/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/050411.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 Monday, April 11, 2005, Vol. 6, Issue 70 Headlines A R G E N T I N A AEROLINEAS ARGENTINAS: Seeks Private Investors Ahead of IPO EXPRESO COFA: Court Issues Liquidation Ruling IMPRESORES INTEGRADOS: Bankruptcy Starts on Court Order INTECEL S.A.: Seeks Court Approcal to Reorganize IRSA: Convertible Note Holders Exercise Warrant Rights IRSA: Unit Initiates Debt Restructuring MULTICANAL: $719M in Bonds Remain in Default NEW GENERATION: Liquidation Process Moves to Next Phase NUEVO SIGLO: Liquidates Assets to Pay Debts POLO FRIO: Initiates Bankruptcy Proceedings ROYAL SHELL: Significant Drop in Sales Prompts Fule Price Drop SANBUESI S.A.: Court Designates Trustee to Oversee Liquidation SYSTEM S.A.: General Report Due June 6 STATICS S.A.: Court Converts Bankruptcy to Reorganization TURBINE POWER: S&P Reaffirms 'raD' Rating to Various Bonds WOOLYN S.A.: Court Modifies Liquidation Timetable * ARGENTINA: Scotiabank Files Suit to Recoup Lost Investments B E R M U D A FLEMING INTERNATIONAL: Court Amends Wind-Up Schedule TRIMINGHAM BROTHERS: Seeking Scrambling to Keep Jobs Open B R A Z I L BRASKEM: Reverse Stoc Split Information Released PARANAPANEMA: Debt Talks With BNDES Underway VARIG: Passenger Traffic Increase Improves Net Loss Condition C H I L E COEUR D'ALENE: Proven Silver Reserves Increase 12% M E X I C O HYLSAMEX: Prepaymimg $141M Bond for Favorable Terms TV AZTECA: Internet Unit Reports $5.6M EBITDA in 2004 P U E R T O R I C O CENTENNIAL COMMUNICATIONS: Revenues Up 13% in Fiscal 3Q 2005 T R I N I D A D & T O B A G O BWIA: Operational Difficulties Delay Annual Report Filing BWIA: Government Assigns New Restructuring Task Force V E N E Z U E L A PDVSA: Misses Target Date to Complete 2003 SEC Report PDVSA: Subcommittee Continues Probe With More Ammunition ROYAL SHELL: Keen on 30% Percent Mariscal Sucre Gas Project - - - - - - - - - - ================= A R G E N T I N A ================= AEROLINEAS ARGENTINAS: Seeks Private Investors Ahead of IPO ----------------------------------------------------------- Flagship carrier Aerolineas Argentinas will place 15% of its share capital among a core group of investors, Dow Jones Newswires reports, citing a company executive. In an interview with Spanish news agency EFE Thursday, Aerolineas president Antonio Mata disclosed that the Company is seeking a "stable nucleus" comprising five Argentine investors. Each shareholder will purchase between 2% and 3% and will commit to hang on to their shares for a specified period of time, Mr. Mata said. Aerolineas has hired local bank Banco de Galicia y Buenos Aires (GALI.BA) to manage the operation. The placement for the "stable nucleus" will take place before the Company's initial public offering for a further 30% of its share capital, which is scheduled for the fourth-quarter of this year. But it was unclear whether the upcoming placement is an entirely private one, or if Aerolineas is simply recruiting local investors for the first tranche of its IPO. It was also unclear whether Banco Galicia, a unit of Argentine financial services company Grupo Financiero Galicia (GGAL), would play a role in underwriting the fourth-quarter offering. "We've already reached agreements on the operation with two international banks, one British and the other American," Mata said in reference to the fourth-quarter offering. Mata also revealed that Aerolineas Argentinas will eventually list shares in New York as well, but said he didn't know when that would take place. The Argentine state owns 1.34% of Aerolineas Argentinas and the carrier's controlling shareholder is a consortium led by Spanish travel Grupo Marsans (GMSN.YY). CONTACT: AEROLINEAS ARGENTINAS Torre Bouchard 547, 1106 Buenos Aires, ARGENTINA Phone: (54-11) 4310-3000 Fax: (54-11) 4310-3585 E-mail: volar@aerolineas.com.ar Home Page: www.aerolineas.com.ar EXPRESO COFA: Court Issues Liquidation Ruling --------------------------------------------- Court No. 25 of Buenos Aires' civil and commercial tribunal ordered the liquidation of Expreso Cofa S.R.L. 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 Mr. Miguel Angel Tregob, the court-appointed trustee. Mr. Tregob will verify creditors' proofs of claims until May 19. The verified claims will serve as basis for the individual reports to be submitted in court on June 28. The submission of the general report follows on August 24. Clerk No. 49 assists the court on this case that will end with the disposal of the company's assets in favor of its creditors. CONTACT: Mr. Miguel Angel Tregob, Trustee Lima 287 Buenos Aires IMPRESORES INTEGRADOS: Bankruptcy Starts on Court Order ------------------------------------------------------- Court No. 5 of Buenos Aires' civil and commercial tribunal declared Impresores Integrados S.R.L. bankrupt. The order effectively places the company's affairs as well as its assets under the control of court-appointed trustee Marcelo Carlos Rodriguez. As trustee, Mr. Rodriguez is tasked with verifying the authenticity of claims presented by the company's creditors. The verification phase is ongoing until May 24. Following claims verification, the trustee will submit the individual reports based on the forwarded claims for final approval by the court on July 7. A general report will also be submitted on September 9. Infobae reports that Clerk No. 9 assists the court on this case that will end with the sale of the company's assets. CONTACT: Mr. Marcelo Carlos Rodriguez, Trustee Cerrito 146 Buenos Aires INTECEL S.A.: Seeks Court Approcal to Reorganize ------------------------------------------------ Intecel S.A., a company operating in Buenos Aires, has requested for official authorization to reorganize says local news source Infobae. The reorganization petition, once approved by the court, will allow the company to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending before Court No. 10 of the city's civil and commercial tribunal. Clerk No. 19 assists the court on this case. CONTACT: Intecel S.A. Chile 577 Buenos Aires IRSA: Convertible Note Holders Exercise Warrant Rights ------------------------------------------------------ Inversiones y Representaciones Sociedad Anonima (IRSA) informed the Bolsa de Comercio de Buenos Aires and the Comision Nacional de Valores that on March 31, 2005, holders of the Company's Convertible Notes that already had exercised their conversion right exercised their warrant rights. As a result, a reduction of 19,095,116 warrants and an increase of 35,036,902 ordinary shares face value pesos 1 (V$N 1) each was made. As a result, the amount of shares of the Company goes from 303,335,624 to 338,372,526. The new amount of warrants outstanding is 67,743,553. The exercise of the warrant was performed according to terms and conditions established in the prospectus of issuance. The amount of shares acquired is equal to the amount of shares into which it was converted the convertible note at a price of US$ 0.6541 for each share face value pesos 1. Therefore US$ 22,917,637.60 entered into the Company. IRSA is Argentina's largest real estate company and was one of the first local companies to complete a debt restructuring in 2002 amid the country's economic meltdown. Its other holdings include shopping center operator Alto Palermo SA (APSA) and mortgage bank Banco Hipotecario SA (BHIP.BA). CONTACT: IRSA Inversiones y Representaciones S.A. 1066 Bolivar 108 Buenos Aires, Argentina Phone: 541-342-7555 IRSA: Unit Initiates Debt Restructuring --------------------------------------- IRSA revealed Thursday that its hotel subsidiary, Hoteles Argentinos SA, has launched a debt restructuring process that is scheduled to be completed by March 23, 2009, relates Dow Jones Newswires. IRSA, which holds an 80% stake in the unit, revealed the operation Thursday in a filing with the bourse. The parent, however, didn't state the amount involved in the ongoing process. The filing said Credit Suisse First Boston International has acquired liabilities the unit previously owed to BankBoston NA. Concurrently, IRSA reached a US$2 million credit default swap agreement with Credit Suisse. The unit is scheduled to present a debt-restructuring plan for all of its obligations by Sept. 15, 2005. The debt workout will be completed in 2009. MULTICANAL: $719M in Bonds Remain in Default -------------------------------------------- The Argentine arm of Standard & Poor's maintains an `raD' rating On a total of US$719 million of bonds issued by Argentine company Multicanal S.A., according to the CNV. The bonds are: - US$125 million of "Obligaciones Negociables simples, con vencimiento a 10 anos, autorizada poa AGOyE de fecha 7.10.96", due on February 1, 2007. These were classified under "Simple Issue" - US$125 million of "Obligaciones Negociables simples, con vencimiento a 5 anos, autorizadas por AGOyE de fecha 7.10.96", which matured in February 2002, and classified under "Simple issue". - US$150 million of "SERIE C, bajo el Programa de U$S 1050 millones", due on April 15, 2018. These were classified under "Series and/or Class". - US$175 million of "Serie E de Ons, bajo el Programa de U$S 1050 millones", also under "series and/or class". The bonds will mature on April 15, 2009. - US$144 million of bonds called "Serie J de ON bajo el Programa de ON de USD 1050 MM", with undisclosed maturity date. These bonds are classified as "Series and/or Class." The rating was given based on the Company's financial status as of December 31, 2004. NEW GENERATION: Liquidation Process Moves to Next Phase ------------------------------------------------------- New Generation S.A. of Buenos Aires will begin liquidating its assets after Court No. 23 of the city's civil and commercial tribunal declared the company bankrupt. Infobae reveals that the bankruptcy process will commence under the supervision of court- appointed trustee Hector Guillermo Calle. Mr. Calle 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 24. Clerk No. 46 assists the court on this case. CONTACT: New Generation S.A. Dr. Felipe J. Aranguren 2948 Buenos Aires Mr. Hector Guillermo Calle, Trustee Lavalle 1528 Buenos Aires NUEVO SIGLO: Liquidates Assets to Pay Debts ------------------------------------------- Nuevo Siglo S.A. proceeds with the liquidation of its assets following the bankruptcy pronouncement issued by Court No. 2 of Mendoza's civil and commercial tribunal, Infobae reports. The ruling places the company under the supervision of court- appointed trustee Carlos Hugo Dalmau. The trustee closed the verification of creditors' claims in December last year. The court expects to receive a general report of the case, containing a summary of the company's financial status as well as relevant events pertaining to the bankruptcy, on September 30. CONTACT: Mr. Carlos Hugo Dalmau, Trustee Pascual Tosco 245 San Jose, Guaymallen (Mendoza) POLO FRIO: Initiates Bankruptcy Proceedings ------------------------------------------- Court No. 14 of Buenos Aires' civil and commercial tribunal declared Polo Frio S.R.L. "Quiebra," reports Infobae. Clerk No. 28 assists the court on the case that will close with the liquidation of the Company's assets to repay creditors. Mr. Abel Alexis Latendorf, who has been appointed as trustee, will verify creditors' claims until May 31 and then prepare the individual reports based on the results of the verification process. The individual reports will be submitted in court on July 13, followed by the general report on September 8. CONTACT: Mr. Abel Alexis Latendorf, Trustee Piedras 153 Buenos Aires ROYAL SHELL: Significant Drop in Sales Prompts Fule Price Drop -------------------------------------------------------------- The Argentine government's call for a boycott of oil company Royal Dutch/Shell Group's products after it increased fuel prices in March proved effective. Citing Shell spokesperson Andy Corrigan, Business News Americas reports that the Company has decided to slash gasoline prices 3.1-3.9% depending on the type of fuel. "We're reducing gas prices today by an average 3.3% in response to market conditions, which include crude prices, competitor's pricing and sales volumes," Mr. Corrigan said. Shell's sales in Argentina have dropped significantly following President Nestor Kirchner's call for a boycott of the company's products in March. However, Shell did not reduce its diesel prices because it has enough in Argentina to meet demand without importing any diesel. President Kirchner hailed the decision to reverse fuel price increases as "a victory for the Argentine people." SANBUESI S.A.: Court Designates Trustee to Oversee Liquidation -------------------------------------------------------------- Buenos Aires accountant Fernando Jose Marziale was assigned trustee for the liquidation of local company Sanbuesi S.A., relates Infobae. Mr. Marziale will verify creditors' claims until June 6, the source adds. After that, he will prepare the individual reports, which are to be submitted in court on August 2. The submission of the general report should follow on September 14. The city's civil and commercial Court No. 3 holds jurisdiction over the Company's case. Clerk No. 5 assists the court with the wind-up proceedings. CONTACT: Sanbuesi S.A. Zinny 1679 Buenos Aires Mr. Fernando Jose Marziale, Trustee Avda Callao 930 Buenos Aires SYSTEM S.A.: General Report Due June 6 -------------------------------------- Trustee Hector Humberto Uano, assigned to oversee the liquidation of System S.A., is expected to submit a general report of the case on June 6. The general report provides the court with an audit of the Company's accounting and business records. Court No. 2 of Mendoza's civil and commercial tribunal has jurisdiction over this case. CONTACT: Mr. Hector Humberto Uano, Trustee Chile 1671 Mendoza STATICS S.A.: Court Converts Bankruptcy to Reorganization --------------------------------------------------------- Statics S.A. proceeds with reorganization after Court No. 4 of Mar del Plata's civil and commercial tribunal 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. Gustavo A. Semacendi, the court-appointed trustee, will verify creditors' proofs of claims until April 19. Creditors with unverified claims cannot participate in the Company's settlement plan. The trustee is also required to submit individual reports from the case on June 1 as well as a general report that is due on July 13. Clerk No. 7 assists the court on this case. CONTACT: Statics S.A. Castelli 2123 Mar del Plata Mr. Gustavo A. Semacendi, Trustee Arenales 3418 Mar del Plata TURBINE POWER: S&P Reaffirms 'raD' Rating to Various Bonds ---------------------------------------------------------- Moody's Latin America Calificadora de Riesgo S.A. assigned a default rating to US$20 million worth of corporate bonds issued by Turbine Power Co. S.A., says the CNV. The affected bonds, which matured on November 30, 2002, are described as "obligaciones negociables garantizadas." The rating was given based on the Company's financial status as of December 31, 2004. Moody's assigns `D' ratings to bonds that are in payment default and have a poor prospect of repaying all obligations. CONTACT: Turbine Power Co. S.A. Reconquista 656 Buenos Aires Phone: 4315-3272/3273 Fax: 4312-7707 E-mail: tpc@tpc.com.ar WOOLYN S.A.: Court Modifies Liquidation Timetable ------------------------------------------------- Court No. 14 of Buenos Aires' civil and commercial tribunal reset important events in the Woolyn S.A. liquidation proceedings to the following dates: 1. Deadline for the Submission of Proof of Claims: June 9, 2005 2. Individual Reports Submission: August 5, 2005 3. General Report Submission: September 19, 2005 All proof of claims must be forwarded to trustee Fanny Izbizky by the said deadline. Failure to comply with the submission requirement will disqualify creditors from any post-liquidation distributions. The city's Clerk No. 27 assists the court on this case. CONTACT: Ms. Fanny Izbizky, Trustee Olazabal 4981 Buenos Aires * ARGENTINA: Scotiabank Files Suit to Recoup Lost Investments ------------------------------------------------------------- Scotiabank is seeking more than US$600 million from the Government of the Republic of Argentina under a treaty intended to protect the interests of investors of one country doing business in the other. The Bank is claiming that expropriatory and discriminatory actions taken by the Argentine authorities caused the total loss of its investment in its subsidiary Scotiabank Quilmes, whose licence was revoked in August 2002. The Bank filed a Notice of Arbitration today after the Argentine government failed to respond to three written requests from Scotiabank during the past 18 months to negotiate an amicable settlement. Scotiabank is now referring the dispute to arbitration under the terms of the Promotion and Protection of Investments Treaty signed by the Republic of Argentina and Canada in 1991. The arbitration panel will be comprised of one nominee from the Bank, one from the Government of the Republic of Argentina, and a third person agreed to by both sides. This is the first time in the Bank's 173-year history that it has made a claim of this nature, but a series of expropriatory and discriminatory actions taken by the Argentine government directly caused the loss of its investment and violated its treaty rights of fair treatment. As a result, the Bank and its shareholders experienced significant damages and as such it intends to vigorously pursue the right to compensation under the treaty. Although full details of the claim are not a matter of public record, Scotiabank alleges that the Argentine actions violated the treaty protection against expropriation of investments without compensation and the protection against discriminatory treatment. The expropriatory actions include: - The mandatory conversion of U.S. dollar denominated deposits and loans into pesos at different exchange rates. Although the government promised compensation in the form of government bonds, Scotiabank Quilmes has never received the bonds. - Scotiabank also alleges the Argentine Central Bank discriminated against Scotiabank Quilmes by: - Not permitting Scotiabank Quilmes to pay a medium-term note, which came due, although it had the funds to do so. As a result, confidence in SBQ's ability to meet its obligations was severely impaired. - Not granting Scotiabank Quilmes financial assistance on the same basis as domestically-owned banks so as to make up for liquidity lost as a result of government actions and the economic crisis. - Obstructing Scotiabank Quilmes' attempts to restructure and reopen. Scotiabank is seeking damages as compensation for the loss of its investment, the cost to it of winding-up Scotiabank Quilmes, and harm to its reputation. Scotiabank is one of North America's premier financial institutions and Canada's most international bank. With approximately 48,000 employees, Scotiabank Group and its affiliates serve about 10 million customers in some 50 countries around the world. Scotiabank offers a diverse range of products and services including personal, commercial, corporate and investment banking. With $301 billion in assets (as at January 31, 2005), Scotiabank trades on the Toronto (BNS) and New York (BNS) Stock Exchanges. CONTACT: Media Contact: Frank Switzer, Scotiabank Public Affairs Tel: (416) 866-7238 E-mail: frank_switzer@scotiacapital.com ============= B E R M U D A ============= FLEMING INTERNATIONAL: Court Amends Wind-Up Schedule ---------------------------------------------------- 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 March 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 25, 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, the undersigned, 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 16, 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 TRIMINGHAM BROTHERS: Seeking Scrambling to Keep Jobs Open --------------------------------------------------------- Trimingham Brothers Ltd is exploring options on how to keep its most successful departments open in order to save some of the 220 jobs that are expected to go when the embattled department store closes its doors in July, the Royal Gazette reports, citing the Company's legal counsel. One of the options being considered is the possibility of transferring some of the brands, which Trimingham's has the exclusive right to carry, to other retailers. A plan could also be hatched for some of the store's most successful departments to carry on in business. Trimingham's legal counsel, Wendell Hollis, said: "The shoes, cosmetics and the jewelry departments are almost like stand- alone businesses. We are looking at the best way to handle [those departments]." "It may well be that some of those businesses will stay in business and there is a possibility that some of them may find themselves in what was the Smith's building. There is going to be an effort to save some of those [departments], and if you save them you also obviously maintain some jobs." CONTACT: TRIMINGHAM'S 37 Front Street Hamilton HM 11 Bermuda Phone: 441-295 1183 Fax: 441 295 3777 E-mail: information@triminghams.com =========== B R A Z I L =========== BRASKEM: Reverse Stoc Split Information Released ------------------------------------------------ Braskem S.A. ("Braskem"), complementing the information disclosed through a material fact, published March 15, 2005, informs its shareholders that the following proposals were approved during the Extraordinary Shareholders Meeting, held March 31, 2005: (i) the reverse split of its shares, at the rate of 250 (two hundred and fifty) shares of each type and class for each one (01) share of the same respective type and class; and (ii) the split of its American Depositary Shares ("ADSs"), traded on the New York Stock Exchange, at the rate of two (02) ADSs for each one (01) ADS outstanding. REVERSE SPLIT OF THE SHARES It has been established that within a timeframe of thirty (30) days counted as of April 05, 2005, to expire on May 04, 2005, inclusive, the shareholders at their own discretion and through purchase and resale, may adjust their respective positions in multiple blocks of 250 (two hundred and fifty) shares each by their own type and class through private negotiations or by trading at the stock exchange, in such a way that their shares do not generate any fractions after said reverse split. Once the timeframe for the adjustment of the positions is over, which will happen on May 04, 2005, eventual share fractions resulting from the reverse split shall be grouped in whole numbers and sold at Bovespa on May 25, 2005, and the amounts obtained from said sale shall be credited to the bank accounts of their owners, in the proportion of the shares owned, after the financial settlement resulting from the sale, to whit: (i) shareholders whose register of personal data is up to date at Banco Itau S.A shall have the corresponding amount credited to their bank account as of June 01, 2005; (ii) the remaining shareholders will have to report to the Banco Itau S.A branch of their choice to receive the amounts due them as of June 01, 2005; (iii) the amount corresponding to the shares under custody at CBLC - Companhia Brasileira de Liquidacao e Custodia shall be credited directly to CBLC up to June 01, 2005, and CBLC undertakes to transfer these amounts to the shareholders through the intermediation of the depositing brokerage houses; and (iv) as to those shareholders whose register of personal data is out of date, the amount shall be deposited at Banco Itau S.A as of June 01, 2005; The shares shall be traded at the Sao Paulo Stock Exchange - Bovespa, in blocks formed by the reverse split as of May 16, 2005. The value of the quotations at Bovespa shall be split up into four as compared to the amount traded on May 13, 2005. ADS SPLIT At the end of the reverse split operation in Brazil and after the ADS split, Braskem's ADS program, the current rate of which is 1,000 (one thousand) Class "A" preferred shares for each one (01) ADS, shall be changed to a rate of two (02) Class "A" preferred shares for each one (01) ADS. The change of the rate of the ADSs as compared to Class "A" preferred shares has been submitted for the approval of the Brazilian Securities Exchange Commission (CVM), and of the New York Stock Exchange (NYSE), and it shall be informed to the US Securities and Exchange Commission. The procedures to be followed to change the rate of the ADSs, as compared to Class "A" preferred shares, shall be implemented by the ADS depository Bank itself, which is The Bank of New York. The entire text of the documents pertaining to the approval given by the Extraordinary Shareholders Meeting, as well as the proposal put forth by the Board of Directors, is at the disposal of the interested parties at Braskem's headquarters, or else, at the Bovespa's and the CVM's sites. The shareholders shall be tended to by Banco Itau S.A at the branch offices shown infra, and at the other branches of the same bank that have been authorized to provide services to shareholders during regular banking hours: - Rua Boa Vista, 176 - 1� subsolo - Sao Paulo-SP; - Rua Sete de Setembro, 99 - Subsolo - Rio de Janeiro-RJ; - Av. Joao Pinheiro, 195 - Terreo - Belo Horizonte-MG; - Rua Sete de Setembro, 746 - Terreo - Porto Alegre-RS; - Rua Joao Negrao, 65 - Sobreloja - Curitiba-PR; - Av. Estados Unidos, 50 - 2� andar - Salvador-BA; - SCS Quadra 3 - Edificio D'Angela - Sobreloja - Brasilia-DF. CONTACT: Braskem S.A. Av. Nacoes Unidas 4777 Cep San Paulo, 05477-000 Brazil Phone: 55-11-3443-9999 Web site: http://www.braskem.com.br PARANAPANEMA: Debt Talks With BNDES Underway -------------------------------------------- Sao Paulo-based mining and metals holding company Paranapanema is in talks with national development bank BNDES to convert US$100 million in debt held by the latter into Paranapanema shares, reports Business News Americas. If BNDES agrees to convert the debt, which expires this year, into shares, its stake in Paranapanema would rise to 17% of voting capital while leading shareholder Banco do Brasil pension fund (Previ) will see its current 55% stake in the Company fall to 38%. Other major shareholders would also see their stakes adjusted downwards. However, company President Geraldo Haenel announced Paranapanema also wants to raise the Company's liquidity on Sao Paulo's Bovespa stock exchange to between 35% and 40%. Currently 22% of the company is publicly traded. VARIG: Passenger Traffic Increase Improves Net Loss Condition ------------------------------------------------------------- Flagship airline Varig on Thursday posted its best financial result since 1999, registering a net loss of just BRR87 million (USD$33.5 million) in 2004 compared to a net loss of BRR1.8 billion (USD$693.9 million) in 2003. Citing a statement from Varig, Reuters reports that the airline's net revenue from flights rose to BRR8.2 billion (USD$3.16 billion) from BRR7.5 billion (USD$2.89 billion) as the number of air travelers in Brazil grew 11.9 percent. In the fourth quarter alone, Varig registered a net profit of nearly BRR218 million (USD$84 million) from a year-earlier loss of BRR1.3 billion (USD$501 million), Varig Investor Relations Director Ricardo Bullara said, adding that the company was in a better shape and ready to receive capital injection "in any form." Bullara said that this year, Varig would have to repay BRR1 billion (USD$385.5 million) in debt and on aircraft leases. He said the end of the TAM deal would mean smaller revenues "but nothing that could seriously affect the company". CONTACT: VARIG (Viacao Aerea Rio-Grandense, S.A.) Rua 18 de Novembro No. 800, Sao Joao 90240-040 Porto Alegre, Rio Grande do Sul, Brazil Phone: (51) 358-7039/7040 (51) 358-7010/7042 Fax: +55-51-358-7001 Home Page: www.varig.com.br/english/ Contacts: Dorival Ramos Schultz, EVP Finance and CFO E-mail: dorival.schultz@varig.com.br Investor Relations: Av. Almirante Silvio de Noronha, n 365-Bloco "B" - s/458 / Centro Rio de Janeiro, Brazil ========= C H I L E ========= COEUR D'ALENE: Proven Silver Reserves Increase 12% -------------------------------------------------- Coeur d'Alene Mines Corporation (NYSE: CDE; TSX: CDM), the world's largest primary silver producer, announced Thursday that it has agreed to acquire all of the silver production and reserves contained at the Endeavor Mine in Australia, which is owned and operated by CBH Resources Ltd (ASX: CBH), for US$38.5 million. The Endeavor Mine is located 720 km northwest of Sydney in New South Wales and has been in production since 1983. In addition to principal production of lead and zinc, Endeavor is expected to produce approximately 1.3 million ounces of silver annually from mineral reserves containing approximately 24.0 million silver ounces. In total, the Endeavor Mine reports measured and indicated mineral resources containing approximately 8.2 million ounces of silver, and inferred mineral resources containing approximately 0.5 million silver ounces. Under the terms of the agreement, CDE Australia, a wholly-owned subsidiary of Coeur, will pay CBH US$15.4 million of cash at the closing. In addition, CDE Australia will pay CBH US$23.1 million of cash upon the determination by Coeur that a recently installed paste backfill plant at the Endeavor Mine is operating successfully. This determination is expected to take place in the third quarter of 2005. In addition to these upfront payments, Coeur will pay CBH an operating cost contribution of US$1.00 for each ounce of payable silver plus a further increment when the silver price exceeds the twenty-year average price of US$5.23 per ounce. This further increment begins on the second anniversary of this agreement and is 50% of the amount by which the silver price exceeds US$5.23 per ounce. A cost contribution of US$0.25 per ounce is also payable in respect of new ounces of proven and probable silver reserves as they are discovered. In addition, under the terms of the agreement, Coeur is entitled to receive a maximum of 17.7 million payable silver ounces from the current contained resource at the Endeavor Mine. Based on these terms, Coeur is effectively paying US$3.26 per payable ounce of silver reserve, which equates to a total effective full cost of US$4.26 per ounce of payable silver production. "We expect this transaction will immediately increase Coeur's silver production by 1.3 million ounces annually and contribute significantly to Coeur's earnings and cash flow over an anticipated mine life of at least ten years," said Dennis E. Wheeler, Chairman, President and Chief Executive Officer of Coeur. "At current silver prices, we expect that this transaction will increase Coeur's annual estimated operating cash flow by approximately $6.2 million." "Coeur and CBH consider the exploration potential and the opportunity to expand silver production at the Endeavor Mine to be considerable. Coeur is enthusiastic about returning to Australia and seeking to grow its business in this important mining country. We also look forward to working with CBH Resources and its seasoned management team to maximize the benefits of this partnership for both parties," Mr. Wheeler added. Endeavor Mine Mineral Reserves and Resources Mineral Reserves Tons (mm) Silver Grade Contained Silver (oz/ton) Ounces (mm) Proven 6.1 2.01 12.2 Probable 6.1 1.98 12.0 Total 12.1(1) 2.00 24.2 Mineral Resources Measured 4.4 0.88 3.9 Indicated 0.7 6.10(2) 4.3 Total M & I 5.1 1.61 8.2 Inferred .22 2.1 0.5 (1) Difference in Total due to rounding (2) Includes high-grade remnant material in upper levels of mine Categories of Mineral reserves and resources per Australasian Code for Reporting of Mineral Resources and Ore Reserves and Canadian National Instrument 43-101. Mineral reserves and resources are effective June 30, 2004. Mineral reserves based on a cutoff of 7.6% zinc; Silver content of mineral reserves tabulated as a by-product. Mineral resources are additional to reserves and do not have demonstrated economic viability. The U.S. Securities and Exchange Commission (SEC) generally does not permit mining companies, when filing with the SEC, to disclose mineral resources. About Coeur d'Alene Coeur d'Alene Mines Corporation is principally engaged in silver and gold mining and related activities, including exploration, development and mining at its properties located in the US (Nevada, Idaho and Alaska) and South America (Chile, Argentina and Bolivia). Its operating segments include the Rochester (Nevada), Coeur Silver Valley (Idaho), Cerro Bayo (Chile) and Martha (Argentina). All operating segments are engaged in the discovery and/or mining of gold and silver and generate the majority of their revenues from the sale of these precious metals. CONTACT: Mr. Tony Ebersole Director of Investor Relations Phone: +800-523-1535 Web site: http://www.coeur.com/ =========== M E X I C O =========== HYLSAMEX: Prepaymimg $141M Bond for Favorable Terms --------------------------------------------------- Hylsa, a subsidiary of leading steelmaker Hylsamex SA, plans to prepay a bond worth around US$141 million due to mature in 2007. Hylsa said it will use medium-term bank financing, which has "more favorable terms," to fund the prepayment. Hylsamex, a unit of conglomerate Alfa SA (ALFA.MX), has taken advantage of a steel bonanza in the last few years, amid strong demand from China and the United States, to cut its debt by almost half in 2004. TV AZTECA: Internet Unit Reports $5.6M EBITDA in 2004 ----------------------------------------------------- Grupo Todito, S.A. de C.V. a leading Internet and telecommunications company for North American Spanish- speakers, announced Thursday its financial results for the fourth quarter and full year 2004. Full Year 2004 Results "Our sales increase in 2004 was lower than we expected, however, our portal and pre-paid businesses grew when many of our competitors in Mexico, such as Terra's ISP, went out of business or declared that they would soon shut operations, as AOL Latin America recently announced," commented Guillermo Salinas Pliego, Grupo Todito's Chairman. "The online advertising and dial-up ISP market grew slower than we anticipated and so our increase in marketing expenses in 2004 was not matched by an equivalent growth in sales. As a result, for the first time in five years Todito failed to generate double- digit year-on-year EBITDA growth." Full Year 2004 % 2004 (thousands) Change 2003 (thousands) Pesos* US$** Pesos US$ Sales Cash Sales 216,503 19,228 + 10% 196,136 17,419 Total Sales*** 237,209 21,066 + 16% 204,638 18,174 Operating Costs + Expenses Cash Operating Costs + Expenses 152,762 13,567 + 19% 128,504 11,412 Total Operating Costs + Expenses 173,468 15,406 + 27% 137,006 12,168 EBITDA 63,741 5,661 (6%) 67,632 6,006 Grupo Todito's Annual Financial Results are audited by PricewaterhouseCoopers, S.C. * Constant Pesos as of December 31, 2004. ** Conversion based on the exchange rate in effect as of December 31, 2004 of 11.26 pesos per US$1. *** Total Sales is advertising sales, plus pre-paid card sales (Todito Card), as well as revenue from the online sale of other content and services. Grupo Todito's Total Sales for the full year 2004 increased 16% to Ps. 237.2 million (US$ 21.0 million) from Ps. 204.6 million (US$ 18.1 million) in 2003. Cash Sales increased 10% to Ps. 216.5 million (US$ 19.2 million), representing 91% of Total Sales. Non-cash sales represented 9% of Total Sales in 2004 vs. 4% in 2003. Non-Cash Sales are generated by the Company's barter of on-line advertising for goods and services necessary to Grupo Todito's operations, including band-width, print promotion and other advertising services. Total Operating Costs and Expenses were Ps. 173.4 million (US$ 15.4 million), of which 88% -- Ps. 152.7 million (US$ 13.5 million) -- were cash. The remaining 12% -- Ps. 20.7 million (US$ 1.8 million) -- were expenses related to Grupo Todito's barter sales. Total Operating Costs and Expenses increased 27% due to an increase in Todito Card's ISP and Long Distance sales costs and Todito.com's online advertising sales commissions (associated, respectively, with increasing Todito Card sales and Todito.com's online advertising sales), as well as a 42% increase in Todito Card marketing expense. As a result, Grupo Todito's EBITDA for 2004 decreased 6% to Ps. 63.7 million (US$ 5.6 million), compared to Ps.67.6 million (US$ 6.0 million) in 2003. "In 2004 we spent a great deal more money on marketing with the goal of increasing Todito Card ISP sales. We were successful in taking market share from our competitors, including Terra and AOL, however, the ISP market as a whole did not grow as fast as we expected, resulting in a decrease in our dial-up EBITDA," said Tim Parsa, Grupo Todito's Chief Executive Officer. "We also launched three new Todito Card businesses in 2004 - long distance telephone service in Mexico and the U.S. and dial-up internet connection service in the U.S. These new projects have experienced satisfactory growth, but they also imply additional employees and marketing expenses that we did not have in 2003." Todito Card Sales Up 29% vs. 2003 "Todito Card sales in 2004 increased 29% to Ps. 99.2 million (US$ 8.8 million), from Ps. 76.9 million (US$ 6.8 million) in 2003. The internet boom is still on the horizon in Mexico," commented Eugenio Laris, Grupo Todito's Sales Director of Pre- paid Services. "Only one out of every ten houses in Mexico has a computer and only one in twenty has an internet connection. That will change over the next few years and Todito Card and Todito Max, our subscription Internet connection service, are well- positioned to address the imminent growth in demand." Active users of Todito Card's dial-up internet connection service grew 32% to 450,000 in 2004 from 339,000 in 2003. Todito Card's points of sale surpassed 35,000 in Mexico and the U.S., compared to 20,000 in 2003. Todito.com Online Advertising Sales Up 8% vs. 2003. Todito.com's online advertising sales increased 8% to Ps. 136.9 million (US$ 12.1 million) in 2004, from Ps. 126.2 million (US$ 11.2 million) in 2003. "Our online advertising sales growth has been moderate compared to previous years, but Grupo Todito's network of sites continues to increase its audience and to monetize that audience better than our competitors in Mexico," commented Adrian Gonzalez, Grupo Todito's Chief Operating Officer. "Although complementary, our portal and ISP businesses have grown to be very independent of each other. Both have tremendous potential in a young internet market with few strong competitors. Our challenge is to maximize the potential of both Todito Card and Todito.com in the coming years as internet use explodes in Mexico and among U.S. Hispanics." Fourth Quarter Results Grupo Todito's Total Sales for 4Q04 decreased 1% to Ps. 65.9 million (US$ 5.8 million) from Ps. 66.7 million (US$ 5.9 million) for the same period of 2003. The decrease in sales was associated with a decrease in Todito Card sales of 3% to Ps. 29.8 million (US$ 2.6 million) from Ps. 30.7 million (US$ 2.7 million) in 4Q03. This decrease in sales was due to the fact that in November of 2003 there was an extraordinary sale of Todito Cards to Elektra as part of an initiative to include a Todito Card in every computer sold by Elektra. This promotion was not renewed in 2005 by Elektra due to severe price competition among PC retailers in Mexico. Total Operating Costs and Expenses in 4Q04 were Ps. 47.4 million (US$ 4.2 million), of which 86% -- Ps. 40.6 million (US$ 3.6 million) -- were cash. The remaining 14% -- Ps. 6.7 million (US$ 0.6 million) -- were expenses related to Grupo Todito's barter sale of on-line advertising for goods and services. Total Operating Costs and Expenses increased 2% vs. 4Q03. As a result, Grupo Todito's EBITDA for 4Q04 decreased 6% to Ps. 18.6 million (US$ 1.6 million), compared to Ps. 19.8 million (US$ 1.7 million) for the same period of 2003. "Our operating expenses in the fourth quarter were lower than in the third quarter of 2004," commented Alejandro Garcia, Todito's Chief Financial Officer. "When our sales failed to meet our projections we reduced our marketing and other operating expenses." "Grupo Todito is one of a handful of internet companies that are still standing in the biggest internet market in Latin America," commented Tim Parsa. "Todito.com is a promising media business, with proven synergies with TV Azteca. Todito Card is one of two dial-up ISP's in Mexico and the leading pre-paid ISP in North America. Both of Grupo Todito's two principal business units will experience dramatic growth as the internet market in Mexico matures." % 4Q04 (thousands) Change 4Q03 (thousands) Pesos* US$** Pesos US$ Sales Cash Sales 59,241 5,261 (3%) 61,292 5,443 Total Sales*** 65,981 5,860 (1%) 66,792 5,932 Operating Costs + Expenses Cash Operating Costs + Expenses 40,668 3,612 (2%) 41,448 3,681 Total Operating Costs + Expenses 47,408 4,210 + 1% 46,948 4,169 EBITDA 18,573 1,649 (6%) 19,844 1,762 Grupo Todito's Annual Financial Results are audited by PricewaterhouseCoopers, S.C. * Constant Pesos as of December 31, 2004. ** Conversion based on the exchange rate in effect as of December 31, 2004 of 11.26 pesos per US$1. *** Total Sales is advertising sales, plus pre-paid sales (Todito Card), as well as revenue from the online sale of other content and services. With exception of historical information, the concepts discussed in this official notice are concepts on the future that involve risks and uncertainties that can cause results to differ substantially from the projected ones. The statements are based on the present expectations of the administration and are subject to uncertainties and variations in the circumstances. About Todito Grupo Todito, S.A. de C.V. is a leading Internet and telecommunications company for North American Spanish-speakers. It has two principal operating units, Todito.com (an Internet portal that generates revenue from the sale of online advertising and the sale of premium content and services) and Todito Card (a multi-services prepaid card for dial-up internet connection, long distance telephone service and the payment of online and offline content and services). Grupo Todito is jointly owned by Universidad CNCI, S.A. de C.V. (BMV: CNCIB) and TV Azteca, S.A. de C.V. (NYSE: TZA) (BMV: TVAZTCA). About TV Azteca The Company features news and sports, novelas (soap operas) and even Los Simpson (the Spanish-language version of The Simpsons). The Mexican TV broadcaster operates the Azteca 13 and Azteca 7 networks and owns and operates some 315 television stations throughout Mexico. It also owns Azteca America Network (a Spanish-language TV network in the US), 50% of Todito.com, (an Internet portal for Spanish speakers in North America), music company Azteca Music, soccer team Monarcas Morelia and 50% of mobile phone operator Unefon. Chairman Ricardo Salinas, the majority shareholder of the Company (59%), bought the two state- owned TV networks in 1993. CONTACT: Mr. Alejandro Garcia Finance Director Grupo Todito, S.A. de C.V. E-mail: agarcia@toditocorp.com Phone: (52)81.8221.2031 Fax: (52)81.8221.2091 PRESS INQUIRIES Mr. Tristan Canales Corporate Communications Director TV Azteca, S.A. de C.V. E-mail: tcanales@tvazteca.com.mx Phone: (52)55.1720.5786 Fax: (52)55.1720.1464 ===================== P U E R T O R I C O ===================== CENTENNIAL COMMUNICATIONS: Revenues Up 13% in Fiscal 3Q 2005 ------------------------------------------------------------ HIGHLIGHTS: - Fiscal third-quarter income from continuing operations of $0.04 per diluted share, compared to a loss of $0.14 per diluted share from continuing operations in the prior-year quarter - Fiscal third-quarter consolidated adjusted operating income from continuing operations of $90.9 million, up 16 percent year- over-year from $78.3 million - Fiscal third-quarter consolidated revenue from continuing operations of $221.8 million, up 13 percent year-over-year from $195.8 million - Consolidated adjusted operating income growth expected to exceed previously announced 7 to 12 percent range for fiscal 2005 Centennial Communications Corp. (NasdaqNM: CYCL) ("Centennial") reported Thursday income from continuing operations of $4.2 million, or $0.04 per diluted share, for the fiscal third quarter of 2005 as compared to a loss from continuing operations of $14.3 million, or $0.14 per diluted share, in the fiscal third quarter of 2004. This includes a $36.4 million pre-tax charge for accelerated depreciation on the Company's existing wireless network in Puerto Rico, partially offset by a $28.8 million income tax benefit related to the network depreciation charge and the reversal of a tax reserve. Consolidated adjusted operating income (AOI)(1) from continuing operations for the fiscal third quarter was $90.9 million, as compared to $78.3 million for the prior year quarter. "Centennial continues to build on its competitive advantage by locally tailoring the customer experience in a winning combination of attractive and growing markets," said Michael J. Small, Centennial's chief executive officer. "These financial results demonstrate our consistent ability to win with this strategy." Centennial reported fiscal third-quarter consolidated revenue from continuing operations of $221.8 million, which included $97.2 million from U.S. wireless and $124.6 million from Caribbean operations. Consolidated revenue from continuing operations grew 13 percent versus the fiscal third quarter of 2004. The Company ended the quarter with 1,162,700 subscribers, which compares to 1,023,500 for the year-ago quarter and 1,088,300 for the previous quarter ended November 30, 2004. "We remain encouraged by our track record of execution across all of our businesses and continue to reach significant milestones in our deleveraging progress," said Centennial chief financial officer Thomas J. Fitzpatrick. "We expect our strong operating momentum and balanced success to continue as we close our fiscal year." OTHER HIGHLIGHTS - On December 28, 2004, the Company completed the sale of its Puerto Rico cable television properties to an affiliate of Hicks, Muse, Tate & Furst Incorporated for approximately $155 million in cash. The net proceeds from the transaction will be used to fund ongoing capital requirements. - On January 28, 2005, the Company completed its redemption of $115 million aggregate principal amount of its $300 million outstanding 10-3/4 percent Senior Subordinated Notes due December 15, 2008. The Company also recently announced the redemption of an additional $40 million of its $185 million outstanding 10-3/4 percent Senior Subordinated Notes. The redemption is expected to occur on or about April 25, 2005 at a redemption price of 103.583 percent. - On February 10, 2005, the Company amended its senior secured credit facility, lowering the interest rate on term loan borrowings by 50 basis points through a reduction in the LIBOR spread from 2.75 percent to 2.25 percent. - On March 1, 2005, the Company entered into an interest rate swap agreement to hedge variable interest rate risk on $250 million of its $594 million of variable interest rate terms loans. The swap is effective as of March 31, 2005 for a two-year term at a fixed interest rate of 6.29 percent. CENTENNIAL SEGMENT HIGHLIGHTS U.S. Wireless Operations - Revenue was $97.2 million, a 6 percent increase from last year's third quarter. Retail revenue fell $0.6 million, a 1 percent year-over-year decrease. Roaming revenue increased 15 percent from the prior year quarter as a result of increased traffic from strong growth in GSM minutes. Despite recent growth, Centennial does not expect long-term growth in roaming revenue, and anticipates that roaming revenue will remain a small percentage of consolidated revenue in future periods. - AOI was $36.6 million, a 3 percent year-over-year decrease, representing an AOI margin of 38 percent. AOI was unfavorably impacted by increased equipment expense related to GSM handset upgrades, partially offset by strong growth in roaming and Universal Service Fund ("USF")revenue. - U.S. wireless ended the quarter with 544,400 subscribers, which compares to 548,900 for the year-ago quarter and 544,900 for the previous quarter ended November 30, 2004. Customer growth was flat during the quarter as Centennial continued to emphasize profitability in its U.S. wireless markets, with renewed subscriber growth expected from the launch of Grand Rapids and Lansing, MI. - Capital expenditures were $14.5 million for the fiscal third quarter as U.S. wireless continued to invest in GSM deployment in its Southeast footprint and to build out its new markets in Grand Rapids and Lansing, MI. Caribbean Wireless Operations - Revenue was $90.5 million, an increase of 16 percent from the prior-year third quarter, driven primarily by record subscriber growth. - Average revenue per user declined during the quarter primarily due to the continued impact of strong prepaid subscriber growth in the Dominican Republic. - AOI totaled $35.9 million, a 27 percent year-over-year increase, representing an AOI margin of 40 percent. AOI was favorably impacted by record subscriber growth and improved cost management during the fiscal third quarter. - Caribbean wireless ended the quarter with 618,300 subscribers, which compares to 474,600 for the prior year quarter and to 543,400 for the previous quarter ended November 30, 2004. Customer growth benefited from steady postpaid subscriber growth in Puerto Rico combined with record prepaid subscriber growth in the Dominican Republic during the period. - Capital expenditures were $17.3 million for the fiscal third quarter as Caribbean wireless continued to invest in the replacement and upgrade of its Puerto Rico wireless network. Caribbean Broadband Operations - Revenue was $37.2 million, an increase of 26 percent year- over-year, driven by strong access line growth and inter-carrier compensation revenue. - AOI was $18.4 million, a 52 percent year-over-year increase, representing an AOI margin of 50 percent. AOI benefited from approximately $2.5 million of inter-carrier compensation revenue related to prior years. - Switched access lines totaled approximately 59,200 at the end of the fiscal third quarter, an increase of 11,100 lines, or 23 percent from the prior year quarter. Dedicated access line equivalents were 234,900 at the end of the fiscal third quarter, a 14 percent year-over-year increase. - Wholesale termination revenue was $4.0 million, a 35 percent year-over-year decrease, primarily due to a decrease in southbound terminating traffic to the Dominican Republic. - Capital expenditures were $4.8 million for the fiscal third quarter. REVISED FISCAL 2005 OUTLOOK - The Company projects growth in consolidated AOI from continuing operations to exceed its previously announced 7 to 12 percent range for fiscal year 2005 over fiscal year 2004, due to stronger than expected roaming revenue, non-recurring USF revenue related to a prior year of $5.5 million in U.S. wireless and $3.6 million of non-recurring items related to inter-carrier compensation adjustments in Caribbean broadband. Consolidated AOI from continuing operations for fiscal year 2004 was $315.5 million. The Company has not included a reconciliation of projected AOI because projections for some components of this reconciliation are not possible to forecast at this time. - Centennial announced a network replacement and upgrade during the fiscal third quarter primarily impacting its wireless network in Puerto Rico. The upgrade, which is expected to increase capital expenditures by $15 million in fiscal 2005, will improve the network's performance and quality while also reducing future operating expenses and capital expenditures. As a result of this upgrade, the Company accelerated the depreciation of its existing wireless network and recorded a depreciation charge of $36.4 million during the quarter. The Company expects an additional $35 to $40 million of depreciation expense related to the upgrade during the fiscal fourth quarter. CHANGE IN ACCOUNTING ESTIMATE - In consideration of the recently announced Puerto Rico network replacement and upgrade and as a result of industry, competitive and technological developments, Centennial undertook a detailed reassessment of the useful lives of its U.S. and Caribbean wireless network equipment during the fiscal third quarter. As a result of this evaluation, the Company reduced the useful lives of its U.S. GSM and Caribbean wireless network equipment from ten years to seven years. The useful lives of its U.S. TDMA network equipment have been reduced from ten years to four years. As a result of these changes, The Company expects an increase in depreciation expense of $4.5 to $5.5 million for the 2005 fiscal year. DEFINITIONS AND RECONCILIATION (1) Adjusted operating income is defined as net income (loss) before income (loss) from discontinued operations, minority interest in income of subsidiaries, income tax benefit (expense), other (expense) income, loss on extinguishment of debt, interest expense-net, income from equity investments, (gain) loss on disposition of assets, and depreciation and amortization. Please refer to the schedule below for a reconciliation of consolidated net income (loss) to AOI and the Investor Relations website at www.ir.centennialwireless.com for a discussion and reconciliation of this and other non-GAAP financial measures. About Centennial Communications Centennial Communications (NasdaqNM: CYCL), based in Wall, NJ, is a leading provider of regional wireless and integrated communications services in the United States and the Caribbean with over 1.1 million wireless subscribers. The U.S. business owns and operates wireless networks in the Midwest and Southeast covering parts of six states. Centennial's Caribbean business owns and operates wireless networks in Puerto Rico, the Dominican Republic and the U.S. Virgin Islands and provides facilities-based integrated voice, data and Internet solutions. Welsh, Carson Anderson & Stowe and an affiliate of the Blackstone Group are controlling shareholders of Centennial. To view financial statements: http://bankrupt.com/misc/Centennial.htm CONTACT: Mr. Steve E. Kunszabo Director, Investor Relations Phone: 732-556-2220 Web sites http://www.centennialwireless.com/ ================================= T R I N I D A D & T O B A G O ================================= BWIA: Operational Difficulties Delay Annual Report Filing --------------------------------------------------------- The Stock Exchange has granted ailing national airline BWIA West Indies Airways an extension to file its annual report until May 30. BWIA had earlier sent a statement to the Stock Exchange, saying: "Operational difficulties experienced by BWIA over the Christmas period and extending to year-end have resulted in an unanticipated delay in the finalizing of the audit of the financial statements." Dionne Ligoure, corporate communications manager at BWIA, said the accounts and other related departments had been calculating "poor service costs" regarding lost baggage and delays incurred over the Christmas holidays. "We are still in the process of calculating and finalizing those costs. We have to check and recheck those costs," Mr. Ligoure said. "Things are heavily on stream. Everything is basically prepared." This is the third year in a row that the airline has missed the deadline. To see important facts about BWIA: http://bankrupt.com/misc/BWIA.pdf CONTACT: BRITISH WEST INDIES AIRWAYS (BWIA) Phone: + 868 627 2942 E-mail: mail@bwee.com Home Page: http://www.bwee.com BWIA: Government Assigns New Restructuring Task Force ----------------------------------------------------- The government has appointed a new private sector-led task force that will help restructure BWIA as well as examine possible options to enhance air travel, the Trinidad Express suggests. The five-member team consists of businessman Arthur Lok Jack (chairman), accountant William Lucie-Smith, airline pilot Richard Kelshall, human resources expert Shafeek Sultan-Khan and Vision 2020 Sub-Committee chairman Dr Terrence Farrell. According to a government source, the task force was appointed as a "matter of urgency" to address both the state of loss- making BWIA and to address transportation issues facing the country. The members may take several weeks to complete their assessment of the airline and the state of air travel in Trinidad. The government has not given them a specific timeframe to complete the exercise. The task force commences work as BWIA has posted another multi- million dollar loss for 2004. Earlier, the government appointed two Cabinet Sub-Committees to find a solution to the financial woes of the national airline. ================= V E N E Z U E L A ================= PDVSA: Misses Target Date to Complete 2003 SEC Report ----------------------------------------------------- State oil company Petroleos de Venezuela (PdVSA) missed its target to complete a 2003 financial report for the U.S. Securities and Exchange Commission by the end of March. "We're finishing the 2003 report," Dow Jones Newswires quoted PdVSA board member, Eulogio Delpino, as saying. The KPMG accounting firm is auditing PdVSA's results for 2003 and 2004. The 2003 report was originally due a year ago. The Company has blamed the delay to the December 2002-January 2003 oil strike that disrupted its finance department. PDVSA fired more than 18,000 employees in 2003 to break the strike, which was aimed at pushing President Hugo Chavez from office. Among those fired were employees from the Company's financial department. PDVSA is required to present annual reports to the SEC due to its holdings in the US and outstanding debt. The last time PDVSA filed its results with the SEC was in October 2003, after asking for two extensions on its 2002 results. PDVSA: Subcommittee Continues Probe With More Ammunition -------------------------------------------------------- Trouble is brewing for former Citgo president Luis Marin as the subcommittee investigating his tenure at PDVSA's U.S. oil refining and distribution network presents more proof pointing to alleged mismanagement. A five-member team from the National Assembly, headed by deputy Jesus Garcia Rojas, went to Citgo headquarters in Houston last March to oversee the questioning of some of the Company's present and former employees. The subcommittee findings focus on three management decisions questioned by Garcia Rojas. El Universal reports that these are: Citgo's move from Tulsa to Houston, its recent debt restructuring and issues of lavish spending by some of its officers. Move from Tulsa to Houston Deputy Rojas claims that Mr. Marin had ignored three studies advising against the Company's move to Houston. Budget for the transfer amounted to US$90 million, US$32 million of which went to carrier Cendant. Even the decision to hire Cendant was plagued with irregularities, says Mr. Rojas, since it had not met the minimal requirements for the transport tender. He adds that Citgo Vice- President Antonio Rivero had disregarded corporate policy in imposing Cendant's bid. Debt Restructuring Citgo's contentious debt restructuring, aimed at reducing debt from US$550 million to US$ 250 million, also came under fire as Finance Managers Jason Schmith, Jeff Finch, and Carlos Manzano showed that it had placed Citgo and PDVSA at a disadvantage. The officers contend that the Citgo would only have spent USD 27 million, excluding service fees, if it had waited for the first call for the original issuance of senior notes on February 2007. The premature buyback last October instead cost the Company US% 140 million. Opposition to the refinancing resulted in the firing of former treasurer Acacio Rodriguez and Finance Vice-President Eddie Humphrey. Other Irregularities The investigation also uncovered irregularities such as numerous air trips from the U.S. to Rivero and Marin's hometown in Venezuela, irregular contracting and payment to third parties. Mr. Rojas cited an incident where Citgo directors contracted a substantial seven-year transport deal for Citgo's asphalt output without bidding. The deal was made allegedly made inside a US nightclub ad the bill amounted to US$39,000 that night. ROYAL SHELL: Keen on 30% Percent Mariscal Sucre Gas Project ----------------------------------------------------------- Royal Dutch/Shell Group remains interested in holding a 30 percent stake in the revamped Mariscal Sucre natural gas project in Venezuela. Dow Jones Newswires reports that the PDVSA is reviving the projects this year by dividing it into separate development blocks, one for natural gal liquids and another solely for natural gas. The Venezuelan government had agreed to undertake the US$2.7 billion project in 2003 with Shell and Japanese industrial giant Mitsubishi but the deal failed to progress. While Sean Rooney, Shell's president in Venezuela, sees a 30 percent Shell and 8 percent Mitsubishi participation in the project, PDVSA has also opened its doors to other companies such as Petrobas. All parties however are waiting for the Chavez government to finalize the timetable for development and the project's partnership structure. *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and Lucilo Junior M. Pinili, Editors. Copyright 2005. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is $575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *