which were sold in January 2005, and Parmalat Uruguay, which was sold in February 2005. Margherita Yogurt, which was placed in liquidation in February 2005, has also been removed from the scope of consolidation. OPERATING PERFORMANCE Core Businesses The Group's Core Businesses had revenues of EUR568.7 million at February 28, 2005, up 4.6% from the EUR543.9 million booked in the same period last year. This revenue gain produced an improvement in EBITDA as well, which grew both in absolute terms (from EUR31.0 million to EUR38.5 million) and as a percentage of revenues (from 5.7% to 6.8%). These data do not reflect the impact of the nonrecurring charges related to the extraordinary administration proceedings, which amounted to about EUR10.0 million, which is in line with February 2004. An analysis of the Group's results in the main geographic regions in which it operates is provided below. Italy At EUR206.1 million, cumulative revenues were slightly lower (- 3.3%) than the EUR213.2 million booked in February 2004. This decrease was accompanied by a decrease in EBITDA, which declined from EUR15.7 million to EUR15.4 million. The revenue shortfall mainly reflects lower sales by Boschi, an affiliate that operates primarily in the copacking business and was recently declared eligible for Extraordinary Administration. Total EBITDA held at about the same level as last year, as savings in manufacturing costs and overhead offset increases in promotional and advertising expenses. Spain Net revenues for the period totaled EUR31.5 million, down slightly compared with February 2004(-2.5%) from the EUR32.3 million reported last year. At the same time, EBITDA improved from EUR1.5 million (4.6% of revenues) to EUR1.7 million (5.3% of revenues). Lower unit sales and changing conditions in the domestic market, where competition is becoming increasingly aggressive, are the main reasons why revenues fell short of the level achieved in 2004. South Africa At February 28, 2005, revenues rose to EUR41.4 million, or 16.9% more than the EUR35.4 million booked in the same month last year. During the same period, EBITDA declined from EUR3.4 million to EUR3.3 million, equal to 9.5% and 7.9% of revenues, respectively. The main reasons for the improvement in revenues compared with February 2004 include the significant appreciation of the South African rand versus the euro (average exchange rate up 9.6% compared with February 2004) and an increase in unit sales for all of the main product lines (only cheese shipments were lower). Higher promotional expenses explain the reduction in EBITDA. Venezuela The decline in the value of the Bolivar versus the euro, which amounted to 17.1% compared with the average exchange rate for February 2004, was less than in previous months (-27.6% in December 2004, -24.8% in January 2005). At EUR24.2 million, cumulative revenues were 15.1% lower than in February 2004 (EUR28.5 million). At the same time, EBITDA doubled in absolute terms (EUR2.0 million, compared with EUR0.9 million in 2004) and improved from 3.1% to 8.3% as a percentage of revenues. The results reported in February, along with those of recent months, point to a turnaround for the Venezuelan companies, made possible by the recent implementation of reorganization and refocusing programs. However, this progress is being hampered by the social policies recently adopted by the Venezuelan government. Canada Revenues were sharply higher, rising to EUR188.8 million, or 20.0% more than the EUR157.4 million reported in February 2004. The gain in net revenues, made possible by the combined impact of higher unit sales and the price increases implemented at the beginning of the year, produced an improvement in EBITDA, which rose both in absolute terms (from EUR6.7 million to EUR12.3 million) and as a percentage of revenues (from 4.3% to 6.5%). An increase in sales days compared with February 2004 and a slight appreciation of the Canadian dollar versus the euro (+3.0% compared with the average exchange rate for February 2004) were also positive contributing factors. Australia At February 28, 2005, revenues were little changed from the EUR60.5 million booked last year. At EUR3.8 million (6.3% of revenues), EBITDA were slightly better than in February 2004 (EUR3.4 million, 5.6% of revenues). A more favorable product mix (sales of pasteurized cream, desserts and tea were lower, but shipments of pasteurized and UHT milk were higher) is the main reason for the increase in EBITDA in the face of flat revenues. In addition, the Australian dollar depreciated slightly against the euro compared with the same period last year (-3.7% compared with the average exchange rate for February 2004). Noncore Businesses In February 2005, the Group's Noncore Businesses reported revenues of EUR56.0 million, a decrease of 36.4% from pro forma revenues of EUR76.4 million in February 2004. However, even though net revenues were down, EBITDA improved from a negative EUR3.1 million to a positive EUR5.8 million, due mainly to an outstanding performance by the Parma Football Club. NET FINANCIAL POSITION Highlights At the end of February, the Group's total indebtedness showed little change from a month earlier (down from EUR11,847.7 million at January 31, 2005 to EUR11,841.1 million at February 28, 2005). Liquid assets decreased due to the repayment of indebtedness by Canadian, Australian and Portuguese companies. The Group's Portuguese operations benefited from a cancellation of a portion of their indebtedness thanks to a settlement reached with the involvement of Parmalat S.p.A. The combined indebtedness owed to lenders outside the Group by subsidiaries that are parties to local composition-with- creditors proceedings and, consequently, have been deconsolidated is not reflected in the net financial position shown above. At December 31, 2004, these borrowings totaled EUR2,484.4 million (EUR2,437.3 million at June 30, 2004). Because some of these borrowings are secured by guarantees provided by Parmalat S.p.A. and Parmalat Finanziaria S.p.A. in the amount of EUR1,668.1 million (EUR1,753.4 million at June 30, 2004), a reserve for risks of an amount equal to the guaranteed indebtedness (EUR1,675.2 million)was recognized in the consolidated financial statements at June 30, 2004. Based on currently available information, it would seem reasonable to adjust the reserve amount to EUR1,657.1 million. The consolidated financial statements also show that indebtedness owed by the Group to companies in special proceedings who are not consolidated line by line amounted to EUR 728.0 million (EUR 745.8 million at June 30, 2004). As of reporting date, no amount has been drawn from the EUR105.8-million line of credit that a pool of banks provided to Parmalat S.p.A. on March 4, 2004 and later renewed until September 2, 2005. Companies in Extraordinary Administration The net indebtedness incurred by companies under extraordinary administration toward lenders outside the Group prior to their becoming eligible for extraordinary administration is all short- term, since all of these companies are in default of the covenants of the respective loan agreements. Liquid assets held by the companies included in the Proposal of Composition with Creditors decreased from EUR230.1 million at January 31, 2005 to EUR222.7 million at February 28, 2005, due mainly to loans provided to other Group companies. Other Companies The net indebtedness owed to lenders outside the Group by the remaining operating and financial companies, which are consolidated line by line but are not included in the extraordinary administration proceedings, improved slightly, decreasing from EUR1,194.1 million at January 31, 2005 to EUR1,177.1 Million (including EUR692.9 million in long-term debt) at February 28, 2005. The comments provided on the performance of the individual companies show in greater detail the main changes that occurred in February 2005. Some Group companies are currently renegotiating their indebtedness in order to restructure it. PRINCIPAL COMPANIES IN EXTRAORDINARY ADMINISTRATION Parmalat Finanziaria S.p.A. The indebtedness of Parmalat Finanziaria S.p.A. was virtually unchanged compared with the previous month. Parmalat S.p.A. The decrease in indebtedness compared with the previous month reflects the offsetting among Group companies of debt positions that arose before the start of the extraordinary administration proceedings. The change that occurred in February 2005 in the amount of intra-Group loans receivable reflects the granting of two new loans to Parmalat Portugal SA (for EUR11.6 million) and to Latte Sole S.p.A. (for EUR1.6 million). The disbursement of these loans did not affect the Company's liquidity because they were funded entirely from the regular cash flow from operations. Eurolat S.p.A. The liquid assets held by Eurolat S.p.A. decreased in February 2005. Lactis S.p.A. The indebtedness of Lactis S.p.A. at February 28, 2005 was unchanged compared with the previous month. SIGNIFICANT EVENTS Significant events that occurred in February and March, through the date of this press release, are summarized below. These events have been the subject of previous press releases, the full text of which is available at the website www.parmalat.net. February 1 The Extraordinary Commissioner files an action to void pursuant to Article 67 of the Italian Bankruptcy Law against Morgan Stanley Limited and Morgan Stanley Bank. February 16 Lacteria SA sells Parmalat Uruguay SA. March 1 The Italian Minister of Production Activities, acting in concert with the Minister of Farming and Forestry Policies, approves certain amendments to the method of implementing the Restructuring Program of the Parmalat Group and to the Creditors Proposal. The Board of Directors of Parmalat S.p.A. (Assumptor) passes a resolution approving the amendments to the Proposal of Composition with Creditors that were authorized by the Minister of Production Activities, acting in concert with the Minister of Farming and Forestry Policies; approving drafts of the Prospectus, the 2005-2007 Industrial Plan of the Parmalat Group, the Memorandum on the Management Control System, the application to list the Company's shares and the request for clearance to publish the Prospectus; adopting a System of Corporate Governance, an Internal Dealing Code and a Code of Ethics for all Group companies; approving the Company's 2004 statutory financial statements; and agreeing to submit to the Stockholders' Meeting a motion to amend the Company's Bylaws. The Stockholders' Meeting of Parmalat S.p.A. (Assumptor) passes a resolution approving the Company's 2004 statutory financial statements; increasing the Company's capital stock; electing the Company's Board of Directors, Chairman and Statutory Auditors; and approving the application to list the shares and warrants of Parmalat S.p.A. (Assumptor). March 2 Parmalat Finanziaria S.p.A. publishes the final recovery ratios for the unsecured claims of creditors of the 16 companies in Extraordinary Administration party to the composition with Creditors Proposal. March 9 The Extraordinary Commissioner files an action to void pursuant to Article 67 of the Italian Bankruptcy Law against factoring companies and banks that had not been the target of previous actions to void announced on August 6, 2004, August 9, 2004, August 19, 2004 and December 16, 2004 March 15 The Board of Directors of Parmalat S.p.A. (Assumptor) appoints a Chief Executive Officer. March 15 The Stockholders' Meeting retains Pricewaterhouse Coopers to audit the financial statements for 2005, 2006 and 2007, as required under Article 159 of Legislative Decree No. 58 of February 24, 1998, and agrees to amend the Company's Bylaws in accordance with the recommendations of Borsa Italiana S.p.A. TELEMAR: Reveals $111M Budget for Telephone Installation -------------------------------------------------------- Fixed-line operator Telemar will spend BRL300 million (US$111mn) this year to install public and individual phones, reports Business News Americas. Telemar, under the federal universal access law, known as PGMU, is obliged to install public phones for small villages with 100 to 300 inhabitants, and individual phones for people living in villages with more than 300 inhabitants. The deadline for these implementations is December 31, 2005. German IT giant Siemens is supplying IT infrastructure for the project and implementing VoIP services by connecting these remote areas to the Hispamar satellite. This solution also allows broadband and data transfer services, to be implemented in a second phase. CONTACT: Tele Norte Leste Participacoes S.A. Rua Humberto de campos 425-8 Andar Leblon Rio de Janeiro, RJ 22430-190 Brazil Phone: +55 21 3131 1210 Web site: http://www.telemar.com.br UNIBANCO: To Discuss Payment of Interest on Capital Stock --------------------------------------------------------- The Board of Officers of Unibanco and of Unibanco Holdings have decided to propose to their respective Boards of Directors to hold meetings on April 8, 2005 in order to discuss: I. The payment of interest on capital stock, qualified as complementary to the interest on capital paid related to the profit ascertained in the 2004 fiscal year. II. That Board of Directors' meetings are held in a quarterly basis with the purpose of deciding on the payment of interest on capital stock to the shareholders. III. The payment of Quarterly Interests. CONTACT: (Unibanco) Uniao de Bancos Brasileiros S.A. Unibanco Holdings Avenida Eusebio Matoso 891 Sao Paulo, 05423-901 Brazil Phone: 55-3789-8000 Web site: http://www.unibanco.com.br ========= C H I L E ========= COEUR D'ALENE: Books $4.7M Non-Cash Adjustment for 2004 ------------------------------------------------------- Coeur d'Alene Mines Corporation (NYSE: CDE, TSX: CDM) announced Wednesday the expected filing with the Securities and Exchange Commission of its Annual Report on Form 10-K for 2004. The Company has received an unqualified opinion on its 2004 financial statements. Management's assessment pursuant to Section 404 of the Sarbanes-Oxley Act reported certain material weaknesses in the Company's system of internal controls and it plans to remediate all reported weaknesses. The Company booked a net $4.7 million ($0.02 per share) non- cash, deferred tax adjustment to its previously released, unaudited financial statements for 2004. The net deferred tax adjustment resulted primarily from a reduction in the expected future effective tax rate used in connection with the valuation allowance for deferred tax assets. As a result of the adjustment, net loss for 2004 increased from $12.2 million ($0.06 per share) to $16.9 million ($0.08 per share). Net cash flow was not affected. Net income for the fourth quarter of 2004 decreased from $13.0 million ($0.05 per diluted share) to $8.3 million ($0.03 per diluted share). Operating income remained unchanged at $1.8 million. About Coeur d'Alene Coeur d'Alene Mines Corporation is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. Coeur has mining interests in Nevada, Idaho, Alaska, Argentina, Chile and Bolivia. CONTACT: Mr. Tony Ebersole Director of Investor Relations Coeur d'Alene Mines Corporation Phone: 800-523-1535. Web site: http://www.coeur.com =================== C O S T A R I C A =================== ICE: May Issue Bonds on Foreign Markets to Finance Hydro Project ---------------------------------------------------------------- State power Company ICE is looking at the possibility of issuing bonds on foreign markets to finance its US$170-million, 82MW Cariblanco hydroelectric project, suggests Business News Americas. Cariblanco implementation manager Jose Miguel Mena revealed that the bonds would be issued through the Cariblanco trust fund, which ICE and local bank Banco Nacional created in order to issue securities for 100% of the project's costs. One of the markets being considered is the Panamanian stock market. Banco Nacional executives will study the bourse and attend that country's 4th annual investors' conference on April 28, Mena said. If bonds were to be issued on the Panamanian market, it would not be until mid-year, he added. Markets in Colombia, Ecuador, Guatemala and El Salvador are also being considered, Mena said. Construction of Cariblanco is nearly 30% complete and operations are scheduled to start in October 2007 but the project could come online as soon as end-March 2007. ICE: Sells 3,000 Reclaimed Mobile Lines --------------------------------------- Electricity and telecoms monopoly ICE is scheduled to sell 3,000 reclaimed mobile lines today, April 1, reports Business News Americas. The lines are the first batch of 10,000 lines ICE cut off because of non-payment. ICE press office revealed Tuesday there are already 15,000 people registered for the 10,000 lines, which consist of 5,000 GSM and 5,000 TDMA lines. The date for selling the next lot of lines is still to be determined. Costa Rica's comptroller recently approved a contract for Ericsson (Nasdaq: ERICY) to install another 600,000 GSM lines, and ICE also expects to begin selling the first 200,000 of these in October. With the Ericsson network there will be sufficient lines to serve 37% of the 4.5 million strong population. =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REPUBLIC: To Restructure $1B Debt --------------------------------------------- The Dominican Republic moves to restructure around US$1.1 billion in bond debt to comply with the provisions of the fund agreement it recently signed with the International Monetary Fund. Senate has approved the restructuring proposal, which covers two sovereign bonds worth US$600 million and US$500 million, while the House of Deputies is expected to endorse the bill this week. The Associated Press reports that approval of the bill on both houses will pave the way for restructuring talks between the country and foreign creditors such as the Paris Club. The IMF fund agreement offers a US$670 million loan package to the Dominican Republic aimed at alleviating its economic crisis. This agreement requires the country to restructure around US$7.2 billion of its debt to minimize the risk of default. =========== M E X I C O =========== MINERA AUTLAN: Invests $15M to Carry Out Energy Saving Measures --------------------------------------------------------------- Mexican manganese producer Minera Autlan (BMV: AUTLANB) is spending US$15 million to implement measures that will help it slash electricity and natural gas costs. Business News Americas reports that Autlan is carrying out the construction of a US$5 million, 300,000t/y sinter plant that will allow the Company to use coal or charcoal instead of natural gas. The plant, sited in the city of Tamos in eastern Mexico's Veracruz state, is scheduled to begin production in the third quarter of 2005. In addition, Autlan is constructing a hydroelectric plant in Atexcaco in Puebla state, which is expected to save the Company US$3 million per year. Autlan ended the fourth quarter of 2004 with revenue of MXN585 million (US$52.2mn), 125% up on the same period in 2003 thanks to increased demand for its manganese-ferroalloy products from Mexican steelmakers. ================= V E N E Z U E L A ================= PDVSA: Chavez Says Citgo Sale Still On -------------------------------------- Venezuelan President Hugo Chavez reaffirmed Wednesday his plan to sell a stake in Citgo Petroleum Corp., a subsidiary of state- owned oil Company Petroleos de Venezuela (PDVSA), the Associated Press reports. Chavez said Citgo is not making enough profits for Venezuela because of outdated supply contracts signed by former presidents. He said his administration could sell up to 60% of Citgo's assets. "We're planning to redesign the [Citgo] business, and for that we are looking for partners," Chavez said at a news conference after signing several cooperation and trade deals with Spain. Venezuela has begun talks with global oil companies that might be interested in buying a stake in Citgo, the president said without disclosing the names of the companies Venezuelan officials have spoken with. Chavez also rejected concerns that the eventual sale of Citgo will involve a decrease in oil exports to the United States. "Even if Venezuela sells Citgo, we will continue supplying oil to the United States," he said. "Venezuela has been supplying the United States with oil for over 100 years." PDVSA: Russian Firm Wants to Acquire Stake in German Refiner ------------------------------------------------------------ Russian oil major Lukoil Holdings (LKOH.RS) is reviewing the viability of acquiring PDVSA's 50% stake in German refiner Ruhr Oel Gmbh, reports Dow Jones Newswires. PdVSA's stake is for sale, and Lukoil has confirmed its interest. "There were talks about it," Lukoil spokesman, Dmitriy Dolgov, said without giving details of the talks. "The offer would have been more attractive if it included a network of gas stations." Ruhr Oel currently operates four refineries in Germany - Gelsenkirchen, Neustad, Karlsruhe, and Schwedt - with a crude processing capacity of 1 million barrels a day, of which PdVSA controls about 216,000 barrels a day, the EIA says. PdVSA has tried to sell its stake in Ruhr Oel before. In 2003, the Company announced intentions to sell its 50% stake in the Ruhr Oel to Russian financial-industrial concern Alfa Group, but the deal was shelved, reportedly because of objections from BP PLC, PDVSA's joint venture partner in Ruhr Oel. BP, through Veba Oel, controls the other 50% and has right of refusal before PdVSA can offer its stake to other buyers, according to the U.S. Energy Information Administration. BP declined to comment on whether it may exercise this right. The current talks about Ruhr Oel are in line with other negotiations between Lukoil and PdVSA. The two companies could sign an agreement as soon as in May for Lukoil to begin new upstream projects in Venezuela's heavy-oil Orinoco Belt. Lukoil President Vagit Alekperov is to visit Venezuela in late May. *********** 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. 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