/raid1/www/Hosts/bankrupt/TCRLA_Public/050921.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
Wednesday, September 21, 2005, Vol. 6, Issue 187
Headlines
A R G E N T I N A
AGUAS ARGENTINAS: Govt. Downplays Effects of Suez Withdrawal
ALDEAVISION: Announces Restructuring of Debt
ALPI ASOCIACION: Creditors' Claims to be Presented Sept. 22
ATENCION MEDICA: Proceeds With Liquidation
BONVIN HERMANOS: Gets Court Approval for Reorganization
CAYETANO DE MAIO: Trustee to Submit General Report
CONTACTO PUBLICITARIO: Judge Approves Bankruptcy
DIHUEL S.A.: Court Grants Reorganization Plea
GULF CUER: General Report Due for Submission Sept. 22
KEY ENERGY: Receives Notice From 6.375% Senior Noteholders
KEY ENERGY: Provides August Rig Hours, Select Financial Data
ONRAK S.A.: Asks Court for Reorganization
PUB LIVERPOOL: Court Declares Company "Quiebra"
ULZEN S.A.: Court OKs Creditor's Bankruptcy Call
B A R B A D O S
SUNBEACH COMMUNICATIONS: Laquis Threatens to Abandon Offer
B R A Z I L
BANCO ITAU: Stock Split to be in Effect on Exchange on Oct. 3
CP CIMENTO: Ratings Placed on Review for Possible Downgrade
ELETROPAULO METROPOLITANA: Approves Transfer of Quotas Held
INTERBRAZIL: Regulator Defends Decision on Intervention
SADIA: Announces $1.5B Investment Mato Grosso
C O L O M B I A
TELECOM: Spain's Telefonica Finalizing Bid with ETB, EPM
E C U A D O R
PETROECUADOR: To Spend More Than Triple if Fuel Price Rises
H O N D U R A S
MILLICOM INTERNATIONAL: Acquires GSM Mobile Operation in Congo
J A M A I C A
AIR JAMAICA: Making Redundancy Payments to Dismissed Employees
DYOLL GROUP: Consider Other Options to Stay Alive
M E X I C O
AOL LATIN AMERICA: Files Monthly Operating Report for July 2005
ASARCO: Wants Anderson Kill to Litigate Insurance Matters
BALLY TOTAL: To Sell Unit to Marc Tascher for $45M
BALLY TOTAL: Expects to File Financial Statements by November 30
GRUPO IUSACELL: BONY Terminates Company's ADR Program
P U E R T O R I C O
CENTENNIAL COMMUNICATIONS: Hires Financial Advisors
V E N E Z U E L A
PDVSA: To Sign JV Deal With Petrobras in January 2006
- - - - - - - -
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A R G E N T I N A
=================
AGUAS ARGENTINAS: Govt. Downplays Effects of Suez Withdrawal
------------------------------------------------------------
The Argentine government believes French group Suez's decision
to withdraw from Aguas Argentinas will not affect water and
sewer service in Greater Buenos Aires.
"I am sure there will be no kind of inconvenience in maintaining
adequate service and that other operators will soon take over
the firm," said Cabinet Chief Alberto Fernandez.
Suez, which holds 34% of Aguas Argentinas, announced Sept. 9
that it is withdrawing from the Argentine market after the
French group failed to reach an agreement on tariffs with the
government.
Spain's Aguas de Barcelona (Agbar), which already owns 25% of
Aguas Argentinas, is reported to be taking over operation of the
Company with backing from three banks and an unspecified U.S.
investor.
Agbar, however, has stated that it would exit Aguas Argentinas,
along with Suez, while it is still considering options for its
other Argentine concession, Aguas Cordobesas. Agbar reportedly
plans to sell off all its Latin American water concessions with
the exception of Chile.
ALDEAVISION: Announces Restructuring of Debt
--------------------------------------------
AldeaVision Inc. (TSX-V: ALD) announces that it has reached a
debt restructuring agreement with Miralta Capital II Inc.
("Miralta") and Almiria Capital Corp. ("Almiria"). Under the
debt- restructuring plan, AldeaVision will capitalize $463,420
of unpaid interest due on three existing convertible debentures
of an aggregate principal amount of $7,530,000 and substitute
these three debentures for three new convertible debentures of
an aggregate principal amount of $7,993,420. Each new debenture
will have a conversion price of $0.16 per share, an expiry date
of January 30, 2008 and will bear no interest. In addition,
Miralta has agreed to convert a short-term loan of $290,000
together with the $123,740 of the unpaid interest thereon into a
new $413,740 debenture on identical terms and conditions as the
other new debentures. Miralta has also agreed to convert $90,064
of unpaid interest, which was due on a cancelled debenture into
a new $90,064 convertible debenture on identical terms and
conditions as the other new debentures.
Also, under the proposed debt-restructuring plan, Almiria has
agreed to convert a short-term loan of $3,315,000 together with
$196,755 of unpaid interest thereon into a new $3,511,755
debenture on identical terms and conditions as the other new
debentures to be issued to Miralta.
Management of AldeaVision believes that the proposed debt
restructuring will improve AldeaVision's financial position. The
debt restructuring agreement is conditional upon regulatory
approval and constitutes a related party transaction under
applicable securities regulatory requirements. AldeaVision will
rely on an exemption from the valuation and minority approval
requirements contained in the applicable securities regulation
or rule on the basis of the "financial hardship exemption".
On September 15, 2005, the Board of Directors of AldeaVision,
including all independent directors sitting thereon, have made a
determination to the effect that AldeaVision met the conditions
of availability of the financial hardship exemption, provided
under Ontario Securities Commission Rule 61-501 Insider Bids,
Issuer Bids, Going Private Transactions and Related Party
Transactions and the Autoritas des marchas financiers Policy
Statement Q-27 - Protection of Minority Security holders in the
course of certain transactions, being therefore in a position to
rely thereon in connection with the proposed debt restructuring.
It is expected that the proposed debt-restructuring plan will be
completed by the end of September 2005. The proposed debt
restructuring will have the effect of stopping interest accrual
on the current outstanding debt instruments of AldeaVision. "We
are very pleased that our secured creditors have alleviated the
current financial burden on our Company by extending the
repayment of our debt to January 2008 and by eliminating future
interest payments. This restructuring greatly improves our
balance sheet", stated Mr. Lionel Bentolila, President and Chief
Executive Officer of AldeaVision.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
About AldeaVision
Montreal-based AldeaVision Inc. is an innovative provider of
broadcast quality video networking services and solutions for
the television, film and media industries. The AldeaVision
Global Video Network uses digital facilities over broadband
fiber networks and is designed to provide seamless end-to-end
broadcast digital video connections among broadcasters, content
producers, post-production and media companies. AldeaVision
services are available in Miami, New York, Washington D.C., Los
Angeles, Toronto, Montreal, Mexico City, Lima (Peru), Caracas
(Venezuela), Santiago (Chile) and Buenos Aires (Argentina).
AldeaVision is listed on the TSX Venture Exchange under the
symbol ALD.
CONTACT: AldeaVision Inc.
Morrie Glick, CFO & Vice-President, Finance
Tel: (514) 344-5432
Fax: (514) 344-5439
E-mail: morrie.j.glick@aldeavision.com
Renmark Financial Communications Inc.
Edith English
E-mail: eenglish@renmarkfinancial.com
Cole Bradley
E-mail: cbradley@renmarkfinancial.com
Tel: (514) 939-3989
Fax: (514) 939-3717
URL: http://www.aldeavision.com
ALPI ASOCIACION: Creditors' Claims to be Presented Sept. 22
-----------------------------------------------------------
The claims of creditors against Buenos Aires-based company Alpi
Asociacion Civil will be presented in court tomorrow, Sept. 22,
2005. The claims underwent verification until Aug. 10, 2005.
A general report on the Company's reorganization will also be
submitted on Nov. 4, 2005.
The Company began reorganization proceedings after Court No. 18
of the city's civil and commercial tribunal, with assistance
from Clerk No. 36, granted its petition for "concurso
preventivo". The reorganization is being conducted under the
direction of local accounting firm "Estudio Moussoli,
Duschatzky, Maccio y Asociados."
An informative assembly for the Company's creditors is also
scheduled on May 10, 2006.
CONTACT: "Estudio Moussoli, Duschatzky, Maccio y Asociados"
Trustee
Lavalle 1882
Buenos Aires
ATENCION MEDICA: Proceeds With Liquidation
------------------------------------------
Diagnostico por Imagenes Pilar S.A. successfully sought for the
bankruptcy of Atencion Medica Integral S.A. after Court No. 19
of Buenos Aires' civil and commercial tribunal declared the
Company "Quiebra," reports La Nacion.
As such, Atencion Medica Integral S.A. will now start the
process with Mr. Juan Gianazzo as trustee. Creditors must submit
proofs of their claim to the trustee by Nov. 2, 2005 for
authentication. Failure to comply with this requirement will
mean a disqualification from the payments that will be made
after the Company's assets are liquidated.
The creditor sought for the Company's liquidation after the
latter failed to pay debts amounting to $15,405.45.
The city's Clerk No. 38 assists the court on the case that will
close with the sale of all of its assets.
CONTACT: Atencion Medica Integral S.A.
Gallo 1569
Buenos Aires
Mr. Juan Gianazzo, Trustee
Avenida de Mayo 1370
Buenos Aires
BONVIN HERMANOS: Gets Court Approval for Reorganization
-------------------------------------------------------
Bonvin Hermanos S.R.L. will begin reorganization following the
approval of its petition by Court No. 2 of Colon'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.
Ms. Sara Graciela Loker will oversee the reorganization
proceedings as the court-appointed trustee. She will verify
creditors' claims until Oct. 24, 2005. The validated claims will
be presented in court as individual reports on Dec. 19, 2005.
Ms. Loker 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 Feb. 27, 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 5, 2006.
CONTACT: Bonvin Hermanos S.R.L.
Andrade 60
Colon (Entre Rios)
Ms. Sara Graciela Loker, Trustee
Alem 297
Colon (Entre Rios)
CAYETANO DE MAIO: Trustee to Submit General Report
--------------------------------------------------
Mr. Carlos Guido Martino, the court-appointed trustee, will
submit the general report tomorrow, Sep. 22, 2005.
Mr. Martino verified creditors' proofs of claim until May
10, 2005. The verified claims served as basis for the individual
reports, which were submitted in court on June 23, 2005.
Court No. 5 of Buenos Aires' civil and commercial tribunal
ordered the liquidation of Cayetano de Maio y Cia S.R.L. after
it defaulted on its debt obligations.
The city's Clerk No. 9 assists the court on this case that
will close with the disposal of the Company's assets.
CONTACT: Mr. Carlos Guido Martino, Trustee
Presidente Roque Saenz Pena 651
Buenos Aires
CONTACTO PUBLICITARIO: Judge Approves Bankruptcy
------------------------------------------------
Contacto Publicitario S.A. was declared bankrupt after Court No.
9 of Buenos Aires' civil and commercial tribunal endorsed the
petition of Banca Nazionale del Lavoro for the Company's
liquidation. Argentine daily La Nacion reports that Banca
Nazionale del Lavoro has claims totaling $23,984.09 against
Contacto Publicitario S.A.
The court assigned Mr. Ruben Hugo Faure to supervise the
liquidation process as trustee. Mr. Faure will validate
creditors' proofs of claims until Nov. 14, 2005.
The city's Clerk No. 18 assists the court in resolving this
case.
CONTACT: Contacto Publicitario S.A.
Callao 661
Buenos Aires
Mr. Ruben Hugo Faure, Trustee
Rivadavia 1227
Buenos Aires
DIHUEL S.A.: Court Grants Reorganization Plea
---------------------------------------------
Dihuel S.A. successfully petitioned for reorganization after
Court No. 20 of Buenos Aires' civil and commercial tribunal
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 Mr. Jose Luis Carriquiry will serve as
trustee during the course of the reorganization. The trustee
will be accepting creditors' proofs of claim for verification
until Nov. 22, 2005.
After verifications, the trustee will prepare the individual
reports and submit it in court on Feb. 3, 2006. He will also
present a general report for court review on March 17, 2006.
The Company will endorse the settlement proposal, drafted from
the submitted claims, for approval by the creditors during the
informative assembly scheduled on Aug. 16, 2006.
CONTACT: Mr. Jose Luis Carriquiry, Trustee
Loyola 660
Buenos Aires
GULF CUER: General Report Due for Submission Sept. 22
-----------------------------------------------------
The submission of the general report on the liquidation of Gulf
Cuer S.R.L. will be tomorrow, Sep. 22, 2005, following the
presentation of the individual reports on Aug. 10, 2005. The
individual reports contained creditors' claims, which underwent
verification that ended on June 14, 2005.
Court No. 10 of Buenos Aires' civil and commercial tribunal
ordered the liquidation of Gulf Cuer S.R.L. after the Company
defaulted on its debt obligations. The court placed the
Company's affairs as well as its assets under the control of Mr.
Jose Maria Colace, the court-appointed trustee.
Clerk No. 20 assists the court on this case that will end with
the sale of the Company's assets. Proceeds from the sale will be
used to pay the Company's creditors.
CONTACT: Mr. Jose Maria Colace, Trustee
Avda Cordoba 652
Buenos Aires
KEY ENERGY: Receives Notice From 6.375% Senior Noteholders
----------------------------------------------------------
Key Energy Services, Inc. (OTC Pink Sheets: KEGS) announced
Monday that Cede & Co., acting at the request of holders
("Noteholders") of $51 million in principal amount of the
Company's $150 million 6.375% Senior Notes due 2013 (the
"Notes") has delivered a notice which purports to be a "notice
of acceleration." As previously disclosed, holders of 25% or
more of the outstanding principal balance of the Notes have the
right to accelerate the Notes and demand immediate payment of
them as a result of the Company's failure to file its Annual
Report on Form 10-K for the year ended December 31, 2003 within
the periods permitted under the indenture, as amended. The
Company believes that the notice is defective in certain
respects. If and when the Company receives a valid notice of
acceleration and demand for payment, the Company will pay the
outstanding principal and accrued interest on the Notes.
Also as previously disclosed, in July 2005 the Company obtained
a $547.25 million Senior Credit Facility, which includes a $400
million seven- year Delayed Draw Term Loan B Facility. The
Delayed Draw Term Loan B Facility is available to repay the
6.375% Notes. If and when the Company is required to repay the
Notes, the Company will borrow $150 million under this Facility
to repay the outstanding principal of the Notes. The Company
will also pay accrued interest on the Notes, which it will fund
from cash on hand. At September 15, 2005, cash and short term
investments totaled approximately $102 million.
As a result of the failure to file the 2003 Form 10-K report,
the holders of the Company's 8.375% Senior Notes due 2008 also
have the right to accelerate the notes and demand repayment in
full. To date, the Company has not received any notice of
acceleration with respect to these notes. The balance of the
Delayed Draw Term Loan B Facility is available to repay these
notes, if necessary.
Key Energy Services, Inc. is the world's largest rig-based well
service company. The Company provides oilfield services
including well servicing, contract drilling, pressure pumping,
fishing and rental tools and other oilfield services. The
Company has operations in essentially all major onshore oil and
gas producing regions of the continental United States and
internationally in Argentina.
CONTACT: KEY ENERGY SERVICES, INC.
John Daniel
Tel: +1-713-651-4300
KEY ENERGY: Provides August Rig Hours, Select Financial Data
------------------------------------------------------------
Key Energy Services, Inc. (OTC Pink Sheets: KEGS) announced
Monday rig hours for the month of August 2005 and provided an
activity update and select financial data for the month ended
July 31, 2005.
ACTIVITY UPDATE
Activity levels improved modestly during August with rig hours
totaling approximately 237,000. The Company did experience a
minor disruption in activity during the first week of September
as a result of Hurricane Katrina. Some of the Company's 10 well
service rigs located in the South Louisiana market were shut
down during the storm; however, none of the equipment sustained
any major damage.
ACTIVITY LEVELS
Month Ending
8/31/2005 7/31/2005 8/31/2004
Working Days 23 20 22
Rig Hours 236,966 212,802 214,108
Trucking Hours 215,807 192,204 233,648
The Company calculates working days as total weekdays for the
month less any company holidays that fall in that month. For
the month of September 2005, there are 21 working days.
SELECT FINANCIAL DATA
Set forth below is certain financial information for the Company
for the month ended July 31, 2005. The information provided has
been prepared by management in accordance with generally
accepted accounting principles but is unaudited and has not been
reviewed by the Company's independent accountants. The table
does not contain all the information or notes that would be
included in the Company's financial statements.
Month Ended
7/31/05
(In thousands - Unaudited)
Select Operating Data:
Revenues
Well servicing (A) $78,106
Pressure Pumping 12,815
Fishing and Rental Services 6,430
Other 168
Total revenues $97,519
Costs and Expenses
Well servicing $48,317
Pressure Pumping 7,600
Fishing and Rental Services 4,548
General and administrative (B) 12,587
Interest (C) 4,643
Loss on debt retirement (D) 2,411
7/31/05
(In thousands - Unaudited)
Select Balance Sheet Data:
Current Assets
Cash and cash equivalents (E), (F) $94,729
Accounts receivable, net of
allowance for doubtful accounts 203,249
Inventories 22,372
Prepaid expenses and other current assets 21,863
Total current assets $342,213
Current Liabilities
Accounts payable 61,918
Other accrued liabilities 78,323
Accrued interest 11,987
Current portion of long-term debt
and capital lease obligations 4,805
Total current liabilities $157,033
Long-term debt, less current portion (G) $425,731
Capital lease obligations, less
current portion 9,611
Deferred Revenue 436
Non-current accrued expenses 39,349
NOTES
(A) The Well Servicing category includes the financial results
of the Company's remaining contract drilling assets which are
located in Argentina, Appalachia and the Powder River Basin of
Wyoming.
(B) General and administrative expenses include approximately
$980,000 of non-cash compensation expense for stock awards
granted to members of our Board of Directors and restricted
stock grants made to certain members of senior management.
(C) Interest expense includes amortization of deferred debt
issue costs, discount and premium of approximately $165,000 for
the month ended July 31, 2005.
(D) Loss on debt retirement relates to the replacement of the
Company's former revolving credit facility
(E) Cash and short term investments at September 15, 2005
totaled approximately $101,875,000.
(F) Capital expenditures were approximately $7,123,000 for the
month ended July 31, 2005.
(G) There were no outstanding borrowings under the Company's
revolving credit facility at September 15, 2005.
The information herein represents the results for only one month
and the information herein is not necessarily indicative of the
results that may be reported for the quarter ended September 30,
2005. The information herein is select financial data and does
not represent a complete set of financial statements, which
would include additional financial data and notes to financial
statements. Until the restatement of the Company's prior year
financial statements is completed, the unaudited information
herein may differ from its restated financial statements. It is
possible that the process of restating the prior year financial
statements could require additional changes to the Company's
financial statements for 2005 that individually or in the
aggregate could be material to the Company's financial position,
results of operations or liquidity.
Key Energy Services, Inc. is the world's largest rig-based well
service company. The Company provides oilfield services
including well servicing, contract drilling, pressure pumping,
fishing and rental tools and other oilfield services. The
Company has operations in all major onshore oil and gas
producing regions of the continental United States and
internationally in Argentina.
CONTACT: Key Energy Services, Inc.
John Daniel
(713) 651-4300
ONRAK S.A.: Asks Court for Reorganization
-----------------------------------------
Onrak S.A., a company operating in Buenos Aires, has requested
for reorganization after failing to pay its liabilities since
March 12, 2004.
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. 2 of the city's civil and
commercial tribunal. Clerk No. 3 assists on this case.
CONTACT: Onrak S.A.
Bruselas 567
Buenos Aires
PUB LIVERPOOL: Court Declares Company "Quiebra"
-----------------------------------------------
Court No. 21 of Buenos Aires' civil and commercial tribunal
declared Pub Liverpool S.A. bankrupt, says La Nacion. The ruling
comes in approval of the petition filed by the Company's
creditor, Mr. Emilio Villalba, for nonpayment of $62,815.47 in
debt.
Trustee Alfredo Figliemeni will examine and authenticate
creditors' claims until Dec. 7, 2005. This is done to determine
the nature and amount of the Company's debts. Creditors must
have their claims authenticated by the trustee by the said date
in order to qualify for the payments that will be made after the
Company's assets are liquidated.
Clerk No. 41 assists the court on the case, which will conclude
with the liquidation of the Company's assets.
CONTACT: Pub Liverpool S.A.
Alicia Moreau de Justo 381
Buenos Aires
Mr. Alfredo Figliemeni, Trustee
Agrelo 4240
Buenos Aires
ULZEN S.A.: Court OKs Creditor's Bankruptcy Call
------------------------------------------------
Construction company Ulzen S.A. entered bankruptcy after Court
No. 12 of Buenos Aires' civil and commercial tribunal approved a
bankruptcy motion filed by Sonopres Rimo Argentina S.A., reports
La Nacion. The Company's failure to pay US$11,706.26 in debt
prompted the creditor to file the petition.
Working with the city's Clerk No. 24, the court assigned Ms.
Graciela Lissarrague as trustee for the bankruptcy process. The
trustee's duties include the authentication of the Company's
debts and the preparation of the individual and general reports.
Creditors are required to present their proofs of claim to the
trustee before Nov. 11, 2005.
The Company's assets will be liquidated at the end of the
bankruptcy process to repay creditors. Payments will be based on
the results of the verification process.
CONTACT: Ulzen S.A.
Carlos Calvo 838
Buenos Aires
Ms. Graciela Lissarrague, Trustee
Tte. Gral. J. D. Peron 1509
Buenos Aires
===============
B A R B A D O S
===============
SUNBEACH COMMUNICATIONS: Laquis Threatens to Abandon Offer
----------------------------------------------------------
Investor Dr Joseph Laquis has asked the government to provide an
update on the status of the cellular license of Sunbeach
Communications Inc soon or else it will abandon its offer to
purchase majority shares in the Company.
According to a report released by The Barbados Advocate, the
government can still revoke the cellular license it granted to
Sunbeach if the license fee of BBD750,000 is not paid sometime
within the next two months.
Laquis heads Trinidad & Tobago firm Telcom Holdings, which
signed an agreement with Sunbeach shareholders three months ago,
offering to buy 51% of the Barbadian telecommunications firm.
The agreement is set to expire Sep. 30. If Minister of Energy
and Public Utilities Anthony Wood fails to deliver a decision on
the license by then, it would be bad news for hundreds of
Sunbeach shareholders, who have been banking on the opportunity
that Telcom's offer presents.
Shareholders have been unable to trade their shares for over a
year since the imposition of a suspension by the Barbados Stock
Exchange, prompted by serious doubts raised by its auditors
about the Company's ability to continue as a going concern.
LaqTel Communications is one of the new cellular service
providers in the Trinidad and Tobago market. In March of 2002,
LaqTel Limited was created with the objective of becoming
Trinidad and Tobago's premier provider of integrated information
and communications services, through advanced technological
platforms. The Company, which is fully locally owned, recently
emerged successful in its bid for the award of a mobile
telecommunications license, through an internationally designed
and operated auctioning process. The Company plans to become
commercially operational by the end of 2005.
LaqTel, recently signed a contract with equipment providers
Nortel, valued at approximately US$50 million, to build a 3G
wireless network for nation-wide delivery of mobile broad-band
services in Trinidad & Tobago. If the Barbados deal goes
through, investors are promising for Barbados much of the same
high quality communications services earmarked for T&T. Based on
CDMA, rather than GSM technology, company representatives said
this would mean an advanced wireless infrastructure providing
subscribers with "anywhere, anytime" access to a variety of
services including Web browsing, large file downloads and online
gaming at speeds comparable to fixed broadband connections like
DSL. LaqTel also plans to offer business customers secure mobile
access to their corporate data networks from any wireless
device, making it possible for them to remain productive when
away from the office.
CONTACT: SUNBEACH COMMUNICATIONS, INC.
San Remo Belmont Road
St. Michael, Barbados
Phone: 246-430-1569
Fax: 246-228-6330
===========
B R A Z I L
===========
BANCO ITAU: Stock Split to be in Effect on Exchange on Oct. 3
-------------------------------------------------------------
On August 23 2005, Banco Itau Holding Financeira S.A. (NYSE:
ITU) announced to the Market that the Special General Meeting
held on August 22, 2005, had decided to split the Company's
stock, with the aim of raising its liquidity by adjusting the
quotation to a more attractive level for trading on exchanges.
For the purpose of regulatory agency approval, we are informing
our stockholders that this split will be in effect on exchanges
on October 3, 2005, as follows:
In the domestic market:
- stockholders will receive 9 (nine) new shares free of
charge for each share of the same type held on September
30 2005;
- the new shares will be authorized for trading as of
October 3 2005, and be fully entitled to earnings
announced as of September 30 2005, including monthly
interest on own capital to be paid November 1 2005, in the
adjusted amount of R$ 0.021 per share, with 15% income tax
withheld at source, excepting holdings of organizations
certified as immune or exempt from this tax;
In the international market:
- on the New York Stock Exchange (NYSE), where currently,
every 2 (two) ADR's - American Depositary Receipts
represent 1 (one) preferred share, the ADR's will be split
by a ratio of 400%, investors receiving free of any cost 4
(four) new ADR's for each existing ADR held, and each ADR
will represent one (1) preferred share;
- on the Buenos Aires Stock Exchange (BCBA), where each
Argentinean Depositary Certificate (CEDEAR - Certificado
de Deposito Argentino) currently represents one (1)
preferred share, the CEDEAR's will be split 900%, being
attributed to the investors 9 (nine) new CEDEAR's for each
CEDEAR they hold; and each CEDEAR will continue to
represent one (1) preferred share.
Note that this split will not lead to any alteration in asset or
capital stock value, or on the amount of stockholders' dividend
entitlements.
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
CP CIMENTO: Ratings Placed on Review for Possible Downgrade
-----------------------------------------------------------
Approximately BRL 100 million of debt affected
Moody's America Latina ("Moody's") placed under review for
possible downgrade the B1 global local currency rating and
Baa1.br national scale rating of CP Cimento e Participacoes
S.A.'s ("CP Cimento") debentures due in 2006. The rating action
reflects CP Cimento's overall deteriorated credit metrics as a
result of weakened operating margins and higher indebtedness, as
well as Moody's concerns regarding the company's tightened
liquidity position due to a substantial concentration of debt
maturity in the short term.
The review of CP Cimento's ratings will focus on the company's
capacity to recover operating margins and timely address its
refinancing needs.
CP Cimento is a non-operational holding company that controls
two cement producers in Brazil, Cimento Tupi S.A. and Companhia
de Cimento Ribeirao Grande. Headquartered in Rio de Janeiro, CP
Cimento is Brazil's seventh largest cement producer with annual
production capacity of 3.7 million tons. Net revenues for the
twelve months ended June 30, 2005 were approximately USD 159
million.
ELETROPAULO METROPOLITANA: Approves Transfer of Quotas Held
-----------------------------------------------------------
The shareholders of Eletropaulo Metropolitana Eletricidade de
Sao Paulo S.A. (the "Company") approved in a meeting held on
September 15, 2005 the proposal for a transfer of the quotas
held by the Company in the capital stock of Eletropaulo
Telecomunicacoes Ltda. ("Telecomunicacoes") to AES Transgas
Empreendimentos S.A. ("Transgas"), a business that shares common
control with the Company, pursuant to the provisions of the
Draft Quota Purchase and Sale Contract (the "Contract") already
approved.
The Company will transfer the said quotas to Transgas in order
to comply with the aforementioned legal and regulatory
requirements, because it was unable to sell this interest to
third parties within the period stipulated by law. Thus, the
Contract ties the payment of the acquisition price to the
Company ("Acquisition Price") to the actual receipt, by
Transgas, of the sale price of these quotas to third parties,
which may occur within a period of 3 (three) years as of the
date of execution of the Contract. If Transgas fails to sell the
quotas to third parties within this period, the latter will be
extended for another 36 (thirty-six) months.
In the meantime, and until the Acquisition Price has been paid
by Transgas to the Company, the latter will be entitled to:
1) usufruct the proprietary rights over the quotas in
Telecomunicacoes that have been transferred to Transgas, and
over any other rights that the latter may acquire while the
Contract is still in effect ("Quotas Belonging to Transgas");
and
2) to veto any proposal concerning certain issues of
Telecomunicacoes. To secure the payment of the Acquisition Price
to the Company, Transgas will pledge the Quotas Belonging to
Transgas to the Company, and this pledge will be lifted upon the
payment of the Acquisition Price. The Contract will not become
legally binding and effective until it has been approved by
ANEEL and the National Telecommunications Agency (ANATEL).
Proposal for the closing of two Company subsidiaries - namely
Metropolitana Overseas II, Ltd. ("Metropolitana Overseas") and
Eletropaulo Comercial Exportadora Ltda. ("Comercial
Exportadora") - by 12.31.2006, according to a schedule that had
already been considered viable by ANEEL in a decision made on
Aug. 11, 2005.
CONTACT: Eletropaulo Metropolitana Eletricidade de Sao Paulo S/A
Investor Relations Manager
Ms. Clarice Silva Assis
E-mail: clarice.assis@aes.com
Phone:(55 11) 2195-2229
Fax:(55 11) 2195-2503
INTERBRAZIL: Regulator Defends Decision on Intervention
-------------------------------------------------------
Brazil's chief insurance regulator Rene Garcia defended the
entity's handling of the intervention of local insurer
Interbrazil.
The insurer, which started operating in 1997, won attractive
state government contracts between 2000 and 2003.
In 2004, the regulator began to closely watch the insurer on the
suspicion of irregularities and finally it moved to intervene
and liquidate the Company in August this year.
Since then, Garcia has come under fierce criticism in the
Brazilian press for not moving earlier to intervene Interbrazil.
But the regulator said he only followed the procedures outlined
by the law. It would be a "crime" to intervene a company without
giving it the right to defend itself against the accusations, he
said.
SADIA: Announces $1.5B Investment Mato Grosso
---------------------------------------------
Sadia S.A. signed Monday a protocol of intentions with the Mato
Grosso State governor, Blairo Maggi, to install two poultry
slaughter houses, a slaughter and industrialization unit for
hogs and an animal feed factory. The investment in these new
units, be distributed between 2006 and 2009, will add up to
R$1.5 billion, of which R$800 million will be made by Sadia, and
the remainder by its 500 out growers involved in this project.
This is the largest investment announced by Sadia in the last
years.
The poultry slaughterhouses will be set up in the city of Lucas
do Rio Verde and Campo Verde. The location of the hog unit is
yet to be determined. It is expected that when these units are
fully operational, they will generate 8,000 direct jobs and
24,000 indirect ones. Moreover, the investments will strongly
contribute with the state of Mato Grosso's agriculture, as the
units will increase the demand for soybeans and corn used in
animal feed.
In Lucas do Rio Verde, Sadia will absorb the Empresa Mato-
grossense de Alimentos (EMA), which has a privileged location.
The Company will install in it a poultry slaughterhouse with a
slaughtering capacity of 500 thousand animals per day. The
Company's direct investment in this slaughterhouse will be R$300
million and it will generate 3,000 direct jobs in the city. The
second slaughterhouse will have the same size and will be
installed in the city of Campo Verde.
It is expected that already in 2007, these two units will be
operating with one third of their capacity. Until the end of
2009 they will reach their full operational capacity, when Sadia
expects that the investments will generate additional revenue of
R$1.2 billion per year. The estimate is that a little over half
of the production of the mato-grossensse slaughter houses will
be export oriented and the remainder directed towards the
domestic market. Sadia is the largest Brazilian chicken
exporter, responsible for 28% of all Brazilian exports,
according to the Brazilian Chicken Producers and Exporters
Association (Abef).
Regarding hogs, Sadia will set up in the State of Mato Grosso a
slaughter and industrialization unit that will be a benchmark to
the market. The location is yet to be determined and will be
announced as soon as all necessary studies are completed. The
Company's direct investment will be approximately R$200 million
and will generate 2,000 direct jobs.
The R$700 million estimated investment that will be done by the
out growers will be mainly directed towards the construction of
facilities, poultry and hogs' farms, to supply the new slaughter
houses' demand.
CONTACT: Sadia S.A.
Director of Finance and Investor Relations
Luiz Murat Jr.
Phone: (55 11) 2113-3465
Fax: (55 11) 2113-1785
E-mail: grm@sadia.com.br
Investor Relations
Christiane Assis
Phone : (55 11) 2113-3552
E-mail: christiane.assis@sadia.com.br
Silvia H. M. Pinheiro
Phone : (55 11) 2113-3197
E-mail: silvia.pinheiro@sadia.com.br
Carlos Eduardo T. Araujo
Phone : (55 11) 2113-3161
E-mail: henrique.bastos@sadia.com.br
IR Consultant
Ligia Montagnani
Phone: (55 11) 3897-6405
E-mail: ligia.montagnani@firb.com
URL: www.sadia.com
===============
C O L O M B I A
===============
TELECOM: Spain's Telefonica Finalizing Bid with ETB, EPM
--------------------------------------------------------
Spain's Telefonica (NYSE: TEF) is finalizing an official bid for
Colombia's state-run telephone company Colombia
Telecomunicaciones (Telecom), also sought by Mexican
magnate Carlos Slim.
According to AFX, Telefonica is joining forces with two
Colombian telecom companies - Empresa de Telecomunicaciones de
Bogota (ETB) and Empresas Publicas de Medellin (EPM) - in making
a bid for Telecom.
Telefonica chairman Cesar Alierta recently traveled to Colombia
to discuss a possible joint venture in the Colombian telecoms
sector through the two local telecoms companies, which are
controlled by the municipalities of Bogota and Medellin.
Already, the Colombian government has signed a memorandum of
understanding with Slim's Telmex, under which the latter would
purchase 50% plus one share of Telecom in a deal worth US$350
million.
Telmex and the Government were scheduled to confirm the MOU on
Sep. 2. But the signing has been delayed pending analysis on the
deal by Colombia's comptroller general Antonio Hernandez, who
questioned the legality of the proposal since the process to
find a partner for Telecom should have followed a public bidding
model that allowed other interested parties to participate.
=============
E C U A D O R
=============
PETROECUADOR: To Spend More Than Triple if Fuel Price Rises
-----------------------------------------------------------
Ecuador's state-owned oil company Petroecuador will spend more
than triple the amount it had planned to use importing fuel this
year if oil prices rise above around US$80 a barrel, Reuters
reports.
Instead of the expected US$489 million, Petroecuador's expense
on importing fuel will reach about US$1.54 billion.
Fuel will eat up 48% of Petroecuador's total budget this year.
The budget has been raised by US$1.05 billion to US$3.19 billion
due to higher fuel costs.
Ecuador's biggest refinery Esmeraldas lacks the capacity to
supply oil derivatives particularly fuel, forcing the country to
import. Because of this, Ecuador gains little benefit from
higher prices for its oil imports.
Minister of Economy Magdalena Barreiro said at the Ecuadorean
American Association in New York, "The equilibrium price of
revenues to losses would be $78 to $80 a barrel of oil."
Around 112,000 barrels are being exported by Ecuador a day and
25% of the revenue from the private companies that produce
around 321,000 barrels per day are received.
President Alfredo Palacio, on the other hand, would not discuss
any subsidies on fuel. He has ruled out raising fuel prices
because it would hurt the poor and let the government bear the
additional cost instead.
===============
H O N D U R A S
===============
MILLICOM INTERNATIONAL: Acquires GSM Mobile Operation in Congo
--------------------------------------------------------------
Millicom International Cellular S.A. ("Millicom") (Nasdaq:MICC)
(Stockholmsborsen and Luxembourg Stock Exchange: MIC) announced
Monday that it has completed the acquisition of Oasis, a GSM
mobile operation in the Democratic Republic of the Congo (the
"Congo"), from Orascom Telecom Holding SAE for US$35 million.
The Congo has one of the largest populations in Africa and the
acquisition of Oasis will increase Millicom's population under
coverage by over 60 million to 145 million people in seven
countries across Africa. The Congo has some two million mobile
subscribers and a penetration rate of just 3%; Oasis currently
has 77,000 subscribers.
Marc Beuls, President and Chief Executive Officer of Millicom
said, "The outlook for mobile telephony in the Congo has
improved in recent months with greater stability in the country
and an improvement in the economy. The Congo has vast natural
resources and a fast growing population and this dynamism
suggests that mobile penetration will rise quickly from its
current 3%. We have already seen the success of Millicom's low
cost operating model and mass distribution network in other
African countries which gives us confidence that we will quickly
be able to gain significant market share in the Congo."
Millicom International Cellular S.A. is a global
telecommunications investor with cellular operations in Asia,
Latin America and Africa. It currently has a total of 17
cellular operations and licenses in 16 countries. The Group's
cellular operations have a combined population under license of
approximately 391 million people.
CONTACT: Millicom International Cellular S.A.
Marc Beuls
President and Chief Executive Officer
Phone: 352 27 759 327
Andrew Best
Investor Relations
Phone: 44 20 7321 5022
URL: www.millicom.com
=============
J A M A I C A
=============
AIR JAMAICA: Making Redundancy Payments to Dismissed Employees
--------------------------------------------------------------
Air Jamaica is settling outstanding redundancy payments to
employees whose positions were made redundant earlier this year
as part of a restructuring plan, RadioJamaica.com reports.
The airline revealed $17.4 million in redundancy entitlements is
being disbursed to former pilots, flight attendants and ground
staff.
Air Jamaica is yet to recover from massive financial losses
stemming from higher security costs and a slump in passengers in
the aftermath of the Sept. 11, 2001, terror attacks in the
United States.
CONTACT: AIR JAMAICA
Corporate Communications
Tel: 876-922-3460 ext 4060-5
URL: www.airjamaica.com
DYOLL GROUP: Consider Other Options to Stay Alive
-------------------------------------------------
Dyoll Group Limited is looking to morph into a commercial real
estate development and management enterprise to stay afloat
after its general insurance subsidiary, Dyoll Insurance,
collapsed earlier this year, the Jamaica Observer reports,
citing a company official.
"We looked at possibilities that are there for us to realize
additional value for the company and for shareholders," said
Peter Lawson, acting chairman of the Dyoll Group.
"As a business, we have set certain objectives, one being to
transform Dyoll Group Limited into a pure property company,
eliminating the insurance and coffee business," Lawson added.
Up to earlier this year, Dyoll Group, a publicly listed entity,
was made up of a general insurance subsidiary (Dyoll Insurance),
a coffee producing entity (Dyoll/Wataru0, and an associate real
estate development firm (Seville Development Corporation).
Dyoll Insurance, which represented the bulk of the group's
assets, revenues, profits and capital, collapsed earlier this
year following massive claims from Caymanian victims of
Hurricane Ivan. The subsidiary was left with hundreds of
millions of dollars in asset deficiency, and is now being
liquidated.
Though Dyoll Insurance is being liquidated, Dyoll Group, which
is listed on the JSE is not, and neither are its other
subsidiaries and associate company.
Lawson and other directors believe that Dyoll Group can continue
to operate even without the insurance subsidiary. And in order
to achieve this objective, the group would first seek from the
Jamaica Stock Exchange (JSE) a reversal of the suspension of
trading in the Dyoll Group stock which was effected on February
15 this year, Lawson said.
The JSE had suspended trading in the stock after it became
evident that the insurance subsidiary was about to collapse
under the weight of the claims from clients in The Cayman
Islands.
===========
M E X I C O
===========
AOL LATIN AMERICA: Files Monthly Operating Report for July 2005
---------------------------------------------------------------
On Sept. 12, 2005, America Online Latin America, Inc., and its
debtor-affiliates, filed their monthly operating report for the
period ended July 31, 2005, with the United States Bankruptcy
Court for the District of Delaware.
For the month ending July 31, 2005, the Company's Income
Statement shows:
Net Income/
Revenue Net Loss
------- -----------
America Online Latin America, Inc. $0 ($758,853)
AOL Latin America Management, LLC $870,392 $548,121
AOL Puerto Rico Management Services, Inc. $85,327 ($194,553)
America Online Caribbean Basin, Inc. $1,165,894 $547,085
At July 31, 2005, the Company's balance sheet shows:
America Online Latin America, Inc.
__________________________________
Current Assets $20,382,246
Total Assets 705,660,001
Current Liabilities 6,259,080
Total Liabilities 166,259,080
Total Stockholders' Equity $539,400,921
AOL Latin America Management, LLC
_________________________________
Current Assets $477,281
Total Assets 1,007,753
Current Liabilities 14,183,532
Total Liabilities 14,183,532
Total Stockholders' Deficit ($13,175,779)
AOL Puerto Rico Management Services, Inc.
_________________________________________
Current Assets ($446,276)
Total Assets (288,689)
Current Liabilities 5,266,102
Total Liabilities 5,288,838
Total Stockholders' Equity Deficit ($5,577,187)
America Online Caribbean Basin, Inc.
____________________________________
Current Assets $18,567,296
Total Assets 18,583,146
Current Liabilities (181,171)
Total Liabilities (181,171)
Total Stockholders' Equity Deficit $18,764,316
A full-text copy of America Online Latin America, Inc., and its
debtor-affiliates' Monthly Operating Report for the period ended
July 31, 2005, is available at no charge at:
http://ResearchArchives.com/t/s?18d
Headquartered in Fort Lauderdale, Florida, America Online Latin
America, Inc. -- http://www.aola.com/-- offers AOL-branded
Internet service in Argentina, Brazil, Mexico, and Puerto Rico,
as well as localized content and online shopping over its
proprietary network. Principal shareholders in AOLA are
Cisneros Group, one of Latin America's largest media firms,
Brazil's Banco Itau, and Time Warner, through America Online.
The Company and its debtor-affiliates filed for chapter 11
protection on June 24, 2005 (Bankr. D. Del. Case No. 05-11778).
Pauline K. Morgan, Esq., and Edmon L. Morton, Esq., at Young
Conaway Stargatt & Taylor, LLP and Douglas P. Bartner, Esq., at
Shearman & Sterling LLP represent the Debtors in their
restructuring efforts. When the Debtors filed for protection
from their creditors, they listed total assets of $28,500,000
and total debts of $181,774,000. (Troubled Company Reporter,
Sep. 17, 2005, Vol. 9, No. 221)
ASARCO: Wants Anderson Kill to Litigate Insurance Matters
---------------------------------------------------------
Anderson Kill & Olick, L.L.P. is a global law firm with six
offices in the United States, employing around 130 lawyers.
James R. Prince, Esq., at Baker Botts LLP, in Dallas, Texas,
informs the Honorable Judge Schmidt of the U.S. Bankruptcy Court
for the Southern District of Texas that Anderson Kill has had
unparalleled success in obtaining insurance coverage for
policyholders in connection with environmental and toxic tort
liability, products liability, professional liability and
disability, and many other types of insurance. The firm's
Insurance Recovery Group has been heralded by the New York Times
as "a leader in representing big corporations and individuals
against insurance companies."
In March 2004, Anderson Kill was employed by ASARCO, LLC, to
represent the company on insurance-related matters, including a
coverage action pending in Nueces County, Texas, which was set
for trial in January 2005.
Mr. Prince relates that Anderson Kill has performed substantial
work for ASARCO in connection with that coverage dispute,
including:
-- identifying and retaining expert witnesses and responding
to discovery requests;
-- successfully opposing a motion filed by Fireman's Fund
Insurance Company for a declaration as to choice of law;
-- successfully negotiating a voluntary stay of the coverage
action so that the parties can pursue resolution of the
dispute in the context of a Section 524(g) proceeding;
-- persuading Fireman's Fund Insurance to withdraw
voluntarily a motion to compel production of settlement
agreements between ASARCO and other insurance companies;
-- assisting ASARCO in connection with settlement
negotiations with defendant Certain London Market
Companies;
-- producing substantial amounts of information to Fireman's
Fund Insurance in preparation for the initiation of
settlement discussions;
-- identifying and contacting unrepresented and inactive
London Market Company defendants to initiate settlement
discussions;
-- representing ASARCO on a contingency basis in connection
with insolvent London Market defendants; and
-- successfully recovering insurance proceeds for ASARCO
from various London Market defendants.
In light of the substantial work Anderson Kill has performed
relating to ASARCO's businesses, and the impossibility of ASARCO
obtaining alternative counsel at this late juncture, ASARCO asks
for Judge Schmidt's permission to employ Anderson Kill as its
special insurance counsel, nunc pro tunc to the Petition Date.
Within the 90-day period preceding the commencement of ASARCO's
Chapter 11 case, Anderson Kill received a $199,769 payment from
ASARCO for professional services rendered and expenses incurred
before the Petition Date. Mr. Prince notes that since March
2004, Anderson Kill has held a $100,000 retainer.
Unless otherwise ordered by the Court, Anderson Kill will
continue to maintain the retainer and will bill ASARCO for its
fees and expenses in accordance with the Bankruptcy Code, and
will file applications for compensation and reimbursement as may
be appropriate.
The firm's professionals that will primarily provide services to
ASARCO and their hourly rates are:
Rhonda D. Orin $390
Robert M. Horkovich 675
William Passannante 525
Daniel M. Healy 250
James Zeas 220
Izak Feldgreber 210
Harris Gershman 190
Brenda Bonazelli 125
In addition, Anderson Kill has a contingency arrangement with
ASARCO with regard to the firm's efforts to recover insurance
proceeds on ASARCO's behalf from London Market Companies.
Pursuant to that arrangement, Anderson Kill will also receive 5%
of the insurance proceeds that it recovers in addition to any
expenses incurred.
Rhonda D. Orin, Esq., a partner at Anderson Kill, attests that
the firm does not hold nor represent any interest adverse to
ASARCO or its estate on the matters for which Anderson Kill is
being retained as special counsel, and is a "disinterested
person" as defined in Section 101(14) of the Bankruptcy Code.
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.
Encycle/Texas, Inc. (Case No. 05-21304), Encycle, Inc., and
ASARCOConsulting, Inc. (Case No. 05-21346) also filed for
chapter 11 protection in the U.S. Bankruptcy Court for the
Southern District of Texas. ASARCO has asked that the three
subsidiary cases be jointly administered with its chapter 11
case. (ASARCO Bankruptcy News, Issue No. 5; Bankruptcy
Creditors' Service, Inc., 215/945-7000).
BALLY TOTAL: To Sell Unit to Marc Tascher for $45M
--------------------------------------------------
Bally Total Fitness (NYSE: BFT - News), the nation's leader in
health and fitness, announced Monday that it has entered into an
agreement to sell its Crunch Fitness division for $45 million in
cash to Marc Tascher, a leading entrepreneur and club industry
veteran, in partnership with the private equity group of Angelo,
Gordon & Co., an alternative asset investment management firm
with approximately $9 billion in capital under management. The
clubs being sold include all of Bally's 21 Crunch locations,
which are located in New York, Chicago, Los Angeles, Atlanta,
Miami and San Francisco, as well as Bally's 2 Gorilla Sports
clubs in San Francisco and 2 of Bally's Pinnacle Fitness clubs
in San Francisco. The transaction is subject to customary
closing conditions and is expected to close by the end of the
fourth quarter of 2005.
The Crunch and Gorilla Sports sale is one of the key steps in
management's turnaround plan for Bally Total Fitness. The plan
includes reduction of debt as well as divestiture of non-core
assets in order to focus the Company's resources on its primary
business of providing total fitness products and services to
middle market consumers on a national basis. Most of the net
proceeds of the sale will be used to reduce the $175 million
term loan component of Bally's senior secured credit facility.
"Although Crunch is a prestigious brand with great potential,
its high-end positioning is not consistent with our core
strategy, which emphasizes strategic growth of the Bally brand
and heavily focuses on the middle-market demographic," said Paul
Toback, Chairman and CEO of Bally Total Fitness. "When Bally
acquired Crunch, our company was focused on acquisitions as the
way to drive growth. While Bally added value, capital and new
clubs to Crunch during our period of ownership, Crunch now needs
a partner willing to commit growth capital to allow it to
achieve its full potential. Our capital needs to be directed
towards the Bally branded clubs and debt reduction."
"We are excited about working with the strong Crunch team of
dedicated employees to take the brand to the next level," said
Marc Tascher, who will become CEO of Crunch. "We intend to build
upon the strong foundation that is already in place, including
improved operational infrastructure, great people, dynamic
programming, superior locations and a loyal membership base."
Bally acquired 19 Crunch clubs in 2001 for approximately $20
million in cash and nearly 3 million shares of common stock.
Bally acquired Gorilla Sports as part of its acquisition of
Pinnacle Fitness in 1998.
Bally Total Fitness is the largest and only nationwide
commercial operator of fitness centers in the U.S., with
approximately four million members and nearly 440 facilities
located in 29 states, Mexico, Canada, Korea, China and the
Caribbean under the Bally Total Fitness, Crunch Fitness(SM),
Gorilla Sports(SM), Pinnacle Fitness, Bally Sports Clubs and
Sports Clubs of Canada 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, Chicago
Matt Messinger
Phone: 773-864-6850
URL: www.ballyfitness.com
BALLY TOTAL: Expects to File Financial Statements by November 30
----------------------------------------------------------------
Bally Total Fitness (NYSE: BFT - News) announced Monday that the
Company expects to complete its multi-year audit and file its
financial statements by November 30, 2005. On August 31, 2005,
the Company announced that it had received consent from
noteholders and lenders to extend the filing waivers under its
public indentures until November 30, 2005.
"We've been moving aggressively to address the issues of the
past, complete our audit and resume complete and transparent
communications with our investors," said Bally Chairman and CEO
Paul Toback. "As a result, we expect to be able to file our
financial statements by November 30, 2005. We look forward to
the opportunity to engage in a comprehensive discussion with our
all our investors about our progress and our path forward. As
our investors are well aware, we have been devoting substantial
resources over the past year to resuming a normal reporting
schedule, including scheduling an annual shareholders' meeting
at the earliest possible date that allows for a productive and
open dialogue."
Based on this filing timeframe, the Company expects to notice
and hold an annual meeting of shareholders in mid-to-late
January 2006.
Bally Total Fitness is the largest and only nationwide
commercial operator of fitness centers in the U.S., with
approximately four million members and nearly 440 facilities
located in 29 states, Mexico, Canada, Korea, China and the
Caribbean under the Bally Total Fitnessr, Crunch Fitness(SM),
Gorilla Sports(SM), Pinnacle Fitnessr, Bally Sports Clubsr and
Sports Clubs of Canadar 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
Matt Messinger
Phone: 773-864-6850
URL: www.ballyfitness.com
or
MWW Group
Carreen Winters
Phone: 201-507-9500
GRUPO IUSACELL: BONY Terminates Company's ADR Program
-----------------------------------------------------
Grupo Iusacell, S.A. de C.V., (NYSE: CEL; BMV), announced Monday
that, as previously reported, as of September 19, 2005, and per
the Company's instructions, the Bank of New York (BONY) has
terminated the Company's American Depositary Receipt (ADR)
program. As a result, the New York Stock Exchange (NYSE) will
suspend trading of the Company's ADRs on September 20, 2005. As
of this date, the Company's ADRs will no longer be traded on the
NYSE.
As previously announced, at an Extraordinary Shareholder
Meeting, on June 1, 2005, 96.7% of Iusacell shareholders
approved termination of the ADR program after an analysis and
discussion of the costs and benefits of a continued listing on a
U.S. national securities exchange.
As previously explained, ADR holders will have 60 days beginning
September 20, 2005, to exchange their ADRs for shares traded on
the Mexican Stock Exchange (BMV). After the 60 day period, BONY
will be able to sell shares corresponding to the ADRs that have
not been exchanged and distribute the proceeds of such sale to
holders of the remaining ADRs.
Grupo Iusacell, S.A. de C.V. (Iusacell, NYSE and BMV: CEL) is a
wireless cellular and PCS service provider in Mexico with a
national footprint. Independent of the negotiations towards the
restructuring of its debt, Iusacell reinforces its commitment
with customers, employees and suppliers and guarantees the
highest quality standards in its daily operations offering more
and better voice communication and data services through state-
of-the-art technology, such as its new 3G network, throughout
all of the regions in which it operate.
CONTACT: Grupo Iusacell, S.A. de C.V.
Jose Luis Riera K.
Chief Financial Officer
Phone: 011-5255-5109-5927
or
J.Victor Ferrer,
Finance Manager
Phone: 011-5255-5109-5273
E-mail: vferrer@iusacell.com.mx
URL: http://www.iusacell.com
=====================
P U E R T O R I C O
=====================
CENTENNIAL COMMUNICATIONS: Hires Financial Advisors
---------------------------------------------------
Centennial Communications Corp. (NASDAQ: CYCL) announced Monday
that it has engaged Lehman Brothers and Evercore Partners as
financial advisors to assist it in evaluating a range of
possible strategic and financial alternatives. There can be no
assurance that the Company will undertake any particular action
as a result of such evaluation.
Centennial Communications (NASDAQ: CYCL), based in Wall, NJ, is
a leading provider of regional wireless and integrated
communications services in the United States and the Caribbean
with approximately 1.2 million wireless subscribers and 300,000
access line equivalents. The U.S. business owns and operates
wireless networks in the Midwest and Southeast covering parts of
six states. Centennial's Caribbean business owns and operates
wireless networks in Puerto Rico, the Dominican Republic and the
U.S. Virgin Islands and provides facilities-based integrated
voice, data and Internet solutions. Welsh, Carson, Anderson &
Stowe and an affiliate of the Blackstone Group are controlling
shareholders of Centennial.
CONTACT: Centennial Communications Corp.
Steve E. Kunszabo
Director, Investor Relations
Phone: 732-556-2220
URL: http://www.centennialwireless.com
http://www.centennialpr.com/
http://www.centennialrd.com/
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V E N E Z U E L A
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PDVSA: To Sign JV Deal With Petrobras in January 2006
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Venezuela's state oil company PDVSA and Brazil's Petrobras will
sign an agreement in January 2006 to build a refinery in
northeast Brazil, according to an article published in
LatinPetroleum.com
In February, both companies signed a memorandum of understanding
to complete feasibility studies for the construction of the
joint refinery, which will process heavy crude from a planned
bilateral production association in Venezuela's Orinoco oil
belt.
Brazil's northeast state of Pernambuco is seen as the likely
site for the plant, which will have a capacity of up to 200,000
barrels per day (bpd).
The Pernambuco refinery plan forms part of Venezuela's efforts
to develop strategic energy alliances in Latin America and the
Caribbean.
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
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Sheryl Joy P. Olano, Editors.
Copyright 2005. All rights reserved. ISSN 1529-2746.
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