/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/050701.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, July 1, 2005, Vol. 6, Issue 129 Headlines A R G E N T I N A ACROMETALICA S.A.: Gets Court Approval to Reorganize BASCOY S.A.: Debt Payments Halted, Moves to Reorganize BAUD MOL: Seeks Reorganization Approval From Court CETECO ARGENTINA: Court Orders Asset Liquidation CLUB ATLETICO: Declared Bankrupt by Court COMPANIA ARGENTINA: Initiates Bankruptcy Proceedings CONSTRUCTORA SOLER: Court Grants Reorganization Motion CRESUD: Spends $3 Million to Acquire Two Parcels of Land EDENOR: EdF Board OKs Plan to Sell 65% Stake to Dolphin INDIANA MYSTERY: Court Designates Trustee for Liquidation LABORMED S.A.: Reorganization Approved, Trustee Named MACAI S.R.L.: Liquidates Assets to Pay Debts MEBAL S.R.L.: Court Authorizes Plan, Concludes Reorganization OREX S.A.: Court Orders Liquidation, Appoints Trustee PRODUCTOS MAGUS: Debt Payments Halted, Set To Reorganize ROYAL OIL: Begins Liquidation Proceedings SAFIR S.A.: Court Rules Liquidation Required * ARGENTINA: Moody's Ups Ratings as Credit Conditions Improve * ARGENTINA: Plans to Initiate Negotiations With IMF B R A Z I L BANCO BRADESCO: Shareholder Dividend Set for July BRASKEM: Proposals for Deliberation Unanimously Adopted CEMIG: Board Interest on Equity Payments ELETROPAULO METROPOLITANA: Sells $202M, High Yield 5-Year Bonds LIGHT SERVICOS: BNDES to Buy Debt as Part of Special Credit Line LOCALIZA RENT: New Market Maker Retained for Share Trading NET SERVICOS: To Hold Extraordinary General Meeting July 12 PRIDE INTERNATIONAL: Signs Deepwater Semisubmersible Contracts C H I L E COEUR D'ALENE: Designates President for San Bartolome Project D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: Emerges From Default, Ratings Upped To 'B' G R E N A D A * GRENADA: IDB Approves $10M Loan for Grenada Reconstruction J A M A I C A AIR JAMAICA: S&P Assigns 'B' Rating to $150M Notes Due 2015 KAISER ALUMINUM: Files Reorganization Plan, Disclosure Statement M E X I C O EMPRESAS ICA: Plans $200M Share Issue, Dilution a Concern U R U G U A Y URAGUA: Files $24M Lawsuit Against Government V E N E Z U E L A PDVSA: Obtains $423M Dividend Payment From CITGO PDVSA: To Pay $688M to Private Operators This Week PDVSA: Undertaking New Exploration Studies in Lake Maracaibo PDVSA: Gas Unit Sets Sales Record in Domestic Market - - - - - - - - - - ================= A R G E N T I N A ================= ACROMETALICA S.A.: Gets Court Approval to Reorganize ---------------------------------------------------- Acrometalica S.A. will begin reorganization following the approval of its petition by Court No. 17 of Buenos Aires' civil and commercial tribunal. The court-authorized reorganization will allow the Company to negotiate a settlement with its creditors in order to avoid a straight liquidation. Nestor Rodolfo del Potro will oversee the reorganization proceedings as the court-appointed trustee. He will verify creditors' claims until Oct. 3, 2005. The validated claims will be presented in court as individual reports on Nov. 3, 2005. Mr. del Potro 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 Dec. 5, 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 April 5, 2006. Clerk No. 33 assists the court on this case. CONTACT: Acrometalica S.A. 3 de Febrero 1350 Buenos Aires Mr. Nestor Rodolfo del Potro, Trustee Avda Corrientes 1291 Buenos Aires BASCOY S.A.: Debt Payments Halted, Moves to Reorganize ------------------------------------------------------ Court No. 19 of Buenos Aires' civil and commercial tribunal is studying the request for reorganization submitted by local company Bascoy S.A., says Infobae. The report adds that that the Company filed a "Concurso Preventivo" petition after cessation of debt payments. The city's Clerk No. 37 assists the court on this case. CONTACT: Bascoy S.A. Colombres 779 Buenos Aires BAUD MOL: Seeks Reorganization Approval From Court -------------------------------------------------- Court No. 6 of Buenos Aires' civil and commercial tribunal is currently reviewing the merits of the reorganization petition filed by Baud Mol S.A.. Argentine daily Infobae reports that the Company filed the request after defaulting on its debt payments. The reorganization petition, if granted by the court, will allow Baud Mol S.A. to negotiate a settlement with its creditors in order to avoid a straight liquidation. Clerk No. 12 assists the court on this case. CONTACT: Baud Mol S.A. Avda Rivadavia 1238 Buenos Aires CETECO ARGENTINA: Court Orders Asset Liquidation ------------------------------------------------ Ceteco Argentina S.A. prepares to wind-up its operations following the bankruptcy pronouncement issued by Court No. 19 of Buenos Aires' civil and commercial tribunal. The declaration effectively prohibits the Company from administering its assets, control of which will be transferred to a court-appointed trustee. Infobae reports that the court has appointed Estudio Lesta Calello Di Chiara as trustee. The trustee will be reviewing creditors' proofs of claim until Sep. 12, 2005. The verified claims will serve as basis for the individual reports to be presented for court approval on Oct. 25, 2005. The trustee will also submit a general report of the case on Dec. 6, 2005. Clerk No. 37 assists the court on this case that will end with the sale of the Company's assets. Proceeds from the sale will be used to repay the Company's debts. CONTACT: Estudio Lesta, Calello, Di Chiara, Trustee Viamonte 783 Buenos Aires CLUB ATLETICO: Declared Bankrupt by Court ----------------------------------------- Club Atletico Huracan(Ing.White) is now "Quiebra" - meaning bankrupt, says Infobae. Bahia Blanca's civil and commercial Court No. 6 decreed the Company's bankruptcy and appointed Gladys Claudia Mayo, as receiver for the Company. Ms. Mayo will be reviewing creditors' claims until Aug. 8, 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, which is aided by Clerk No. 4, will conclude the bankruptcy process by liquidating its assets to repay creditors. CONTACT: Club Atletico Huracan(Ing.White) Daniel de Solier 4010 Ingeniero White Bahia Blanca Ms. Gladys Claudia Mayo, Trustee Berutti 623 Bahia Blanca COMPANIA ARGENTINA: Initiates Bankruptcy Proceedings ---------------------------------------------------- Buenos Aires civil and commercial Court No. 1 declared Compania Argentina de Servicios Hipotecarios Cash S.A. "Quiebra," reports Infobae. Clerk No. 1 assists the court on the case, which will close with the liquidation of the Company's assets to repay creditors. Estudio Chaia, Stolzing y Asociados, who has been appointed as trustee, will verify creditors' claims until Sep. 9, 2005 and then prepare the individual reports based on the results of the verification process. CONTACT: Estudio Chaia, Stolzing y Asociados, Trustee Suipacha 190 Buenos Aires CONSTRUCTORA SOLER: Court Grants Reorganization Motion ------------------------------------------------------ Constructora Soler S.A. successfully petitioned for reorganization after Buenos Aires' civil and commercial Court No. 24 issued a resolution opening the Company's insolvency proceedings. Under insolvency protection, the Company will continue to manage its assets subject to certain conditions imposed by Argentine law and the oversight of a court-appointed trustee. Infobae relates that Adriana del Carmen Gallo will serve as trustee during the course of the reorganization. The trustee will be accepting creditors' proofs of claim for verification until Sep. 15, 2005. After verifications, the trustee will prepare the individual reports and submit it in court on Oct. 28, 2005. She will also present a general report for court review on Dec. 12, 2005. The Company will endorse the settlement proposal, drafted from the submitted claims, for approval by the creditors during the informative assembly scheduled on May 26, 2006. CONTACT: Ms. Adriana del Carmen Gallo, Trustee Roque Saenz Pe¤a 651 Buenos Aires CRESUD: Spends $3 Million to Acquire Two Parcels of Land -------------------------------------------------------- Cresud S.A.C.I.F. y A acquired from the firm Claremont Trading Inc. S.A. two parcels of land located in Rancul, Province of La Pampa, Republic of Argentina, with a total surface of 1,946 hectares and 68 areas, for a total price of US$3,000,000. The acquisition was disclosed in a letter dated June 24, 2005, which was filed by the Company with the Comision Nacional de Valores. CONTACT: CRESY -- Cresud S.A.C.I.F. y A Av. Roque Saenz Pena 832 8th Fl. Buenos Aires Phone: 001-54-1-3287808 EDENOR: EdF Board OKs Plan to Sell 65% Stake to Dolphin ------------------------------------------------------- The board of French state power company EdF (Electricite de France) approved Wednesday the planned sale of a 65% interest in Argentine power company Edenor to local investment fund Grupo Dolphin. EdF still needs clearances from French and Argentine authorities in order to go ahead with the deal worth some US$100 million. The French company will sell Dolphin a 14% direct stake in Edenor and 100% control of its Argentine holding company EASA, which controls 51% of the distributor. EdF holds 90% of Edenor and employees of the Argentine company own the remaining 10%. EdF has committed to retain a 25% stake in Edenor and provide Dolphin with a technical assistance team to help manage the unit for five years. Edenor's results have been hurt by the devaluation of the peso in early 2002 and the government's subsequent decision to freeze public utility rates, including power tariffs. The unit posted net losses of ARS90 million (US$31 million) in 2004 on revenues of US$368 million. Its shares are not actively traded on the stock exchange. Edenor distributes electricity to parts of the capital and the greater Buenos Aires region, with about 2.4 million clients. CONTACT: EDENOR S.A. Azopardo Building Azopardo 1025 (1107) Capital Federal Phone: (54-11) 4346-5000 Fax: (54-11) 4346-5300 E-mail: to ofitel@edenor.com.ar Web Site: http://www.edenor.com.ar INDIANA MYSTERY: Court Designates Trustee for Liquidation --------------------------------------------------------- Buenos Aires accountant Gloria Clara Kremer was assigned trustee for the liquidation of local company Indiana Mystery S.R.L., relates Infobae. Ms. Kremer will verify creditors' claims until Aug. 1, 2005, the source adds. After that, he will prepare the individual reports, which are to be submitted in court on Sep. 13, 2005. The submission of the general report should follow on Oct. 26, 2005. The city's civil and commercial Court No. 8 holds jurisdiction over the Company's case. Clerk No. 15 assists the court with the wind-up proceedings. CONTACT: Ms. Gloria Clara Kremer, Trustee Lavalle 1672 Buenos Aires LABORMED S.A.: Reorganization Approved, Trustee Named ----------------------------------------------------- Labormed S.A., a company operating in La Plata, is ready to start its reorganization after the city's civil and commercial Court No. 11 appointed Omar Lares to supervise the proceedings as trustee. An Infobae report states that Mr. Lares will verify creditors claims until July 26, 2005. Afterwards, he will present these claims as individual reports for final review by the court on Sep. 8, 2005. Mr. Lares will also provide the court with a general report pertaining to Labormed's reorganization on Oct. 24, 2005. The schedule for the informative assembly is yet to be disclosed. CONTACT: Labormed S.A. Calle 37 Nro. 658 La Plata Omar Lares, Trustee Calle 11 Nro. 467 La Plata MACAI S.R.L.: Liquidates Assets to Pay Debts -------------------------------------------- Macai S.R.L. will begin liquidating its assets following the pronouncement of Buenos Aires' civil and commercial Court No. 14 that the Company is bankrupt, Infobae reports. The bankruptcy ruling places the Company under the supervision of court-appointed trustee, Rodolfo Fernando Daniel Torella. The trustee will verify creditors' proofs of claim until Aug. 30, 2005. The validated claims will be presented in court as individual reports on Oct. 11, 2005. Mr. Torella 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. 23, 2005. The bankruptcy process will end with the disposal of the Company's assets in favor of its creditors. CONTACT: Mr. Rodolfo Fernando Daniel Torella, Trustee Bulnes 2057 Buenos Aires MEBAL S.R.L.: Court Authorizes Plan, Concludes Reorganization ------------------------------------------------------------- Buenos Aires-based company Mebal S.R.L. concluded its reorganization process, according to data released by Infobae on its Web site. The conclusion came after the city's civil and commercial Court No. 15, with assistance from Clerk No. 29, homologated the debt plan signed between the Company and its creditors. CONTACT: Mebal S.R.L. Buenos Aires OREX S.A.: Court Orders Liquidation, Appoints Trustee ----------------------------------------------------- Buenos Aires' civil and commercial Court No. 10 declared Orex 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, Amalia Mild. As the trustee, Ms. Mild is tasked with verifying the authenticity of claims presented by the Company's creditors. The verification phase is ongoing until Sep. 2, 2005. Following claims verification, the trustee will submit the individual reports based on the forwarded claims for final approval by the court on Oct. 17, 2005. A general report will also be submitted on Dec. 12, 2005. Infobae reports that Clerk No. 19 assists the court on this case, which will end with the disposal of the Company's assets in favor of its creditors. CONTACT: Ms. Amalia Mild, Trustee Tucuman 1539 Buenos Aires PRODUCTOS MAGUS: Debt Payments Halted, Set To Reorganize -------------------------------------------------------- Court No. 21 of Buenos Aires' civil and commercial tribunal is reviewing the merits of Productos Magus S.R.L. petition to reorganize. Infobae recalls that the Company filed the petition following cessation of debt payments. Reorganization will allow Productos Magus to avoid bankruptcy by negotiating a settlement with its creditors. Clerk No. 41 is assisting the court on the Company's case. CONTACT: Productos Magus S.R.L. Ibera 4560 Buenos Aires ROYAL OIL: Begins Liquidation Proceedings ----------------------------------------- Royal Oil S.A. of Buenos Aires will begin liquidating its assets after Court No. 14 of the city's civil and commercial tribunal declared the Company bankrupt. Infobae reveals that the bankruptcy process will commence under the supervision of court- appointed trustee, Hugo Javier Mancusi. The trustee will review claims forwarded by the Company's creditors until Sep. 15, 2005. After claims verification, Mr. Mancusi will submit the individual reports for court approval on Oct. 28, 2005. The general report will follow on Dec. 12, 2005. Clerk No. 27 assists the court on this case. CONTACT: Mr. Hugo Javier Mancusi, Trustee Avda Corrientes 3169 Buenos Aires SAFIR S.A.: Court Rules Liquidation Required -------------------------------------------- Court No. 14 of Buenos Aires' civil and commercial tribunal ordered the liquidation of Safir 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 Luis Maria Escobar, the court-appointed trustee. Mr. Escobar will verify creditors' proofs of claim until Sep. 16, 2005. The verified claims will serve as basis for the individual reports to be submitted in court on Oct. 31, 2005. The submission of the general report follows on Dec. 13, 2005. Clerk No. 27 assists the court on this case, which will end with the disposal of the Company's assets in favor of its creditors. CONTACT: Mr. Luis Maria Escobar, Trustee Viamonte 1646 Buenos Aires * ARGENTINA: Moody's Ups Ratings as Credit Conditions Improve ------------------------------------------------------------- Moody's Investors Service has upgraded Argentina's foreign- currency country ceilings to reflect improving credit conditions, including debt relief following May's bond exchange that concluded a protracted and confrontational debt restructuring process. The rating agency upgraded the foreign-currency ceiling for bonds and notes to B3 from Caa1 and the ceiling for foreign- currency bank deposits to Caa1 from Caa2. Moody's has also upgraded foreign-currency-denominated BODENs, the government bonds that were issued following Argentina's 2001 default, to B3 from Caa1, while the local-currency rating of peso-denominated BODENs remains unchanged at B3. All ratings have a stable outlook. Argentina's local-currency guideline remains at Ba1. Although May's debt exchange served to improve Argentina's debt profile and to help alleviate the overall debt burden, Moody's decision in favor of the upgrades was further encouraged by recent calculations indicating that post-restructuring debt ratios are now in line with those observed in countries placed at the low end of the B-rated category. Another favorable credit development noted by the rating agency is the change that has been reported in the government's debt currency composition as the share of peso-denominated debt stands currently at some 44% compared with less than 5% four years ago, a condition that should serve to reduce, on the margin, Argentina's credit vulnerability to exchange rate fluctuations in the coming years. Concerns about the country's ability to maintain the conditions necessary to assure debt sustainability over time are part of the rationale for the current rating. Moody's indicated that it is uncertain if the economic performance observed during the last two years can serve as a guide to future growth, and to export and fiscal prospects beyond the near-term. Considerations of this nature are likely to persist for the foreseeable future and will have a decisive influence over future rating decisions involving Argentina's medium-term credit perspective. * ARGENTINA: Plans to Initiate Negotiations With IMF ---------------------------------------------------- Mr. Rodrigo de Rato, Managing Director of the International Monetary Fund (IMF), issued the following statement Wednesday: "The Argentine authorities have informed Fund management of their desire to start negotiations with the IMF on a new economic program. "The program supported by the Fund arrangement approved in September 2003 was not fully implemented because of a decision by the Argentine authorities to delay key structural elements of the program until completion of their debt restructuring. The authorities now believe that it is time to work toward a new IMF-supported program. "On June 20, the Board completed the Article IV consultation with Argentina. The summing up of the Board discussion, which is expected to be released soon, contains the Board's sense of the key economic policy priorities facing Argentina in order to sustain high growth and reduce poverty further. I believe it also conveys the main elements of policies that could form the basis of a Fund-supported program. I also understand the Argentine authorities will soon approve the publication of the underlying staff report, which provides the IMF staff's view of Argentina's economic outlook. "Because any new arrangement will involve exceptional access to IMF resources, the Fund's policy will require early consultation with the Executive Board on any new program negotiations. Accordingly, I intend to consult with the Board in the very near future regarding the broad outlines of a program that could be supported by an IMF arrangement. This Board meeting will also be an excellent opportunity for the Argentine authorities to convey to Executive Directors their own views about the content and timing of key measures of a future program. Such a Board meeting is expected to be in July." "After the Executive Board meeting next month, we expect to engage the Argentine authorities in discussions regarding a new IMF-supported program." CONTACT: INTERNATIONAL MONETARY FUND 700 19th Street, NW Washington, D.C. 20431 USA IMF EXTERNAL RELATIONS DEPARTMENT Public Affairs: 202-623-7300 - Fax: 202-623-6278 Media Relations: 202-623-7100 - Fax: 202-623-6772 =========== B R A Z I L =========== BANCO BRADESCO: Shareholder Dividend Set for July ------------------------------------------------- The Board of Directors of Banco Bradesco S.A. approved in a meeting held on Wednesday the Board of Executive Officer's proposal for the payment to the Company's stockholders of intermediary interest on equity capital related to the first half of 2005 to be made on July 20, 2005. In a letter sent to the Securities and Exchange Commission, the Company's Executive Vice President Milton Almicar Silva Vargas disclosed: The Board of Directors of this Bank, in a meeting held on this date, approved the Board of Executive Officer's proposal for the payment to the Company's stockholders of intermediary interest on own capital related to the first half of 2005, in the amount of R$0.57000 for common stock and R$0.62700 for preferred stock, which represent ten times the amount regular of Interests paid monthly, benefiting the stockholders registered in the Company's records on this date (June 29, 2005). The payment will be made on July 20, 2005, at the net amount of R$0.48450 for common stock and R$0.53295 for 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 the declared amount. The Interests relating to stocks under custody at CBLC - Brazilian Company and Depository Corporation will be paid to CBLC which will be transferred to the stockholders through the depository Brokers. The respective Interests will be computed, net of withholding Income Tax, in the calculation of the mandatory dividend for the year, as provided in the Corporate Bylaws. CONTACT: Banco Bradesco S.A. URL: http://www.bradesco.com.br Phone: 55-11-3684-9229 BRASKEM: Proposals for Deliberation Unanimously Adopted ------------------------------------------------------- AGENDA of Braskem S.A.'s 503rd Board of Directors Meeting held June 22, 2005: I) Subjects for deliberation The following resolutions were unanimously adopted: 1) PROPOSALS FOR DELIBERATION ("PD") -after due analysis of their terms and associated documents, the following Proposals For Deliberation were approved, which had been previously presented by the Board of Executive Officers for the cognizance of the members of the Board of Directors, as envisaged in its Internal Regulation, and the copies thereof having been properly filed at the Company's headquarters: a) PD. CA/BAK-10/2005 - Adaptation to the requirements formulated in the "Sarbanes Oxley Act" (SOX), in order to approve (i) the proposal to change the Internal Regulation of the Board of Directors as per the proposal previously presented by the Executive Officers, pursuant Annex 1 to PD.CA/BAK- 10/2005, and further contributions and observations made by the Fiscal Council, the final version whereof, after having been presented for the cognizance of all the Board Members present, was filed at the Company's headquarters; (ii) the "Pre-Approval Policy for the Engagement of Services that may be rendered by Independent Accountants", pursuant Annex 2 appended to this PD, abiding by the contributions made by the members of the Fiscal Council, forwarded when the meeting of the Fiscal Council was held on June 15, 2005, the final version whereof was provided for the cognizance of all, and filed at the Company's headquarters, the responsibility for its applicability, supervision and updating was assigned to the Company's Fiscal Council; b) PD.CA/BAK-11/2005 - Engagement of the Services of Independent Accountants, in order to ratify the selection of PricewaterhouseCoopers Auditores Independentes (PWC) as the external Independent Accountants for Braskem, and to authorize the Executive Officers to engage the services of PWC to accomplish auditing services regarding the annual and quarterly balance sheets for the year 2005 (BR GAAP and US GAAP); c) PD.CA/BAK-12/2005 - Association with Petrobras Quimica S.A. - Petroquisa , which, in compliance with the contributions and suggestions made by the Company's Investment Committee to the respective PD, approved (i) the "Feasibility Report" as defined by the respective PD; (ii) the implementation of the "Paulinia Project", as per the definition of the respective PD; and (iii) the incorporation of a new company which will serve as the joint venture between Braskem and Petroquisa, authorizing Braskem's Executive Officers to celebrate any documents, notices, and agreements that may be needed for the faithful implementation of the Paulinea Project; d) PD.CA/BAK-13/2005 - Investment into an Integrated Information System in order to authorize the execution of the "ERP Project", as per its definition in the respective PD, with the engagement of the services of the necessary company(ies), preceded by a specific audit to be carried out by Ernst &Young as per the Executive Summary appended as Annex I to the respective PD, there having been recorded the observations and recommendations made by the Board Members; and e) PD.CA/BAK-14/2005 - Investment to be Made in the PVC-Camacari Unit in order to approve the investment to acquire advance technology as envisaged in Braskem's Business Plan 2005-2009, and pursuant the Executive Summary which is an appurtenant to the respective PD, intended to treat the gaseous emissions originating from the PVC plant in Camacari, so as to insure the continued adequacy by Braskem to the intended environmental requirements; f) PD.CA/BAK-15/2005 -Modernization of the Polymerization Reactors at the PVC-Camacari Unit, in order to approve the investment to acquire advanced technology so as to insure the operability, trustworthiness and competitiveness of all the polymerization reactors used at Braskem's Camacari PVC Unit according to the presentation and justifications found in Annex 1 appended to the respective PD; g) PD.CA/BAK-16/2005 - Amendment and Exchange of Instruments of Indebtedness Issued on the International Market in order to allow the Executive Officers to celebrate any documents, notices and agreements that may be needed for the faithful implementation of the amendment and the exchange of the instruments of indebtedness on the international financial market, as per the reasons and terms that have been described in the respective PD; h) PD.CA/BAK-17/2005 - Financing of Investments Through Credit Obtained from the BNDES, in order to be able to authorize Braskem's Executive Officers to (i) enter into a credit facility with BNDES in the amount of R$384.623.077,66 (three hundred and eighty-four million, six hundred and twenty-three thousand, seventy-seven reais and sixty-six centavos), in the quality of borrower; and (ii) to sign all and any documents related to the Operation, as described in the respective PD, including the Finance Agreements by Opening up Credit Facilities nos. 05.2.0249.1, 05.2.0250.1 and 05.2.0251.1; i) PD.CA/BAK-18/2005 - Ratification of the Rate Regarding the 13th. Debenture Issuance, in order to approve the compensation to be paid for the Debentures, the issuance of which has been approved during the 501st. Board of Directors Meeting held on April 13, 2005, in the amount of 104.1% (one hundred and four and one tenth of one percent) of the cumulative daily rates for the over extra group DIs (Interfinance One Day Deposits), computed and disclosed by CETIP, based on 252 days, and expressed as percentages per year, taking into account the results obtained in the bookbuilding process. Thus, the powers of the Executive Officers were ratified to celebrate amendments to the Issuance Deed, as well as any other documents that may become necessary to implement said issuance. II) Matters for Cognizance: A presentation was made of the results accomplished by the Chief Executive Officer up to May, 2005. III) Matters of Interest to the Company: Nothing to record; IV) CLOSING OF THE AGENDA: There being nothing else to discuss, these minutes were drafted which, after being read, discussed, and found to be in order, will be signed by all the Board Members present, by the Chairman and by the Secretary of the Meeting. Sao Paulo, June 22, 2005 [Signatures: Pedro Augusto Ribeiro Novis - Chairman; Ana Patricia Soares Nogueira - Secretary; Alvaro Fernandes da Cunha Filho - Vice-President; Alvaro Pereira Novis; Andre Tapajos Cunha; Francisco Teixeira de Sa (pp/ Ruy Lemos Sampaio); Jose de Freitas Mascarenhas; Kuniyuki Terabe; Luiz Fernando Cirne Lima; Maria Roma de Freitas; Newton Sergio de Souza; Patrick Horbach Fairon]. CONTACT: BAK - Braskem S.A. Rua Eteno, 1561 Polo Petroquimico de Camacari Camacari Bahia CEP 42810-000 Brazil URL: http://www.braskem.com.br Phone: (55 11) 3443 9529 CEMIG: Board Interest on Equity Payments ---------------------------------------- The Board of Directors of Companhia Energetica De Minas Gerais - CEMIG, in a meeting held on Wednesday, decided to pay interest on equity in respect of the year 2005. NOTICE TO STOCKHOLDERS We hereby inform our stockholders that the Board of Directors, in a meeting held on 29 June 2005, decided to pay interest on equity in respect of the year 2005, in accordance with Section 9 of Law 9249/95 of 26 December 1995, which shall be taken into account and offset in the calculation of the obligatory dividend, in accordance with Clause 29, Paragraph 2 of the Bylaws, in the amount of R$ 283,000,000.00 (two hundred and eighty-three million Reais), which corresponds to R$ 1.7460008031 per thousand shares. This amount will be paid in two equal parts, the first on or before 30 June 2006 and the second on or before 30 December 2006. All stockholders whose names are on the company's Nominal Share Register on 10 July 2005 will have the right to this payment, on which tax at 15% will be withheld at source of payment, other than for stockholders that are exempt from this withholding under current legislation. The shares will trade with the exclusion of this benefit on 11 July 2005. We remind stockholders of the importance of updating their registration information. This can be done by visiting any branch of Banco Itau S.A. (the institution which administers Cemig's system of registered nominal shares), taking their personal documents with them. CONTACT: Companhia Energetica De Minas Gerais - CEMIG Investor Relations: Phone: 31 3299-3930 31 3299-4015 Fax: 31 3299-3934 31 3299-3933 URL: www.cemig.com.br E-Mail: ri@cemig.com.br ELETROPAULO METROPOLITANA: Sells $202M, High Yield 5-Year Bonds --------------------------------------------------------------- Power distributor Eletropaulo Metropolitana Eletricidade de Sao Paulo SA confirmed Tuesday that it sold on the international market BRL475-million (US$202mn) 5-year bonds denominated in the Brazilian currency. Business News Americas reports that the bonds will pay interest every six months at an annual rate of 19.125%. The Company, which is controlled by a joint venture between U.S.-based AES Corp. (AES) and Brazil's National Development Bank (BNDES), will use part of the proceeds to pay down BRL176 million and US$25.6 million of its existing debt, meeting conditions of a debt restructuring agreement it signed with creditors on March 12, 2004. CONTACT: 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 LIGHT SERVICOS: BNDES to Buy Debt as Part of Special Credit Line ---------------------------------------------------------------- Brazil's National Development Bank (BNDES) agreed Wednesday to buy BRL727 million worth of debentures to be issued by Light Servicos de Electricidade SA as part of its US$1.5 billion debt- restructuring program announced on May 18. According to Dow Jones Newswires, the 10-year debentures will pay annual interest equivalent to the BNDES's long-term interest rate, or TJLP, currently 9.75% per year, plus a four percentage point spread. BNDES can convert up to 50% of the debentures into Light's shares, whenever the firm's shareholders raise new capital or as the firm's operating losses decrease. BNDES agreed to buy the convertible debentures as part of its electric power credit program. The bank established the special credit line after a number of electric power utilities ran into financial problems following a slump in demand resulting from nine months of government-imposed power rationing in 2001 and 2002. Light's US$1.5 billion debt-restructuring program also includes extending maturities on more than US$600 million of short-term debt the Company owes 12 banks and investment funds, the postponement to 2012 from 2007 the payment of US$160 million in debt and a US$400-million capital injection by Light's controller, France's EDF. 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 LOCALIZA RENT: New Market Maker Retained for Share Trading ---------------------------------------------------------- Under the terms of Instruction #358 issued by CVM (Securities and Exchange Commission of Brazil) on January 3, 2002, Localiza Rent a Car S.A. (Bovespa: RENT3) ("Company") announces to shareholders and the market in general that, under the terms of Instruction #384 issued by CVM on March 17, 2003, Pactual Corretora de Titulos e Valores Mobiliarios S.A. ("Market Maker"), a joint-stock company headquartered in the city and state of Sao Paulo, Av. Brigadeiro Faria Lima, no. 3729, 6o andar, parte - Itaim Bibi, with corporate taxpayer ID (CNPJ/MF) 43.815.158/0001-22, has been hired as Market Maker for the Company's common shares ("RENT3"), within the scope of Bovespa's Novo Mercado, for a four-month period, automatically extended for the same period in the event no objections are raised by any party, aiming to promote the abovementioned shares' liquidity. The Company also announced that it has 23,026,325 common shares outstanding issued and its controlling shareholders did not reach an agreement with the Market Maker regulating voting rights or the purchase and sale of securities issued by the Company. Localiza operates in the car rental and fleet rental business and in the fleet management and franchising of those businesses. Thirty-two years in existence and with 299 agencies, Localiza is currently the largest car rental company in Latin America in number of agencies and the pioneer in fleet management business in Brazil. Localiza is part of BOVESPA's Novo Mercado and is listed under the ticker "RENT3". CONTACT: Localiza Rent a Car S.A. Investors: Silvio Guerra Tel: +011-5531-3247-7055 E-mail: ri@localiza.com Media: Priscilla Duarte Tel: +011-5531-3247-7879 Fax: +011-5531-3247-7684 E-mail: priscila@localiza.com NET SERVICOS: To Hold Extraordinary General Meeting July 12 ----------------------------------------------------------- NET Servicos de Comunicacao S.A. will hold an Extraordinary Shareholders' Meeting on July 12, 2005 at 11:00 p.m., at the Company's headquarters located at Rua Verbo Divino in the city and state of Sao Paulo, to deliberate on the following agenda: a) Reorganization of CHAPTER V - FISCAL COUNCIL - of the Company's bylaws to make this council a permanent one and to adjust under the scope of the Sarbanes-Oxley Act. b) Placement of the Fiscal Council, sitting and alternate member's election, and definition of their fixed remuneration. c) Change the article 5 of the Company's bylaws to reflect the Company's capital increase confirmed at the Board of Directors' Meeting held on May 10, 2005, from R$2,748,650,800.00 to R$3,387,408,498.71, arising from a private underwriting, within the authorized capital, corresponding to 745,147,153 common shares and 1,079,874,843 preferred shares, all registered, book- entry and nonpar shares, at a price of R$0.35 per common and preferred shares. The minute of the Company's bylaws to be deliberated on the Extraordinary General Meeting now summoned is available to the shareholders as from this date at the Company's headquarters, and was submitted to Bovespa - Sao Paulo Stock Exchange, under the scope of article 135, paragraph 3 and article 124, paragraph 6 of the Law 6.404/76, and amendments. The shareholders participating in the Fungible Custody of Registered Shares of the Stock Exchanges intending to participate in this Meeting shall submit a statement issued forty-eight (48) hours before the Meeting, containing their respective shareholding provided by the custody agency. CONTACT: NET Servicos de Comunicacao S.A. Rua Verbo Divino 1356 Chacara Santo Antonio Sao Paulo, SP 04719-002 Brazil Phone: 5511-5186-2000 URL: http://globocabo.globo.com PRIDE INTERNATIONAL: Signs Deepwater Semisubmersible Contracts -------------------------------------------------------------- Pride International, Inc. (NYSE: PDE) announced Wednesday that it has signed contracts to operate its four Amethyst-class deepwater semisubmersibles in Brazil. The Pride Rio de Janeiro and the Pride Portland, 5,500 foot water depth, dynamically- positioned semisubmersibles, are operated by the Company and owned by a joint venture of which Pride owns 30%. Both rigs received five-year contracts from Petroleo Brasileiro S.A. (Petrobras) for work offshore Brazil with total contract value of approximately $600 million, including mobilization and performance bonus opportunities. The contracts for the Pride Rio de Janeiro and the Pride Portland include a base dayrate of $141,750 and a 15% performance bonus potential plus mobilization amortization, for a maximum possible dayrate of approximately $164,000. In addition, Pride expects to receive approximately $9,000 per rig, per day in fees from the joint venture in connection with the Company's management of the two rigs. The Company currently anticipates both rigs to commence contract operations during October 2005 following client acceptance. Additionally, Pride announced that it has signed extensions of the existing contracts with Petrobras for the Pride Carlos Walter and the Pride Brazil, 5,000 foot water depth, dynamically-positioned semisubmersibles. These extensions represent potential contract revenues of $230 million, including performance bonus opportunities. The contracts extend two years through June 2008 at a base dayrate of $137,000 plus a 15% performance bonus potential, for a maximum possible dayrate of approximately $157,000, with the new terms commencing June 2006. Kevin C. Robert, Vice President -- Marketing commented, "We have enjoyed an excellent relationship with Petrobras, and these contracts allow Pride to expand our services in Brazil to six semisubmersibles on a long-term basis." Pride International, Inc., headquartered in Houston, Texas, is one of the world's largest drilling contractors. The Company provides onshore and offshore drilling and related services in more than 30 countries, operating a diverse fleet of 289 rigs, including two ultra-deepwater drillships, 12 semisubmersible rigs, 29 jackup rigs, 19 tender-assisted, barge and platform rigs, and 227 land rigs. CONTACT: PRIDE INTERNATIONAL, INC. Robert E. Warren Steven D. Oldham Tel: (713) 789-1400 ========= C H I L E ========= COEUR D'ALENE: Designates President for San Bartolome Project ------------------------------------------------------------- Coeur d'Alene Mines Corporation (NYSE: CDE, TSX: CDM), the world's largest primary silver producer and a growing gold producer, announced Wednesday the appointment of James K. Duff as President of Empresa Minera Manquiri, S.A., Coeur's Bolivian subsidiary, to lead the Company's efforts at the San Bartolome project. Mr. Duff has been actively involved in the San Bartolome project since 1999 and formerly served as Coeur's Vice President of Business Development. Jim has over 37 years of mining experience, 25 years of which were primarily focused on South American projects. In Mr. Duff's capacity, he will be responsible for managing the day to day activities of the project, which commenced construction activities in October, 2004, as well as continuing to monitor the overall political climate in Bolivia. Dennis E. Wheeler, Chairman, President and CEO stated, "We are pleased that Jim will be re-joining the Coeur team on a full time basis. The Company is currently evaluating the project timetable in view of the recent period of political change in Bolivia and Jim has the experience in project development and socio-economic issues in South America that will be of great benefit to the Company as we continue our efforts". Coeur d'Alene Mines Corporation is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The Company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia and Australia. CONTACT: COEUR D'ALENE MINES CORPORATION Investor Relations: Tony Ebersole, Director 800-523-1535 =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REPUBLIC: Emerges From Default, Ratings Upped To 'B' ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term foreign currency sovereign credit ratings on the Dominican Republic to 'B' from 'SD'. Standard & Poor's also raised its short-term foreign currency sovereign credit rating on the republic to 'B' from 'SD'. The long-term local currency sovereign credit rating was raised to 'B' from 'CC', the short-term local currency sovereign credit rating to 'B' from 'C'. The outlook on the local currency ratings is stable. Standard & Poor's also assigned its 'B' senior unsecured debt rating to Dominican Republic's two global bonds (a 9.5% bond due in 2011 and a 9.04% bond due 2018, together totaling $1.1 billion) that were issued as part of the recent restructuring. According to Standard & Poor's credit analyst Richard Francis, the upgrade of the Dominican Republic's ratings were prompted by the successful restructuring of the government's commercial bank loans and bonded debt. "A sustained fiscal adjustment and improved expectations following this reprofiling of scheduled amortization will likely boost domestic confidence," said Mr. Francis. "This, in turn, could enable the government to achieve its robust growth projections of 4% per annum for several years beginning in 2006. The result will be a lowering of the already- moderate general government debt burden, projected at about 50% of GDP (including recapitalization costs of public sector financial enterprises) at year-end 2005," he added. The Dominican Republic is exiting default with the highest rating ever assigned a sovereign previously rated 'SD'. Other post-default sovereign ratings have ranged between 'B-' and 'CCC+'. "Despite recent improvements, a number of challenges remain," noted Mr. Francis. "Monetary policy remains constrained by quasi-fiscal losses at the central bank. Political policy is constrained by weak, albeit improving, governance and the need for the executive to reach agreement with an opposition- controlled Congress," he concluded. Primary Credit Analyst: Richard Francis, New York (1) 212-438- 7348; richard_francis@standardandpoors.com Secondary Credit Analyst: John Chambers, CFA, New York (1) 212- 438-7344; john_chambers@standardandpoors.com ============= G R E N A D A ============= * GRENADA: IDB Approves $10M Loan for Grenada Reconstruction ------------------------------------------------------------ The Inter-American Development Bank announced Wednesday the approval of a $10 million soft loan to the Caribbean Development Bank to assist the recovery and reconstruction and recovery of Grenada in the aftermath of Hurricane Ivan. The resources will finance investment projects in the private sector for the revitalization of businesses, preparation of housing sites and services on properties with clear titles and reconstruction of public sector infrastructure facilities, including roads and bridges and installations critical to protecting the environment. Grenada, a Caribbean island state with a population of a little over 100,000, was severely hit by Hurricane Ivan in September 2004. About 80 percent of the building structures on the island were damaged and the main productive sectors, agriculture and tourism, were crippled. The economy contracted by three percent in 2004 compared with a 4 percent growth rate that had been projected prior to the hurricane. The IDB financial assistance is being coordinated with a worldwide relief and reconstruction effort of the world's main multilateral financial institutions and donor nations. The loan from the Fund for Special Operations is for a 40-year term, with a 10-year grace period, at a 1 percent interest rate during the grace period and a 2 percent rate thereafter. The IDB's charter enables it to assist small, vulnerable island states of the Caribbean through loans administered by the Caribbean Development Bank. CONTACT: Inter-American Development Bank - IDB Peter Bate E-mail: peterb@iadb.org Phone:(202) 623-2609 URL: http://www.iadb.org/ ============= J A M A I C A ============= AIR JAMAICA: S&P Assigns 'B' Rating to $150M Notes Due 2015 ----------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' rating to Air Jamaica Ltd.'s $150 million 9.375% notes due June 2015. The rating on the Air Jamaica notes, which is equal to the long-term foreign currency rating on the sovereign, is based on the government's unconditional guarantee of both principal and interest payments, and is subject to final review of the guarantee documentation and proper parliament approval. On Dec. 23, 2004, the government purchased 72.3% of the outstanding shares of Air Jamaica, giving it total control of the airline. The government had privatized the airline in 1994, but took control of it following major losses in recent years. "We believe that the airline may require more government support in the next few years to continue operations, due to strong competition from other international airlines, as well as its vulnerable cost structure," said Standard & Poor's credit analyst Juan P. Becerra. Air Jamaica will use proceeds to pay trade creditors, undertake capital expenditures, and meet working capital requirements. With the new notes, Air Jamaica is planning to prepay some credits to extend its current average debt life to 10 years from six months. The sovereign credit ratings on Jamaica are constrained by a high general government debt burden, limited fiscal flexibility, and vulnerability stemming from the island's geographical location and size. General government debt stock has been declining, reflecting improving fiscal performance since mid- 2003, and is expected to decline toward 130% of GDP by the end of this fiscal year (down from 138% in 2003 and 140% in 2002). Still, the looming debt size remains a major constraining factor on the ratings. Jamaica's debt profile is unfavorable, with a high (albeit declining) sensitivity to interest- and exchange- rate fluctuations, and an increasing share of more expensive commercial debt. The ratings are supported by the island's improving fiscal and external liquidity position (despite external shocks), ongoing commitment to fiscal austerity, and stronger growth prospects- all of which have helped stabilize the Jamaican dollar and increase investor confidence. The stable outlook reflects the outlook on the sovereign credit rating on Jamaica. Any rating action on Jamaica would be reflected in the ratings on the Air Jamaica notes. Jamaica's stable outlook balances the improvement in the government's fiscal and debt positions, supported by promising growth prospects and a stronger external liquidity stance, with significant risk stemming from the size of the government's debt. PRIMARY CREDIT ANALYST: Juan P Becerra, Mexico City (52) 55- 5081-4416; juan_becerra@standardandpoors.com SECONDARY CREDIT ANALYSTS: Olga Kalinina, CFA, New York (1) 212- 438-7350; olga_kalinina@standardandpoors.com Joydeep Mukherji, New York (1) 212-438-7351; joydeep_mukherji@standardandpoors.com KAISER ALUMINUM: Files Reorganization Plan, Disclosure Statement ---------------------------------------------------------------- Kaiser Aluminum Corporation announced Wednesday that it, together with Kaiser Aluminum & Chemical Corporation and 19 of their subsidiaries, filed a plan of reorganization and a related disclosure statement in the U.S. Bankruptcy Court for the District of Delaware. The disclosure statement is subject to approval by the Bankruptcy Court, and certain provisions of the plan regarding the treatment of asbestos and other personal injury claims remain under negotiation. In addition, the plan must be voted upon by Kaiser's creditors and ultimately confirmed by the Bankruptcy Court. Once the disclosure statement is approved by the Bankruptcy Court, the company will commence solicitation of approval of the plan by the creditors. No assurance can be given that the plan will ultimately receive the necessary approvals by creditors or be confirmed by the Bankruptcy Court, or that the transactions contemplated by the plan will ultimately be consummated. Based on the recent pace of the reorganization process and assuming there are no prolonged delays in the plan approval process, the company would expect to emerge from Chapter 11 during the fourth quarter of 2005. Consistent with disclosures in Kaiser's Annual Report on Form 10-K for the year ended December 31, 2004 and its Quarterly report on Form 10-Q for the period ended March 31, 2005, the company's restructuring would resolve pre-petition claims that are currently subject to compromise. Those claims include, among others, retiree medical, pension, asbestos and other tort, bond and note claims. The plan would also result in the cancellation of the equity interests of current stockholders and the distribution of equity in the emerging company to creditor constituents. The majority of the new equity would be distributed to two voluntary employee benefit associations that were created in 2004 for salaried and hourly retirees in connection with the cancellation of retiree medical plans. All pre-petition personal injury claims relating to asbestos, silica, coal tar pitch and hearing loss would be permanently resolved by the formation of certain trusts funded primarily by Kaiser's rights to proceeds from certain of its insurance policies. Kaiser Aluminum President and Chief Executive Officer Jack A. Hockema said on Wednesday, "In February of 2002, we said that Chapter 11 would provide us with the tools we needed to restructure our balance sheet and return to sustained long-term profitability. The plan we filed today provides those tools. We are now well on our way to completing our goal of emerging with a solid financial position, a strong balance sheet and the capability to grow in our key transportation and industrial markets." Hockema said, "None of this would have been possible without the employees, customers, suppliers and other supporters who stuck with us through this period, and we thank them. Our job now is to complete the reorganization and drive this company to its full potential in terms of customer service, quality, product development and financial performance." Kaiser Aluminum Corporation (OTCBB:KLUCQ) is a leading producer of fabricated aluminum products for aerospace and high-strength, general engineering, automotive and custom industrial applications. The company has more than 2,000 employees and 11 plants in North America having the capacity to produce more than 400 million pounds annually of value-added sheet, plate, extrusions, forgings, rod, bar and tube. Upon emergence, the company also expects to continue to own its 49% interest in Anglesey Aluminium Limited, which operates an aluminum smelter in Wales. CONTACT: Kaiser Aluminum Corporation Scott Lamb Phone: 713-775-2742 URL: www.kaiseraluminum.com =========== M E X I C O =========== EMPRESAS ICA: Plans $200M Share Issue, Dilution a Concern --------------------------------------------------------- Empresas ICA (NYSE; BMV: ICA), the country's largest engineering and construction outfit, seeks to raise as much as US$200 million by issuing new shares in the Company. According to a source, the Company, which will ask shareholders to vote the capital increase at a meeting on July 14, expects the share offer to take place in the Mexican market in early August. ICA has earmarked the proceeds of the stock offering to fund new projects. "All of the projects coming up in the short term require capital and lines of credit, and a company that does not have capital will not be able to meet new opportunities," newspaper El Financiero reported company officials as saying. ICA is part of the consortium expected to win the concessions contract for the US$600 million Cuautitlan-Buenavista suburban train concession, along with French firm Alstom and financial group Grupo Interacciones. The Company has restructured its finances over the past year, which has allowed it to post three straight quarters of net profit after six years of losses. In January of last year, ICA called for a capital increase worth about US$230 million, which helped it ease its debt burden and bolster growth. In May, it paid off US$94.9 million of debt that cut liabilities at its corporate level to zero and has been busy refinancing other chunks of debt. Analysts believe the new share issue could have a negative impact on the Company's stock price in the short term because it will dilute the participation of current shareholders in ICA. CONTACT: Empresas ICA Sociedad Controladora S.A. de CV Minera No. 145 Edificio Central Mexico, DF 11800 Phone: 52 55 792 9991 Fax: 52 5 271 2431 URL: http://www.ica.com.mx ============= U R U G U A Y ============= URAGUA: Files $24M Lawsuit Against Government --------------------------------------------- Private water operator Uragua will bring a US$24-million lawsuit against the government, reports Business News Americas. The move follows a failure by both sides to come up with an agreement regarding state water utility OSE's decision last month to revoke Uragua's concessions contract to operate in the city of Maldonado. Uragua expressed regret about the impasse. "For us, this means that the time has come and gone when we had hoped that the government would open up a formal dialogue," company spokesman Ernesto Kreimerman said. After rescinding Uragua's concession for allegedly not meeting requirements as outlined in the contract, OSE announced plans to absorb 115 of the private firm's workers. ================= V E N E Z U E L A ================= PDVSA: Obtains $423M Dividend Payment From CITGO ------------------------------------------------ State oil firm Petroleos de Venezuela (PDVSA) received a dividend payment of US$423 million from its US refining arm CITGO Petroleum Corp. for the year 2004, reports Business News Americas. The amount, according to PDVSA CFO Eudomario Carruyo, will be used by Mercal, a state-sponsored chain of supermarkets and mini markets that sells staple foodstuffs at subsidized prices. The opposition has denounced this scheme, saying it is a ploy used by the administration to win votes in the coming election. PDVSA does not expect additional dividends from CITGO for the rest of this year, Carruyo said. 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 PDVSA: To Pay $688M to Private Operators This Week -------------------------------------------------- PDVSA will pay private companies involved in 32 oil operating agreements a total of US$688 million this week to settle the Company's account up to June 27, Business News Americas reports, citing PDVSA CFO Eudomario Carruyo. Of the total amount, US$386 million will be paid in US dollars and the remainder in the local currency in line with the government's decision to reduce its costs by paying private operators 50:50 in US dollars and bolivares. The Company "will review the cost structures of each of the agreements to determine what cost should be paid in dollars depending on the justification each company gives of dollars invested in equipment and what [costs] are in bolivares, for instance the Venezuelan payroll," Mr. Carruyo said. Until now, PDVSA had paid producers about 48% of the spot price of the West Texas Intermediate benchmark crude price in US dollars. In addition, PDVSA reimbursed companies for operating expenses in US dollars. But President Hugo Chavez, who considered this arrangement costly on the part of PDVSA, decided in May that operators will be paid in bolivares and said those companies that do not like the new conditions "can sue me." He also ordered the operators to migrate to mixed capital joint ventures controlled by PDVSA by the end of this year or leave. PDVSA: Undertaking New Exploration Studies in Lake Maracaibo ------------------------------------------------------------ Petroleos de Venezuela will pursue new exploration studies in Lake Maracaibo where reserves of 2 billion barrels of hydrogen sulphur associated hydrocarbons have been estimated, announced oil state company Exploration and Production Vice-President Luis Vierma. "We need to develop a technology to efficiently separate this component and be able to use these reserves", he said. This activity makes part of the exploration and production program being executed by PDVSA, which has resulted in the discovery of major reservoirs in the three corporate divisions. The plan was implemented to carry out re-exploration activities in areas known to hold reserves, and exploration activities in areas that have never been drilled before. Mr. Vierma pointed out these findings during his appearance before the special sub-commission of the Comptrollership Permanent Commission of the National Assembly which is in charge of investigating alleged irregularities in CITGO and PDVSA Services Inc. "There have been major achievements in the re-exploration of the Western areas. We have completed the exploration of Franquera 1X, a well in the eastern coast of Lake Maracaibo, which is currently producing 4,000 barrels per day. This discovery is opening up the way to a reservoir that may leverage our reserves," Mr. Vierma stated. This volume substantially exceeds the average well production in the area, which is 200,000 barrels per day. In the Tomoporo field exploration activities have been completed in wells Tom 12 and Tom 13, which will soon guarantee an additional production of 12,000 barrels per day. Mr. Vierma affirmed "in 3 years we will be producing approximately 220,000 barrels per day in that area", and also highlighted that drilling in Rubio would start next year, while exploration in the southern Lake would continue. As regards the Center South division, two wells were discovered in the last two months in the Borburata field. These wells will represent an additional production of 3,000 barrels, and will contribute barrels to the resource base. Luis Vierma also took this opportunity to underline the completion of drilling activities in Travis, a well that led to the discovery of a reservoir that will start producing in the short term. Mr. Vierma also highlighted developments in Chaguaramal and Cotoperi. PDVSA: Gas Unit Sets Sales Record in Domestic Market ---------------------------------------------------- PDVSA GAS set a gas sales record in the national market this past weekend when it reached 1.967 billion of standard cubic feet per day (BSCFD) of gas sales both for the industrial and domestic sectors. On Saturday, June 18, 2005, the gas PDVSA affiliate reached a sales level of 1.948 BSCFD, thus breaking the record achieved on January 3, 2005 of 1.944 BSCFD. This growth in domestic gas sales reflects the steady effort the New PDVSA GAS is making to achieve a greater and better distribution of our hydrocarbons. Once again, gas consolidates its position as raw material and energy input for the domestic and the industrial sectors in our country, while increasing the quality of life of the Venezuelan people. *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and Sheryl Joy P. Olano, Editors. Copyright 2005. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. 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