/raid1/www/Hosts/bankrupt/TCRLA_Public/060418.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Tuesday, April 18, 2006, Vol. 7, Issue 76
Headlines
A R G E N T I N A
COMPANIA POLIBEL: Asks Court for Reorganization Approval
ESPECTACULOS DEL PILAR: Seeks Reorganization Approval from Court
NAIKE SRL: Verification of Proofs of Claim Ends on July 31
NUEVA GLORIA: Creditors Must Submit Proofs of Claim by May 10
LOMA NEGRA: Net Profit Up 41.8% in September-February Period
METROGAS: Executes Support Agreements Covering Notes
PAUTAS Y MEDIOS: Sets June 27 as Claims Verification Deadline
TELE NORTE: Stock Rises on Portugal Telecom's Bid Rumors
B A H A M A S
WINN-DIXIE: Lonestar Appointed & Committee Now Has Seven Members
B E R M U D A
GLOBAL CROSSING: To Provide US$14 Mil. Managed IP VPN Services
QUANTA CAPITAL: Considers Sale of Businesses
B R A Z I L
AOL LATIN: Brazilian Unit Raises US$541 Million from Auction
BANCO BRADESCO: Launches Market Relations Department
BANCO NACIONAL: Grants US$152.5 Mil. Loan to Dominican Republic
BANCO NACIONAL: Inks Debt Restructuring Pact With Rio de Janeiro
COMPANHIA DE BEBIDAS: Moody's Affirms Ba3 Currency Issuer Rating
COMPANHIA SIDERURGICA: Will Buy All Metalurgica Prada Shares
VARIG: Brazil's Aviation Authority Balks at OceanAir Deal
BRAZIL: JBIC Signs Loan Agreement for Espadarte FPSO Project
C A Y M A N I S L A N D S
INVESTCORP ALMATIS INVESTING: Claims Must be Filed by April 24
INVESTCORP ALMATIS ISLAMIC: Claims Filing Deadline Is on Apr. 24
JUROJIN LIMITED: Creditors Must Submit Proofs of Claim by May 4
LIDO CDO: Filing of Proofs of Claim Ends on May 4
NETLIST INT'L: Liquidator Stops Accepting Claims by May 3
C O L O M B I A
BANCOLOMBIA: Unconsolidated Net Income Reaches Ps252.679 Mil.
* COLOMBIA: 13 Former Telecom Firms to Conclude Liquidation
C U B A
* CUBA: Needs Foreign Investment in Sugar Milling & Cultivation
D O M I N I C A N R E P U B L I C
* DOMINICAN REPUBLIC: Gets US$152.5 Mil. from Brazilian Bank
G R E N A D A
* GRENADA: State Bonds Make Investors Cautious
H O N D U R A S
BANCO NACIONAL: Gives Fertilizers to Agriculture Producers
BANCO NACIONAL: In Danger of Shut Down Without Financial Support
* HONDURAS: Mobile Telephone Service Reaches Rural Areas
J A M A I C A
* JAMAICA: Plans to Import More Than 200,000 Tons of Cement
M E X I C O
CABLEMAS: Net Revenue Increases 14.7% in Fourth Quarter 2005
SATMEX: Signs Comprehensive Restructuring Accord with Holders
WILLIAMS SCOTSMAN: Prices US$100 Mil. Offering of 8.5% Sr. Notes
P E R U
* PERU: Inks Free Trade Accord with United States
P U E R T O R I C O
FIRST BANCORP: Receives Approval for Payment of Dividends
T R I N I D A D & T O B A G O
MIRANT CORP: Asks Court to Approve Mint Farm-Cascade Settlement
V E N E Z U E L A
* CITGO: Discounted Heating Oil Deliveries Reach US$29.5 Million
PETROLEOS DE VENEZUELA: Estimates La Ceiba Production at 40K BPD
- - - - -
=================
A R G E N T I N A
=================
COMPANIA POLIBEL: Asks Court for Reorganization Approval
--------------------------------------------------------
Compania Polibel S.A., a company operating in Buenos Aires,
Brazil, has requested for reorganization approval after failing
to pay its liabilities.
The reorganization petition, once approved by the court, will
allow the company to negotiate a settlement with its creditors
in order to avoid a straight liquidation.
The debtor can be reached at:
Compania Polibel S.A.
Guayra 1821
Buenos Aires, Argentina
ESPECTACULOS DEL PILAR: Seeks Reorganization Approval from Court
----------------------------------------------------------------
A Buenos Aires court is currently reviewing the merits of the
reorganization petition filed by Espectaculos del Pilar S.A.
Infobae reports that the company filed the request after
defaulting on its debt payments.
The reorganization petition, if granted by the court, will allow
Espectaculos del Pilar to negotiate a settlement with its
creditors in order to avoid a straight liquidation.
The debtor can be reached at:
Espectaculos del Pilar S.A.
Corrientes 753
Buenos Aires, Argentina
NAIKE SRL: Verification of Proofs of Claim Ends on July 31
-------------------------------------------------------------
Creditors of bankrupt company Naike S.R.L. are required to
present proofs of their claim to Ernesto Higueras, the court-
appointed trustee, for verification on or before July 31, 2006,
La Nacion reports. Creditors who fail to submit the required
documents by the said date will not qualify for any post-
liquidation distributions.
Buenos Aires' Court No. 3 declared the company bankrupt, in
favor of the company's creditor, AADI Capif Associacion Civil
Recaudora, owed $11,650.
Clerk No. 5 assists the court on the case.
The debtor can be reached at:
Naike S.R.L.
Salguero 1133
Buenos Aires, Argentina
The trustee can be reached at:
Ernesto Higueras
Sanchez de Loria 1944
Buenos Aires, Argentina
NUEVA GLORIA: Creditors Must Submit Proofs of Claim by May 10
-------------------------------------------------------------
Creditors of bankrupt company Nueva Gloria S.R.L. are required
to submit proofs of claim by May 10, 2006. Infobae relates that
the claims will undergo a verification phase. Claims that are
verified will then be submitted in court as individual reports
on June 23, 2006.
A general report, which will contain the company's audited
business records as well as a summary of events pertaining to
the liquidation, will be presented in court on Aug. 21, 2006.
Nueva Gloria was declared bankrupt by a Buenos Aires court.
Hector Jorge Vegetti was appointed as trustee.
The debtor can be reached at:
Nueva Gloria S.R.L.
Avenida de Mayo 1225
Buenos Aires, Argentina
The trustee can be reached at:
Hector Jorge Vegetti
Montevideo 711
Buenos Aires, Argentina
LOMA NEGRA: Net Profit Up 41.8% in September-February Period
------------------------------------------------------------
The net profit of Loma Negra -- the Argentine arm of Camargo
Correa Cimentos SA -- in the period starting Sep. 1, 2005, and
ending Feb. 28, 2006, rose 41.8% to ARS52.6 million, Business
News Americas reports.
BNamericas relates that the company posted ARS37.1 million in
the period of September 2004 to February 2005.
The period of September 2005 to February 2006 had net sales of
ARS598 million -- 38.9% higher than the same period 12 months
earlier, BNamericas states.
According to BNamericas, gross profits rose 18.9% year-on-year
to ARS232 million. Operating profits was up 26.8% during the
six month-period ending 2006, reaching ARS189 million. Last
year, the six-month period arrived at ARS149 million.
Production volume rose 27.9% to 2.25 million tonnes (Mt) from
the 1.76Mt in the same period of 2004-2005, BNamericas relates.
The company's total shareholders equity was valued at ARS875
million pesos at the end of February this year. BNamericas
states that it increase of 10.1% from last year.
On the other hand, net liabilities reached ARS935 million,
according to BNamericas. It increased 8.6%.
* * *
As reported on Feb 13, 2006, Moody's Latin America has assigned
a 'Ba3' rating and a 'Aa2.ar' national scale rating to the
US$100 million notes to be issued by Loma Negra, based on a full
and unconditional guaranty by Camargo Correa Cimentos S.A. aka
CCC. At the same time, Moody's has assigned a 'B2' (global
local currency) corporate family rating to Loma Negra and to its
outstanding notes, and concurrently an 'A2.ar' national scale
rating to the outstanding notes of Loma Negra, which are not
guaranteed. The rating outlook is stable.
METROGAS: Executes Support Agreements Covering Notes
----------------------------------------------------
MetroGAS S.A. disclosed that pursuant to its solicitations of
powers of attorney -- including its solicitation in Italy --
authorizing the execution on behalf of holders of its Existing
Notes of, and of support agreements committing holders of its
Existing Debt to execute, an acuerdo preventivo extrajudicial
aka APE and/or the sale on behalf of holders of its Existing
Debt for cash and/or the exchange on behalf of holders of its
Existing Debt for new securities, the company had accepted
powers of attorney and executed support agreements covering:
* 9-7/8% Series A Notes due 2003
* 7.375% Series B Notes due 2002
* Floating Rate Series C Notes due 2004, and
* its other unsecured financial indebtedness,
representing at least 95.0% of the principal amount of Existing
Debt aggregating the equivalent of approximately US$436.3
million determined on the basis of exchange rates on Dec. 16,
2005 -- the FX Reference Date referred to in the company's
Solicitation Statement dated Nov. 9, 2005, as amended and
supplemented, and the company's Italian Offer Document dated
March 13, 2006.
The company also announced that it would restructure the
Existing Debt exclusively pursuant to an out-of-court
restructuring and would not file the APE with a Buenos Aires
commercial court as contemplated by such Solicitation Statement
and such Italian Offer Document.
The Settlement Agent for the APE Solicitation outside Argentina
can be reached at:
JPMorgan Chase Bank, N.A.
Phone: +1 (212) 623-5136
Fax: +1 (212) 623-6216.
The Settlement Agent for the APE Solicitation inside Argentina
can be reached at:
JPMorgan Chase Bank, N.A.
Sucursal Buenos Aires
Phone/Fax: (54 11)-4348-3475/4325-8046.
PAUTAS Y MEDIOS: Sets June 27 as Claims Verification Deadline
-------------------------------------------------------------
The verification of creditors' claims for the Pautas y Medios
S.A. insolvency case will end on June 27, 2006, states Infobae.
Jose Teodoro Gonzalez, the court-appointed trustee will submit
the validation results as individual reports on Aug. 22, 2006.
He will also present a general report in court on Oct. 3, 2006.
On Feb. 28, 2007, the company's creditors will vote on a
settlement proposal prepared by the company.
The debtor can be reached at:
Pautas y Medios S.A.
Suipacha 190
Buenos Aires, Argentina
The trustee can be reached at:
Jose Teodoro Gonzalez
Avenida Cordoba 2444
Buenos Aires, Argentina
TELE NORTE: Stock Rises on Portugal Telecom's Bid Rumors
--------------------------------------------------------
Dow Jones Newswires reports that common stocks of Tele Norte
Leste Participacoes SA or Telemar rose significantly as rumors
of Portugal Telecom's bidding a stake in the company broke out.
However, analysts told Dow Jones that such a bid is unlikely to
materialize in the short-term as it would face regulatory
difficulties.
The company's shares rose to 12% on the morning of April 11 when
the rumors broke out but soon fell back as concerns facing the
bid became evident.
The problem of such an offer taking place is the fact that
Portugal Telecom is itself subject to an unfriendly acquisition
attempt by Sonae, a Portuguese conglomerate. Moreover,
Portugal's securities law prevents it from making major
takeovers while the process is still in progress.
Analyst Roger Oey at the Banif Investment Bank told Estado
newswire in an interview that the Sonae bid is improbable to be
concluded before September. It could still be prolonged if new
proposals are made.
Portugal Telecom also owns Brazil's Vivo Participacoes in
partnership with Spain's Telefonica Moviles. Hence, it further
complicates its rumored bid on Telemar since under Brazilian
law, it is banned from owning two competing wireless firms.
"The rumors didn't make much sense...Such a bid raises a lot of
questions," said Felipe Cunha, telecom analyst at the local
Brascan bank in Rio de Janeiro.
A discussion on Portugal Telecom's quitting Vivo to takeover
Telemar has already circulated the market.
"But to leave the growing mobile sector to buy into the fixed-
line market would go against the international trend away from
wireline assets," said Brascan's Cunha.
Telemar is controlled by a group of financial investors and
government banks. Investors have surmised they would not
hesitate to sell at the right price, as there is no other
telecom company in the group.
According to analysts, the rumor was spread to improve the
telecom company's shares in the short-term since its shares are
currently trading at a discount.
However, since Telemar's controllers have shown interest to sell
it, then it is likely that bid rumors will arise at various
points this year.
Telemar provides telecommunication services in South America.
It offers local, intra-regional long distance, and data
transmission services in 16 Brazilian states, which covers
approximately 64% of the country. Mobile services are provided
through its wireless unit Oi, and it has acquired data
transmission services provider Pegasus.
* * *
As reported on Mar. 2, 2006, Standard & Poor's Ratings Services
said it placed the 'BB' ratings of Telemar Norte Leste S.A. on
CreditWatch with positive implications following the raising of
the foreign and local currency sovereign credit ratings on
Brazil.
=============
B A H A M A S
=============
WINN-DIXIE: Lonestar Appointed & Committee Now Has Seven Members
----------------------------------------------------------------
As reported in the Troubled Company Reporter on Mar. 16, 2006,
Felicia S. Turner, the United States Trustee for Region 21,
informed the U.S. Bankruptcy Court for the Middle District of
Florida that R2 Investments, LDC, had resigned from the Official
Committee of Unsecured Creditors, effective Jan. 18, 2006.
Pursuant to Section 1102(a) of the Bankruptcy Code, Ms. Turner,
appoints Lonestar Partners, LLP, as a member of the Official
Committee of Unsecured Creditors.
The Creditors Committee is now comprised of:
1. Deutsche Bank Trust Company Americas
60 Wall Street
New York, NY 10005-2858
Attn: S. Berg
Tel: (212) 250-2921a
2. New Plan Excel Realty Trust, Inc.
420 Lexington Avenue
New York, NY 10170
Tel: (212) 869-3000
3. Kraft Foods Global, Inc.
Three Lakes Drive
Northfield, IL 60093
Attn: Sandra Schirmang, Senior Director of Credit
Tel: (847) 646-6719
4. Pepsico & Subsidiaries
7701 Legacy Drive 38-109
Plano, TX 75024
Attn: Scott Johnson, Group Credit Manager
Tel: (972) 334-7405
5. Capital Research & Management Company
333 South Hope Street
Los Angeles, CA 90071
Attn: Ellen Carr, Vice- President
Tel: (213) 486-9200
6. Wilmington Trust Company, as Indenture Trustee
1100 North Market Street
Rodney Square North
Wilmington, DE 19890
Attn: Michael W. Diaz, Vice President
Tel: (212) 415-0509
7. Lonestar Partners, LLP
1 Maritime Plaza, Suite 750
San Francisco, CA 94111
Attn: Vikar Tandon
Tel: (415) 362-7677
Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers. The Company operates stores across the
Southeastern United States and in the Bahamas and employs
approximately 90,000 people. The Company, along with 23 of its
U.S. subsidiaries, filed for chapter 11 protection on Feb. 21,
2005 (Bankr. S.D.N.Y. Case No. 05-11063, transferred Apr. 14,
2005, to Bankr. M.D. Fla. Case Nos. 05-03817 through 05-03840).
D.J. Baker, Esq., at Skadden Arps Slate Meagher & Flom LLP, and
Sarah Robinson Borders, Esq., and Brian C. Walsh, Esq., at King
& Spalding LLP, represent the Debtors in their restructuring
efforts. Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors. Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors. Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee. When the Debtors filed for protection from their
creditors, they listed $2,235,557,000 in total assets and
$1,870,785,000 in total debts. (Winn-Dixie Bankruptcy News,
Issue No. 35; Bankruptcy Creditors' Service, Inc., 215/945-
7000).
=============
B E R M U D A
=============
GLOBAL CROSSING: To Provide US$14 Mil. Managed IP VPN Services
--------------------------------------------------------------
Global Crossing announced that it is to provide managed IP VPN
services to the UK Learning and Skills Council. This three-year
contract renewal is worth approximately US$14 million and
provides a convergence-ready platform for voice, data and
videoconferencing services to 5,000 users at 54 locations across
the United Kingdom.
The LSC is responsible for all post-16 education and training
other than in universities. A network of 47 local councils work
alongside the Employment Service, the Small Business Service,
the National Training Organisations, further education and sixth
form colleges, and representatives of community groups, to meet
their training and education needs.
Global Crossing is providing a managed IP VPN service under the
Managed Telecommunications Services or Mts framework that it
operates on behalf of OGCbuying.solutions. The company has
provided the LSC with a managed voice service through Mts since
2001. This latest contract was awarded following a competitive
tender and extends the range of services provided to include
data, video conferencing, Internet access and a remote access
dial and VPN solution for the council's remote and home-based
personnel.
Global Crossing's management role under the contract includes
handling the LSC's incoming calls through Global Crossing's
centralized telephone operator service. This service processes
more than one million calls a year on behalf of government
customers from call centers at Crewe and Glasgow.
Malcolm Whyte, the LSC's director of operational services said:
"The continuation of our relationship with Global Crossing will
usher in new IP services and enable us to work more flexibly.
We are delighted to announce the renewal of this contract, which
we hope will allow us to make significant cash savings and
efficiency gains."
Global Crossing UK managing director, Phil Metcalf, said: "We
are extremely proud the LSC has entrusted us with the
responsibility of creating an IP environment that will cater to
all their communication needs well into the future. Winning
this business amid strong competition underscores our strength
in the provision of managed services to the government sector
and demonstrates that Global Crossing's converged services
proposition is hard to beat."
In the first phase of the project, Global Crossing will
implement the IP VPN and upgrade the existing estate of private
branch exchanges to provide IP telephony. The migration to IP
VPN from an existing ATM network will be conducted in a highly
flexible manner to enable the council to add or cease sites to
accommodate its changing office requirements. The council's
data center at Warwick is already connected to Global Crossing's
network, and high capacity links will be provided to the
Coventry head office and the eight largest regional councils.
Under the Mts framework agreement, Global Crossing provides a
full range of managed IP services to some 90 central government
departments, local authorities and executive agencies. In
total, Mts supports more than 120,000 users with highly secure
managed services.
About The Learning and Skills Council
The LSC exists to make England better skilled and more
competitive. It is responsible for planning and funding high-
quality vocational education and training for everyone. The LSC
has a single goal: to improve the skills of England's young
people and adults to world-class standards. Its vision is that
by 2010, young people and adults in England have the knowledge
and skills matching the best in the world and are part of a
truly competitive workforce. Established in 2001, the LSC works
nationally, regionally and locally from a network of offices
across the country.
About Global Crossing
Headquartered in Florham Park, New Jersey, Global Crossing
Ltd. -- http://www.globalcrossing.com/-- provides
telecommunications solutions over the world's first integrated
global IP-based network, which reaches 27 countries and more
than 200 major cities around the globe including Bermuda,
Argentina, Brazil, Chile, Mexico, Panama Peru and Venezuela.
Global Crossing serves many of the world's largest corporations,
providing a full range of managed data and voice products and
services. The company filed for chapter 11 protection on Jan.
28, 2002 (Bankr.S.D.N.Y. Case No. 02-40188). When the Debtors
filed for protection from their creditors, they listed
US$25,511,000,000 in total assets and US$15,467,000,000 in total
debts. Global Crossing emerged from chapter 11 on Dec. 9, 2003.
As of Dec. 31, 2005, Global Crossing's balance sheet reflects a
US$173 million equity deficit compared to a US$51 million of
positive equity at Dec. 31, 2004.
QUANTA CAPITAL: Considers Sale of Businesses
--------------------------------------------
Quanta Capital Holdings Ltd. disclosed in its 10-K filing with
the U.S. Securities and Exchange Commission that it is
considering the sale of all or some of its businesses.
The company also disclosed hiring JP Morgan Chase & Co. and
Friedman Billings Ramsey & Co. to help it look for strategic
alternatives including the run-off of certain product lines and
the use of excess capital to repay debt or return value to
subscribers.
Quanta said that as of March 29, about 2.3% of its policyholders
have cancelled their policies. The company also said it's not
writing new business in its professional liability,
environmental and other lines and is runninf off its surety
bonds business.
Quanta also admitted being written off the list of several of
its most important brokers, including AON Corp. and Marsh &
McLennan Companies Inc.
Furthermore, Quanta said in its filing that it participates in
the Lloyd's of London market through a syndicate. Lloyd's has
informed the company that it must diversify its capital base
with one or more third-party sources and have the funding in
place by Nov. 30, 2006.
Quanta said it believes it will be able to meet Lloyd's
requirements, but if it can't, it will no longer be able to
participate in Lloyd's in future underwriting years.
The company registered a US$54.7 million of net loss for the
fourth quarter of 2005 as a result of the 2004 hurricane season
when four storms hit Florida. Quanta's full-year loss for 2005
was US$105.9 million.
On Mar. 2, 2006, A.M. Best downgraded its financial strength
rating to B++ -- a rating too low to attract business from many
insurance buyers.
Material Weakness
PricewaterhouseCoopers, Quanta Capital's auditor, detected
several lapses in internal controls at Quanta, that could
prevent it from detecting a material accounting error.
PwC identified three material weaknesses:
1. The Company did not maintain a sufficient complement of
personnel within its U.S. accounting function with
appropriate experience and training commensurate with its
financial reporting requirements.
2. The Company did not maintain effective controls over the
accuracy and completeness of, and access to, certain
spreadsheets used in the Company's financial reporting
process.
3. The Company did not maintain effective controls over the
completion of reconciliations and analyses for gross and
ceded premiums, losses, other expenses, and the related
balance sheet accounts for its U.S. processed
transactions.
Some of the deficiencies detected were ones required under
corporate governance law Sarbanes-Oxley, which is binding on
publicly-listed companies.
The company has formed a Finance Internal Control Committee,
amongst other measures, and plans to hire a chief accounting
officer to help remedy the lack of controls.
Quanta Capital Holdings Ltd., a Bermuda holding company,
provides specialty insurance, reinsurance, risk assessment and
risk consulting products and services through its subsidiaries.
Through operations in Bermuda, the United States, Ireland and
the United Kingdom, Quanta focuses on writing coverage for
specialized classes of risk through a team of experienced,
technically qualified underwriters. The company offers
specialty insurance and reinsurance products that often require
extensive technical underwriting skills, risk assessment
resources and engineering expertise. Quanta is listed on the
NASDAQ stock market and trades under the symbol QNTA.
===========
B R A Z I L
===========
AOL LATIN: Brazilian Unit Raises US$541 Million from Auction
------------------------------------------------------------
The Brazilian unit of America Online Latin America last week
raised 1.16 billion reals (US$541 million) from the auction of
its assets, Business News Americas reports, citing a report from
the TI Inside online news site.
According to the same report, more than 1,200 bidders were
present during the auction of AOLA's 139 lots.
SuperBid, the auction organizer, said that 52% of the
participants came from the state of Sao Paulo, followed by Rio
Grande do Sul at 14%, Minas Gerais at 13% and Rio de Janeiro at
10%.
AOLA Brasil's Avaya PABX fetched the highest bid at 177,500
reals.
The auction followed the Internet Service Provider's decision to
cease its operations in Brazil on Mar. 17, 2006. AOLA
subscribers were transferred to ISP Terra.
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: Launches Market Relations Department
----------------------------------------------------
Brazilian private firm Banco Bradesco has combined the investor
relations and the social responsibility divisions to set up a
new department for market relations, the bank said in a
statement.
Banco Bradesco told Business News Americas that the market
relations department was created to provide information from the
bank to the market, analysts and investors, among others.
The new department will be headed by Jean Phillipe. Mr.
Phillipe will report to Domingos Figueiredo de Abreu -- the
managing director -- and to the investor relations director,
Milton Almicar Silva Vargas, BNamericas reports.
Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco
-- http://www.bradesco.com.br/-- prides itself on serving low-
and medium-income individuals in Brazil since the 1960s.
Bradesco is Brazil's largest private bank, with more than 3,000
banking branches, and also a leader in insurance and private
pension management. Bradesco has branches throughout Brazil as
well as one in New York, two in the Bahamas, and four in the
Cayman Islands. Bradesco offers Internet banking, insurance,
pension plans, annuities, credit card services (including
football-club affinity cards for the soccer-mad population), and
Internet access for customers. The bank also provides personal
and commercial loans, along with leasing services.
* * *
As reported in the Troubled Company Reporter on Feb. 23, 2006,
Moody's Investors Service shifted Banco Bradesco S.A.'s 'C-'
bank financial strength rating to positive from stable.
* * *
On Oct. 19, 2005, Moody's Investors Service upgraded Banco ABN
Amro Real S.A.'s long-term foreign currency deposit rating to B1
from B2. Moody's maintained a positive outlook on the rating.
This action followed Moody's upgrade of Brazil's foreign
currency ceiling for deposits to B1, from B2, and the foreign
currency country ceiling for bonds and notes to Ba3, from B1.
The country ceilings have a positive outlook.
BANCO NACIONAL: Grants US$152.5 Mil. Loan to Dominican Republic
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA aka BNDES
approved two financing operations to Brazilian exports for
construction works of two hydroelectric power plants in the
Dominican Republic. The first, in the value of US$81.3 million,
will finance foreign sales of Brazilian goods and services to be
carried out by Construtora Norberto Odebrecht or CNO for the UHE
Palomino Project. The total investment is US$226.3 million.
The second totalizes US$71.2 million in financing to Brazilian
exports of goods and services to be carried out by Construtora
Andrade Gutierrez for the UHE Las Placetas Project. The total
value of that investment is US$ 286.2 million.
In both projects, in example of any and all operations of BNDES-
Exim, the Bank only finances exports of Brazilian goods and
services. Both financings will be carried out in the ambit of
the Post-Shipment line, financing to trade, of BNDES-Exim and
will have as importer the Dominican government, represented by
Corporacion Dominicana de Empresas Electricas Estatales or
CDEEE.
The operations will be guaranteed by instruments coursed in
Reciprocal Credit and Payment Agreement of the Latin American
Association of Integration aka Aladi and will further count on
the Fiduciary Insurance to Export for the covering of 100% of
the political and extraordinary risks.
Both hydroelectric projects will be considered priorities by the
Dominican government, due to the energy crisis that the country
is going through. One of the goals of CDEEE is to duplicate the
hydroelectric energy generation in the country, which currently
has an energy headquarters very concentrated in thermal energy.
Currently, CDEEE operates 14 hydroelectric power plants, with
total installed capacity of 460 MW.
CNO and Andrade Gutierrez, ranking among the 25 major
international constructor companies, already are traditional
companies in the Dominican market. Among the Brazilian high
value-added merchandise, consolidated to exports of engineering
and construction services for the two Dominican UHEs, turbines,
hydro generators, transformers, valves, metal towers, vehicles
standing out.
UHE Palomino will have installed capacity of 99 MW, constituted
of a water storage dam located in Boca de Los Rios, in the
confluence of the rivers Yaque Del Sur and Blanco.
UHE Las Placetas will have installed capacity of 91.2 MW. The
original plan starts in Rio Bao, with the construction of a
storage dam. The dammed water will be leaded by gravity to Rio
Jagua through a tunnel.
With the financing operations to exports of Brazilian goods and
services to the construction works of the hydroelectric power
plants of Palomino and Las Placetas, BNDES reinforces position
of federal agent in the Latin American integration process,
enabling the foreign sales of Brazilian goods and services in
infrastructure projects in the region.
Besides the operations of Palomino and Las Placetas, BNDES
counts on financings to exports of Brazilian goods and services
destined to infrastructure projects in the Dominican Republic in
the amount of US$310 million. Among those projects UHE Pinalito
stand out, with financings to Brazilian exports of US$101.5
million, the Northwest Aqueduct, phase 1 and phase 2, in the
amount of US$194 million, and the project of roadway
signalization in Santo Domingo, with US$13.8 million.
* * *
As reported by Troubled Company Reporter on March 3, 2006,
Standard & Poor's Ratings Services raised its foreign currency
counterparty credit rating on Banco Nacional de Desenvolvimento
Economico e Social S.A. aka BNDES to 'BB' with a stable outlook
from 'BB-' with a positive outlook. The company's local
currency credit rating was also shifted to 'BB+' with a stable
outlook from 'BB' with a positive outlook.
* * *
Fitch Ratings assigned these ratings on the Dominican Republic:
Rating Rating Date
------ -----------
Country Ceiling B- May 11, 2005
Long Term IDR B- Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating B May 11, 2005
BANCO NACIONAL: Inks Debt Restructuring Pact With Rio de Janeiro
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA or BNDES
and the State of Rio de Janeiro signed on April 12, 2006, an
agreement of state debt rescheduling before the Bank, in the
amount of R$847.5 million. With the agreement signed, the
financial pendencies between the State and BNDES and the
disbursements of the Bank destined to the subway of Rio de
Janeiro are normalized. From December 2005 to this date the
Bank disbursed R$82 million. Currently, there is a balance of
R$103.4 million to be released, referring to financings for the
extension of the subway until station Cantagalo, in Copacabana,
whose termination is forecast for 2007.
Under the agreement, the debt total value will be paid in
monthly and consecutive installments, which end up in December
2017, with correction by the Long Term Interest Rate plus 2.5%
of interest p.a.. Out of the total of R$847.5 million, R$146.5
million is referred to due debts and R$701 million to values
coming due.
The financial support of BNDES for the subway system structure
of Rio de Janeiro ascend to 1982, with financings that totalize
approximately R$1.4 billion, the equivalent to 60% of the total
investments performed by the State of Rio de Janeiro. In July
2003, the BNDES financings, concerning six agreements still in
effective, entered upon a problematic course basis, in light of
the default of the State that interrupted the payment as of
December 2002. That caused, on part of BNDES, in the
interruption of financings releases and posterior inscription of
State of Rio de Janeiro in the Central Bank's Public Sector
Credit Control Registry.
After negotiations with the State, the board of BNDES, seeking
the receipt of its credit and regulation of releases flow of the
remaining balance, resolved, in December 2003, on the
consolidation, acknowledgment and rescheduling of the State
debt.
Abiding by the article 32, Brazilian Fiscal Responsibility Law,
the State submitted to the operation to the Brazilian Treasury
Department, whose authorization constitutes previous condition
for hiring. The approval of the process by the Brazilian
Treasury Department was in March 2006.
The amount of releases for the State, between 2003 and 2005, was
of R$10.7 billion, being R$3.3 billion in 2003, R$3.1 billion in
2004 and R$4.3 billion in 2005, considering all operational
modalities of the Bank.
The support of the Bank contributed for the growth of the GDP of
Rio de Janeiro, of 5.1% in 2005. Last year, the State of Rio de
Janeiro received the second highest volume of releases by the
Bank.
Among the diverse supported sectors of the economy of Rio de
Janeiro, it should be noted the role of BNDES in the Oil
industry, with the support to constructions of the platforms P-
43, P-48; where approximately R$250 million were disbursed for
those projects.
In 2005, besides the disbursements for the construction of
platform P-52, which totalized US$210.5 million, in 2005, the
Bank approved two financings in the total amount of up to US$674
million, destined to the construction of other two platforms for
Petrobras, P-51 (up to US$402 million) and P-54 which is up to
US$272 million. In the natural gas sector a financing of the
gas pipeline of CEG until Niterai, Sao Goncalo and Petropolis of
about R$19 million was approved, besides the extension of a gas
network in the municipality of Rio and Baixada Fluminense of
R$58 million. We should also highlight the approval of the
financing for the project Northeast and Southeast Network of
Petrobras of R$165 million.
In the Science and Technology sector, there was a financing to
Petrobras of R$64 million for the development of new domestic
suppliers of materials, equipment and engineering services, in
the ambit of Prominp.
* * *
As reported by Troubled Company Reporter on March 3, 2006,
Standard & Poor's Ratings Services raised its foreign currency
counterparty credit rating on Banco Nacional de Desenvolvimento
Economico e Social S.A. aka BNDES to 'BB' with a stable outlook
from 'BB-' with a positive outlook. The company's local
currency credit rating was also shifted to 'BB+' with a stable
outlook from 'BB' with a positive outlook.
COMPANHIA DE BEBIDAS: Moody's Affirms Ba3 Currency Issuer Rating
----------------------------------------------------------------
Moody's Investors Service affirmed the Baa3 global local
currency and Ba3 foreign currency issuer rating of Companhia de
Bebidas das Americas aka AmBev after the company's announcement
of its agreement to increase its shareholding in Quilmes
Industrial S.A. or Quinsa for a total cash purchase price of
approximately US$1.2 billion or BRL2.6 billion. The rating
outlook for the Baa3 global local currency rating is stable
while the outlook for the Ba3 foreign currency issuer rating is
positive. The Ba3 foreign currency issuer rating and outlook
are constrained by Brazil's Ba3 sovereign ceiling with a
positive outlook.
The rating affirmation is based on our view that this
transaction is consistent with AmBev's overall stated growth
strategy and will result in a marginal change in overall debt
protection measures. The company intends to use a combination
of new debt and internally generated cash to fund this
transaction. Given the fact that completion of the deal is
dependent on regulatory clearance with the expected timing
largely uncertain, the additional debt that AmBev will incur as
a result of this transaction may also vary. However, even if we
conservatively consider an additional US$1.2 billion of debt at
AmBev as a result of this transaction, without considering the
EBITDA that the additional 34.46% of Quinsa would contribute,
Total Debt to EBITDA would still be comfortably under 2.0 times,
one of the parameters Moody's has set before it would consider
downgrading the existing Baa3 global local currency rating of
AmBev. Additionally, the affirmation of AmBev's existing
ratings reflects Moody's assumption that the company will
continue to manage its leverage within its announced parameters
(net debt to EBITDA of 1.3 times) and that it would reduce
shareholder returns to fund any acquisition activity, or to stem
any significant deterioration in any of its businesses.
AmBev, based in Sao Paulo, Brazil, is the largest brewer in
Latin America and the fifth largest brewer in the world.
COMPANHIA SIDERURGICA: Will Buy All Metalurgica Prada Shares
------------------------------------------------------------
Steelmaker Companhia Siderurgica Nacional aka CSN plans to buy
all of steel can maker Metalurgica Prada shares, according to a
company filing with Comissao de Valores Mobiliarios -- the
Brazilian securities regulator.
According to Business News Americas, CSN will discuss the
planned acquisition during the meeting of the shareholders on
April 28, 2006.
CSN, says BNamericas, said that it would buy all the shares from
Prada's controlling group for a symbolic sum of BRL1 and
capitalize BRL175 million of credit that Prada owes it.
Pedro Galdi -- analyst of ABN Amro Real brokerage -- was quoted
by BNamericas saying that the deal would be made so that CSN
could recover the money Prada owes it.
CSN could sell the can producer in the future, Mr. Galdi told
BNamericas.
BNamericas relates that Prada -- founded in 1936 -- is the
country's sole producer of tin and chromed foils used in the
steel can production process. It produces more than 1 billion
steel cans annually. Kiskidee, a US investment fund, has a
97.4% stake in the company.
BNamericas recalls that CSN reported Prada's net equity was in
the red by BRL68 million at the end of February.
"This acquisition does not add much to CSN. It is not a
strategic operation and does not have great impact, as the
company would acquire a small business," Mr. Galdi was quoted by
BNamericas saying.
* * *
On Jan. 26, 2006, Standard and Poors' Rating Services assigned a
'BB' corporate credit rating on Brazilian flat carbon steelmaker
Companhia Siderurgica Nacional.
The 'BB' corporate credit rating on CSN reflects the company's
exposure to volatile demand and price cycles, increasing
competition in its home and predominant market of Brazil,
aggressive dividend policy and capital investment plan, and
sizable gross-debt position. These risks are partly offset by
CSN's privileged cost position and sound operating profile,
favorable market position in Brazil, strong export capabilities
to offset occasional domestic demand sluggishness, and
increasing business diversification.
CSN is one of the lowest-cost steel producers in the world,
which is a result of its access to proprietary, high-quality
iron ore (at the Casa de Pedra mine); self-sufficiency in
energy; streamlined facilities; and logistics advantages. This
is in addition to the group's strong market position in the
fairly concentrated steel industry in Brazil.
VARIG: Brazil's Aviation Authority Balks at OceanAir Deal
---------------------------------------------------------
The Civial Aviation Authority of Brazil has blocked a proposed
agreement that would have called for OceanAir Inc. to takeover
some of Viacao Aerea Riograndense aka Varig's unprofitable
routes, according a report from the M2 Communications Ltd.
In the same report, Varig said that the deal was stopped because
flight slots and airport space cannot be negotiated.
Varig, according to reports, is at risk of being grounded for
non-payment of airport fees in Brazil, which the airline denied.
About OceanAir Inc.
Headquartered in Miami, Florida, OceanAir Inc. provides world
wide freight forwarding services. Specialists in Latin America
and shipment of personal effects.
About VARIG
Headquartered in Rio de Janeiro, Brazil, VARIG S.A. is Brazil's
largest air carrier and the largest air carrier in Latin
America. VARIG's principal business is the transportation of
passengers and cargo by air on domestic routes within Brazil and
on international routes between Brazil and North and South
America, Europe and Asia. VARIG carries approximately 13
million passengers annually and employs approximately 11,456
full-time employees, of which approximately 133 are employed in
the United States.
The Company, along with two affiliates, filed for a judicial
reorganization proceeding under the New Bankruptcy and
Restructuring Law of Brazil on June 17, 2005, due to a
competitive landscape, high fuel costs, cash flow deficit, and
high operating leverage. The Debtors may be the first case
under the new law, which took effect on June 9, 2005. Similar
to a chapter 11 debtor-in-possession under the U.S. Bankruptcy
Code, the Debtors remain in possession and control of their
estate pending the Judicial Reorganization. Sergio Bermudes,
Esq., at Escritorio de Advocacia Sergio Bermudes, represents the
carrier in Brazil.
Each of the Debtors' Boards of Directors authorized Vicente
Cervo as foreign representative. In this capacity, Mr. Cervo
filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case
Nos. 05-14400 and 05-14402). Rick B. Antonoff, Esq., at
Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the
United States. As of March 31, 2005, the Debtors reported
BRL2,979,309,000 in total assets and BRL9,474,930,000 in total
debts.
BRAZIL: JBIC Signs Loan Agreement for Espadarte FPSO Project
------------------------------------------------------------
The Japan Bank for International Cooperation's Governor Kyosuke
Shinozawa signed on March 31, 2006, a loan agreement totaling up
to US$210 million for financing the Espadarte FPSO Project in
Brazil. The loan is cofinanced with:
-- Mizuho Corporate Bank (mandated lead arranger),
-- ING Bank N.V., Tokyo Branch,
-- Bank of Tokyo-Mitsubishi UFJ,
-- Sumitomo Mitsui Banking Corporation, and
-- Citibank, N.A., Tokyo Branch
with JBIC providing Brazil's political risk guarantee for the
portion cofinanced by private financial institutions. This is
the first loan JBIC has extended in project financing for a
project in Brazil.
Under this Project, Espadarte MV 14 B.V., where MODEC,
Mitsubishi Corporation, and Mitsui & Co., Ltd. have equity
interests, will offer FPSO, with production capacity of 100
thousand barrels per day and storage capacity of 1.6 million
barrels, to the Espadarte Sul oil field, a deepwater oil field
with a depth of 1,350 meters located 80 to 100 kilometers
offshore Campos in the State of Rio de Janeiro, Brazil. MODEC
will provide FPSO for 8 years based on the charter contract with
Petrobras, Brazil's state-owned oil company, to produce,
process, store and offload crude oil, with Modec Servicos de
Petroleo do Brasil Ltda. or Modec do Brazil, a subsidiary of
MODEC, operating and maintaining FPSO.
As oil companies in many countries are aggressively developing
offshore oil fields because of the importance of securing energy
resources, the FPSO market is expected to expand further. This
is the first FPSO project undertaken for Petrobras by MODEC, one
of the leading companies of the FPSO business. There are
expectations that this Project will open the way for
participation in other FPSO projects of Petrobras, who is a
major user in the global FPSO market. Other participating
Japanese firms are also seeking to strengthen their ties with
Petrobras through this Project to expand their business into
joint resource development projects and other projects where
Petrobras is involved. JBIC is thus supporting their efforts to
develop overseas business.
The Government of Brazil has set the target of becoming a net
exporter of oil and oil products by 2006 through increased oil
production. Based on this government target, Petrobras is
targeting the oil production of 2.3 million barrels per day in
2010 as an important benchmark in business operations. Since
the Project plays an important role in achieving this target,
this loan is expected to contribute to the Brazilian economy
through increased oil production.
Brazil has abundant energy resources and agricultural crops and
boasts the largest economy in Latin America, which attracted
attention through its market potential. Japanese firms are also
actively engaging in business operations, mainly in the energy
and natural resource sector. In May 2005, Brazilian President
Lula da Silva paid an official visit to Japan and held a summit
with Prime Minister Koizumi on May 26. Following the bilateral
summit, the Brazilian and Japanese governments launched "the
Joint Program for Revitalization of Economic Relations between
Japan and Brazil". The Program called for the promotion of
trade and investment, enhanced cooperation for energy and
natural resource development, and cooperation for infrastructure
development in Latin America. JBIC will continue to cooperate
with Brazil in its infrastructure development, export promotion,
and energy-related projects, while supporting the projects that
will serve Japanese firms in their overseas business
development, thereby providing comprehensive support for
sustainable economic growth in Brazil.
* * *
As reported on April 6, 2006, Fitch assigned these ratings to
Brazil:
-- Foreign currency Issuer Default Rating (IDR) 'BB-';
-- Local currency Issuer Default Rating (IDR) 'BB-';
Fitch said the rating outlook is positive.
===========================
C A Y M A N I S L A N D S
===========================
INVESTCORP ALMATIS INVESTING: Claims Must be Filed by April 24
--------------------------------------------------------------
Creditors of Investcorp Almatis Investing Limited are required
to submit particulars of their debts or claims on or before
April 24, 2006, to Westport Services Limited, the company's
appointed liquidator. Failure to do so will exclude them from
receiving the benefit of any distribution that the company will
make.
Investcorp Almatis Investing started liquidating assets on March
13, 2006.
The liquidator can be reached at:
Westport Services Limited
Attention: Patricia Tricarico
P.O. Box 1111
Grand Cayman, Cayman Islands
Tel: (345) 949-5122
Fax: (345) 949-7920
INVESTCORP ALMATIS ISLAMIC: Claims Filing Deadline Is on Apr. 24
----------------------------------------------------------------
Creditors of Investcorp Almatis Islamic, which is being
voluntarily wound up, are required to present proofs of claim on
or before April 24, 2006, to Westport Services Limited, the
company's liquidator.
Investcorp Almatis Islamic started liquidating assets on March
13, 2006.
Creditors must send their full names, addresses, descriptions,
the full particulars of their debts or claims and the names and
addresses of their solicitors (if any) to the liquidator.
Failure to do so will exclude them from receiving the benefit of
any distribution that the company will make.
The liquidator can be reached at:
Westport Services Limited
Attention: Patricia Tricarico
P.O. Box 1111
Grand Cayman, Cayman Islands
Tel: (345) 949-5122
Fax: (345) 949-7920
JUROJIN LIMITED: Creditors Must Submit Proofs of Claim by May 4
---------------------------------------------------------------
Jurojin Limited's creditors are required to submit particulars
of their debts or claims on or before May 4, 2006, to the
company's appointed liquidators, Jon Roney and Richard Gordon.
Failure to do so will exclude them from receiving the benefit of
any distribution that the company will make.
Jurojin Limited started liquidating assets on March 17, 2006.
The liquidators can be reached at:
Jon Roney
Richard Gordon
Maples Finance Limited
P.O. Box 1093 George Town
Grand Cayman, Cayman Islands
LIDO CDO: Filing of Proofs of Claim Ends on May 4
-------------------------------------------------
Creditors of Lido CDO are required to submit proofs of their
debt or claim on or before May 4, 2006, to the company's
appointed liquidators, Mora Goddard and Emile Small. Failure to
do so will exclude them from receiving the benefit of any
distribution that the company will make.
Lido CDO started liquidating assets on March 21, 2006.
The liquidators can be reached at:
Mora Goddard
Emile Small
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
NETLIST INT'L: Liquidator Stops Accepting Claims by May 3
---------------------------------------------------------
Creditors of Netlist International are required to submit
particulars of their debts or claims on or before May 3, 2006,
to the company's appointed liquidator - Trident Directors.
Failure to do so will exclude them from receiving the benefit of
any distribution that the company will make.
Netlist International started liquidating assets on March 23,
2006.
The liquidator can be reached at:
Trident Directors
Attention: Donald Spence
P.O. Box 847, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949-0880
Fax: (345) 949-0881
===============
C O L O M B I A
===============
BANCOLOMBIA: Unconsolidated Net Income Reaches Ps252.679 Mil.
-------------------------------------------------------------
Bancolombia reported accumulated unconsolidated net income of
Ps252,679 million as of March 31, 2006. For the first three
months of 2006, the total net interest, including investment
securities, amounted to Ps345,445 million. Additionally, total
net fees and income from services amounted to Ps132,416 million.
Total assets amounted to Ps24.18 trillion in March 2006, total
deposits totaled Ps14.20 trillion, and Bancolombia's total
shareholders' equity amounted to Ps2.98 trillion.
Bancolombia's unconsolidated level of past due loans as a
percentage of total loans was 3.24% as of March 31, 2006, and
the level of allowance for past due loans was 127.56%.
According to ASOBANCARIA, Colombia's national banking
association, Bancolombia's market share of the Colombian
Financial System in March 2006 were:
-- 16.9% of total deposits,
-- 20.6% of total net loans,
-- 16.6% of total savings accounts,
-- 19.6% of total checking accounts, and
-- 15.1% of total time deposits.
* * *
As reported by the Troubled Company Reporter on March 13, 2006,
Moody's Investors Service assigned a 'Ba3' rating on Bancolombia
S.A.'s long-term foreign currency deposit and changed the
outlook to stable from negative.
* * *
On Dec. 22, 2005, Fitch Ratings affirmed the ratings assigned to
Bancolombia, as:
-- Long-term/short-term foreign currency at 'BB/B';
-- Long-term/short-term local currency at 'BBB-/F3';
-- Individual at 'C';
-- Support at '3'.
The ratings assigned to Bancolombia and subsidiaries reflect its
dominant Colombian franchise, sound asset quality, and solid
performance, which should be further strengthened by the recent
merger with Conavi and Corfinsura and, in turn, boost capital,
which weakened with the merger. The ratings also factor in the
challenges posed by operational integration, its high exposure
to the Colombian government, and the risks inherent in its
operating environment.
* COLOMBIA: 13 Former Telecom Firms to Conclude Liquidation
-----------------------------------------------------------
The finance ministry has until the end of April to conclude the
liquidation of 13 Colombian local telephony providers formerly
associated with state-run Telecom, La Republica reports.
Business News Americas relates that Telebuenaventura, Teleupar,
Teletulua y Telesantarosa were liquidated on Jan. 31, 2006, and
on March 31, 2006, Telecartagena and Telenariao stopped
operations.
The firms' liquidation followed that of Telecom in July 2003
when its assets were taken over by Colombia Telecomunicaciones,
BNamericas states.
BNamericas recalls that another spin-off firm -- Telecom en
Liquidacion -- exists to manage the former entity's debts
particularly pension liabilities with workers and ex-employees,
and debts with suppliers.
* * *
On May 30, 2005, Fitch Ratings affirmed Colombia's ratings as:
-- Long-term foreign currency 'BB';
-- Country ceiling 'BB';
-- Local currency 'BBB-';
-- Short-term 'B'.
Fitch said the Rating Outlook is Stable.
=======
C U B A
=======
* CUBA: Needs Foreign Investment in Sugar Milling & Cultivation
---------------------------------------------------------------
Cuba is looking for direct foreign investment in sugar milling
and cultivation, Cuban and foreign sources told Reuters.
Reuters reports that at least three firms -- all having long-
term business experience in Cuba -- have responded and showed
interest in investing in and administering mills as well as
adjoining cane plantations.
The companies however have asked to remain anonymous while talks
proceed, Reuters relates.
A potential investor told Reuters that the companies said they
were given the green light at the highest level to discuss
milling and cultivation.
Reuters states that the sources expected hard bargaining before
the first milling venture could be signed, saying that there are
still many issues yet to be resolved.
"Investors want to administer the mills, higher percentages of
shares and pay sugar farmers and workers more," a Cuban sugar
expert was quoted by Reuters saying.
According to Reuters, the sources said the state-run industry
has been open to direct investment but the government is only
interested in a few derivatives and mechanical ventures.
Cuba was interested in forming ventures to produce sugar, syrup,
ethanol, alcohol, energy and other derivatives and negotiations
include the resources necessary for the development of cane,
Jose Rivera Ortiz -- director of Zerus, a company empowered to
sign joint ventures -- told Opciones, the official business
weekly.
Reuters reports that the sugar industry of Cuba has been in
decline since the former soviet Union crumbled, depriving it of
a preferential market. It was once the world's biggest exporter
with raw sugar output reaching 8 million tonnes in 1990. Sugar
exports currently account for less than 5% of Cuba's foreign
exchange earnings.
Reuters recalls that 71 of the 156 mills were shut down and
dismantled in 2003 when sugar prices were around $0.05 per
pound. About 60% of plantations were relegated to other uses.
In 2005, the country reported the lowest harvest in a century
-- about 1.3 million tonne. Reuters states that it led to more
closings until only 42 mills remained open this year, though
closed mills were conserved.
Reuters reports that the country wants to boost sugar production
starting this year by increasing acreage as well as the use of
fertilizer and herbicides, purchasing new equipment and
restarting operations in some 30 mills.
Sugar prices, says Reuters, have surged since 2003 as high oil
prices led to raised interest in sugar-based ethanol as an
alternative fuel for motorized vehicles. A Cuban economist told
Reuters that prices are expected to remain high in the
foreseeable future so both the government and investors have a
big incentive.
According to Reuters, President Fidel Castro was alarmed by the
sugar industry's weakening while prices soared.
In an emergency meeting of the industry in February, President
Castro ordered daily reports from the 42 mills in operation, a
crash planting plan, more supplies and said essential spare
parts for agricultural equipment should be flown in from Europe,
Reuters reports.
* * *
Moody's assigned these ratings on Cuba:
-- CC LT Foreign Bank Depst, Caa2
-- CC LT Foreign Curr Debt, Caa1
-- CC ST Foreign Bank Depst, NP
-- CC ST Foreign Curr Debt, NP
-- Issuer Rating, Caa1
===================================
D O M I N I C A N R E P U B L I C
===================================
* DOMINICAN REPUBLIC: Gets US$152.5 Mil. from Brazilian Bank
------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA aka BNDES
approved two financing operations to Brazilian exports for
construction works of two hydroelectric power plants in the
Dominican Republic. The first, in the value of US$81.3 million,
will finance foreign sales of Brazilian goods and services to be
carried out by Construtora Norberto Odebrecht or CNO for the UHE
Palomino Project. The total investment is US$226.3 million.
The second totalizes US$71.2 million in financing to Brazilian
exports of goods and services to be carried out by Construtora
Andrade Gutierrez for the UHE Las Placetas Project. The total
value of that investment is US$ 286.2 million.
In both projects, in example of any and all operations of BNDES-
Exim, the Bank only finances exports of Brazilian goods and
services. Both financings will be carried out in the ambit of
the Post-Shipment line, financing to trade, of BNDES-Exim and
will have as importer the Dominican government, represented by
Corporacion Dominicana de Empresas Electricas Estatales or
CDEEE.
The operations will be guaranteed by instruments coursed in
Reciprocal Credit and Payment Agreement of the Latin American
Association of Integration aka Aladi and will further count on
the Fiduciary Insurance to Export for the covering of 100% of
the political and extraordinary risks.
Both hydroelectric projects will be considered priorities by the
Dominican government, due to the energy crisis that the country
is going through. One of the goals of CDEEE is to duplicate the
hydroelectric energy generation in the country, which currently
has an energy headquarters very concentrated in thermal energy.
Currently, CDEEE operates 14 hydroelectric power plants, with
total installed capacity of 460 MW.
CNO and Andrade Gutierrez, ranking among the 25 major
international constructor companies, already are traditional
companies in the Dominican market. Among the Brazilian high
value-added merchandise, consolidated to exports of engineering
and construction services for the two Dominican UHEs, turbines,
hydro generators, transformers, valves, metal towers, vehicles
standing out.
UHE Palomino will have installed capacity of 99 MW, constituted
of a water storage dam located in Boca de Los Rios, in the
confluence of the rivers Yaque Del Sur and Blanco.
UHE Las Placetas will have installed capacity of 91.2 MW. The
original plan starts in Rio Bao, with the construction of a
storage dam. The dammed water will be leaded by gravity to Rio
Jagua through a tunnel.
With the financing operations to exports of Brazilian goods and
services to the construction works of the hydroelectric power
plants of Palomino and Las Placetas, BNDES reinforces position
of federal agent in the Latin American integration process,
enabling the foreign sales of Brazilian goods and services in
infrastructure projects in the region.
Besides the operations of Palomino and Las Placetas, BNDES
counts on financings to exports of Brazilian goods and services
destined to infrastructure projects in the Dominican Republic in
the amount of US$310 million. Among those projects UHE Pinalito
stand out, with financings to Brazilian exports of US$101.5
million, the Northwest Aqueduct, phase 1 and phase 2, in the
amount of US$194 million, and the project of roadway
signalization in Santo Domingo, with US$13.8 million.
* * *
As reported by Troubled Company Reporter on March 3, 2006,
Standard & Poor's Ratings Services raised its foreign currency
counterparty credit rating on Banco Nacional de Desenvolvimento
Economico e Social S.A. aka BNDES to 'BB' with a stable outlook
from 'BB-' with a positive outlook. The company's local
currency credit rating was also shifted to 'BB+' with a stable
outlook from 'BB' with a positive outlook.
* * *
Fitch Ratings assigned these ratings on the Dominican Republic:
Rating Rating Date
------ -----------
Country Ceiling B- May 11, 2005
Long Term IDR B- Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating B May 11, 2005
=============
G R E N A D A
=============
* GRENADA: State Bonds Make Investors Cautious
----------------------------------------------
A number of institutional investors have become wary in
investing in government debt after Grenada defaulted on its bond
issue in the previous year, the Nation News relates.
Grenada's economy took a turn for the worse when Hurricane Ivan
happened in 2004.
According to the Nation News, among those who suffered losses
due to the restructured Grenada bond were:
-- Fortress Caribbean High Interest Fund;
-- RBTT; and
-- Republic Bank and Barbados National Bank.
As a direct result of the losses it suffered, Fortress Caribbean
has decided to shift its portfolio towards corporate bond
issues.
Ryan Proudfoot, BNB Finance and Trust's general manager,
admitted to the Nation News that vulnerability to hurricanes had
become a great factor when investing in government debt but he
said that the Grenada situation "had not singularly changed our
opinion on these investments".
Mr. Proudfoot set Barbados as an example, taking into
consideration its high investment rating.
"Barbados almost never goes to the region to raise U.S. dollars
because it can easily access the cheapest financing from the
euro dollar market . . . Some of Grenada's foreign currency debt
was held by regional institutions mainly because it was issued
so long ago and the rates were really good," Mr. Proudfoot told
Barbados Business Authority.
Chief Executive Venkat Raman of the Caribbean Information &
Credit Rating Services remarked to the Nation News that it is
not as much as being hit by a hurricane that is the biggest
factor but how quickly the economy of that country can recover
from such damage.
"With Grenada defaulting, it has heightened the sensitivity of
investors; that a lot of the smaller economies are in reality a
lot more vulnerable than they might have perceived them to be,"
Venkat pointed out.
* * *
As reported by the Troubled Company Reporter on March 21, 2006,
Standard & Poor's Ratings Services affirmed its 'B-' long-term
and 'C' short-term sovereign credit ratings on Grenada. The
outlook on the long-term ratings remains stable.
The ratings on Grenada are constrained by large government debt,
which, at an estimated 118% of GDP in 2006 (98% of GDP on a net
basis), is one of the highest among the 110 sovereigns rated by
Standard & Poor's. The debt burden has been partly alleviated
by the restructuring completed in November 2005, which extended
the maturity of roughly US$261 million (or 44% of the total) in
debt to 2025 and reduced the interest payment by more than half,
to about 2.5% of GDP in 2006.
===============
H O N D U R A S
===============
BANCO NACIONAL: Gives Fertilizers to Agriculture Producers
----------------------------------------------------------
Banco Nacional de Desarrollo Agricola aka Banadesa, a Honduran
development bank, will provide fertilizers and seeds to 180,000
small agriculture producers, Business News Americas reports.
According to BNamericas, this is to help the producers increase
their production and help them take advantage of the Central
American Free Trade Agreement aka Cafta.
BNamericas relates that 97% of the country's agroproducts will
enter the US tariff-free when Cafta comes into effect.
As reported in the Troubled Company Reporter on April 10, 2006,
Honduras, together with Nicaragua, formally joined a free trade
agreement with the US.
At a ceremony to inaugurate the Central American Free Trade
Agreement, Honduran President Manuel Zelaya was quoted by the
Associated Press as saying taht his country is embarking on a
"different and extremely important path for the strengthening of
democracy." The treaty, he added, is "a way for us to broaden
our growth possibilities and reduce our poverty."
The deal is designed to eliminate tariff and non-tariff barriers
among the participating countries and is part of Washington's
push to strike free trade deals with nations around the world as
a way of boosting U.S. exports.
As reported in the Troubled Company Reporter on Feb. 7, 2006,
Banadesa has been asked by the Honduran National Commission of
Banks and Insurance to infuse HNL672.2 million in capital to
prevent the agency's closure, according to the Honduras This
Week Online.
In a press conference, Enrique Castejon, Banadesa's president,
said that after he assumed control of the bank, he asked
financial authorities to help Banadesa recuperate. However,
CNBS has asked the bank to put into place an enormous amount of
financial reserves, despite the recuperation of the bank and its
mission.
Mr. Castejon is against the CNBS applying the principle of
"business in march" to the bank as this indicates that the
organization is presumed to be in permanent existence, except
for some specifications. The figures of their financial
statements will represent historical values, or modifications of
them, which have been systematically obtained.
BANCO NACIONAL: In Danger of Shut Down Without Financial Support
----------------------------------------------------------------
Banco Nacional de Desarrollo Agricola aka Banadesa, a
development bank in Honduras, is in danger of closing down if it
gets no financial support, Hector Hernandez -- agriculture
minister -- told local daily La Tribuna.
Mr. Hernadez was quoted by La Tribuna saying that the company
only has HNL200 million for lending purposes and a large debt.
According to Business News Americas, Mr. Hernandez commented
that a decision must be made by the congress and the government
whether to promote Banadesa or to close it down.
Mr. Hernandez said that the way the firm is operating does not
help agricultural producers much, BNamericas reports.
As reported in the Troubled Company Reporter on Feb. 7, 2006,
Banadesa has been asked by the Honduran National Commission of
Banks and Insurance to infuse HNL672.2 million in capital to
prevent the agency's closure, according to the Honduras This
Week Online.
In a press conference, Enrique Castej>n, Banadesa's president,
said that after he assumed control of the bank, he asked
financial authorities to help Banadesa recuperate. However,
CNBS has asked the bank to put into place an enormous amount of
financial reserves, despite the recuperation of the bank and its
mission.
Mr. Castej>n is against the CNBS applying the principle of
"business in march" to the bank as this indicates that the
organization is presumed to be in permanent existence, except
for some specifications. The figures of their financial
statements will represent historical values, or modifications of
them, which have been systematically obtained.
* HONDURAS: Mobile Telephone Service Reaches Rural Areas
--------------------------------------------------------
Rural areas in Honduras will finally be able to make national
and international calls without traveling kilometers to do so.
According to the La Tribuna, CONATEL -- National Commission of
Telecommunications -- has announced plans to connect the whole
country.
This will happen with the help of two companies: Sercom which
represents Alo Megatel, and Celtel or Tigo, both of which are
already installed in some Honduran cities.
* * *
Moody's Investor Service assigned these ratings on Honduras:
Rating Rating Date
------ -----------
Senior Unsecured B2 Sept. 29, 1998
Long Term IDR B2 Sept. 29, 1998
=============
J A M A I C A
=============
* JAMAICA: Plans to Import More Than 200,000 Tons of Cement
-----------------------------------------------------------
Jamaica plans to import more than 200,000 tons due to the
country's cement shortage, Colin Campbell -- the information and
development minister -- told the Jamaica Gleaner.
Business News Americas relates that cement shortage may be
caused by high cement import tariffs previously implemented by
parliament.
BNamericas relates that Jamaica is currently importing about
64,000t of Cuban cement. This would be delivered in three
tranches, starting in two or three weeks.
According to BNamericas, Mr. Campbell said the local firm
Caribbean Cement Company aka CCCL is also importing some 20,000t
of cement while the Jamaica Bauxite Institute will import cement
as well.
CCCL recently received 220 claims from cement consumers, Mr.
Campbell was quoted by BNamericas saying. The country also
suffered from severe cement shortage after CCCL recalled 500t of
faulty cement.
BNamericas states that as a result of the faulty cement already
being distributed to market, construction projects were halted.
About 30,000 workers were temporarily left without a job, and
some buildings that were constructed during the period had to be
destroyed.
* * *
On Feb. 23, 2006, Moody's put its B rating on Jamaica.
"The outlook for all ratings is stable, reflecting a balance
between ongoing efforts at fiscal consolidation and the
vulnerability of the country to external shocks," Moody's said.
The agency points to Jamaica's strengths as a commitment to
fiscal discipline, proven ability to face severe shocks and
comparatively low external Government debt ratios.
Among the challenges which Jamaica faces, according to the
rating agency, is a closely managed exchange rate that is
subject to severe recurrent pressures and a large public sector
debt burden with growing exposure to international capital
markets.
The agency notes that the economy as well as the fiscal and
external positions remain sensitive to external and domestic
shocks. It further observes that, "they remain supported by the
Government's commitment to return to a balanced budget position
and by a constitutional provision mandating debt-service
payments as the first expenditure priority."
Moody's, which influences the behaviour of international
institutional investors, says despite Jamaica's recent adverse
external developments and a downturn in the local business
sentiment, "confidence in the medium-term programme and in the
ability of the policymakers has remained somewhat intact, as
evidenced by the relative stability of the foreign exchange
market, notwithstanding some bouts of pressure."
===========
M E X I C O
===========
CABLEMAS: Net Revenue Increases 14.7% in Fourth Quarter 2005
------------------------------------------------------------
Cablemas, S.A. de C.V., announced results for the three and
twelve-month periods ending Dec. 31, 2005.
Cablemas' Chief Executive Officer -- Carlos M. Alvarez Figueroa
-- commented, "Cablemas had another excellent quarter with
increases in net revenue, operating profit and adjusted EBITDA.
This was achieved despite the loss of revenue in the states of
Quintana Roo and Yucatan resulting from Hurricane Wilma."
"We continue to make progress with rolling out services and
increasing market penetration. In fact, in 4Q05 the number of
cable television subscribers increased 23.9% YoY, while high-
speed Internet subscribers increased 78.8% YoY. Furthermore, in
November we began generating IP telephony revenues from our
recently established joint venture with Axtel," Mr. Alvarez
added.
Impact of Hurricane Wilma on 4Q05 And FY05 Results
On Oct. 22-23, 2005, Hurricane Wilma passed over the Mexican
states of Quintana Roo and Yucatan -- in the southeast region of
Mexico -- where Cablemas has operations and network
infrastructure in Cancun, Playa del Carmen, Cozumel and Isla
Mujeres.
The hurricane caused extensive damage and flooding in the area,
and, as a result, Cablemas' network was down and repairs were
made during November and December. By Dec. 31, 2005, 90.0% of
its subscribers had been re-connected. Preliminary damages have
been estimated to be approximately US$22.0 million. Of this
amount, US$15.0 million has already been reimbursed by its
insurer, US$2.4 million represents the insurance deductible and
co-insurance cost, and the remaining US$4.6 million has not
yet been paid, is still being reviewed by the company and its
insurer and could be revised upwards.
Fourth Quarter 2005 Consolidated Results
Net Revenues
Net revenues increased 14.7%, or MXN56.6 million, during fourth
quarter 2005 to MXN442.3 million. Based on the impact that
Hurricane Isidore, which hit the region in September 2002, had
on Cablemas' revenues, Cablemas estimates that, had it not been
for Hurricane Wilma, net revenues in fourth quarter 2005 would
have been MXN474.3 million, an increase of 23.0% YoY.
Cable Television
The 8.0% -- MXN26.8 million -- growth in cable television
revenues was driven by a 23.9% increase in the number of
subscribers, despite a 12.8% decline in average monthly cable
television revenues per subscriber aka ARPU to MXN207.0. This
decline in ARPU was primarily the result of a 40.6% increase in
Minibasic subscribers, who pay lower monthly fees, while Basic
subscribers increased only 18.9%.
Average monthly net churn rates for cable television fell to
1.8% for the fourth quarter of 2005 from 2.0% in fourth quarter
2004. Adjusting for the impact of Hurricane Wilma, as
previously described, cable television revenues for 4Q05 would
have increased by 16.7% -- MXN55.6 million -- to MXN389.4
million, with ARPU down by 5.9%.
High-Speed Internet
The 62.7% -- MXN24.7 million -- rise in high-speed Internet
revenues resulted from a 78.8% increase in the number of
subscribers, partially offset by a 9.6% decline in high-speed
Internet ARPU to MXN200. The decrease in ARPU was the result of
an increase in low price / low connection speed subscribers.
Average monthly net churn rates for high-speed Internet fell to
3.2% for the fourth quarter of 2005 from 3.6% in the fourth
quarter of 2004.
Adjusting for the impact of Hurricane Wilma, as previously
described, revenues for the fourth quarter 2005 would have
increased by 70.9% -- MXN27.9 million -- to MXN67.3 million,
with ARPU down by 5.1%.
IP Telephony
On April 28, 2005, Cablemas entered into a joint venture
agreement with Axtel S.A. de C.V. to provide IP telephony
services, which began generating revenues in November 2005. IP
telephony revenues for the last two months of FY05 were MXN5.5
million -- 1.3% of total revenue. IP telephony ARPU for fourth
quarter 2005 totaled MXN1,138, of which approximately 75.0%
represented migration fees paid by Axtel to Cablemas for new
subscribers.
Operating Profit
Operating profit for the fourth quarter 2005 increased 101.9%,
or MXN42.5 million, to MXN84.3 million, driven by a 23.3%
increase in gross profit and a 38.5% -- MXN11 million -- decline
in amortization and depreciation as a result of a change in
accounting for goodwill, partially offset by increases of 24.0%
and 7.0% in selling expenses and administrative expenses,
respectively.
Excluding the change in accounting for goodwill, operating
profit would have increased by 64.0% -- MXN26.8 million -- to
MXN68.6 million for fourth quarter 2005 and operating margin
would have been 15.5%.
Cost of Services
Cost of services for fourth quarter 2005 increased 5.4% --
MXN10.0 million, but declined to 44.3% of revenues from 48.2% in
fourth quarter 2004. This was principally due to an 18.7% or
MXN11.8 million, decline in programming expenses, a 56.3%
increase -- MXN14.6 million -- in salaries and maintenance
expenses and a MXN3.8 million -- 6.1% -- increase in
depreciation and amortization related to the network expansion.
The lower programming expenses were associated with the
negotiation of one-time volume discounts with Productora y
Comercializadora de Television S.A. de C.V, Cablemas' principal
content provider and lower content prices for Cablemas'
Minibasic (Conecta) package.
Selling, General and Administrative Expenses
Selling, General and Administrative Expenses -- including
depreciation and amortization -- increased 2.6% during fourth
quarter 2005 principally reflecting:
-- Selling Expenses increased 24.0%, or MXN8.5 million, to
MXN43.9 million, principally due to a 31.0% increase in the
number of sales and call center personnel as well as the
hiring of salespeople for the IP telephony business in
Tijuana. The number of sales employees increased
from 595 at the end of fourth quarter 2004 to 816 at the
end of fourth quarter 2005.
-- Administrative Expenses increased 7.0%, or MXN6.6 million,
to MXN100.4 million, but declined to 22.7% of service
revenues in fourth quarter 2005 from 24.3% in fourth
quarter 2004, reflecting economies of scales.
Administrative expenses increased principally due to an
increase in office expenses of MXN7.6 million -- 45.8%.
-- Amortization and Depreciation declined 38.5% -- MXN11.0
million -- for fourth quarter 2005 reflecting a change in
accounting for goodwill requiring that goodwill be
evaluated for impairment instead of amortization as of Jan.
1, 2005.
Adjusted EBITDA & Margin
Adjusted EBITDA for fourth quarter 2005 increased 26.5% --
MXN35.1 million -- to MXN167.8 million, principally reflecting
the improvement in operating income. Similarly, the adjusted
EBITDA margin increased 350 basis points to 37.9%.
Income Tax, Asset Tax and Employees Profit Sharing increased
95.5% -- MXN6.7 million -- to MXN13.8 million for fourth quarter
2005 from MXN7.1 in fourth quarter 2004, principally due to
higher non-deductible expenses and a lower positive effect for
changes in the income tax rate, partially offset by a smaller
increase in accruals for differed taxes assets as compared to
fourth quarter 2004.
Special Items increased 387.8% -- MXN36.7 million -- to MXN36.7
million for fourth quarter 2005 principally due to expenses
related to the pre-payment of MXN25.0 million of bond debt and
one-time special items of MXN18.5 million resulting from the
impact of Wilma Hurricane.
Depreciation and Amortization declined 8.1%, or MXN7.3 million,
for fourth quarter 2005 to MXN83.5 million, principally due to a
change in accounting for goodwill requiring that goodwill be
evaluated for impairment instead of amortization as of Jan. 1,
2005.
Other Expenses, Net were principally due to consulting expenses
related to a business acquisition for MXN8.8 million.
Comprehensive Financial Results, Net
Comprehensive Financial Results, Net, for fourth quarter 2005
increased 252.9%, or MXN56.9 million, to an expense of MXN79.4
million from an expense of MXN22.5 million in fourth quarter of
2004. This primarily reflected a MXN37.3 million increase in
interest expense resulting from a 92.0% increase in outstanding
debt at the end of fourth quarter of 2005 to MXN1,874.4 million
and from an increase of MXN13.3 million in financial instruments
resulting from currency forwards and a cross-currency swap
entered to hedge Cablemas' recent US$175.0 million senior note
offering.
The MXN0.2 million loss from the monetary position principally
reflected an accounting adjustment for inflationary accounting
of deferred taxes as well as a lower rate of inflation of 1.6%
in fourth quarter 2005 compared to 1.8% in fourth quarter 2004.
For fourth quareter 2005, Cablemas posted a MXN62.0 million
loss, compared to a MXN4.0 million loss in fourth quarter 2004.
This principally reflects increases of MXN46.2 million in one-
time special items and higher interest expenses.
Full Year 2005 Consolidated Results
Net Revenues
Net revenues increased 15.0%, or MXN224.7 million, during fiscal
year 2005 aka FYO5 -- to MXN1,724.4 million. Based on the
impact that Hurricane Isidore, which hit the region in September
2002, had on Cablemas' revenues, Cablemas estimates that, had it
not been for Hurricane Wilma, net revenues in FY05 would have
been MXN1,756.4 million, an increase of 17.1% year on year.
Cable Television
The 11.7% -- MXN150.1 million -- growth in cable television
revenues was driven by a 23.9% increase in the number of
subscribers, despite an 8.3% decline in cable television ARPU to
MXN222.0. This decline in ARPU was primarily the result of a
40.6% increase in minibasic subscribers, who pay lower monthly
fees, while basic subscribers increased only 18.9%. Average
monthly net churn rates for cable television declined to 2.4% in
FY05 from 2.5% in FY04.
Adjusting for the impact of Hurricane Wilma, as previously
described, cable television revenues for FY05 would have
increased by 14.0% -- MXN179.0 million -- to MXN1,467.0 million,
with ARPU down by 6.5%.
High-Speed Internet
The 42.5% -- MXN69.8 million -- rise in high-speed Internet
revenues resulted from a 78.8% increase in the number of
subscribers, partially offset by a 16.8% decline in high-speed
Internet ARPU to MXN219.0. The decrease in ARPU was the result
of an increase in low price/low connection speed subscribers.
Average monthly net churn rates for high speed Internet
increased slightly to 3.3%, up from 3.2% for the prior year.
Adjusting for the impact of Hurricane Wilma, high speed Internet
revenues for FY05 would have increased by 45.0% to MXN237.0
million, with ARPU down by 15.7%.
IP Telephony
IP telephony revenues for the last two months of FY05 were
MXN5.5 million, or 0.3% of total annual revenue. IP telephony
ARPU for FY05 was MXN1,138.0, of which around 75.0% represented
migration fees paid to Cablemas by Axtel for new subscribers.
Operating Profit
Operating profit for FY05 increased 40.6% -- MXN100.8 million --
to MXN349.1 million, principally as a result of a 16.3% --
MXN129.3 million -- increase in gross profit and a 47.4%,
MXN45.4 million, decline in amortization and depreciation as a
result of a change in accounting for goodwill, partially offset
by a MXN28.5 million, or 5.2%, increase in SG&A.
Cost of Services
Cost of Services for FY05 increased 13.5% -- MXN95.3 million --
to MXN803.1 million, as a result of first-time IP telephony
costs of MXN5.9 million related to the launch of IP telephony
through the joint venture established with Axtel and a 23.9%
increase in the number of cable television subscribers. As a
percentage of service revenues, however, cost of services
declined to 46.6% of sales from 47.2% in 2004. This improvement
reflected the negotiation of one-time volume discounts with
PCTV, Cablemas' main content provider, as well as lower content
prices for Cablemas' Minibasic (Conecta) package.
Selling, General and Administrative Expenses
Selling, General and Administrative Expenses -- including
depreciation and amortization -- increased 5.2% -- MXN28.5
million -- to MXN572.2 million, during FY05 principally
reflecting:
-- Selling Expenses increased 23.2% -- MXN30.1 million -- to
MXN160.0 million for FY05 principally due to an increased
number of sales personnel in Cablemas' cable television and
high-speed internet sales and call centers. The number of
sales employees increased from 595 at the end of FY04 to
816 at the end of FY 05.
-- Administrative Expenses increased 13.8%, MXN43.7 million,
to MXN361.8 million for FY 05 principally due to the
addition of 118 administrative employees and an increase of
MXN16.4 million in office expenses, particularly building
and software maintenance expenses.
-- Amortization and Depreciation declined 47.4%, or MXN45.4
million, to MXN50.4 million during FY05, reflecting a
change in accounting for goodwill requiring that goodwill
be evaluated for impairment instead of amortization as of
Jan. 1, 2005.
Adjusted EBITDA & Margin
Adjusted EBITDA for FY05 increased 19.5% -- MXN108.2 million --
to MXN663.8 million, primarily as a result of the improvement in
operating income. Similarly, the adjusted EBITDA margin
increased 150 basis points to 38.5%.
Income Tax, Asset Tax and Employees Profit Sharing increased
13.3% -- MXN8.3 million -- to MXN70.6 million in FY05 from
MXN62.3 million in FY04, principally reflecting higher non-
deductible expenses and a lower positive effect for changes in
income tax rates, partially compensated by a smaller increase in
accruals for differed tax assets as compared to FY04.
Special Items increased MXN53.6 million, or 461.1%, to MXN65.2
million for FY05 and were principally related to the pre-payment
of MXN25.0 million of bond debt, MXN18.8 million in fees related
to the Axtel joint venture and MXN18.5 million of one-time
special items resulting from Hurricane Wilma.
Depreciation and Amortization increased 2.4%, or MXN7.4 million,
to MXN314.7 million for FY05 due to the expansion of Cablemas'
network, partially offset by a MXN63.0 million decline in
amortization which was the result of a change in accounting for
goodwill. This change required that goodwill be evaluated for
impairment instead of amortization as of Jan. 1, 2005.
Other Expenses, Net increased MXN20.1 million, to MXN18.1
million for FY05 principally due to consulting expenses related
to a business acquisition for MXN8.8 million and MXN4.1 million
in a provision for obsolete inventories.
Effects from Associated Companies and Minority Interest
increased MXN46.2 million to a MXN37.8 million gain for FY05,
Comprehensive Financial Results, Net Comprehensive financial
results, net, for FY05 increased 148.1% -- MXN921.4 million --
to an expense of MXN154.8 million from an expense of MXN62.4
million in FY04. This primarily reflected a MXN81.4 million
increase in interest expense resulting from a 92.0% -- MXN897.1
million -- increase in outstanding debt to MXN1,874.4 million
and a MXN15.2 million -- 43.4% -- decline in gain from the
monetary position.
Net Income
Net income for FY05 fell by 25.9% -- MXN27.3 million -- to
MXN78.3 million, down from MXN105.6 million in FY04. The 40.6%
increase in operating profit to MXN349.1 million was partially
offset by higher one-time charges, borrowing costs, and deferred
taxes.
CAPEX
Capital expenditures for 4Q05 fell 31.0% -- MXN87.3 million --
to MXN194.4 million from MXN281.7 million in 4Q04. Capital
expenditures in FY05 increased 39.1% -- MXN226.4 million -- to
MXN805.6 million, from MXN579.2 million in FY04. The 39.1% YoY
increase in capital expenditures principally relates to
investments incurred to expand and upgrade Cablemas' network.
As of Dec. 31, 2005, Cablemas had a network of 11,926 km, of
which 76% was bidirectional and 85% was operating at or greater
than 550 MHz.
Debt Structure
Consolidated gross debt as of Dec. 31, 2005, totaled MXN1,874.4
million, a YoY increase of MXN897.1 million, or 92%. On Nov.
15, 2005, Cablemas issued US$175.0 million of 9.375% senior
notes, the proceeds of which were used to refinance debt and
fund capital expenses.
Net debt, which is calculated as total debt minus cash and cash
equivalents, increased YoY by 19% -- MXN180.2 million -- to
MXN1,105.7 million. As of Dec. 31, 2005, Cablemas had a cash
balance of MXN768.7 million.
Cash flow from operations during FY05 declined 28.4% -- MXN154.1
Million -- to MXN389.4 million due to a decrease in working
capital as a result of a reduction in financing with suppliers
in FY05 and lower net income.
Net borrowings in FY05 increased MXN901.9 million -- 512.4% --
to MXN919.5 million as cash flow from operations were
insufficient to fund higher capital expenditures. Capex for
FY05 increased 39.1% -- MXN226.4 million -- to MXN805.6 million,
principally related to the upgrade and expansion of Cablemas'
network.
Cablemas S.A. de C.V. -- http://www.cablemas.com-- is the
second-largest cable television operator in Mexico based on the
number of subscribers and homes passed. As of June 30, 2005,
the company's network served over 546,000 cable subscribers and
in excess of 87,000 high-speed Internet subscribers, with more
than 1,647,000 homes passed. It is the concessionaire with the
broadest coverage in Mexico, operating in 46 cities throughout
the country's oil, maquiladora and tourist regions.
* * *
As reported by the Troubled Company Reporter on Dec. 30, 2005,
Moody's Investors Service assigned a B1 corporate family rating
to Cablemas. The outlook is stable. This rating action is in
accordance with the B1 ratings Moody's assigned to Cablemas'
US$175 million of senior unsecured notes, with a stable outlook,
on November 4th, 2005. The proceeds of the issue were used to
refinance debt and for capital expenditures.
SATMEX: Signs Comprehensive Restructuring Accord with Holders
-------------------------------------------------------------
Satelites Mexicanos, S.A. de C.V., said in a press statement
that it has entered into a comprehensive agreement to
restructure its existing indebtedness and re-align its capital
structure with the holders of a majority of its Senior Secured
Floating Rate Notes due 2004 aka FRNs and holders of more than
two-thirds of its 10 1/8% Senior Notes due 2004 aka HYBs.
The FRNs include funds managed by GoldenTree Asset Management,
L.P., and Murray Capital Management, Inc., among others.
The HYBs include funds managed by Gramercy Advisors LLC,
Harbinger Capital Partners and Federated Investment Management
Co. The current majority shareholders of the company, Principia
S.A. de C.V. -- controlled by Sergio Autrey -- and Loral Space &
Communications, Inc., also joined in the restructuring
agreement.
The agreement memorializes a stand-alone restructuring of Satmex
on the principal terms first announced by the company on Feb. 6,
2006.
Thomas Heather -- the Conciliador in the Company's pending
Concurso Mercantil proceeding, who was appointed at the request
of Mexico's Ministry of Communications and Transportation --
said, "The execution of this agreement, which is the product of
a massive effort by all parties concerned, resolves numerous
implementation issues and provides a clear blueprint for
effectuating the successful restructuring of Satmex."
The agreement calls for the filing of a restructuring plan with
the Mexican court where the company's Concurso Mercantil
proceeding is pending, which, in turn, will provide for the
final implementation of the restructuring through a pre-
negotiated bankruptcy plan under chapter 11 of the U.S.
Bankruptcy Code.
Mr. Heather further stated that the restructuring plan has the
full support of the Mexican Government, and reiterated that all
applicable governmental approvals necessary to complete the
restructuring plan, including those of the Ministry of
Communications and Transportation, are expected to be issued in
due course and in a timely manner.
Sergio Autrey -- chairman and CEO of Satmex -- also confirmed
that the launch of the company's new Satmex 6 satellite in May
of this year is proceeding on schedule.
Mr. Autrey said, "Together with the restructuring of our
indebtedness, the launch of Satmex 6 will enhance our financial
stability and enable us to continue delivering our premier
satellite services to our customer base for many years to come."
Mr. Autrey further stated that Satmex's sales force is actively
marketing the available transponder capacity on Satmex 6.
Richard Mastoloni -- vice president and treasurer of Loral Space
& Communications -- said, "Loral's participation in the
restructuring process confirms our commitment to restoring the
economic viability of Satmex."
Mr. Mastoloni also said, "Space Systems/Loral and Satmex are
currently working hard preparing for the upcoming launch in May
of the Space Systems/Loral-built Satmex 6 satellite. Satmex 6
will be one of the region's largest and most powerful satellites
that will provide high-demand C- and Ku-band coverage of the
entire Western hemisphere."
Mr. Autrey noted that consummation of the restructuring will
satisfy all obligations of Satmex's holding company, Servicios
Corporativos Satelitales, S.A. de C.V., under its Menoscabo
obligation to the Mexican Government. Servicios is itself
subject to a separate Concurso Mercantil proceeding, under
which, as part of the contemplated restructuring plan, the
Mexican Government will receive the economic benefit derived
from any future sale of the shares in Satmex retained by
Servicios in full satisfaction of the Menoscabo obligation.
The obligations of the parties to support the restructuring are
subject to a number of timing and other conditions, including
the receipt of necessary governmental regulatory and judicial
approvals and the acceptance of the restructuring by at least
two-thirds of the FRNs, and there can be no assurance that all
such conditions will be satisfied. Parties to the agreement
will have rights of termination in the event such conditions are
not satisfied or certain other events should occur.
As part of the restructuring, holders of the existing US$203.4
million of FRNs will receive, in full satisfaction of the
obligations due under the FRNs, new first priority senior
secured notes on these terms:
-- Principal amount equal to the sum of current principal and
accrued interest on the FRNs through the effective date of
the restructuring.
Assuming an effective date of Sep. 30, 2006, the principal
amount will be $234.4 million and will be adjusted, upward or
downward, at a rate of one month LIBOR + 450 basis points
divided by 360, for each day before or after Sep. 30, 2006,
that the effective date occurs;
-- Five-year maturity with a monthly or quarterly coupon of
LIBOR + 875 basis points;
-- Callable at a price of 103 in year 1, 102 in year 2, 101
in year 3, and at par -- plus accrued interest --
thereafter;
-- First priority security interest in all of Satmex's
assets;
-- Cash sweep prepayments on any cash balances over US$5
million; and
-- Change of control put option at 101, plus accrued
interest.
Holders of the existing US$320 million of HYBs will receive, in
full satisfaction of the obligations due under the HYBs
including all accrued interest, new second priority senior
secured notes in the principal amount of US$140,000,000 and
certain shares of reorganized Satmex, on these terms:
-- Seven-year maturity with a quarterly coupon of 10 1/8%
per annum -- with 0% cash pay and 10 1/8% payable in kind
in year 1 and 2 percent cash pay and 8 1/8% payable in
kind thereafter until the First Priority Senior Secured
Notes are paid in full, after which time the coupon shall
be paid wholly in cash;
-- Second priority security interest in all of Satmex's
assets, junior in priority, operation and effect to the
security interests of the First Priority Senior Secured
Notes;
-- After the full payment of the First Priority Senior
Secured Notes, cash sweep prepayments on any cash
balances over US$5 million; and
-- Change of control put option at par, plus accrued
interest, unless waived by holders of 66-2/3% of the
Second Priority Senior Secured Notes or unless following
the change of control Satmex is controlled by certain
approved buyers.
In exchange for capitalization of the balance of their claim of
approximately US$274 million in principal and unpaid interest,
the holders of the HYBs will receive 78 percent of the economic
interest in the equity of Satmex including 43% of the voting
shares and the by laws of Satmex will include certain governance
rights for the benefit of the holders of such equity.
The remaining economic equity of Satmex will be held by Satmex's
current shareholders, 2% by Principia and Loral, and 20% by
Servicios and the Mexican Government. However, the economic
benefit derived from any future sale of the shares in Satmex
retained by Servicios will be paid to the Mexican Government in
satisfaction of Servicios' Menoscabo obligation. The majority
voting shares of Satmex will be owned by Servicios and the
Mexican Government. The Board of Directors of reorganized
Satmex
will consist of seven persons, four independent persons approved
by Servicios and the Mexican Government, one person appointed by
Principia and Loral, and two persons appointed by the HYBs.
All of the shares of Satmex, including Bondholder Equity and
those shares held by Satmex's current shareholders and the
Mexican Government, will be transferred to a Mexican equity
trust for the purpose of facilitating a potential sale of 100
percent of the equity of Satmex. The governance of the trust
will be charged with effecting a sale of Satmex in an orderly
process following the consummation of the restructuring, based
on specified criteria and at certain specified times in the
future.
Subject to the satisfaction of the conditions, the company
anticipates that the restructuring will be consummated by the
fourth quarter of 2006.
Satmex may issue further information regarding the restructuring
agreement and the status of the restructuring in the future.
Holders of FRNs should contact the advisors to the ad hoc
committee of FRNs:
Mitchell A. Harwood
Mitchell A. Harwood Partners, LLC
Phone: (917) 670- 4777
-- and --
Dennis L. Jenkins
Wilmer Cutler Pickering Hale and Dorr LLP
Phone (617) 526-6491
Holders of HYBs should contact the advisors to the ad hoc
committee of HYBs:
Michael Seery
Chanin Capital Partners
Phone: (212) 758-2629
-- and --
Steven Scheinman
Akin Gump Strauss Hauer & Feld LLP
Phone: (212) 872-1000.
Headquartered in Mexico, Satelites Mexicanos, S.A. de C.V.
-- http://www.satmex.com/-- is the leading provider of fixed
satellite services in Mexico and is expanding its services to
become a leading provider of fixed satellite services throughout
Latin America. Satmex provides transponder capacity to
customers for distribution of network and cable television
programming and on-site transmission of live news reports,
sporting events and other video feeds. Satmex also provides
satellite transmission capacity to telecommunications service
providers for public telephone networks in Mexico and elsewhere
and to corporate customers for their private business networks
with data, voice and video applications, as well as satellite
internet services. The Debtor is an affiliate of Loral Space &
Communications Ltd., which filed for chapter 11 protection on
July 15, 2003 (Bankr. S.D.N.Y. Case No. 03-41710). Some holders
of prepetition debt securities filed an involuntary chapter 11
petition against the Debtor on May 25, 2005 (Bankr. S.D.N.Y.
Case No. 05-13862). The Debtor, through Sergio Autrey Maza, the
Foreign Representative, Chief Executive Officer and Chairman of
the Board of Directors of Satmex filed an ancillary proceeding
on Aug. 4, 2005 (S.D.N.Y. Case No. 05-16103).
Matthew Scott Barr, Esq., Luc A. Despins, Esq., Paul D. Malek,
Esq., and Jeffrey K. Milton, Esq., at Milbank, Tweed, Hadley &
McCloy LLP represent the Debtor. When the Debtor filed an
ancillary proceeding, it listed $900,000,000 in assets and
$688,000,000 in debts.
WILLIAMS SCOTSMAN: Prices US$100 Mil. Offering of 8.5% Sr. Notes
----------------------------------------------------------------
Williams Scotsman, Inc., the operating subsidiary of Williams
Scotsman International, Inc. (NASDAQ:WLSC), priced an offering
of US$100 million aggregate principal amount of its 8.5% senior
notes due 2015 in a private offering under Rule 144A of the
Securities Act of 1933. The notes were priced at 101.75% of par
representing a yield to maturity of 8.18%.
The offering is an add-on to the company's existing series of
8.5% senior notes due 2015. The company issued $350 million
aggregate principal amount of the 8.5% senior notes in September
2005 and the new notes and the existing notes will be treated as
a single class under the indenture governing the notes.
The Company intends to use the net proceeds from the offering to
repay a portion of its outstanding indebtedness under the
revolving portion of its bank credit facility and pay
transaction fees and expenses. The offering of the senior notes
is expected to close on or about April 18, 2006.
The offering of senior notes will not be and has not been
registered under the Securities Act of 1933, as amended, and the
senior notes may not be offered or sold in the United States
absent registration or an applicable exemption from the
registration requirements of the Securities Act.
About Williams Scotsman, Inc.
Headquartered in Baltimore, Maryland, William Scotsman, Inc.
-- http://www.willscot.com/-- is the operating subsidiary of
Williams Scotsman International, Inc. The Company provides
mobile and modular space solutions for the construction,
education, commercial, healthcare and government markets. The
Company serves over 25,000 customers, operating a fleet of over
98,000 modular space and storage units that are leased through a
network of 86 locations throughout North America. Williams
Scotsman International, Inc. is a publicly traded company
(NASDAQ:WLSC) with operations in the United States, Canada,
Mexico, and Spain.
Williams Scotsman, Inc.'s 10% Senior Secured Notes due 2008
carry Moody's Investors Service's B2 rating.
=======
P E R U
=======
* PERU: Inks Free Trade Accord with United States
-------------------------------------------------
The Republic of Peru signed on April 12 a free trade agreement
with the United States that would eliminate import tariffs.
"This all inclusive agreement will promote increased economic
activity and commercial prosperity for both our nations," U.S.
Trade Representative Rob Portman was quoted by Bloomberg as
saying during a ceremony in Washington.
Peruvian President Alejandro Toledo, who negotiated and signed
the deal, will step down in July and is expected to be replaced
by presidential hopefuls that are opposed to the FTA.
Additionally, the deal needs both countries' legislative bodies'
approval.
Presidential candidates Alan Garcia and Ollanta Humala are both
oppose to the FTA saying that it would flood Peru's market with
subsidized agricultural products.
"The free-trade deal faces enormous political uncertainty, not
only in Peru but also in the U.S. Congress," Lori Wallach,
president of Global Trade Watch in Washington, which lobbies
against these kinds of trade deals told Bloomberg. "It's future
politically in the U.S. is uncertain, but that is nothing
compared to the level of opposition in Peru."
Under a previous trade agreement which expires at the end of
2006, goods from Peru, Colombia and Ecuador have duty-free
access to the American market. The new FTA would make that
access permanent.
The United States is Peru's largest trading partner in 2005.
* * *
Fitch Ratings assigned these ratings on Peru:
Rating Rating Date
------ -----------
Country Ceiling BB Nov. 18, 2004
Long Term IDR BB Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating BB+ Dec. 14, 2005
=====================
P U E R T O R I C O
=====================
FIRST BANCORP: Receives Approval for Payment of Dividends
--------------------------------------------------------
First BanCorp has received regulatory approval for the payment
of dividends on its Series A through E preferred stock. The
corresponding amounts, record dates and payment dates are:
Series Per/share Record Date Payment Date
A $0.148 April 27, 2006 May 1, 2006
B $0.173 April 17, 2006 May 1, 2006
C $0.154 April 17, 2006 May 1, 2006
D $0.151 April 17, 2006 May 1, 2006
E $0.145 April 17, 2006 May 1, 2006
Regulatory approvals are necessary as a result of First
BanCorp's previously announced agreement with the Board of
Governors of the Federal Reserve System and Commissioner of
Financial Institutions of the Commonwealth of Puerto Rico.
"We are pleased that we are still able to pay dividends," said
Luis Beauchamp, First BanCorp President and CEO. "As we execute
our day-to-day banking and lending activities and continue
implementing our business strategy, we maintain our commitment
to shareholders, customers, employees and regulators."
As previously announced, First BanCorp is in the process of
preparing restated financial statements. First BanCorp still
plans to file those financial statements in the summer of 2006.
Thereafter, First BanCorp expects to file the 2005 annual report
on Form 10-K.
About First BanCorp
First BanCorp is the parent corporation of FirstBank Puerto
Rico, a state chartered commercial bank with operations in
Puerto Rico and the Virgin Islands and in the state of Florida;
of FirstBank Insurance Agency; and of Ponce General Corporation.
First BanCorp, FirstBank Puerto Rico and UniBank, the thrift
subsidiary of Ponce General, all operate within U.S. banking
laws and regulations. The Corporation operates a total of 140
financial services facilities throughout Puerto Rico, the U.S.
and British Virgin Islands, and Florida (USA). Among the
subsidiaries of FirstBank Puerto Rico are Money Express, a
finance company; First Leasing and Car Rental, a car and truck
rental leasing company; and FirstMortgage, a mortgage banking
company. In the U.S. and British Virgin Islands, FirstBank
operates FirstBank Insurance VI, an insurance agency; First
Trade, Inc., a foreign corporation management company; and First
Express, a small loan company. First BanCorp's common and
preferred shares trade on the New York Stock Exchange, under the
symbols FBP, FBPPrA, FBPPrB, FBPPrC, FBPPrD and FBPPrE.
* * *
As reported by the Troubled company Reporter on March 21, 2006,
Fitch Ratings assigned the following ratings on First BanCorp
and FirstBank Puerto Rico:
First BanCorp
-- Long-term IDR at 'BB';
-- Short-term at 'B';
-- Individual at 'C/D';
-- Support '5'.
FirstBank Puerto Rico
-- Long-term IDR at 'BB';
-- Long-term deposit obligations at 'BB+';
-- Short-term deposit obligations at 'B';
-- Short-term at 'B';
-- Individual at 'C/D';
-- Support at '5'.
=================================
T R I N I D A D & T O B A G O
=================================
MIRANT CORP: Asks Court to Approve Mint Farm-Cascade Settlement
---------------------------------------------------------------
Mint Farm Generation, LLC, and Cascade Natural Gas Corporation
are parties to an Agreement for Natural Gas Service in the State
of Washington, dated February 28, 2001, pursuant to which
Cascade agreed to transport natural gas to service the Mint Farm
generation facility located in Longview, Washington.
Cascade filed proofs of claim against Mint Farm based on the
Contract. Mint Farm objected to those claims.
In 2005, the parties entered into a stipulation to resolve the
dispute over Cascade's Claims. The Stipulation provides, among
other things, that:
* Cascade had an allowed, general, prepetition, unsecured
claim for $592,709 against Mint Farm solely for the
purpose of voting on the Debtors' Plan of Reorganization;
and
* determination for distribution purposes of any claim
Cascade may have based on the Contract will be deferred,
reserved and resolved through the claim objection process.
On September 14, 2005, Mint Farm sought Court approval to sell
its Washington Plant. Cascade objected to Mint Farm's request
asserting that the sale of the Plant without previously assuming
or rejecting the Contract was inappropriate.
The Bankruptcy Court subsequently directed Mint Farm to assume
or reject the Contract by the earlier of (i) the closing of the
sale of the Plant or (ii) the entry of a confirmation order.
Mint Farm decided to reject the Contract as of the Effective
Date of the Plan.
To reach a compromise that would benefit its estate and avoid
litigation, Mint Farm entered into a settlement agreement with
Cascade.
Under that Settlement Agreement, the parties agreed that:
(a) Cascade will receive a Mirant Debtor Class 3 Claim
against Mint Farm for $850,000 with respect to damages
arising from the rejection of the Contract;
(b) Subject to certain conditions, Cascade will pay to Mint
Farm 50% of all gross revenue received by Cascade
relating to the Plant in connection with:
(1) the Distribution System Transportation Service
Tariff, as filed with the Washington Utilities and
Transportation Commission;
(2) the Large Volume Distribution System Transportation
Service Tariff, as filed with the WUTC; and
(3) any other applicable law, tariff, contract or other
agreement relating to natural gas delivery or
transportation services to the Plant; and
(c) Cascade's obligation to pay 50% of all Revenue is
subject to these conditions:
(1) Cascade will first have received Revenue amounting
to $1,400,000; and
(2) Cascade's reimbursement obligations will cease on
the earlier to occur of Mint Farm receiving $850,000
from Cascade or December 31, 2012.
The New Mirant Entities ask the U.S. Bankruptcy Court for the
Northern District of Texas to approve the Settlement Agreement
entered into by and between Mint Farm and Cascade.
Headquartered in Atlanta, Georgia, Mirant Corporation --
http://www.mirant.com/-- is a competitive energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines. Mirant's investments in the Caribbean
include three integrated utilities and assets in Jamaica, Grand
Bahama, Trinidad and Tobago and Curacao. Mirant owns or leases
more than 18,000 megawatts of electric generating capacity
globally. Mirant Corporation filed for chapter 11 protection on
July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the
terms of a confirmed Second Amended Plan on January 3, 2006.
Thomas E. Lauria, Esq., at White & Case LLP, represented the
Debtors in their successful restructuring. When the Debtors
filed for protection from their creditors, they listed
$20,574,000,000 in assets and $11,401,000,000 in debts. (Mirant
Bankruptcy News, Issue No. 94; Bankruptcy Creditors' Service,
Inc., 215/945-7000)
* * *
As reported in the Troubled Company Reporter on Dec. 8, 2005,
Standard & Poor's Ratings Services placed a 'B+' corporate
credit rating on Mirant and said the outlook is stable.
=================
V E N E Z U E L A
=================
* CITGO: Discounted Heating Oil Deliveries Reach US$29.5 Million
----------------------------------------------------------------
Citgo Petroleum Corporation disclosed that for 2005-2006, it
delivered 39.8 million gallons of heating oil to the United
States under a discounted oil purchase program, the El Universal
reports. About 181,000 American households benefited from the
exercise.
According to El Universal, the areas where the corporation
delivered the discounted heating oil were:
-- New York (2.6 million gallons),
-- Connecticut (4.8 million gallons),
-- Delaware (1 million gallons),
-- Maine (9.1 million gallons),
-- Massachusetts (12 million gallons),
-- Rhode Island (3.3 million gallons),
-- Pennsylvania (5 million gallons) and
-- Vermont (2 million gallons.)
The program provides for a 40% discount for every barrel of oil
bought from Citgo.
The discounts were endorsed both by Citgo's parent company,
Petroleos de Venezuela SA, and the Venezuelan President's
Office, which authorized the distribution of up to 66,000 bpd of
discounted oil in the United States.
Citgo's interest in a discount heating oil program for low-
income people began about the same time as a request from a
number of United States Senators asking energy companies to
provide heating oil assistance to low-income people.
Citgo's discount heating oil program to low-income people has
been implemented through existing charities that historically
have provided low-cost heating oil to low-income people. These
charities select the recipients of the program.
According to reports, U.S. lawmakers are concerned that the oil
deals are "part of an unfriendly government's increasingly
belligerent and hostile foreign policy" toward the United
States.
The US Senate launched an enquiry into the program, with results
still undisclosed. Activists boycotted Citgo gas stations
through the US. Meanwhile, a group of US lawmakers hailed Citgo
as the only firm that responded to their call for reduced oil
prices ahead of winter.
Headquartered in Houston, Texas, CITGO -- http://www.citgo.com/
-- is owned by PDV America, an indirect, wholly owned subsidiary
of Petroleos de Venezuela S.A., the state-owned oil company of
Venezuela.
PDVSA is Venezuela's state oil company in charge of the
development of the petroleum, petrochemical and coal industry,
as well as planning, coordinating, supervising and controlling
the operational activities of its divisions, both in Venezuela
and abroad.
* * *
As reported on Feb. 16, 2006, Standard and Poor's Ratings
Services assigned a 'BB' rating on CITGO Petroleum Corp.
Standard & Poor's 'BB' rating on CITGO is higher than the 'B+'
corporate credit rating on PDVSA, because of the relative
strength of the refiner's financial profile and the asset
protection afforded to CITGO creditors, if CITGO defaults for
PDVSA-specific reasons, for example, a Venezuela sovereign
default. Nevertheless, CITGO could be challenged by events
surrounding PDVSA.
PETROLEOS DE VENEZUELA: Estimates La Ceiba Production at 40K BPD
----------------------------------------------------------------
Eulogio del Pino, a director at Petroleos de Venezuela SA, told
Dow Jones Newswires, that the La Ceiba oil field in western
Venezuela will have an initial production capacity of up to
40,000 barrels a day.
Exxon Mobil Corp. and Petro-Canada, the operators of the field,
declared the field commercially viable in 2005.
Last month, the Venezuelan government ordered operations at the
field halted to carry out technical studies. Industry observers
said in reports that the shut down may be caused by Exxon's
resistance to tax changes in Venezuela. In 2004, Exxon was the
only oil company to publicly challenge a royalty hike on heavy
crude.
When asked by Dow Jones when operation in the field will resume,
Exxon Mobil said it did not know.
Mr. Del Pino told Dow Jones that La Ceiba could "possibly" be
connected with PDVSA's giant Tomoporo oil field in the Lake
Maracaibo area, in which case PDVSA and Exxon would have to
conduct unitization studies to determine how much of the
reservoir belongs to the La Ceiba block.
Venezuela and Trinidad are currently unitizing natural gas
reservoirs that cut across the maritime border between the two
countries.
PDVSA has the right to take up to 34% of La Ceiba as soon as it
is declared commercial.
Petroleos de Venezuela SA aka PDVSA is Venezuela's state oil
company in charge of the development of the petroleum,
petrochemical and coal industry, as well as planning,
coordinating, supervising and controlling the operational
activities of its divisions, both in Venezuela and abroad.
* * *
On Jan. 23, 2005, Fitch Ratings upgraded the local and foreign
currency ratings of Petroleos de Venezuela S.A. aka PDVSA to
'BB-' from 'B+'. The rating of PDVSA's export receivable
future flow securitization, PDVSA Finance Ltd, was also upgraded
to 'BB+' from 'BB'. In addition, Fitch has assigned PDVSA a
'AAA(ven)' national scale rating. The Rating Outlook is
Stable. Both rating actions follow Fitch's November 2005
upgrade of Venezuela's sovereign rating.
***********
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. Lyndsey Resnick, Marjorie C. Sabijon, Sheryl Joy
P. Olano, and Stella Mae Hechanova, 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
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Information contained herein is obtained from sources believed
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