/raid1/www/Hosts/bankrupt/TCRLA_Public/050603.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Friday, June 3, 2005, Vol. 6, Issue 109
Headlines
A R G E N T I N A
BANCO HIPOTECARIO: Government Continues to Block BNL Deal
BETA S.R.L.: Court Rules for Liquidation
CELUPLAST S.A.: Trustee to Submit General Report
DAMCO S.R.L.: Begins Liquidation
DROMEDARIO LOGISTICA: Initiates Bankruptcy Proceedings
EGAM S.A.I.C.: Court Designates Trustee for Liquidation
LE TECHNICE: Court Declares Company Bankrupt
RAT PACK: Liquidation Process Required; Court to Oversee
SOUTHERN WINDS: Forthcoming Sale Details Expected Soon
* ARGENTINA: S&P Raises Long-Term Ratings To 'B-' From 'SD'
B E L I Z E
* BELIZE: S&P Cuts Ratings After Govt Reveals Debt Plans
B E R M U D A
CABLE TECHNOLOGY: Wind-Up Process Begins
CHEVRON OVERSEAS: Names Liquidator to Supervise Wind-Up
CISCO SYSTEMS: Members to Hold Final General Meeting on July 4
FOSTER WHEELER: Begins Trading on NASDAQ
LORAL SPACE: U.S. Bankruptcy Court Approves Disclosure Statement
RCS LIMITED: Final General Meeting of Members to be Held June 30
TRA INSURANCE: Creditors Advised to Submit Claims
B R A Z I L
AOL LATIN AMERICA: Letter Agreement Halts Itau Promotions
BANCO BRADESCO: Announces Shareholders' Dividend
ELETROPAULO METROPOLITANA: AES Enters Agreement With MicroPlanet
GERDAU: Gerdau Ameristeel Appoints Mario Longhi as President
LIGHT SERVICOS: Regulator Authorizes $319M Debt Sale
TCP: Successfully Places BRL1 Bln Worth of 10-Yr. Debentures
E C U A D O R
PACIFICTEL: 285 Lawsuits Allege Millions in Claims
E L S A L V A D O R
BANCO AGRICOLA: Lanza Group to Handle Hispanic Marketing Efforts
* EL SALVADOR: Fitch Rates Global Bonds 'BB+
H O N D U R A S
* HONDURAS: IDB Approves $192.5M Debt Relief
M E X I C O
GRUPO ELEKTRA: Shareholders Approve GDSs Program Termination
GRUPO IUSACELL: Shareholders OK Termination of ADRs Program
GRUPO TMM: Lands Long-Term Contract With Pemex
GRUPO TMM: Serrano Plans to Increase Equity Stake
TV AZTECA: Shareholders Approve Termination of ADRs Program
WIRE ROPE: Moody's Assigns B2 Rating to Secured Term Loan
P E R U
MINERA VOLCAN: Workers End Strike Following Accord
P U E R T O R I C O
DORAL FINANCIAL: Ratings Lowered; CreditWatch Negative Continues
DORAL FINANCIAL: Investors File Lawsuit to Recover Losses
U R U G U A Y
NBC: Performance Improvement Prompts Fitch Ratings Upgrade
- - - - - - - - - -
=================
A R G E N T I N A
=================
BANCO HIPOTECARIO: Government Continues to Block BNL Deal
---------------------------------------------------------
Argentine mortgage bank Banco Hipotecario is yet to complete the
acquisition of Italian bank Banca Nazionale del Lavoro's (BNL)
local assets, reports Business News Americas. Banco Hipotecario
announced in mid-February that it would be acquiring 100% of BNL
Inversiones Argentinas S.A. for US$207 million. In exchange, BNL
will acquire 3.7% of Banco Hipotecario's shares with a book
value of $25 million.
However, the government, which owns 54% of Banco Hipotecario,
refuses to approve the deal because of a disagreement over the
business plan and management restructuring of the bank following
a merger.
The government's refusal to approve the deal continues to hurt
IRSA-Inversiones y Representaciones SA, which owns 46% of Banco
Hipotecario and manages the bank. IRSA has been pushing hard for
the deal's approval.
According to Argentina's economy ministry, IRSA's
misinterpretation of the country's privatization law has also
stalled the deal.
CONTACT: Banco Hipotecario S.A.
151 Reconquista
Buenos Aires
Argentina
Phone: +54 11 4347 5546
Web site: http://www.hipotecario.com.ar
BETA S.R.L.: Court Rules for Liquidation
----------------------------------------
Court No. 7 of Buenos Aires' civil and commercial tribunal
ordered the liquidation of Beta S.R.L. Viajes y Turismo after
the Company defaulted on its obligations, Infobae reveals. The
liquidation pronouncement will effectively place the Company's
affairs as well as its assets under the control of Patricia
Beatriz Rovelli, the court-appointed trustee.
Ms. Rovelli will verify creditors' proofs of claim until Aug. 1,
2005. The verified claims will serve as basis for the individual
reports to be submitted in court. The submission of the general
report will follow.
Clerk No. 13 assists the court on this case, which will end with
the disposal of the Company's assets in favor of its creditors.
CONTACT: Ms. Patricia Beatriz Rovelli, Trustee
Avda Cordoba 1540
Buenos Aires
CELUPLAST S.A.: Trustee to Submit General Report
------------------------------------------------
Court-appointed trustee Estudio Cerrezuela, Hernandez will
submit on June 17, 2005 a general report, which summarizes
events relevant to the reorganization of Celuplast S.A. and
provides an audit of the Company's accounting and business
records.
Celuplast S.A., a company operating in La Rioja, started its
reorganization after Judge No.2 of the city's civil and
commercial tribunal appointed the trustee to supervise the
proceedings.
The trustee validated the creditors' proofs of claim until March
4, 2005. The results of the verification were presented in court
as individual reports on April 29, 2005.
Estudio Cerrezuela, Hernandez will present the completed
settlement proposal to its creditors during the informative
assembly.
CONTACT: Estudio Cerrezuela, Hernandez, Trustee
9 de Julio 41
La Rioja
DAMCO S.R.L.: Begins Liquidation
--------------------------------
Damco S.R.L. of Buenos Aires will begin liquidating its assets
after Court No. 6 of the city's civil and commercial tribunal
declared the Company bankrupt. Infobae reports that the
bankruptcy process will commence under the supervision of court-
appointed trustee, Sergio Leonardo Novick.
The trustee will review claims forwarded by the Company's
creditors until Aug. 9, 2005. After claims verification, Mr.
Novick will submit the individual reports for court approval.
The general report will follow. Clerk No. 12 assists the court
on this case.
CONTACT: Mr. Sergio Leonardo Novick, Trustee
Libertad 359
Buenos Aires
DROMEDARIO LOGISTICA: Initiates Bankruptcy Proceedings
------------------------------------------------------
Court No. 6 of Buenos Aires' civil and commercial tribunal
declared Dromedario Logistica S.A. "Quiebra," reports Infobae.
Clerk No. 12 assists the court on the case, which will close
with the liquidation of the Company's assets to repay creditors.
Ms. Lilian Edith Rey, who has been appointed as trustee, will
verify creditors' claims until July 26, 2005 and then prepare
the individual reports based on the results of the verification
process.
The general and individual reports will then be submitted to
court.
CONTACT: Ms. Lilian Edith Rey, Trustee
Avda Roque Saenz Pe¤a 651
Buenos Aires
EGAM S.A.I.C.: Court Designates Trustee for Liquidation
-------------------------------------------------------
Buenos Aires' accountant Marta Magdalena Comba was assigned
trustee for the liquidation of local company Egam S.A.I.C.,
relates Infobae.
Ms. Comba will verify creditors' claims until July 25, 2005, the
news source adds. After that, she will prepare the individual
reports and the general report.
The city's civil and commercial Court No. 7 handles the
Company's case with assistance from Clerk No. 13.
CONTACT: Ms. Marta Magdalena Comba, Trustee
Hipolito Yrigoyen 1349
Buenos Aires
LE TECHNICE: Court Declares Company Bankrupt
--------------------------------------------
Court No. 7 of Buenos Aires' civil and commercial tribunal
decreed the bankruptcy of Le Technice S.A., reports Infobae. The
Company will initiate the process with Mr. Miguel Angel Loustau
as receiver, who will verify creditors' claims until Aug. 1,
2005. The Company's case will conclude with the liquidation of
its assets to repay creditors. Clerk No. 13 assists the court in
handling the proceedings.
CONTACT: Mr. Miguel Angel Loustau, Trustee
Viamonte 993
Buenos Aires
RAT PACK: Liquidation Process Required; Court to Oversee
--------------------------------------------------------
Rat Pack S.R.L. is now "Quiebra" - meaning bankrupt, says
Infobae. Buenos Aires' civil and commercial Court No. 1 decreed
the Company's bankruptcy and appointed Ulderico Luis Laudren as
receiver for the Company. Mr. Laudren will be reviewing
creditors' claims until Aug. 3, 2005. Analyzing these claims is
important because the outcome of the process will determine the
amount each creditor will get after all the assets of the
Company are liquidated. The court is aided by Clerk No. 2 on the
case, which will culminate in the liquidation of the Company's
assets to repay creditors.
CONTACT: Mr. Ulderico Luis Laudren, Trustee
Libertad 293
Buenos Aires
SOUTHERN WINDS: Forthcoming Sale Details Expected Soon
------------------------------------------------------
Spokespersons for Argentine airline Southern Winds (SW) have
recently announced that the sale of the Company is about to be
defined. According to the sources, SW's majority shareholder and
founder, Juan Maggio, is evaluating offers that include selling
his entire 67% stake in the airline or a lower share. The other
shareholders are Italian group Volare (30.1%) and Miguel
Cartasso Naveira (2.9%).
SW is running out of time. The 3-month term during which Chile's
LAN Airlines committed to aiding SW financially is expiring on
June 7. Even with this help, SW is finding it hard to continue
flying. It has over US$50 million in debt.
On May 27, local businessman Martin Varsavsky, who had injected
around US$4 million in SW, decided not to buy the airline. A few
days before that, Maggio had rejected a US$100,000 offer by
Varsavsky and the businessman had time until last Friday to
improve the bid, which he didn't. The offer also involved
assuming SW's liabilities. Varsavsky said that Maggio asked for
US$1.40 million, which was way to far from what he was willing
to spend.
Southern Wind's biggest issues began in February, when it became
embroiled in a drug-trafficking scandal and the Argentine
government cancelled the provision of fuel subsidies to the
airline.
* ARGENTINA: S&P Raises Long-Term Ratings To 'B-' From 'SD'
-----------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
sovereign credit rating on the Republic of Argentina to 'B-'
from 'SD' on Wednesday. Standard & Poor's also raised its short-
term sovereign credit rating on the republic to 'C' from 'SD'.
The outlook on the ratings is stable.
At the same time, Standard & Poor's assigned its 'B-' rating to
the US$35.3 billion of new bond debt to be issued by the
government in both local and foreign currencies in a series of
par, discount, and quasi-par bonds, as well as to the
corresponding GDP-linked securities also issued in local and
foreign currencies. Standard & Poor's also upgraded its ratings
on the republic's Argentine peso-denominated and U.S. dollar-
denominated bonds called Bonos del Gobierno Nacional (BODENs),
and the rating on the long-term peso-denominated National
Government Guaranteed Loans (Prestamos Garantizados), both to
'B-' from 'CCC+'. The rating will remain 'D' for the sovereign's
defaulted debt that has neither been exchanged for new bonds nor
restructured (see "Argentina Emerges From Default, Although Some
Debt Issues Are Still Rated 'D'," published June 1, 2005, on
RatingsDirect, Standard & Poor's Web-based research and credit
analysis system, for further discussion of this action).
According to Standard & Poor's Managing Director Jane Eddy, "The
stable outlook balances the reduction in the government's debt
burden with uncertainties about its ability to maintain a stable
economic trajectory over the medium term and to gain better
access to market and official funding. Argentina's future credit
rating will depend largely on the government's underlying fiscal
stance, especially its ability to contain pressure for
additional spending if economic growth decelerates," Ms. Eddy
continued.
Standard & Poor's also raised its long-term issuer credit
ratings on the City of Buenos Aires to 'B-' from 'CCC+', and on
the Province of Mendoza to 'B-' from 'CCC+'. Due to strong
linkages between local and regional governments and the
sovereign, these ratings had been constrained by the sovereign
rating on Argentina.
There were no changes to Argentine corporate or bank ratings
directly as a result of the sovereign rating change. Although an
improved country-risk environment has been reflected gradually
in several corporate and bank rating upgrades in 2005, the main
risk affecting the revenue-generating ability of entities
operating in the country (particularly institutional risk) has
not significantly changed simply as a result of the conclusion
of the government's debt exchange. (Please see "Corporate
Ratings In Post-Default Argentina," published April 26, 2005,
and "Banco Hipotecario S.A. Rating Raised; Outlook Stable,"
published May 17, 2005.)
Primary Credit Analyst: Jane Eddy, New York (1) 212-438-7996;
jane_eddy@standardandpoors.com
Secondary Credit Analyst: John Chambers, CFA, New York (1) 212-
438-7344; john_chambers@standardandpoors.com
Secondary Credit Analyst: Marta Castelli, Buenos Aires (54) 114-
891-2128; marta_castelli@standardandpoors.com
Media Contact: David Wargin, New York (1) 212-438-1579;
david_wargin@standardandpoors.com
===========
B E L I Z E
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* BELIZE: S&P Cuts Ratings After Govt Reveals Debt Plans
--------------------------------------------------------
Standard & Poor's Ratings Services lowered the sovereign long-
term foreign currency rating on the government of Belize to
'CCC-' from 'CCC'. At the same time, Standard & Poor's affirmed
its 'CCC+' long-term local currency rating on Belize and its 'C'
short-term foreign and local currency ratings. The outlook on
the long-term ratings is negative.
The official press statement from the government on May 26,
2005, prompted the downgrade. In the statement, the government
indicated that it will seek to extend the maturity profile of
its commercial external debt through bilateral discussions with
creditors. According to Standard & Poor's credit analyst Olga
Kalinina, "This announcement will further limit the government's
market access, and any such rescheduling will likely be on
unfavorable terms to investors and thus constitute a default
under our criteria."
In addition to addressing the maturity profile of its debt, the
government indicated its intention to adjust sharply its fiscal
stance by 3% of GDP this year, which could bring its 2005 budget
into balance. Although the government has requested that the IMF
monitor its adjustment plan, the government does not intend to
seek an IMF program that would entail financing. Ms. Kalinina
said, "The government will be hard-pressed to realize 3% of GDP
of additional fiscal savings because popular support for the
government's economic program is weak, and the economy will
decelerate under the restrictive fiscal program."
The affirmation of the 'CCC+' local currency rating on the
government reflects our expectation that the stock of Belize-
dollar-denominated central government debt, standing at roughly
13% of GDP, will not be involved in a restructuring. Total
public sector debt is estimated at 98% of GDP as of May 31,
2005.
The government plans to satisfy its 2005 borrowing requirement
for the remainder of the year by balancing its budget; by
repaying US$29 million due tomorrow to Citibank/Smith Barney
with funds held in escrow; by repaying US$35 million due to
Capital Markets Financial Services' investors from the proceeds
from the sale of Belize Telecommunication Ltd., a transaction
that is currently tied up in a legal dispute; and by drawing
cash reserves held at the central bank. Ms. Kalinina concluded,
"To avoid default, the government will need to restore investor
confidence by enacting its fiscal adjustment plan and by
bolstering its domestic support in the face of what will be
several years of austerity. In this manner, the government could
regain market access and not have to resort to rescheduling debt
maturities."
Primary Credit Analyst: Olga Kalinina, CFA, New York (1) 212-
438-7350; olga_kalinina@standardandpoors.com
Secondary Credit Analyst: Helena Hessel, New York (1) 212-438-
7349; helena_hessel@standardandpoors.com
=============
B E R M U D A
=============
CABLE TECHNOLOGY: Wind-Up Process Begins
----------------------------------------
IN THE MATTER OF THE COMPANIES ACT 1981
and
IN THE MATTER OF Cable Technology (Bermuda) Limited
At a Special General Meeting of the Members of Cable Technology
(Bermuda) Limited, duly convened and held at the Offices of the
Company, Hamilton, Bermuda, on the 31st May 2005 the following
Resolutions were passed:
(a) that the Company be wound up voluntarily pursuant to the
provisions of The Companies Act, 1981; and
(b) that Nicholas Hoskins be appointed Liquidator for the
purposes of such winding-up, such appointment to be effective
forthwith.
The Liquidator informs that:
- Creditors of Cable Technology (Bermuda) Limited, which is
being voluntarily wound up, are required, on or before the 30th
June 2005 to send their full Christian and Surnames, their
addresses and descriptions, full particulars of their debts or
claims, and the names and addresses of their attorneys (if any)
to the Liquidator of the said Company at Wakefield Quin,
Chancery Hall, 52 Reid Street, Hamilton, Bermuda and if so
required by notice in writing from the said Liquidator, and
personally or by their attorneys, to come in and prove their
debts or claims at such time and place as shall be specified in
such notice, or in default thereof they will be excluded from
the benefit of any distribution made before such debts are
proved.
- A Final General Meeting of the Members of Cable Technology
(Bermuda) Limited named Company will be held at the offices of
Wakefield Quin, Chancery Hall, 52 Reid Street, Hamilton,
Bermuda on the 5th July 2005 at 10:00 a.m., or soon as possible
thereafter, for the purposes of:
1) having an account laid before them showing the manner in
which the winding-up has been conducted and how the property of
the Company has been disposed of and of hearing any explanation
that may be given by the Liquidator;
2) determining by Resolution the manner in which the books,
accounts and documents of the Company and of the Liquidator
thereof, shall be disposed of; and
3) by Resolution dissolving the Company.
CONTACT: Nicholas Hoskins, Liquidator
Chancery Hall
52 Reid Street
Hamilton, Bermuda
CHEVRON OVERSEAS: Names Liquidator to Supervise Wind-Up
-------------------------------------------------------
IN THE MATTER OF: The Companies Act 1981
and
IN THE MATTER OF: CHEVRON OVERSEAS (ALBANIA) LIMITED
The Sole Member of Chevron Overseas (Albania) Limited, acting by
written consent without a meeting on 31st, May 2005 passed the
following resolutions:
(1) that the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981;
(2) that Gary R Pitman 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 Chevron Overseas (Albania) Limited, which is
being voluntarily wound up, are required, on or before 15th
June, 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
Gary R Pitman, at Chevron House, 11 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 Chevron Overseas
(Albania) Limited will be held at Chevron House, Church Street,
Hamilton, Bermuda on 1st July, 2005 at 9.30am, 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: Gary R Pitman, Liquidator
Chevron House
11 Church Street
Hamilton, Bermuda
CISCO SYSTEMS: Members to Hold Final General Meeting on July 4
--------------------------------------------------------------
IN THE MATTER OF: THE COMPANIES ACT 1981
and
IN THE MATTER OF: CISCO SYSTEMS (BERMUDA) IP HOLDINGS LIMITED -
(in Members' Voluntary Liquidation)
A Final General Meeting of the Members of Cisco Systems
(Bermuda) IP Holdings Ltd., will be held at Reid Hall, 3 Reid
Street, Hamilton on July 4, 2005 at 9.00 a.m., or as soon as
possible thereafter, for the purpose of:
(1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and the
property of the Company 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. John C McKenna, Liquidator
Reid Hall, 3 Reid Street
Hamilton, Bermuda
FOSTER WHEELER: Begins Trading on NASDAQ
----------------------------------------
Foster Wheeler Ltd. (OTCBB: FWHLF) has received approval from
The Nasdaq Stock Market to begin trading on or about June 3,
2005 on The Nasdaq National Market. Three categories of the
Company's securities will be listed: the Company's Common Shares
and its Class A and Class B Common Stock Purchase Warrants. The
Common Shares will trade under the symbol FWLT and the Common
Stock Purchase Warrants will trade under the symbols FWLTA and
FWLTB, respectively. The Company currently trades on the OTC
Bulletin Board under the symbol OTCBB: FWHLF.
"Listing on the Nasdaq represents the realization of another of
Foster Wheeler's corporate goals," said Raymond J. Milchovich,
chairman, president and chief executive officer. "The listing
provides investors with greater liquidity in trading our shares,
and we believe it may give the Company better access to capital
markets and to the investment community worldwide. It is another
important milestone in the Company's financial turnaround."
As of May 31, 2005, 44,820,746 of the Company's Common Shares,
4,152,914 of its Class A Common Stock Purchase Warrants and
40,771,560 of its Class B Common Stock Purchase Warrants were
outstanding. The outstanding Class A Warrants are exercisable
for 1.6841 Common Shares per Warrant, or 6,994,059 Common Shares
in the aggregate, and expire on September 24, 2009. The Class B
Warrants are exercisable for 0.0723 Common Shares per Warrant,
or 2,947,233 Common Shares in the aggregate, and expire on
September 24, 2007. Both the Class A and Class B Warrants are
exercisable at $9.378 per Common Share issuable on or after
September 24, 2005. Full exercise of the Warrants would result
in cash proceeds to the Company of approximately $93.2 million,
although there can be no assurance regarding the amount or
timing of exercise of the Warrants.
NASDAQ is a registered trademark of The Nasdaq Stock Market,
Inc. and the largest electronic screen-based equity securities
market in the United States. With approximately 3,300 companies,
it lists more companies and, on average, trades more shares per
day than any other U.S. market. It is home to companies that are
leaders across all areas of business including technology,
retail, communications, financial services, transportation,
media and biotechnology. NASDAQ is the primary market for
trading NASDAQ-listed stocks. For more information about NASDAQ,
visit the NASDAQ Web site at www.nasdaq.com or the NASDAQ
Newsroom at www.nasdaq.com/newsroom/.
Foster Wheeler Ltd. is a global company offering, through its
subsidiaries, a broad range of design, engineering,
construction, manufacturing, project development and management,
research and plant operation services. Foster Wheeler serves the
refining, upstream oil and gas, LNG and gas-to-liquids,
petrochemicals, chemicals, power, pharmaceuticals, biotechnology
and healthcare industries. The corporation is based in Hamilton,
Bermuda, and its operational headquarters are in Clinton, New
Jersey, USA.
CONTACT: Foster Wheeler Ltd.
Media Contact:
Maureen Bingert
Phone: 908-730-4444
Investor Contact:
John Doyle
Phone: 908-730-4270
Other Inquiries:
Phone: 908-730-4000
Web site: http://www.fwc.com
LORAL SPACE: U.S. Bankruptcy Court Approves Disclosure Statement
----------------------------------------------------------------
Reorganization Remains On Schedule And On Plan
Loral Space & Communications, Ltd. (OTC Bulletin Board: LRLSQ)
announced Wednesday that the U.S. Bankruptcy Court for the
Southern District of New York has approved Loral's Disclosure
Statement with respect to its proposed Plan of Reorganization.
At a hearing in New York on Wednesday, the Honorable Robert D.
Drain ruled that, subject to the company making certain
clarifications, Loral's Disclosure Statement contained adequate
information for the purpose of soliciting creditor approval of
Loral's Plan of Reorganization. Loral will file shortly the
revised Disclosure Statement reflecting the requested
clarifications and will commence mailing of the Disclosure
Statement, the Plan and ballots to those creditors entitled to
vote on the Plan on June 7, 2005. A hearing for the court to
consider confirmation of the Plan has been scheduled for July
13, 2005.
With Wednesday's actions, Loral remains on track to emerge from
chapter 11 shortly after the confirmation hearing. As planned,
the company will emerge with its two business units, Loral
Skynet and Space Systems/Loral, intact and with current
management in place.
Upon filing, the amended Plan and Disclosure Statement will be
available on Loral's website at http://www.loral.com.The
documents also will be available via the Court's website, at
hpttp://www.nysb.uscourts.gov. Please note that a PACER password
is required to access documents on the Bankruptcy Court's
website. Loral's bankruptcy case number is 03-41710 (RDD).
Loral Space & Communications is a satellite communications
company. It owns and operates a fleet of telecommunications
satellites used to broadcast video entertainment programming,
distribute broadband data, and provide access to Internet
services and other value-added communications services. Loral
also is a world-class leader in the design and manufacture of
satellites and satellite systems for commercial and government
applications including direct- to-home television, broadband
communications, wireless telephony, weather monitoring and air
traffic management.
CONTACT: Loral Space & Communications Ltd.
Jeanette Clonan
John McCarthy
Phone: 1-212-697-1105
URL: http://www.loral.com
RCS LIMITED: Final General Meeting of Members to be Held June 30
----------------------------------------------------------------
IN THE MATTER OF: The Companies Act 1981
- and -
IN THE MATTER OF: RCS Limited
(In Members' Voluntary Liquidation)
A final general meeting of the Members of RCS Limited will be
held at the offices of Messrs. Conyers Dill & Pearman, Clarendon
House, Church Street, Hamilton, Bermuda on 30th June 2005 at
9:30 a.m. or as soon as possible thereafter, for the following
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 Terry Otton, 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.
TRA INSURANCE: Creditors Advised to Submit Claims
-------------------------------------------------
IN THE SUPREME COURT OF BERMUDA COMPANIES (WINDING-UP)
IN THE MATTER OF TRA INSURANCE COMPANY LIMITED - IN LIQUIDATION
and
IN THE MATTER OF THE COMPANIES ACT 1981
(Under an Order for Winding-Up the above-named Company, dated
29th September, 2000)
Creditors of TRA Insurance Company Limited are required on or
before 29th July, 2005, to send their Names, addresses and
descriptions, full particulars of their debts or claims, to the
Joint Liquidators, TRA Insurance Company Limited - in
Liquidation, C/o PricewaterhouseCoopers, P.O. Box HM 1171,
Hamilton, HM EX, Bermuda.
Creditors are required to return their Sworn Proofs of Debt to
the Joint Liquidators by 5.00pm 29th July, 2005, or in default
thereof they will be excluded from the benefit of any
distribution made before such debts are proved.
Forms of Proof of Debt are available from the Joint Liquidators
of TRA Insurance Company Limited - in Liquidation, c/o
PricewaterhouseCoopers, P.O. Box HM 1171, Hamilton, HM EX,
Bermuda (Tel: 441-295-2000 Fax: 441-295-1242).
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B R A Z I L
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AOL LATIN AMERICA: Letter Agreement Halts Itau Promotions
---------------------------------------------------------
America Online Latin America, Inc. ("AOLA"), AOLA's subsidiary
in Brazil, AOL Brasil Ltda. ("AOLB") and Banco Itau, S.A.
("Itau"), entered on May 25, 2005 into a letter agreement (the
"Agreement") which modifies Itau's marketing obligations under
the Strategic Interactive Services and Marketing Agreement dated
June 12, 2000 and the Memorandum of Agreement dated December 14,
2002, as amended, among AOLA, AOLB and Itau (collectively, the
"Marketing Agreements"). Under the Agreement, the parties will
stop placing promoters to promote the co-branded service in
Banco Itau bank branches, and will cease all other promotions
for the co-branded service in Itau branches. Itau will purchase
advertising on the co-branded service or the AOLB service in an
amount equal to the amount that Itau would have spent in paying
promoters to promote the co-branded service, as described in the
Agreement. To the extent not superseded by the Agreement
described above, the Marketing Agreements remain in effect.
In the Letter Agreement dated May 24, 2005, AOL Brasil's
President Milton Da Rocha Camargo wrote to Mr. Roberto Setubal
of Banco Itau, S.A.:
I am writing to confirm the understanding AOL Brasil Ltda.
("AOLB") reached with Banco Itau S.A. ("Itau") in our meeting
last May 9, 2005 concerning certain marketing activities under
the Strategic Interactive Services and Marketing Agreement dated
June 12, 2000 ("SMA") and to the Memorandum of Agreement dated
December 14, 2002 (the "MOA," and together with the SMA, each as
amended from time to time, the "Existing Agreement"). For
convenience, the capitalized terms used in this letter shall
have the meaning given such terms in the Existing Agreement.
Beginning May 25, 2005 (the "Promoter Termination Date"), Itau
shall no longer be required to allow, and AOLB shall not deploy,
Promoters or Supervisors in Itau bank branches, and Itau shall
no longer be obliged to maintain kiosks and any of the other
items described in Section 2(a)(iii) of Exhibit A to the MOA.
Pursuant to Section 2(a)(iii) of Exhibit A to the MOA, Itau
shall reimburse AOLB for the costs of such Promoters and
Supervisors up to the Promoter Termination Date, and shall
reimburse AOLB for any fees incurred in connection with AOLB's
termination of its agreement with the third party agency that
provided such Promoters and Supervisors.
As compensation for discontinuing the Promoters and Supervisors
prior to the end of the Quarter 8, Itau shall purchase from AOLB
R$200,000 of interactive marketing on the AOLB Service or the
Co-Branded Service (at Itau's option) during Quarter 8 at the
current card rate (notwithstanding the 20% discount provided
under Section 12.1.4 of the SMA).
In each of Quarters 9 through 11, Itau shall purchase
interactive marketing on the AOLB Service or the Co-Branded
Service (at Itau's option) during the then-current Quarter at
the then-prevailing card rate (notwithstanding the 20% discount
provided under Section 12.1.4 of the SMA). For each Quarter, the
amount of such interactive marketing shall be calculated as
follows:
(x) the number of Promoters guaranteed by Itau in such Quarter
multiplied by
(y) the average monthly costs paid by Itau per Promoter pursuant
to Section 2(a)(iii)(A) of Exhibit A of the MOA for Quarter 8 up
to the Promoter Termination Date multiplied by three (3) ),
adjusted by the IGPM-FGV as from the end of Quarter 8 until the
effective purchase of such interactive marketing from AOLB.
If you agree to the foregoing terms and conditions, please so
indicate by having an authorized representative sign and return
the attached copy of this letter.
CONTACT: America Online Latin America, Inc.,
Fort Lauderdale
Mario Lanzoni
954-689-3244
BANCO BRADESCO: Announces Shareholders' Dividend
------------------------------------------------
Banco Bradesco's Executive Vice President and Investor Relations
Director Jose Luiz Acar Pedro sent a letter dated June 1, 2005
to the Securities and Exchange Commission to disclose that the
Company's Board of Directors approved in a meeting held on
Wednesday the proposal submitted by the Board of Executive
Officers to pay the Company's stockholders R$0.048450 per common
stock and R$0.053295 per preferred stock on the first of July
this year. He wrote:
The Board of Directors of this Bank, in a meeting held as of
today, approved the proposal submitted by the Board of Executive
Officers to pay to the Company's stockholders, pursuant to the
Corporate By-laws and legal provisions, of interest on own
capital related to the month of June/2005, in the amount of
R$0.057000 per common stock and R$0.062700 per preferred stock,
benefiting the stockholders registered in the Company's records
on this date (June 1st, 2005).
The payment will be made on July 1st, 2005, at the net amount of
R$0.048450 per common stock and R$0.053295 per preferred stock,
after deduction of Withholding Income Tax of fifteen percent
(15%), except for the legal entity stockholders that are exempt
from such taxation, which will receive for the declared amount.
The respective Interests will be computed, net of Withholding
Income Tax, in the calculation of the mandatory dividends for
the year as provided in the Corporate By-Laws.
The Interests relating to the stocks under custody at CBLC -
Brazilian Company and Depository Corporation will be paid to
CBLC that will transfer to the stockholders through the
depository Brokers.
CONTACT: Banco Bradesco S.A.
Predio Novo - 4 ANDAR
Cidade de Deus
S/N, Osasco
Sao Paulo, 06029-900
Brazil
Phone: 55-11-3684-9229
Web site: http://www.bradesco.com.br
ELETROPAULO METROPOLITANA: AES Enters Agreement With MicroPlanet
----------------------------------------------------------------
MicroPlanet (TSXV: MP) announced Wednesday an agreement with AES
Corporation (NYSE: AES) to pursue a pilot program introducing
MicroPlanet's point-of-consumption voltage regulators on the
electric system of AES's subsidiary, Eletropaulo, in Sao Paulo,
Brazil. The voltage regulators improve energy efficiency and
distribution system reliability.
This innovative program is intended to demonstrate the
capabilities of MicroPlanet's High Voltage Regulator(TM)
(HVR(TM)) to reduce electric energy consumption by regulating
voltage used by customers to a level that optimizes energy
utilized by electrical equipment. In addition, the MicroPlanet
regulator is capable of either lowering or raising voltage to a
pre-programmed set point, which will enable Eletropaulo to
improve voltage-related reliability.
"Given the direct correlation between energy savings and
greenhouse gas (GHG) reduction, the ability of our technology to
improve energy efficiency is especially important in countries
like Brazil, which are party to the Kyoto Protocol", said Brian
Reidy, CEO of MicroPlanet. "We are thrilled to be taking the
first steps of what we hope will be a long term business
relationship with a global leader like AES Corporation, and one
of their largest utilities, Eletropaulo."
The total number of HVRs deployed in the pilot program will be
determined subject to ongoing conversations with the Brazilian
regulator and the results of testing being conducted by an
independent third party laboratory. Prior to installation of
units on the Eletropaulo distribution system, MicroPlanet and
Eletropaulo engineers will work together to devise a method for
monitoring and quantifying the amount of electricity conserved
as a result of the HVR deployments. The results of the
independent laboratory testing and data collected during the
field monitoring phase will be used to examine the potential for
future larger scale deployment on the Eletropaulo grid.
"Our products provide precision voltage regulation at the point
of consumption - the consumers' homes or businesses," said
Reidy. "This technical flexibility will allow our products to
play a pivotal role in the future to maximize the reliability
and efficiency of electrical grids throughout the world."
Based in Seattle, Washington, MicroPlanet manufactures and sells
products for electrical energy conservation and voltage
compliance. MicroPlanet's Low Voltage Regulator(TM) (LVR(TM))
and High Voltage Regulator(TM) (HVR(TM)) regulate the voltage
delivered to a business or home, reducing the amount of
electricity needed. The products also provide electric utilities
a new tool for peak load reduction, conservation, low voltage
mitigation and an interface for distributed generation. In 2005,
MicroPlanet plans to introduce its new Enterprise Voltage
Regulator(TM)s (EVR(TM) and EVR 3P(TM)), which will be sold
directly to large corporations for reducing electricity costs.
MicroPlanet is a trademark of MicroPlanet, Ltd. All other
trademarks and registered trademarks are those of their
respective companies.
AES is a leading global power company, with 2004 sales of $9.5
billion. AES operates in 27 countries, generating 44,000
megawatts of electricity through 124 power facilities and
delivers electricity through 15 distribution companies.
CONTACT: AES Corp.
Website: http://www.aesc.com
Phone: 703-522-1315
Eletropaulo Metropolitana Eletricidade de Sao Paulo S/A
Investor Relations Manager
Ms. Clarice Silva Assis
E-mail: clarice.assis@aes.com
Phone:(55 11) 2195-2229
Fax:(55 11) 2195-2503
GERDAU: Gerdau Ameristeel Appoints Mario Longhi as President
------------------------------------------------------------
The Board of Directors of Gerdau Ameristeel announced Wednesday
the appointment of Phillip Casey as Chairman of the Board in
addition to his continuing duties as the Chief Executive
Officer. Jorge Johannpeter, current Chairman of the Board, will
remain as a Director.
The Board has also approved the appointment of Mario Longhi to
assume the position of President, effective immediately. The
Board anticipates that Mr. Longhi will be elected to the Board
in due course and will succeed to the position of Chief
Executive Officer following an orderly transition of executive
responsibilities to be completed by January 1, 2006.
Mario Longhi will be joining the company following a
distinguished 23-year international career with the executive
team of Alcoa, recognized as the global benchmark in the
aluminum industry. Mr. Longhi recently served as a Vice
President of Alcoa, a member of Alcoa's Executive Council, and
Group President Global Extrusions and End Products. The
Extrusions and End Products business segment of Alcoa has
executive offices in Geneva, Switzerland, and global operating
facilities that provide aluminum products to the aerospace,
automotive, building and construction and general industrial
markets.
During his extensive international experience with Alcoa, Mr.
Longhi provided technical and professional leadership in the
construction, start up, market development, operation and change
management of Alcoa's global mining, refining, smelting,
rolling, extrusion, casting and forging and other product
manufacturing affiliates. As a Group President and member of the
Executive Council, Mr. Longhi actively participated in Alcoa's
strategic direction and policy decisions as well as the
continuous improvement cultural initiatives of Alcoa's Business
System. Mr. Longhi received bachelor and master graduate degrees
in metallurgical engineering from the University of Technology
Maua, Sao Paulo, Brazil.
After relinquishing his day-to-day leadership responsibilities,
Mr. Casey will continue to serve as Chairman and will transition
to a more strategic role guiding the company's growth plans and
corporate governance activities. Mr. Casey will also provide
guidance and counsel to Mr. Longhi as he becomes involved in
policy decisions and the affairs of steel industry trade
associations.
Jorge Johannpeter, Chairman of the Board of Gerdau Ameristeel,
commented: "With thoughtful diligence, the Board has assured the
continuity of strong leadership and stability for our
organization. Mario Longhi is a valuable addition to our
management team and brings tremendous depth of international
experience, proven leadership skills and dedication to the
principals of continuous cultural improvement. We are excited to
have Mario Longhi join our organization and look forward to his
professional contributions.
"We are also grateful for Mr. Casey's 11 years of dynamic
leadership during a period of challenging industry conditions
and rapid growth for the Company. We are confident that the
combination of his continued involvement and Mario Longhi's
executive leadership ability will provide a seamless transition
in the Company's continuing growth. Their complementary
strengths will assure successful management of the complexities
and competitive challenges of today's global steel industry."
About Gerdau Ameristeel
Gerdau Ameristeel is the second largest minimill steel producer
in North America with annual manufacturing capacity of over 8.4
million tons of mill finished steel products. Through its
vertically integrated network of 15 minimills (including one
50%-owned minimill), 16 scrap recycling facilities and 42
downstream operations, Gerdau Ameristeel primarily serves
customers in the eastern two-thirds of North America. The
Company's products are generally sold to steel service centers,
steel fabricators, or directly to original equipment
manufacturers (or "OEMs") for use in a variety of industries,
including construction, automotive, mining, cellular and
electrical transmission, metal building manufacturing and
equipment manufacturing. Gerdau Ameristeel's common shares are
traded on the Toronto Stock Exchange under the symbol GNA.TO and
on the New York Stock Exchange under the symbol GNA.
CONTACT: GERDAU AMERISTEEL
Investor Information:
Phillip E. Casey, Chairman of the Board, CEO
Tel: (813) 207-2225
E-mail: pcasey@gerdauameristeel.com
URL: www.gerdauameristeel.com
LIGHT SERVICOS: Regulator Authorizes $319M Debt Sale
----------------------------------------------------
Light Servicos de Eletricidade SA, a power distribution company,
is now preparing to sell BRL767 million (US$319 million) in
local convertible debt after power regulator Aneel authorized
the proposed transaction. According to Business News Americas,
the debt sale forms part of Light's US$1.5 billion debt-
restructuring program announced on May 18.
National development bank BNDES has agreed to buy debt worth
BRL727 million and will decide in 2008 whether to convert up to
50% of the debt into voting shares, which could give it up to a
20% stake in Light.
Meanwhile, Light will offer to minority shareholders the
remaining BRL40 million in debt.
The debt-restructuring program announced last month includes
extending maturities on more than US$600 million of short-term
debt Light owes 12 banks and investment funds, the postponement
to 2012 from 2007 the payment of US$160 million debt and a
US$400-million capital injection by company controller, France's
EDF.
But according to Light officials, the whole agreement hinges on
BNDES concluding the debt acquisition transaction.
The operation is expected wrap up by June 30.
CONTACT: LIGHT SERVICOS DE ELETRICIDADE S.A.
Avenida Marechal Floriano, 168
20080-002 Rio de Janeiro, Brazil
Phone: +55-21-2211-2794
Fax: +55-21-2211-2993
Home Page: http://www.lightrio.com.br
Contact:
Bo Gosta Kallstrand, Chairman
Michel Gaillard, President and CEO
Joel Nicolas, Executive Director, Operation
Paulo Roberto Ribeiro Pinto, Executive Director,
Investor Relations and CFO
TCP: Successfully Places BRL1 Bln Worth of 10-Yr. Debentures
------------------------------------------------------------
Phone company Telesp Celular Participacoes (TCP) concluded
Tuesday the issuance of BRL1 billion ($1=BRL2.43) worth of 10-
year non-convertible debentures, reports Dow Jones Newswires.
The debentures will pay 103.3% of the CDI interbank rate for the
first three years, stepping up to 104.3% from the fourth year
through maturity.
The issue was managed by Banco Itau BBA.
TCP Chief Financial Officer Arcadio Martinez said earlier that
the proceeds of the operation will be used to refinance existing
debt and extend the average maturity of the Company's debt.
As of March 31, the Company's net debt reached BRL4.28 billion,
up from BRL3.81 billion a year ago. Gross debt was BRL5.22
billion, of which 60.2% was denominated in foreign currency.
CONTACT: Telesp Celular Participacoes S.A.
Charles Edwards Allen
Investor Relations Office
Tel: 55 11 5105-1172
Email: ir@vivo.com.br
URL: http://www.vivo.com.br
=============
E C U A D O R
=============
PACIFICTEL: 285 Lawsuits Allege Millions in Claims
--------------------------------------------------
State-run fixed line operator Pacifictel is facing 285 lawsuits
with claims amounting to about US$157 million, reports Business
News Americas. Pacifictel's largest concern is the suit filed
against it by international carrier Latin American Telecom
(LAT), which is suing the operator for a total of US$108
million.
Other long distance operators that have filed lawsuits against
Pacifictel are Andesat, Uniplex, and Team Telecom, whose claims,
including LAT's, amount to US$122 million
The carriers sued Pacifictel because it stopped terminating
their traffic a year ago, claiming that they owed it outstanding
interconnection fees.
=====================
E L S A L V A D O R
=====================
BANCO AGRICOLA: Lanza Group to Handle Hispanic Marketing Efforts
----------------------------------------------------------------
Banco Agricola S.A. de El Salvador has chosen Atlanta based
Lanza Group, LLC to handle its USA marketing, advertising &
public relations effort. Banco Agricola is El Salvador's and
Central America's largest bank, and plans to aggressively market
its remittance service in key USA markets. Lanza Group, LLC is
an Atlanta headquartered Hispanic market advertising and public
relations firm.
Banco Agricola will promote the Banco Agricola brand in
California markets and the Banagricola brand in non-California
markets across the USA. Advertising and promotional efforts are
planned in select markets with large concentrations of
Salvadorans and Central American's.
"We are extremely impressed and pleased to be working with the
Lanza Group as we ramp up our Hispanic marketing efforts in the
USA," said Ernesto Magana, International Business Manager for
Banco Agricola. "The Lanza Group knows the USA Hispanic market
media landscape extremely well, they are experts at stretching
our media dollars, and know how to properly convey our message
to our target market."
Lanza Group Vice President and Creative Director Arturo Samayoa
said, "We are flattered that Banco Agricola has placed their
trust in our firm, we are looking forward to assisting and
guiding Banco Agricola's growth in the USA. The remittance
marketplace is very competitive, we intend to make Banco
Agricola's message stand out from the crowd and properly
communicate their message to their target audience. Our goal is
to make Banco Agricola synonymous with fast, convenient and
reliable, remittances to El Salvador and Central America.
Banco Agricola is celebrating its 50th anniversary this year,
the bank services over one million customers in El Salvador and
has the largest banking network in the country with over 60
branches and more than 300 ATM's. Almost one third of all money
transfers into El Salvador are handled by Banco Agricola.
Lanza Group, LLC is an Atlanta based, Hispanic Market
Advertising and Public Relations firm specializing in the
growing US Hispanic market. The Lanza Group provides bilingual &
bicultural services in: Broadcast, Creative, Internet, Media
Planning & Placement, PR & Media Relations, Print, Market
Research, Special Events & Promotions, and Translations.
CONTACT: LANZA GROUP, LLC
Ana Isabel Cabral
Tel: +1-404-350-0200
E-mail: acabral@lanzagroup.com
* EL SALVADOR: Fitch Rates Global Bonds 'BB+
--------------------------------------------
Fitch Ratings assigned a rating of 'BB+' to the US$375 million
of 30-year global bonds issued by the government of El Salvador
Wednesday. The Rating Outlook is Stable and reflects the
government's attempt to reverse the fiscal deterioration
observed during 2001-02.
El Salvador's ratings are underpinned by its monetary stability,
a good past track record on structural reforms and a modest
public sector debt burden of just over 40% of GDP. Political
uncertainty has been reduced following the victory of President
Saca in last year's presidential elections. Since taking office,
the Saca administration has worked with its coalition partner to
make progress on various pieces of legislation. These measures
have included tax reforms, abolishing the provision for early
retirement, imposing new excise duties on several goods, and
approving the US-Central America Free Trade Agreement (CAFTA) in
Congress. While the tax reform that was passed last year will
improve tax collection in 2005, Fitch believes that a further
tax increase package may be required to cope with the rising
pensions deficit and reduce the debt burden further. Owing to
the dollarization in El Salvador, Fitch believes that the
government's flexibility to cope with external shocks will
improve if public finances are solidified and the government
debt is reduced further.
Fitch believes that the biggest challenge facing El Salvador is
to foster higher growth. Annual GDP growth has averaged less
than 2% over the past five years, with the economy growing at
1.8% last year. The maquiladoras sector, which represents over
50% of the export base is facing significant competitive
pressures from China. The decline in maquila exports last year
and their continued sluggish growth during the first four months
of this year is a source of concern, as it will adversely impact
current external receipts, growth and employment situation in
the country. Fitch believes that El Salvador needs to diversify
its economic base to offset losses in the maquila sector. In
this regard, the possible implementation of the CAFTA could
improve medium-term export and growth outlook if it helps
promote new sectors of growth.
===============
H O N D U R A S
===============
* HONDURAS: IDB Approves $192.5M Debt Relief
--------------------------------------------
The Inter-American Development Bank's Board of Executive
Directors has approved full debt relief benefits for Honduras
under the enhanced initiative for Highly Indebted Poor Countries
(HIPC), the IDB announced Wednesday.
The IDB will provide irrevocable debt relief totaling $192.5
million ($133 million in net present value) for the period 2001-
2010. This contribution represents nearly one quarter of the
relief Honduras will receive from its multilateral and bilateral
creditors.
The IDB's support adds to the relief granted by the World Bank
and the International Monetary Fund, whose boards decided in
April that Honduras had reached HIPC's "completion point." The
Central American Bank for Economic Integration is also taking
part in this effort.
The IDB expects that by reducing Honduras' financial burden, the
country will be able to solidify its macroeconomic stability,
reduce its vulnerability to exogenous shocks and continue
implementing its Poverty Reduction Strategy (PRS).
The IDB started to grant Honduras interim debt relief in 2001,
assisting the country's efforts to reach several HIPC targets,
such as launching the PRS, strengthening its basic health
services, improving the quality of basic education and
increasing the efficiency and targeting of its social safety
network for vulnerable groups of its population.
Since Honduras reached HIPC's "decision point" in July 2000 the
IDB has approved more than $600 million in soft loans to help
finance key PRS programs as well as to modernize public sector
institutions and boost the Honduran economy's competitiveness.
CONTACT: Inter-American Development Bank
Website: http://www.iadb.org/
===========
M E X I C O
===========
GRUPO ELEKTRA: Shareholders Approve GDSs Program Termination
------------------------------------------------------------
Grupo Elektra S.A. de C.V. ("The Company"; BMV: ELEKTRA*; NYSE:
EKT; Latibex: XEKT), Latin America's leading specialty retailer,
consumer finance and banking and financial services company,
announced that the Extraordinary Shareholders' Meeting held
Wednesday approved, with the vote of 91.23% of the Company's
shares represented by minority and majority shareholders,
including Ricardo B. Salinas, to terminate the Global Depositary
Shares (GDSs) program that the Company has in the United States,
listed on the New York Stock Exchange (NYSE).
The Shareholders' Meeting made the resolution after an analysis
and discussion of the costs and benefits of continuing with the
GDS program in the capital markets of the United States.
The shareholders considered that the Mexican capital and debt
markets have become a robust source of financing in pesos, with
considerable levels of liquidity for investors. The shareholders
also anticipated that future investment plans of the Company
will be financed through the generation of its own cash flow and
if necessary through local debt markets. Finally, shareholders
commented that GDS have a relatively low trading volume.
At the same time, it was noted that interested parties that are
legally able, may continue to invest in the Company through
shares listed on the Mexican Stock Exchange (Bolsa Mexicana de
Valores (BMV)). The company considers that The Mexican Stock
Exchange has an Index that reflects the macroeconomic stability
and economic growth of the country, and has a legal framework
with the purpose of protecting all shareholders.
In order to implement the Shareholders' Meeting resolution, the
Company will immediately take the following actions: i) notify
the NYSE and The Bank of New York (BONY) of the termination of
the GDS program, ii) amend the Deposit Agreement to reduce to 60
days the period for exchanging GDSs for common shares, of which
BONY should notify the GDS holders, and iii) amend the Company's
Form F-6 (registration of GDSs) to reduce the number of GDSs to
zero.
The trading of the GDSs in the United States shall continue for
the next 30 days from the date on which BONY notifies the
termination of the Deposit Agreement to GDS holders. During such
period, GDS holders may exchange them for common shares that are
listed on the BMV.
After the 30-day period, the NYSE will suspend trading of the
GDSs in the United States. It is anticipated that the NYSE will
request the delisting of the GDSs with the United States
Securities and Exchange Commission (SEC), and the GDS holders
will have 60 days to exchange them for common shares that are
traded on the BMV.
GDS holders that wish to exchange them for common shares should
request that their brokers or dealers in the United States
perform all acts necessary so that the common shares received
pursuant to the exchange are held by a securities intermediary
in Mexico.
Upon the expiration of the 60-day period, BONY will be entitled
to sell the remaining common shares, corresponding to GDSs that
were not surrendered, in the BMV and distribute the proceeds of
the sale to holders.
In the event that there are less than 300 United States resident
shareholders in the future, the Company could request the
cancellation of its securities registry in the United States. In
this case, Grupo Elektra would cease to have reporting
obligations with SEC and realize a substantial cost savings
related to this registry. The Company noted that the
registration with the SEC and the listing with the NYSE are
separate and independent events.
CONTACT: Investor and Press Inquiries:
Mr. Esteban Galindez, CFA
Director of Finance & IR
Grupo Elektra, S.A. de C.V.
Phone: +52-(55)-8582-7819
Fax: +52-(55)-8582-7822
e-mail: egalindez@elektra.com.mx
GRUPO IUSACELL: Shareholders OK Termination of ADRs Program
-----------------------------------------------------------
Grupo Iusacell, S.A. de C.V., (BMV: CEL, NYSE: CEL), announced
Wednesday that the Extraordinary Shareholders' Meeting held
today approved, by the vote of 96.70% of the Company's shares
represented by minority shareholders, MovilAccess SA de CV and
Ricardo B. Salinas, the termination of the American Depositary
Receipts (ADRs) program that the Company has in the United
States, which ADRs are listed in the New York Stock Exchange
(NYSE).
The Shareholders' Meeting made the decision after making an
analysis and discussing the costs and benefits of continuing
with the ADR program in the capital markets in the United
States. Among other factors, the shareholders based their
decision on the limited activity of the shares of the Company in
the U.S. capital markets.
The shareholders considered that the Mexican capital markets
have become a strong source for peso financings, with lower
costs for the Company compared with the ADR program, at the same
time offering high levels of liquidity to investors.
The Company believes that the Mexican Stock Market Exchange
offers a legal framework that emphasizes protection of all
shareholders.
In order to implement the resolution of the Shareholders'
Meeting, the Company will immediately notify the NYSE and The
Bank of New York of the resolution to terminate the ADR program,
and move to amend the ADR Deposit Agreement to reduce to 60 days
the period for exchanging ADRs for shares, which The Bank of New
York will notify to the ADR holders.
The trading of the ADRs will continue for the next 90 days from
the date on which The Bank of New York notifies to the ADR
holders of the termination of the ADR program. In addition,
during such period, ADR holders may continue to exchange ADRs
for shares, which trade on the Mexican Stock Exchange.
We anticipate that after the 90-day period, the NYSE will
suspend trading of the ADRs. We also anticipate that the NYSE
will request the delisting of the ADRs to the United States
Securities and Exchange Commission (SEC), and the ADR holders
will have 60 days to exchange their ADRs for shares. ADR holders
should contact their brokers to carry out this exchange.
Upon the expiration of the 60-day period, The Bank of New York
will have the right to sell the shares underlying any untendered
ADRs and distribute the proceeds of the sale to holders.
In the event that there were less than 300 United States
resident shareholders, the Company would have the ability to
request the deregistration of the Company's securities in the
United States.
The Company noted that the registration with the SEC and the
listing with the NYSE are separate and independent. Therefore,
the Company will comply with its reporting obligations with the
SEC for as long as it remains registered with such authority.
The Company believes that this decision taken by its
Shareholders does not affect in any form the negotiations with
creditors that have been taking place, and reiterates its
commitment to reach a comprehensive restructuring agreement as
soon as possible.
About Iusacell
Grupo Iusacell, S.A. de C.V. (Iusacell, NYSE and BMV: CEL) is a
wireless cellular and PCS service provider in Mexico
encompassing a total of approximately 92 million POPs,
representing approximately 90% of the country's total
population. Independent of the negotiations towards the
restructuring of its debt, Iusacell reinforces its commitment
with customers, employees and suppliers and guarantees the
highest quality standards in its daily operations offering more
and better voice communication and data services through state-
of-the-art technology, such as its new 3G network, throughout
all of the regions in which it operates.
CONTACT: Grupo Iusacell, S.A. de C.V.
Jose Luis Riera K., Chief Financial Officer
J.Victor Ferrer, Finance Manager
E-mail: vferrer@iusacell.com.mx
Tel: +5255-5109-5927
GRUPO TMM: Lands Long-Term Contract With Pemex
----------------------------------------------
Grupo TMM, S.A. (NYSE:TMM)(BMV:TMMA), a Mexican multi-modal
transportation and logistics company, announced Wednesday that
its Specialized Maritime division was awarded a five-year
product tanker contract with Pemex, representing approximately
$47.5 million in revenue. The Company is currently participating
in a second bid for an additional five-year contract with Pemex.
Javier Segovia, president of TMM, commented, "Although we will
not know if we have won the second bid for a couple of weeks,
TMM is confident that it has presented a very competitive bid
for this additional contract. As stated before, we recently
participated in and won a bidding process for the short-term
chartering of three additional product tankers to Pemex, which
will represent an additional $3 million in EBITDA for 2005, and
which reinforces TMM's competitive position in the coastline
distribution of Pemex products. Pemex has also indicated their
plans to renew their product tanker fleet through the bid of
long-term charters of Mexican flag vessels, and TMM plans to
participate in this process now underway."
Headquartered in Mexico City, TMM is a Latin American multi-
modal transportation Company. Through its branch offices and
network of subsidiary companies, TMM provides a dynamic
combination of ocean and land transportation services. Visit
TMM's web site at www.grupotmm.com. The site offers
Spanish/English language options.
CONTACT: Grupo TMM S.A.
Juan Fernandez
Phone: 011-525-55-629-8778
Email: juan.fernandez@tmm.com.mx
Brad Skinner
Investor Relations
Phone: 011-525-55-629-8725
203-247-2420
Email: brad.skinner@tmm.com.mx
GRUPO TMM: Serrano Plans to Increase Equity Stake
-------------------------------------------------
Grupo TMM, S.A. (NYSE:TMM)(BMV:TMM A)("TMM"), a Mexican multi-
modal transportation and logistics Company, announced Wednesday
that the Serrano Family, and entities owned or controlled by
them, intend to purchase significant additional shares of TMM's
ADRs on the open market during the next several months. Due to
the Serrano Family's affiliate status, the shares to be
purchased would be restricted under Rule 144 under the
Securities Exchange Act of 1933.
The Company is extremely pleased that the Serrano Family has
this much confidence in the future prospects of TMM to purchase
additional shares at this time.
Chairman and CEO of TMM Jose F. Serrano, commented, "I believe
there exists great value in our Company, and I continue to
believe that TMM's stock is a prudent investment based on its
improving financial condition and operating momentum. I can
think of no better investment for my family right now than TMM.
We are committed to building upon the Company's expertise and
operations, and in developing and executing a business plan for
TMM's next phase. These purchases are reflective of our
commitment to the future of TMM."
TV AZTECA: Shareholders Approve Termination of ADRs Program
-----------------------------------------------------------
TV Azteca, S.A. de C.V. (BMV: TVAZTCA; NYSE: TZA; Latibex:
XTZA), one of the two largest producers of Spanish-language
television programming in the world, announced that the
Extraordinary Shareholders' Meeting held Wednesday approved, by
the vote of 99.85% of the Company's shares represented by
minority shareholders and Ricardo B. Salinas, to terminate the
American Depositary Receipts (ADRs) program that the Company has
in the United States, listed on the New York Stock Exchange
(NYSE).
The Shareholders' Meeting made the decision after an analysis
and discussion of the costs and benefits of continuing with the
ADR program in the capital markets of the United States.
The shareholders considered that the Mexican capital and debt
markets have become a robust source of financing in pesos, with
considerable levels of liquidity for investors. The shareholders
also anticipated that future investment plans of the Company
will be financed through the generation of its own cash flow and
if necessary through local debt markets.
At the same time, it was noted that interested parties that are
legally able, may continue to invest in the Company through
shares listed on the Mexican Stock Exchange (Bolsa Mexicana de
Valores (BMV)). The company considers that the Mexican Stock
Exchange has an index that reflects the macroeconomic stability
and economic growth of the country, and has a legal framework
with the purpose of protecting all shareholders.
In order to implement the Shareholders' Meeting resolution, the
Company will immediately take the following actions: i) notify
the NYSE and The Bank of New York (BONY) of the termination of
the ADR program, ii) amend the Deposit Agreement to reduce to 60
days the period for exchanging ADRs for CPOs, of which BONY
should notify the ADR holders, and iii) amend the Company's Form
F-6 (registration of ADRs) to reduce the number of ADRs to zero.
The trading of the ADRs in the United States shall continue for
the next 30 days from the date on which BONY notifies the
termination of the Deposit Agreement to ADR holders. During such
period, ADR holders may exchange ADRs for CPOs that are listed
on the BMV.
After the 30-day period, the NYSE will suspend trading of the
ADRs in the United States. It is anticipated that the NYSE will
request the delisting of the ADRs with the United States
Securities and Exchange Commission (SEC), and the ADR holders
will have 60 days to exchange their ADRs for CPOs that are
traded on the BMV.
ADR holders that wish to exchange their ADRs for CPOs should
request that their brokers or dealers in the United States
perform all acts necessary so that the CPOs received pursuant to
the exchange are held by a securities intermediary in Mexico.
Upon the expiration of the 60-day period, BONY will be entitled
to sell the remaining CPOs, corresponding to ADRs that were not
surrendered, in the BMV and distribute the proceeds of the sale
to holders.
In the event that there are less than 300 United States resident
shareholders in the future, the Company could request the
cancellation of its securities registry in the United States. In
this case, TV Azteca would cease to have reporting obligations
with SEC and realize a substantial cost savings related to this
registry. The Company noted that the registration with the SEC
and the listing with the NYSE are separate and independent
events.
TV Azteca is one of the two largest producers of Spanish
language television programming in the world, operating two
national television networks in Mexico, Azteca 13 and Azteca 7,
through more than 300 owned and operated stations across the
country. TV Azteca affiliates include Azteca America Network, a
new broadcast television network focused on the rapidly growing
US Hispanic market, and Todito.com, an Internet portal for North
American Spanish speakers.
CONTACT: TV Azteca, S.A. de CV
Phone: 55 3 099 1313
Web Site: http://www.tvazteca.com.mx
WIRE ROPE: Moody's Assigns B2 Rating to Secured Term Loan
---------------------------------------------------------
Approximately $165 Million of Rated Debt
Moody's Investors Service assigned a B2 rating to the proposed
$165 million secured (first lien on fixed assets) term loan
offered by Wire Rope Corporation of America, Inc. ("WRCA") in
connection with an acquisition and refinancing. Moody's also
assigned the company a B2 senior implied rating. The rating
outlook is stable. This is the first time Moody's has rated
WRCA.
WRCA is acquiring the stock of Aceros Camesa, S.A. de C.V.,
Camesa Inc., and other affiliates (collectively, "Camesa") for
$116 million plus a working capital adjustment. WRCA is the
largest producer of wire rope in North America and Camesa is a
leading Mexican producer of high-carbon wire, wire rope, and
electromechanical cables. Term loan proceeds and a portion of
WRCA's new revolving credit facility will also be used to
refinance WRCA's existing debt, to fund a $15 million
distribution to WRCA's shareholders, and to pay associated fees.
The following ratings were assigned:
B2 to the proposed $165 million secured term loan due 2011, and
B2 senior implied rating.
The long-term ratings reflect the cyclicality of the industries
WRCA serves, a relatively small and slowly growing US and global
market for wire rope products, and intense global competition,
with imports accounting for about half of US wire rope
consumption. These factors have led to the downsizing,
consolidation, and, in some cases, exit of North American wire
rope producers and helped push WRCA into Chapter 11 in 2002.
While WRCA's turnaround since emerging from bankruptcy in 2003
has been impressive, the contrast between recent strong results
and the longer history of declining sales and negligible
operating income makes Moody's cautious about the sustainability
of the company's improvement. This concern is heightened by the
much higher leverage the company will have following this
refinancing, ongoing cost pressures for raw materials, energy
and freight, the need to make higher-than-usual capital
expenditures for several years, the risks associated with the
integration of Camesa, and the potential for additional
shareholder distributions.
The ratings are supported by the fundamental cost reductions and
efficiency improvements the new WRCA management team has
achieved over the last two years and anticipate that additional,
though perhaps modest, cost savings and margin improvement will
be realized from the integration of Camesa and WRCA. Camesa will
diversify the company's product base by adding low cost
capabilities in general purpose wire rope and tire bead, as well
as specialized products such as prestressed concrete strand and
electromechanical cable. Moody's notes that Camesa's financial
performance has been more stable than WRCA's. Margins at both
companies have increased considerably over the last two years,
as the companies have been successful in raising selling prices
by an amount greater than steel costs, one factor that has
helped propel earnings to record levels.
Inherent in Moody's ratings is the belief that the current
industry environment and the company's recent financial results
will not endure. On a pro forma basis, EBITDA for the 12 months
ended December 31, 2004, was $36.3 million (Moody's uses the
LIFO inventory method for reporting purchases and costs). Our
ratings consider a decline to $25 - $30 million as a
possibility. Given intense global competition, this level of
EBITDA could, we believe, persist if there was a severe downturn
in the company's key end-markets of mining, oil and gas, and
construction, leading to lower sales volumes and a decoupling of
selling prices and raw material costs.
WRCA's pro forma total debt will be $197.5 million and pro forma
2004 sales were $270 million. Since emerging from Chapter 11 in
2003, WRCA had operated with approximately $40 million of debt
and capitalized leases, so the increased leverage is
uncomfortably large in proportion to pro forma revenue (73%) and
EBITDA (5.4x). Based on 2004 results, EBITDA to pro forma
interest will be 1.7x. Initially, Moody's expects interest
expense and capex to be $21 million and $8 million,
respectively, and taxes and working capital usage could be
another $8 million, leading to breakeven free cash flow if the
$36 million of 2004 EBITDA is used as a base. This highlights
the importance of WRCA effecting a smooth integration of Camesa
and rapid realization of synergies and cost savings. The company
believes run-rate synergies in the first year after the
acquisition will be approximately $7 million.
The stable outlook reflects favorable current market dynamics,
adequate liquidity, WRCA's strong market position for highly
engineered and hard-to-manufacture wire rope, and the
manufacturing and marketing synergies stemming from the Camesa
acquisition. The ratings or outlook could be favorably impacted
by debt reduction, market share gains, further cost reductions,
and evidence that recent results can be sustained throughout a
business cycle, exemplified by achieving a ratio of free cash
flow to debt of 7-8%. Conversely, the ratings or outlook could
be pressured by a slippage in EBITDA below the $25 - $30 million
level, free cash flow to debt of less than 2%, deterioration of
liquidity, significant integration challenges at Camesa, or the
pursuit of additional debt-financed acquisitions.
The secured term loan was rated the same as the senior implied
rating due to the high proportion of total liabilities
represented by the term loan and the benefits provided by
subsidiary guarantees and a first-priority lien on all of the
subsidiary guarantors' fixed assets and a second-priority lien
on domestic inventory and accounts receivable. Moody's has not
been asked to rate WRCA's proposed $45 million senior secured
revolving credit facility. The credit facility is secured by a
first lien on inventory and accounts receivable and a second
lien on the assets securing the term loan.
At closing, the entire $45 million credit facility is expected
to be available. Availability is governed by eligible accounts
receivable and domestic inventory. The credit facility includes
a $15 million sublimit for letters of credit. Unused initial
availability will be about $1.5 million after taking into
account drawings of $32.5 million and letter of credit usage of
around $11 million. The credit facility matures in April 2008.
Following the Camesa acquisition, WRCA will be the largest wire
rope producer in the Western Hemisphere and a leading producer
of high-carbon steel wire in the US and Mexico. It will own 8
manufacturing facilities in the US and Mexico and 12
distribution centers. WRCA is headquartered in St. Joseph,
Missouri.
=======
P E R U
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MINERA VOLCAN: Workers End Strike Following Accord
--------------------------------------------------
Unionized workers at Volcan Compania Minera SAA's Cerro de Pasco
and Yauli units were expected to lift the strike Thursday after
reaching an agreement with the zinc-lead miner. Business News
Americas recalls that the workers went on strike a week ago to
back demands for a bonus tied to profits from the Company.
The Company argued it doesn't legally have to make such payments
but has agreed to make a special payment.
"We agreed to pay 1,000 soles ($1=PEN3.2525) to each worker," a
company spokesman said.
Volcan reported full year 2004 net income of PEN71.3 million
($1=PEN3.2535) compared with a loss of PEN25.2 million in the
previous year, on revenues of PEN620.6 million, up from PEN458.9
million in 2003.
The strong growth in sales was tied to higher international
prices for metals and by an improvement in production volumes.
Volcan's mining operations are located in the central Andean
departments of Junin and Pasco.
CONTACT: Volcan Compania Minera S.A.A.
Av Gregorio Escobedo 710 Jesus Maria
Lima, Peru
Phone: (51-1) 219-4000
Fax: (51-1)261-9716
E-mail: contact@volcan.com.pe
=====================
P U E R T O R I C O
=====================
DORAL FINANCIAL: Ratings Lowered; CreditWatch Negative Continues
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term ratings
on Doral Financial Corp. (Doral; NYSE: DRL), including Doral's
long-term counterparty credit rating, which was lowered to 'BB'
from 'BB+'. The ratings remain on CreditWatch Negative, where
they were placed on April 19, 2005.
"The ratings actions follow Doral's announcement that it is in
technical default with two of its bond indentures as a result of
not filing timely first-quarter financial statements," said
Standard & Poor's credit analyst Michael Driscoll. "The debt is
question totals about $1 billion. The trustee or the holders of
25% of the outstanding principal amount of the securities can
accelerate the maturity of the debt after providing Doral with a
notice of default."
While the technical default is not in and of itself the reason
for the rating action, it adds a significant amount of
uncertainty to an already adverse operating environment.
Furthermore, the delayed filing of quarterly results could
result in further defaults with some other lenders under some of
Doral's financing agreements. Doral is currently in negotiations
with those lenders to obtain waivers related to their financial
reporting problems.
In the midst of a financial restatement due to the revaluation
of their interest-only strips, Doral is under an informal SEC
investigation and is a defendant in numerous class-action
lawsuits. With all this negative attention, regulators and
accountants alike have been scrutinizing all aspects of Doral's
business.
The continuation of the CreditWatch listing reflects Standard &
Poor's concerns over regulatory and legal issues and the extent
to which these issues will affect profitability going forward.
Once first-quarter financial statements are released, Standard &
Poor's will reassess Doral's business position, including its
profitability, funding stability, and internal controls.
Primary Credit Analyst: Michael Driscoll, New York (1) 212-438-
1787; michael_driscoll@standardandpoors.com
Secondary Credit Analyst: Victoria Wagner, New York (1) 212-438-
7406; victoria_wagner@standardandpoors.com
DORAL FINANCIAL: Investors File Lawsuit to Recover Losses
---------------------------------------------------------
Notice is hereby given by Glancy Binkow & Goldberg LLP that a
Class Action lawsuit was filed in the United States District
Court for the Southern District of New York on behalf of a class
(the "Class") consisting of all persons or entities who
purchased or otherwise acquired securities of Doral Financial
Corporation ("Doral" or the "Company") (NYSE:DRL), between
October 10, 2002 and April 19, 2005, inclusive (the "Class
Period"
A copy of the Complaint is available from the court or from
Glancy Binkow & Goldberg LLP. Please contact us by phone to
discuss this action or obtain a copy of the Complaint at (310)
201-9150 or Toll Free at (888) 773-9224, by email at
info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Doral and certain of the Company's
executive officers with violations of federal securities laws.
Plaintiff claims defendants' omissions and material
misrepresentations during the Class Period artificially inflated
Doral's stock price, inflicting damages on investors. Doral is a
diversified financial services company engaged in mortgage
banking, commercial banking, institutional broker-dealer
activities and insurance agency activities. The Complaint
alleges that during the Class Period defendants failed to
disclose and/or misrepresented material adverse facts, including
that: (a) the Company was using overly aggressive and
unrealistic assumptions to value its derivative portfolio of
interest-only strips ("IO Strips") used to hedge its mortgage
portfolio against interest rate fluctuations; (b) the Company
was using fraudulent accounting practices and materially
overstated its net income, net gain on mortgage loan sales and
net capital; and (c) the Company was using ineffective risk
management and hedging strategies against the increasing risk of
rising interest rates.
On January 19, 2005, the Company for the first time warned of
potential trouble with its hedging strategy against interest
rate changes through its use of a derivative portfolio of IO
Strips. On March 15, 2005, Doral filed its Annual Report with
the SEC in which the Company disclosed for the first time its
use of overly aggressive assumptions in valuing its IO Strips
portfolio.
On March 16, 2005, a Wachovia Capital Markets analyst downgraded
Doral to " underperform" and cut his fiscal year earnings-per-
share estimate after reviewing the Company's annual report. The
next day, a Merrill Lynch analyst downgraded Doral stock and cut
his fiscal year earnings-per-share estimates. In response to the
Company's disclosure, Standard & Poor's lowered its outlook for
Doral's long-term debt from stable to negative, expressing
"concern over the sustainability of the Company's business
model." In a matter of days Doral stock plummeted from $38.29
per share to $21.50 per share in extremely heavy volume.
Plaintiff seeks to recover damages on behalf of Class members
and is represented by Glancy Binkow & Goldberg LLP, a law firm
with significant experience in prosecuting class actions, and
substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move
the Court, not later than June 20, 2005, to serve as lead
plaintiff; however, you must meet certain legal requirements. If
you wish to discuss this action or have any questions concerning
this Notice or your rights or interests with respect to these
matters, please contact Michael Goldberg, Esquire, of Glancy
Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los
Angeles, California 90067, by telephone at (310) 201-9150 or
Toll Free at (888) 773-9224 or by e- mail to info@glancylaw.com.
CONTACT: GLANCY BINKOW & GOLDBERG LLP
Lionel Z. Glancy
Michael Goldberg
Phone: (310) 201-9150
(888) 773-9224
Email: info@glancylaw.com
Website: www.glancylaw.com
=============
U R U G U A Y
=============
NBC: Performance Improvement Prompts Fitch Ratings Upgrade
----------------------------------------------------------
Fitch Uruguay has upgraded its local and global ratings on
state-owned bank Nuevo Banco Comercial (NBC) to B+ and AA- from
B and A+ respectively, reports Business News Americas.
The outlook on the ratings is stable.
Fitch said it upgraded the bank's ratings in light of NBC's good
performance considering that it was created from the liquidated
assets of three local banks, which may have carried financial
burdens due to the bank's prolonged inactivity.
NBC was created in March 2003 from the assets of local banks
Banco Comercial, Banco Montevideo and Banco Caja Obrera. The
three banks were intervened and suspended as a result of a run
on deposits during the country's 2002 financial crisis.
Fitch said it also took into account NBC's healthy liquidity and
capital, as well as its positioning within the Uruguayan
financial system.
NBC, which has 48 branches throughout Uruguay, currently ranks
fourth in the country's financial system in terms of assets and
savings, and comes second in the private sector.
The government is planning to privatize NBC by the end of the
year. Reports have it that the operation has attracted the
interest of three interested bidders.
***********
S U B S C R I P T I O N I N F O R M A T I O N
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Copyright 2005. All rights reserved. ISSN 1529-2746.
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