/raid1/www/Hosts/bankrupt/TCRLA_Public/050628.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, June 28, 2005, Vol. 6, Issue 126
Headlines
A R G E N T I N A
AEROLINEAS ARGENTINAS: Files Lawsuit Against A.P.T.A. Board
AMERICAN FALCON: Varsavsky in Talks With Owner to Buy Airline
AOL LATIN AMERICA: Files Chapter 11 Bankruptcy Petition
AOL LATIN AMERICA: Case Summary & 20 Largest Unsecured Creditors
AOL LATIN AMERICA: Board Approves Workforce Reduction
BISEL: Banco Nacion to Make Bidding Rules Available Next Month
CUFLEX S.R.L.: Court Designates Trustee for Liquidation
DI YORIO: Reorganization Proceeds to Bankruptcy
ITALMARMI S.A.: Enters Bankruptcy on Court Orders
METGON S.R.L.: Liquidates Assets to Pay Debts
NEWEL S.A.: Court Rules for Liquidation
PROALBA S.R.L.: Gets Court Approval for Reorganization
PROFOS S.A.: Enters Bankruptcy on Court Orders
SCP: Gets Clearance to Sell Energy Unit to Southern Cross
SOFT 2100: Court Grants Reorganization Plea
* BUENOS AIRES: Moody's Upgrades Local Currency Debt
B E R M U D A
LOM HOLDINGS: Buys Back Own Shares
LORAL SPACE: Loral Skynet Launches Skyreach IP Services for Asia
B R A Z I L
BANCO VOTORANTIM: Opens $100M Overseas Bond Issue
SADIA S.A.: Board Authorizes Payment of Interest on Equity
VARIG: Files Consolidated Balance Sheet as of March 31
C H I L E
SR TELECOM: CEO Delivers Bullish Outlook for 2nd Half
C O L O M B I A
PAZ DEL RIO: Minority Shareholders Seen Selling Stakes
M E X I C O
GRUPO IUSACELL: Trading of ADRs on NYSE to be Suspended
TV AZTECA: Trading of ADRs on NYSE to Be Suspended on July 18
TV AZTECA: Withdraws Legal Charges Against Finance Minister
VITRO: The Bank of New York Appoints Successor Depositary Bank
V E N E Z U E L A
PDVSA: Western Division Produces Below Target
- - - - - - - -
=================
A R G E N T I N A
=================
AEROLINEAS ARGENTINAS: Files Lawsuit Against A.P.T.A. Board
-----------------------------------------------------------
Aerolineas Argentinas has given instructions to their criminal
attorneys for a lawsuit for libel and slander to all members of
the Board of Directors of the Association of Technical
Aeronautical Personnel (A.P.T.A.).
This decision was adopted because of the serious accusations
stated in several publications and letters to high members of
the National Government, where the members of the Board of
Directors of Aerolineas Argentinas are maliciously and falsely
accused, thus being these accusations defamation.
These false accusations are stated in a letter that the Board of
APTA has sent on the last 7th day of the month of June to the
Secretary of Transport of the Nation, Engineer Ricardo Jaime,
accusing him of performing a kind of lobby on behalf of our
Company, which was published in all mass media on June 16th.
The criminal lawsuit included the following members of the Board
of Directors of APTA, whose activities against the interests of
Aerolineas Argentinas and their business group had always the
implicit support of the Subsecretary of Aerocommercial
Transport, Ricardo A. Cirielli.
To the Attached Secretary in charge of the General Secretary of
Inner Affairs Juan Pappalardo and to Claudio Morales, Daniel de
la Fuente, Victor Cepeda, Eduardo Vilar, Osvaldo Calarco, Sergio
Rebecchi, Gabriel Morselli, Juan Servente, Pablo Prendes, Luis
Prado, Miguel Barzola, Daniel Gonzalez, Jorge Cejas and Jorge
Becce.
The Board of Directors of Aerolineas Argentinas was also
studying the possibility of starting legal actions against the
persons hereinbefore mentioned; by virtue of the economic
damages that their irresponsible statements are causing to the
development of all business activities of the Aerolineas
Argentinas group.
CONTACT: AEROLINEAS ARGENTINAS
Torre Bouchard 547, 1106 Buenos Aires, ARGENTINA
Phone: (54-11) 4310-3000
Fax: (54-11) 4310-3585
E-mail: volar@aerolineas.com.ar
Web site: www.aerolineas.com.ar
AMERICAN FALCON: Varsavsky in Talks With Owner to Buy Airline
-------------------------------------------------------------
Argentine businessman Martin Varsavsky is now in talks with
Fayez Chehab, owner of local airline American Falcon, to buy the
airline.
American Falcon asked for bankruptcy protection on May 30,
declaring ARS29 million in liabilities and ARS45 million in
assets. Reports had it that the Company embarked on this legal
process with a view to selling the airline in the future. Chehab
has also been in talks with possible purchasers from Europe.
American Falcon, which is 51% owned by Chehab and 49% by foreign
investors, is virtually paralyzed. It is not covering any
domestic routes and only flies to Punta del Este (Uruguay)
occasionally.
CONTACT: AMERICAN FALCON
Av. Santa Fe 1713 Piso 4§
(C1060ABD) -Ciudad Autonoma de Buenos Aires
Telefono: (5411) 4811-0215/0576/0478/9078
E-mail: american@americanfalcon.com.ar
AOL LATIN AMERICA: Files Chapter 11 Bankruptcy Petition
-------------------------------------------------------
America Online Latin America, Inc. (Pink Sheets:AOLA) announced
Friday that it has filed a voluntary petition in the United
States Bankruptcy Court, for the District of Delaware under
chapter 11 of title 11 of the U.S. Bankruptcy Code.
AOLA's filing of a Bankruptcy Petition resulted in a default
under the $160 million senior convertible notes issued by AOLA
to Time Warner Inc.
The following subsidiaries of AOLA also filed voluntary
petitions: AOL Puerto Rico Management Services, Inc., America
Online Caribbean Basin, Inc. and AOL Latin America Management
LLC.
AOL Latin America's other subsidiaries will continue normal
operations, and its subscribers will continue to receive the
America Online branded service without interruption.
America Online Latin America, Inc. (Pink Sheets:AOLA) is the
exclusive provider of AOL-branded services in Latin America.
CONTACT: AOL Latin America, Inc.
Fort Lauderdale
Martin Lanzoni
Phone: 954-689-3244
AOL LATIN AMERICA: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Lead Debtor: America Online Latin America, Inc.
6600 North Andrews Avenue, Suite 400
Fort Lauderdale, Florida 33309
Bankruptcy Case No.: 05-11778
Debtor affiliates filing separate chapter 11 petitions:
Entity Case No.
------ --------
AOL Latin America Management LLC 05-11779
AOL Puerto Rico Management Services, Inc. 05-11780
America Online Caribbean Basin, Inc. 05-11781
Type of Business: America Online Latin America offers AOL-
branded Internet service in Argentina, Brazil,
Mexico, and Puerto Rico, as well as localized
Content and online shopping over its
Proprietary network. Subscribers also get
access to popular AOL services such as instant
messaging, online chat, e-mail, and
personalized homepages. In addition, the
company maintains localized Internet portals
serving users in about 20 countries. In total
AOLA has more than 460 thousand members.
Principal shareholders in AOLA are Cisneros
Group, one of Latin America's largest media
firms, Brazil's Banco Itau, and Time Warner,
through America Online. See
http://www.aola.com/
Chapter 11 Petition Date: June 24, 2005
Court: District of Delaware
Judge: Mary F. Walrath
Debtors' Counsel: Edmon L. Morton, Esq.
Margaret B. Whiteman, Esq.
Pauline K. Morgan, Esq.
Young, Conaway, Stargatt & Taylor, LLP
The Brandywine Building
1000 West Street, 17th Floor
P.O. Box 391
Wilmington, Delaware 19899
Tel: (302) 571-6600
Fax: (302) 571-1253
Consolidated Financial Condition as of March 31, 2005:
Total Assets: $28,500,000
Total Debts: $181,774,000
Consolidated List of Debtors' 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Time Warner, Inc. Loan Agreement $160,000,000
One Time Warner Center plus accrued
New York, NY 10019 interest
Fax: (212) 484-7151
America Online, Inc. Trade Debt $1,562,389
22000 AOL Way
Dulles, VA 20166
Fax: (703) 265-8433
Cypress Center Office Lease $640,350
CYP Owner LLC
One Independent Drive, Suite 114
Jacksonville, FL 32202
Fax: (904) 358-5479
HR Real Estate Management Inc. Office Lease $164,300
GE Capital Equipment Lease $47,700
Addecco Trade Debt $32,944
Eduardo Hauser Trade Debt $30,591
Xerox Capital Services LLC Equipment Lease $28,450
Bruno Harig & Associates Trade Debt $13,020
Plaza las Americas Lease $72,000
Plaza Carolina Lease $21,000
Plaza del Sol Lease $22,000
United Healthcare United Health $17,505
Insurance
Plaza del Caribe Lease $4,000
Kelly Temporary Services Trade Debt $8,329
Fiddler, Gonzalez & Rodrigues Trade Debt $7,619
Browne of Atlanta Trade Debt $7,619
Ultimate Media Trade Debt $6,500
Kmart Corporation Trade Debt $3,636
Creative Graphics Group Trade Debt $3,425
AOL LATIN AMERICA: Board Approves Workforce Reduction
-----------------------------------------------------
The Board of Directors of America Online Latin America, Inc.
("AOLA") approved on June 16, 2005 a workforce reduction in
Argentina. AOLA will terminate all of the employees of its
Argentine call center operations. AOLA expects to complete this
workforce reduction of 180 persons by the end of June 2005. AOLA
expects to incur severance charges related to the Argentine
workforce reduction of approximately $710,000 in the second
quarter of 2005. AOLA implemented this workforce reduction in
light of its financial condition.
CONTACT: AOL Latin America, Inc.
Fort Lauderdale
Martin Lanzoni
Phone: 954-689-3244
BISEL: Banco Nacion to Make Bidding Rules Available Next Month
--------------------------------------------------------------
Federal bank Banco Nacion will now embark on its second attempt
to sell niche bank Banco Bisel after a 2003 auction failed to
attract any bidders.
According to Business News Americas, Banco Nacion will publish
the bidding rules for the sale of Bisel in July. Bisel is the
only remaining bank that Banco Nacion is yet to sell after
assuming its control from France's Credit Agricole.
Credit Agricole, when it pulled out of Argentina in 2002 at the
height of the country's financial crisis, handed control of its
three subsidiaries - Banco de Entre Rios (BERSA), Suquia and
Bisel - to the government. The three banks were later taken over
by Banco Nacion.
Nuevo Banco de Santa Fe recently acquired BERSA for ARS172
million (US$59.9 million), while Banco Macro Bansud bought Banco
Suquia in October 2004 for US$180 million.
CUFLEX S.R.L.: Court Designates Trustee for Liquidation
-------------------------------------------------------
Buenos Aires accountant Fernando Luis Greco was assigned trustee
for the liquidation of local company Cuflex S.R.L., relates
Infobae.
Mr. Greco will verify creditors' claims until Sep. 27, 2005, the
source adds. After that, he will prepare the individual reports,
which are to be submitted in court on Nov. 9, 2005. The
submission of the general report should follow on Dec. 22, 2005.
The city's civil and commercial Court No. 10, with the
assistance of Clerk No. 20, handles the Company's case.
CONTACT: Mr. Fernando Luis Greco, Trustee
Arenales 2365
Buenos Aires
DI YORIO: Reorganization Proceeds to Bankruptcy
-----------------------------------------------
The reorganization of Di Yorio Buzio y Asociados S.A. has
progressed into bankruptcy. Argentine news source Infobae
relates that Buenos Aires' civil and commercial Court No. 23
ruled that the Company is "Quiebra Decretada".
The receiver, Mr. Mauricio Federico Nudelman, will verify claims
"por via incidental", as the court ordered.
The court also ordered the Mr. Nudelman to prepare individual
reports after the verification process is completed. A general
report on the bankruptcy process is expected on Aug. 30, 2005.
CONTACT: Di Yorio Buzio y Asociados S.A.
Moreno 957
Buenos Aires
Mr. Mauricio Federico Nudelman, Trustee
Lavalle 2024
Buenos Aires
ITALMARMI S.A.: Enters Bankruptcy on Court Orders
-------------------------------------------------
Italmarmi S.A. enters bankruptcy protection after Court No. 20
of Buenos Aires' civil and commercial tribunal, with the
assistance of Clerk No. 40, 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 Rodolfo Daniel Venegas
as trustee. Mr. Venegas will be verifying creditors' proofs of
claim until the end of the verification phase on Sep. 14, 2005.
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 Oct. 27, 2005 followed by the general report, which is due on
Dec. 9, 2005.
CONTACT: Mr. Rodolfo Daniel Venegas, Trustee
Avda Corrientes 880
Buenos Aires
METGON S.R.L.: Liquidates Assets to Pay Debts
---------------------------------------------
Buenos Aires-based Metgon S.R.L. will begin liquidating its
assets following the pronouncement of the city's civil and
commercial Court No. 8 that the Company is bankrupt, reports
Infobae.
The bankruptcy ruling places the Company under the supervision
of court-appointed trustee, Pablo Luis Peregal. The trustee will
verify creditors' proofs of claim until Aug. 9, 2005. The
validated claims will be presented in court as individual
reports on Sep. 21, 2005.
Mr. Peregal will also submit a general report, containing a
summary of the Company's financial status as well as relevant
events pertaining to the bankruptcy on Nov. 4, 2005.
The bankruptcy process will end with the disposal of the
Company's assets in favor of its creditors.
CONTACT: Mr. Pablo Luis Peregal, Trustee
Avda Leandro N. Alem 651
Buenos Aires
NEWEL S.A.: Court Rules for Liquidation
---------------------------------------
Buenos Aires civil and commercial Court No. 14 ordered the
liquidation of Newel S.A. after the Company defaulted on its
obligations, Infobae reveals. The liquidation pronouncement will
effectively place the Company's affairs as well as its assets
under the control of Felisa Mabel Tumilasci, the court-appointed
trustee.
Ms. Tumilasci will verify creditors' proofs of claim until Aug.
30, 2005. The verified claims will serve as basis for the
individual reports to be submitted in court on Oct. 11, 2005.
The submission of the general report follows on Nov. 23, 2005.
Court No. 28 assists the court on this case, which will end with
the disposal of the Company's assets in favor of its creditors.
CONTACT: Ms. Felisa Mabel Tumilasci, Trustee
Avda Callao 449
Buenos Aires
PROALBA S.R.L.: Gets Court Approval for Reorganization
------------------------------------------------------
Proalba S.R.L. will begin reorganization following the approval
of its petition by Court No. 17 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.
Carlos Erasmo Moreno will oversee the reorganization proceedings
as the court-appointed trustee. He will verify creditors' claims
until July 29, 2005. The validated claims will be presented in
court as individual reports on Sep. 12, 2005.
Mr. Moreno 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 Oct. 26, 2005.
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 May 9, 2006.
Clerk No. 34 assists the court on this case.
CONTACT: Mr. Carlos Erasmo Moreno, Trustee
Tucuman 1658
Buenos Aires
PROFOS S.A.: Enters Bankruptcy on Court Orders
----------------------------------------------
Buenos Aires' civil and commercial Court No. 21 declared Profos
S.A. bankrupt after the Company defaulted on its debt payments.
The bankruptcy order effectively places the Company's affairs as
well as its assets under the control of court-appointed trustee,
Monica Olga Rajo.
As the trustee, Ms. Rajo is tasked with verifying the
authenticity of claims presented by the Company's creditors. The
verification phase is ongoing until Aug. 18, 2005.
Following claims verification, the trustee will submit the
individual reports based on the forwarded claims for final
approval by the court on Sep. 29, 2005. A general report will
also be submitted on Nov. 11, 2005.
Infobae reports that Clerk No. 42 assists the court on this
case, which will end with the disposal of the Company's assets
in favor of its creditors.
CONTACT: Profos S.A.
Blanco Encalada 4904
Buenos Aires
Ms. Monica Olga Rajo, Trustee
Viamonte 2359
Buenos Aires
SCP: Gets Clearance to Sell Energy Unit to Southern Cross
---------------------------------------------------------
Conglomerate Sociedad Comercial del Plata (SCP) can now proceed
with the sale of an 81% stake in Compania General de
Combustibles (CGC) to a private equity fund after an appeals
court approved its debt restructuring offer.
Dow Jones Newswires recalls that SCP agreed to sell a
controlling stake in CGC, its largest asset, to Southern Cross
two years ago but the transaction was delayed pending legal
approval for the debt restructuring. Creditors had opposed the
debt deal, claiming SCP discriminated against certain
bondholders with its method of tallying votes for the offer.
Recently, however, the appeals court upheld a March 2004 ruling
from a lower court that approved the offer.
SCP will now have a 19% stake in CGC. Its other holdings include
tourism-related companies and a provider of high-speed wireless
data services.
CONTACT: Sociedad Comercial del Plata
Av. Davila 350
Buenos Aires, Argentina
Phone: 54 1 310-0490
Fax: 54 1 310-0493
SOFT 2100: Court Grants Reorganization Plea
-------------------------------------------
Soft 2100 S.R.L. successfully petitioned for reorganization
after Court No. 4 of Buenos Aires' civil and commercial tribunal
issued a ruling that opened 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 Irma Susana Aguilera will serve as trustee
during the course of the reorganization. The trustee will be
accepting creditors' proofs of claim for verification until Aug.
1, 2005.
After verifications, the trustee will prepare the individual
reports and submit it in court on Sep. 13, 2005. She will also
present a general report for court review on Oct. 26, 2005.
The Company will endorse the settlement proposal, drafted from
the submitted claims, for approval by the creditors during the
informative assembly scheduled on April 28, 2006.
CONTACT: Soft 2100 S.R.L.
Cuba 4710
Buenos Aires
Ms. Irma Susana Aguilera, Trustee
Luis Saenz Pena 1690
Buenos Aires
* BUENOS AIRES: Moody's Upgrades Local Currency Debt
----------------------------------------------------
Moody's Investors Service raised Friday to B1 from B2 (Global
Scale), and to Aa2.ar from A1.ar (Argentina National Scale), the
ratings assigned to the local currency debt of the City of
Buenos Aires. The City's foreign currency debt is rated Caa1,
consistent with Argentina's foreign currency country ceiling.
The rating outlook is stable.
The rating upgrade is based on the city's continuing economic
and fiscal recovery from severe problems experienced earlier in
the decade, and budget practices that contribute to financial
flexibility. The city generated solid and increasing budget
surpluses in 2003 and 2004, and first quarter results indicate
that the city will register positive results again in 2005.
Revenues exceeded budget forecasts in both 2003 and 2004, while
spending -- and its growth -- was kept below that of revenues.
The city's positive fiscal performance has been achieved with
the aid of strong revenue growth -- more than 36% in 2003 and
nearly 29% in 2004 -- fed by an economic rebound. It has also
been facilitated by the use of multi-year planning to guide
spending decisions, a practice that should contribute to
continued sound results.
The rating upgrade also reflects the reduced debt service costs
that resulted from a restructuring of city debt that bondholders
agreed to in the first quarter of 2003.
The still-low level of the new ratings acknowledges credit risks
stemming from economic uncertainty, debt ratios that were
substantially increased as a result of currency devaluation at
the start of 2002, and the need to resist ongoing fiscal
pressures. The ratios of debt to GDP and to revenues moderated
in 2003 and 2004. Although the share of revenue the city devotes
to debt service rose in 2003 as debt principal payments
increased, that share eased in 2004 as debt requirements fell
short of budget levels and revenues continued their strong
growth. The share is not high when compared to similarly rated
local and regional governments.
The 2005 budget projects revenue growth of only 10.7% (compared
to a preliminary 28.8% in 2004) and a spending increase of 31.2%
to achieve budgetary balance. Actual performance to-date is
better than budget, however, as a large increase in capital
spending projected for the year is not being fully realized.
=============
B E R M U D A
=============
LOM HOLDINGS: Buys Back Own Shares
----------------------------------
LOM (Holdings) Limited (LOM) informed the Bermuda Stock Exchange
(BSX) that the Company repurchased 2,000 of its own shares on
Wednesday, 15th June 2005 at a price of $2.80 per share for
cancellation.
CONTACT: LOM Group
The LOM Building
27 Reid Street
Hamilton HM 11
Bermuda
Tel: 441 292 5000
Fax: 441 295 3343
E-mail: info@lom.com
LOM Asset Management Limited
Tel: 441 296 5802
Fax: 441 296 5597
E-mail: lomam@lom.com
LOM Securities (Bahamas) Limited
Millennium House
P.O. F42498-350
Freeport, Grand Bahama
Bahamas
Tel: 242 351 5000
Fax: 242 351 7738
E-mail: info.bahamas@lom.com
LORAL SPACE: Loral Skynet Launches Skyreach IP Services for Asia
----------------------------------------------------------------
Loral Skynet said it has entered into an agreement with
BtNAccess, a global provider of communications services, to
extend Loral's SkyReach(SM) IP-enabled communications services
to Asia, providing regional users with regional and global
public Internet and private networking services, including
broadband Internet access, voice over IP (VoIP), and managed
data services.
"Loral Skynet has assembled a service in SkyReach that combines
the best of satellite and terrestrial communications
technologies, providing reliable, cost effective IP-based
solutions," said Bernard L. Schwartz, chairman and CEO of Loral
Space & Communications. "IP technology is driving the future of
enterprise and government communications and it's a technology
that Loral has been applying and offering in its service
portfolio for over 10 years as a pioneer of IP over satellite."
Loral Skynet's Asia focused SkyReach service is powered by an
iDirect IP hub at the BtNAccess teleport in Hong Kong. Skynet
will combine satellite capacity on its Telstar 10 and Telstar 18
Asian satellites with teleport and terrestrial communications
services, including multi-protocol label switching (MPLS),
provided by BtNAccess to provide a robust, far-reaching IP-based
network.
"Skynet's satellite and IP resources combined with the
terrestrial MPLS and teleport capabilities of BtNAccess
instantly allows us to deliver an integrated IP-based network
capability that surpasses any other IP offering in the region,"
said Patrick Brant, president of Loral Skynet. "By combining our
new SkyReach capability in Asia with other SkyReach hub
locations in the U.S. and Europe, Loral Skynet provides a
unique, global IP-based solution that addresses the local,
regional and international needs of enterprise-level users."
The SkyReach service in Asia will be available July 1st, using
VSAT technology to deliver a full range of IP applications,
including Internet access, Voice over IP (VoIP), streamed media,
file transfers (FTP), Virtual Private Networks (VPN), LAN
connectivity and satellite-enabled WiFi services. SkyReach
services complement existing frame relay and MPLS networks, as
well as enabling efficient network management.
Through SkyReach and coupled with its worldwide infrastructure
and installation partners, Skynet is one of the only satellite
services company in the world that can extend, install and
maintain satellite delivered IP connectivity on a truly seamless
and global basis. With its tiered SLAs (service level
agreements) and quality-of-service features, SkyReach enables a
natural extension of terrestrial MPLS systems and a platform for
multicast and broadcast video requirements. Skynet is developing
relationships and replicating the SkyReach solution on a wide
scale where the IP network extension requirement is central.
BtNAccess is headquartered in Reston, VA and Hong Kong, with
teams based in Europe, Asia, and the Americas. The company
offers fiber and satellite- based business class voice and data
solutions, including Hosted PBX and MPLS VPN, to carriers,
service providers and enterprises. BtNAccess is a subsidiary of
PCCW Limited, a leader in next generation broadband solutions
with holdings that include the former Hong Kong Telecom Company.
A pioneer in the satellite industry, Loral Skynet delivers the
superior service quality and range of satellite solutions that
have made it an industry leader for more than 40 years. Through
the broad coverage of the Telstar satellite fleet, in
combination with its hybrid VSAT/fiber global network
infrastructure, Skynet meets the needs of companies around the
world for broadcast and data network services, Internet access,
IP and systems integration. Headquartered in Bedminster, New
Jersey, Loral Skynet is dedicated to providing secure, high-
quality connectivity and communications.
In addition to being the parent company of Loral Skynet, Loral
Space & Communications (OTC Bulletin Board: LRLSQ) is a world-
class leader in the design and manufacture of satellites and
satellite systems for commercial and government applications
through its Space Systems/Loral subsidiary.
CONTACT: Loral Space & Communications
John McCarthy
Tel: +1-212-338-5345
URL: http://www.loral.com
===========
B R A Z I L
===========
BANCO VOTORANTIM: Opens $100M Overseas Bond Issue
-------------------------------------------------
Banco Votorantim S.A. launched Friday an overseas bond issue
totaling US$100 million, tapping positive overseas investor
sentiment towards Brazil, reports Dow Jones Newswires. The bank,
a unit of the industrial conglomerate Grupo Votorantim, expects
the 36-month bond to yield between 100 and 125 basis points over
Libor. Banco Pactual is coordinating the sale.
SADIA S.A.: Board Authorizes Payment of Interest on Equity
----------------------------------------------------------
SADIA S.A. announced to its shareholders that on June 23, 2005,
the Board of Director authorized the payment of interest on
equity related to 2005 earnings, being R$0.07718 per common
share and R$0.08490 per preferred share (R$0.849 per ADR).
The interest on equity will be calculated according to the
minimum dividend required by Brazilian securities law, to be
approved at the next general shareholders' meeting. The
corresponding credit will be posted in the Company's accounting
records on June 30, 2005 in the shareholders' names. Payment
will be made on August 17, 2005, based on the record date at
July 20, 2005, and retaining 15% (fifteen per cent) income
withholding tax, pursuant to Paragraph 2 of Article 9 of Law No.
9.249/95, except for those shareholders that are legally
recognized as tax-exempt investors. Shares shall be traded on
the Sao Paulo, New York and Madrid Stock Exchanges, without the
right to such interest on equity, as of July 21, 2005, including
that date.
Shareholders possessing bank accounts will have the amount
automatically credited on the above mentioned payment date. All
other investors will receive a "Dividend Credit Notice" by mail,
at those addresses on file with Banco Bradesco.
Tax-exempt investors which are not subject to income withholding
tax must comply with applicable law by submitting the required
documents by July 20, 2005 to the following address: Banco
Bradesco, Departamento de Acoes e Custodia, Predio Amarelo - 2§
andar - Cidade de Deus, Osasco - SP - Brazil CEP 060029-900.
CONTACT: Sadia S.A.
Rua Fortunato Ferraz
Vila Anastacio
2 Andar
Sao Paulo, 05093-901
Brazil
Phone: 55-11-3649-3552
URL: http://www.sadia.com.br
VARIG: Files Consolidated Balance Sheet as of March 31
------------------------------------------------------
The Consolidated Balance Sheet present balances of the accounts
of VARIG, S.A. (Viacao Aerea Rio-Grandense), VARIG Logistica
S.A. and VARIG Engenharia e Manutencao S.A.
Consolidated Balance Sheet
As of March 31, 2005
(in thousands of reais)
ASSETS
Current Assets
Cash and cash equivalents BRL68,808
Accounts receivable 779,900
Related companies 51,623
Special deposits 120,600
Recoverable taxes 17,926
Inventories 265,532
Prepaid expenses 211,826
Other credits 67,557
------------
Total of current assets 1,583,772
------------
Non-current Assets
Related companies 458,434
Special deposits 177,601
Recoverable taxes 116,987
Other credits 92,541
------------
Total of non-current assets 845,563
------------
Permanent Assets
Investments 17,148
Property, plant and equipment 532,826
------------
Total of permanent assets 549,974
------------
Unsecured Liabilities 6,495,621
------------
Total of Assets and Unsecured Liabilities BRL9,474,930
============
LIABILITIES
Current liabilities
Trade Payables BRL527,710
Loans, financing and debentures 363,981
Refinancing of tax obligations 286,673
Duties, taxes and contributions 235,802
Payroll and social charges 203,170
Leasing payable 256,970
Related companies 91,259
Accounts payable 159,334
Transport to be provided 419,765
Sundry provisions 336,502
------------
Total of current liabilities 2,881,166
------------
Long-term liabilities
Loans, financing and debentures 1,697,569
Refinancing of tax obligations 3,103,199
Related companies 51,067
Leasing payable 109,128
Provision for actuarial liabilities 501,828
Sundry provisions 9,266
Provisions for contingencies 1,121,675
------------
Total of long-term liabilities 6,593,732
------------
Minority Interests 32
------------
Total Liabilities BRL9,474,930
============
A full-text copy of VARIG's latest quarterly report is available
for free at: http://bankrupt.com/misc/quarterly_report.pdf.
Vicente Cervo, the foreign representative appointed in Varig,
S.A., and its debtor-affiliates' Brazilian bankruptcy
proceedings, filed a Sec. 304 petition on June 17, 2005 (Bankr.
S.D.N.Y. Case Nos. 05-14400 and 05-14402). Rick B. Antonoff,
Esq., at Pillsbury Winthrop Shaw Pittman LLP represents Mr.
Cervo in the United States and Sergio Bermudes, Esq., in Brazil.
As of March 31, 2005, the Debtors reported BRL2,979,309,000 in
total assets and BRL9,474,930,000 in total debts. (Varig
Bankruptcy News, Issue No. 02; Bankruptcy Creditors' Service,
Inc., 215/945-7000)
=========
C H I L E
=========
SR TELECOM: CEO Delivers Bullish Outlook for 2nd Half
-----------------------------------------------------
SR Telecom, which nearly fell into bankruptcy during the past
year, is expected to return to operating profits in the second
half of its fiscal year, the Canadian Press reports, citing a
top executive of the Company.
Speaking at the Company's annual meeting Thursday, Chief
Executive Officer Pierre St-Arnaud said that SR Telecom's
financial situation is sounder after a group holding the
Company's debentures agreed earlier this year to issue credit in
return for 95% control of SR Telecom, helping it avoid
bankruptcy.
St-Arnaud expects the first six months to continue to be
difficult, but "we should be cash positive in the second half."
The Company's planned share rights offering worth around $40
million will be issued in mid-August. If fully subscribed, it
will allow current shareholders, whose holdings were diluted by
2,000% in the recapitalization, to buy common shares controlling
35% of the Company, St-Arnaud said.
"The solution we reached is not perfect but in the circumstances
it allows shareholders the possibility to participate in our
recovery," St-Arnaud said.
He said a restructuring during the last year have helped reduce
annual costs by 35%. The Company has 500 employees compared with
about 1,000 a year ago, as well as 230 at its service provider
subsidiary in Chile, Comunicacion y Telefonia Rural S.A. (CTR),
that SR Telecom would like to sell.
CONTACT: SR Telecom
David Adams
Senior Vice-President, Finance and CFO
Tel: (514) 335-4035
Scott Lawrence
Maison Brison
Tel: (514) 731.0000
===============
C O L O M B I A
===============
PAZ DEL RIO: Minority Shareholders Seen Selling Stakes
------------------------------------------------------
Some of Acerias Paz del Rio's minority shareholders are willing
to sell their positions if the steel company receives a takeover
offer, Dow Jones Newswires reports, citing a Fogafin official.
Fogafin is the government agency that oversees Colombia's
banking assets and serves as the legal representative of the
government stakes in Paz del Rio.
"We are currently exploring possibilities," Fogafin Chief Juan
Ricardo Ortega said following Paz del Rio's extraordinary
shareholders meeting earlier Friday.
The minority shareholders, which have expressed willingness to
dispose of their interests in Paz del Rio, are government
institutions (9.2%) and the Financial Institution of Boyaca
(20.9%).
Paz del Rio's shares gained more than 28% last week on
speculations that the steel firm could soon receive an offer
from Argentina's Techint (TCNT.YY) or from France's Arcelor
(5786.FR).
CONTACT: Acerias Paz Del Rio S.A.
CARRERA 8A, N 13-31, PISOS 7-11
4260 - Bogota
Colombia
Phone: +57 1 3411570
+57 1 2823480
===========
M E X I C O
===========
GRUPO IUSACELL: Trading of ADRs on NYSE to be Suspended
-------------------------------------------------------
Grupo Iusacell, S.A. de C.V., (BMV: CEL), (NYSE: CEL), announced
that effective June 21, 2005, The Bank of New York (BONY) gave
notice of termination of Grupo Iusacell's ADR program to the
holders of Grupo Iusacell's American Depositary Receipts (ADRs).
Upon such notice of termination, BONY discontinued the issuance
of new ADRs, by filing a Post-Effective Amendment to Form F-6
with the United States Securities and Exchange Commission.
Additionally, the deposit agreement was amended to reduce to 60
days the period during which holders may exchange ADRs for
shares traded on the Mexican Stock Market (BMV).
As previously announced, at the Extraordinary Shareholders'
Meeting held on June 1, 2005, 96.70% of Grupo Iusacell's
shareholders approved the termination of the ADR program, after
an analysis and discussion of the costs and benefits of
continued listing in the U.S. capital markets.
As a consequence of the termination of the deposit agreement,
The New York Stock Exchange is expected to suspend trading of
the ADRs on or about September 19, 2005. ADR holders will have
60 days to exchange their ADRs for shares that are traded on the
BMV. Upon the expiration of the 60-day period, BONY will have
the right to sell the shares underlying the ADRs that were not
surrendered and distribute the proceeds of the sale to holders.
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 operate.
CONTACT: Grupo Iusacell, S.A. de C.V.
Jose Luis Riera K.
Chief Financial Officer
Phone: 5255-5109-5927
Or
J. Victor Ferrer
Finance Manager
Phone: 5255-5109-5927
URL: http://www.iusacell.com
TV AZTECA: Trading of ADRs on NYSE to Be Suspended on July 18
-------------------------------------------------------------
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, effective
June 17, 2005, The Bank of New York (BONY) gave notice of
termination of TV Azteca's ADR program to the holders of TV
Azteca's American Depositary Receipts (ADRs).
Upon such notice of termination, BONY discontinued issuing new
ADRs, by filing a Post-Effective Amendment to Form F-6 with the
United States Securities and Exchange Commission. Additionally,
the deposit agreement was amended to reduce to 60 days the
period during which holders may exchange ADRs for CPOs traded on
the Mexican Stock Market (BMV).
As was previously announced, at an Extraordinary Shareholders'
Meeting held on June 1, 2005, 99.85% of TV Azteca's shareholders
approved the termination of the ADR program, after an analysis
and discussion of the costs and benefits of continued listed in
the U.S. capital markets.
Pursuant to the termination of the deposit agreement, the NYSE
is expected to suspend trading of the ADRs in the United States
on or about July 18, 2005. ADR holders will have 60 days to
exchange their ADRs for CPOs traded on the BMV. Upon the
expiration of the 60-day period, BONY will be allowed to sell
the CPOs underlying the ADRs that were not surrendered and
distribute the proceeds of such sale to holders.
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
Investors:
Bruno Rangel
Phone: 52-55-1720-9167
E-mail: jrangelk@tvazteca.com.mx
Or
Rolando Villarreal
Phone: 52-55-1720-0041
E-mail: rvillarreal@gruposalinas.com.mx
Or
Press:
Tristan Canales
Phone: 52-55-1720-1441
E-mail: tcanales@gruposalinas.com.mx
Or
Daniel McCosh
Phone: 52-55-1720-0059
E-mail: dmccosh@tvazteca.com.mx
URL: http://www.tvazteca.com.mx
TV AZTECA: Withdraws Legal Charges Against Finance Minister
-----------------------------------------------------------
Broadcaster TV Azteca has withdrawn the charges of abuse of
authority and extortion against Finance Minister Francisco Gil,
local news source Reforma reports, citing an unnamed senior
official in the Federal Attorney General's Office.
The newspaper didn't provide further details.
TV Azteca, owned by controversial businessman Ricardo Salinas,
filed a criminal lawsuit against Gil in April accusing him of
using threats to stop Azteca from airing a program that
criticized Gil's decision to bail out banks such as Grupo
Financiero Banamex SA, now owned by Citigroup Inc., after the
devaluation of the peso in 1994.
The Finance Ministry retaliated by pressing criminal charges
against Salinas for unlawful use of privileged information in a
debt deal that netted him US$109 million.
VITRO: The Bank of New York Appoints Successor Depositary Bank
--------------------------------------------------------------
The Bank of New York, a global leader in securities servicing,
has been selected as depositary for the Vitro, S.A. de C.V.
American depositary receipt (ADR) facility. Each Vitro ADR
represents three A shares. The ADRs trade on the New York Stock
Exchange under the symbol "VTO." The A shares trade in Mexico on
the Bolsa Mexicana de Valores.
Through its subsidiary companies, Vitro, S.A. de C.V. produces
glass and participates in three principal businesses: flat
glass, glass containers and glassware. Its subsidiaries serve
multiple product markets, including construction and automotive
glass; food and beverage, wine, liquor, cosmetics and
pharmaceutical glass containers; and glassware for commercial,
industrial and retail uses. Vitro also produces raw materials
and equipment and capital goods for industrial use.
Alvaro Rodriguez Arregui, chief financial officer of Vitro,
said, "We are pleased to be working with The Bank of New York.
We are confident that the Bank's integrated securities services
will streamline our program's administration and that its
extensive outreach and promotional programs will help us gain
broad access to U.S. investors."
Christopher Sturdy, managing director and Head of The Bank of
New York's Depositary Receipt Division, said, "We appreciate
Vitro's confidence in selecting The Bank of New York as
successor depositary bank and welcome the company to our
increasingly diverse portfolio of Mexican DR clients. We look
forward to working with their management to maximize the
program's market potential."
The Bank of New York has been conducting business in Latin
America for over 100 years. The Company has representative
offices in Argentina, Mexico and Brazil, and offers a full range
of securities servicing, global payments, asset management and
trade finance products. The Bank is committed to Latin America
and to growing its business as the capital markets develop in
the region.
The Bank of New York sponsors more than 1,190 American and
global depositary receipt programs, a 64% market share, acting
in partnership with leading companies from 60 countries. With an
unrivalled commitment to helping securities issuers succeed in
the world's rapidly evolving financial markets, the Bank
delivers the industry's most comprehensive suite of integrated
depositary receipt, corporate trust and stock transfer services.
Additional information is available at www.adrbny.com.
The Bank of New York Company, Inc. (NYSE: BK) is a global leader
in providing a comprehensive array of services that enable
institutions and individuals to move and manage their financial
assets in more than 100 markets worldwide. The Company has a
long tradition of collaborating with clients to deliver
innovative solutions through its core competencies: securities
servicing, treasury management, investment management, and
individual & regional banking services. The Company's extensive
global client base includes a broad range of leading financial
institutions, corporations, government entities, endowments and
foundations. Its principal subsidiary, The Bank of New York,
founded in 1784, is the oldest bank in the United States and has
consistently played a prominent role in the evolution of
financial markets worldwide.
CONTACT: Vitro, S.A. de C.V.
Investor Relations
Mr. Adrian Meouchi (ameouchi@vitro.com)
Ms. Leticia Vargas (lvargasv@vitro.com)
Vitro S.A. de C.V.
Phone: + (52) 81-8863-1350 / 1219
Media Relations (achico@vitro.com)
Mr. Albert Chico
Vitro, S. A. de C.V.
Phone: + (52) 81-8863-1335
Web site at: http://www.vitro.com
=================
V E N E Z U E L A
=================
PDVSA: Western Division Produces Below Target
---------------------------------------------
Venezuelan state oil firm PDVSA's western division is producing
below its 2005 target, Business News Americas reports.
The western division, according to PDVSA deputy president of
exploration and production Luis Vierma, is generating 950,000
barrels of oil a day (b/d), which is 120,000b/d less than its
goal of 1.08 million barrels a day (Mb/d).
Vierma admits the western division, which comprises operations
in Falcon, Trujillo and Zulia states, is producing below its
target. But PDVSA is banking on production from the Tomoporo
field in Trujillo state and Zulia's Maracaibo Lake to soon
bridge the gap.
PDVSA said that the Tomoporo field, which holds about 1 billion
barrels in proven 23-degree API crude reserves, could allow
private investors to participate up to 49% in the oil field
development.
PDVSA's south-central division makes 90,700b/d, slightly above
its 88,000b/d goal. The eastern division, on the other hand, is
pumping 1.15Mb/d, 13,000b/d barrels above the goal of 1.14Mb/d.
Overall, PDVSA is producing just under 2.2Mb/d, but the western
division's poor performance has brought it 85,000b/d below its
target for the year.
PDVSA plans to invest US$5.6 billion in drilling 1,200 new wells
and boost output to 100,000b/d by the end of the year.
CONTACT: Petroleos de Venezuela S.A.
Edificio Petroleos de Venezuela
Avenida Libertador, La Campina, Apartado 169
Caracas, 1010-A, Venezuela
Phone: +58-212-708-4111
Fax: +58-212-708-4661
Web site: http://www.pdvsa.com.ve
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
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Copyright 2005. All rights reserved. ISSN 1529-2746.
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