/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/050412.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 Tuesday, April 12, 2005, Vol. 6, Issue 71 Headlines A R G E N T I N A ALIMENTOS FARGO: Creditor Gets Clearance to Seize Assets CORDERO HNOS: Gets Court Approval for Reorganization DAMCO S.R.L.: Verification Deadline Approaches EDENOR/EDESUR: Yet to Confirm Participation in April 20 Hearing EGUIBAR HERMANOS: Enters Bankruptcy on Court Orders FRUGLACE S.A.I.C.I.F.A.: Begins Liquidation Process JOSE FERRARINI: Asks Court to Reorganize MARTORELL Y CIA: Proceeds With Liquidation METROVIAS: Fitch Maintains `Category 4' Classification on Shares NEOFONE DIGITAL: Seeks Reorganization Approval OCA: Successfully Restructures Debt PETROLERA DEL CONOSUR: Sale Attracts Four Bids PROMOTORA DE COMUNICACIONES: Court Grants Reorganization Plea ROMULO RUFFINI: Court OKs Creditor's Bankruptcy Call SOF 2100: Court Favors Creditor's Involuntary Bankruptcy Motion SUDMERI CONSTRUCTORA: Court Approves Concurso Motion B A R B A D O S COURTS: KPMG to Name Sale Advisor Soon B E R M U D A ALLINGTON LTD.: Proceeds to Wind-Up Operations SILVER CLOUD: Names Robin Mayor as Liquidator B O L I V I A * BOLIVIA: IMF Allows Additional $14.5M Under SBA B R A Z I L BANCO DO BRASIL: S&P Affirms Ratings BRASKEM: Schedules Dividend Payment CESP: Government to Seek Board Approval on Capital Increase COPEL: Shareholders to Vote on Dividend Distribution CSN: Acquires 100% Stake in ERSA for BRL100Mln CSN: Shares Decline on Announcement to Buy ERSA ROYAL AHOLD: Completes Brazilian Divestment Plan UNIBANCO: Pays Interest on Capital Stock C H I L E AES GENER: Still Mulling LNG Options C O L O M B I A ECOPETROL: No Privatization Plans Says President Uribe J A M A I C A AIR JAMAICA: Resumes Eastern Caribbean Service KAISER ALUMINUM: Secures Creditor Support for Liquidating Plans M E X I C O PEMEX: Issues $44.4M Worth of Bonds on the BMV PROVO INTERNATIONAL: Will Not Appeal AMEX Decision TFM: S&P Affirms KCS Ratings, Upgrades TFM VITRO: Shuffling Management In Light Of President's Retirement P A N A M A ICA PANAMA: To Issue $150M Worth of Bonds T R I N I D A D & T O B A G O BWIA: Govt's $35.6M Bailout Package Follows Flight Suspensions V E N E Z U E L A PDVSA: VEC Wants Citgo Stake * VENEZUELA: Closes Successful $1.6B Bond Issue - - - - - - - - ================= A R G E N T I N A ================= ALIMENTOS FARGO: Creditor Gets Clearance to Seize Assets -------------------------------------------------------- An unnamed creditor of bakery chain Compania de Alimentos Fargo can now begin seizing company assets to sell in a public auction, reports Dow Jones Newswires. In a filing with the local stock exchange, Fargo stated that since a March 18 court ordered suspension of assets had passed, "the creditor would be enabled to proceed with the process of the execution and sale in a public auction of the company's principal assets." But Fargo said "it is making all efforts at its reach, despite the scarce resources and limited payment capacity it faces, to try to obtain a waiting period with the idea of being able to reach some kind of agreement to avoid the sale of its principal assets." Fargo, which has ARS496.6 million in debt verified by the court, is planning to restart talks with its main creditors after a first round of negotiations fizzled last year. CORDERO HNOS: Gets Court Approval for Reorganization ---------------------------------------------------- Cordero Hnos S.R.L. will begin reorganization following the approval of its petition by Court No. 2 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. Local accounting firm "Estudio Romero, Crubiller, Tores" will oversee the reorganization proceedings as the court-appointed trustee. The firm closed the verification of creditors' claims on March 30. Verified claims will be presented as individual reports on May 13. The firm 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. The report will be presented in court on June 28. An Informative Assembly, the final stage of a reorganization where the settlement proposal is presented to the company's creditors for approval, is scheduled on November 7. CONTACT: "Estudio Romero, Crubiller, Tores" Trustee Jujuy 167 San Juan DAMCO S.R.L.: Verification Deadline Approaches ---------------------------------------------- The verification of claims for the Damco S.R.L. bankruptcy case will end on May 16 according to local news source Infobae. Creditors with claims against the bankrupt company must present proof of the liabilities to Mr. Leonardo Novick, the court- appointed trustee, before the deadline. Court No. 6 of Buenos Aires' civil and commercial tribunal handles the company's case with the assistance of Clerk No. 12. The bankruptcy will conclude with the sale of the Company's assets to pay its creditors. CONTACT: Mr. Leonardo Novick, Trustee Libertad 359 Buenos Aires EDENOR/EDESUR: Yet to Confirm Participation in April 20 Hearing --------------------------------------------------------------- Utility companies Edenor S.A., a unit of Electricite de France (EdF), and Edesur, a unit of Chile's Enersis, are yet to confirm their participation in the public hearing scheduled by the government for April 20. In order for the companies to be present at the assembly, they will have to suspend the demands presented at the International Centre for the Settlement of Investment Disputes (ICSID) against Argentina for the pesification and freezing of the public rates. Argentina has been at odds with private companies that run much of its public utilities since the state converted rates into devalued pesos and froze them in January 2001 in a bid to hold off inflation amid the nation's economic breakdown. Edenor posted net losses of ARS89.9 million (US$30.8mn) in 2004 due to the devaluation of the peso and subsequent rates freeze. As of December 31, 2004, Edenor had ARS1.53 billion of net equity. CONTACT: EDENOR S.A. Azopardo Building Azopardo 1025 (1107) Capital Federal Phone: (54-11) 4346-5000 Fax: (54-11) 4346-5300 E-mail: to ofitel@edenor.com.ar Web Site: http://www.edenor.com.ar EDESUR S.A. San Jos, 140 Buenos Aires Tel: 4383-0200 4381-1313 EGUIBAR HERMANOS: Enters Bankruptcy on Court Orders --------------------------------------------------- Eguibar Hermanos S.R.L. enters bankruptcy protection after Court No. 8 of Buenos Aires' civil and commercial tribunal, with the assistance of Clerk No. 15, ordered the Company's liquidation. The order effectively transfers control of the company's assets to a court-appointed trustee who will supervise the liquidation proceedings. Infobae reports that the court selected Ms. Laura Garcia as trustee. Ms. Garcia 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: Ms. Laura Garcia, Trustee Simbron 3537 Buenos Aires FRUGLACE S.A.I.C.I.F.A.: Begins Liquidation Process --------------------------------------------------- Fruglace S.A.I.C.I.F.A. of Buenos Aires will begin liquidating its assets after Court No. 17 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 Maria Cristina Agrelo. The trustee will review claims forwarded by the Company's creditors until May 13. After claims verification, the trustee will submit the individual reports for court approval on June 28. The general report will follow on August 24. Clerk No. 34 assists the court on this case. CONTACT: Ms. Maria Cristina Agrelo, Trustee Viamonte 1365 Buenos Aires JOSE FERRARINI: Asks Court to Reorganize ---------------------------------------- Jose Ferrarini S.A.C.I., a company operating in Buenos Aires, has requested for reorganization after failing to pay its liabilities. 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. 7 of Buenos Aires' civil and commercial tribunal. Clerk No. 13 assists the court with the proceedings. CONTACT: Jose Ferrarini S.A.C.I. La Plata 2036 Buenos Aires MARTORELL Y CIA: Proceeds With Liquidation ------------------------------------------ Mr. Martin Battaglia successfully sought for the bankruptcy of Martorell y Cia. S.A. after Court No. 3 of Buenos Aires' civil and commercial tribunal declared the Company "Quiebra," reports Clarin. The creditor sought for the Company's liquidation after the latter failed to pay debts amounting to US$35,857.86. The city's Clerk No. 6 assists the court on the case that will close with the sale of all of its assets. CONTACT: Martorell y Cia. S.A. 25 de Mayo 347 Buenos Aires METROVIAS: Fitch Maintains `Category 4' Classification on Shares ---------------------------------------------------------------- The Argentine arm of Fitch Ratings is maintaining its 'Category 4' classification on the ordinary shares of Buenos Aires subway operator Metrovias, reports Business News Americas. The agency's decision reflects the uncertainty associated with renegotiating Metrovias' contract. The Company, a division of local infrastructure and services Company Clisa, is currently renegotiating its concession contract with the government. An increase in passenger traffic helped Metrovias narrow net loss in 2004 to ARS267,626 (US$92,600) from ARS1.15 million the year before. NEOFONE DIGITAL: Seeks Reorganization Approval ---------------------------------------------- Court No. 40 of Buenos Aires' civil and commercial tribunal is currently reviewing the merits of the reorganization petition filed by Neofone Digital S.R.L., reports Clarin. The reorganization petition, if granted by the court, will allow the Company to negotiate a settlement with its creditors in order to avoid a straight liquidation. The city's Clerk No. 40 assists the court on this case. CONTACT: Neofone Digital S.R.L. Esmeralda 320 Buenos Aires OCA: Successfully Restructures Debt ----------------------------------- Private mail company OCA prepares to reclaim its share in the Argentine market as it approaches the end of its restructuring. Investment fund Advent, which took control of the 47 year-old firm in February last year, plans to sink an estimated US$30 million to rehabilitate the Company's operations within the next two years. Aiming to increase income by US$300 million per year, OCA will use a third of the new funds to upgrade its technology while the remaining amount is budgeted for new delivery equipment. Creditors took control of OCA in 2003 in exchange for almost US$230 million in debts. Advent has spent almost 12 months to renegotiate this debt and nurse the Company in preparation for its re-launch. PETROLERA DEL CONOSUR: Sale Attracts Four Bids ---------------------------------------------- Four firms have submitted offers to buy Petrolera del Conosur, the money-losing Argentine subsidiary of Uruguay's state oil company Ancap, reports Business News Americas. The offers came from Venezuela's state oil firm PDVSA, which partnered with Argentina's newly created state oil company Enarsa; Brazil's federal energy company Petrobras (NYSE: PBR); Argentina's Petroqu《ica Cuyo; and another firm bidding through investment bank JP Morgan. According to the report, Ancap President Daniel Martinez and Uruguayan government authorities met with the potential buyers on Wednesday in Buenos Aires. Petrolera del Conosur operates 172 service stations under the Sol Petroleo brand. It registered net losses of ARS78.8 million (US$27 million) in 2004 because it pays more for fuel than it receives at the pump. The company is reportedly losing US$1.7 million a month. PROMOTORA DE COMUNICACIONES: Court Grants Reorganization Plea ------------------------------------------------------------- Promotora de Comunicaciones Colonia S.A. successfully petitioned for reorganization after Court No. 1 of Buenos Aires' civil and commercial tribunal issued a resolution opening the Company's insolvency proceedings. Under insolvency protection, the Company will continue to manage its assets subject to certain conditions imposed by Argentine law and the oversight of a court-appointed trustee. Infobae relates that Ms. Magdalena de la Quintana will serve as trustee during the course of the reorganization. The trustee will be accepting creditors' proofs of claims for verification until May 13. After verifications, the trustee will prepare the individual reports and submit it in court on June 27. She will also present a general report for court review on August 22. The Company will endorse the settlement proposal, drafted from the submitted claims, for approval by the creditors during the informative assembly scheduled on February 16 next year. CONTACT: Ms. Magdalena de la Quintana, Trustee Cerrito 1136 Buenos Aires ROMULO RUFFINI: Court OKs Creditor's Bankruptcy Call ---------------------------------------------------- Romulo Ruffini y Cia. SAIC entered bankruptcy after Court No. 17 of Buenos Aires' civil and commercial tribunal approved a bankruptcy motion filed by Aluar S.A., reports Clarin. The Company's failure to pay US$244,390.20 in debt prompted the creditor to file the petition. The Company's assets will be liquidated at the end of the bankruptcy process to repay creditors. Payments will be based on the results of the verification process. CONTACT: Romulo Ruffini y Cia. SAIC Besares 1670 San Fernando Provincia de Buenos Aires SOF 2100: Court Favors Creditor's Involuntary Bankruptcy Motion --------------------------------------------------------------- Court No. 4 of Buenos Aires' civil and commercial tribunal declared Sof 2100 S.R.L. bankrupt, says Clarin. The ruling comes in approval of the petition filed by the Company's creditor, Ms. Maria Ines Agrasor, for nonpayment of US$30,311.88 in debt. Clerk No. 7 assists the court on the case that will conclude with the sale of the Company's assets. Proceeds from the sale will be used to repay the Company's debts. CONTACT: Sof 2100 S.R.L. Cuba 4710 Buenos Aires SUDMERI CONSTRUCTORA: Court Approves Concurso Motion ---------------------------------------------------- Court No. 6 of Buenos Aires' civil and commercial tribunal approved a petition for reorganization filed by Sudmeri Constructora S.A., according to a report from Argentine daily Clarin. The construction company reported liabilities totaling US$21,500.46 in its court filing. The city's Clerk No. 12 assists the court on the case. CONTACT: Sudmeri Constructora S.A. Av. Juan Bautista Alberdi 6470 Buenos Aires =============== B A R B A D O S =============== COURTS: KPMG to Name Sale Advisor Soon -------------------------------------- KPMG, the administrator to collapsed U.K-based furniture retailer Courts PLC, is close to appointing a bank that will oversee the sale of the Company's operations in the Caribbean. Courts' Caribbean arm stretches from St Lucia to Barbados. The parent went into administration in November last year after it failed to persuade its creditor banks to extend its GBP280 million credit lines. Problems at Courts' UK division as well as the impact of Hurricane Ivan on its Caribbean arm contributed to the company's downfall. CONTACT: Mailing Address: Courts Barbados Ltd P.O. Box 689C Bridgetown Barbados Registered Offices and Head Office: Courts Barbados Ltd. St. George Street Bridgetown St. Michael Head Office Telephone & Fax: Tel: +(246)-431-6850 Fax: +(246)-429-5445 ============= B E R M U D A ============= ALLINGTON LTD.: Proceeds to Wind-Up Operations ---------------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 And IN THE MATTER OF Allington Ltd. The Members of Allington Ltd., acting by written consent without a meeting on April 1 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 inform that: - Creditors of Allington Ltd., which is being voluntarily wound up, are required, on or before April 22, 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(s) of Allington Ltd. will be held at the offices of Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda on April 22, 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, Trustee Clarendon House Church Street Hamilton, Bermuda SILVER CLOUD: Names Robin Mayor as Liquidator --------------------------------------------- IN THE MATTER OF: The Companies Act 1981 And IN THE MATTER OF Silver Cloud Ltd. The Member of Silver Cloud Ltd., acting by written consent without a meeting on 6th April, 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 Silver Cloud Ltd., which is being voluntarily wound up, are required, on or before April 22, 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 Silver Cloud Ltd. will be held at the offices of Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda on May 13, 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, Liquidator Clarendon House Church Street Hamilton, Bermuda ============= B O L I V I A ============= * BOLIVIA: IMF Allows Additional $14.5M Under SBA ------------------------------------------------- The Executive Board of the International Monetary Fund (IMF) completed Friday the fifth review of Bolivia's performance under a 12-month, SDR 85.75 million (about US$129.1 million) Stand-By Arrangement that was originally approved on April 2, 2003 and later augmented and extended. This decision enables the release of SDR 9.66 million (about US$14.5 million) to Bolivia, bringing total disbursements under the arrangement to SDR 111.5 million (about US$167.9 million). In completing the review, the Executive Board approved Bolivia's request for waivers for the nonobservance of two performance criteria, related to the central bank net credit to the nonfinancial public sector; and to the law on the tax code procedures. In addition, the Executive Board approved an extension of the Stand-By Arrangement by about 12 months to March 31, 2006, and augmented access to Fund resources by SDR 42.86 million (about US$64.5 million) to support the government's 2005 economic policies. Following the Executive Board's discussion on Bolivia, Ms. Anne O. Krueger, First Deputy Managing Director and Acting Chair, said: "Macroeconomic developments have been positive in 2004, in part reflecting the favorable global environment. Led by exports, economic activity has picked up and the current account surplus has been high. Inflation has increased, but remains well in single digits. Following deposit losses in the context of the introduction of the financial transactions tax, the financial situation has stabilized, and high levels of liquidity have allowed the authorities to place more securities in local currency and at longer maturities. "The authorities aim to reduce the fiscal deficit after grants, and to limit nonconcessional financing. This will be achieved by already-adopted fuel price increases, higher revenues related to gas exports, and the full year impact of the financial transactions tax. Cuts in nonpriority spending will allow the initiation of high priority road projects. The government has expressed its willingness to take contingency measures, should the need arise, to ensure that 2005 fiscal targets are met. "Monetary policy will aim to strengthen the international reserve position further, while gradually introducing greater flexibility to the exchange rate over the medium term. The program targets enhancement of debt management practices and the introduction of a two-way foreign exchange auction in 2005. "Measures are being taken to reduce risks in the still-fragile and highly dollarized financial system. These include the gradual phase-in of additional loan provisioning; increases in reserve requirements on foreign currency deposits; and the preparation of a law on a deposit insurance scheme, which will be submitted to Congress later in the year. "Maintaining a general framework conducive to foreign investment, and in particular the passage of a viable hydrocarbons bill, will be critical to attaining medium-term debt sustainability. The authorities are encouraged to continue to reach out to Congress to foster greater consensus on a hydrocarbons law that balances the call for greater taxation on hydrocarbons against the need to increase private investment in the sector. "Looking forward, reaching a broad political and social consensus on policies to support growth and poverty reduction, including through the efficient development of Bolivia's rich hydrocarbons resources, is urgently needed to facilitate the development of a medium-term program that could form the basis for a revised Poverty Reduction Strategy Paper and a new three- year arrangement with the Fund as soon as possible," Ms. Krueger stated. CONTACT: IMF - External Relations Department Public Affairs: Phone: 202-623-7300 Fax: 202-623-6278 Media Relations: Phone: 202-623-7100 Fax: 202-623-6772 =========== B R A Z I L =========== BANCO DO BRASIL: S&P Affirms Ratings ------------------------------------ Standard & Poor's Ratings Services affirmed its 'BB-/B' foreign currency and 'BB' local currency counterparty credit ratings on Banco do Brasil S.A. The outlook is stable. The local currency rating on Banco do Brasil S.A. reflects the direct exposure to sovereign credit risk in the form of marketable securities; Standard & Poor's assessment of high economic risks within the Brazilian banking industry; as well as a still-weak intrinsic quality of the bank's capital base (although this has been improving consistently). On the positive side, the rating incorporates the firm commitment and support demonstrated by the Federative Republic of Brazil; the competitiveness by Banco do Brasil in private sector-related operations while keeping its public-sector mission; and by its strong franchise and extensive branch network. "The ratings on Banco do Brasil incorporate the bank's higher- than-average exposure to sovereign risk through its open-market and public sector securities portfolio," said Standard & Poor's credit analyst Daniel Araujo. In the case of Banco do Brasil, this reached approximately 4.9x its equity in December 2004, and is expected to remain at similar levels in the near term. This high level of government securities is partly explained by the bank's past restructuring processes, whereby it received federal government securities as part of the negotiation. The Brazilian government's firm commitment to Banco do Brasil, and demonstrated support in recent years, are major positive factors in the ratings. Banco do Brasil is the largest bank in Brazil, with ample access to relatively cheap and stable funding through its extensive distribution network of approximately 3,700 branches. The bank's public-sector role involves promoting banking access in remote areas of the country and servicing the agricultural sector. The ratings and outlook on the long-term counterparty credit rating on Banco do Brasil mirror those on the Federative Republic of Brazil. At current levels, both the foreign currency credit ratings and local currency credit ratings on the bank should move in tandem with those on the sovereign. BRASKEM: Schedules Dividend Payment ----------------------------------- Braskem S.A. ("Braskem"), complementing previously disclosed information through a material fact published on December 17, 2004, and a Notice to Shareholders published on January 03, 2005, informs its shareholders that during the Ordinary General and the Extraordinary Shareholders Meeting, both held on March 31, 2005, the proposals for the payment of interest earned by the company's capital, as well as dividends referring to fiscal year 2004 were ratified and approved, as detailed to whit: PAYMENT OF DIVIDENDS OVER THE COMPANY'S CAPITAL As it has been already informed to the Shareholders during meetings held on December 14, 2004 and December 31, 2004, the Administrative Council and the Board of Directors sanctioned the payment of R$170,000,000.00 (one hundred and seventy million reais) as interest to be paid over the company's capital, determined on the base date of December 31, 2004, payable to Braskem's shareholders, adding up to said amount the priority and mandatory dividends payable for fiscal year 2004, pursuant Law no. 9.249/95 and paragraph 6 of article 44 of the Company By-Laws, to whit: a) R$136,023,953.75 payable to the holders of Class "A" and "B" preferred shares and to the holders of American Depositary Receipts ("ADRs"), which is equipollent to the gross amount of R$2.255638 per each block of 1,000 class "A" preferred shares; and b) R$33,976,046.25 payable to the holders of common shares, which is equipollent to the gross amount of R$1.124475 for each block of 1,000 common shares. The credit as defined by Braskem's accounting records was made in an individualized manner to each shareholder on December 31, 2004, predicated on the latter's holdings on that date. As decided by the aforementioned Ordinary General Shareholders Meeting, the payment shall begin as of April 12, 2005, based on the latter's holdings on December 31, 2004. It so being that the shares traded at the stock exchanges are already being traded net of this interest over the company's capital ever since January 03, 2005, as disclosed previously, the latter date being also considered as the "Brazilian Record Date" to tend to the obligations undertaken as result of the ADR program kept by Braskem in the United States of America; Pursuant to law, and as disclosed previously and informed by the posting agent for the shares issued by Braskem - Banco Itau S.A, by means of a notice sent to the shareholders which contains information regarding the aforementioned credits and the disbursements, the payment of interest shall be accomplished according to the net value, net of the 15% income tax withheld, pursuant Law no. 9.249/95, except for shareholders, legal entities proven exempt or immune from having to pay said income tax, pursuant Law no. 9.532/97, as well as public or closed complementary pension companies, insurance companies or programmed pension fund administrating companies that have joined the Special Taxation Regime envisaged in MP no. 2.222/01 and in Law no. 10.431/02; Shareholders resident or domiciled in countries not levying income tax, or where the maximum income tax rate is less than 20% (twenty percent), referred to by art. 24 of Law 9.430/96, are subject to the assessment of income tax to be withheld at the rate of 25% (twenty-five percent). DIVIDEND DISTRIBUTION The aforementioned Shareholders meeting has also approved the distribution of dividends referring to fiscal year 2004 in the amount of R$34,178,097.63 (thirty-four million, one hundred and seventy-eight thousand, ninety-seven reais and sixty-three cents), payable to the holders of common shares, which corresponds to the gross amount of R$1.131163 (one real, thirteen cents and a fraction) for each block of one thousand common shares held on that particular date and not kept in the treasury so as to comply with the provisions of the first part of sub-item "c" of art. 9, and sub-item "a" of paragraph 3 of art. 44 of the Company By-Laws, without withholding income tax pursuant the laws in effect. As per approval, the payment shall begin as of April 12, 2005. As of April 01, 2005, any trading regarding common shares in Brazilian stock exchanges is being accomplished "ex dividends". Banco Itau S.A. shall remain at the disposal of Braskem's Shareholders to clarify whatever doubts they may have at the Shareholders Service Venues set up within the branch offices located at the addresses infra: - 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. CESP: Government to Seek Board Approval on Capital Increase ----------------------------------------------------------- The Sao Paulo state government will seek approval from the board of generator CESP on its plan to increase by the end of the month the Company's capital by as much as BRL400 million (US$153 million), Business News Americas reports. The capital increase, according to Sao Paulo state governor Geraldo Alckmin, involves the transfer of the government's shares in power companies EMAE and CTEEP to CESP. The government, however, noted it will retain a controlling stake in both EMAE and CTEEP. The capital increase is designed to allow CESP to restructure part of its BRL11-billion debt. Although national development bank BNDES has reportedly declined to participate in the capital increase plan by capitalizing part of CESP's debt into shares, Sao Paulo state authorities continue to negotiate with the federal government. CESP owes BNDES some BRL3 billion. CONTACT: Companhia Energetica De Sao Paulo (CESP) Rua da ConsolaO o, 1.875 CEP 01301 -100 S o Paulo, Brazil Phone: +55-11-234-6322 Fax: +55-11-287-0871 Home Page: http://www.CESP.com.br/ Contact: Mauro G. Jardim Arce, Chairman Ruy M. Altenfelder Silva, Vice Chairman Vicente Kazuhiro Okazaki, Finance Director COPEL: Shareholders to Vote on Dividend Distribution ---------------------------------------------------- Ricardo Portugal Alves, Head of Market Relations for Companhia Paranaense de Energia (Copel) informed the New York Stock Exchange regarding the Company's 2004 interest on its own capital distribution. The letter, dated April 7, 2005 advises that COPEL's Board of Directors, in a meeting held March 22, 2005, approved a distribution of the Company's 2004 interest on its own capital distribution, in lieu of a dividend distribution. The proposal, subject to shareholder approval, will be presented and voted on at the Company's General Shareholders Meeting, scheduled for April 25th, 2005. Following are the details: Brazilian Record Date: April 25th, 2005 Brazilian Ex-Date: April 26th, 2005 R$ 0.33396 gross per one thousand common shares R$ 1.27167 per one thousand preferred class "A" and R$ 0.36743 gross per one thousand preferred class "B" (underlying share for NYSE-listed ADRs) Income Tax Withholding Rate: 15% Payment day: up to 60 days after the GSM CONTACT: Companhia Paranaense de Energia (COPEL) Rua Coronel Dulcidio 800 Curitiba Parana, 80420-170 Brazil Phone: (5541) 322-3535 CSN: Acquires 100% Stake in ERSA for BRL100Mln ---------------------------------------------- Companhia Siderurgica Nacional-CSN informs its shareholders and the general public that it entered into a Purchase and Sale Agreement of Shares of Estanho de Rondonia S.A. (ERSA) with Brascan Brasil Ltda. for the purchase of 100% of the issued capital stock of ERSA on April 7. Assets Owned by ERSA ERSA owns Mineracao Santa Barbara, located in the city of Itapoa do Oeste, and a smelter mill located in the city of Ariquemes, both in the State of Rondonia. The mine contains measured reserves of 25,898 tones and resources of 54,066 tones of tin, including mining activities (through alluvium method), crushing, milling and concentration. The smelter mill has the capacity to produce approximately 3,600 tons of metallic tin per year. Cost of Acquisition The total value of acquisition is R$ 100,000,000.00, of which R$ 76,863,000.00 shall be paid with the transfer of ERSA shares to CSN. The remaining R$ 23,137,000.00 will be paid after the end of the fiscal year of 2005, with the confirmation of certain operating efficiency and resources inventory indexes. Strategy CSN's consumption of tin is approximately 3,600 tones per year for tin-plate coating, one of the highest value-added products in the Company's product mix. The purpose is to increase the annual production of this mine up to 3,600 tones and of the smelter mill up to 4,800 tones until 2009, evidencing a high value generation potential for its shareholders and the firm intention of CSN to conquer market share in the mining business segment. Also, the Company moves forward on its strategy of consolidating and developing its businesses units of steel, mining, logistics infrastructure and cement. CONTACT: Companhia Siderurgica Nacional-CSN Av. Presidente Juscelino Kubitschek 1830 Torre 1 13 andar, Itaim Bibi Sao Paulo, SP 04543-900 Brazil Web site: http://www.csn.com.br CSN: Shares Decline on Announcement to Buy ERSA ----------------------------------------------- Integrated flat-steel producer Companhia Siderurgica Nacional (CSN) saw a 1.8% drop on its shares to BRL59.01 on the Sao Paulo Stock Exchange Friday morning after the Company said it has agreed to acquire ERSA. According to Dow Jones Newswires, analysts are wondering why the Company is adding to its mining assets, which already include the Casa de Pedra iron mine in Southeastern Brazil. "It's clear with this acquisition, which has no short-term impact, not even on reducing costs, that the priority is mining, which could lead the market to believe there's the possibility of a split within the company," analysts at Banco Safra said in a Friday report. Last year, CSN decided to invest US$850 million to raise output at Casa de Pedra to 40 million tons of iron ore a year and to expand its Sepetiba port to ship as much as three-fourths of that output overseas. The move came as surging worldwide demand lifted metals prices across the globe. CONTACT: Companhia Siderurgica Nacional-CSN Av. Presidente Juscelino Kubitschek 1830 Torre 1 13 andar, Itaim Bibi Sao Paulo, SP 04543-900 Brazil Web site: http://www.csn.com.br ROYAL AHOLD: Completes Brazilian Divestment Plan ------------------------------------------------ Ahold announced yesterday it has successfully completed the sale of its remaining Brazilian operation, G. Barbosa Comercial Ltda. The sale agreement with an affiliate of ACON Investments, a US- based investment firm, was announced on December 31, 2004. The divestment of G. Barbosa completes Ahold's divestiture program in Brazil. About Royal Ahold The Company, also known as Ahold NV, is primarily engaged in the operation of retail trade supermarkets both in the US and in Europe, with additional activities in Latin America. CONTACT: Ahold Corporate Communications Royal Ahold N.V. P.O. Box 3050 1500 HB Zaandam, Netherlands Phone: +31.75.659.5720 Web site: http://www.ahold.com UNIBANCO: Pays Interest on Capital Stock ---------------------------------------- - TO BE APPLIED AGAINST THE DIVIDENDS FOR 2004 FISCAL YEAR - QUARTERLY PAYMENT OF INTEREST ON CAPITAL STOCK FOR THE FIRST QUARTER OF THE YEAR 2005 A) The Boards of Directors of UNIBANCO - UNIAO DE BANCOS BRASILEIROS S.A. ("Unibanco") and of UNIBANCO HOLDINGS S.A. ("Unibanco Holdings") approved, on Friday, April 8, 2005, as proposed by the respective Boards of Officers on March 30, 2005: 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, in the total gross amount of R$27,676,222.90 and R$13,682,429.34, and total net amount of R$23,524,789.46 and R$11,630,064.93, respectively to Unibanco and Unibanco Holdings, to be made from April 29, 2005 on. This payment shall be considered as part of the mandatory dividend corresponding to the fiscal year of 2004, in accordance with the provisions of article 9th of Federal Law 9,249/95, article 44 paragraph 8th of the by-laws of Unibanco and article 35 sole paragraph of the by-laws of Unibanco Holdings. Pursuant to the approved proposals, the shareholders of Unibanco and Unibanco Holdings shall have the right to receive the interest on capital stock in accordance with the gross and net amounts set forth in the table below. Such values correspond to one (1) share, one (1) Share Deposit Certificate ("Unit")*, or one (1) Global Depositary Share ("GDS")**, as the case may be. An income tax rate of fifteen percent (15%) will be withheld from such gross amounts, resulting in the net values set forth below: In R$ UBB-ON UBB-PN HOL-ON HOL-PN UNIT GDS UBBR3 UBBR4 UBHD3 UBHD6 UBBR11 NYSE-UBB Gross Val. .0189452 .0208397 .0164788 .0164788 .0373185 .1865925 Net Val. .0161034 .0177137 .0140069 .0140069 .0317206 .1586030 (*) Each UNIT represents one preferred share of Unibanco and one preferred share of Unibanco Holdings. (**)Each GDS listed on the New York Stock Exchange (NYSE: UBB) is equivalent to 5 Units. II. That Board of Directors' meetings are held in a quarterly basis with the purpose of deciding the payment of earnings to the stockholders, which it's intended to be on the form of interest on capital stock ("Quarterly Payments"), to be paid at the end of April 2005, July 2005, October 2005, and January 2006, in the values set forth below: In R$ UBB-ON UBB-PN HOL-ON HOL-PN UNIT GDS UBBR3 UBBR4 UBHD3 UBHD6 UBBR11 NYSE-UBB Gross Val. .0388235 .0427059 .0337633 . 0337633 .0764692 .3823460 Net Val. .0330000 .0363000 .0286988 .0286988 .0649988 .3249940 The Boards of Directors may, at their sole discretion, based on reasonable causes, decide (i) to modify the conditions foreseen to the payment of the Quarterly Payments, such as value, form and dates, being able, also, to propose the payment of the compensation under the for m of dividends, or (ii) not to pay the Quarterly Payments in determined quarters. III. The payment of Quarterly Payments, in the gross total amount of R$56,715,629.55 and R$28,033,835.39, and net total amount of R$48,208,285.11 and R$23,828,760.08, respectively to Unibanco and Unibanco Holdings, to be made from April 29, 2005 on. This payment shall be considered as part of the mandatory dividend corresponding to the fiscal year of 2005, in accordance with the provisions of article 9th of Federal Law 9,249/95, article 44 paragraph 8th of the by-laws of Unibanco and article 35 sole paragraph of the by-laws of Unibanco Holdings. Pursuant to the approved proposals, the shareholders of Unibanco and Unibanco Holdings shall have the right to receive the interest on capital stock in accordance with the gross and net amounts set forth in the table below. Such values correspond to one (1) share, one (1) Unit, or one (1) GDS, as the case may be. An income tax rate of fifteen percent (15%) will be withheld from such gross amounts, resulting in the net values set forth below: In R$ UBB-ON UBB-PN HOL-ON HOL-PN UNIT GDS UBBR3 UBBR4 UBHD3 UBHD6 UBBR11 NYSE-UBB Gross Val. .0388235 .0427059 .0337633 . 0337633 .0764692 .3823460 Net Val. .0330000 .0363000 .0286988 .0286988 .0649988 .3249940 B. Considering the proposals in items (I) and (III), the total amount approved to be paid in interests on capital stock is the gross value of R$84,391,852. 45 and R$41,716,264.73, and the net values of R$71,733,074.57 and R$35,458,825.01, respectively to Unibanco and Unibanco Holdings. Such values correspond to the complementary interests on capital stock declared and paid related to the profit ascertained in the 2004 fiscal year plus the Quarterly Payment related to the first quarter of 2005. Pursuant to the approved proposals, the shareholders of Unibanco and Unibanco Holdings shall have the right to receive the interest on capital stock in accordance with the gross and net amounts set forth in the table below. Such values correspond to one (1) share, one (1) Unit, or one (1) GDS, as the case may be. An income tax rate of fifteen percent (15%) will be withheld from such gross amounts, resulting in the net values set forth below: In R$ UBB-ON UBB-PN HOL-ON HOL-PN UNIT GDS UBBR3 UBBR4 UBHD3 UBHD6 UBBR11 NYSE-UBB Gross Val. .0577687 .0635456 .0502421 .0502421 .1137877 .05689385 Net Val. .0491034 .0540137 .0427057 .0427057 .0967194 .4835970 C) The payment of the due amounts, pursuant to the table above (Item B), shall be made according to the procedures and places set forth below: 1. GDSs' holders: The payment shall be made directly to the foreign depositary bank - Bank of New York - which will forward it to the entitled shareholders. 2. Other shareholders: 2.1. Shareholders who are Unibanco's account holders: The payment shall be made by means of credit in the respective bank accounts. 2.2. Shareholders who hold bank accounts in other banks, who have already provided to Unibanco, the bank, branch and bank account numbers: The payment shall be made by means of electronic transfer (DOC/ TED), according to the respective amounts. 2.3. Shareholders whose shares are deposited in Stock Exchanges' custody: The payment will be made directly to the Stock Exchanges, which shall forward such amounts to the entitled shareholders, by means of the depositary brokers. 2.4. Shareholders for whom the above-mentioned situations are not applicable: The payment shall be made at any Unibanco's branch at their convenience. 2.5. Shareholders who hold bearer share certificates which still have not been converted to the book-entry system: The payment will be made upon delivery of the respective certificates for mandatory conversion. 2.5.1. Assistance to the conversion will be provided by our Shareholders Assistance department in the addresses set forth below, where relevant shareholders shall attend and present the respective certificates. Sao Paulo - SP: Rua da Quitanda, 157 - 4th floor Rio de Janeiro - RJ: Rua Sete de Setembro, 111 mezzanine. 2.5.2. For all other locations, such assistance shall be made at Unibanco's branches. D) Pursuant to the approved proposals: In Brazil, April 8, 2005 will be considered as "Record Date" for the purpose of determining the holders of shares and Units who will be entitled to receive the proposed payment, from April 29, 2005 on. Unibanco's and Unibanco Holdings' shares and Units will be traded in the Brazilian market without the right to receive payment of interest on capital stock (ex-interest on capital stock) from April 11, 2005 on. In the United States of America, April 13, 2005 will be considered as "Record Date" for the purpose of determining the holders of GDS who will be entitled to receive the proposed payment. The GDSs will be traded without the right to receive payment of interest on capital stock (ex-interest on capital stock) from April 11, 2005 on. CONTACT: UNIBANCO - Uniao de Bancos Brasileiros S.A. Investor Relations Area Ave. Eusebio Matoso, 891 - 15th floor - Sao Paulo, SP 05423 -901- Brazil Tel.: (55 11) 3097-1980 Fax: (55 11) 3813-6182 E-mail: investor.relations@unibanco.com URL: www.ir.unibanco.com ========= C H I L E ========= AES GENER: Still Mulling LNG Options ------------------------------------ Power producer AES Gener has acknowledged an interest in becoming an offtaker from state oil operation Enap's proposed liquefied natural gas (LNG) re-gasification terminal in Chile's central Region V, suggests Business News Americas. "We could still sign an agreement with Enap [to be a LNG offtaker]. It is an interesting initiative but we haven't made a decision yet," CEO Felipe Ceron said Thursday after local generator Endesa Chile and natural gas distributor Metrogas signed an offtaker agreement with Enap. The re-gasification terminal is a government initiative to reduce dependence on unstable Argentine natural gas imports. This year's gas export restrictions from Argentina, which amount to a third of what Chile normally imports from its Andean neighbor, will "without a doubt" negatively affect AES Gener's Q1 earnings, Ceron said. AES Gener operates the 380MW gas-fired Nueva Renca plant near capital city Santiago, which has been forced to use more expensive diesel fuel in recent months as a result of the gas cuts. CONTACT: AES Gener Mariano Sanchez Fontecilla 310 Piso 3 Santiago de Chile Phone: 562-6868900 Fax: 562-6868991 =============== C O L O M B I A =============== ECOPETROL: No Privatization Plans Says President Uribe ------------------------------------------------------ The country's President, Alvaro Uribe, contradicted reports that his government is planning to sell oil producer Ecopetrol to a private entity, relates Business News Americas. "The government I preside over has not thought about, is not thinking about, nor will it think about selling Ecopetrol," he said in response to a report in a Brazilian magazine claiming Colombia's government is studying a proposal by Brazil's state oil firm Petrobras (NYSE: PBR) to buy a 49% interest in Ecopetrol. Petrobras interest includes only working with Ecopetrol to upgrade the Cartagena refinery, Uribe said. ============= J A M A I C A ============= AIR JAMAICA: Resumes Eastern Caribbean Service ---------------------------------------------- Air Jamaica will return to the Eastern Caribbean on April 16 with six weekly flights to Grenada and Barbados from Kingston and New York. Flight JM094 will operate on Mondays, Thursdays and Saturdays from New York to Grenada, Barbados and Kingston. On the return, Flight JM095 will operate on Tuesdays, Fridays and Sundays from Kingston to Barbados, Grenada and New York. JM095/094 will be the only non- stop services between Kingston and Barbados. Connections from Grenada and Barbados can be made to New York and Los Angeles through Jamaica on Mondays, Thursdays and Saturdays. Initially, an Airbus A320 with 138 economy and 12 top class seats will operate the flight but the capacity will be increased shortly with the use of an A321 aircraft, which has an additional 38 seats. Executive Chairman, Dr. Vincent Lawrence says with the availability of aircraft still restricted and after carefully reviewing the route structure, competition and economics, the suspension of flights to St. Lucia will continue at this time. "In recent months, St. Lucia has benefited from increased non- stop service by other airlines and we believe that the continued suspension should not seriously affect traffic to St. Lucia," Dr. Lawrence says. All the relevant Government and Tourism Officials have been advised of the airline's decision. Dr. Lawrence expressed his appreciation for the support and cooperation of the Government and people of St. Lucia and for their understanding of the continued suspension of service during this difficult period for the airline. In the meantime, Air Jamaica is negotiating with other carriers to provide passengers with connections from Barbados and Grenada to the rest of the Caribbean. On March 18, Air Jamaica suspended flights to the Eastern Caribbean due to the accelerated maintenance schedule required by the Jamaica Civil Aviation Authority (JCAA). The authority had insisted that the airline immediately reduce its maintenance cycle from eighteen to fifteen months. As a result the number of aircraft available was significantly reduced causing a shortage of equipment to operate the EC routes. About Air Jamaica Air Jamaica is a service-oriented passenger airline offering travelers a level of comfort, convenience and amenities not commonly found in air travel today. All Air Jamaica flights feature hot meals and complimentary champagne, wine and beer. The Air Jamaica fleet is comprised of new Airbus A320, A321 and A340 aircraft. Air Jamaica operates 300+ weekly flights connecting 13 cities in the U.S., Canada and the UK with 12 Caribbean destinations. CONTACT: Air Jamaica 8300 N.W. 33rd Street Suite 440 Miami Fl. 33122 Phone: (305) 670 3222 Fax: (305) 669 6631 KAISER ALUMINUM: Secures Creditor Support for Liquidating Plans --------------------------------------------------------------- Kaiser Aluminum has been notified that Logan & Company, the claims agent in Kaiser's Chapter 11 case, has filed a report with the U.S. Bankruptcy Court for the District of Delaware indicating that a sufficient volume of creditors (in number and amount) have voted to accept the two Liquidating Plans (as defined in Kaiser's Form 10-K for 2004) filed in conjunction with the previously announced sale of Kaiser's interests in and related to alumina refineries in Jamaica and Australia, to permit confirmation of the Plans to proceed. Kaiser's Form 10-K for 2004 provides additional detail on the Liquidating Plans and the proposed distribution of cash proceeds in connection with the Plans. In addition, the Plans and related Disclosure Statements are posted in the Restructuring section of Kaiser's web site at www.kaiseraluminum.com. The filing by Logan & Company also indicates that holders of the Company's 12-3/4% Senior Subordinated Notes, as a group, voted not to accept the Plans. Accordingly, as discussed more fully in the company's Form 10-K and the Disclosure Statements related to the Plans, the Court will determine the allocation of distributions among holders of the company's 9-7/8% Senior Notes, 10-7/8% Senior Notes, and the 12-3/4% Senior Subordinated Notes. Certain technical objections to the Plans have also been filed. The Court will hold a hearing beginning on April 13 to hear and rule on the plan objections and the allocation of distributions among holders of the Company's 9-7/8% Senior Notes, 10-7/8% Senior Notes, and the 12-3/4% Senior Subordinated Notes. The Court's decisions regarding confirmation will be subject to appeal. No assurances can be provided as to whether or when the Liquidating Plans will be confirmed by the Court or ultimately consummated or, if confirmed and consummated, as to the amount of distributions to be made to individual creditors of the liquidating subsidiaries or the company. Further, the company cannot predict what the ultimate allocation of distributions among holders of the company's 9-7/8% Senior Notes, 10-7/8% Senior Notes, and the 12-3/4% Senior Subordinated Notes will be, when any such resolution will occur, or what impact any such resolution may have on the company and its ongoing reorganization efforts. The Liquidating Plans relate exclusively to the interests in and related to alumina refineries in Jamaica and Australia and will have no impact on the normal ongoing fabricated products business unit or other continuing operations. About Kaiser Aluminum Kaiser Aluminum is a leading producer of fabricated aluminum products for aerospace and high-strength, general engineering, automotive, and custom industrial applications. CONTACT: Kaiser Aluminum Houston Mr. Scott Lamb Phone: 713-332-4751 =========== M E X I C O =========== PEMEX: Issues $44.4M Worth of Bonds on the BMV ---------------------------------------------- State oil company Pemex auctioned short-term bonds worth MXN500 million (US$44.4mn) on the Mexico City stock exchange (BMV) on April 6, Business News Americas reports, citing BMV information. The fixed-rate bonds, which were issued April 7 and will come due May 5, cost MXN100 each and pay a 9.78% fixed annual interest rate. JP Morgan acted as fiduciary for the issue and Scotia Inverlat and Santander Serf》 were the placing agents. Credit ratings agency Standard and Poor's assigned its mxA-1+ rating to the issue, Fitch its F1+ (mex) rating and Moody's its MX-1 rating. PROVO INTERNATIONAL: Will Not Appeal AMEX Decision -------------------------------------------------- Provo International, Inc. (formerly Frontline Communications Corp., formerly traded on AMEX: FNT) announced Friday that the company will not appeal the previously announced notice from the American Stock Exchange (AMEX) that it will not accept the Company's proposed plan of compliance (the "plan"). In order to file the appeal, the Company would have been required to pay AMEX a substantial amount for various continued listing and application fees, which it believes would place too great a strain on cash flow with no reasonable assurance that the Company would succeed on appeal. Provo's common stock is now quoted in the over-the-counter pink sheets. It is management's goal to have the its common stock listed on the OTC Bulletin Board and to continue to execute its business plan similar to that which is described in the compliance plan submitted to AMEX. The Company recently filed an extension to file Form 10-KSB no later than April 15, 2005. As a result of auditing delays of our Provo Mexico subsidiary, it is likely that Form 10-KSB will not be filed with the Securities and Exchange Commission until the middle of May 2005. In order to have our common stock trading on the OTC Bulletin Board, we need to be current with our reports under the Exchange Act and to have a market maker file an appropriate application with the NASD. In a related matter, CEO Stephen J. Cole-Hatchard will be stepping down as CEO and Chairman of the Board. Cole-Hatchard stated that his expected resignation as CEO and Chairman at this time was appropriate, in that his primary tasks were to deal with SEC and AMEX matters. "Our company," Cole-Hatchard said, "will save a substantial amount of money by not having its common stock listed on the AMEX and not paying me for the extensive time involved in dealing with the myriad rules, filings and deadlines of AMEX". He continued, "It appears that our potential investors, as well as our various licensing and acquisition targets, are still willing to proceed, but with a downsized and modified business plan, with a concomitant reduction in financing amounts. As a result, it just makes good business sense to reflect those reductions in corporate overhead as much as possible." About Provo International Inc. Founded in 1995 as Frontline Communications Corporation and currently traded on the American Stock Exchange under the symbol FNT, Provo International Inc. has three operating divisions, involving the sale of internet bandwidth, web development and services, and payroll (paycard) disbursement and transfer products and services. TFM: S&P Affirms KCS Ratings, Upgrades TFM ------------------------------------------ Standard & Poor's Ratings Services affirmed its ratings, including the 'BB-' corporate credit ratings, on Kansas City Southern and unit Kansas City Southern Railway Co., and removed the ratings from CreditWatch, where they were placed on Dec. 15, 2004. At the same time, Standard & Poor's raised the corporate credit rating of unit TFM S.A. de C.V. (TFM) to 'BB-' from 'B' and removed the rating from CreditWatch, where it was placed on Dec. 15, 2004. In addition, Standard & Poor's assigned its 'B+' rating to TFM's $460 million senior unsecured notes due 2012 and 2015. Proceeds from the notes offering will be used to repay existing debt. The rating actions follow our review of the operating outlook for both companies and the impact of Kansas City Southern's acquisition of a controlling interest in Grupo TFM (TFM's parent) on each company's credit profile. The outlook on Kansas City Southern, Kansas City Southern Railway Co., and TFM is negative. "The upgrade of TFM reflects Standard & Poor's expectation that the financial profile of TFM will improve over the near to intermediate term due to the planned refinancing of high interest rate debt, marketing and cost benefits from the recent transaction, and favorable industry conditions" said Standard & Poor's credit analyst Lisa Jenkins. "The affirmation of Kansas City Southern ratings reflects Standard & Poor's belief that the TFM transaction has improved Kansas City Southern's business profile and that favorable industry conditions will enable Kansas City Southern to improve its currently extended financial profile to levels consistent with its rating over the near to intermediate term." On April 1, 2005, Kansas City Southern completed its acquisition of a controlling interest in Grupo TFM, which owns TFM, the largest Mexican freight railroad. TFM operates a rail network in northeast Mexico. Ratings assume that credit protection measures will improve at both entities over the next two years as a result of benefits from the acquisition and from continuing healthy market fundamentals. In addition, ratings reflect the expectation that the long-running value-added-tax (VAT) dispute with the Mexican government and the put option that the Mexican government can exercise to sell its remaining ownership interest in Grupo TFM will be resolved without a material impact on credit quality. Should Kansas City Southern be forced to pay the full amount of the put option with no offsetting VAT proceeds, ratings could be reviewed for a downgrade. Conversely, if the improvement in credit protection measures does occur as expected, and if the VAT and put issues are resolved without adverse financial consequences, the outlook would likely be revised to stable. Primary Credit Analyst: Lisa Jenkins, New York (1) 212-438-7697; lisa_jenkins@standardandpoors.com Secondary Credit Analyst: Juan P Becerra, Mexico City (52) 55- 5081-4416; juan_becerra@standardandpoors.com VITRO: Shuffling Management In Light Of President's Retirement -------------------------------------------------------------- Vitro, S.A. de C.V. (NYSE: VTO; BMV: VITROA) announced Friday that Fernando Flores, the current President of Vitro's Flat Glass Unit, has decided to retire. Jose Domene, Vitro's Chief Operating Officer, will head the Flat Glass Business Unit as Interim President, while maintaining his current responsibilities. Fernando Flores will continue to support Jose Domene as a consultant for a six-month period to assure continuity. About Vitro Vitro, S.A. de C.V. through its subsidiary companies, is one of the world's leading glass producers. Vitro is a major participant in three principal businesses: flat glass, glass containers and glassware. Vitro serves multiple product markets, including construction and automotive glass; food and beverage, wine, liquor, cosmetics and pharmaceutical glass containers; glassware for commercial, industrial and retail uses. Founded in 1909 in Monterrey, Mexico-based Vitro has joint ventures with major world-class partners and industry leaders that provide its subsidiaries with access to international markets, distribution channels and state-of-the-art technology. Vitro's subsidiaries have facilities and distribution centers in eight countries, located in North, Central and South America, and Europe, and export to more than 70 countries worldwide. CONTACT: Vitro, Sociedad Anonima Ave. Ricardo Margain 400 Col Valle del Campestre Garza Garcia, Nuevo Leon 66250 Mexico Phone: +52 81-8863-1200 Web site: http://www.vto.com =========== P A N A M A =========== ICA PANAMA: To Issue $150M Worth of Bonds ----------------------------------------- ICA Panama, a subsidiary of Mexican engineering, procurement and construction company Ingenieros Civiles y Asociados (NYSE, BMV: ICA), will issue US$150 million bonds in public, reports Business News Americas. The proceeds of the operation will be used to pay off debts. ICA Panama holds the concession for the Corredor Sur tollroad. CONTACT: Empresas ICA Sociedad Controladora S.A. de C.V. Col. Escandon Del Migual Hidalgo Mexico City, 11800 Mexico Phone: 525-272-9991 Web site: http://www.ica.com.mx ================================= T R I N I D A D & T O B A G O ================================= BWIA: Govt's $35.6M Bailout Package Follows Flight Suspensions -------------------------------------------------------------- Ailing national airline has received a TTD222.9-million (US$35.6 million) bailout package from the government, according to an Associated Press report. The bailout package came in conjunction with the government's decision to suspend the airline's flights to the Caribbean and Europe. Public Administration Minister Lenny Saith said Thursday that the suspension of flights to Costa Rica, Cuba, Curacao, the Dominican Republic, Ireland, and Manchester, England was effective immediately. He did not say how long the flights would be suspended. The bailout package and the flights suspension are part of the government's latest efforts to save the airline from financial collapse. Trinidad's government has bailed out BWIA repeatedly since the drop in travelers that followed the Sept. 11 attacks in the United States. The government increased its 49% stake in the airline to 75% last year. The government stepped in when a leasing company seized two BWIA jets and the airline was nearing bankruptcy with a total debt of about US$100 million. CONTACT: BRITISH WEST INDIES AIRWAYS (BWIA) Phone: + 868 627 2942 E-mail: mail@bwee.com Home Page: http://www.bwee.com ================= V E N E Z U E L A ================= PDVSA: VEC Wants Citgo Stake ---------------------------- Valero Energy Corporation (VEC), a major refinery of heavy and acid oil in the United States, reaffirmed its interest in buying the refineries of Citgo, the U.S.-based subsidiary of Petroleos de Venezuela SA (PDVSA). VEC speaker Mary Rose Brown told daily El Universal that VEC "is still interested in the refineries, even if the procurement does not involve secured supplies" for the heavy/acid oil processed at Citgo refineries and produced in Venezuela. Brown's comments came after Venezuela's Minister of Energy and Petroleum Rafael Ramirez announced that the government will not sell Citgo. Instead, it will launch a restructuring of the unit's activities to make it more efficient. "We have said we are not going to sell Citgo; we have a very strong presence in the US market," Ramirez said. Citgo owns eight refineries in the United States, with a capacity to process 895,000 b/d. The PDVSA subsidiary trades 600 different lube oils and other byproducts. Citgo facilities can process Venezuelan heavy and acid oil. * VENEZUELA: Closes Successful $1.6B Bond Issue ----------------------------------------------- The Venezuelan government has completed the sale its US$1.6 billion 20-year dollar denominated bonds, reports Bloomberg. The new bond issue, bearing an interest rate of 7.65 percent, was sold locally to domestic investors to keep borrowing costs down and to comply with dollar purchase restrictions in the country. The investors purchased the bonds in bolivars at an exchange rate of 2,150 to the dollar. The bonds will be repaid in dollars upon maturity. The local finance ministry says that the bids totaled US$4.4 billion for the offering. *********** 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 * * *