/raid1/www/Hosts/bankrupt/TCRLA_Public/050809.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, August 9, 2005, Vol. 6, Issue 156
Headlines
A R G E N T I N A
BAUD MOL: Court Approves Concurso Motion
BODEGAS Y VINEDOS: Gets Court Approval for Reorganization
CHIFLON S.A.: Gears for Reorganization
CONSTRUCCIONES NAMASTE: Liquidates Assets to Pay Debts
CRM: Moody's Assigns B3 Rating to Senior Unsecured Debt
DEL PLATA: Seeks Judicial Endorsement of Preventive Agreement
E.M.E.P. S.R.L.: Court Converts Reorganization to Bankruptcy
ECORIN S.A.: Court Rules for Liquidation
EL SOL: Reorganization Proceeds To Bankruptcy
EMISSION S.A.: Court Grants Reorganization Plea
LANDERS S.A.: Enters Bankruptcy on Court Orders
LASTICINT S.R.L.: Declared Bankrupt by Court
RAMSAX INGENIERIA: Court Declares Company Bankrupt
SANATORIO CIUDADELA: Date of Informative Assembly Set
TGS: Vice Chairman, Director Resign, Replacements Appointed
TRANSENER: Petrobras Ordered to Present Divestment Plan
TRANSPORTE GUADALUPE: Court Deems Bankruptcy Necessary
B E R M U D A
LOM HOLDINGS: Buys Back Own Shares
B O L I V I A
AGUAS DEL ILLIMANI: Govt. May Sign Share Purchase Pact This Week
B R A Z I L
BANCO RURAL: Moody's Downgrades Ratings
BANCO DO NORDESTE: Moody's Withdraws Ratings for Bus. Reasons
BICBANCO: Moody's Assigns B1 to $30M Senior Unsecured Notes
BRASKEM: Sees Signing of $65M Software Deal By Month's End
COPEL: Grants 6.84% Discount to Customers Who Pay Bill When Due
EMBRATEL: Tapped to Buy Portugal Telecom's Local Unit
NET SERVICOS: Shareholder Decreases Ownership in PN Shares
TCP: Notified by NYSE of Continued Listing Non-compliance
VARIG: Ups Ticket Prices on Rising Fuel Costs
C O L O M B I A
TELECOM: Govt. Mulls Hiring Telmex to Administer Firm
J A M A I C A
AIR JAMAICA: FAA Re-certification Completed
M E X I C O
BALLY TOTAL: Receives Notices of Default, Extends Consent Date
GRUPO MEXICO: La Caridad Miners Preparing to Go On Strike
ROYAL SHELL: Completes $1.75B Sale of Intergen
U R U G U A Y
UTE: To Import Power From Argentina
V E N E Z U E L A
PDVSA: Signs Transitory Agreement with Harvest Natural Unit
- - - - - - - -
=================
A R G E N T I N A
=================
BAUD MOL: Court Approves Concurso Motion
----------------------------------------
Buenos Aires' civil and commercial Court No. 6 approved a
petition for reorganization filed by Baud Mol S.A., according to
a report by Argentine daily La Nacion.
The Company is entrusted to its receiver, Ms. Clara Auerhan, who
will verify claims until Oct. 12, 2005. After verifying the
claims, the receiver will then submit the individual and general
reports to court. Dates for submission of these reports are yet
to be disclosed.
The informative assembly will be held on July 28, 2006. This is
one of the last parts of the reorganization process.
Clerk No. 12, assists the court on the case.
CONTACT: Baud Mol S.A.
Rivadavia 1238
Buenos Aires
Ms. Clara Auerhan, Trustee
Uruguay 872
Buenos Aires
BODEGAS Y VINEDOS: Gets Court Approval for Reorganization
---------------------------------------------------------
Bodegas y Vinedos Ingrassia S.A.C.I.A. will begin reorganization
following the approval of its petition by Court No. 1 of
Mendoza's 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.
Monica Celina Calderon will oversee the reorganization
proceedings as the court-appointed trustee. She will verify
creditors' claims until Dec. 14, 2005. The validated claims will
be presented in court as individual reports on Feb. 24, 2006.
Ms. Calderon 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 April 11, 2006.
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 Sep. 21, 2006.
CONTACT: Bodegas y Vinedos Ingrassia S.A.C.I.A.
Azcuenaga y Terrada
Lujan de Cuyo (Mendoza)
Ms. Monica Celina Calderon, Trustee
Buenos Aires 502
Ciudad de Mendoza (Mendoza)
CHIFLON S.A.: Gears for Reorganization
--------------------------------------
San Fernando del Valle de Catamarca's civil and commercial Court
No. 1, with assistance from Clerk No. 2, issued a resolution
opening the reorganization of Chiflon S.A. This pronouncement
authorizes the Company to begin drafting a settlement proposal
with its creditors in order to avoid liquidation. The
reorganization allows Chiflon S.A. to retain control of its
assets subject to certain conditions imposed by Argentine law
and the oversight of the court appointed trustee.
Mr. Ramon Felix Aguirre will serve as trustee during the course
of the reorganization. He will be validating creditors' proofs
of claim until Aug. 15, 2005. The results of the verification
will be presented in court as individual reports on Sep. 27,
2005. The trustee is also obligated to give the court a general
report of the case on Nov. 9, 2005. The general report
summarizes events relevant to the reorganization and provides an
audit of the Company's accounting and business records.
Chiflon S.A. will present the completed settlement proposal to
its creditors during the informative assembly. The date for the
said assembly is yet to be disclosed.
CONTACT: Mr. Ramon Felix Aguirre
Juan de Sosa y Leon 649
San Fernando del Valle de Catamarca (Catamarca)
CONSTRUCCIONES NAMASTE: Liquidating Assets to Pay Debts
--------------------------------------------------------
Buenos Aires-based Construcciones Namaste S.R.L. will begin
liquidating its assets following the pronouncement of the city's
Court No. 10 that the Company is bankrupt, reports Infobae.
The bankruptcy ruling places the Company under the supervision
of court-appointed trustee, Jorge Osvaldo Stanislavsky. The
trustee will verify creditors' proofs of claim until Oct. 7,
2005. The validated claims will be presented in court as
individual reports on Nov. 21, 2005.
Mr. Stanislavsky 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 Feb. 2, 2006.
The bankruptcy process will end with the disposal of the
Company's assets in favor of its creditors.
CONTACT: Mr. Jorge Osvaldo Stanislavsky, Trustee
Talcahuano 768
Buenos Aires
CRM: Moody's Assigns B3 Rating to Senior Unsecured Debt
-------------------------------------------------------
US $150 million of debt affected
Moody's Latin America assigned a B3 Foreign Currency Rating and
a Baa3.ar National Scale Rating to the US $150 million of senior
unsecured debt of Compania de Radiocomunicaciones Moviles (CRM)
with a stable outlook. The ratings reflect the restructured
status of the debt, improved operating performance in 2004, as
well as the potential benefits of ownership by Telefonica
Moviles (Spain).
CRM is now current on interest and principal due to holders of
its previously defaulted US$150 MM bonds, following its purchase
by Telefonica Moviles de Espana (TM). The company defaulted on
its debt in mid 2002 following the Argentinean peso devaluation.
TM, who subsequently acquired the regional assets of BellSouth
Corporation, including CRM, already had a controlling interest
in another telecommunications company in Argentina, TelefĒnica
Comunicaciones Personales S.A. (TCP) which operated under the
UNIFON brand name. Soon after Telefonica MĒviles took over CRM,
CRM's due and unpaid debt was restructured. As a result, a great
proportion of total debt is now held by TM as an inter-company
loan. Together, the two companies hold over 40% share of the
Argentinian wireless market, which Moody's expects will provide
a platform for sustained growth and improved operating results.
CRM faces considerable uncertainty, including execution risk in
integrating its network with its sister company, TCP. Moody's
also notes the lack of clarity with respect to the timing and
ultimate structure of the formal merger of the two companies,
and the uncertain timeframe for regulatory liberalization of
frequency bands.
The ratings incorporate CRM's strong 34% revenue growth in 2004
compared to the previous year. Since the beginning of this year,
both companies owned by the Telefonica Group have been operating
commercially under the brand name used by Telefonica Moviles
worldwide, namely "MOVISTAR". New clients are expected to be
signed up by TCP, the ex-UnifĒn unit. As a consequence, it would
be TCP who invest in its network and more aggressively
developing the GSM network. Moody's does not expect additional
growth in CRM's subscriber base. These developments are likely
to lead to a reduction in CRM's acquisition and cap-ex costs and
some margin improvement, which could in turn increase cash flow
available for debt reduction.
CRM and TCP combined occupy a strong market position, with more
than a 40% market share. Even though both companies are going to
be fully merged into one legal entity at some point in future,
the timing for that merger has not a yet been established.
Headquartered in Buenos Aires, CRM is a wireless
telecommunications service provider owned by Telefonica Moviles
(Spain).
DEL PLATA: Seeks Judicial Endorsement of Preventive Agreement
-------------------------------------------------------------
Buenos Aries-based company Del Plata Consignataria is seeking
the approval of the city's civil and commercial Court No. 18 for
the endorsement of the out-of-court preventive agreement between
the Company and its creditors.
The report adds that that the Company filed a "Concurso
Preventivo" petition following cessation of debt payments which
cost $1,471,545.34.
The city's Clerk No. 35 assists the court on this case.
CONTACT: Del Plata Consignataria
Montevideo 711
Buenos Aires
E.M.E.P. S.R.L.: Court Converts Reorganization to Bankruptcy
------------------------------------------------------------
E.M.E.P. S.R.L., which was undergoing reorganization, entered
bankruptcy on orders from Court No. 2 of Ciudad de Neuquen's
civil and commercial tribunal, according to Infobae. The court
assigned Estudio Monti Edgardo Cesar, Sabio Jorge Daniel and
Grisolia Sonia Monica as the Company's receivers.
The credit verification process will be done "por via
incidental", says the report.
CONTACT: E.M.E.P. S.R.L.
Ruta 7 Km. 21
Lote D
Vista Alegre Sur (Neuquen)
Estudio Monti Edgardo Cesar
Mr. Sabio Jorge Daniel
Ms. Grisolia Sonia Monica, Trustees
ECORIN S.A.: Court Rules for Liquidation
----------------------------------------
Court No. 1 of Buenos Aires' civil and commercial tribunal
ordered the liquidation of Ecorin 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 Oscar Alfredo Arias, the
court-appointed trustee.
Mr. Arias will verify creditors' proofs of claim until Sep. 15,
2005. The verified claims will serve as basis for the individual
reports to be submitted in court.
Clerk No. 1 assists the court on this case, which will end with
the disposal of the Company's assets in favor of its creditors.
CONTACT: Mr. Oscar Alfredo Arias, Trustee
Carlos Pellegrini 1063
Buenos Aires
EL SOL: Reorganization Proceeds To Bankruptcy
---------------------------------------------
The reorganization of El Sol S.R.L. has progressed into
bankruptcy. Argentine news source Infobae relates that San
Miguel de Tucuman's civil and commercial Court No. 8 ruled that
the Company is "Quiebra Decretada".
The report adds that the court assigned Estudio Renteria, Lopez
Garcia as trustee, who will verify creditors' proofs of claim
until Sep. 5, 2005.
The court also ordered the trustee to prepare individual reports
after the verification process is completed, and have them ready
by Oct. 17, 2005. A general report on the bankruptcy process is
expected on Dec. 19, 2005.
CONTACT: El Sol S.R.L.
San Juan 3560
Tucuman
Estudio Renteria, Lopez Garcia, Trustee
Manuel Alberti 738
San Miguel de Tucuman (Tucuman)
EMISSION S.A.: Court Grants Reorganization Plea
-----------------------------------------------
Emission S.A. successfully petitioned for reorganization after
Mendoza's civil and commercial Court No. 7 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 Eduardo Julio Quiroga will serve as trustee
during the course of the reorganization. The trustee will be
accepting creditors' proofs of claim for verification until Aug.
25, 2005.
After verifications, the trustee will prepare the individual
reports and submit it in court on Oct. 20, 2005. He will also
present a general report for court review on March 14, 2006.
The Company will endorse the settlement proposal, drafted from
the submitted claims, for approval by the creditors during the
informative assembly scheduled on June 28, 2006.
CONTACT: Emission S.A.
Renato Della Santa 1448
Villa Hipodromo
Godoy Cruz (Mendoza)
Mr. Eduardo Julio Quiroga, Trustee
Mitre 660
Ciudad de Mendoza (Mendoza)
LANDERS S.A.: Enters Bankruptcy on Court Orders
-----------------------------------------------
Landers S.A. enters bankruptcy protection after Court No. 5 of
Buenos Aires' civil and commercial tribunal, with the assistance
of Clerk No. 10, 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 Marta Susana Polistina
as trustee. Ms. Polistina will be verifying creditors' proofs of
claim until the end of the verification phase on Sep. 27, 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 Nov. 8, 2005 followed by the general report, which is due on
Dec. 21, 2005.
CONTACT: Ms. Marta Susana Polistina, Trustee
Avda. Corrientes 745
Buenos Aires
LASTICINT S.R.L.: Declared Bankrupt by Court
--------------------------------------------
Lasticint S.R.L. is now "Quiebra" - meaning bankrupt, says
Infobae. Buenos Aires' civil and commercial Court No. 1 decreed
the Company's bankruptcy and appointed Sandra Claudia D
Ambrosio, as receiver for the Company. Ms. Sandra Claudia D
Ambrosio will be reviewing creditors' claims until Sep. 14,
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. 1, will conclude the bankruptcy
process by liquidating its assets to repay creditors.
CONTACT: Ms. Sandra Claudia D Ambrosio, Trustee
Suipacha 211
Buenos Aires
RAMSAX INGENIERIA: Court Declares Company Bankrupt
--------------------------------------------------
Court No. 3 of Bahia Blanca's civil and commercial tribunal
declared local company Ramsax Ingenieria S.R.L. bankrupt,
reports Infobae. The Company was undergoing reorganization when
the ruling was issued.
The receiver, Eduardo A. Miraballes, will verify claims "por via
incidental", as the court ordered. The receiver will also be
responsible for the individual and general reports.
CONTACT: Mr. Eduardo A. Miraballes, Trustee
San Martin 372
Bahia Blanca
SANATORIO CIUDADELA: Date of Informative Assembly Set
-----------------------------------------------------
The informative assembly for the Sanatorio Ciudadela S.A.
reorganization case will be on Nov. 7, 2005, Infobae reports.
The said assembly is the final stage of reorganization where the
settlement proposal is presented to the Company's creditors for
approval.
Sanatorio Ciudadela S.A. began the reorganization following the
approval of its petition by Court No. 7 of San Miguel de
Tucuman's civil and commercial tribunal.
The court appointed a trustee who supervised the reorganization
proceedings and verified creditors' claims. The claims were
presented to court as individual reports. The general report,
which contained the Company's audited accounting and business
records as well as the summary of important events pertaining to
the reorganization, was also submitted to the court.
TGS: Vice Chairman, Director Resign, Replacements Appointed
-----------------------------------------------------------
Transportadora de Gas del Sur (TGS) sent a letter to the
Comision Nacional de Valores on Thursday announcing that Mr.
Eduardo M. Ojea Quintana and Victor Diaz Bobillo submitted their
resignations as Vice Chairman and Director respectively to the
Board of Directors in the meeting held on Wednesday.
Atty. Adrian E. Hubert, lawyer of TGS, wrote:
In the said meeting, the Board appointed former Alternate
Director Mr. Alberto Oucinde in replacement of Mr. Ojea Quintana
and former Alternate Director Mr. Carlos De La Vega in
replacement of Mr. Diaz Bobillo.
CONTACT: Buenos Aires
Investor Relations
Mr. Gonzalo Castro Olivera
Finance & IR Manager
E-mail: gonzalo_olivera@tgs.com.ar
Ms. Maria Victoria Quade
Investor Relations
Ms. victoria_quade@tgs.com.ar
Phone: (54-11) 4865-9077
Media Relation
Mr. Rafael Rodriguez Roda
Phone: (54-11) 4865-9050 ext. 1238
Mr. Kevin Kirkeby
E-mail: kkirkeby@hfgcg.com
Phone: (646) 284-9416
TRANSENER: Petrobras Ordered to Present Divestment Plan
-------------------------------------------------------
Argentina's Energy Secretary ordered Petrobras Energia, the
local subsidiary of Brazil's federal energy producer Petrobras,
to present a divestment plan outlining the sale of its stake in
power transporter Transener, reports Dow Jones Newswires.
Petrobras Energia and local investment group Dolphin Fund
Management hold equal stakes in Citelec, Transener's holding
company. Petrobras Energia gained the stake when it took over
Argentine company Perez Companc in 2003. As part of the deal,
Petrobras agreed to divest its stake in Transener, addressing
the Argentine government's concerns that the country's biggest
power transporter would be in foreign hands.
In May, regulators published a resolution that set a March 31,
2006, deadline for Petrobras to sell its 50% stake in Citelec
and present a divestment plan within 15 days. Last month,
however, officials withdrew the deadline at Petrobras' request.
The government has issued a new resolution, updating the
previous one. In its new resolution, the government ordered
Petrobras to present its divestment plan although it didn't set
a deadline for when the company must submit the plan. The new
resolution only required that advances toward the sale must be
presented to regulators on a quarterly basis.
CONTACT: TRANSENER S.A.
Paseo Colon 728 6th Floor
(1063) Buenos Aires
Republica Argentina
Tel: (54-11) 4342-6925
Fax: (54-11) 4342-7147
Email: info-trans@transx.com.ar
Web site: http://www.transener.com.ar
TRANSPORTE GUADALUPE: Court Deems Bankruptcy Necessary
------------------------------------------------------
Transporte Guadalupe S.R.L., which was undergoing
reorganization, entered bankruptcy on orders from Ciudad de
Santa Fe's civil and commercial Court No. 10. Infobae relates
that the court appointed a trustee to conduct the credit
verification process "por via incidental."
CONTACT: Transporte Guadalupe S.R.L.
Juan de Garay 2761
Ciudad de Santa Fe (Santa Fe)
=============
B E R M U D A
=============
LOM HOLDINGS: Buys Back Own Shares
----------------------------------
LOM (Holdings) Limited (LOM) has informed the Bermuda Stock
Exchange (BSX) that the Company repurchased 20,000 of its own
shares on 21st July 2005 at a price of $3.00 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
=============
B O L I V I A
=============
AGUAS DEL ILLIMANI: Govt. May Sign Share Purchase Pact This Week
----------------------------------------------------------------
The Bolivian government is expected to sign a share purchase
agreement with French energy group Suez this week, reports
Business News Americas.
Under the agreement, the government will buy out Suez's
controlling interest in La Paz waterworks company Aguas del
Illimani (AISA), whose 30-year concession to provide basic
services to La Paz and El Alto has been rescinded following
complaints by residents alleging poor service.
Earlier reports suggested that the government has offered to buy
a majority stake in AISA for US$11 million to avoid a service
interruption. The proposal came after residents in one area
threatened to launch street protests for fear that ongoing work
to extend water connections would come to a standstill in the
event of AISA ceasing to administer the service.
===========
B R A Z I L
===========
BANCO RURAL: Moody's Downgrades Ratings
---------------------------------------
Moody's Investors Service downgraded the ratings of Banco Rural
S.A. The bank financial strength rating was downgraded to E+,
from D-, and the long term global local currency deposit rating
of Ba3 was lowered to B2. Moody's also downgraded the long- and
short-term national scale deposit ratings of A3.br/BR-2 to
Ba1.br/BR-4. In addition, Moody's has assigned a negative
outlook on all of the bank's long-term ratings. The outlook on
the B2 foreign currency deposit rating and on the B1 foreign
currency bond rating was changed to negative, from positive.
The rating agency said that Rural's intrinsic financial strength
has been weakened by the reduction in earning assets that was
necessary to conform to a declining deposit base. Changes in the
bank's funding dynamics have also constrained its lending
operations, and that may limit Rural's franchise and financial
performance going forward.
Moreover, Moody's noted that the recent sale of Rural's consumer
loans to Brazil's deposit insurance corporation, FGC, which was
a mechanism designed to aid the bank's liquidity position,
indicated the need for liquidity support in a situation of
stress. Although a positive factor for the bank's cash flow,
such support is consistent with an E+ financial strength rating.
The following ratings were affected:
- Bank financial strength rating: downgraded to E+, from D-,
negative outlook
- Long-term global local currency deposit ratings: downgraded
to B2, from Ba3, negative outlook
- Long- and short- term national scale deposit ratings:
downgraded to Ba1.br/ BR-4, from A3.br/BR-2, negative outlook
- Long-term foreign currency deposit rating: outlook changed to
negative, from positive
- Long-term foreign currency bond rating: outlook changed to
negative, from positive
BANCO DO NORDESTE: Moody's Withdraws Ratings for Bus. Reasons
-------------------------------------------------------------
Moody's Investors Service has withdrawn all ratings for Banco do
Nordeste do Brasil S.A., for business reasons.
This action does not reflect a change in the banks'
creditworthiness. For further details please refer to Moody's
Withdrawal Policy on moodys.com.
Banco do Nordeste do Brasil S.A. had total assets of US$4.9
billion as of March 31, 2005.
The following ratings were withdrawn:
Bank Financial Strength Rating: E+, with stable outlook
Long-term foreign currency bond rating: Ba2, with positive
outlook
Long-term foreign currency deposit rating: B2, with positive
outlook
Short-term foreign currency deposit rating: Not Prime, with
stable outlook
BICBANCO: Moody's Assigns B1 to $30M Senior Unsecured Notes
-----------------------------------------------------------
Moody's Investors Service assigned a B1 long-term foreign-
currency rating to Banco Industrial e Comercial S.A.- BICBANCO's
US$200,000,000 Euro Medium Term Note Program. In addition,
Moody's assigned a B1 long-term foreign-currency rating to the
three-year US$30,000,000 senior unsecured notes issued under the
program. The outlook on the ratings is positive.
Moody's stated that the B1 rating incorporates BICBANCO's
fundamental credit quality, which is reflected by its Ba3 global
local-currency deposit rating and which includes all relevant
country risks. The B1 rating also incorporates the probability
of a sovereign default implied by the Brazilian government's
sub-investment-grade B1 foreign currency bond rating, as well as
the likelihood that the Brazilian government could impose a debt
moratorium in the event of default on its own foreign currency
obligations.
Moody's noted that the rating also addresses the risk that any
such moratorium might include foreign currency bonds and that
BICBANCO's bonds might particularly be affected. Because the
banking system is an arm of the government's monetary and
foreign exchange policy, Moody's believes that, in general,
banks may have a lower probability of having their bonds
exempted from a moratorium than, say, a major commodity exporter
would. The rating, therefore, indicates the joint probabilities
of default that are contained in the B1 foreign currency ceiling
and in the Ba3 global local currency rating of BICBANCO.
BICBANCO is headquartered in Sao Paulo, Brazil and had R$4.5
billion (approximately US$1.9 billion) in total assets as of
March 2005.
The following rating was assigned to Banco Industrial e
Comercial S.A.:
- US$200,000,000 Euro Medium Term Note Program: B1, positive
outlook
- US$30,000,000 Long-term foreign-currency bond rating, B1
positive outlook.
BRASKEM: Sees Signing of $65M Software Deal By Month's End
----------------------------------------------------------
Petrochemicals company Braskem (NYSE: BAK) expects to sign a
BRL150-million (US$65mn) services and software supply contract
with either Oracle or SAP by the end of the month, Business News
Americas reports, citing a Braskem executive.
"The idea is to improve the quality of our management,
simplification of our in-house processes and unify standards in
all our operational units," CEO Jose Grubisich said.
"This is a high investment with a very fast return," Grubisich
added.
Braskem is controlled by Brazilian industrial group Mariani and
engineering group Odebrecht and was created in 2002 through the
acquisition of petrochemicals assets following the liquidation
of bankrupt bank Economico. Since its creation, shareholders
have been restructuring the group's assets, resulting in
operational synergies that have so far reduced costs by BRL192
million.
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
COPEL: Grants 6.84% Discount to Customers Who Pay Bill When Due
---------------------------------------------------------------
The shareholders of Companhia Paranaense de Energia - Copel
deliberated in a meeting held on Thursday that a 6.84% discount
was granted to the final customers who pay their electricity
bill when due.
SUMMARY OF THE MINUTES OF THE 165th EXTRAORDINARY GENERAL
MEETING
1. VENUE: Rua Coronel Dulcidio, n 800, Curitiba - State of
Parana
2. DATE AND TIME: August 4, 2005 - at 2 p.m.
3. CALL NOTICE: call notice published by the Official Gazette of
the State and newspapers "O Estado do Parana" and "Diario
Comercio Industria e Servicos - DCI"
4. QUORUM: sixty-one wholes, seventy hundredth per cent (61.70%)
of the voting capital, as per signatures on the Shareholders'
Attendance Book 3, page 38.
5. PRESIDING BOARD: RUBENS GHILARDI - Chairman; JOAO BONIFACIO
CABRAL JUNIOR - Chairman of the Board of Directors; MARLOS GAIO
- Secretary
6. DELIBERATIONS: By the majority of votes, in the light of the
average supply tariff readjustment ratio authorized by ANEEL's
Resolution # 130/2005, totaling seven wholes, eighty hundredth
per cent (7.80%), in average, Copel to maintain the average six
wholes, eighty-four hundredth per cent (6.84%) discount granted
to the final customers who pay their electricity bill when due,
being also authorized the application of a four wholes, forty-
one hundredth per cent (4.41%) readjustment, in average as of
Aug. 1, 2005.
CONTACT: COMPANHIA PARANAENSE DE ENERGIA- COPEL
Rua Coronel Dulcidio 800
Curitiba
Parana, 80420-170
Brazil
Investor Relations team:
E-mail: ri@copel.com
Phone:(55 41) 3222-2027
EMBRATEL: Tapped to Buy Portugal Telecom's Local Unit
-----------------------------------------------------
Portugal Telecom SGPS SA has decided to sell its Brazilian unit
PrimeSys to Embratel Participacoes SA, Brazil's largest long-
distance telephone company, for about BRL231 million ($100
million), reports Bloomberg.
According to the Lisbon-based company, the purchase price is
subject to an adjustment based on the Brazilian interbank rate,
currently 19.7%.
PrimeSys provides computer and communications services for
companies. Last year, it had earnings before interest, taxes,
depreciation and amortization of BRL35 million.
Embratel posted a net profit of BRL93.6 million in the second
quarter of 2005, turning around a net loss of BRL64.2 million in
the same quarter last year.
The Company, which was bought by Telefonos de Mexico (Telmex)
last July, said second-quarter earnings before interest, taxes,
depreciation and amortization (EBITDA) totaled BRL422 million
compared with BRL347.3 million the same year-earlier period.
CONTACT: EMT - Embratel Participacoes S.A.
Rua Regenta Feijo
166 Sala 1687-B Centro
Rio de Janeiro, 20060-060
Brazil
Phone: 5521-519-6474
URL: http://www.embratel.net.br
NET SERVICOS: Shareholder Decreases Ownership in PN Shares
----------------------------------------------------------
Net Servicos de Comunicacao S.A. (Company or NET) announced
Friday that Capital Group International, Inc. (CGII), holder of
offshore investment managing companies, has decreased its
ownership in preferred shares (PN shares) issued by the Company
corresponding to approximately 5.33% of the total outstanding
shares through a stock exchange operation.
CGII now manages a total of 141,180,961 PN shares issued by the
Company, corresponding to 6.19% of the total outstanding PN
shares. This is a minority interest that does not change the
Company's ownership structure.
CONTACT: NET SERVICOS DE COMUNICACAO
Investor Relations: Marcio Minoru
Phone: 011-5511-2111-2811
Email: minoru@netservicos.com.br
Sandro Pina
Phone: 011-5511-2111-2721
Email: sandro.pina@netservicos.com.br
http://www.netservicos.com.br
TCP: Notified by NYSE of Continued Listing Non-compliance
---------------------------------------------------------
Tele Norte Celular Participacoes S.A. (NYSE: TCN) (Bovespa:
TNCP3 TNCP4), the holding Company of the providers of wireless
telecommunications services in the states of Amapa, Amazonas,
Maranhao, Para and Roraima in Brazil, has been notified by the
New York Stock Exchange ("NYSE") that the Company currently
falls below the new continued listing standard, requiring total
stockholders' equity of not less than $75 million or total
market capitalization of not less than $75 million over a 30
trading-day period.
The NYSE has recently restructured and increased certain of the
continued listing criteria. Previously, the NYSE continued
listing standards required total stockholders' equity of not
less than $50 million or total market capitalization of not less
than $50 million over a 30 trading-day period. Both criteria
have been increased to $75 million. Tele Norte Celular's
stockholders' equity under U.S. GAAP was $56 million at December
31, 2004, and its market capitalization was US$65 million as of
July 29, 2005.
As required by the NYSE, Tele Norte Celular will submit a
detailed plan to the Listings and Compliance Committee of the
NYSE, demonstrating how the Company plans to be in compliance
with the Continued Listing Standard on or before the 18 months
of receipt of the non-compliance notice, the deadline set by the
NYSE. If the Committee accepts the plan, the Company will be
monitored quarterly for compliance with the plan. Should the
Committee not accept the plan, Tele Norte Celular will be
subject to trading suspension and delisting procedures. Based on
internal estimates and execution of planned corporate
transactions, Tele Norte Celular believes it will satisfy the
Continued Listing Standard by the NYSE deadline.
In order to enhance information to investors, the NYSE will
append a below criteria ("BC") indicator to the ticker symbol of
the Company. The indicator will be removed if the Company is
deemed compliant with NYSE's continued listing requirements. The
dissemination of the indicator will provide a transparent signal
regarding the Company's listing status.
CONTACT: Tele Norte Celular Participacoes S.A.
Investors: Ricardo Perpetuo, +011-55-61-3429-5600
Leonardo Dias, +011-55-61-3429-5673
Renata Pantoja, +011-55-61-3429-5616
Fernanda Ribeiro, +011-55-61-3429-5617
Fax: +011-55-61-3429-5626
E-mail: ri@telepart.com.br
VARIG: Ups Ticket Prices on Rising Fuel Costs
---------------------------------------------
Viacao Aerea Riograndense SA (Varig), Brazil's flagship airline,
decided to increase the price of domestic tickets by 10% across
the board after fuel costs rose.
According to Dow Jones Newswires, government-run oil company
Petrobras, which supplies most of the jet fuel consumed in
Brazil, adjusts prices twice a month based on a basket of items,
including international crude oil prices, the exchange rate
versus the U.S. dollar and local market conditions.
Varig, which is in the midst of a BRL9.5-billion debt
restructuring process, hasn't yet reported second quarter
results.
===============
C O L O M B I A
===============
TELECOM: Govt. Mulls Hiring Telmex to Administer Firm
-----------------------------------------------------
The Colombian government is in talks with Telmex, the leading
telecommunications company in Mexico, regarding plans to allow
the latter to administer state-owned telco Colombia
Telecomunicaciones (Telecom) for 5-10 years.
Reports have it that Telmex would have to pay a fee to operate
Telecom's infrastructure as well as its pension liabilities that
total COP6 billion (US$2.6 million).
However, Yankee Group senior analyst Wally Swain expects Telmex
to get a good fee to manage Telecom, since the government and
the operator have shown a certain degree of desperation to find
an international partner.
Telecom was liquidated in July 2003 and its assets were taken
over by Colombia Telecomunicaciones, which continues to use the
Telecom brand name.
Telmex provides corporate services in Colombia using
infrastructure inherited in its acquisition of AT&T Latin
America and would be able to fortify its presence in the data
segment by using the Telecom brand, which has a higher
recognition in the country.
Also, Telmex has been trying to enter the fixed line telephony
market but is still in negotiations to reach interconnection
agreements with the other operators. Telmex would not have these
problems if entering the market through Telecom, which already
has interconnection agreements with the other operators.
=============
J A M A I C A
=============
AIR JAMAICA: FAA Re-certification Completed
-------------------------------------------
The United States Federal Aviation Administration has completed
its re-certification on Jamaica's national carrier, Air Jamaica,
and domestic carrier, Air Jamaica Express, the Jamaica Observer
reports, citing Transport and Works Minister Robert Pickersgill.
Pickersgill also announced that the FAA has reaffirmed the
Category One status to the Jamaica Civil Aviation Authority
(JCAA) - the local aviation body - having completed a detailed
review of the operating manuals, procedures, resources,
organizational structures and facilities of the island's two
major airlines and had ensured that all operations were in
accordance with the new regulations.
The process to re-certify both airlines began in March.
During the process the airline was subjected to hefty fines
after the FAA said it did not have a proper system of how
airlines would be sanctioned and policies enforced.
"The fines have been paid," Pickersgill confirmed.
CONTACT: AIR JAMAICA
Corporate Communications
Tel: 876-922-3460 ext 4060-5
URL: www.airjamaica.com
===========
M E X I C O
===========
BALLY TOTAL: Receives Notices of Default, Extends Consent Date
--------------------------------------------------------------
- Continues Negotiations with Bondholders
- Receives Consent from 96.31% of Senior Notes and 42.88% of
Senior Subordinated Notes Outstanding
Bally Total Fitness Holding Corporation (NYSE:BFT) announced
Friday that the Company has received notices of default under
the indentures governing its 9 7/8% Senior Subordinated Notes
due 2007 (the "Senior Subordinated Notes") and its 10 1/2%
Senior Notes due 2011 (the "Senior Notes") following the
expiration of the waiver of the financial reporting covenant
default on July 31, 2005.
The notices did not declare the aggregate unpaid principal under
each of the indentures to be due and payable. However, the
notices commence a 30-day cure period during which Bally must
either secure an extension to the waiver or remedy the default.
The Company continues to negotiate with bondholders to secure a
waiver extension and currently has received consent from holders
of 96.31% of the Senior Notes and 42.88% of Senior Subordinated
Notes outstanding.
In addition, the delivery of the notices commences the 10-day
period after which time an event of default occurs under Bally's
$275 million secured credit agreement's cross-default provision.
As a result, delivery of these notices could result in
acceleration of Bally's obligations on or after August 14, 2005,
under the credit agreement and the indentures, causing over $700
million of Bally's debt obligations to become immediately due
and payable.
Bally also announced that it has extended the Consent Date (as
defined in Bally's Consent Solicitation Statements dated July
13, 2005) for holders of its Senior Notes and Senior
Subordinated Notes to consent to an extension of the waivers to
5:00 p.m., New York City time, on Wednesday, August 10, 2005.
Except as set forth herein, the terms of the Consent
Solicitations remain the same as set forth in the Consent
Solicitation Statements previously distributed to noteholders.
As previously announced, Bally has retained Deutsche Bank
Securities Inc. to serve as its solicitation agent and MacKenzie
Partners, Inc. to serve as the information agent and tabulation
agent for the consent solicitation. Questions concerning the
terms of the consent solicitation should be directed to Deutsche
Bank Securities Inc., 60 Wall Street, 2nd Floor, New York, New
York 10005, Attention: Christopher White. The solicitation agent
may be reached by telephone at (212) 250-6008. Requests for
documents may be directed to MacKenzie Partners, Inc., 105
Madison Avenue, New York, New York 10016, Attention: Jeanne Carr
or Simon Coope. The information agent and tabulation agent may
be reached by telephone at (212) 929-5500 (call collect) or
(800) 322-2885 (toll-free).
Bally Total Fitness is the largest and only nationwide
commercial operator of fitness centers, with approximately four
million members and 440 facilities located in 29 states, Mexico,
Canada, Korea, China and the Caribbean under the Bally Total
Fitness(R), Crunch Fitness(SM), Gorilla Sports(SM), Pinnacle
Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada(R)
brands. With an estimated 150 million annual visits to its
clubs, Bally offers a unique platform for distribution of a wide
range of products and services targeted to active, fitness-
conscious adult consumers.
CONTACT: Bally Total Fitness Holding Corporation
Matt Messinger
Phone: 773-864-6850
or
Public Relations
MWW Group
Carreen Winters
Phone: 201-507-9500
GRUPO MEXICO: La Caridad Miners Preparing to Go On Strike
---------------------------------------------------------
Workers at Grupo Mexico's La Caridad copper mine in northern
Sonora state are ready to launch a strike at anytime if the
Company refuses to hear their complaints about contract
violations, Dow Jones Newswires reports, citing a mining union
official.
Porfirio Diaz Munoz, secretary general of the Mexican Miners'
and Metalworkers' Union at La Caridad, said Friday that all
files and supporting documents had been filed and the workers
were awaiting the official go-ahead from national union leader
Napoleon Gomez Urrutia.
"We are ready to stage the strike, we have prepared all the
documentation of the violations of the workers contract and we
are only waiting for the official authorization from the
national leader in Mexico City," Diaz Munoz said.
He also confirmed that the La Caridad workers plan to go ahead
with a strike on August 12 in solidarity with workers in Asarco
Inc., the U.S. subsidiary of Grupo Mexico. Workers at the said
unit have been on strike since early July over a labor dispute.
CONTACT: GRUPO MEXICO S.A. DE C.V.
Avenida Baja California 200,
Colonia Roma Sur
06760 Mexico, D.F., Mexico
Phone: +52-55-5264-7775
Fax: +52-55-5264-7769
Web site: http://www.gmexico.com
ROYAL SHELL: Completes $1.75B Sale of Intergen
----------------------------------------------
The Ontario Teachers' Pension Plan and AIG Highstar Capital II,
L.P. have completed the purchase of InterGen N.V. from Shell
Generating (Holding) B.V. and Bechtel Enterprises Energy B.V.
for $2.1 billion (US$1.75 billion). The transaction was
originally announced in April 2005, subject to certain
conditions and regulatory approvals which have been met.
Jim Leech, Senior Vice-President, Ontario Teachers' said, "As a
long-term investor, we are pleased to acquire InterGen. It is a
well managed company with a diversified international portfolio
of new and efficient power assets. As most of the power from
these plants is sold under long-term contracts, this investment
should produce stable and long-term cash flows that are well
suited to our growing infrastructure portfolio."
The 10 InterGen plants purchased are located in the UK, the
Netherlands, Mexico, the Philippines, China and Australia.
InterGen's equity share in these plants amounts to 5,500 MW of
production capacity. Combined with other jointly owned power
generation facilities in the U.S., this acquisition brings the
total capacity for Ontario Teachers'/AIG generation to 7,000 MW.
About Ontario Teachers'
The Ontario Teachers' Pension Plan is one of Canada's largest
financial institutions with net assets of $85 billion. It
invests to secure the retirement income of 255,000 active and
retired teachers in the province of Ontario, Canada. With
infrastructure and timber assets (including this purchase of
InterGen) totaling C$4.5 billion worldwide, Ontario Teachers' is
actively seeking opportunities to expand its portfolio of
electrical transmission systems, oil export pipelines, toll
highways, power generation and airports.
About AIG Highstar Capital II
AIG Highstar Capital II L.P. is a private equity fund sponsored
by AIG Global Investment Group, an indirect subsidiary of
American International Group, Inc. AIG Global Investment Group
(AIGGIG) comprises a group of international investment adviser
companies which provide advice, investment products and asset
management services to clients around the world. The members of
AIGGIG are subsidiaries of American International Group, Inc.
CONTACTS: THE ONTARIO TEACHERS' PENSION PLAN
Director, Communications and Media Relations
Lee Fullerton, 416-730-5347
Email: lfullerton@otpp.com
Website: www.otpp.com
=============
U R U G U A Y
=============
UTE: To Import Power From Argentina
-----------------------------------
Uruguay's state power company UTE is importing electricity from
Argentina again due to drought, reports Business News Americas.
According to UTE vice-president Pedro de Aurrecoechea, the
country will receive 10% of the power it consumes from its
neighbor.
"We're going back to importing the 150MW of the contract," he
said.
Lack of rainfall in recent weeks in the Rio Uruguay basin has
caused a drop in the water level of Salto Grande lake along the
country's northwest border with Argentina, drastically reducing
generation capacity at the Salto Grande hydroelectric plant.
Already, UTE had resorted to expensive diesel-fired plants and
turned to Brazil for power imports earlier this year, also due
to drought.
=================
V E N E Z U E L A
=================
PDVSA: Signs Transitory Agreement with Harvest Natural Unit
-----------------------------------------------------------
Harvest Natural Resources, Inc. (NYSE: HNR) announced Friday
that Harvest Vinccler C.A. (HVCA), the Company's 80 percent
owned Venezuelan subsidiary, signed a Transitory Agreement with
Petroleos de Venezuela S.A. (PDVSA).
The agreement obligates the parties to negotiate in good faith
the conversion of HVCA's Operating Service Agreement to a Mixed
Company under the Venezuelan Organic Hydrocarbon Law and is
subject to reaching a mutually acceptable agreement on terms and
conditions.
The Transitory Agreement resolves the fee HVCA will receive for
the delivery of crude oil to PDVSA under the Operating Service
Agreement retroactive to January 1, 2005. Historically, the new
fee has averaged approximately 46.5 percent of West Texas
Intermediate. There were no other changes to the Operating
Service Agreement.
Harvest President and Chief Executive Officer, Dr. Peter J.
Hill, said, "We are pleased to complete this important step
towards the future conversion of the Operating Service Agreement
to a Mixed Company. We look forward to working with PDVSA as a
partner, but it will take a lot of work to reach agreement on
valuation, structure and financing of the new company. The
Transitory Agreement, however, brings more certainty and
stability to our operations in Venezuela and the commitment of
both parties to negotiate the formation of a Mixed Company."
The new fee, retroactive to January 1, 2005, will result in a
write-off in the third quarter of approximately $4.3 million of
accrued oil and gas sales accounts receivable recorded based on
first and second quarter oil and gas deliveries. HVCA was
underpaid $9.8 million for first quarter oil and gas deliveries.
Based on the new retroactive fee limit, HVCA expects to receive
$7.6 million of the first quarter underpayment. Beginning in the
third quarter, oil and gas revenues will be recorded based on
the Transitory Agreement. See Accounts Receivable Reconciliation
below.
Accounts Receivable Reconciliation ($MM)
3 months ended 3 months ended 6 months ended
March 31, 2005 June 30, 2005 June 30, 2005
Accounts
Receivable $64.8 $59.9 $124.7
Accounts Receivable
Write-off due to
Retroactive Price
Adjustment
Specified in the
Transitory
Agreement (2.2) (2.1) (4.3)
Adjusted Accounts
Receivable 62.6 57.8 120.4
Payment Received
June 2005 (55.0) --- (55.0)
Payment due by
August 31, 2005 $7.6 $57.8 $65.4
Harvest Natural Resources, Inc. headquartered in Houston, Texas,
is an independent oil and gas development and production company
with principal operations in Venezuela and an office in Russia.
For more information visit the Company's website at
CONTACT: Harvest Natural Resources, Inc.
Steven W. Tholen, Senior Vice President, CFO
Tel: +1-281-899-5714
Amanda Koenig, Investor Relations
Tel: +1-281-899-5716
URL: http://www.harvestnr.com
***********
S U B S C R I P T I O N I N F O R M A T I O N
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Copyright 2005. All rights reserved. ISSN 1529-2746.
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