/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/050923.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, September 23, 2005, Vol. 6, Issue 189 Headlines A R G E N T I N A AGUAS ARGENTINAS: Minister Wants Suez to Find New Operator AGUAS PROVINCIALES: Suez Back in Talks with Emgasud ALEJANDRO Y WALTER: Initiates Bankruptcy Proceedings ARTE GRAFICO COMAHUE: Trustee to Present General Report in Court BUENOS AIRES COMMERCIAL: Deadline for General Report Approaches DICRIS S.R.L.: Court Awaits General Report LA ROSA AZUL: Business Records to be Presented in Court NOVA GARDENA: Submitting General Report on Sept. 26 PAPELES UNIVERSALES: Court Converts Bankruptcy to Reorganization TRANSENER: Petrobras Seen Selling Stake to Eletrobras PROPLASTIC S.R.L.: Gets Court Approval for Reorganization VALEANT PHARMACEUTICALS: Argentine Unit Faces Antitrust Probe VINTAGE PETROLEUM: Increases Capital Budget by 14% B E R M U D A FOSTER WHEELER: Class A and Class B Warrants Become Exercisable LOM HOLDINGS: Buys Back Own Shares B O L I V I A EMSA: Implements Recovery Plan Despite Staff Resistance B R A Z I L BANCO SANTOS: Local Court Rules Liquidation BANCO SANTOS: E-Financial to go Under the Hammer BRASKEM S.A.: Shareholders to Elect Board Members VARIG: Local Businessman Eyeing Control of Airline M E X I C O ALFA: To Seek Approval to Distribute Cash Via Capital Reduction AOL LATIN AMERICA: Seeks 90-Day Extension to Ch 11 Plan Filing AVIA DE MEXICO: Court OKs Marvin Mohney as Lead Counsel SATMEX: Tomas Heather Named Case Supervisor P U E R T O R I C O CENTENNIAL COMMUNICATIONS: Slams Notion About Unit's Sale V E N E Z U E L A ALIMENTOS POLAR: Regains Control of Silos PDVSA: Ceases Oil Shipments to Dominican Republic SIDOR: Workers Stage Protests on Alleged Nonpayment of Dividends - - - - - - - - ================= A R G E N T I N A ================= AGUAS ARGENTINAS: Minister Wants Suez to Find New Operator ---------------------------------------------------------- Planning Minister Julio De Vido said Wednesday that French group Suez must be the one to find a new operator for Argentine water company Aguas Argentinas. The French company, which signed a 30-year contract to run Buenos Aires' waterworks and sewage system in 1993, said earlier this month that it is leaving the concession after the collapse of contract negotiations with the government. The local unit's board of directors affirmed this decision on Monday, taking the formal contract rescission process a step further. When asked which groups might take Suez's place at the helm of the water concession, De Vido said that question should be directed to the French company. "This is a job that the Suez group will have to do," De Vido said. "My interest is their compliance with their current contract...my job today is exclusively that." Lately however, government officials have been acknowledging more openly that the state will have to run Aguas Argentinas, at least for the time being. Cabinet Chief Alberto Fernandez said Tuesday that "the state has to assume the role of operator in some cases and it's nothing to be ashamed of." Fernandez emphasized that state control of Aguas Argentinas would be temporary, with the government acting as an interim operator while the service is re-privatized. AGUAS PROVINCIALES: Suez Back in Talks with Emgasud --------------------------------------------------- French firm Suez and gas distribution company Emgasud have returned to the negotiating table to discuss the transfer of Suez's 77.5% stake in Aguas Provinciales de Santa Fe. This time, Emgasud has reached an agreement to include local company Ceramicas Alberdi and Banco de Galicia into the buying group. Ceramicas Alberdi and Banco de Galicia may acquire a majority stake in Fides Group, the Emgasud-controlled company that agreed to the purchase of Suez's shares in Aguas Provinciales de Santa Fe. Previously, Emgasud reached a deal to buy 77.5% of the concessionaire from Suez but the deal fell through after the provincial government executed the concession contract guarantees. Should the new deal be a success, the local government will return the guarantee to the new concessionaire in exchange for Suez dropping its complaint to the International Center for Settlement of Investment Disputes and remaining to operate the firm for a year. Suez earlier said it will be moving out of Santa Fe on November 25. ALEJANDRO Y WALTER: Initiates Bankruptcy Proceedings ---------------------------------------------------- Mendoza's civil and commercial Court No. 3 declared Alejandro y Walter Sanchez S.R.L. "Quiebra," reports Infobae. The bankruptcy case will close with the liquidation of the Company's assets to repay creditors. Court-appointed trustee, Mr. Daniel Leonardo Martinez, will verify creditors' claims. Mr. Martinez will prepare the individual reports based on the results of the verification process and the general report on the case. The deadline for the verification of claims as well as the dates for the submission of the reports are yet to be disclosed. CONTACT: Alejandro y Walter Sanchez S.R.L. Mathus Hoyos 1905 Bermejo Guaymallen (Mendoza) Mr. Daniel Leonardo Martinez, Trustee Garibaldi 239 Ciudad de Mendoza (Mendoza) ARTE GRAFICO COMAHUE: Trustee to Present General Report in Court ---------------------------------------------------------------- Court-appointed trustee Amalia Victoria Beckerman will present a general report on the Arte Grafico Comahue S.R.L. bankruptcy on Monday, Sep. 26, 2005. The presentation followed the submission of the individual reports on Aug. 12, 2005. The individual reports contained creditors' claims, which were verified until June 16, 2005. Arte Grafico Comahue S.R.L. started to wind-up its operations after Court No. 14 of Buenos Aires' civil and commercial tribunal declared the Company bankrupt. Clerk No. 27 assists the court on this case that will end with the sale of the company's assets. Proceeds from the sale will be used to repay the Company's debts. CONTACT: Ms. Amalia Victoria Beckerman, Trustee Paraguay 1591 Buenos Aires BUENOS AIRES COMMERCIAL: Deadline for General Report Approaches --------------------------------------------------------------- The deadline for the submission of the general report on the Buenos Aires Commercial Group S.A. bankruptcy case will be on Monday, Sep. 26, 2005. Court No. 10 of the city's civil and commercial tribunal declared the Company bankrupt and appointed Mr. Fernando Luis Greco as trustee. Mr. Greco reviewed creditors' proofs of claim until June 20, 2005. The verified claims served as basis for the individual reports to be presented for court approval on Aug. 15, 2005. Clerk No. 19 assists the court on this case that will end with the sale of the Company's assets. Proceeds from the sale will be used to repay the Company's debts. CONTACT: Mr. Fernando Luis Greco, Trustee Arenales 2365 Buenos Aires DICRIS S.R.L.: Court Awaits General Report ------------------------------------------ Mr. Estevez Indurain Vazquez, the trustee appointed by the court for the Dicris S.R.L. bankruptcy, will submit the general report on Monday, Sep. 26, 2005. Mr. Vazquez verified the authenticity of claims presented by the Company's creditors until June 14, 2005. Following claims verification, the trustee submitted the individual reports based on the forwarded Claims for final approval by the court on Aug. 12, 2005. Court No. 25 of Buenos Aires' civil and commercial tribunal declared Dicris S.R.L. bankrupt after the Company defaulted on its debt payments. Clerk No. 50 assists the court on this case. CONTACT: Mr. Estevez Indurain Vazquez, Trustee Uruguay 750 Buenos Aires LA ROSA AZUL: Business Records to be Presented in Court ------------------------------------------------------- The business records of Buenos-Aires based La Rosa Azul S.A. will be presented in court as general report on Monday, Sep. 26, 2005. The Company began liquidating its assets following the bankruptcy pronouncement issued by Court No. 10 of the city's civil and commercial tribunal. The court appointed Mr. Miguel Adolfo Kupchik as trustee. Mr. Kupchik verified creditors' proofs of claim until June 16, 2005. The validated claims were presented in court as individual reports on Aug. 12, 2005. The bankruptcy process will end with the disposal company assets in favor of its creditors. CONTACT: Mr. Miguel Adolfo Kupchik, Trustee Alsina 1360 Buenos Aires NOVA GARDENA: Submitting General Report on Sept. 26 --------------------------------------------------- The general report on the liquidation of Buenos Aires-based company Nova Gardena S.R.L. will be submitted on Monday, Sep. 26, 2005. On June 16, 2005, court-appointed receiver Ruben Daniel Sarafian stopped accepting claims from the Company's creditors. The verified claims served as basis for the individual reports, which the receiver will submit on Aug. 12, 2005. Nova Gardena S.R.L. began liquidating its assets following the bankruptcy pronouncement issued by Court No. 20 of the city's civil and commercial tribunal. The bankruptcy process will end with the disposal company assets in favor of its creditors. CONTACT: Mr. Ruben Daniel Sarafian, Trustee Tucuman 1657 Buenos Aires PAPELES UNIVERSALES: Court Converts Bankruptcy to Reorganization ---------------------------------------------------------------- Papeles Universales S.A. will proceed with reorganization after a Buenos Aires Court converted the Company's ongoing bankruptcy case into a "concurso preventivo", states Infobae. Under Insolvency protection, the Company will be able to draft a proposal designed to settle its debts with creditors. The reorganization also prevents an outright liquidation. Mr. Ruben Hugo Faure, the court-appointed trustee, will verify creditors' proofs of claim until Oct. 28, 2005. Creditors with unverified claims cannot participate in the Company's settlement plan. Out of the verified claims, Mr. Faure will prepare the individual reports and submit them in court on Dec. 12, 2005. The presentation of the general report on the Company's case will follow on Feb. 22, 2006. An informative assembly, the last phase of the reorganization, is set for June 16, 2006. CONTACT: Mr. Ruben Hugo Faure, Trustee Avda. Rivadavia 1227 Buenos Aires TRANSENER: Petrobras Seen Selling Stake to Eletrobras ----------------------------------------------------- Mr. Ildo Sauer, the power and gas director at Brazil's federal energy company Petrobras, said the Company is likely to sell control of its Argentine power transmission company Transener to Brazil's federal power holding company Eletrobras. Sauer's statement, according to Business News Americas, came on the heels of a five-year cooperation agreement between Petrobras and Eletrobras that foresees the development of joint power generation projects in Brazil and abroad. Eletrobras CEO Alonsio Vasconcelos has said the company plans to expand operations abroad after the federal government changes federal legislation to authorize such expansion. Petrobras Energia Participaciones, the local unit of Brazil's Petrobras, currently owns 50% of Citilec, which in turn has a 65% stake in Transener. Petrobras must sell the stake by March 31, 2006 to comply with the conditions set by the Argentine regulators when they approved Petrobras' takeover of the local energy company, then known as Perez Companc. The Argentine government had voiced concerns over a strategic asset such as Transener, the country's largest power transporter, falling into foreign hands. Petrobras is reportedly seeking US$40 million for the stake and has already turned down a US$16 million offer from Dolphin to buy its 50% stake while also assuming all debt. PROPLASTIC S.R.L.: Gets Court Approval for Reorganization --------------------------------------------------------- Proplastic S.R.L. will begin reorganization following the approval of its petition by Court No. 7 of Buenos Aires' civil and commercial tribunal. The opening of the reorganization will allow the Company to negotiate a settlement with its creditors in order to avoid a straight liquidation. Ms. Sara Maria Rey de Lavolpe will oversee the reorganization proceedings as the court-appointed trustee. She will verify creditors' claims until Nov. 17, 2005. The validated claims will be presented in court as individual reports on Feb. 3, 2006. Ms. 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 March 17, 2006. An Informative Assembly, the final stage of a reorganization where the settlement proposal is presented to the Company's creditors for approval, is yet to be scheduled. Clerk No. 14 assists the court on this case. CONTACT: Ms. Sara Maria Rey de Lavolpe, Trustee Cerrito 1136 Buenos Aires VALEANT PHARMACEUTICALS: Argentine Unit Faces Antitrust Probe ------------------------------------------------------------- Valeant Pharmaceuticals, Inc.'s Argentine subsidiary faces allegations by the Argentine Antitrust Agency that it abused a dominant market position in 1999 by increasing its price on Mestinon in Argentina and not supplying the market for approximately two months. The agency informed the company of the charges in June 2004. The subsidiary filed documents with the agency offering an explanation justifying its actions, but the agency has now rejected the explanation. The agency is collecting evidence prior to issuing a new decision. Argentinean law permits a fine to be levied of up to $5,000,000 plus 20% of profits realized due to the alleged wrongful conduct. Counsel in the matter advises that the size of the transactions alleged to have violated the law will unlikely draw the maximum penalty. (Class Action Reporter, Thursday, Sep. 22, 2005. Issue 188) VINTAGE PETROLEUM: Increases Capital Budget by 14% -------------------------------------------------- Tulsa-based Vintage Petroleum has increased its capital budget to US$285 million, 14% higher than the US$250 million reported earlier, according to Tribune Business News. The Company said the increase is primarily geared toward development drilling programs in the United States and Yemen. Last month, the Company reported that it would raise its capital budget and production targets in 2005 due to increased prices for oil and gas and the Company's drilling success in the United States, Argentina and Yemen. Producing properties acquired last December along the Gulf Coast in Alabama and the successful exploitation in 2005 gave a strong boost in the Company's domestic oil production in the second quarter. Output is up 13% from last year. Oil production in Argentina also rose 24% compared to the same period in 2004 due to drilling, work over programs and last year's acquisition of properties in the San Jorge basin, Vintage said. Total gas production, however, dropped 4% in the second quarter compared to the same period a year ago due, in part, to heavy rains and mud slides in California earlier this year. Vintage expects to spend about US$8.2 million this year fixing the damaged properties. Despite the added expenses, Vintage's second quarter net income escalated to US$57.7 million, a 54% boost from the reported US$37.4 million in the same time last year. The Company posted a US$332.5 million net income in 2004 after reporting losses for two years. The Company will also spend more in export taxes in Argentina, which rose to US$16.3 million this year from US$6.7 million in 2004. CONTACT: Vintage Petroleum Inc. 10 W. Seventh St. Tulsa Oklahoma 74119-1029 Phone: (918) 592-0101 URL: http://vintagepetroleum.com ============= B E R M U D A ============= FOSTER WHEELER: Class A and Class B Warrants Become Exercisable --------------------------------------------------------------- Foster Wheeler Ltd.'s (Nasdaq: FWLT) Class A and Class B Common Stock Purchase Warrants become exercisable beginning September 24, 2005. The Common Stock Purchase Warrants trade under the symbols FWLTW and FWLTZ, respectively. As of September 21, 2005, 4,152,914 of the Company's Class A Common Stock Purchase Warrants and 40,771,560 of its Class B Common Stock Purchase Warrants were outstanding. The outstanding Class A Warrants are exercisable for 1.6841 Common Shares per Warrant and expire on September 24, 2009. The Class B Warrants are exercisable for 0.0723 Common Shares per Warrant and expire on September 24, 2007. Both the Class A and Class B Warrants are exercisable at $9.378 per Common Share issuable. Full exercise of the Warrants would result in cash proceeds to the Company of approximately $93.2 million, although there can be no assurance regarding the amount or timing of exercise of the Warrants. Foster Wheeler Ltd. is a global company offering, through its subsidiaries, a broad range of design, engineering, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemicals, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA. CONTACT: Foster Wheeler Ltd. Media Maureen Bingert Phone: 908-730-4444 or Investors John Doyle Phone: 908-730-4270 or Other Inquiries Phone: 908-730-4000 URL: http://www.fwc.com Warrant Agent Mellon Investor Services LLC Phone: 800-777-3674 LOM HOLDINGS: Buys Back Own Shares ---------------------------------- LOM (Holdings) Limited (LOM) informed the Bermuda Stock Exchange (BSX) Wednesday that the Company repurchased the following shares, which have subsequently been cancelled: - 50 shares on 3rd August 2005 at $2.80 per share; and - 200 shares on 13th September 2005 at $2.90 per share CONTACT: Bermuda Stock Exchange (BSX) Joanne DeRoza Tel: 1-441-292-7212 E-mail: jderoza@bsx.com LOM Group The LOM Building 27 Reid Street Hamilton HM 11 Bermuda Tel: 441 292 5000 Fax: 441 295 3343 E-mail: info@lom.com LOM Asset Management Limited Tel: 441 296 5802 Fax: 441 296 5597 E-mail: lomam@lom.com LOM Securities (Bahamas) Limited Millennium House P.O. F42498-350 Freeport, Grand Bahama Bahamas Tel: 242 351 5000 Fax: 242 351 7738 E-mail: info.bahamas@lom.com ============= B O L I V I A ============= EMSA: Implements Recovery Plan Despite Staff Resistance ------------------------------------------------------- Public sanitation company Emsa, despite strong resistance from staff, went ahead with the implementation of its revised restructuring plan in order to avoid a threatening bankruptcy, reports Business News Americas. Under the new plan, the Company will take on subcontractors to take over waste collection services over an extended area, thus increasing revenues while cutting collection costs. Moreover, the Company, with the backing of community and business groups, will introduce a public education program to encourage recycling via initial separation of domestic waste, said Emsa's general manager Edwin Pierola. "All of these measures are for the company's economic recovery, and to improve service to all those that pay for cleaning services," according to a statement to be sent to residents. Emsa staff has refused to cooperate with the Company on the plan on fear that it may lead to layoffs and wage cuts. Cochabamba city mayor Gonzalo Terceros has threatened to use his powers to intervene in the Company if a solution is not found. EMSA was set up by the municipality in 1997 to provide waste collection and street cleaning services in the central city of Cochabamba. But, due to liquidity woes, EMSA's manager Gonzalo Romero asked the municipality last year to close it down. Mayor Terceros was planning to set up an interim company to carry on operations for three months until a new operator could be found to replace Emsa, but he has not been able to garner enough support from city councilors to wind up the Company. Some city councilors are insisting that all workers must have their layoff compensation paid in full before they will allow the closure of the Company. =========== B R A Z I L =========== BANCO SANTOS: Local Court Rules Liquidation ------------------------------------------- A local court has ordered the liquidation of Brazil's Banco Santos, which was controlled by Brazilian businessman Edemar Cid Ferreira, reveals Dow Jones Newswires. Judge Caio Marcelo Oliveira ordered the liquidation in light of the bank's negligent administration, often engaging in illegal practices. The Brazilian Central Bank intervened in Banco Santos and its brokerage in November last year due to financial woes and alleged irregularities. In June, the central bank-appointed manager of the bank, Vanio Aguiar, officially sought the bank's liquidation. Local press reports suggest the most creditors can expect from the liquidation is about 10% of their outstanding credits. Banco Santos is a wholesale bank that was geared mainly towards corporate banking and chiefly focused on the medium-sized enterprise segment. Santos was ranked as Brazil's 21st largest bank in January in terms of assets. BANCO SANTOS: E-Financial to go Under the Hammer ------------------------------------------------ Banco Santos' technology unit, e-Financial, is heading for the auction block, according to Business News Americas. The unit will be auctioned for a minimum of BRL3 million. A prospectus on e-Financial will be available in about two weeks, with bids from interested parties expected shortly afterwards. At least six companies have expressed interest in e-Financial, revealed Vanio Aguiar, responsible for the auction process. "The decision [for the sale] will be made between October 20 and 30, in a worst case scenario," Aguiar said. Sao Paulo-based Banco Santos invested approximately BRL10 million in four years to build e-Financial, according to a former executive of the bank. E-Financial previously had 160 employees, 250 clients and revenues of US$9 million before the collapse of Banco Santos. In recent months, e-Financial has lost clients with its owner being in financial crisis. E-Financial would not disclose its revenues, but the number of clients has fallen to 36 and employees to 35. BRASKEM S.A.: Shareholders to Elect Board Members ------------------------------------------------- The Shareholders of BRASKEM S.A. will meet at the Extraordinary General Meeting on October 3, 2005 at 10:30 p.m. at the headquarters of the Company, at Rua Eteno, n o 1.561, Polo Petroquimico, Municipio de Camacari, Estado da Bahia to elect Members of the Board of Directors due to resignations presented. Pursuant to the Rules of Health, Safety and Environment (SSMA) in force at the headquarters of the Company, which establishes the guidelines to the access control and circulation of persons and cars in the internal and external areas of the headquarters, all the Shareholders, as well as to its representatives are to be present for the Meeting at least 30 minutes in advance, in order to assure the compliance with the basic instructions training procedures of SSMA in force in the Company, which are available for consult at the headquarters of the Company. CONTACT: BAK - Braskem S.A. Rua Eteno, 1561 Polo Petroquimico de Camacari Camacari Bahia CEP 42810-000 Brazil URL: http://www.braskem.com.br Phone: (55 11) 3443 9529 VARIG: Local Businessman Eyeing Control of Airline -------------------------------------------------- A local businessman submitted a proposal to the Brazilian court, stating its interest in assuming a controlling stake in the ailing flagship airline Viacao Aerea Riograndense SA (Varig). Dow Jones Newswires reveals, that the businessman in question, Nelson Tanure, is proposing to assume control of Varig for a total of US$202 million in two tranches. In the first tranche, Tanure would invest US$100 million to acquire 25% of shares currently held by the Ruben Berta Foundation, which controls 87% of Varig's shares. In the second tranche, the businessman would make a US$12- million payment in exchange for the right to name members of the board of directors of the Company for a period of 10 years. During this period, Tanure would invest an additional US$90 million to acquire more shares. Varig 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. Earlier this month, the airline, which has total debts of BRL7.7 billion, presented a business plan to a Rio de Janeiro bankruptcy judge designed to reorganize the Company and attract new investors. =========== M E X I C O =========== ALFA: To Seek Approval to Distribute Cash Via Capital Reduction --------------------------------------------------------------- ALFA, S.A. de C.V. (ALFA) announced Wednesday that its Board of Directors will call for a Shareholders' Meeting to be held on October 14, 2005, to approve a distribution in cash of US$0.25 per ALFA share, totaling US $ 150 million through a reduction in ALFA's equity capital. Additionally, the board resolved to allow management to undertake an orderly share repurchase program of ALFA shares for up to US $ 100 million. Mr. Dionisio Garza, ALFA's Chairman of the Board and Chief Executive Officer explained: "ALFA's management believes that these resolutions maximize long term shareholder value, by providing the necessary financial flexibility to pursue attractive investment opportunities while returning capital to shareholders today." ALFA is currently evaluating several promising investment projects, which, if undertaken, will generate a significant increase in its EBITDA and strengthen its competitive position in its core businesses. Alfa will continue to evaluate its options to maximize shareholders' value, including capital investments, acquisitions as well as cash distributions to its shareholders through both dividends and share repurchases. ALFA is a Mexican company consisting of four business groups: Alpek, dedicated to the production of petrochemicals; Sigma, a producer of refrigerated foods; Nemak, involved in high-tech aluminum cylinder heads; and Onexa, a company that provides telecom services in the Mexican market. ALFA is the world's largest producer of aluminum cylinder heads, the world's second largest producer of PTA and the leader in Mexico 's refrigerated foods industry. ALFA has production facilities in Mexico, the United States, Canada, Germany, Slovakia, the Czech Republic, the Dominican Republic, Costa Rica and El Salvador. Its products are marketed in more than 45 countries. In 2004, ALFA reported sales of US$ 5,069 million and employed more than 34,000 people. CONTACT: ALFA Enrique Flores Vice-president, Corporate Communications Phone (011-52-81) 8748 1207 E-mail: eflores@alfa.com.mx Tel: 52 81 8748 1207 AOL LATIN AMERICA: Seeks 90-Day Extension to Ch 11 Plan Filing -------------------------------------------------------------- America Online Latin America Inc. (AOLA) is seeking a 90-day extension to the exclusive period during which it can file a Chapter 11 plan, reports Dow Jones Newswires. Under the current timetable, AOL Latin America's exclusive right to file a plan and exclusive right to solicit plan votes expire on Oct. 24 and Dec. 21 respectively. In a court filing Monday, the Company said it is seeking to extend its exclusive plan filing period to Jan. 23, 2006 and vote solicitation period to March 21, 2006. The Company's principal shareholders, Time Warner Inc. (TWX) and the Cisneros Group of Cos., on May 25 agreed to support a liquidation plan for the Company, provided that such plan is filed by Sept. 30 and confirmed by Jan. 31, 2006. But according to Monday's filing, the principal shareholders have agreed to extend these deadlines. While it expects to file a plan and corresponding disclosure statement "as soon as possible," AOL Latin America said it still is soliciting offers for the assets of its non-debtor units in Brazil, Argentina, Spain and Mexico. As justification for the requested extension, the Company noted the multi-jurisdictional nature of its business and said that there are a number of complex tax considerations that must be considered in formatting a tax-efficient post-reorganizational structure. Loss of exclusivity at this "crucial juncture" in the bankruptcy case would open the door for others to propose a plan, creating a chaotic environment that would threaten wind-down efforts, AOL Latin America said in the court filing. Judge Mary F. Walrath of the U.S. Bankruptcy Court in Wilmington, Del., will hold an Oct. 5 hearing on the exclusivity extension request. Objections are due Sept. 28. AOL Latin America filed for Chapter 11 protection June 24, listing assets of US$28.5 million and debts of US$181.8 million. AVIA DE MEXICO: Court OKs Marvin Mohney as Lead Counsel ------------------------------------------------------- The Honorable Barbara J. Houser of the U.S. Bankruptcy Court for the Northern District of Texas gave Avia Energy Development, LLC, and Avia de Mexico S. de R.l. de CV permission to employ Marvin R. Mohney, Esq., of Dallas, Texas, as their general bankruptcy counsel. As previously reported in the Troubled Company Reporter on Aug. 22, 2005, Mr. Mohney will bill the Debtors $225 per hour for his professional services. Headquartered in Dallas, Texas, Avia Energy Development, LLC, and Avia de Mexico S. de R.l. de CV filed for chapter 11 protection on August 18, 2005 (Bankr. N.D. Tex. Case No. 05- 39339). Kimberly A. Elkjer, Esq., Scheef & Stone, LLP, and Marvin R. Mohney, Esq., in Dallas, Texas, represent the Debtors. When the Debtors filed for protection from their creditors, they listed $2,298,509 in consolidated assets and $11,768,065 in consolidated debts. (Troubled Company Reporter, Sep. 22, 2005, Vol. 9, No. 225) SATMEX: Tomas Heather Named Case Supervisor ------------------------------------------- Transport and communications ministry SCT has chosen Tomas Heather of White & Case law firm as case supervisor for the bankruptcy of satellite provider Satmex, according to Business News Americas. In the next two weeks, Heather, who competed with four other people for the position, will be drawing up a list of all Satmex's creditors. Satmex began bankruptcy proceedings under Mexican law, known as concurso mercantil, on September 9. The concurso mercantil will serve as a forum for restructuring the Company's financial situation by securing new shareholders, performing a capital increase and launching a new satellite - Satmex 6 - by June 30, 2006. Satmex has reportedly defaulted on US$523 million of debt since 2003. As of May 31, 2005, the Company has US$900 million in total assets and US$688 million in total debts. ===================== P U E R T O R I C O ===================== CENTENNIAL COMMUNICATIONS: Slams Notion About Unit's Sale --------------------------------------------------------- Centennial Communications Corp. (NASDAQ: CYCL), a leading provider of regional wireless and integrated communications services in the United States and the Caribbean, rejected conjectures that its Puerto Rican unit is up for sale, reports Business News Americas. Centennial's investor relations director Steve Kunszabo confirmed the Company has contracted investment bank Lehman Brothers and Evercore Partners to evaluate the strategic value of its Puerto Rican operations. But "we could end this process and decide not to sell anything and remain as we are," Kunszabo said. Meanwhile, industry sources say that when these types of consultants are contracted it is because there is a company interested in buying. Besides, in an interview with El Nuevo Dia in March, Centennial's CEO Michael Small did not rule out the possibility Centennial would sell its Caribbean unit for the right price. 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/ ================= V E N E Z U E L A ================= ALIMENTOS POLAR: Regains Control of Silos ----------------------------------------- The government decided to return control of grain storage silos to Alimentos Polar, the largest food company in Venezuela, reports Dow Jones Newswires. As such, operations in the storage facilities will resume and workers will finally return to their jobs. The storage rooms were taken over by a military contingent and officials from the ministry of agriculture three weeks ago on belief that the facilities were not being unused. No legal proceeding was pending prior to the takeover, and lawmakers had not declared those assets "of public interest," a step the government has taken in the past before seizing company assets. It is not known why the government decided to return control of the assets to Polar but both parties were reportedly in talks to reach some agreement. PDVSA: Ceases Oil Shipments to Dominican Republic ------------------------------------------------- Venezuela state oil firm Petroleos de Venezuela (PDVSA) halted shipments to the Dominican Republic for alleged lack of byproducts, El Universal reports. As a result, Dominican Oil Refinery (Refidomsa) rationed sale of gasoline and standard diesel. The Dominican National Energy Commission met with President Leonel Fernandez on Monday to implement measures to save fuel. They resolved that gas stations work until noon to prevent long- term lack of sales. Dominican Republic is one of the nine nations that signed earlier this month individual supply agreements within the framework of Petrocaribe. The instrument provides for the delivery of 50,000 b/d of oil and byproducts under preferential conditions including a term of 90 days to pay a portion of the invoice and the remainder within a term of 25 years. Another meeting was set to assess the implementation of the Petrocaribe accord over the next few days. SIDOR: Workers Stage Protests on Alleged Nonpayment of Dividends ---------------------------------------------------------------- Workers at steelmaker Sidor have staged protests, blocking the streets in Ciudad Guayana, due to the Company's alleged failure to pay dividends. Business News Americas suggests that the workers were upset over the government's reported failure to pay dividends to workers who are holders of class B shares. Sidor has paid out US$57 million in second quarter 2005 dividends to state heavy industry holding company CVG, which workers believe must in turn pay dividends to class B shareholders. CVG and Sidor shareholders reached agreements in May 2005 whereby CVG recognized the rights of series B shareholders to a US$94 million dividend payment. Sidor is 60%-owned by the Amazonia consortium made up of Mexico's Hylsamex, the Techint group, Brazil's Usiminas and Venezuela's Sivensa. The Company's plants are in Puerto Ordaz in southeastern Venezuela's Bolivar state. *********** 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. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *