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/raid1/www/Hosts/bankrupt/TCRLA_Public/060209.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 Thursday, February 9, 2006, Vol. 7, Issue 29 Headlines A R G E N T I N A ALL BAG: Creditors Must Present Claims to Trustee by April 18 COMPANIA INDUSTRIAL: Claims Verification to End on May 15 DIAL THRU: Creditors Must Present Claims by April 5 DIRECTV GROUP: Elects Nancy Newcomb to Board of Directors GER S.A.: Trustee to Authenticate Creditors Claims until May 11 PARMALAT: Can Pursue BofA Legal Suit, Judge Kaplan Says ROLE PLAY: Creditors' Claims to be Validated until March 31 SUITI S.A.: Claims Verification to End on April 7 B E R M U D A FOSTER WHEELER: Subsidiary Enters Purchase Agreement INTELSAT: Appoints D. Sinkfield as Senior VP of Intelsat Global INTELSAT: Kevin Mulloy Resigns as IGSC Chairman & President B R A Z I L AOL LATIN: Will Stop Operating in Brazil on March 17 BANCO BRADESCO: Inks Retail Partnership with Lojas Esplanada BRASKEM: Launching US$149 Mil. Cargo Transportation Contracts GLOBO COMUNICACAO: Moody's Withdraws B1 Foreign Currency Rating PARMALAT BRASIL: Court Approves Plan of Reorganization C A Y M A N I S L A N D S 57TH STREET: Liquidators to Cease Claims Verification CCAVI: Claims to be Verified by Liquidators COMMERCIAL PLAZA: Claims to be Accepted until February 24 MAIDSTONE LIMITED: Verification of Proofs of Ends on February 24 MILLENNIUM CAPITAL: Liquidators to Cease Verifying Claims C H I L E CELLSTAR CORPORATION: Hosts 4Q Earnings Release, Conference Call C U B A * CUBA: Tries to Win Over U.S. Oil Firms E L S A L V A D O R INVERSIONES FINANCIERAS: Banistmo Buys 53.6% Stake for US$131MM J A M A I C A KAISER ALUMINUM: Bankruptcy Court Confirms Chapter 11 Plan KAISER ALUMINUM: Extends Chief Restructuring Officer's Term M E X I C O HIPOTECARIA MEXICO: Missed Payment Cues S&P to Cut Rating to D VITRO: Closes US$75 Mil. Secured Short Term Notes Issued by VENA P A N A M A GRUPO BANISTMO: Acquires 53.6% Stake of Bancosal for US$131 Mil. P A R A G U A Y * PARAGUAY: IMF Completes 6th Review of Stand-By Arrangement * PARAGUAY: U.S. Wants Free Trade Accord with Mercosur P U E R T O R I C O MUSICLAND HOLDING: Wants to Dispose of 61 Media Play Leases T R I N I D A D & T O B A G O * Trinidad & Tobago: Deltana Field Talks with Venezuela Stalled U R U G U A Y COFAC: In Talks with Bandes for US$18 Million Financing Deal V E N E Z U E L A * Venezuela: Talks with Trinidad Over Natural Gas Field Stalled - - - - - - - - ================= A R G E N T I N A ================= ALL BAG: Creditors Must Present Claims to Trustee by April 18 ------------------------------------------------------------- Bankrupt company All Bag s S.R.L.'s creditors are given until April 18, 2006, to send their claims to Ms. Beatriz Dominguez, the company's trustee. Infobae reports that Ms. Dominguez will prepare individual reports out of the validated claims and submit them on June 1, 2006. The trustee will also prepare a general report on the case and present it in court on July 14, 2006. All Bag S.R.L. was declared bankrupt by a Buenos Aires court after it defaulted on its debt payments. Ms. Beatriz Dominguez, the trustee, can be reached at: Avda. Rivadavia 2151 Buenos Aires COMPANIA INDUSTRIAL: Claims Verification to End on May 15 --------------------------------------------------------- The verification of claims of creditors of Compania Industrial de Alimentos S.A., a Buenos Aires-based bankrupt company, will end on May 15, 2006. The claims will then be presented in court as individual reports on June 27, 2006. A general report on the company's bankruptcy case will also be submitted in court on Sep. 5, 2006. The city's court declared Compania Industrial de Alimentos bankrupt after the company defaulted on its debt payments. Ms. Noemi Monica Vivares was appointed as trustee. Ms. Noemi Monica Vivares, the trustee, can be reached at: Avda. Cordoba 2626 Buenos Aires DIAL THRU: Creditors Must Present Claims by April 5 --------------------------------------------------- Creditors are given until April 5, 2006, to present their claims against bankrupt company Dial Thru International de Argentina S.A. to Mr. Jorge Alfredo Cosoli, the company's trustee. Infobae relates that Mr. Cosoli will prepare individual reports out of the verified claims and have it presented in court by May 22, 2006. Mr. Cosoli is also expected to submit a general report on the company's case on July 5, 2006. A Buenos Aires court ordered the liquidation of Dial Thru International after the company defaulted on its obligations. Mr. Jorge Alfredo Cosoli, the trustee, can be reached at: Marcelo T. de Alvear 1364 Buenos Aires DIRECTV GROUP: Elects Nancy Newcomb to Board of Directors --------------------------------------------------------- The DIRECTV Group, Inc. (NYSE: DTV) announced the appointment of Nancy Newcomb to the company's board of directors and to the Audit Committee of the board. The election of Ms. Newcomb, whose appointment is effective immediately, increases the company's board to 11, seven of whom are independent directors. Ms. Newcomb, age 60, served in senior management positions at Citigroup from 1988 until her retirement in 2004. She was Senior Corporate Officer, Risk Management from May 1998 until 2004. Previously, she was Customer Group Executive of Citicorp from December 1995 to April 1998, Division Executive, Latin America from September 1993 to December 1995 and Principal Financial Officer from January 1988 to August 1993. "Nancy is a welcome addition to our board," said Chase Carey, president and CEO of The DIRECTV Group. "Her strong financial background and wealth of experience will serve our board and shareholders well." Commenting on her election to The DIRECTV Group Board, Ms. Newcomb said, "I am happy to join the board of DIRECTV and I look forward to sharing my experience and contributing to the future success of the company." Ms. Newcomb is a member of the Board of Directors of Moody's Corporation and serves on its Audit Committee and Governance and Compensation Committee. She is also a member of the Governing Council of the Van Leer Group Foundation, the Netherlands, and Co-Chair of the Board of the New York Historical Society. DIRECTV (NYSE: DTV) is a world-leading provider of digital multichannel television entertainment services. DIRECTV is approximately 34% owned by News Corporation. DIRECTV, Inc., is the nation's leading digital television service provider with more than 15 million customers. DIRECTV and the Cyclone Design logo are registered trademarks of DIRECTV, Inc. Headquartered in Fort Lauderdale, Florida, DirecTV Latin America, LLC -- http://www.directvla.com/-- is the leading direct-to-home satellite television service in Latin America and the Caribbean. Currently the service reaches more than 1.5 million customers in the region, in a total of 28 markets. DIRECTV is currently available in: Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Puerto Rico, Trinidad & Tobago, Uruguay, Venezuela and several Caribbean island nations. DIRECTV Latin America, LLC is a multinational company owned by DIRECTV Latin America Holdings, a subsidiary of Hughes Electronics Corporation; Darlene Investments, LLC, an affiliate of the Cisneros Group of Companies, and Grupo Clarin. DIRECTV Latin America has offices in Buenos Aires, Argentina; Sao Paulo, Brazil; Cali, Colombia; Mexico City, Mexico; Carolina, Puerto Rico; Fort Lauderdale, USA and Caracas, Venezuela. The Company filed for chapter 11 protection on March 18, 2003 (Bankr. Del. Case No.: 03-10805 (PJW)). The Company emerged from bankruptcy on February 24, 2004. GER S.A.: Trustee to Authenticate Creditors Claims until May 11 --------------------------------------------------------------- Court-appointed trustee Monica Aquim will be verifying claims from creditors of bankrupt company Ger S.A. until May 11, 2006. Creditors who fail to have their claims validated will be disqualified from any distribution or payment that the company would make. The validated claims will be submitted to court on June 23, 2006, for approval. Ms. Aquim will also submit a general report, containing a summary of the company's financial status as well as relevant events pertaining to the bankruptcy, on Sep. 1, 2006. Buenos Aires-based Ger S.A. entered bankruptcy protection following the pronouncement of the city's court. The bankruptcy process will end with the disposal of the Company's assets in favor of its creditors. Ms. Monica Aquim, the trustee, can be reached at: Uruguay 662 Buenos Aires PARMALAT: Can Pursue BofA Legal Suit, Judge Kaplan Says ------------------------------------------------------- The Honorable Lewis A. Kaplan of New York Southern District Court ruled last week that Parmalat SpA may proceed with its legal action against Bank of America Corp. over the dairy company's financial collapse in 2003. Parmalat Chief Executive Enrico Bondi filed a suit against BofA regarding the bank's alleged failure to disclose the true interest rate of a December 1996 loan to Parmalat Argentina. The Associated Press relates that despite BofA's argument to the contrary, Judge Lewis found that Mr. Bondi had sufficiently established its claim against the bank. Additionally, the judge found that Mr. Bondi had sufficiently stated his claim against BofA regarding the bank's real exposure to a December 1997 transaction with Parmalat Venezuela. In a press release, Bank of America directed Parmalat to issue allegedly misrepresenting details of a financial move involving Parmalat's Brazilian unit. However, Judge Kaplan didn't rule on the merits of those claims, just that Mr. Bondi argued them sufficiently enough to proceed. Mr. Bondi contended that the bank's officials kept quiet about the true state of Parmalat's affairs and deliberately didn't tell "innocent insiders" within the company about a scheme to loot millions from the dairy company by a group of corrupt Parmalat executives. He also said the bank structured financial transactions in a way to conceal and facilitate the looting. A Bank of America representative in a statement that the bank was very pleased with the decision, noting that the judge dismissed all of the civil racketeering claims against it except for those related to three out of the more than 15 transactions between Bank of America and Parmalat, the AP relates. M. Bondi was appointed by the Italian government to run Parmalat in the wake of its collapse into bankruptcy following an accounting scandal. Former Parmalat Chairman Calisto Tanzi is on trial in Milan where he is accused of market rigging and other charges in the bankruptcy, the AP states. Headquartered in Wallington, New Jersey, Parmalat USA Corporation -- http://www.parmalatusa.com/-- generates more than 7 billion euros in annual revenue. The Parmalat Group's 40-some brand product line includes milk, yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices and employs over 36,000 workers in 139 plants located in 31 countries on six continents. The Company filed for chapter 11 protection on February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than $200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. ROLE PLAY: Creditors' Claims to be Validated until March 31 ----------------------------------------------------------- Role Play S.A.'s creditors are to have their proofs of claim validated by March 31, 2006, Argentine daily La Nacion reports. Court-appointed trustee Beatriz Muruaga is tasked in verifying the claims and prepare individual reports out of those claims. Court No. 18 of Buenos Aires' civil and commercial tribunal declared the company bankrupt. The ruling was made in approval of the petition filed by the company's creditor, Ms. Mirta Alicia Frankrasch, for nonpayment of debt. Clerk No. 35 assists the court on the case, which will conclude with the liquidation of the Company's assets. Role Play S.A. can be reached at: Celestino Vidal 4542 Buenos Aires Ms. Beatriz Muruaga, the trustee, can be reached at: Aguero 1290 Buenos Aires SUITI S.A.: Claims Verification to End on April 7 ------------------------------------------------- The creditors' claims against bankrupt company Suiti S.A. will be verified until April 7, 2006, reports Infobae. The validated claims will be presented by Mr. Marcelo Carlos Rodriguez -- the court-appointed trustee -- in court as individual reports on May 24, 2006. Suiti S.A. entered bankruptcy protection after a Buenos Aires court ordered the company's liquidation. A general report is expected in court on July 7, 2006. Mr. Marcelo Carlos Rodriguez, the trustee, can be reached at: Parana 768 Buenos Aires ============= B E R M U D A ============= FOSTER WHEELER: Subsidiary Enters Purchase Agreement ---------------------------------------------------- The Milan-based subsidiary of Foster Wheeler, Ltd., Foster Wheeler Italiana S.p.A. (FWI), entered into a binding preliminary sale and purchase agreement with two companies belonging to the Merloni Group, which is FWI's joint venture partners in MF Power S.R.L., a special purpose joint venture company dedicated to the development, construction and operation of wind farm projects in Italy. According to the purchase agreement, FWI -- owner of a 49% equity interest in MFP -- will acquire from Merloni the remaining 51% equity interest in MFP for a purchase price of EUR18.8 million, or approximately $22.5 million at current exchange rates, of which EUR15.4 million -- approximately $18.4 million at current exchange rates -- is payable at closing and EUR3.4 million, approximately $4.1 million at current exchange rates, is due to Merloni upon start of construction of one of the three wind farms being developed by MFP. The purchase price is subject to various adjustments based on the net financial position of MFP at the closing date, including timing of draw down of project debt and distributions of excess cash of MFP to the shareholders. Assuming MFP's excess cash is distributed prior to closing, the adjusted purchase price to be paid by FWI to Merloni at closing is currently estimated to be approximately EUR8 to EUR9 million, approximately $9.6 million to $10.8 million at current exchange rates. Finally, FWI expects MFP to have borrowed on or before the expected closing date approximately EUR26 million, or approximately $31.2 million at current exchange rates, in non- recourse debt. Following the completion of the acquisition, FWI and the company will fully consolidate the financial results of MFP, including the non-recourse debt, in Foster Wheeler's consolidated financial statements. In addition to the joint venture partnership and to the transaction described above, FWI and Merloni are also joint venture partners in two Italian companies which own and operate gas fired cogeneration power plants with a total installed capacity of approximately 300 MW. The Purchase Agreement contains customary representations and warranties, with completion of the transaction subject to the satisfaction of customary closing conditions. The transaction is expected to close in March 2006 with the execution of a final sale and purchase agreement. Foster Wheeler Ltd. -- http://www.fwc.com/-- is a global company offering, through its subsidiaries, a broad range of engineering, procurement, 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, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey, USA. At Sept. 30, 2005, Foster Wheeler's balance sheet showed a $375,004,000 equity deficit. * * * On Feb. 7, 2006, Standard & Poor's Ratings Services revised its outlook on Foster Wheeler Ltd. to stable from negative. At the same time, Standard & Poor's affirmed its 'B-' corporate credit rating and 'CCC+' senior secured debt rating on the Clinton, New Jersey-based engineering and construction company. Standard & Poor's estimates that as of 2005 year-end, Foster Wheeler had approximately $315 million of total debt outstanding. INTELSAT: Appoints D. Sinkfield as Senior VP of Intelsat Global --------------------------------------------------------------- Intelsat Global Service Corporation appointed David Sinkfield as the unit's acting senior vice president, engineering & operations, nunc pro tunc to Feb. 3, 2006. Mr. Sinkfield has previously served in Intelsat Global as: -- senior vice president, business operations from April 2004 to February 2006, -- vice president, business operations from January 2003 to April 2004, -- vice president, quality assurance and process from April 2002 to December 2002, and -- director, process architecture & engineering from November 1999 to April 2002. Mr. Sinkfield served in other roles at Intelsat from 1990 to 1999, and worked as a principal engineer at Contel Business Networks from 1982 to 1990. Headquartered in Pembroke, Bermuda, Intelsat -- http://www.intelsat.com-- is a global communications provider offering flexible and secure services to customers in over 200 countries and territories. Intelsat has maintained a leadership position for over 40 years by distributing video, voice, and data for television and content providers, government and military entities, major corporations, telecommunications carriers, and Internet service providers. * * * As previously reported on Feb. 7, 2006, Fitch Ratings placed the ratings of Intelsat, Ltd. and its wholly owned subsidiary, Intelsat (Bermuda), Ltd., on Rating Watch Negative following the announcement that the company plans to issue $300 million of senior discount notes to retire recently invested equity of an equal amount. Fitch's rating action affected about $4.6 million of existing debt. The new notes are going to be issued by a newly formed intermediate subsidiary placed between Intelsat and Intelsat Bermuda. This would rank the new issue as structurally senior to the Intelsat senior notes and structurally junior to all of the debt at Intelsat Bermuda. Fitch currently rates Intelsat and Bermuda as: Intelsat -- Senior unsecured notes 'B-'. Bermuda -- Senior unsecured notes 'B+'; -- Senior secured credit facilities 'BB' . The proposed issuance and subsequent use of proceeds to retire equity increases the estimated pro forma total leverage as of Sept. 30, 2004, from about 6.2 times to 6.6x, based on Fitch estimates. Fitch expects that if the new senior discount note offering is successful and $300 million of equity is retired that the ratings on the existing senior notes at both the Intelsat, Ltd. and Intelsat Bermuda levels could be affected negatively. Fitch's 'BB' rating for the Intelsat Bermuda senior secured credit facilities (the draw is estimated at $350 million with $300 million unused on a revolver) is also at risk, although Fitch recognizes the substantial value of the assets securing the facilities. A future downgrade upon completion of the proposed offering of senior discount notes would recognize the impact of the additional leverage and the future significant increase in cash interest expense in five years when the proposed senior discount notes begin cash interest payments. The five-year period may coincide with a possible need to increase capital spending at that time to replace aging satellites. INTELSAT: Kevin Mulloy Resigns as IGSC Chairman & President ----------------------------------------------------------- Intelsat Global Service Corporation discloses that Kevin Mulloy resigned his position as chairman and president effective Jan. 27, 2006. Intelsat Holdings, Ltd. (the parent of Intelsat, Ltd.) and Intelsat Global Service Corporation entered into a separation agreement with Mr. Mulloy on Jan. 31, 2006. Under the terms of the separation agreement, Mr. Mulloy will be entitled to i) a severance payment of $1,280,000, payable in 24 equal monthly installments commencing February 17, 2006, and ii) a lump sum payment equal to 50% of the maximum bonus for 2005 (including the additional bonus payable in the discretion of the Compensation Committee of Intelsat, Ltd.'s board). In addition, on Feb. 15, 2006, Intelsat Holdings, Ltd. will repurchase all of the 11,420 shares of equity of Intelsat Holdings, Ltd,. that Mr. Mulloy purchased in January 2005 for a repurchase price of $2,695,120. Intelsat Holdings will also repurchase the remaining 8,034 vested shares of equity held by Mr. Mulloy for a repurchase price of $1,896,025. Headquartered in Pembroke, Bermuda, Intelsat -- http://www.intelsat.com-- is a global communications provider offering flexible and secure services to customers in over 200 countries and territories. Intelsat has maintained a leadership position for over 40 years by distributing video, voice, and data for television and content providers, government and military entities, major corporations, telecommunications carriers, and Internet service providers. * * * As previously reported on Feb. 7, 2006, Fitch Ratings placed the ratings of Intelsat, Ltd. and its wholly owned subsidiary, Intelsat (Bermuda), Ltd., on Rating Watch Negative following the announcement that the company plans to issue $300 million of senior discount notes to retire recently invested equity of an equal amount. Fitch's rating action affected about $4.6 million of existing debt. The new notes are going to be issued by a newly formed intermediate subsidiary placed between Intelsat and Intelsat Bermuda. This would rank the new issue as structurally senior to the Intelsat senior notes and structurally junior to all of the debt at Intelsat Bermuda. Fitch currently rates Intelsat and Bermuda as: Intelsat -- Senior unsecured notes 'B-'. Bermuda -- Senior unsecured notes 'B+'; -- Senior secured credit facilities 'BB' . The proposed issuance and subsequent use of proceeds to retire equity increases the estimated pro forma total leverage as of Sept. 30, 2004, from about 6.2 times to 6.6x, based on Fitch estimates. Fitch expects that if the new senior discount note offering is successful and $300 million of equity is retired that the ratings on the existing senior notes at both the Intelsat, Ltd. and Intelsat Bermuda levels could be affected negatively. Fitch's 'BB' rating for the Intelsat Bermuda senior secured credit facilities (the draw is estimated at $350 million with $300 million unused on a revolver) is also at risk, although Fitch recognizes the substantial value of the assets securing the facilities. A future downgrade upon completion of the proposed offering of senior discount notes would recognize the impact of the additional leverage and the future significant increase in cash interest expense in five years when the proposed senior discount notes begin cash interest payments. The five-year period may coincide with a possible need to increase capital spending at that time to replace aging satellites. =========== B R A Z I L =========== AOL LATIN: Will Stop Operating in Brazil on March 17 ---------------------------------------------------- According to reports, the Brazilian unit of regional Internet service provider America Online Latin America Inc. aka AOL Latin America Inc. has decided to end its activities on March 17, 2006. The company said in a statement that it will stop operating its web pages and services on that date. As previously reported, the U.S. Bankruptcy Court for the District of Delaware authorized AOL Latin America to transfer its subscribers to ISP Terra, a move that meant cessation of the company's operations in Brazil. 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. BANCO BRADESCO: Inks Retail Partnership with Lojas Esplanada ------------------------------------------------------------ Banco Bradesco S.A. (NYSE: BBD) disclosed in a prepared statement that it has signed a partnership with local retailer Lojas Esplanada/Otoch. Lojas Esplanada is one of the largest in Brazil's northeastern region with 2.3 million private label cardholders. Under the agreement, Bradesco will take charge of the private label card management and also be able to sell its banking products and services to cardholders. Bradesco has been the most active of Brazilian banks in signing consumer finance partnerships with local retailers. * * * Banco Bradesco's $100 Million notes due Sept. 2, 2006, is rated Ba3e by Moody's and BB- by Composite. BRASKEM: Launching US$149 Mil. Cargo Transportation Contracts ------------------------------------------------------------- Braskem S.A. is ready to launch the second phase of the bidding process for two-year highway cargo transportation contracts, the Gazeta Mercantil reports. The company projects the contract at 330 million reais (US$149 million) per year for the highway transport of thermoplastics from Braskem's factories to consumer markets. Braskem requires 400 cargo trucks per day, which means the winning contractors will make 100,000 trips each year during the two year contract term, Business News Americas relates. Braskem has already made a pre-selection process, eliminating 21 of the 58 proposals submitted. The company will review the remaining 37 proposals beginning this week, and is expected to announce the winners by mid February, Business News states. * * * On Oct. 17, 2005, Fitch Ratings revised the Rating Outlook of the `BB-' long-term foreign currency rating of Braskem S.A. and Braskem International Ltd. to Positive from Stable. The action followed the recent change in the Rating Outlook to Positive from Stable of the 'BB-' foreign currency rating of the Federative Republic of Brazil. The Brazilian corporate foreign currency ratings continue to be linked to the 'BB-' foreign currency rating of the sovereign. Braskem -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin American, and is among the three largest Brazilian-owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. GLOBO COMUNICACAO: Moody's Withdraws B1 Foreign Currency Rating -------------------------------------------------------------- Moody's Investors Service has withdrawn the B1 foreign currency corporate family rating of Globo Comunicacao e Participacoes S.A. The ratings have been withdrawn as Moody's no longer maintains foreign currency corporate family ratings and for business reasons. PARMALAT BRASIL: Court Approves Plan of Reorganization ------------------------------------------------------ Justice Alexandre Alves Lazzarini, of the First District Company Recovery and Bankruptcy Court of Justice of Sao Paulo, approved the recovery plan filed by Parmalat Brasil Industria de Alimentos S.A., a unit of cash-strapped Italian dairy producer Parmalat Finanziaria S.p.A. The ratification occurred even without the presentation of the Negative Tax Debt Certification, as provided for in the new Company Bankruptcy and Recovery Law. The plan, drafted with Integra consultants, confirms the unit's economic viability and presents a schedule for the payment of its BRL800-million debt to suppliers and banks. The plan includes the sale of operating assets to help the unit pay off part of the debt and to reinforce its working capital. Parmalat Brasil filed for bankruptcy protection on June 24, 2005, under Brazil's new bankruptcy law. The filing came after the unit's creditors denied the extension of the BRL800-million payment deadline for the Company's debt. Parmalat Brasil first filed for bankruptcy protection in 2004 under the old Brazilian bankruptcy law. The unit filed for bankruptcy again to take advantage of the New Bankruptcy and Restructuring Law of Brazil, which became effective on June 9, 2005. Under the NBRL, debtors are permitted to remain in possession and control of their businesses and properties. In addition, as part of the judicial reorganization under the NBRL, most creditors are effectively prohibited from enforcing claims against the Debtors. Parmalat Brasil is represented by: Thomaz Benes Felsberg Felsberg & Associados Avenida Paulista 1294, 2nd Floor Sao Paulo, Brazil 01310-915 =========================== C A Y M A N I S L A N D S =========================== 57TH STREET: Liquidators to Cease Claims Verification ----------------------------------------------------- Ms. Mora Goddard and Mr. Richard Gordon -- liquidators of 57th Street Holdings I -- are giving creditors until Jan. 4, 2006, to have their claims validated. Creditors must send full particulars of their debts or claims to the liquidators by the said date. Failure to do so would exclude them from any distribution or payment that the company would make. The liquidation of 57th Street Holdings I started on Jan. 4, 2006. Ms. Mora Goddard and Mr. Richard Gordon, the joint voluntary liquidators, can be reached at: Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands CCAVI: Claims to be Verified by Liquidators ------------------------------------------- The proofs of claim of CCAVI's creditors will undergo a verification phase until Feb. 24, 2006. Creditors must send full particulars of their debts or claims to the joint liquidators of the company. Creditors whose claims that are not validated after the said date will not be included in the benefit of any distribution or payment that the company would make. CCAVI was voluntarily wound up on Jan. 12, 2006, and Ms. Morra Goddard and Mr. Richard Gordon were appointed as joint liquidators of the company. Ms. Mora Goddard and Mr. Richard Gordon, the joint voluntary liquidators, can be reached at: Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands COMMERCIAL PLAZA: Claims to be Accepted until February 24 --------------------------------------------------------- Commercial Plaza Securitisation Limited's creditors are to prove their debts or claims on or before Feb. 24, 2006. They are to send full particulars of their debts or claims to the joint liquidators -- Suzan Merren and Emile Small. In default thereof would mean exclusion from the benefit of any distribution made before the debts are proved or from objecting to the distribution. Commercial Plaza Securitisation Limited began liquidation on Jan. 12, 2006 and appointed Ms. Suzan Merren and Mr. Emile Small as joint voluntary liquidators. Ms. Suzan Merren and Mr. Emile Small may be reached at: Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands MAIDSTONE LIMITED: Verification of Proofs of Ends on February 24 ---------------------------------------------------------------- Maidstone Limited's creditors must prove their claims to Ms. Phillipa White and Mr. Richard Gordon, the joint liquidators of the company by Feb. 24, 2006. They must send full particulars of their debts or claims to the joint liquidators. Failure to do so would mean exclusion from receiving any distribution or payment that the company would make. Maidstone Limited started liquidating assets on Jan. 11, 2006. Ms. Phillipa White and Mr. Richard Gordon, the joint voluntary liquidators, can be reached at: Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands MILLENNIUM CAPITAL: Liquidators to Cease Verifying Claims --------------------------------------------------------- Ms. Wendy Ebanks and Mr. Richard Gordon -- liquidators of Millennium Capital Cayman Limited -- will stop accepting and verifying proofs of claim from the company's creditors after Feb. 24, 2006. Creditors must therefore send full particulars of their debts or claims to the liquidators or be excluded from the benefit of receiving any distribution or payment the company would make. Millennium Capital Cayman Limited started winding up operations on Jan. 6, 2006. Ms. Wendy Ebanks and Richard Gordon, joint voluntary liquidators, can be reached at: Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands ========= C H I L E ========= CELLSTAR CORPORATION: Hosts 4Q Earnings Release, Conference Call ---------------------------------------------------------------- In conjunction with CellStar Corporation (OTC Pink Sheets: CLST) fourth quarter earnings release, the company invites interested parties to listen to a conference call that will be broadcast live over http://www.cellstar.comon February 14, 2006 at 10:00 a.m. CellStar Corporation -- http://www.cellstar.com-- provides value-added logistics services to the wireless communications industry, with operations in the North American and Latin American regions. CellStar facilitates the effective and efficient distribution of handsets, related accessories and other wireless products from leading manufacturers to network operators, agents, resellers, dealers and retailers. CellStar also provides activation services in some of its markets that generate new subscribers for wireless carriers. * * * Going Concern Doubt Grant Thornton LLP expressed substantial doubt about Cellstar's ability to continue as a going concern after it audited the Company's financial statements for the period ended Nov. 30, 2004. The auditors point to the Company's: -- $118.1 million net loss for the 2004 fiscal year; -- covenant violations on its borrowing arrangements; -- exit on its Asian operations that constituted a large percentage of its historical operations; and -- experiencing restrictions in its business activities with vendors. The Company reported a consolidated net loss of $21.3 million for the nine months ended Aug. 31, 2005, compared to a net loss of $52.4 million in 2004. The net losses in 2004 and 2005 included losses from discontinued operations of $14.2 million and $47.7 million, respectively, related primarily to the Company's operations in the People's Republic of China. For the nine months ended Aug. 31, 2005, losses from continuing operations were $7.2 million, compared to $4.7 million in 2004. The Company's continuing operations includes the North American and the Latin American Regions. ======= C U B A ======= * CUBA: Tries to Win Over U.S. Oil Firms ---------------------------------------- Government officials of Cuba have urged U.S. firms to oppose the U.S. trade restriction while the U.S. government looks for ways to tighten the sanction, the Associated Press reports. The officials tried to entice the companies to invest in the nation's energy sector with plans on doubling their drilling capacity and plans on exploring for oil in Cuba's 59 deep-water blocks. The plans were confirmed by Juan A. Fleitas, general director of oil monopoly CUPET S.A., has also reported the plans. Associated Press relates that executives from U.S. firms ExxonMobil Corp., Caterpillar, Inc., and Valero Energy, Corp., met with the officials in the two countries' first private- sector oil summit held in Mexico City last week to discuss on Cuba's potentially lucrative oil reserves. Raul Perez de Prado, Cuba's vice minister of basic industry, believed that U.S. executives should work to eliminate the barriers that limit investment. The vice minister was referring to the 5-year-old U.S. trade embargo intended to damage Fidel Castro's communist government. While Cuba has inked exploration deals with Canadian, Chinese, Indian and Norwegian companies, U.S. firms were restricted by the embargo. Jonathan Benjamin-Alvarado, a political scientist at the University of Nebraska who studies the Cuban energy sector, told Associated Press that the meeting could be the way to usher in a change in the U.S. policy. In 2000, Cuba was able to sway the U.S. government to pass a law that allows food and agricultural exports on a cash basis after Cuban agricultural officials held meetings with their U.S. counterparts in Mexico in 1999. Cuba informs that it has since spent about $1.5 billion buying American food. Benjamin-Alvarado was positive that working with Cuba would offer U.S. oil companies opportunities, from building refineries to storing oil if a hurricane should wipe out supplies in Houston, for example. Mike Martinez, president of Mexico-based oil engineering company Bay-Inelectra, said that Cuba could offer the U.S. a viable oil source amid instability in the Middle East and elsewhere -- Nigeria and Venezuela included. However, Judith Bryan, spokesperson for the U.S. embassy in Mexico City, revealed to Associated Press that the U.S. is looking for ways to tighten more the embargo against Cuba. Ms. Bryan said, "Our main goal is to reach out to the Cuban people and free them from the sanctions imposed on them by their own regime." Cuba's first well, which was discovered in 2004 by Spanish petrochemical company Repsol-YPF, was not considered commercially viable, but the finding of reserves made the government more determined in becoming more self-sufficient amid tightened U.S. sanctions. Cuba now produces more than 30% of its own crude. Cuba has since spent $1.7 billion into its energy sector with help from Canada, Europe and Latin America. Foreign firms have acquiesced to explore 10 blocks while six are under negotiation. "We would be happy if North American companies also participated in future projects," Raul Perez de Prado, Cuba's vice minister of basic industry, told Associated Press. ===================== E L S A L V A D O R ===================== INVERSIONES FINANCIERAS: Banistmo Buys 53.6% Stake for US$131MM ---------------------------------------------------------------- Business News Americas reports that Panama-based financial group Grupo Banistmo has bought a 53.6% stake at El Salvadorian banking group Inversiones Financieras Bancosal for US$131 million. The acquisition was made through a public tender offer that closed February 4. Banistmo said in October 2005 that it would acquire 51-60% of Bancosal through a public tender offer on the El Salvadorian stock exchange. Banistmo paid US$2.12 in cash for each Bancosal share, which values its stake at about US$131 million based on a total float of 115,504,000 shares. Bancosal has over US$1.77 billion in assets and its holdings include the country's third largest bank, Banco Salvadoreno with 62 branches and insurance company Internacional de Seguros. "Within El Salvador, we will focus on strengthening our leadership in consumer [lending] by offering and developing innovative products," Banistmo Executive VP of banking operations Juan Carlos Fabrega said in a statement. "At the same time the group's regional presence will strengthen its remittance, credit card and investment banking businesses." Through its acquisitions and startup projects, Banistmo has grown over the last three years to become the region's biggest financial group with US$6.62 billion in assets at Sept. 30, 2005. Banistmo has banking operations in Panama, Honduras, Costa Rica, El Salvador, Nicaragua and Colombia. The bank however, is still absent from Guatemala, Central America's largest market with 12.1 million people and a US$30.7 billion economy, Business News states. * * * As previously reported Nov. 9, 2005, Moody's Investors Service affirmed the D+ financial strength rating and Ba1 foreign currency deposit rating of Primer Banco del Istmo, S.A. The affirmation follows the announcement that Banistmo's shareholder, Grupo Banistmo, S.A., has agreed to purchase between 51% and 60% of Inversiones Financieras Bancosal S.A., the owner of Banco Salvadoreno, El Salvador's third largest bank. * * * As previously reported on Oct. 14, 2005, Fitch Ratings has affirmed its BB+(slv) long-term national scale rating and the B(slv) short-term rating on financial holding company Inversiones Financieras Promerica with a stable outlook. The action reflected the risk exposure of IFP's only subsidiary, niche bank Banco Promerica, which has a BB+(slv) long-term rating and B(slv) short-term rating. IFP's concentration on consumer lending has brought its net interest income to a near historic high. Nevertheless, profitability has been limited by the lack of revenue diversification and the expansion of its geographic footprint. ============= J A M A I C A ============= KAISER ALUMINUM: Bankruptcy Court Confirms Chapter 11 Plan ---------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware confirmed Kaiser Aluminum's second amended Plan of Reorganization. The confirmation order must now be affirmed by the United States District Court before the company can emerge, and is also subject to appeal. "We are very pleased by the ruling and it means that the finish line is within sight," Jack Hockema, president and chief executive officer, Kaiser Aluminum, said. "We are hopeful that we can proceed quickly through the steps necessary for us to emerge before the end of the first quarter of 2006. We will continue our present course as a globally competitive company with world-class products and service, well positioned to best serve the needs of our customers. We also plan to emerge with a strong balance sheet that will provide financial strength to support the ability to grow in our key transportation and industrial markets." In addition to U.S. District Court affirmation of the confirmation order, there are other conditions that must be satisfied before the company can emerge. The company's restructuring would resolve prepetition claims that are currently subject to compromise including retiree medical, pension, asbestos, and other tort, bond, and note claims. The POR would result in the cancellation of the equity interests of current stockholders and the distribution of equity in the emerging company to creditors or creditor representatives. The majority of the new equity would be distributed to two voluntary employee benefit associations that were created in 2004 to provide medical benefits or funds to defray the cost of medical benefits for salaried and hourly retirees. Retiree medical plans existing at that time were cancelled. All personal injury claims relating to both prepetition and future claims for asbestos, silica and coal tar pitch volatiles, and existing claims regarding noise-induced hearing loss, would be permanently resolved by the formation of certain trusts funded primarily by the company's rights to proceeds from certain of its insurance policies and the establishment of channeling injunctions that would permanently channel these liabilities away from the company and into the trusts. A full-text copy of the Plan of Reorganization is available at no charge at: http://ResearchArchives.com/t/s?50a Headquartered in Foothill Ranch, California, Kaiser Aluminum Corporation -- http://www.kaiseraluminum.com/-- is a leading producer of fabricated aluminum products for aerospace and high-strength, general engineering, automotive, and custom industrial applications. The Company filed for chapter 11 protection on Feb. 12, 2002 (Bankr. Del. Case No. 02-10429), and has sold off a number of its commodity businesses during course of its cases. Corinne Ball, Esq., at Jones Day, represents the Debtors in their restructuring efforts. On June 30, 2004, the Debtors listed $1.619 billion in assets and $3.396 billion in debts. KAISER ALUMINUM: Extends Chief Restructuring Officer's Term ----------------------------------------------------------- Kaiser Aluminum & Chemical Corporation and Edward F. Houff, its Chief Restructuring Officer entered into an Amended and Restated Non-Exclusive Consulting Agreement, extending the term of Mr. Houff's engagement through April 30, 2006, and securing Mr. Houff's services as Chief Restructuring Officer through the earlier of KACC's emergence from Chapter 11 and April 30, 2006. According to the amended and restated non-exclusive consulting agreement, Mr. Houff will continue to provide services to KACC in exchange for a monthly base fee, plus an additional hourly amount for each hour worked in excess of monthly thresholds, subject to monthly caps, all as more fully set forth in the agreement. KACC will also reimburse Mr. Houff for reasonable and customary expenses incurred while providing consulting services to KACC. Headquartered in Foothill Ranch, California, Kaiser Aluminum Corporation -- http://www.kaiseraluminum.com/-- is a leading producer of fabricated aluminum products for aerospace and high- strength, general engineering, automotive, and custom industrial applications. The Company filed for chapter 11 protection on February 12, 2002 (Bankr. Del. Case No. 02-10429), and has sold off a number of its commodity businesses during course of its cases. Corinne Ball, Esq., at Jones Day, represents the Debtors in their restructuring efforts. On June 30, 2004, the Debtors listed $1.619 billion in assets and $3.396 billion in debts. (Kaiser Bankruptcy News, Issue No. 89; Bankruptcy Creditors' Service, Inc., 215/945-7000) =========== M E X I C O =========== HIPOTECARIA MEXICO: Missed Payment Cues S&P to Cut Rating to D -------------------------------------------------------------- Credit ratings agency Standard & Poor's has cut its ratings on Mexican home finance company Hipotecaria Mexico to default after the company failed to pay the principal on 150 million pesos (US$14.3 million) in notes on February 3. S&P cut the company's long-term and short-term national scale ratings to mxD from mxBBB-/mxA-3, while the mxA-3 ratings assigned to the notes was also cut to mxD. The company paid the interest on the notes on Friday, S&P said in a filing with the local stock exchange. "On repeated occasions Hipotecaria Mexico's management expressed their intention to pay the [notes] on time. However, the company decided not to use those funds despite its ability to make a partial payment with funds in a trust," S&P said. Hipotecaria Mexico is in the process of cleaning up its balance sheet and raising fresh capital through the incorporation of new shareholders. The company reported performing loans of 1.49 billion pesos (US$143 million) and equity of 28.7 million pesos at Sept. 30, 2005. However, its non-performing loan ratio was a staggering 38%. VITRO: Closes US$75 Mil. Secured Short Term Notes Issued by VENA ---------------------------------------------------------------- Vitro, S.A. de C.V., announced that its subsidiary Vitro Envases Norteamerica, S.A. de C.V., aka VENA, Vitro's glass containers division, successfully closed the issuance of US$75 million aggregate principal amount of Senior Secured Short Term Guaranteed Notes. The facility is secured, on a pari passu basis, with the existing senior secured indebtedness of VENA. The notes have a maturity of 12 months and a yield of 8 percent. The net proceeds will be used to refinance debt at VENA's level and for working capital purposes. The market reacted very positively to the offering, which resulted in an oversubscription. "This lower interest rate, reflects VENA's great performance and the market's recognition of a clear decoupling between VENA and the Holding Company risk," commented Alvaro Rodriguez, Vitro's CFO. BCP Securities, LLC, arranged and facilitated the Notes' deal. Vitro, S.A. de C.V. -- http://www.vitro.com-- is a major participant in three principal businesses: flat glass, glass containers and glassware. Founded in 1909 in Monterrey, Mexico- based Vitro has joint ventures with major world-class partners and industry leaders that provide its subsidiaries with access to international markets, distribution channels and state-of- the-art technology. Vitro's subsidiaries have facilities and distribution centers in eight countries, located in North, Central and South America, and Europe, and export to more than 70 countries worldwide. * * * As reported by Troubled Company Reporter on Nov. 14, 2005, Standard & Poor's Ratings Services has revised its outlook on its 'B' long-term corporate credit rating on Vitro S.A. de C.V., and Vitro's glass containers subsidiary Vitro Envases Norteamerica S.A. de C.V., to negative from stable. =========== P A N A M A =========== GRUPO BANISTMO: Acquires 53.6% Stake of Bancosal for US$131 Mil. ---------------------------------------------------------------- Business News Americas reports that Panama-based financial group Grupo Banistmo has bought a 53.6% stake at El Salvadorian banking group Inversiones Financieras Bancosal for US$131 million. The acquisition was made through a public tender offer that closed February 4. Banistmo said in October 2005 that it would acquire 51-60% of Bancosal through a public tender offer on the El Salvadorian stock exchange. Banistmo paid US$2.12 in cash for each Bancosal share, which values its stake at about US$131 million based on a total float of 115,504,000 shares. Bancosal has over US$1.77 billion in assets and its holdings include the country's third largest bank, Banco Salvadoreno with 62 branches and insurance company Internacional de Seguros. "Within El Salvador, we will focus on strengthening our leadership in consumer [lending] by offering and developing innovative products," Banistmo Executive VP of banking operations Juan Carlos Fabrega said in a statement. "At the same time the group's regional presence will strengthen its remittance, credit card and investment banking businesses." Through its acquisitions and startup projects, Banistmo has grown over the last three years to become the region's biggest financial group with US$6.62 billion in assets at Sept. 30, 2005. Banistmo has banking operations in Panama, Honduras, Costa Rica, El Salvador, Nicaragua and Colombia. The bank however, is still absent from Guatemala, Central America's largest market with 12.1 million people and a US$30.7 billion economy, Business News states. * * * As previously reported Nov. 9, 2005, Moody's Investors Service affirmed the D+ financial strength rating and Ba1 foreign currency deposit rating of Primer Banco del Istmo, S.A. The affirmation follows the announcement that Banistmo's shareholder, Grupo Banistmo, S.A., has agreed to purchase between 51% and 60% of Inversiones Financieras Bancosal S.A., the owner of Banco Salvadoreno, El Salvador's third largest bank. * * * As previously reported on Oct. 14, 2005, Fitch Ratings has affirmed its BB+(slv) long-term national scale rating and the B(slv) short-term rating on financial holding company Inversiones Financieras Promerica with a stable outlook. The action reflected the risk exposure of IFP's only subsidiary, niche bank Banco Promerica, which has a BB+(slv) long-term rating and B(slv) short-term rating. IFP's concentration on consumer lending has brought its net interest income to a near historic high. Nevertheless, profitability has been limited by the lack of revenue diversification and the expansion of its geographic footprint. =============== P A R A G U A Y =============== * PARAGUAY: IMF Completes 6th Review of Stand-By Arrangement ----------------------------------------------------------- The International Monetary Fund announced Tuesday that its executive board completed on Nov. 30, 2005, the sixth review of Paraguay's economic performance under an SDR50 million, about US$73.3 million, Stand-By Arrangement for Paraguay, originally approved on Dec. 15, 2003 for 15 months. The arrangement was subsequently extended through September 30, 2005 on Dec. 20, 2004 and through Nov. 30, 2005, on Sep. 30, 2005. Both the later extension and the review were completed by the Executive Board on a lapse of time basis. The completion of the sixth review made a cumulative amount equivalent to SDR50 million, about US$71.2 million, immediately available to Paraguay. However, Paraguay did not make any drawings under the arrangement. * PARAGUAY: U.S. Wants Free Trade Accord with Mercosur ------------------------------------------------------ The United States seeks a free trade agreement with the Common Market of the South, Mercosur, Latin America's largest trading bloc. Argentina's ABC Color newspaper quoted Ambassador Cason, as saying that his country is seeking a deal either with Paraguay or with Mercosur. Mercosur's member states are Argentina, Uruguay, Paraguay, Brazil, and Chile and Bolivia as associated countries. "The deal would bring many benefits to both sides," Ambassador Cason said. "I have the impression that Paraguay wants to sign a deal alongside the Mercosur countries and it has a right to do so." The United States has free trade deals with Chile, Mexico and Panama. The ambassador stated that his country's interest in not only in forging deals with individual countries, but also with regional groupings like Mercosur. ===================== P U E R T O R I C O ===================== MUSICLAND HOLDING: Wants to Dispose of 61 Media Play Leases ----------------------------------------------------------- Musicland Holding Corp. and its debtor-affiliates proposed to notify each lessor of a proposed assumption and assignment of the 61 Media Play leases. The Debtors will also provide a schedule of all their outstanding obligations under the Leases through the Petition Date. On January 19, 2006, the Debtors presented to the Court a notice of cure schedules. The Notice contained: (a) a list of unexpired real property Leases at each of the Media Play stores which the Debtors sought to assume; and (b) the proposed cure amounts due and owing for the unexpired real property leases which are based on the Debtors' books and records A full-text copy of the 61 Media Play Leases and the proposed Cure Amounts is available for free at: http://bankrupt.com/misc/Musicland_61mediaplayleases.pdf Landlords Object to Proposed Cure Some of the landlords of the Media Play Leases object to the Debtors' Cure Schedules. According to the Landlords, the Cure Amounts in the Debtors' Notice do not reflect all charges owing to Landlords under the Leases. Certain of the Landlords presented their calculated cure amounts: Debtors' Landlords' Cure Amount Cure Amount ----------- ----------- 100 Oaks LP $47,484 $87,376 Barrett Pavilion 59,498 187,191 Cincinnati Mills 46,714 93,195 Citadel Crossing Shopping Center 14,962 111,470 Family Center at Fort Union 17,925 46,258 Family Center at Midvalley 18,185 46,739 Family Center at Orem 16,872 51,135 Family Center at Riverdale 14,635 37,122 Greenwood Point 58,793 77,508 Harrisburg 27,151 54,486 Houston Lakes 15,775 35,165 Keystone Plaza 51,921 71,937 Lafayette Place 87,862 102,969 Largo Plaza 29,683 7,871 Meyer Park Center 170,028 201,772 Great Mall of the Bay 25,178 77,628 North Point Market Center 18,814 53,013 Ridgemont Plaza 68,241 98,171 Rivergate Mall 89,690 260,001 Robinson Court 0 107,158 Southlake Pavilion 53,681 85,858 Southtown Plaza Associates, LLC 11,502 153,877 Spring Meadows Place Shopping Mall 62,005 93,384 Stateline Plaza 82,367 101,790 The Market at Chapel Hills West 130,882 152,122 Walden Place 15,995 34,167 Western Hills 54,519 63,286 Westgate Shopping Center 35,456 46,508 Woodlawn Market 50,854 50,151 The Landlords allege that the amounts in the Debtors' Cure Schedule do not reflect the unbilled year-end adjustments to real estate taxes, insurance, common area maintenance, legal costs and attorneys fees. Further, the Debtors' administrative rent and rent-related charges continue to accrue daily. The Proposed Cure Schedule also did not provide a break down of the Cure. Thus, the Debtors cannot be assured that the cure was accurately calculated. In addition, some of the Debtors maintain that they received an extremely limited and late notice of the Cure Amounts and the auction of the Media Play Leases. Consequently those Debtors have not yet had an opportunity to complete their review of the Cure Schedule and an analyze their own records relative to the Cure Schedules. More Objections (1) Kmart Corp. According to Richard M. Meth, Esq., at Pitney Hardin LLP, in Florham Park, New Jersey, many of the documents pertinent to the Media Play Leases are not made immediately available to Kmart Corp. Mr. Meth says that Kmart has already arranged for the various records to be retrieved, and is currently seeking to verify independently the Debtors' Cure Amounts. However, as of the present, all those relevant information and documents have not yet been received by Kmart. Thus, Kmart has not have sufficient time to complete its review of the documents related to the Media Play Leases. Kmart believes that it may have rights and claims relative to six of the Media Play Leases. Kmart objects to the Cure Schedule and the Cure Amounts due to the limited notice provided to it relative to the Assumed Contracts, the Cure Amounts and the Auction. (2) National Amusements Richard L. Levine, Esq., attorney for National Amusements, Inc., in Boston, Massachusetts, tells the Court that the relevant date for determining the cure amount is not the date of filing, as was stated in the Cure Notice, but the date the lease is assumed and assigned. On behalf of National Amusements, Mr. Levine objects to the Cure Amount proposed by the Debtors unless the Debtors affirm that the Cure Amount only represents the amounts due as of the Petition Date, and do not represent the total amount due on the Lease's assumption. (3) Merchant's Walk Robert L. LeHane, Esq., at Kelley Drye & Warren LLP, in New York City, asserts that the Merchant's Walk (E&A) LLC lease was terminated prior to the filing of the Debtors' bankruptcy cases and the Debtors have no interest in the Lease to sell. Thus, the Debtors have no legal right to cure any defaults under the Lease. Mr. LeHane notes that Merchant's Walk is not waiving its position. Further, Mr. LeHane says that the proposed Cure Amount with respect to the Lease is incorrect. According to Mr. LeHane, as of January 20, 2006, $132,799 plus attorney's fees was due to Merchant's Walk under the Lease. (4) New Market Acquisitions New Market Acquisitions Ltd., contends that it has not received and cannot locate a Cure Schedule as of January 20, 2006. Accordingly, New Market states that its cure amount is $68,094. New Market Acquisitions leases to Media Play a real property known as 7690 New Market Center Way, in Columbus, Ohio, under a lease dated June 22, 1993. Headquartered in New York, New York, Musicland Holding Corp., is a specialty retailer of music, movies and entertainment-related products. The Debtor and 14 of its affiliates filed for chapter 11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No. 06-10064). James H.M. Sprayregen, Esq., at Kirkland & Ellis, represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they estimated more than $100 million in assets and debts. (Musicland Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service, Inc., 215/945-7000) ================================= T R I N I D A D & T O B A G O ================================= * Trinidad & Tobago: Deltana Field Talks with Venezuela Stalled --------------------------------------------------------------- Peter Wilson at Bloomberg reports that talks between Venezuela and Trinidad and Tobago on how to divide South America's largest natural-gas field in the Deltana Platform have stalled, delaying plans to spend billions of dollars in developing the reserves. Further talks are currently not scheduled. "Our goal has to be to stimulate exploration in our areas where we have gas, and that is going to be our first priority," Trinidad and Tobago Energy Minister Lenny Saith told Mr. Wilson in an interview. "Some (of our reserves), not all are in the Deltana Platform." Talks began in 2003 on how to divide the field, and a steering committee was created in 2004. An agreement between the two nations was expected last year. Venezuelan Oil Minister Rafael Ramirez has said that an agreement is essential for the countries to start work on developing the Deltana Platform, a project that may produce 40 trillion cubic feet of gas. According to Bloomberg, talks have lagged since Trinidad and Tobago, which is the United States' largest supplier of liquefied natural gas, refused to join Venezuelan President Hugo Chavez's PetroCaribe initiative. Minister Saith declined to say whether the issues were related. The two countries' representatives last met in Caracas, Venezuela, in November 2005, four months after Trinidad and Tobago didn't sign the PetroCaribe charter. Thirteen countries, including Cuba, Jamaica and the Dominican Republic have signed the accord, which offers them Venezuelan petroleum products on preferential terms, Bloomberg relates. ============= U R U G U A Y ============= COFAC: In Talks with Bandes for US$18 Million Financing Deal ------------------------------------------------------------ Uruguayan banking cooperative COFAC aka Cooperativa Nacional de Ahorro Credito and Venezuelan development bank Bandes are currently in talks for a US$18 million recapitalization from the bank, the Business News Americas reports. As previously reported, COFAC was suspended by the central bank as a result of liquidity issues. The suspension came after the cooperative failed to seal an US$8 million recapitalization deal with Bandes. However, after the suspension was announced, a Bandes source disclosed that the bank will come to rescue with a US$10 million financing. "Cofac might reopen but under a different structure or even go into liquidation. Nevertheless, other business partners have also expressed interest in entering the ownership structure of Cofac. The next two or three days will be crucial to sort this out," an unidentified source told Business News. Cofac provides retail and commercial banking services and is one of Uruguay's leading financial institutions in the microcredit segment with 200,000 clients. The cooperative posted a 324 million peso (US$13.5 million) loss in 2005 and had assets of 4.54 billion pesos at year-end. * * * As previously reported on Feb. 7, 2006, Fitch Ratings downgraded the long-term foreign currency debt ratings of Uruguay's Cooperativa Nacional de Ahorro y Credito aka COFAC to 'D' from 'CC'. At the same time, Fitch also downgraded COFAC's national long-term rating to 'D(uy)' from 'B-(uy)'. The Negative Rating Watch on the bank's national ratings has been removed. ================= V E N E Z U E L A ================= * Venezuela: Talks with Trinidad Over Natural Gas Field Stalled -------------------------------------------------------------- Peter Wilson at Bloomberg reports that talks between Venezuela and Trinidad and Tobago on how to divide South America's largest natural-gas field in the Deltana Platform have stalled, delaying plans to spend billions of dollars in developing the reserves. Further talks are currently not scheduled. "Our goal has to be to stimulate exploration in our areas where we have gas, and that is going to be our first priority," Trinidad and Tobago Energy Minister Lenny Saith told Mr. Wilson in an interview. "Some (of our reserves), not all are in the Deltana Platform." Talks began in 2003 on how to divide the field, and a steering committee was created in 2004. An agreement between the two nations was expected last year. Venezuelan Oil Minister Rafael Ramirez has said that an agreement is essential for the countries to start work on developing the Deltana Platform, a project that may produce 40 trillion cubic feet of gas. According to Bloomberg, talks have lagged since Trinidad and Tobago, which is the United States' largest supplier of liquefied natural gas, refused to join Venezuelan President Hugo Chavez's PetroCaribe initiative. Minister Saith declined to say whether the issues were related. The two countries' representatives last met in Caracas, Venezuela, in November 2005, four months after Trinidad and Tobago didn't sign the PetroCaribe charter. Thirteen countries, including Cuba, Jamaica and the Dominican Republic have signed the accord, which offers them Venezuelan petroleum products on preferential terms, Bloomberg relates. *********** 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, Marjorie C. Sabijon and Sheryl Joy P. Olano, Editors. Copyright 2006. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is $575 per half-year, delivered via e-mail. 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