/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/050913.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, September 13, 2005, Vol. 6, Issue 181 Headlines A R G E N T I N A AGUAS ARGENTINAS: French Parent to Withdraw Concession APSA S.R.L.: General Report Due for Court Filing CITY S.A.I.C.I.F.: Gets Court Authorization to Reorganize CRESUD: Posts Big FY 2005 Net Income Increase EMPRENDIMIENTOS GARIN: Reorganization Process Starts FRANCER S.R.L.: Seeks Court OK to Reorganize GRUPO EMPRESARIO: Court Declares Company Bankrupt OBRA SOCIAL: General Report Filing Due September 14 SANBUESI S.A.: Deadline for General Report Approaches SINASPO S.R.L.: Judge Approves Bankruptcy VIVIENDAS TRABAJADORES: Individual Reports Due Sep. 14 * ARGENTINA: Files Petition to Annul ICSID Award to CMS Energy B A R B A D O S C&W BARBADOS: Sees Positive Rebound in FY 2004-05 B E R M U D A CANTERBURY INVESTMENTS: Company to be Wound Up Voluntarily FINANCIAL CASUALTY: Names Mr. Ernest A. Morrison as Liquidator GLOBAL CROSSING: Reaches Securities Suit Settlement in NY GLOBAL CROSSING: Enters Channel Partner Agreement with Albanet LORAL SPACE: Shareholders Appeal Confirmation B R A Z I L BANCO ITAU: Submits Financial Proposal BEC: Four Banks Qualify to Compete in Upcoming Auction VARIG: Foreign Representatives Ask Court to Deny Willis' Plea C O L O M B I A PAZ DEL RIO: Arango Chosen to Replace Hadad as President EMCALI: Congress Seeks Alliance With ERT J A M A I C A KAISER ALUMINUM: Amends Terms on Solicitation, Voting Protocol M E X I C O AHMSA: Finalizes Major Repair in Plate Mill ASARCO: ASARCO Consulting Wants to File Schedules by Oct. 31 SICARTSA: Union Seeks to Negotiate With Parent TV AZTECA: To Prepay MXN1.406 Billion Loan Due 2008 V E N E Z U E L A CADAFE: Anticipates Additional $100M/Yr With New Sales System CADAFE: To Rent Out 10MW Thermo Unit to Antigua & Barbuda - - - - - - - - - - ================= A R G E N T I N A ================= AGUAS ARGENTINAS: French Parent to Withdraw Concession ------------------------------------------------------ French utility Suez has decided to pull out of its Aguas Argentinas water concession after a three-year clash with the Argentine government over tariffs failed to see a solution. "Confronted with the fact that it is impossible to re-establish the concession's economic and financial balance, Aguas Argentinas is no longer in a position to assume the risks and responsibilities linked to the water and waste services operations provided to the city of Buenos Aires," Suez said in a press release. "In these circumstances, SUEZ has decided to recommend that the next Aguas Argentinas Board of Directors meeting, planned for September 19, 2005, puts in place the withdrawal process from the contract. An extraordinary General Meeting has been called for September 22 to ratify the decisions of the Board of Directors," Suez added. Suez signed a 30-year contract in 1993 to operate Buenos Aires' waterworks. The main problem of Aguas Argentinas has been the state of its income ever since the devaluation of the peso at the start of 2002. The firm has not been allowed to raise prices for services and its debts have spiraled to US$600 million. The Company wanted to agree on a 40% increase in water rates in 2006, but the government at first was only willing to allow a 35% hike in two stages, but then backed away from this, proposing more talks after the October mid-term elections. In light of Suez's decision to withdraw, Argentina will look for a new shareholder to replace the French utility. "In the first phase we will look for another company to replace Suez and if that doesn't prosper we will call a new bid for the concession," Planning Minister Julio De Vido told the leading daily Clarin. APSA S.R.L.: General Report Due for Court Filing ------------------------------------------------ Mr. Cesar Stock, the assigned trustee for the liquidation of local company Apsa S.R.L., will present a general report on the case tomorrow, Sep. 14, 2005. Mr. Stock verified creditors' claims until June 6, 2005. Afterwards, he prepared the individual reports, which are to be submitted in court on Aug. 2, 2005. The city's civil and commercial Court No. 10 handles the Company's case. Clerk No. 20 assists the court with the wind-up proceedings. CONTACT: Mr. Cesar Stock, Trustee Avda Corrientes 4149 Buenos Aires CITY S.A.I.C.I.F.: Gets Court Authorization to Reorganize --------------------------------------------------------- City S.A.I.C.I.F. will begin reorganization following the approval of its petition by Court No. 3 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. Mr. Oscar Eduardo Torres will oversee the reorganization proceedings as the court-appointed trustee. He will verify creditors' claims until Dec. 21, 2005. The validated claims will be presented in court as individual reports on March 3, 2006. Mr. Torres 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 18, 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 June 29, 2006. CONTACT: City S.A.I.C.I.F. San Martin 1127 Local Mercurio 32 Unidad 52 Ciudad de Mendoza (Mendoza) Mr. Oscar Eduardo Torres, Trustee 25 de Mayo 2137 Dorrego Guaymallen (Mendoza) CRESUD: Posts Big FY 2005 Net Income Increase --------------------------------------------- Cresud S.A.C.I.F. y A. (Nasdaq: CRESY) (BCBA: CRES), a leading Argentine producer of agricultural products, posted Friday ARS76.8 million net income in Fiscal Year 2005 which ended June 30, 2005. During fiscal year 2005, the Company introduced improvements in its business activities and made investments that resulted in net income of 76.8 million pesos for the 12-month period ending June 30, 2005. This represents a substantial increase of 139%, compared to net profits obtained in fiscal year 2004. The increase in net income is mostly due to: (i) profits of 20 million pesos resulting from the sale of two agricultural and livestock properties, and (ii) excellent results obtained from the investment in IRSA Inversiones y Representaciones S.A., and the sale of IRSA's Convertible Negotiable Obligations which generated substantial profits of 95.2 million pesos. HIGHLIGHTS - Net income in fiscal year 2005 reached 76.8 million pesos, an increase of 139% over the 32.1 million pesos obtained in fiscal year 2004. - The harvest finished with an exceptional production of 143,250 tons of wheat, corn, sunflower seeds and soybeans, a 100.6% increase in relation to the same period last year. - During fiscal year 2005, an additional 6,000 hectares of land were developed to be used in cattle-raising activities in the Los Pozos farm in the Salta province. - A major dairy farm was opened using leading-edge technology that allows milk production to increase by 36,000 liters a day. - The sale of "San Enrique" and "Nacurutu" farms, with a 595% and 192% yield respectively, generated a profit of 20 million pesos. - Our portfolio of farms was enhanced through the acquisition of two new properties, one with 1,946 hectares in the La Pampa province, and the other with more than 6,000 hectares in the Entre Rios province; the second acquisition was registered subsequent to the end of the fiscal year - During fiscal year, our investment in IRSA generated a gain of 95.2 million pesos due to its excellent results and partial sale of IRSA's Convertible Negotiable Obligations held by Cresud. Cresud is a leading Argentine producer of basic agricultural products and the only such company with shares listed on the Buenos Aires Stock Exchange and Nasdaq. The Company is currently involved in various operations and activities, including crop production, cattle raising and fattening, milk production and certain forestry activities. Most of its farms are located in Argentina's pampas, one of the largest temperate prairie zones in the world and one of the richest areas of the world for agricultural production. To see financial highlights: http://bankrupt.com/misc/CRESUD.htm CONTACT: Cresud S.A.C.I.F. y A. Alejandro Elsztain - CEO Gabriel Blasi - CFO Phone: 54-11-4323-7449 E-mail: finanzas@cresud.com.ar URL: http://www.cresud.com.ar EMPRENDIMIENTOS GARIN: Reorganization Process Starts ---------------------------------------------------- Court No. 2 of the civil and commercial tribunal of the Argentine province of Buenos Aires approved a petition for reorganization filed by local company Emprendimientos Garin S.A., reports Infobae. Mr. Oscar Eduardo Torres, a local accountant, was designated as the Company's trustee. His duties include the verification of credit claims and preparation of the individual and general report. The court gave creditors until Nov. 2, 2005 to present their claims to the trustee for verification, Infobae reveals, without stating whether the court has set the deadlines for the filing of the trustee's reports. CONTACT: Emprendimientos Garin S.A. Avda. Cordoba 657 Buenos Aires Mr. Oscar Eduardo Torres, Trustee Narciso Gutierrez 1053/57 Ciudad de San Luis (San Luis) FRANCER S.R.L.: Seeks Court OK to Reorganize -------------------------------------------- Francer S.R.L., a company operating in Buenos Aires, has requested for reorganization after failing to pay its liabilities since June 13, 2005. The reorganization petition, once approved by the court, will allow the Company to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending before Court No. 1 of the city's civil and commercial tribunal. Clerk No. 2 assists on this case. CONTACT: Francer S.R.L. Coronel Pagola 3826 Buenos Aires GRUPO EMPRESARIO: Court Declares Company Bankrupt ------------------------------------------------- Court No. 2 of Buenos Aires' civil and commercial tribunal declared local company Grupo Empresario de Mantenimiento S.A. "Quiebra", relates La Nacion. The court approved the bankruptcy petition filed by Berkley International S.R.T. S.A., whom the Company has debts amounting to $83,943.47. The Company will undergo the bankruptcy process with Mr. Jorge Podesta as trustee. Creditors are required to present proof of their claims to Mr. Podesta for verification before Nov. 15, 2005. Creditors who fail to submit the required documents by the said date will not qualify for any post-liquidation distributions. Clerk No. 3 assists the court on the case. CONTACT: Grupo Empresario de Mantenimiento S.A. Parana 552 Mr. Jorge Podesta, Trustee Reconquista 336 Buenos Aires OBRA SOCIAL: General Report Filing Due September 14 --------------------------------------------------- The general report on the Obra Social Federal de la Federacion Nacional de Trabajadores de Obras Sanitarias bankruptcy will be submitted tomorrow, Sep. 14, 2005, following the submission of the individual reports on Aug. 1, 2005. Court No. 6 of Buenos Aires' civil and commercial tribunal declared the Company "Quiebra" and appointed Mr. Alfredo Donatti as trustee. The city's Clerk No. 12 assists the court with the proceedings. CONTACT: Mr. Alfredo Donatti, Trustee Montevideo 31 Buenos Aires SANBUESI S.A.: Deadline for General Report Approaches ----------------------------------------------------- The deadline for the submission of the general report on the liquidation of Sanbuesi S.A. will be tomorrow, Sep. 14, 2005. Court-appointed trustee Fernando Jose Marziale was assigned to prepare the said report. Mr. Marziale verified creditors' claims until June 6, 2005 and prepared individual reports out of the verified claims. The individual reports were submitted in court on Aug. 2, 2005. Buenos Aires' civil and commercial Court No. 3 handles Company's case. Clerk No. 5 assists the court with the wind-up proceedings. CONTACT: Sanbuesi S.A. Zinny 1679 Buenos Aires Mr. Fernando Jose Marziale, Trustee Avda Callao 930 Buenos Aires SINASPO S.R.L.: Judge Approves Bankruptcy ----------------------------------------- Sinaspo S.R.L., a medical clinic, was declared bankrupt after Court No. 6 of Buenos Aires' civil and commercial tribunal endorsed the petition of Ms. Monica Ventriglia for the Company's liquidation. Argentine daily La Nacion reports that Ms. Ventriglia has claims totaling ARS15,950 against Sinaspo S.R.L. The court assigned Ms. Elena Tancredi to supervise the liquidation process as trustee. Ms. Tancredi will validate creditors' proofs of claim until Nov. 14, 2005. The city's Clerk No. 12 assists the court in resolving this case. CONTACT: Sinaspo S.R.L. Billinghurst 23 Buenos Aires Ms. Elena Tancredi, Trustee Ecuador 1185 Buenos Aires VIVIENDAS TRABAJADORES: Individual Reports Due Sep. 14 ------------------------------------------------------ The creditors' individual claims against Viviendas Trabajadores de las Universidades Nacionales V will be presented to court for approval tomorrow, Sep. 14, 2005. These reports explain the basis for the accepted and rejected claims. The court-appointed trustee will also submit a general report of the Company's case on October 27. The Company was declared bankrupt by Court No. 19 of Buenos Aires' civil and commercial tribunal after it defaulted on its debt payments. The city's Clerk No. 37 assists the court with the proceedings. * ARGENTINA: Files Petition to Annul ICSID Award to CMS Energy -------------------------------------------------------------- Argentina has filed a petition to annul a ruling by the World Bank's International Center for Settlement of Investment Disputes (ICSID) in favor of US company CMS Energy Corp. Argentina's Attorney of the Treasury, the second highest position at the Justice Ministry, told Dow Jones Newswires Friday that "the only thing pending now is the presentation of fundamentals in the next two or three weeks." The next step is for the ICSID "to decide if it is going to accept the petition of annulment," said the spokesman, who asked not to be identified. The ICSID ruled against Argentina in May, awarding CMS Energy US$133.2 million for a breach of contract relating to CMS's 30% interest in Argentine gas pipeline operator Transportadora de Gas del Norte SA (TGNO2.BA). Argentina is asking the ICSID to declare the award null and void because CMS is a minority holder of TGN =============== B A R B A D O S =============== C&W BARBADOS: Sees Positive Rebound in FY 2004-05 ------------------------------------------------- Cable & Wireless (Barbados) Limited posted an after-tax profit of US$56.1 million in its financial year 2004-05 ending March 31, the Barbados Nation reports. The result is a "turnaround" from the US$19.2-million loss the previous year. According to company chairman, Sir Allan Fields, the improvement came about as a result of a reduction in operating costs, depreciation, and not having an asset write-off, or large provisions for restructuring costs, which impacted the business in 2003-2004. Gross revenues during the 2004-05 period stood at US$368.7 million, down 1% from the previous year, while operating expenses were US$287.8 million, down from last year's US$319.3 million. C&W Barbados president Donald Austin said the Company aims to become the technology hub of the Caribbean and will invest heavily in the coming year in technology upgrading and further network expansion to develop new IP based voice and data services. C&W invested US$3 million in 2004-05 in expanding its broadband network. "This demonstrates Cable & Wireless' commitment to develop all services as the only complete full service provider," Mr. Austin said. C&W gave up its international exclusive license in Barbados last year, six years ahead of schedule. ============= B E R M U D A ============= CANTERBURY INVESTMENTS: Company to be Wound Up Voluntarily ---------------------------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 And IN THE MATTER OF Canterbury Investments Ltd. The Members of Canterbury Investments Ltd. held a Special General Meeting on the August 26, 2005 and passed the following Resolutions: 1. THAT the Company be wound up voluntarily, pursuant to the provisions of the Companies Act 1981 and the Company's Memorandum of Association and Bye-laws; 2. THAT Mike Morrison of KPMG Financial Advisory Services Limited, Crown House, 4 Par-la-Ville Road, Hamilton HM08, Bermuda, be appointed Liquidator for the purpose of such winding up; 3. THAT the Shareholder decides the remuneration to be paid to the liquidator; and 4. THAT the Liquidator be authorized to distribute the surplus assets in cash or in specie in accordance with the Memorandum of Association and Bye-laws of the Company. The Liquidator informs that: - Creditors of Canterbury Investments Ltd., which is being voluntarily wound up, are required, on or before October 3, 2005 to send their full Christian and Surnames, their addresses and descriptions, full particulars of their debts or claims, and the names and addresses of their solicitors (if any) to Mike Morrison, the Liquidator of the said Company, and if so required by notice in writing from the said Liquidator, and personally or by their solicitors, to come in and prove their debts or claims at such time as shall be specified in such notice. In default thereof they will be excluded from the benefit of any distribution made before such debts are proved. - A Final General Meeting of the Members of Canterbury Investments Ltd. will be held at KPMG Financial Advisory Services Limited, Crown House, 4 Par-la-Ville Road, Hamilton Bermuda on October 17, 2005 at 10:00 a.m. for the following purposes of: 1. receiving an account laid before them showing the manner in which the winding-up of the Company has been conducted and its property disposed of and of hearing any explanation that may be given by the Liquidator; 2. by Resolution determining the manner in which the books, accounts and documents of the Company and of the Liquidator shall be disposed of; and 3. by Resolution dissolving the Company. CONTACT: Mr. Mike Morrison, Liquidator KPMG Financial Advisory Services Limited Crown House 4 Par-La-Ville Road Hamilton HM 08 Bermuda FINANCIAL CASUALTY: Names Mr. Ernest A. Morrison as Liquidator -------------------------------------------------------------- IN THE MATTER OF THE COMPANIES ACT 1981 And IN THE MATTER OF Financial Casualty And Surety Ltd. By Written Resolutions of the Sole Member of Financial Casualty And Surety Ltd., on September 2, 2005, the following RESOLUTIONS were duly passed: 1) RESOLVED that the Company be wound up voluntarily pursuant to the provisions of the Companies Act, 1981; and 2) RESOLVED that Mr Ernest A. Morrison, of "Milner House", 18 Parliament Street, Hamilton, Bermuda be and is hereby appointed Liquidator for the purposes of winding-up, such appointment to be effective forthwith. The Liquidator informs that: - Creditors of the Company are required on or before September 23, 2005, to send their names and addresses and the particulars of their debts or claims to the Liquidator of the Company and, if so required by notice in writing from the said Liquidator, to come in and prove their said debts or claims at such time and place as shall be specified in such notice or in default thereof they will be excluded from the benefit of any distribution made before such debts are proved. - The Final General Meeting of the Sole Member of Financial Casualty And Surety Ltd. will be held at the offices of Cox Hallett Wilkinson, Milner House, 18 Parliament Street, Hamilton HM12, on October 12, 2005 at 10:00 a.m. for the following purposes: 1) receiving an account showing the manner in which the winding- up of the Company has been conducted and its property disposed of and hearing any explanation that may be given by the Liquidator; 2) by resolution determining the manner in which the books, accounts and documents of the Company and of the Liquidator shall be disposed of; and 3) by resolution dissolving the Company. CONTACT: Mr. Ernest A. Morrison, Liquidator Milner House 18 Parliament Street Hamilton HM 12 Bermuda GLOBAL CROSSING: Reaches Securities Suit Settlement in NY --------------------------------------------------------- Global Crossing Ltd. arrived at an agreement over the amended consolidated securities class action filed against it and certain of its officers and directors in the United States District Court for the Southern District of New York. Following the Company's April 27, 2004 announcement that the Company expected to restate certain of its consolidated financial statements as of and for the year ended December 31, 2003, eight separate class action lawsuits all purporting to be brought on behalf of Company shareholders were commenced against the Company and certain of its officers and directors in the United States District Courts in New Jersey, New York and California. The cases were consolidated and transferred by the Judicial Panel on Multidistrict Litigation to Judge Gerard Lynch of the United States District Court for the Southern District of New York based on his past involvement in prior cases involving the Company. On February 18, 2005, lead plaintiffs filed an amended consolidated class action complaint against the Company and two of its past and present officers. The consolidated amended complaint alleges that the Company defrauded the public securities markets by issuing false and misleading statements that failed to disclose or indicate: (1) that the Company had materially understated its accrued cost of access liabilities by as much as $80 million, (2) that the Company lacked sufficient internal controls to prevent material misstatements, (3) that the Company lacked sufficient internal controls to properly record and report accrued cost of access liabilities and operating expenses, (4) that its financial statements were not prepared in accordance with generally accepted accounting principles, (5) that the Company did not, contrary to its representations, consistently monitor the accuracy of its systems that measured cost of access, (6) that the Company's results were materially inflated, and (7) that the Company did not have a "clean" balance sheet. The consolidated amended complaint, on behalf of a class of persons who purchased or acquired the Company's common stock between December 9, 2003 and April 26, 2004, asserts claims under the federal securities laws, specifically Sections 10(b) and 20(a) of the Exchange Act. Plaintiffs contend that the Company's misstatement or omissions artificially inflated the price of the Company's stock, which declined when the "true" costs were disclosed. Plaintiffs seek compensatory damages as well as other relief. If the case is not settled, defendants anticipate filing a motion to dismiss the consolidated amended complaint. Counsel for the Company and the lead plaintiffs have agreed in principle on behalf of their clients to settle the litigation under the terms of a proposed settlement agreement. The proposed settlement agreement contemplates the creation of a settlement fund by the company, subject to reimbursement in full (less a $0.5 deductible) by the Company's directors and officers liability insurance carrier. The proposed settlement agreement remains subject to final negotiation and court approval.(Class Action Reporter, Monday, Sep. 12, 2005, Issue 180) GLOBAL CROSSING: Enters Channel Partner Agreement with Albanet -------------------------------------------------------------- Global Crossing (Nasdaq: GLBC) announced Friday a channel partner agreement with the Albanet Group, one of Scotland's leading IT services companies with a Europe-wide reputation for providing clients with high quality network management systems and solutions, together with a range of professional business applications, software and ICT support services. Global Crossing's Channel Partner Program is a key part of Global Crossing's indirect strategy, providing a virtual sales force capable of attracting significant numbers of customers. A common dedication to providing high-end customer support and advanced IP solutions to their customers makes for a strong partnership between the two companies. The Albanet Group and Global Crossing will work collaboratively on providing solutions to customers who need both IT services and network connectivity. The Albanet Group has clients in a variety of industry sectors including government, manufacturing, retail, financial services, education, tourism and SME market places. "This partnership with Global Crossing enables us to offer our customers high-performance, secure, converged IP services backed by a state-of-the-art network over which we can provide the IT solutions and our NetQuest network management solutions to meet their business needs," said Iain Clark, managing director of the Albanet Group. "Global Crossing's worldwide IP-based network also makes it possible for us to expand our business into Europe." Enterprises are increasingly transitioning to converged IP environments as advanced features, greater flexibility and lower total cost of ownership become the new buying imperatives. This partnership enables the Albanet Group's customers to leverage Global Crossing's fully interoperable service portfolio, running over a global IP network, and backed by industry-leading customer satisfaction scores and Service Level Agreements (SLAs). "Channel partnerships are a key part of our go-to-market strategy, enabling us to serve, both directly and indirectly, enterprises requiring IP services on a global scale," said Phil Metcalf, managing director of Global Crossing UK. "Joining forces with the Albanet Group allows us to bring our vision of committed service, advanced technology and the ability to solve business problems to a greater range of customers. We're delighted to have entered into this relationship." Global Crossing's Global Partner Channel Program, built to support and reward IP-centric partners, includes: - industry-leading portfolio of converged IP services; - state-of-the-art Partner Support Center that handles routine back office tasks, allowing partners to focus on selling; - streamlined service model that delivers a consistent customer experience, worldwide; - clear partner expansion strategy into Europe and Latin America, supporting partners around the world; - timely billing and flexible pricing models that empower partners to win and retain business; and - uCommand(R), Global Crossing's industry-leading account management portal. The Albanet Group is a leading ICT solutions company based in Scotland specializing in IT infrastructure management, network management software and consultancy services. With over 50 staff across offices in the central belt and the Highlands the Group has built a reputation for innovation and commitment to providing the highest quality IT services to customers across the UK. The Albanet Group's real-time network management software NetQuest ExtremeWAN provides an integrated solution that pro- actively identifies and resolves performance and availability problems on converged networks and is delivered as a service or as a licensed suite of tools. The Group was formed In January 2005 when Albanet Limited acquired IRW Solutions Group Ltd. Its range of corporate clients includes atHome Nationwide, Westminster Health Care, the Crofters Commission, Scottish Radio Holdings, Glasgow Museums and the Scottish University for Industry. Global Crossing (Nasdaq: GLBC) provides telecommunications solutions over the world's first integrated global IP-based network. Its core network connects more than 300 cities and 30 countries worldwide, and delivers services to more than 500 major cities, 50 countries and 6 continents around the globe. The company's global sales and support model matches the network footprint and, like the network, delivers a consistent customer experience worldwide. Global Crossing IP services are global in scale, linking the world's enterprises, governments and carriers with customers, employees and partners worldwide in a secure environment that is ideally suited for IP-based business applications, allowing e- commerce to thrive. The company offers a full range of managed data and voice products including Global Crossing IP VPN Service, Global Crossing Managed Services and Global Crossing VoIP services, to more than 40 percent of the Fortune 500, as well as 700 carriers, mobile operators and ISPs. CONTACT: Global Crossing Press Contacts Becky Yeamans Phone: 1 973-937-0155 E-mail: PR@globalcrossing.com Kendra Langlie Phone: 1 305-808-5912 E-mail: LatAmPR@globalcrossing.com Mish Desmidt Europe Phone: 44 (0) 1256 732-866 E-mail: EuropePR@globalcrossing.com Analysts/Investors Contact Laurinda Pang Phone: 1 800-836-0342 E-mail: glbc@globalcrossing.com URL: http://www.globalcrossing.com LORAL SPACE: Shareholders Appeal Confirmation --------------------------------------------- Loral Space & Communications Ltd. ("Loral" or the "Company") announced that an appeal (the "Appeal") of the Confirmation Order and the Motion to Prosecute was docketed in the Bankruptcy Court on September 7, 2005. The Appeal was filed by a shareholder on behalf of the Loral Stockholders Protective Committee. The Company believes that the Appeal will not prevent the Company from having its Plan of Reorganization become effective after satisfaction of the conditions precedent set forth in the confirmed Plan of Reorganization, including obtaining approval of the Federal Communications Commission. The Company continues to expect that its Plan of Reorganization will become effective early in the fourth quarter of 2005, although it cannot predict with certainty when that will occur. The Appeal, which is stamped "received" on August 10, 2005 was not listed on the docket until September 7, 2005. On August 1, 2005, the United States Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court") entered an order (the "Confirmation Order") confirming the Company's Fourth Amended Joint Plan of Reorganization, as modified (the "Plan of Reorganization"). Also on August 1, 2005, the Bankruptcy Court entered a separate order denying a motion seeking authorization to commence an action to prosecute an alleged fraudulent conveyance claim regarding the guaranty by Loral of Loral Orion's 10% senior notes due 2006 issued in connection with the exchange offer that occurred on December 21, 2001 (the "Motion to Prosecute"). On July 15, 2003, Loral Space and certain of its subsidiaries filed voluntary petitions for reorganization under chapter 11 of title 11 of the United States Code in the United States District Court for the Southern District of New York and parallel insolvency proceedings in the Supreme Court of Bermuda in which certain partners of KPMG were appointed as joint provisional liquidators. CONTACT: Loral Space & Communications Ltd. 600 Third Avenue New York, NY 10016 USA URL: http://www.loral.com Phone: 212-697-1105 =========== B R A Z I L =========== BANCO ITAU: Submits Financial Proposal -------------------------------------- Banco Itau Holding Financeira S.A. (ITAU HOLDING) states that, at a presence public bidding session held on September 5, 2005, Banco Itau S.A. (ITAU) submitted the best financial proposal to provide services, for a five-year period, consisting of making payments to active (working) and inactive (retired or pensioned) municipal employees, in the monthly amount of approximately R$340 million, and to manage the financial resources of the Municipal Government of Sao Paulo (local acronym PMSP - Prefeitura do Municipio de Sao Paulo), including investment funds. 2. The proposal submitted stipulates cash payment of R$510 million for payroll management and R$1.5 million for management of resources. Continuing the current practice, these payments will be registered as "Advance Expenses" and recognized in the result within the period of validity of the contract. 3. The process is now in the phase of analyzing documentation for the qualifications of the top-ranked bidders for subsequent award and approval. 4. For ITAU, this operation will mean: - an additional 210,000 customers concentrated in the city of Sao Paulo, Brazil's main market, without the need for major investments since it has an extensive network of branches in the Greater Sao Paulo region and since ITAU has a strong technological basis; - offering banking, insurance and pensions products and services to municipal employees, with an estimated increase of around 3% in the volume of retail segment business for ITAU network of branches; and - managing the financial resources of the Municipal Government of Sao Paulo, the fifth largest budget in Brazilian government. 5. Sao Paulo's municipal employees will be able to use the most comprehensive range of products and services available in the market and enjoy the convenience of ITAU's network of over 3,000 points of service, its 21,000 ATMs all over Brazil, and its differentiated Bankfone ("Phone Banking") and Bankline ("Internet Banking") services; and 6. Through this operation, ITAU HOLDING reaffirms its strategy of sustainable growth, broadening its focus in the individual account holder segment. CONTACT: Banco Itau Holding Financeira S.A. Investor Relations Mr. Geraldo Soares Investor Relations Superintendency Praca Alfredo Egydio de Souza Aranha 100 Torre Conceicao - 11 04344-902 Sao Paulo Phone: +5511 5019-1549 Fax: +5511 5019-1133 BEC: Four Banks Qualify to Compete in Upcoming Auction ------------------------------------------------------ The Brazilian Clearing and Depository Corporation (CBLC) has pre-qualified four banks to compete in the privatization of state-owned bank Banco do Estado do Ceara (BEC). The potential bidders include Brazil's three largest private banks, Bradesco (NYSE: BBD), Itau (NYSE: ITU), and Unibanco (NYSE: UBB), along with GE Consumer Finance. Brazil's central bank also pre-qualified the same four in May. BEC is slated to hit the auction block on Sep 15 and the minimum price was set at BRL542 million (US$233mn). Brazil's federal government owns 99% of BEC, and the bank's employees will have a chance to buy 10% of the government shares at a discount. BEC operates 70 branches and has 278,000 clients. The institution administers assets of about BRL1.6 billion. The bank reported a profit of BRL65.8 million in 2004, according to its latest financial figures. VARIG: Foreign Representatives Ask Court to Deny Willis' Plea ------------------------------------------------------------- Vicente Cervo and Eduardo Zerwes, Representatives for VARIG S.A. and its debtor-affiliates, tell the U.S. Bankruptcy Court for the Southern District of New York the Debtors have delayed lease payments to Willis Lease Finance Corporation because of their present financial condition. As previously reported in the Troubled Company Reporter, Willis Lease Finance Corporation asked the Bankruptcy Court to modify the Preliminary Injunction so it can repossess eight engines leased to the Debtors. The monthly rent on the eight Willis Engines aggregates $446,812. The Foreign Representatives tell the Hon. Robert D. Drain that the Foreign Debtors need the Preliminary Injunction to continue so they can proceed with their pending financing transaction with Volo Logistics LLC, and Varig Logistica, S.A. The Volo and VarigLog Financing Deal is expected to cure all debts under the leases and provide adequate assurance of current payments of all leases and other operating expenses. Moreover, the Foreign Debtors believe that continuing the Injunction and proceeding with the Financing Deal will pave the way to their successful restructuring Brazil. In the event that the Injunction is lifted, the Foreign Debtors risk damage to their business, which damage will affect all their creditors. Accordingly, the Foreign Debtors ask Judge Drain to deny Willis' request to lift the injunction. The Foreign Representatives inform the U.S. Bankruptcy Court that all of the Foreign Debtors' lessors have received current payments during the first weeks after the Petition Date in Brazil. Thus, extending the Preliminary Injunction is consistent with U.S. policy and practice, particularly where a transaction is actually pending. The hearing on Willis' Request has been adjourned until September 20, 2005. Headquartered in Rio de Janeiro, Brazil, VARIG S.A. is Brazil's largest air carrier and the largest air carrier in Latin America. VARIG's principal business is the transportation of passengers and cargo by air on domestic routes within Brazil and on international routes between Brazil and North and South America, Europe and Asia. VARIG carries approximately 13 million passengers annually and employs approximately 11,456 full-time employees, of which approximately 133 are employed in the United States. The Company, along with two affiliates, filed for a judicial reorganization proceeding under the New Bankruptcy and Restructuring Law of Brazil on June 17, 2005, due to a competitive landscape, high fuel costs, cash flow deficit, and high operating leverage. The Debtors may be the first case under the new law, which took effect on June 9, 2005. Similar to a chapter 11 debtor-in-possession under the U.S. Bankruptcy Code, the Debtors remain in possession and control of their estate pending the Judicial Reorganization. Sergio Bermudes, Esq., at Escritorio de Advocacia Sergio Bermudes, represents the carrier in Brazil. Each of the Debtors' Boards of Directors authorized Vicente Cervo as foreign representative. In this capacity, Mr. Cervo filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case Nos. 05-14400 and 05-14402). Rick B. Antonoff, Esq., at Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the United States. As of March 31, 2005, the Debtors reported BRL2,979,309,000 in total assets and BRL9,474,930,000 in total debts. (VARIG Bankruptcy News, Issue No. 7; Bankruptcy Creditors' Service, Inc., 215/945-7000) =============== C O L O M B I A =============== PAZ DEL RIO: Arango Chosen to Replace Hadad as President -------------------------------------------------------- Gilberto Gomez Arango has been appointed to replace Alberto Hadad as president of steelmaker Acerias Paz del Rio (APR), reports Business News Americas. Mr. Arango will work to find a JV partner for the company, which has a 14% domestic steel market share. Brazilian long steel producer Belgo Mineira said earlier it wants to take majority control of APR to take advantage of the rising demand for iron and steel in the Colombian market. But, according to reports, securing a majority share in APR may prove to be tough as the government holds 9% of the Company and workers 43%. APR is based in Boyaca department's Belencito. CONTACT: Acerias Paz Del Rio S.A. CARRERA 8A, N 13-31, PISOS 7-11 4260 - Bogota Colombia Phone: +57 1 3411570 +57 1 2823480 EMCALI: Congress Seeks Alliance With ERT ---------------------------------------- The utilities committee of the Colombian congress proposed an alliance of state-run telcos Emcali and ERT, reports Business News Americas. The concept is to create a regional player that would compete better with foreign companies in the country. Several congressmen see the alliance as a positive move since it would allow the expansion of basic telephony coverage currently provided by both companies, as well as increase investments, service continuity and competitiveness. But these congressmen are not ruling out the possibility of Emcali and ERT signing an alliance with Mexico's Telmex or Spain's Telefonica. Meanwhile, Emcali is considering Bogota mayor Luis Garzon's proposal to create a major alliance between state-run telcos ETB, EPM and Emcali in order to face international competition. Mr. Garzon believes the alliance would allow over 8 million fixed lines to enter the broadband market, which is the most profitable in the telecommunications sector. ============= J A M A I C A ============= KAISER ALUMINUM: Amends Terms on Solicitation, Voting Protocol -------------------------------------------------------------- Kaiser Aluminum Corporation, together with Kaiser Aluminum & Chemical Corporation and 19 of their subsidiaries, revise certain provisions on the solicitation and tabulation of votes to accept or reject their proposed joint plan of reorganization. As previously reported, the Remaining Debtors noted in their Solicitation Procedures Motion that they intended to discuss issues related to weighted voting and publication with the Asbestos Committee, as well as votes solicitation on the Plan from the 6-1/2% RPC Revenue Bondholders with the indenture trustee for those bonds. Kimberly D. Newmarch, Esq., at Richards, Layton & Finger, in Wilmington, Delaware, tells Judge Fitzgerald that as a result of discussions regarding certain other aspects of the Solicitation and Tabulation Procedures with the Asbestos Committee, the Remaining Debtors have agreed to make primary revisions to the Solicitation and Tabulation Procedures. Procedures Regarding Direct Channeled PI Claims The Remaining Debtors mailed copies of a P.I. Solicitation Notice and a Directive to all known P I. attorneys. The P.I. Solicitation Notice: -- notified the P.I. Attorneys of the date, time and place of the Disclosure Statement hearing and the deadline and procedures for asserting objections to the approval of the Disclosure Statement or the Solicitation Procedures Motion; -- notified the P.l. Attorneys of the options proposed for soliciting votes on the Plan in respect of Direct Channeled PI Claims; and -- asked that each P.I. Attorney voluntarily select a solicitation method by completing and returning the Directive to the Solicitation and Tabulation Agent on or before August 22, 2005, and submit a Client List by certain dates, depending on the solicitation method selected by the P.I. Attorney. Specifically, the Remaining Debtors intend to serve the revised P.I. Solicitation Notice and Directive on all known P.I. Attorneys, along with one Solicitation Package and one master ballot for voting the applicable Direct Channeled PI Claims, as soon as practicable after the entry of an order approving the Disclosure Statement and the Solicitation and Tabulation Procedures. In accordance with the revisions, the Remaining Debtors ask the U.S. Bankruptcy Court for the District of Delaware to require the P.I. Attorneys -- to the extent that they have not already returned the previous form of the Directive -- to return the Directives to the Solicitation and Tabulation Agent on or before October 3, 2005, or other fixed date that is approximately 20 days after the commencement of the solicitation period. The Remaining Debtors also ask the Court to establish the deadlines for P.I. Attorneys to submit Client Lists to the Solicitation and Tabulation Agent as: (a) October 3, 2005, or another date that is 20 days after the commencement of the solicitation period, if the P.I. Attorney instructs the Solicitation and Tabulation Agent to serve the Clients with Solicitation Packages directly; or (b) October 17, 2005, or another date that is 25 days prior to the proposed Voting Deadline, if the P.I. Attorney elects to handle service of the Solicitation Packages on the Clients. With regard to the weighted voting amounts for Asbestos PI Claims, the Remaining Debtors have agreed with the Asbestos Committee to revise tabulation rules established in the Solicitation and Tabulation Procedures for Asbestos PI Claims: Claim Amount Basis for Asbestos PI Claim for Voting Purposes --------------------------- ------------------- Other Asbestos Disease (Level I) $200 Asbestosis/Pleural Disease (Level II) 700 Asbestosis/Pleural Disease (Level III) 4,850 Severe Asbestosis (Level IV) 20,750 Other Cancer (Level V) 13,800 Lung Cancer 2 (Level VI) 7,000 Lung Cancer 1 (Level VII) 27,500 Mesothelioma (Level VIII) 70,000 Ms. Newmarch notes that because it is contemplated that the Asbestos PI Claims will be temporarily allowed based on the claimant's disease category, the Solicitation and Tabulation Procedures and the master ballots now require P.I. Attorneys who are submitting votes on behalf of their Clients via a master ballot to designate a disease category for each Client. Ms. Newmarch maintains that by signing the master ballot, each P.I. Attorney will certify, among other things, that: * the Clients listed on the master ballot have met the medical and asbestos-exposure criteria for each disease category; and * the disease-category selection is based on medical records or similar documentation in the Clients' files. Ms. Newmarch adds that P.I. Attorneys completing a master ballot must also summarize their Clients' votes on the Plan by disease category. Holders of Asbestos PI Claims who are voting on an individual Ballot must designate a disease category for their Claims, and those holders must certify that they meet the medical and asbestos-exposure criteria for the category selected. Tabulation of Votes for Asbestos PI Claims The Remaining Debtors propose that these rules apply to the tabulation of votes cast in respect of Asbestos PI Claims: (1) For purposes of computing votes, each Asbestos PI Claimholder will be deemed to have voted the full amount of that PI Claim according to the disease category specified. (2) The temporary allowance of Asbestos PI Claims in the amount corresponding to the Disease Category designated by, or on behalf of, the holders of those Claims is solely for voting purposes and does not constitute an allowance of those Claims for distribution purposes under the Asbestos PI Trust. It is also without prejudice to the rights of the Asbestos PI Claimholders or the Debtors and the Asbestos PI Trust in any other context. (3) If no disease category is selected for an Asbestos PI Claim, the Voting Agent will treat the vote cast in respect of that Claim as Other Asbestos Disease (Level I). (4) If more than one disease category is selected for any Asbestos PI Claim, the Voting Agent will count the vote cast in the amount corresponding to the disease category with the highest allowed amount. (5) Multiple master ballots may be completed and delivered to the Solicitation and Tabulation Agent: -- Votes reflected by multiple master ballots will be counted except to the extent that they are duplicative of other master ballots; -- If two or more master ballots are inconsistent, the latest dated master ballot received prior to the Voting Deadline will, to the extent of that inconsistency, govern unless ordered by the Court; and -- If more than one master ballot is submitted and the later master ballots supplement, rather than supersede, earlier master ballots, the attorney submitting that master ballot will mark the subsequent master ballots as "Supplement" and clearly mark which of those votes reflected are additional votes. (6) If two or more master ballots are received from separate counsel, each of whom purports to represent the same holder of an Asbestos PI Claim, the vote by that holder will be counted only once, and only if those votes are consistent. In the event that the votes are not consistent, none of the votes will be counted. The Remaining Debtors also propose that those rules will also apply to master ballots cast in respect of CTPV, NIHL and Silica Personal Injury Claims. Additional Forms of Ballot As a result of the revisions to the Solicitation and Tabulation Procedures, the Remaining Debtors ask Judge Fitzgerald to approve three additional ballots: (a) Ballot No. 3A for individual holders of Asbestos PI Claims to return directly to the Solicitation and Tabulation Agent; (b) Ballot No. 3C for individual holders of Indirect Channeled PI Claims attributable to asbestos; and (c) Ballot No. 4A on which P.1. Attorneys will vote their Clients' Asbestos PI Claims. The Remaining Debtors have re-numbered the forms of Ballot formerly designated as Ballot No. 3 and Ballot No. 4 in the Solicitation Procedures Motion. Ms. Newmarch says that these Ballots are now designated as Ballot No. 3B and Ballot No. 4B. The Remaining Debtors propose to distribute these forms of Ballot to claim holders in classes entitled to vote to accept or reject the Plan: Ballot No. Claimholders ---------- ------------ 1 Class 2 Convenience Claims 2 Class 4 Canadian Debtor PBGC Claims 3A Individual ballot to be returned directly to the Solicitation and Tabulation Agent for Class 5 Asbestos PI Claims 3B Individual ballot to be returned directly to the Solicitation and Tabulation Agent for Class 6 CTPV PI Claims, Class 7 NIHL PI Claims and Class 8 Silica PI Claims 3C Individual ballot to be returned directly to the Solicitation and Tabulation Agent for Indirect Channeled PI Claims attributable to asbestos in Class 5 Ballot No. 4A Master Ballot for Class 5 Asbestos PI Claims 4B Master Ballot for Class 6 CTPV Personal Injury Claims, Class 7 NIHL PI Claims and Class 8 Silica PI Claims 5A Individual ballot to be returned directly to the Solicitation and Tabulation Agent for Subclass 9B General Unsecured Claims in respect of 9-7/8% Senior Notes, 10-7/8% Senior Notes, 7-3/4% SWD Revenue Bonds and 7.60% SWD Revenue Bonds 5B Individual ballot to be returned directly to a Master Ballot Agent for Subclass 9B General Unsecured Claims in respect of 9- 7/8% Senior Notes, 10-7/8% Senior Notes, 7-3/4% SWD Revenue Bonds and 7.60% SWD Revenue Bonds 6 Master Ballot for Subclass 9B General Unsecured Claims in respect of 9-7/8% Senior Notes, 10-7/8% Senior Notes, 7-3/4% SWD Revenue Bonds and 7.60% SWD Revenue Bonds 7 Individual Ballot for Subclass 9B General Unsecured Claims in respect of 6-1/2% RPC Revenue Bonds 8 Ballot for other Subclass 9B General Unsecured Claims New Proposed Solicitation Deadlines Ms. Newmarch reminds Judge Fitzgerald that the Solicitation Procedures Motion contemplated a 35-day period for the solicitation of votes to accept or reject the Plan. Based on discussions with the Asbestos Committee, the Remaining Debtors have agreed to extend that period to 60 days, commencing on the date that the Solicitation and Tabulation Agent completes the mailing of Solicitation Packages to the P.I. Attorneys. Accordingly, the Remaining Debtors ask that, except with respect to claimants holding bonds in "street" name -- who have an earlier deadline to submit their Ballot to the broker, bank or other agent that holds those bonds -- to be counted as votes to accept or reject the Plan, all Ballots must be properly executed, completed and delivered to the Solicitation and Tabulation Agent so that those Ballots are received no later than 5:00 p.m. on November 14, 2005, or other date established by the Remaining Debtors that is at least 60 days after the commencement of the solicitation period. Consistent with their revised solicitation schedule, the Remaining Debtors ask Judge Fitzgerald to schedule the Plan's confirmation hearing for December 1, 2005, or as soon as the Court's schedule permits. The Debtors also ask the Court to establish: * the deadline for filing Rule 3018 Motions 14 days before the Voting Deadline; and * the Confirmation Objection Deadline as November 14, 2005, at 5:00 p.m. The Remaining Debtors contend that a 60-day solicitation period provides sufficient time for: -- creditors to make informed decisions to accept or reject the Plan and submit timely Ballots; -- Master Ballot Agents to distribute Form B Debt Securities Individual Ballots and complete and submit timely Debt Securities Master Ballots; and -- P.I. Attorneys to determine which solicitation method should be used for the solicitation of votes on the Plan from those attorneys' Clients and compile the Client Lists to the Solicitation and Tabulation Agent. A blacklined copy of the Amended Solicitation Procedures is available for free at: http://bankrupt.com/misc/Amended_Solicitation_Procedures.pdf Court Sets Confirmation Hearing in January 2006 The Bankruptcy Court has scheduled hearings for January 9 through January 11, 2006, to consider confirmation of the Debtors' plan of reorganization, Dow Jones Newswires reports. The Remaining Debtors had planned to emerge from bankruptcy by December 31, 2005, but a jammed bankruptcy court calendar pushed the schedule back a month, according to Dow Jones. The Court also approved procedures for the solicitation and tabulation of votes on the Plan. Headquartered in Foothill Ranch, California, Kaiser Aluminum Corporation -- http://www.kaiseraluminum.com/-- is a leading producer of fabricated aluminum products for aerospace and high- strength, general engineering, automotive, and custom industrial applications. The Company filed for chapter 11 protection on February 12, 2002 (Bankr. Del. Case No. 02-10429), and has sold off a number of its commodity businesses during course of its cases. Corinne Ball, Esq., at Jones Day, represents the Debtors in their restructuring efforts. On June 30, 2004, the Debtors listed $1.619 billion in assets and $3.396 billion in debts. (Kaiser Bankruptcy News, Issue No. 77; Bankruptcy Creditors' Service, Inc., 215/945-7000) =========== M E X I C O =========== AHMSA: Finalizes Major Repair in Plate Mill ------------------------------------------- Altos Hornos de Mexico (AHMSA) concluded successfully a major repair in its Plate Mill located in the Hot Rolling facilities. With an investment of US$3 million, the maintenance program was developed for a period of 15 days. By the beginning of this week, the Plate Mill was operating at normal production standards. The major repair included the rehabilitation and maintenance of the two slab reheating furnaces and output beds, replacement of the support structures of the work rolls in Rolling Mill No. 2, machinated of the shear No. 2 for longitudinal cuts and the rehabilitation of four traveling cranes. AHMSA is the only plate producer in Mexico, a product used for the fabrication of heavy-duty machinery, pressured vessels, piping and structures, among others. Last July, AHMSA produced nearly 50,000 metric tons of plate, a historic record for the Company. CONTACT: AHMSA International Operations Prolongacion Juarez s/n Monclova, Coah., 25770 Phone: + 52 (866) 649 34 00 Fax: + 52 (866) 649 23 10 E-mail: sales@ahmsa.com Web site: http://www.ahmsa.com.mx ASARCO: ASARCO Consulting Wants to File Schedules by Oct. 31 ------------------------------------------------------------ In accordance with Rule 1007(b) and(c) of the Federal Rules of Bankruptcy Procedure, a Chapter 11 debtor must file its schedule of assets and liabilities, a schedule of current income and expenditure, a schedule of executory contracts and unexpired leases, and a statement of financial affairs within 15 days after the Petition Date so long as it files a list of its creditors with the bankruptcy petition. C. Luckey McDowell, Esq., at Baker Botts, LLP, in Dallas, Texas, tells Judge Schmidt that due to the administrative load on employees brought on by the pending bankruptcy cases of ASARCO, LLC, and its subsidiary affiliates, ASARCO Consulting, Inc. requires additional time to compile and verify the accuracy of the data needed for the preparation and filing of the Schedules. Under the circumstances, ASARCO Consulting anticipates that it will be unable to complete its Schedules by the deadline established by Bankruptcy Rule 1007(c). At present, ASARCO Consulting believes that a 60-day extension of the deadline will be sufficient to accomplish that project. Accordingly, ASARCO Consulting asks Judge Schmidt to extend the deadline for filing its Schedules, Lists, and Statement of Financial Affairs to Oct. 31, 2005. ASARCO Consulting also asks the Court to rule that the meeting of creditors will not be held until after the date it files the Schedules. Headquartered in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. The Company filed for chapter 11 protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed $600 million in total assets and $1 billion in total debts. The Debtor has five affiliates that filed for chapter 11 protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05- 20521 thru 05-20525). They are Lac d'Amiante Du Quebec Ltee, CAPCO Pipe Company, Inc., Cement Asbestos Products Company, Lake Asbestos Of Quebec, Ltd., and LAQ Canada, Ltd. Details about their asbestos-driven chapter 11 filings have appeared in the Troubled Company Reporter since Apr. 18, 2005. ASARCO has asked that the five subsidiary cases be jointly administered with its chapter 11 case. (ASARCO Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., 215/945-7000) SICARTSA: Union Seeks to Negotiate With Parent ---------------------------------------------- Grupo Villacero's continued refusal to meet directly with the mining-metalworkers' union (STMMRM) has prompted the latter to seek support from the international metalworkers' federation in its efforts to put an end to a more-than-a-month-old strike at Villacero unit, Sicartsa. According to a Business News Americas report, the union wants Villacero to negotiate with the workers directly at an assembly at the Sicartsa steel plant in Mexico's Michoacan state, where a new vote would be held. A vote held earlier this month saw workers rejecting Villacero's proposal, which has not been modified since. Now unions affiliated to the international metalworkers' federation are sending letters to the Mexican government to back STMMRM in its effort to negotiate directly with Villacero "so that the company listens to the demands and there can be an answer," STMMRM spokesperson Consuelo Aguilar said. "We don't believe it will be easy to reach an agreement, and as long as this is the situation, the strike movement is not going to end," she said. TV AZTECA: To Prepay MXN1.406 Billion Loan Due 2008 --------------------------------------------------- TV Azteca, S.A. de C.V. (BMV: TVAZTCA; Latibex: XTZA), one of the two largest producers of Spanish language television programming in the world, announced Friday that it expects to prepay during September 2005 its MXN1.406 billion (US$131 million) loan with Banco Inbursa, S.A., due February 2008, with an escalating rate currently at TIIE + 490 bps. The source funds for the prepayment come from Friday's successful issuance in Mexican debt markets of MXN1.416 million Structured Securities Certificates at TIIE + 215 bps., with gradual maturities ending 2011. Fitch Mexico's rating for the Certificate is AA(mex). "The new sources of financing are part of our ongoing efforts to further reduce the company's financial expense and to enhance our maturity profile," said Carlos Hesles, Chief Financial Officer of TV Azteca. "We will not cease in our proactive search for future opportunities that improve our cost of financing and TV Azteca's overall financial results." Mr. Hesles added that, "the enhanced financial terms represent a noteworthy vote of confidence from Mexican financial market participants on the strength of TV Azteca's operations and financial results going forward." Company Profile TV Azteca is one of the two largest producers of Spanish language television programming in the world, operating two national television networks in Mexico, Azteca 13 and Azteca 7, through more than 300 owned and operated stations across the country. TV Azteca affiliates include Azteca America Network, a broadcast television network focused on the rapidly growing US Hispanic market; and Todito.com, an Internet portal for North American Spanish speakers. CONTACT: Investor Relations: Bruno Rangel Tel: 5255 1720 9167 E-mail: jrangelk@tvazteca.com.mx Rolando Villarreal Tel: 5255 1720 0041 E-mail: rvillarreal@gruposalinas.com.mx Media Relations: Tristan Canales Tel: 5255 1720 5786 E-mail: tcanales@tvazteca.com.mx Daniel McCosh Tel: 5255 1720 0059 E-mail: dmccosh@tvazteca.com.mx ================= V E N E Z U E L A ================= CADAFE: Anticipates Additional $100M/Yr With New Sales System ------------------------------------------------------------- Venezuelan state integrated electricity firm Cadafe expects its planned new sales system to bring in an additional US$100- million a year starting 2007, Business News Americas reports. The plan, which encompasses sales and billing upgrade, aims to lessen technical and non-technical losses. These losses currently account for about 40% of all the electricity Cadafe distributes. Cadafe currently carries out most of its meter reading, bill collections and customer service manually but that will all change with the new plan. Under the plan, customers' houses and business will be given new meters while the 300 commercial offices of Cadafe will be provided with new computers. The Company's collection agents are already receiving new cars, 150-plus so far this year. The plan is first being carried out in the three states where most of Cadafe's customers are residing. They are Aragua and Carabobo in central Venezuela, and Anzoategui in eastern Venezuela. According to Cadafe president and deputy energy and oil minister Nervis Villalobos, the Company will invest US$40 million in the first year of the plan in the three states and it could then be expanded nationwide within three years if successful. "It is a very ambitious plan that will get our 300 offices interconnected, enhance our telecommunications network and our computer systems," Mr. Villalobos said. CADAFE: To Rent Out 10MW Thermo Unit to Antigua & Barbuda --------------------------------------------------------- Cadafe president and energy and oil deputy minister Nervis Villalobos said that Antigua & Barbuda will rent from it a 10MW thermo generation unit for US$2 million - US$3 million a year, relates Business News Americas. The move is part of the Petrocaribe regional agreement sponsored by Venezuela. Antigua & Barbuda along with 13 other Caribbean countries signed up for the said agreement in July, enabling them to purchase Venezuelan fuel under preferential terms including options for long-term financing. Mr. Villalobos said the Caribbean island nations that signed up for Petrocaribe will receive a total 20,000 barrels a month of fuel and diesel oil just for power generation out of total crude and fuel supplies of about 200,000 barrels a day. This is the first time Cadafe has been involved in a generation project in the Caribbean. *********** 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. The TCR Latin America subscription rate is $575 per half-year, delivered via e-mail. 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