/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/060531.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, May 31, 2006, Vol. 7, Issue 107 Headlines A R G E N T I N A AUDIO ROSARIO: Court Converts Bankruptcy to Reorganization DEPORTIVA INTEGRAL: Claims Validation Ends on July 7 EXTREM SUD: Seeks Court Approval to Reorganize Business IN GRAPHIC: Individual Reports Due in Court on July 3 METALURGICA MASELLI: Trustee Stops Accepting Claims on July 5 SELECTO S.A.: Concludes Reorganization Proceeding SOL DE ACUARIO: Verification of Proofs of Claim Ends on July 13 SUCESORES DE ANTONIO: Claims Verification Deadline Is on July 10 SUDAMERICAN S.A.: Creditors Must Submit Claims by July 6 TIMARU S.A.: Asks Court's Approval to Restructure Debts B A H A M A S WINN-DIXIE: Balks at Florida Tax Agency's Move to Collect Taxes B E R M U D A FOSTER WHEELER: Moody's Rates US$250M Sr. Debt Facility at Ba3 INTELSAT LTD: Department of Justice Clears Merger With PanAmSat INTELSAT LTD: Inks Pact With CSI for AmpiageSM Distribution B O L I V I A * BOLIVIA: YPFB Inked Joint Venture with Petroleos de Venezuela B R A Z I L BANCO ITAU: Will Handle Purchase of BankBoston Units as One BANCO NACIONAL: Will Loan BRL75.5 Mil. to GOL Linhas Aereas BRASIL TELECOM: Appoints Caio Tulio Costa as Internet Units' CEO COMPANHIA VALE: Sells Stake in Gulf Industrial for US$418 Mil. EMBRATEL PARTCIPACOES: Provides Internet via Satellite in Para GERDAU SA: Authorizes Acquisition of Shares GOL LINHAS: Secures BRL75.7 Mil. Financing from Banco Nacional TRANSAX INTERNATIONAL: Auditor Raises Going Concern Doubt TRANSAX INT'L: March 31 Balance Sheet Upside Down by US$2.2 Mil. VARIG: Brazilian Court Publishes Tender for June 5 Sale C A Y M A N I S L A N D S AQUITANIA FUND: Sets June 15 as Last Meeting of Shareholders AQUITANIA MASTER: Final Shareholders Meeting Set for June 15 BULL INVESTMENT: Sets Final Shareholders Meeting on June 3 CITY CLUBS: Creditors Must File Proofs of Claim by June 16 FIVE MILE: Schedules Last Shareholders Meeting on June 15 FIVE MILE (OFFSHORE): Final Shareholders Meeting Set for June 15 HENRY JOHNSON: Proofs of Claim Filing Ends by June 19 MULTI-STRATEGY: Filing of Proofs of Claim Ends by June 20 THEOREMA E&M: Sets June 16 Deadline for Proofs of Claim Filing YL CAPITAL: Creditors Have Until June 19 to File Proofs of Claim C O L O M B I A * COLOMBIA: Presents Vision 2019 Project for Mining Development C O S T A R I C A * COSTA RICA: Will Launch Free Trade Negotiations with Taiwan D O M I N I C A N R E P U B L I C FALCONBRIDGE: Chief Officer Favors Inco Bid Over Xstrata's * DOMINICAN REPUBLIC: Cement Producers Seek Price Increase * DOMINICAN REPUBLIC: Posts 12.3% Boost in Tourism Sector * DOMINICAN REPUBLIC: Will Launch Free Trade Talks with Taiwan E C U A D O R * ECUADOR: Refuses to Join Venezuela's Energy Alliance Versus US * ECUADOR: State Telecommunications Firm Will Expand Network E L S A L V A D O R MILLICOM INT'L: In Due Diligence With Potential Share Buyer * EL SALVADOR: Will Hold Talks on Free Trade with Taiwan G U A T E M A L A BANCO INDUSTRIAL: Posts GTQ86.5 Mil. First Quarter 2006 Earnings H O N D U R A S * HONDURAS: Holding Talks on Free Trade with Taiwan J A M A I C A MIRANT CORP: Cadwalader Wickersham Asks for US$3 Million Bonus MIRANT CORP: MC Asset Recovery Wants BofA to Produce Documents M E X I C O AMERICAN AXLE: Moody's Lowers Family & Notes Ratings to Ba3 GENERAL MOTORS: 20,000+ Workers Take Buy-Out & Retirement Offers TOMMY HILFIGER: Completes Tender Offer of 9% Sr. Bonds Due 2031 TV AZTECA: US Securities & Exchange Commission Mulls Settlement P A N A M A KANSAS CITY SOUTHERN: Names New Finance Department Leadership * PANAMA: Approves Activation of Telephony Service Accords P U E R T O R I C O ADELPHIA COMMS: Court Okays Erie County Lease-Back Transaction ADELPHIA COMMS: Dispute Ensues Over Bank Lenders Distribution KMART CORP: Court Signs Order Resolving LNR & Goldblatt Dispute T R I N I D A D & T O B A G O BWIA WEST: Ian Brunton Named as Vice President for Operations U R U G U A Y * URUGUAY: Files With US SEC to Sell US$2.8 Bil. of Securities V E N E Z U E L A PETROLEOS DE VENEZUELA: Inks PetroAndina Joint Venture with YPFB * VENEZUELA: OPEC Holding 141st Meeting on June 1 in Caracas - - - - - ================= A R G E N T I N A ================= AUDIO ROSARIO: Court Converts Bankruptcy to Reorganization ---------------------------------------------------------- Audio Rosario S.A.'s bankruptcy case has been converted to a reorganization proceeding by a court in Rosario, Santa Fe. As a result, the submission of a general report on June 16, 2006, by court-appointed trustee Hugo Pedro Ainsa has been postponed, Infobae reports. Under Insolvency protection, the company will be able to draft a proposal designed to settle its debts with creditors. The reorganization also prevents an outright liquidation. Mr. Ainsa will still verify creditors' proofs of claim. Creditors with unverified claims cannot participate in the company's settlement plan. As reported in the Troubled Company Reporter on March 16, 2006, the company started with its bankruptcy proceeding after the court ordered Mr. Ainsa to verify the creditors' proofs of claim until March 27, 2006. The individual reports on the verified claims were submitted in court on May 8, 2006. The debtor can be reached at: Audio Rosario S.A. Rioja 1302, Rosario Santa Fe, Argentina The trustee can be reached at: Hugo Pedro Ainsa E. Zeballos 2071, Rosario Santa Fe, Argentina DEPORTIVA INTEGRAL: Claims Validation Ends on July 7 ---------------------------------------------------- Court-appointed trustee Carlos Daniel Grela will stop validating claims against bankrupt company Deportiva Integral S.A. after July 7, 2006, Infobae reports. Mr. Grela will present the validated claims in court as individual reports on Sept. 4, 2006. The trustee will also submit a general report on the case on Oct. 17, 2006. Buenos Aires' Court No. 11 declared the company bankrupt at the behest of Jose Luis Oviedo, whom the company owes US$53,843.74. Clerk No. 21 assists the court on this case. The debtor can be reached at: Deportiva Integral Reconquista 336 Buenos Aires, Argentina The trustee can be reached at: Carlos Daniel Grela Tucuman 1585 Buenos Aires, Argentina EXTREM SUD: Seeks Court Approval to Reorganize Business ------------------------------------------------------- A Buenos Aires court is reviewing the merits of Extrem Sud S.A.'s petition to reorganize. Infobae recalls that the company filed the petition following cessation of debt payments. Reorganization will allow the company to avoid bankruptcy by negotiating a settlement with its creditors. The debtor can be reached at: Extrem Sud S.A. Godoy Cruz 1727 Buenos Aires, Argentina IN GRAPHIC: Individual Reports Due in Court on July 3 ----------------------------------------------------- Court-appointed trustee Hermman Adrian Quiroga stopped verifying claims from In Graphic S.R.L.'s creditors on May 17, 2006. Infobae relates that verified claims will be used as basis in creating individual reports, which is expected in court on July 3, 2006. Huaco importaciones started reorganization after a Cordoba court approved its petition to reorganize. The debtor can be reached at: In Graphic S.R.L. Videla del Pino 2746 Costanera Norte Ciudad de Cordoba Cordoba, Argentina The trustee can be reached at: Hermman Adrian Quiroga Coronel Olmedo 51 Ciudad de Cordoba Cordoba, Argentina METALURGICA MASELLI: Trustee Stops Accepting Claims on July 5 ------------------------------------------------------------- Omar Lares, the trustee appointed by the Buenos Aires court for the bankruptcy of Metalurgica Maselli S.R.L., will no longer entertain claims that are submitted after July 5, 2006, Infobae reports. Creditors whose claims are not validated will be disqualified from receiving any payment that the company will make. Argentine bankruptcy law requires the trustee to provide the court with individual reports on the forwarded claims and a general report containing an audit of the company's accounting and business records. The dates of submission of these reports are yet to be disclosed. The trustee can be reached at: Omar Lares Viamonte 749 Buenos Aires, Argentina SELECTO S.A.: Concludes Reorganization Proceeding ------------------------------------------------- Buenos Aires-based company Selecto S.A. concluded its reorganization, according to data released by Infobae on its Web site. The conclusion came after the city's Court No. 25, with assistance from Clerk No. 49, homologated the debt plan signed between the company and its creditors. As reported in the Troubled Company Reporter on Feb. 28, 2006, Court No. 25 declared the company bankrupt at the request of Ms. Natalia Tintaya Flores, whom the company owes US$10,480.99. The court appointed Marcelo Dborkin as trustee for the proceeding. The debtor can be reached at: Selecto S.A. Avenida Pueyrredon 2015 Buenos Aires, Argentina The trustee can be reached at: Marcelo Dborkin Avenida Callao 295 Buenos Aires, Argentina SOL DE ACUARIO: Verification of Proofs of Claim Ends on July 13 --------------------------------------------------------------- Elisa Esther Tomattis, the court-appointed trustee for the bankruptcy case of Sol de Acuario S.A., has started verifying creditors' proofs of claim. Verification phase will end on July 13, 2006. The verified claims will be submitted in court on Aug. 31, 2006. A general report, which contains an audit of the company's accounting and banking records, will be presented in court on Oct. 13, 2006. La Nacion relates that Buenos Aires' Court No. 9 declared the company bankrupt at the request of Cooperativa Agricultor Ruiz de Montoya Limitada, which the company owes US$4,363.79. Clerk No. 17 assists the court in this case. The debtor can be reached at: Sol de Acuario S.A. Belgrano 355 Buenos Aires, Argentina The trustee can be reached at: Elisa Esther Tomattis Rodriguez Pena 110 Buenos Aires, Argentina SUCESORES DE ANTONIO: Claims Verification Deadline Is on July 10 ---------------------------------------------------------------- The verification of creditors' claims for the Sucesores de Antonio Barberio S.A. insolvency case will end on July 10, 2006, Infobae reports. Gonzalo Daniel Cueva, the court-appointed trustee who will examine the claims, will submit the validation results as individual reports on Sept. 5, 2006. He will present a general report in court on Oct. 17, 2006. The company's creditors will vote on a settlement proposed by the company on April 20, 2007. As reported in the Troubled Company Reporter on May 8, 2006, the company a reorganization petition in Buenos Aires' Court No. 1 after it stopped paying its debts on Nov. 3, 2001. The debtor can be reached at: Sucesores de Antonio Barberio S.A. Mendoza 4834 Buenos Aires, Argentina The trustee can be reached at: Gonzalo Daniel Cueva Terrero 1752 Buenos Aires, Argentina SUDAMERICAN S.A.: Creditors Must Submit Claims by July 6 -------------------------------------------------------- Creditors of Sudamerican S.A., whose reorganization has progressed into bankruptcy, are required to submit claims by July 6, 2006, to Ernesto Horacio Garcia, the court-appointed trustee. Argentine news source Infobae relates that Buenos Aires' Court No. 5, with the assistance from Clerk No. 10, ruled that the company is bankrupt. The court also ordered the trustee to prepare individual reports after the verification process is completed, and have them ready by Sept. 1, 2006. A general report on the bankruptcy process is expected on Oct. 30, 2006. As reported in the Troubled Company Reporter on Feb. 11, 2005, Court No. 5 declared the company bankrupt at the behest of Random Argentina S.A., which the company owes US$172,500. Verification phase was set to end on April 11, 2005. The submission of individual reports in court was also scheduled on May 23, 2005, followed by the general report on Aug. 25, 2005. However, the submission of the reports was postponed after the court converted the bankruptcy case into a reorganization proceeding, as reported in the Troubled Company Reporter on April 28, 2005. Mr. Garcia was ordered by the court to verify creditors' claims in the insolvency case until May 30, 2005. The submission of the individual reports was scheduled on June 28, 2005, followed by the general report on Aug. 24, 2005. An informative assembly was also set for Feb. 24, 2006. Creditors of Sudamerican S.A. were not able to vote on the company's settlement plan as the court ordered the company to proceed with another bankruptcy proceeding. The debtor can be reached at: Sudamerican S.A. La Pampa 2037 Buenos Aires, Argentina The trustee can be reached at: Ernesto Horacio Garcia Montevideo 536 Buenos Aires, Argentina TIMARU S.A.: Asks Court's Approval to Restructure Debts ------------------------------------------------------- A court based in Buenos Aires is studying the request for reorganization filed by local company Timaru S.A., says Infobae. The report adds that that the company sought for reorganization following cessation of debt payments, which Infobae did not disclose. Under a restructuring supervised by the Court, the Debtor will be able to draft a settlement plan with its creditors. The debtor can be reached at: Timaru S.A. Avenida Honorio Puyrredon 364 Buenos Aires, Argentina ============= B A H A M A S ============= WINN-DIXIE: Balks at Florida Tax Agency's Move to Collect Taxes --------------------------------------------------------------- As reported in the Troubled Company Reporter on May 24, 2006, the Florida Tax Collectors ask the U.S. Bankruptcy Court for the Middle District of Florida to recognize the continued provision of necessary services to Winn-Dixie Stores, Inc., and its debtor-affiliates and their locations, and ensure that taxing authorities will be refunded the full amount of the ad valorem taxes owed the Florida Tax Collectors. Furthermore, the Florida Tax Collectors ask the Court to: (a) provide that all tangible personal property and real estate taxes will be paid in full in accordance with standard commercial sales practices; or (b) in the alternative, order that: * all ad valorem tax liens will attach to the proceeds and that 2006 postpetition taxes will be paid before delinquency in accordance with Florida law; and * sufficient provision be made to separate and escrow into an account identified to their benefit for payment of the full amount of taxes plus monthly accrued interest and attorneys' fees as allowed by Florida statutes. The Florida Tax Collectors assert that the Debtors' amended request seeks to essentially liquidate, either through sale or lease rejection procedures, the Debtors' remaining interests in the listed stores, 28 of which are located within the state of Florida. Debtors' Objection Winn-Dixie Stores, Inc., and its debtor-affiliates ask the U.S. Bankruptcy Court for the Middle District of Florida to deny the Florida Tax Collectors' request because they are: (a) not entitled to adequate protection in connection with taxes owed by the landlords on property leased by the Debtors; and (b) adequately protected by an equity cushion in excess of 98%, on property owned by the Debtors, regardless of the ultimate valuation of these properties. The Debtors dispute that they owe the Florida Tax Collectors taxes on properties they lease rather than own. D. J. Baker, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York, asserts that the Debtors have paid to their landlords, as required by their leases, all ad valorem taxes accruing postpetition -- as administrative expenses of their estates. With regard to 2005 ad valorem taxes on real and personal real property owned by the Debtors, the amount the Debtors actually owe and have not paid is not more than US$8,600,000. Moreover, any tax claims against property owned by the Debtors, which are ultimately allowed by the Court, are secured under Florida law by first liens against the taxed property. It is undisputed that the Florida Tax Collectors' tax claim against the Debtors is over-secured, Mr. Baker says. The Debtors' property is worth in excess of US$430,000,000, assuming a tax effective rate of 2%. Mr. Baker explains that the difference between the value of the collateral securing the Florida Tax Collectors' secured tax claim and the amount of the tax claim itself represents an equity cushion in favor of the Florida Tax Collectors of more than 98%. Even taking into account the Debtors' assertion that these properties have been overvalued for tax purposes, any decrease in tax value will correspondingly decrease the tax liability, so that there will always be an equity cushion of 98%, assuming an effective tax rate of 2%, Mr. Baker maintains. Unpaid Taxes As reported in the Troubled Company Reporter on Nov. 14, 2005, at the Florida Tax Collectors' request, the Court further extended the Bar Date to Nov. 23, 2005, solely as to the Florida Tax Collectors' claims on account of the 2005 ad valorem taxes. The Florida Tax Collectors asked the Court to allow their claims to be filed without prejudice to any further amendments relative to the amounts due. The Florida Tax Collectors clarify that their claims will be without prejudice and will not be considered a waiver of any defenses whatsoever. The Florida Tax Collectors have contacted the Debtors and have been proactive in identifying and liquidating outstanding tax obligations due pursuant to Florida law. This process, if allowed to continue, will greatly reduce the amount of unnecessary "Omnibus Claims Objections" which burden the Court and create excessive administrative professional fee expenses for the Debtors. The Florida Tax Collectors believe that the Debtors intend to contest virtually all of the Debtors' tangible personal property and real estate taxes in the state of Florida. According to the Florida Tax Collectors, despite their repeated requests to work together informally with the Debtors to allow them to pay the appropriate taxes with the maximum discount, the Debtors refused to do so. In this regard, the Florida Tax collectors asked the Court: -- to compel the Debtors to consult with them to determine the actual tax accounts and amounts in which the Debtors are responsible for paying; and -- that the full amount of the taxes either be paid and contested pursuant to Florida law in the Florida judicial system or, alternatively, that the full amount of the Debtors' ad valorem property taxes plus a monthly deposit of interest, be paid into a separate segregated escrow account. 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 US$2,235,557,000 in total assets and US$1,870,785,000 in total debts. (Winn-Dixie Bankruptcy News, Issue No. 38; Bankruptcy Creditors' Service, Inc., 215/945- 7000). ============= B E R M U D A ============= FOSTER WHEELER: Moody's Rates US$250M Sr. Debt Facility at Ba3 -------------------------------------------------------------- Moody's Investors Service upgraded Foster Wheeler LLC's corporate family rating to B1 from B3 and assigned a Ba3 rating to FWC's US$250 million senior secured bank revolving credit facility. The rating outlook is changed to Positive. The upgrade and positive outlook reflect the successful completion of the company's debt reduction program and continued improvement in demand within FWC's key end markets resulting in increased bookings, backlog and free cash flow generation. The five-year US$250 million credit facility for standby letters of credit, with a final maturity date of 2010, includes a currently undrawn US$75 million sub-limit for borrowings. Substantially all the assets and capital stock of Foster Wheeler Ltd. and its direct subsidiaries secure the credit facility. Guarantees are provided by Foster Wheeler Ltd. and certain domestic and foreign subsidiaries. Financial covenants include a maximum leverage ratio, a fixed charge ratio and a minimum liquidity level. The company was in compliance with its covenants at March 31, 2006, and expects to remain in compliance throughout the year. The key rating factors driving the upgrade and positive outlook include: 1) the completion FWC's debt reduction program, reducing debt by $380 million since 2004 to US$190 million; 2) a significant improvement in global E&C market conditions and an improving global power outlook, which should continue to drive growth in FWC's bookings and backlog; 3) Moody's expectation of continued improvement in free cash flow generation despite the drag from asbestos settlements funded from operations; and 4) the removal of the going concern opinion and the correction of material weaknesses identified in 2005. Moody's noted that the Ba3 rating for the bank facility incorporates the benefits and limitations of the collateral, as well as the modest level of potential borrowing. The facility represents virtually all of FWC's corporate debt, is expected to remain undrawn, and is highly collateralized, resulting in a one notch upgrade from the corporate family rating. Moody's has withdrawn the B3 rating on the 10.359% senior secured notes due in 2011 and the Caa3 rating on the FW Preferred Capital Trust I - Preferred trust securities following FWC's exchange and/or redemption of these issuances. Moody's previous rating action on FWC was the June 16, 2005, upgrade of the corporate family rating to B3 from Caa2. Headquartered in Hamilton, Bermuda, Foster Wheeler Ltd., is an industrial engineering, construction, maintenance, and related technical service company. Consolidated operating revenues were US$2.2 billion in 2005. INTELSAT LTD: Department of Justice Clears Merger With PanAmSat --------------------------------------------------------------- Intelsat, Ltd., has been informed that the United States Department of Justice is closing its antitrust investigation of the company's proposed merger with PanAmSat Holding Corporation. The Justice Department is not seeking any conditions on the proposed merger and is not otherwise commenting on it. The transaction remains under review by the U.S. Federal Communications Commission. "We are gratified that the Justice Department's Antitrust Division, after a comprehensive review, agreed with us that the Intelsat-PanAmSat merger does not pose any threat to competition," said Phillip Spector, Executive Vice President & General Counsel of Intelsat. "We demonstrated that the combination of Intelsat and PanAmSat will create powerful efficiencies, with complementary fleets assuring enhanced protection and flexibility for our diverse sets of customers." The Chief Executive Officer of Intelsat, David McGlade, said, "With the Justice Department's decision not to challenge our transaction, we are moving full speed ahead with our integration planning and preparations. We will be finalizing our financing over the next few weeks, and should be in a position to close soon after receiving FCC approval. The new Intelsat post-merger will be one, fully-integrated, world-class provider of advanced communications solutions, with an employee team focused on customer service and technical excellence." Intelsat and PanAmSat announced their merger agreement on August 29, 2005. Under the agreement, Intelsat will acquire PanAmSat for US$25 per share in cash, or US$3.2 billion. In addition, approximately US$3.2 billion in debt of PanAmSat and its subsidiaries will remain outstanding or be refinanced. Closing of the transaction is subject, among other things, to the receipt of financing by Intelsat and to obtaining regulatory approval from the FCC. All other regulatory approvals required prior to closing have been obtained. * * * As reported in the Troubled Company Reporter on April 28, 2006, Fitch currently has Intelsat and its subsidiaries' debt on Rating Watch Negative, and rated its debt as follows: Intelsat, Ltd. -- Issuer default rating: B- -- Senior unsecured notes: CCC/RR6 Intelsat (Bermuda), Ltd. -- Senior unsecured discount notes: B-/RR4 Intelsat Subsidiary Holding Company Ltd. -- Senior secured credit facilities: BB-/RR1 -- Senior unsecured notes: B+/RR2 INTELSAT LTD: Inks Pact With CSI for AmpiageSM Distribution ----------------------------------------------------------- Content Services, Inc., or CSI inked a distribution agreement for AmpiageSM, Intelsat Ltd.'s satellite-based, open- architecture, video transport platform. Under the agreement, CSI will be the first Ampiage distributor to focus on delivering wholesale video, voice and data services to retail providers in the multi-dwelling unit, hospitality, municipality, university and master planned community markets. Content Services, through its CSI Digital subsidiary, will initially focus on distribution to multiple system operators seeking to cost-effectively upgrade video content to MPEG-4 as well as telecommunications operators and Internet Service Providers looking to enter the IPTV or triple-play (voice, video and data) market. CSI Digital customers are expected to realize significant cost savings by taking advantage of the flexible packaged offerings and reduced capital expense associated with the use of Ampiage. "The agreement with Intelsat is key to our ability to deliver price advantaged wholesale digital content to our customers," added David Luman, CEO of Content Services. "MSOs and telcos traditionally have had to spend millions of dollars simply to be able to receive digital content. Through our relationship with Intelsat, CSI Digital customers can now upgrade existing MPEG-2 systems or enter the digital video market at a fraction of the cost required previously, while creating unique local packages customized for geographic and demographic concentrations." "CSI Digital's customers will realize the benefit of quick market entry with substantial cost savings by using our Ampiage service," said Stephen Spengler, Senior Vice President, Sales and Marketing, at Intelsat. "Intelsat works closely with distributors such as CSI, who are often able to provide additional specialized services that complement Ampiage, to offer high-quality and value-added services to their customers. We're encouraged by the enthusiasm with which Ampiage has been received and are pleased to have signed CSI as a distributor partner." About Content Services Content Services is a nationwide provider of content and communications services. The company's divisions provide wholesale digital content (voice, video or data) to service providers, fiber, copper and cable based construction services, as well as the distribution of digital content material and equipment. About Intelsat Ltd. Intelsat Ltd. is a global communications provider offering flexible and secure services to customers in over 200 countries and territories. Intelsat has maintained a leadership position for over 40 years by distributing video, voice, and data for television and content providers, government and military entities, major corporations, telecommunications carriers, and Internet service providers. * * * As reported in the Troubled Company Reporter on April 28, 2006, Fitch currently has Intelsat and its subsidiaries' debt on Rating Watch Negative, and rated its debt as follows: Intelsat, Ltd. -- Issuer default rating: B- -- Senior unsecured notes: CCC/RR6 Intelsat (Bermuda), Ltd. -- Senior unsecured discount notes: B-/RR4 Intelsat Subsidiary Holding Company Ltd. -- Senior secured credit facilities: BB-/RR1 -- Senior unsecured notes: B+/RR2 ============= B O L I V I A ============= * BOLIVIA: YPFB Inked Joint Venture with Petroleos de Venezuela --------------------------------------------------------------- As previously reported in the Troubled Company Reporter on May 15, 2006, Bolivia's state oil firm Yacimientos Petroliferos Fiscales Bolivianos aka YPFB agreed to sign a joint venture accord with its Venezuelan counterpart, Petroleos de Venezuela SA aka PDVSA. The joint venture will be called Petroandina Comercio y Suministro. As its first project, it will open 15 service stations in eight cities for the sale of gasoline, diesel and vehicular natural gas aka VNG. Bolivia will have a 51% stake in Petroandina. PDVSA told Business News Americas that its president, Rafael Ramirez, signed various accords -- that included the joint venture -- with Jorge Alvarado, the head of Bolivia's state-run oil firm YPFB, on Friday. A spokesperson from the energy ministry of Bolivia informed BNamericas that the country and Venezuela agreed to invest at least US$1.5 billion in various projects in Bolivia. The government of Venezuela proposed the creation of Petroandina in a regional oil and gas scheme in Andean countries in July 2005, BNamericas recalls. BNamericas states that other documents signed by Messrs. Ramirez and Alvarado include: -- letters of intent for the installation of two natural gas liquids separation plants expected to be operational in two years, -- a memorandum of understanding aka MOU for the creation of a nitrogen fertilizer manufacturing complex called Fertisur, -- a letter of intent to begin studies for upstream PDVSA activities in Bolivia, -- accord that allows Venezuela to administer training to 200 Bolivian technicians for the development of technology used by PDVSA's R&D subsidiary Intevep, -- agreement that allows Venezuela to provide education to 250 Bolivian students at the technical school of Venezuela's state petrochemicals firm Pequiven. The agreements were signed under the Bolivarian Alternative for the Americas aka ALBA, a scheme proposed by Venezuela's President Hugo Chavez to counter the Free Trade Area of the Americas, an agreement sponsored by the United States, BNamericas relates. * * * Venezuela's foreign currency long-term debt is rated B2 by Moody's, B+ by Standard & Poor's, and BB- by Fitch. * * * Fitch Ratings assigned these ratings on Bolivia: Rating Rating Date ------ ----------- Country Ceiling B- Jun. 17, 2004 Long Term IDR B- Dec. 14, 2005 Local Currency Long Term Issuer Default Rating B- Dec. 14, 2005 =========== B R A Z I L =========== BANCO ITAU: Will Handle Purchase of BankBoston Units as One ----------------------------------------------------------- Banco Itau Holding Financeira will treat the acquisition of BankBoston Chilean and Uruguayan units as a single purchase, an Itau spokesperson informed Business News Americas. Banco Itau and Bank of America aka BofA reached an agreement earlier in May regarding the purchase of BankBoston Brazil. Itau was also given exclusive rights to buy BankBoston operations in Chile and Uruguay. According to the Chilean press, Itau said it will purchase the BankBoston Chile -- a unit that focuses on the corporate and higher-income segments and commands 2.5% loan market share -- and expand its operations into fund management. Itau plans to change the brand. BNamericas relates that BankBoston Uruguay, on the other hand, ranks third in its market with UYU20.5 billion assets and UYU17.6 billion loans at end the end of April. Itau is given until Aug. 1, 2006, to complete the purchases, BNamericas reports. About BankBoston BankBoston is one of the 10 largest banks in Argentina in terms of assets, deposits and loans and it ranks among the top five private banks. It operates through 89 branches and has assets of US$2.5 billion. About Banco Itau Banco Itau currently has 51 thousand employees serving more than 16 million clients, through its network of 2,391 branches and 22 thousand ATMs. * * * As reported in the Troubled Company Reporter on March 9, 2006, Standard & Poor's Ratings Services assigned a 'BB' currency credit rating on Banco Itau S.A. BANCO NACIONAL: Will Loan BRL75.5 Mil. to GOL Linhas Aereas ----------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social S.A. aka BNDES will loan BRL75.7 million to GOL Linhas Aereas Inteligentes -- Brazil's low-cost, low-fare airline. GOl said that its Board of Directors authorized its operating company GOL Transportes Aereos S.A. to enter into the loan with BNDES. The tenor of the BNDES loan is six years with an interest rate of 2.65% over the long-term borrowing rate aka TJLP, currently set at 8.15% in Reals. The direct credit line approved by the BNDES will be used to finance a significant part of the Company's multi-year investment plan for the three-year period ending in fiscal 2006, with a focus on the construction of facilities at the GOL Aircraft Maintenance Center at the Confins International Airport in Minas Gerais, the acquisition of nationally manufactured equipment, the acquisition and customization of nationally manufactured software, and the technical training of employees. The BNDES financing aims to support the company's long-term growth in the civil aviation market, improvement in productivity and efficiency ratios, and help create jobs for highly skilled personnel. * * * As reported in the 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. BRASIL TELECOM: Appoints Caio Tulio Costa as Internet Units' CEO ---------------------------------------------------------------- Brasil Telecom Participacoes said at a press conference that it has started the revamp of the management of its Internet units. According to Business News Americas, Brasil Telecom has chosen Caio Tulio Costa as Chief Executive Officer for its Internet units: -- iG, -- BrTurbo, and -- iBest. BNamericas relates that US consultancy Boston Consulting Group will help Brasil Telecom reposition the three brands. Ury Rabinovitz, the director of business development and Internet in Brasil Telecom, told BNamericas that IG will be strengthen with a re-branding and marketing campaign beginning June. The brands altogether have 3.5 million users of narrowband and 800,000 users of broadband, BNamericas states. * * * Brasil Telecom SA is controlled by Brasil Telecom Participacoes SA which is the publicly-listed holding company for 10 fixed- line operating companies located in the western, central, and southern regions of Brazil and in the Federal District region. Brasil Telecom Participacoes' local currency long-term debt carries Fitch's BB+ rating. COMPANHIA VALE: Sells Stake in Gulf Industrial for US$418 Mil. -------------------------------------------------------------- Companhia Vale do Rio Doce aka CVRD sold its 50% stake in Gulf Industrial Investment Company aka GIIC, a pellet producer based in Bahrain, for US$418 million. Out of the amount, US$41 million corresponds to retained earnings. Having different views about GIIC business management, CVRD and its partner in the joint venture, Gulf Investment Corporation, decided to enter into a mandatory buy-sell agreement to solve the divergences in accordance with the current shareholders' agreement. One of the key points of the company's strategy for the ferrous minerals business is to pursue the consolidation of its global leadership in the pellet sea borne market to maximize the benefits arising from the significant long term growth potential of the pellet demand. CVRD is developing the Itabiritos project, in the state of Minas Gerais, Brazil, which involves the construction of a pellet plant with a production capacity of seven million tons a year. Simultaneously, the Tubarao VIII project will be submitted to the approval of CVRD's Board of Directors. Tubarao VIII involves the construction of a pelletizing plant at the CVRD port of Tubarao, Vitoria, state of Espirito Santo, Brazil, with a capacity to produce seven million tons per year. Samarco, a joint venture where CVRD owns 50%, is investing in a project to build its third pellet plant, with 7.6 million tons per year production capacity. GIIC produced four million tons of pellets last year, 7.1% of the total pellet production of CVRD and its joint ventures, 56.4 million tons. The sale of the company's stake will not thwart its strategy to expand its presence in the attractive global pellet market. The conclusion of the projects is expected to increase total production capacity of CVRD and its joint ventures to 74.0 million tons by 2008. The sale of the stake in GIIC will not have any effect on the supply of pellets to CVRD clients in the Middle East, as the company has capacity to continue to supply them from its operating units in Brazil. Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio Doce -- http://www.cvrd.com.br/-- engages primarily in mining and logistics businesses. It engages in iron ore mining, pellet production, manganese ore mining, and ferroalloy production, as well as in the production of nonferrous minerals, such as kaolin, potash, copper, and gold. * * * On Jan. 5, 2006, Fitch Ratings assigned a long-term foreign currency rating of 'BB' to Vale Overseas Limited's proposed US$300 million issuance due 2016. Vale Overseas is a wholly owned subsidiary of Companhia Vale do Rio Doce, a large diversified mining company located in Brazil. The notes are unsecured obligations of Vale Overseas and are unconditionally guaranteed by CVRD. The obligation to guarantee the notes rank pari passu with all of CVRD's other unsecured and unsubordinated debt obligations. Fitch expects the proceeds of this issuance to be used for general corporate purposes and primarily to pay down US$300 million of Vale Overseas' 9.0% guaranteed notes due 2013. Fitch also maintained these ratings for CVRD and CVRD Finance Ltd., a wholly owned subsidiary of CVRD: -- CVRD foreign currency rating: 'BB', Outlook Positive; -- CVRD local currency rating: 'BBB' Outlook Stable; -- CVRD national scale rating: 'AAA(bra)', Outlook Stable; -- CVRD Finance Ltd.: series 2000-1 and series 2000-3: 'BBB'; -- CVRD Finance Ltd., series 2000-2 and series 2003-1: 'AAA'. EMBRATEL PARTCIPACOES: Provides Internet via Satellite in Para -------------------------------------------------------------- The upstate area of Para can now access the broadband Internet via satellite through the Amazon Sat service using Embratel Participacoes' concessionaire, Star One. Amazon Corp. provider is trading the product in that area. With this new service, which provides the transmission of video, audio, software downloading and web contents, every company, farm and institution in the upstate area of Para, including city halls, local councils and schools will be able to join the globalized world with enhanced speed and quality. Although the information flow is mainly in the urban area of the state - including Belem, Ananindeua, Marituba e Benevides, the upstate municipalities lacked good and quick access to the world network. This novelty - a simple solution that often drops the calling costs and other operational costs as well - includes customized services for companies, homes and industries on a 24/7 basis. This technology needs no telephone lines, modems, cable-modems or additional providers, and offers superior application performance with navigators, electronic mails, chats, etc. Embratel offers a range of complete telecommunications solutions to the market all over Brazil, including local, long distance domestic and international telephone services, data, video and internet transmission, and is present all over the country with its satellite solutions. Embratel is the market leader in revenues with Long Distance, Domestic and International calls. Embratel Participacoes is rated by Moody's: * local currency issuer rating -- B1; and * senior unsecured debt -- B2. GERDAU SA: Authorizes Acquisition of Shares ------------------------------------------- The Board of Directors of Metalurgica Gerdau and Gerdau S.A. decided to authorize the acquisition of shares issued by both companies under Instructions 10/80 and 268/97 of the Brazilian Securities Commission -- Camissao de Valores Mobiliarios, on a meeting held on May 26, 2006. Theacquisitions will be carried out using cash funds of existing profit reserves and according to the following conditions and limits: Metalurgica Gerdau S.A. -- Up to 1,500,000 preferred shares, representing approximately 1.25% of outstanding preferred stock, which totaled 119,565,090 preferred shares on Apr. 30, 2006, to remain in treasury and later cancellation. Gerdau S.A. -- Up to 3,000,000 preferred shares, representing approximately 1.02% of outstanding preferred stock, which totaled 294,023,554 preferred shares on Apr. 30, 2006, to remain in treasury and for the Company's Long Term Incentive Program or later cancellation. These authorizations will remain in force for a maximum of 60 days from this date, and ending on July 24, 2006. The Officers of each company will determine the quantities of shares and transaction opportunities. The operations will be carried out at stock exchanges, at market prices, through the following brokers: Bradesco S.A. Corretora de Titulos e Valores Mobiliarios Avenida Ipiranga, 282 Sao Paulo, Brazil Itau Corretora de Valores S.A. Avenida Dr. Hugo Beolchi, 900 Sao Paulo, Brazil Merrill Lynch S.A. Corretora de Titulos e Valores Mobiliarios Avenida Brigadeiro Faria Lima, 3400 Sao Paulo, Brazil Unibanco Investshop Corretora de Valores Mobiliarios S.A. Avenida Eusebio Matoso, 891 Sao Paulo, Brazil UBS Corretora de Cambio e Valores Mobiliarios S.A. Praia do Botafogo, 228 Rio de Janeiro, Brazil Headquartered in Porto Alegre, Brazil, Gerdau S.A. -- http://www.gerdau.com.br-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay and the United States. Gerdau SA's US$600 million 8-7/8% perpetual bond is rated Ba1 by Moody's, BB+ by S&P, and BB- by Fitch. GOL LINHAS: Secures BRL75.7 Mil. Financing from Banco Nacional -------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social S.A. aka BNDES will loan BRL75.7 million to GOL Linhas Aereas Inteligentes -- Brazil's low-cost, low-fare airline. GOl said that its Board of Directors authorized its operating company GOL Transportes Aereos S.A. to enter into the loan with BNDES. The tenor of the BNDES loan is six years with an interest rate of 2.65% over the long-term borrowing rate aka TJLP, currently set at 8.15% in Reals. The direct credit line approved by the BNDES will be used to finance a significant part of the Company's multi-year investment plan for the three-year period ending in fiscal 2006, with a focus on the construction of facilities at the GOL Aircraft Maintenance Center at the Confins International Airport in Minas Gerais, the acquisition of nationally manufactured equipment, the acquisition and customization of nationally manufactured software, and the technical training of employees. The BNDES financing aims to support the company's long-term growth in the civil aviation market, improvement in productivity and efficiency ratios, and help create jobs for highly skilled personnel. * * * As reported in the 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. About Gol Linhas Headquartered in Sao Paulo, Brazil, Gol Linhas Areas Inteligentes S.A. -- http://www.voegol.com.br-- through its subsidiary, Gol Transportes Aereos S.A., provides airline services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay. The company's services include passenger, cargo, and charter services. As of March 20, 2006, Gol Linhas provided 440 daily flights to 49 destinations and operated a fleet of 45 Boeing 737 aircraft. The company was founded in 2001. * * * On March 21, 2006, Moody's Rating Services assigned a Ba2 rating on Gol's Long-Term Corporate Family Rating. TRANSAX INTERNATIONAL: Auditor Raises Going Concern Doubt --------------------------------------------------------- Moore Stephens, P.C., in New York, raised substantial doubt about Transax International Limited's ability to continue as a going concern after auditing the Company's consolidated financial statements for the year ended Dec. 31, 2005. The auditor pointed to the Company's losses, and working capital and stockholders' deficiencies. The Company reported a US$637,919 net loss on US$3,380,150 of revenues for the year ended Dec. 31, 2005. At Dec. 31, 2005, the Company's balance sheet showed US$1,669,742 in total assets and US$3,185,120 in total liabilities, resulting in a US$1,515,378 stockholders' deficit. The Company's Dec. 31 balance sheet also showed strained liquidity with US$494,244 in total current assets available to pay US$2,563,200 in total current liabilities coming due within the next 12 months. A full-text copy of the Company's 2005 Annual Report is available for free http://ResearchArchives.com/t/s?a11 Based in Miami, Florida, Transax International Limited (OTCBB: TNSX) -- http://www.transax.com/-- provides hospitals, physicians and health insurance companies with innovative health information management systems to manage coding, compliance, abstracting and record management's processes. The Company's subsidiaries are: TDS Telecommunication Data Systems LTDA provides those services in Brazil; Transax Australia Pty Ltd. provides those services in Australia; and Medlink Technologies, Inc., initiates research and development. TRANSAX INT'L: March 31 Balance Sheet Upside Down by US$2.2 Mil. ---------------------------------------------------------------- Transax International Limited delivered its first quarter financial statements for the three months ended March 31, 2006, to the Securities and Exchange Commission on May 19, 2006. The Company reported a US$629,927 net loss on US$981,058 of revenues for the three months ended March 31, 2006. At March 31, 2006, the Company's balance sheet showed US$1,836,246 in total assets and US$4,041,575 in total liabilities, resulting in a US$2,205,329 stockholders' deficit. The Company's March 31 balance sheet also showed strained liquidity with US$691,719 in total current assets available to pay US$3,310,361 in total current liabilities coming due within the next 12 months. Full-text copies of the Company's first quarter financial statements for the three months ended March 31, 2006, are available for free at http://ResearchArchives.com/t/s?a10 Going Concern Doubt Moore Stephens, P.C., in New York, raised substantial doubt about Transax International Limited's ability to continue as a going concern after auditing the Company's consolidated financial statements for the year ended Dec. 31, 2005. The auditor pointed to the Company's losses, and working capital and stockholders' deficiencies. Based in Miami, Florida, Transax International Limited (OTCBB: TNSX) -- http://www.transax.com/-- provides hospitals, physicians and health insurance companies with innovative health information management systems to manage coding, compliance, abstracting and record management's processes. The Company's subsidiaries are: TDS Telecommunication Data Systems LTDA provides those services in Brazil; Transax Australia Pty Ltd. provides those services in Australia; and Medlink Technologies, Inc., initiates research and development. VARIG: Brazilian Court Publishes Tender for June 5 Sale ------------------------------------------------------- A Brazilian court officially published the tender for the auction of operating assets in embattled airline Viacao Aerea Riograndense or Varig on Tuesday. The tender confirmed that the sale will take place in Rio de Janeiro on June 5. Potential purchasers will not have to pre-qualify for the sale, but the interested parties must have headquarters in Brazil. Rio de Janeiro Judge Luiz Roberto Ayoub decided to bring forward the sale of Varig from early July after suppliers threatened to stop delivering to Varig because of non-payment and leasing companies abroad were pressuring a New York court to allow them to repossess their planes currently in Varig's service. The early auction was announced Monday, just two days before Judge Robert Drain of the U.S. Bankruptcy Court in Manhattan rules on whether leasing companies can seize their planes from Varig. Varig has been in financial trouble for several years and the auction proceeds will be used to pay down mounting debts that total about 8 billion Brazilian reals (US$3.5 billion). The company sought bankruptcy protection in July 2005. Last week, Brazil's airport authority Infraero threatened to sue the company for not passing on airport taxes, while Varig had a Boeing 777 seized by a leasing company at JFK International Airport in New York because of nonpayment. The airline also has had problems paying for fuel. Under the terms of the auction, Varig's domestic and international operating assets will be put up for sale for a minimum price of US$860 million. The commercial wing of the company won't be sold and will be left with the company's debts. Alternatively, the company's domestic assets could be sold alone for a minimum price of US$700 million. However, if there is no bid within 10% of either of the minimum prices, a second round of bidding will be started with a reduced minimum price of US$125 million. Earlier this month, Varig administrators said there were 17 interested bidders for the auction. Ayoub also said that if Varig manages to obtain credit then the auction could be pushed back to give bidders more time. The eventual buyer will have three days to deposit US$75 million with the airline. Meanwhile, the Rio de Janeiro court and the National Civil Aviation Authority, or Anac, will analyze the deal. If the purchase process takes more than 30 days, the buyer must deposit another US$50 million to help with operating expenses. Anac indicated that the new owner of Varig would not automatically take over the slots that Varig recently stopped operating on because of a cash crunch. 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. =========================== C A Y M A N I S L A N D S =========================== AQUITANIA FUND: Sets June 15 as Last Meeting of Shareholders ------------------------------------------------------------ Shareholders of Aquitania Fund Ltd. will gather on June 15, 2006, for a final meeting at: Ansbacher House 2nd Floor, #20 Genesis Close P.O. Box 31910 SMB, George Town Grand Cayman, Cayman Islands Accounts on the company's liquidation process will be presented during the meeting. As reported in the Troubled Company Reporter on May 24, 2006, Aquitania Fund started liquidating assets on Apr. 11, 2006. Verification of creditors' claims against GPF Almatis Holdings will end tomorrow, June 1, 2006. The company's liquidator can be reached at: Corporate Services Ltd. Attention: Angela Nightingale Ansbacher House P.O. Box 31910 SMB Grand Cayman, Cayman Islands Tel: (345) 946-7665 Fax: (345) 946-7666 AQUITANIA MASTER: Final Shareholders Meeting Set for June 15 ------------------------------------------------------------ The shareholders of Aquitania Master Fund Ltd. will meet for a final meeting on June 15, 2006, at: Ansbacher House 2nd Floor, #20 Genesis Close P.O. Box 31910 SMB, George Town Grand Cayman, Cayman Islands Accounts on the company's liquidation process will be presented during the meeting. As reported in the Troubled Company Reporter on May 21, 2006, the company started liquidating assets on April 11, 2006. Creditors are required to submit proofs of claim to the company's liquidator until tomorrow, June 1, 1006. The liquidator can be reached at: Corporate Services Ltd. Attention: Angela Nightingale Ansbacher House P.O. Box 1984, George Town Grand Cayman, Cayman Islands Tel: (345) 946-7665 Fax: (345) 946-7666 BULL INVESTMENT: Sets Final Shareholders Meeting on June 3 ---------------------------------------------------------- Shareholders of Bull Investment Holdings Limited will gather for a final meeting on June 3, 2006, at 10:00 a.m. at the offices of: HSBC Financial Services (Cayman) Limited P.O. Box 1109, George Town Grand Cayman, Cayman Islands Accounts on the company's liquidation process will be presented during the meeting. As reported in the Troubled Company Reporter on May 29, 2006, Bull Investment started liquidating assets on April 13, 2006. Creditors of the company were required to submit particulars of their debts or claims on or before June 3, 2006, to Cereita Lawrence and Scott Aitken, the company's appointed liquidators. The liquidators can be reached at: Cereita Lawrence Scott Aitken P.O. Box 1109, George Town Grand Cayman, Cayman Islands Tel: (345) 949-7755 Fax: (345) 949-7634 CITY CLUBS: Creditors Must File Proofs of Claim by June 16 ---------------------------------------------------------- Creditors of City Clubs International 1, LLC, which is being voluntarily wound up, are required to present proofs of claim by June 16, 2006, to Linburgh Martin and Jeff Arkley, the company's liquidators. Creditors are required to present proofs of claim personally or through their solicitors at the time and place that the liquidator specified. Failure to present claims would mean exclusion from the benefit of any distribution that the company will make. City Clubs began liquidating assets on April 4, 2006. The liquidators can be reached at: Linburgh Martin Jeff Arkley Attention: Neil Gray Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034, George Town Grand Cayman, Cayman Islands Tel: (345) 949-8455 Fax: (345) 949-8499 FIVE MILE: Schedules Last Shareholders Meeting on June 15 --------------------------------------------------------- Shareholders of Five Mile Capital Housatonic Fund Ltd. will gather on June 15, 2006, for a final general meeting at the offices of: Ansbacher House, 2nd Floor, #20 Genesis Close P.O. Box 31910 SMB, George Town Grand Cayman, Cayman Islands Accounts on the company's liquidation process will be presented during the meeting. As reported in the Troubled Company Reporter on May 24, 2006, the company started liquidating assets on April 11, 2006. Verification of creditors' claims against Five Mile Capital will end tomorrow, June 1, 2006. The company's liquidator can be reached at: Corporate Services Ltd. Attention: Angela Nightingale Ansbacher House P.O. Box 31910 SMB Grand Cayman, Cayman Islands Tel: (345) 946-7665 Fax: (345) 946-7666 FIVE MILE (OFFSHORE): Final Shareholders Meeting Set for June 15 ---------------------------------------------------------------- Five Mile Capital Housatonic Fund Offshore Ltd. will hold a final meeting of the shareholders on June 15, 2006, at: Ansbacher House 2nd Floor, #20 Genesis Close P.O. Box 31910 SMB, George Town Grand Cayman, Cayman Islands Accounts on the company's liquidation process will be presented during the meeting. As reported in the Troubled Company Reporter on May 24, 2006, the company started liquidating assets on April 5, 2006. Creditors of the company were required to submit particulars of their debts or claims until tomorrow, June 1, 2006, to the company's appointed liquidator. The liquidator can be reached at: Corporate Services Ltd. Attention: Angela Nightingale Ansbacher House P.O. Box 31910 SMB Grand Cayman, Cayman Islands Tel: (345) 946-7665 Fax: (345) 946-7666 HENRY JOHNSON: Proofs of Claim Filing Ends by June 19 ----------------------------------------------------- Creditors of Henry Johnson Marine Limited are required to submit particulars of their debts or claims by June 19, 2006, to George E. Norcross, III, the company's appointed liquidator. Failure to do so will exclude them from receiving the benefit of any distribution that the company will make. The company started liquidating assets on March 29, 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. The liquidator can be reached at: George E. Norcross, III c/o Campbells 4th Floor, Scotiabank Building P.O. Box 884, George Town Grand Cayman, Cayman Islands Ref: SG/11303 MULTI-STRATEGY: Filing of Proofs of Claim Ends by June 20 --------------------------------------------------------- Creditors of Multi-Strategy PPF Ltd. are required to prove their claims to Q&H Nominees Ltd., the company's liquidator, by June 20, 2006, or be excluded from receiving any distribution or payment that the company will make. Creditors are required to send by June 20 their full names, addresses, descriptions and the full particulars of their debts or claims, and the names and addresses of their lawyers, if any, to the liquidators. The company started liquidating assets on Dec. 16, 2005. The liquidator can be reached at: Q&H Nominees Ltd. Attention: Greg Link P.O. Box 1348, George Town Grand Cayman, Cayman Islands Tel: (345) 949-4123 Fax: (345) 949-4647 THEOREMA E&M: Sets June 16 Deadline for Proofs of Claim Filing -------------------------------------------------------------- Creditors of Theorema E&M Fund, Ltd., which is being voluntarily wound up, are required by June 16, 2006, to present proofs of claim to Giovanni Govi and Emanuele Antonaci, the company's liquidators. The company started liquidating assets on April 24, 2006. The liquidators can be reached at: Giovanni Govi Emanuele Antonaci Attention: Rob Gardner P.O. Box 265, George Town Grand Cayman, Cayman Islands Tel: (345) 914-6332 Fax: (345) 814-8332 YL CAPITAL: Creditors Have Until June 19 to File Proofs of Claim ---------------------------------------------------------------- YL Capital Corporation's creditors are required to submit particulars of their debts or claims by June 19, 2006, to the company's appointed liquidators, Janet Crawshaw and Jamal Young. Failure to do so will exclude them from receiving the benefit of any distribution that the company will make. YL Capital started liquidating assets on April 24, 2006. The liquidators can be reached at: Janet Crawshaw Jamal Young Attention: Marguerite Britton P.O. Box 1109, George Town Grand Cayman, Cayman Islands Tel: (345) 949-7755 Fax: (345) 949-7634 =============== C O L O M B I A =============== * COLOMBIA: Presents Vision 2019 Project for Mining Development --------------------------------------------------------------- The government of Colombia presented a project called Vision 2019, which is set at the development of the mining sector using three strategies, Beatriz Duque -- the mining director of Minminas, the country's mines and energy ministry -- informed Business News Americas. Ms. Duque presented to BNamericas these strategies: -- the first strategy: promote Colombia as a mining country and encourage aggressive investments. The 2019 Vision proposes covering 75% of land with basic geological exploration at a scale of 1:100,000. -- the second strategy: improve competition and productivity policies, focusing more on the social sector of mining. According to Ms. Duque, the countries in the Latin American region have improve technological conditions and improve environmental upkeep. -- the third strategy: implementation of an administrative policy through government management of mineral resources in a bid to improve the efficiency of mining authorities. BNamericas relates that Ms. Duque also said the government selected Ingeominas, the geology and mines institute, as a regulating authority in the Colombian mining sector. The government strengthened six departmental authorities for them to give the mining minister a faster response regarding contracting and fiscal responsibility, Ms. Duque was quoted by BNamericas as saying. These departments include: -- Antioquia, -- Bolivar, -- Boyaca, -- Caldas, -- Cesar, and -- Norte de Santander. According to BNamericas, these departments have offices similar to that of Ingeominas. They manage up to 40% of Colombia's mining titles while the remaining 60% is handled by Ingeominas. Ms. Duque also informed BNamericas of the country's Internet- based mining registry. She said, "We have been developing a more solid and complex system with information about Ingeominas and the departmental authorities and we're expecting it to be ready by December 2006." * * * 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 O S T A R I C A =================== * COSTA RICA: Will Launch Free Trade Negotiations with Taiwan ------------------------------------------------------------- Costa Rica will begin negotiations on a free trade agreement with Taiwan in the second half of 2006, officials from Taiwan's Ministry of Economic Affairs aka MOEA told Asia Pulse Businesswire. Asia Pulse states that Taiwan has been actively seeking for FTAs with its diplomatic allies after the United States-Central America Free Trade Agreement aka CAFTA was implemented this year. The country is aiming to help Taiwanese manufacturers tap markets in North, Central and South America by making the most of the FTA mechanism, the officials told Asia Pulse. Taiwan has entered into FTAs with Panama and Guatemala. The FTA with Panama was implemented on Jan. 1, 2004. The Guatemala FTA, on the other hand, is pending approval by the two nations' legislatures but is expected to take effect on Jan. 1, 2007, Asia Pulse recalls. * * * Costa Rica is rated by Moody's: -- CC LT Foreign Bank Depst Ba2 -- CC LT Foreign Curr Debt Ba1 -- CC ST Foreign Bank Depst NP -- CC ST Foreign Curr Debt NP -- Foreign Currency LT Debt Ba1 -- Local Currency LT Debt Ba1 Fitch assigned these ratings to Costa Rica: -- Foreign currency long-term debt, BB -- Local currency long-term debt, BB -- Foreign currency short-term debt, B Costa Rica carries these ratings from Standard & Poor's: -- Foreign Currency LT Debt BB -- Local Currency LT Debt BB+ -- Foreign Currency ST Debt B -- Local Currency ST Debt B =================================== D O M I N I C A N R E P U B L I C =================================== FALCONBRIDGE: Chief Officer Favors Inco Bid Over Xstrata's ---------------------------------------------------------- "It's my duty to get the best offer, the best price, the best deal I possibly can for all of the shareholders," Falconbridge Ltd.'s chief executive officer Derek Pannell said in an interview with Tara Perkins at Toronto Star. "Right now it looks to me - at least until the board has added the figures - it looks like it's probably Inco." Falconbridge is at the centre of the most expensive mining takeover battle, Ms. Perkins says. Xstrata PLC has offered to purchase the company for CDN$20 billion in cash while Inco's offer is in cash and Inco common shares. Inco's offer will become higher if its stock will have a higher value. As of May 23, Xstrata's offer appears highers. Inco's shares were priced at US$1.50, making the company's bid lower than that of Xstrata, Ms. Perkins says. Mr. Pannell told Ms. Perkins that Falconbridge's board will consider the two bids this week. A recommendation will be made to shareholders on June 2. Inco first made its offer in October 2005, but regulatory hurdles held up the sale. Some industry players protested at the proposed Falconbridge- Inco combination, fearing the merged company would have too much control of the nickel alloy market. Among the protestors are Xstrata, Glencore International AG and Eramet. About Xstrata Xstrata plc -- http://www.xstrata.com/-- is a major global diversified mining group, listed on the London and Swiss stock exchanges. The Group is and has approximately 24,000 employees worldwide, including contractors. Xstrata maintains a meaningful position in six major international commodity markets: copper, coking coal, thermal coal, ferrochrome, vanadium and zinc, with additional exposures to gold, lead and silver. The Group's operations and projects span four continents and nine countries: Australia, South Africa, Spain, Germany, Argentina, Peru, Colombia, the U.K. and Canada. About Inco Inco Limited -- http://www.inco.com/-- is the world's #2 producer of nickel, which is used primarily for manufacturing stainless steel and batteries. Inco also mines and processes copper, gold, cobalt, and platinum group metals. It makes nickel battery materials and nickel foams, flakes, and powders for use in catalysts, electronics, and paints. Sulphuric acid and liquid sulphur dioxide are produced as byproducts. The company's primary mining and processing operations are in Canada, Indonesia, and the UK. About Falconbridge Headquartered in Toronto, Ontario, Falconbridge Limited (TSX:FAL.LV)(NYSE: FAL) -- http://www.falconbridge.com/-- is a leading copper and nickel company with investments in fully integrated zinc and aluminum assets. Its primary focus is the identification and development of world-class copper and nickel orebodies. It employs 14,500 people at its operations and offices in 18 countries. The Company owns nickel mines in Canada and the Dominican Republic and operates a refinery and sulfuric acid plant in Norway. It is also a major producer of copper (38% of sales) through its Kidd mine in Canada and its stake in Chile's Collahuasi mine and Lomas Bayas mine. Its other products include cobalt, platinum group metals, and zinc. * * * Falconbridge's CDN$150 million 5% convertible and callable bonds due April 30, 2007, carries Standard & Poor's BB+ rating. * DOMINICAN REPUBLIC: Cement Producers Seek Price Increase ---------------------------------------------------------- Producers of cement in the Dominican Republic were seeking for an increase in the local market price before the Industry and Commerce authorities in a meeting scheduled on May 29, Dominican Today reports. According to Dominican Today, the producers intend to set the price of cement sack between DOP140 to DOP150, from the recent DOP70 each, to recover accumulated loss. Dominican Today recalls that a manufacturer had initiated a price war, taking down prices below production costs. This strategy, however, suddenly stopped and now prices have risen over 75%. Dominican Today relates that the producers had presented to the government earlier a report demonstrating that the local price of cement was 50% less than the average price of the region. The producers alleged that it is unsustainable for producing companies, and that it affects income through the Processed Goods and Services ITBIS tax. The price adjustment was implemented last week and had risen complaints from the general public, Dominican Today reports. * * * The Troubled Company Reporter - Latin America reported on May 9, 2006, that Fitch Ratings upgraded these debt and issuer Default Ratings of the Dominican Republic: -- Long-term foreign currency Issuer Default Rating to B from B-; -- Country ceiling upgraded to B+ from B-; -- Foreign currency bonds due 2006 to B-/RR4 from CCC+/RR4; -- Foreign currency Brady bonds due 2009 to B/RR4 from B-/RR4; -- Foreign currency bonds due 2011 to B/RR4 from B-/RR4; -- Foreign currency bonds due 2013 to B-/RR4 from CCC+/RR4; -- Foreign currency bonds due 2018 to B/RR4 from B-/RR4; and -- Foreign currency collateralized Brady bonds due 2024 to B+/RR3 from B/RR3. Fitch also affirmed these ratings: -- Long-term local currency Issuer Default Rating: B; and -- Short-term Issuer Default Rating: B. Additionally, Fitch assigned a debt and Recovery Rating to this issue: -- Foreign currency bonds due 2027: B/RR4. Fitch said the rating outlook for the long-term foreign and local currency IDRs is Stable. * DOMINICAN REPUBLIC: Posts 12.3% Boost in Tourism Sector --------------------------------------------------------- The Dominican Republic's tourism sector incurred a 12.3% boost in tourist visit in the first quarter 2006, Dominican Today reports. According to a report by the Central Bank, about 1,310,015 foreign non-resident visitors came through the country's airports from January to April this year, compared to the 1,166,055 recorded in the same period last year. Dominican Today relates that tourists arrived in these airports -- arranged from the greatest number of arrivals: -- Punta Cana terminal (50.5%), -- Gregorio Luperon, -- Puerto Plata, -- Las Americas, -- La Romana, -- Cibao, -- Santiago, and -- La Isabela. The number of tourists has been growing constantly every month of the quarter, Dominican Today reports. * * * The Troubled Company Reporter - Latin America reported on May 9, 2006, that Fitch Ratings upgraded these debt and issuer Default Ratings of the Dominican Republic: -- Long-term foreign currency Issuer Default Rating to B from B-; -- Country ceiling upgraded to B+ from B-; -- Foreign currency bonds due 2006 to B-/RR4 from CCC+/RR4; -- Foreign currency Brady bonds due 2009 to B/RR4 from B-/RR4; -- Foreign currency bonds due 2011 to B/RR4 from B-/RR4; -- Foreign currency bonds due 2013 to B-/RR4 from CCC+/RR4; -- Foreign currency bonds due 2018 to B/RR4 from B-/RR4; and -- Foreign currency collateralized Brady bonds due 2024 to B+/RR3 from B/RR3. Fitch also affirmed these ratings: -- Long-term local currency Issuer Default Rating: B; and -- Short-term Issuer Default Rating: B. Additionally, Fitch assigned a debt and Recovery Rating to this issue: -- Foreign currency bonds due 2027: B/RR4. Fitch said the rating outlook for the long-term foreign and local currency IDRs is Stable. * DOMINICAN REPUBLIC: Will Launch Free Trade Talks with Taiwan -------------------------------------------------------------- The Dominican Republic will start negotiating with Taiwan in the second half of 2006 for a free trade agreement, officials from Taiwan's Ministry of Economic Affairs aka MOEA informed Asia Pulse Businesswire. Asia Pulse states that Taiwan has been actively seeking for FTAs with its diplomatic allies after the United States-Central America Free Trade Agreement aka CAFTA was implemented this year. The country is aiming to help Taiwanese manufacturers tap markets in North, Central and South America by making the most of the FTA mechanism, the officials told Asia Pulse. Taiwan has entered into FTAs with Panama and Guatemala. The FTA with Panama was implemented on Jan. 1, 2004. The Guatemala FTA, on the other hand, is pending approval by the two nations' legislatures but is expected to take effect on Jan. 1, 2007, Asia Pulse recalls. * * * The Troubled Company Reporter - Latin America reported on May 9, 2006, that Fitch Ratings upgraded these debt and issuer Default Ratings of the Dominican Republic: -- Long-term foreign currency Issuer Default Rating to B from B-; -- Country ceiling upgraded to B+ from B-; -- Foreign currency bonds due 2006 to B-/RR4 from CCC+/RR4; -- Foreign currency Brady bonds due 2009 to B/RR4 from B-/RR4; -- Foreign currency bonds due 2011 to B/RR4 from B-/RR4; -- Foreign currency bonds due 2013 to B-/RR4 from CCC+/RR4; -- Foreign currency bonds due 2018 to B/RR4 from B-/RR4; and -- Foreign currency collateralized Brady bonds due 2024 to B+/RR3 from B/RR3. Fitch also affirmed these ratings: -- Long-term local currency Issuer Default Rating: B; and -- Short-term Issuer Default Rating: B. Additionally, Fitch assigned a debt and Recovery Rating to this issue: -- Foreign currency bonds due 2027: B/RR4. Fitch said the rating outlook for the long-term foreign and local currency IDRs is Stable. ============= E C U A D O R ============= * ECUADOR: Refuses to Join Venezuela's Energy Alliance Versus US ---------------------------------------------------------------- The government of Ecuador has declined an invitation by Venezuela's President Hugo Chavez to join in an energy alliance that will challenge the economic influence of Washington in the Latin American region, Enrique Proano, the communications secretary of Ecuador, told the Associated Press. The initiative is called Petroamerica, in which Venezuela sells fuel to other nations on preferential terms to compete with the US' Free Trade Area of the Americas, AP relates. Mr. Proano informed Channel 8 that Ecuador was interested in the accords President Chavez is scheduled to sign that will: -- provide technical advice to Ecuador's state-owned oil firm Petroleos del Ecuador aka Petroecuador, and -- refine Ecuadorean crude oil in Venezuela at a discount. Cooperation with Venezuela would not signify in any way an alliance with President Chavez nor a distancing from the United States, Mr. Proano was quoted by AP as saying. The US had halted free trade negotiations with Ecuador after the US firm Occidental Petroleum Corp.'s contract in the Andean nation was revoked, AP recalls. * * * Fitch Ratings assigned these ratings on Ecuador: Rating Rating Date ------ ----------- Country Ceiling B- Aug. 29, 2005 Long Term IDR B- Dec. 14, 2005 Short Term IDR B Dec. 14, 2005 * ECUADOR: State Telecommunications Firm Will Expand Network ------------------------------------------------------------ Andinatel, the state-run telecommunications company of Ecuador, will increase the capacity of its fiber optic network linking Quito and Guayaquil, according to local newspaper El Comercio. Business News Americas relates that the network was implemented with equipment the Germany's Siemens had provided. It offers data, Internet and voice traffic up to 2.5 gigabit per second (Gbps). The speed, however, is not high sufficient to cover the current needs of customers. Although the current equipment is suitable for expansion and interconnection with next generation Dense Wave Multiplex aka DWM equipment, it cannot be upgraded to DWM, Siemens told BNamericas. Andinatel is yet studying its contract with the German firm since both entities have not arrived at an agreement regarding the expansion, BNamericas reports. * * * Fitch Ratings assigned these ratings on Ecuador: Rating Rating Date ------ ----------- Country Ceiling B- Aug. 29, 2005 Long Term IDR B- Dec. 14, 2005 Short Term IDR B Dec. 14, 2005 ===================== E L S A L V A D O R ===================== MILLICOM INT'L: In Due Diligence With Potential Share Buyer ----------------------------------------------------------- Millicom International Cellular S.A., a global telecommunications company, is in advanced discussions and due diligence with a potential purchaser of the entire share capital of the company. The company refuses to name the potential buyer. No agreement has been reached at this time and there is no certainty as to whether these discussions will lead to any agreement. Further announcements will be made as appropriate. Speculations on the purchaser have been strong since the company announced in January that it was launching a strategic review after receiving unsolicited offers, Reuters reports. As reported in the Troubled Company reporter on May 30, 2006, China Mobile won the company's auction of its Latin American operations, though the deal is yet to be approved by authorities. Millicom International Cellular S.A. -- http://www.millicom.com/ -- is a global telecommunications investor with cellular operations in Asia, Latin America and Africa. It currently has cellular operations and licenses in 16 countries. The Group's cellular operations have a combined population under license of approximately 391 million people. The Central America Cluster comprises Millicom's operations in El Salvador, Guatemala and Honduras. The population under license in Central America as at December 2005 is 26.4 million. The South America Cluster comprises Millicom's operations in Bolivia and Paraguay. The population under license in South America as at December 2005 is 15.2 million. * * * Millicom International's 10% senior notes due 2013 carry Moody's B3 rating and Standard & Poor's B- rating. * EL SALVADOR: Will Hold Talks on Free Trade with Taiwan -------------------------------------------------------- El Salvador will hold free trade agreement aka FTA negotiations with Taiwan on May 29-31 in Central America, officials from Taiwan's Ministry of Economic Affairs aka MOEA informed Asia Pulse Businesswire. According to Asia Pulse, the officials said that Chen Ruey-long, Taiwan's vice minister of economic affairs, will be traveling to El Salvador on Saturday for the FTA talks. Asia Pulse states that Taiwan has been actively seeking for FTAs with its diplomatic allies after the United States-Central America Free Trade Agreement aka CAFTA was implemented this year. The country is aiming to help Taiwanese manufacturers tap markets in North, Central and South America by making the most of the FTA mechanism, the officials told Asia Pulse. Taiwan has entered into FTAs with Panama and Guatemala. The FTA with Panama was implemented on Jan. 1, 2004. The Guatemala FTA, on the other hand, is pending approval by the two nations' legislatures but is expected to take effect on Jan. 1, 2007, Asia Pulse recalls. * * * Fitch Ratings assigned these ratings on El Salvador: Rating Rating Date ------ ----------- Country Ceiling BB+ Jun. 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 ================= G U A T E M A L A ================= BANCO INDUSTRIAL: Posts GTQ86.5 Mil. First Quarter 2006 Earnings ---------------------------------------------------------------- Banco Industrial S.A., a bank based in Guatemala, reported GTQ86.5 million earnings in the first quarter 2006, Business News Americas reports. The amount was 14.2% higher than the GTQ75.8 million reported in the same quarter last year, according to figures from the financial system regulator Superintendencia de Bancos aka SIB. BNamericas relates that net interest income rose 6.6% to GTQ138 million. Net fee revenues amounted to GTQ15.6 million -- a 16% boost. According to BNamericas, the assets of Banco Industrial reached GTQ19.4 billion -- about 24.4% higher. Performing loans increased 24.4% to GTQ8.3 billion. Deposits, on the other hand, rose 12.3% to GTQ12.6 billion. Banco Industrial ranked first in the local banking system with 21% asset market share, BNamericas reports. * * * On March 20, 2006, Moody's Ratings Services affirmed Banco Industrial S.A.'s 'D' bank financial strength rating. Moody's also affirmed Industrial's 'Baa2' and Prime-3 long and short term global local currency deposit ratings, respectively, and its 'Ba3' and Not Prime long and short term foreign currency deposit ratings. All the ratings have stable outlooks. =============== H O N D U R A S =============== * HONDURAS: Holding Talks on Free Trade with Taiwan --------------------------------------------------- Honduras will hold free trade agreement aka FTA negotiations with Taiwan on May 29-31 in Central America, officials from Taiwan's Ministry of Economic Affairs aka MOEA informed Asia Pulse Businesswire. Asia Pulse states that Taiwan has been actively seeking for FTAs with its diplomatic allies after the United States-Central America Free Trade Agreement aka CAFTA was implemented this year. The country is aiming to help Taiwanese manufacturers tap markets in North, Central and South America by making the most of the FTA mechanism, the officials told Asia Pulse. Taiwan has entered into FTAs with Panama and Guatemala. The FTA with Panama was implemented on Jan. 1, 2004. The Guatemala FTA, on the other hand, is pending approval by the two nations' legislatures but is expected to take effect on Jan. 1, 2007, Asia Pulse recalls. * * * 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 ============= MIRANT CORP: Cadwalader Wickersham Asks for US$3 Million Bonus -------------------------------------------------------------- Cadwalader, Wickersham & Taft LLP and Cox Smith Matthews Incorporated, attorneys for the Official Committee of Unsecured Creditors of Mirant Americas Generation LLC, ask Judge Michael D. Lynn of the U.S. Bankruptcy Court for the Northern District of Texas to approve a US$3,000,000 fee enhancement for services they performed for the MAGi Committee from July 25, 2003, through January 3, 2006. Gregory M. Petrick, Esq., a partner at Cadwalader, Wickersham & Taft LLP, relates that the US$3,000,000 fee enhancement represents a 22% premium to fees charged by each firm. If awarded, the fee enhancement will be allocated pro rata between the two firms based on fees billed. With Cadwalader's and Cox Smith's efforts, the MAGi Committee fulfilled its mandate for a full recovery, Mr. Petrick asserts. Under the confirmed Plan of Reorganization, effective as of January 3, 2006, MAGi creditors holding approximately US$1,157,000,000 in claims have been paid, through a combination of cash and new equity, the full par value of their claims, plus all accrued interest due and owing, totaling approximately US$210,000,000, through the Effective Date. Mr. Petrick adds that MAGi creditors holding US$1,732,000,000 in claims have: * had their claims reinstated in accordance with its original terms, with enhanced covenant protections; and * been paid in cash all interest due and owing on their claims, totaling US$416,000,000, through the Effective Date. According to Mr. Petrick, Cadwalader and Cox Smith worked cooperatively and efficiently without duplication of effort in delivering to the MAGi Committee strategic and substantive legal issues relating to: * intercompany claims, * substantive consolidation, * stand-alone plan of reorganization, * reinstatement, * postpetition interest, and * de-leveraging Mirant. Cadwalader and Cox Smith also performed actions to protect the MAGi creditors, relating to: * the US$500,000,000 DIP financing; * issues in connection with Potomac Electric Power Company; * MIRMA leases; * hedging practices; * commodities trading; * the Debtors' net operating losses tax attributes; * a screening wall order; and * claims against Mirant entities arising from the California energy crisis. For these reasons, Mr. Petrick asserts that payment of a fee enhancement to Cadwalader and Cox Smith is justified. New Mirant Objects The New Mirant Entities believe that no professional, including the MAGi Committee' attorneys should be rewarded with a success fee, Craig H. Averch, Esq., at White & Case LLP, in Miami, Florida, tells the Court. Providing quality services does not qualify a professional for a fee enhancement. Rather, fee enhancements should be granted only in "rare and exceptional" circumstances. Mr. Averch argues that the award of fee enhancement is inappropriate where the success of the Debtors' Chapter 11 cases was the result of a combination of many factors. In addition, the MAGi Committee's lawyers were appropriately compensated for their services through the lodestar method. The grant of any fee enhancement should take into account the fact that Cadwalader and Cox Smith have received an hourly rate that reflects the firms' expertise and experience, Mr. Averch points out. The MAGi Committee's lawyers, however, failed to demonstrate that their representation of the Committee was "superior" in light of their hourly rate. Although Cadwalader and Cox Smith's services were of a high quality, they were not superior to that reasonably expected from a law firm of their skill and experience, to justify a request for an enhancement, Mr. Averch contends. New Mirant notes that, as the party responsible for payment of the fee enhancement, its lack of consent should be weighed heavily when determining whether the award of a fee enhancement to MAGi Committee's counsels is appropriate. Accordingly, New Mirant asks the Court to deny Cadwalader and Cox Smith's fee enhancement request. 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 US$20,574,000,000 in assets and US$11,401,000,000 in debts. (Mirant Bankruptcy News, Issue No. 96; 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. MIRANT CORP: MC Asset Recovery Wants BofA to Produce Documents -------------------------------------------------------------- Jeff P. Prostok, Esq., at Forshey & Prostok LLP, in Fort Worth, Texas, relates that prior to confirmation of the plan of reorganization filed by Mirant Corporation and its debtor- affiliates, the Debtors undertook an investigation of potential causes of action against, among others, Bank of America. Mirant's investigation included potential claims against Bank of America either through affirmative acts or omissions for avoidance, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, negligence, breach of professional duties, and breach of statutory duties. The Avoidance Action is based on a Credit Agreement dated as of May 22, 2000, entered into by Mirant's predecessor-in-interest, Southern Energy, Inc., with Bank of America, as agent. Under the Credit Agreement, Bank of America has a commitment, as an initial lender, totaling US$550,000,000 -- the 2000 Dividend Facility. On May 26, 2000, Mirant transferred US$450,000,000 of the US$538,000,000 initial borrowing to The Southern Company from the 2000 Dividend Facility. On October 2, 2000, Mirant repaid US$450,000,000 to Bank of America from the proceeds of Mirant's initial public offering. On July 13, 2005, Bank of America entered into a Stipulated Tolling Agreement with Mirant that tolled the statute of limitations while Mirant continued its investigation of potential claims against Bank of America. The Original Stipulation was set to expire on January 13, 2006, but Bank of America and MC Asset Recovery, LLC, entered into an Amended Stipulation extending the toll to July 13, 2006. In connection with the investigation, MCAR asks the Court to direct Ban of America, N.A., and Banc of America Securities LLC, to produce for inspection and copying, certain documents not later than May 22, 2006, at the offices of Forshey & Prostok, L.L.P. Mr. Prostok asserts that MCAR's request for examination of Bank of America is within the scope of Rule 2004 of the Federal Rules of Bankruptcy Procedure and Local Bankruptcy Rule 2004. Bank of America Responds According to Toby L. Gerber, Esq., at Fulbright & Jaworski L.L.P., in Dallas Texas, MCAR's requests for production of documents by May 22, 2006, are in direct conflict with the Amended Tolling Agreement not to seek any legal or equitable relief against Bank of America prior to July 1, 2006. For this reason, Bank of America asks the Court to deny MCAR's request as improper. Additionally, MCAR's Requests contain overly broad requests for production that do not relate to "the acts, conduct, or property or to the liabilities and financial condition of the debtor" or the "administration of the debtor's estate," Mr. Gerber points out. Specifically, MCAR asks for documents that pertain to transactions between Bank of America and Southern Company, neither of which are debtors. Mr. Gerber asserts that the Court lacks jurisdiction to require Bank of America to produce documents that fall outside the scope of Rule 2004. Mr. Gerber notes that the Debtors have adversary proceedings pending against other parties related to the spin-off of Mirant from the Southern Company. To the extent that the discovery requests will benefit MCAR or the Debtors in other litigation or contested matters, Bank of America asks the Court to deny MCAR's motion. In the event the Court grants MCAR's Motion, Bank of America, in the alternative, asks the Court: (i) to limit the scope of the 2004 Requests; and (ii) for additional time to produce all responsive, relevant and non-privileged documents at a mutually convenient date, time and place after July 1, 2006. 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 US$20,574,000,000 in assets and US$11,401,000,000 in debts. (Mirant Bankruptcy News, Issue No. 97; 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. =========== M E X I C O =========== AMERICAN AXLE: Moody's Lowers Family & Notes Ratings to Ba3 ----------------------------------------------------------- Substitute first sentence of first paragraph with the following: "Moody's Investors Service downgraded American Axle & Manufacturing Holding Inc.'s Corporate Family and Senior Unsecured Convertible note ratings and the Senior Unsecured rating of American Axle & Manufacturing, Inc. to Ba3 from Ba2." Revised release follows. Moody's Investors Service downgraded American Axle & Manufacturing Holding Inc.'s Corporate Family and Senior Unsecured Convertible note ratings and the Senior Unsecured rating of American Axle & Manufacturing, Inc. to Ba3 from Ba2. At the same time, the Speculative Grade Liquidity rating was lowered to SGL-3, representing adequate liquidity over the next twelve months. Actions on the long-term ratings flow from reduced expectations of the company's performance over the intermediate term and resultant deterioration in key financial metrics. Moreover, potential for some portion of the company's convertible notes to be put back to the company during a sensitive period for the North American automotive industry, could at least temporarily weaken the company's liquidity profile, resulting in the adjustment to the Speculative Grade Liquidity Rating. American Axle faces certain business challenges due to trends in consumer vehicle preferences away from certain light trucks and SUVs where it has enjoyed significant product content, as well as its historic customer concentration with General Motors Corporation. While recent new GM model introductions are helping to mitigate some of these challenges, American Axle's level of free cash flow generation has also been pressured as the company has invested in its expansion strategy which should ultimately diversify its customer base. Over time, the company's order book will improve its geographic, product and customer diversification, but this will emerge slowly. In the interim, American Axle's results will continue to be strongly correlated with light truck & SUV production by its principal customer, GM and more dependent upon the success of GM's new full-sized SUV and pick-up trucks since demand for mid-size product supplied by American Axle has declined. The outlook remains negative. Ratings lowered: American Axle & Manufacturing Holdings, Inc. * Corporate Family, Ba3 from Ba2 * Senior Unsecured Convertible Notes, Ba3 from Ba2 American Axle & Manufacturing, Inc. * Senior Unsecured Notes, Ba3 from Ba2 * Speculative Grade Liquidity, SGL-3 from SGL-2 American Axle & Manufacturing, Inc. guarantees the notes of American Axle & Manufacturing Holdings, Inc. and vice versa. The last rating action was on December 14, 2005 at which time the Corporate Family rating was lowered to Ba2. The Corporate Family rating of Ba3 reflects relatively weaker scores under the Auto Supplier Methodology for elevated leverage, customer & segment concentration and recent deterioration in its debt coverage ratios. Interest coverage could decline further should significant amounts of the parent's low coupon convertible notes be refinanced with higher cost variable rate bank debt. Scores on those metrics are partially mitigated by stronger scores from the company's sound balance sheet, operating efficiencies, and long-term nature of its business awards. Over time, the company's strategy will gradually lead to improved product, customer and geographic diversification. Moody's views the company's progress in expanding its business with non-US automakers favorably. However, ramp up of such new business will only occur over a period of time, and in the intermediate term, exposure to GM will be a significant driver of results. Free cash flow in 2006 is expected to remain modest as the company continues to invest in organic growth to support the launch of new business awards and expand its geographic footprint. The Ba3 rating also emphasizes volatility in the company's cash flows arising from its ongoing customer, geographic and platform concentration. American Axle has a capital intensive business model which requires ongoing capital expenditure related to new product launches and is currently limiting free cash flow for debt reduction. Those traits tend to compound its exposure to challenges faced by its largest customer, GM, and are evidenced by the impact on its recent results from the closure of GM's Oklahoma City assembly plant. Introductions of full-size models based on the new GMT-900 platform have been well received. While the number of vehicle launches based on this platform will increase over 2006 and 2007, demand for mid-size vehicles supported by American Axle production has fallen. The confluence of these trends will produce mixed results over the next few quarters. But, dependency on the ultimate success of the full-size SUV and pick-up truck models will increase until new business awards from non-GM customers can begin to make significant contributions. The change in ratings incorporates this elevated variability from the potential success or failure of any particular platform. The negative outlook reflects the company's continued concentration with GM, whose Corporate Family rating is B3, the mix of vehicles it supports, and uncertainty on what build rates consumer demand may ultimately support for models supported by American Axle production. The rating agency would expect American Axle to remain profitable during the intermediate term. However, during this period it remains vulnerable to potential downside developments arising from any disruptions of U.S. auto production. The SGL-3 Speculative Grade Liquidity rating anticipates the company will maintain an adequate liquidity profile over the next year. American Axle should continue to generate internal funds sufficient to meet operational needs. While the company maintains only minimal balance sheet cash, it has access to a US$600 million unsecured revolving credit facility with a commitment expiration date in April 2010. At the end of March, US$100 million had been borrowed under the facility and approximately US$25 million of letters of credit had been issued under the commitment. This would leave roughly US$475 million available. This availability could be significantly reduced as a result of a ratings trigger under the unsecured convertible notes of the company's parent. Up to US$150 million of notes are currently able to be put back to the issuer under the terms of that trigger. Consequently, external sources of funding could be materially reduced during a period when potential for disruption in North American auto production, particularly at GM, could pose further challenges to the company. Moody's anticipates that the company has the capacity to pursue financing alternatives that would accommodate any put of the convertible notes, and will reassess the SGL rating as new developments occur American Axle & Manufacturing, Inc., headquartered in Detroit, MI, is a world leader in the manufacture, design, engineering and validation of driveline systems and related components and modules, chassis systems, and metal formed products for light truck, SUVs and passenger cars. The company has manufacturing locations in the U.S.A., Mexico, the United Kingdom and Brazil. The company reported revenues of US$3.4 billion in 2005 and has approximately 10,900 employees. GENERAL MOTORS: 20,000+ Workers Take Buy-Out & Retirement Offers ---------------------------------------------------------------- General Motors Corp.'s buy-out offers were accepted by around 20,000 of its employees, published reports say. GM spokesman Dan Flores said the Company would release the results after the offers expire. The offers, which apply to about 113,000 GM workers and 15,000 Delphi Corporation workers, are part of an agreement among GM, Delphi and the United Auto Workers union to accelerate a restructuring plan. This plan calls for 30,000 job cuts and nine plant closings by 2008. Delphi's viability is important to GM. GM gets most of its car parts from Delphi. GM and Delphi workers have until June 23, 2006, to accept offers for buy-outs and early retirement. GM and Delphi offered US$35,000 for workers with at least 30 years to retire and begin a US$36,000-a-year pension. Workers not eligible to retire can opt for a buyout of as much as US$140,000 and give up health care benefits. Under current union contracts, employees get almost their full pay even where there's no work for them to do. Reducing the number of active workers would let GM put idled workers back in operating factories and make it easier for Delphi to close plants. GM would hire temporary workers at some of its plants to compensate for employees taking the buyout and early retirement offers. The number of additional temporary workers will depend on how many employees chose to take buyouts. Temps will be paid US$18 to US$19 an hour without benefits, compared with about US$26 to US$28 an hour plus benefits for permanent workers. About General Motors General Motors Corp. -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader for 75 years. Founded in 1908, GM today employs about 327,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries including Mexico. In 2005, 9.17 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM operates one of the world's leading finance companies, GMAC Financial Services, which offers automotive, residential and commercial financing and insurance. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on May 9, 2006, Moody's Investors Service placed the B3 senior unsecured rating of General Motors Corporation under review for possible downgrade, and affirmed the company's Corporate Family Rating at B3. The rating actions are in response to the company's disclosure that it is pursuing various options to replace or amend its existing US$5.6 billion bank credit facility, and that these options could result in providing its bank lenders with a security interest in certain GM assets. GM anticipates that any credit facility replacement or amendment will be completed by the end of the second quarter or early in the third quarter. TOMMY HILFIGER: Completes Tender Offer of 9% Sr. Bonds Due 2031 --------------------------------------------------------------- Tommy Hilfiger U.S.A., Inc., a wholly owned subsidiary of Tommy Hilfiger Corporation, reported that, in connection with its tender offer and consent solicitation for its outstanding 9% Senior Bonds due 2031, it had received, as of 5:00 p.m., New York City time, on May 25, 2006, tenders and consents from holders of a majority in principal amount of its outstanding 2031 Senior Bonds. As contemplated by the consent solicitation with respect to the 2031 Senior Bonds, the Company has executed a supplemental indenture to the indenture governing the 2031 Senior Bonds that will, once operative, eliminate the principal restrictive covenants, including those relating to limitations on the Company's liens and indebtedness, as well as certain related events of default contained in the indenture under which the 2031 Senior Bonds were issued. Although the supplemental indenture has been executed and has therefore become effective, the modifications and eliminations effected by the amendments will not become operative until the 2031 Senior Bonds are accepted for payment pursuant to the Offer. The Company currently expects to make prompt payment for 2031 Senior Bonds validly tendered prior to the Expiration Time and not properly withdrawn at or prior to 5:00 p.m., New York City time, on April 20, 2006. Assuming a settlement date of May 26, 2006, the total consideration is US$25.25 plus accrued interest of US$0.53 (for a total of US$25.78) for each US$25 principal amount of 2031 Senior Bonds that were validly tendered and accepted for payment pursuant to the Offer. A soliciting dealer fee of US$0.25 per US$25 principal amount of 2031 Senior Bonds that were validly tendered and accepted for payment will be paid by the Company to retail brokers that are entitled to receive this fee. As of the Expiration Time, the Company had received tenders of 2031 Senior Bonds and related consents in these amounts: Percentage of Principal Outstanding Amount Principal Title of Security CUSIP No. Tendered Amount of Series ----------------- --------- -------- ---------------- 9% Senior Bonds 430908202 US$75,738,200 50.49% due 2031 For further information with respect to the tender offers and consent solicitations, holders should contact their broker and/or the Dealer Manager: Citigroup Corporate and Investment Banking Telephone (212) 723-6106 (collect) Toll Free (800) 558-3745 or the Information Agent: Global Bondholder Services Corporation Telephone (212) 430-3774 (collect) Toll Free (866) 389-1500 Tommy Hilfiger U.S.A., Inc., incorporated in Delaware, is a direct wholly owned subsidiary of Tommy Hilfiger Corporation, which is owned by funds advised by Apax Partners. Tommy Hilfiger Corporation, through its subsidiaries, designs, sources and markets men's and women's sportswear, jeanswear and childrenswear. Tommy Hilfiger Corporation's brands include Tommy Hilfiger and Karl Lagerfeld. Through a range of strategic licensing agreements, Tommy Hilfiger Corporation also offers a broad array of related apparel, accessories, footwear, fragrance, and home furnishings. Tommy Hilfiger Corporation's products can be found in leading department and specialty stores throughout the United States, Canada, Europe, Mexico, Central and South America, Japan, Hong Kong, Australia and other countries in the Far East, as well as the Tommy Hilfiger Corporation's own network of outlet and specialty stores in the United States, Canada and Europe. * * * As reported in the Troubled Company Reporter on May 23, 2006, Moody's Investors Service withdrew the Ba2 corporate family rating and unsecured debt ratings of Tommy Hilfiger Corporation and its subsidiaries following the closing of the company's acquisition by affiliates of Apax Partners on March 10, 2006. TV AZTECA: US Securities & Exchange Commission Mulls Settlement --------------------------------------------------------------- TV Azteca, S.A. de C.V. reported that as a result of conversations between the company and the US Securities and Exchange Commission, which were previously disclosed, a potential settlement has been structured. The proposed settlement will be reviewed by the SEC, which anticipates reaching a conclusion as to whether to proceed within 90 days. The proposed settlement, if accepted by the SEC, would not entail economic consequences for TV Azteca. Ricardo B. Salinas and Pedro Padilla would bear the monetary costs resulting from this proposal. As reported in the Troubled Company Reporter on May 10, 2006, TV Azteca disclosed that it was holding talks with the US Securities and Exchange Commission. According to the company, the talks were being held in good faith. As reported in the Troubled Company Reporter on Jan. 6, 2005, SEC filed civil fraud charges against TV Azteca, whose American depository receipts trade on the NYSE, its parent company -- Azteca Holdings -- and three current and former TV Azteca officers and directors, Ricardo Salinas Pliego, Pedro Padilla Longoria, and Luis Echarte Fernandez. The SEC alleged that the defendants engaged in an elaborate scheme to conceal Salinas's role in a series of transactions through which he personally profited by US$109 million. SEC also alleged that Salinas and Padilla sold millions of dollars of TV Azteca stock while Salinas's self-dealing remained undisclosed to the market place. According to Bloomberg, SEC alleged that TV Azteca did not accordingly report a loan that the company made to Nortel Networks Corporation. Chairman Ricardo Salinas and Executive Pedro Padilla of TV Azteca reportedly paid a reduced price of US$107 million in June 2003 in behalf of Unefon's US$325 million debt to Nortel. Unefon was a mobile-telephone unit of TV Azteca at that time. After three months, Unefon bought back the debt at full value from Mr. Salinas and Mr. Saba, Bloomberg relates. TV Azteca is one of the two largest producers of Spanish- language television programming in the world, operating two national television networks in Mexico -- Azteca 13 and Azteca 7 -- through more than 300 owned and operated stations across the country. TV Azteca affiliates include Azteca America Network, a new broadcast television network focused on the rapidly growing US Hispanic market, and Todito, an Internet portal for North American Spanish speakers. * * * Moody's Investor Services rated TV Azteca's senior unsecured debt at B1. =========== P A N A M A =========== KANSAS CITY SOUTHERN: Names New Finance Department Leadership ------------------------------------------------------------- Kansas City Southern appointed Patrick J. Ottensmeyer as executive vice president and chief financial officer. Mr. Ottensmeyer brings over 25 years of financial experience to KCS. Most recently, he served as chief financial officer of Intranasal Therapeutics, Inc. Mr. Ottensmeyer will lead KCS' international finance department. "Pat understands the rail industry and brings a broad set of financial and leadership skills to our company," said KCS chairman, president and chief executive officer Michael R. Haverty. "We look forward to his contributions as we continue to drive costs out of our newly integrated rail network." Susan B. Wollenberg has been promoted to vice president financial planning and administration. Ms. Wollenberg joined KCS in early April 2006 and will serve as interim chief accounting officer. She is a former chief financial officer for E.W. Blanch Holdings, Inc. and has ten years experience with GE Capital Services, where she held various financial roles, including manager strategic investments and second vice president. She also serves on the board of directors of Windhaven Insurance Company. Julio Quintero has been named controller for Kansas City Southern de Mexico and will be based in Monterrey, N.L. While leading the accounting department in Monterrey, he will spend his first six months with the holding company in Kansas City to ensure standardized accounting procedures in both countries. Mr. Quintero joins KCSM from Wyeth Pharmaceuticals, where he served as controller for Mexico and Central America with responsibilities for cost accounting, treasury and Sarbanes Oxley compliance. T. Nicholas Nocita has been promoted from general director financial compliance to assistant vice president international internal audit and financial compliance and retains responsibility for Sarbanes Oxley compliance in both the U.S and Mexico. Mr. Nocita joined the company in 1998. Prior to joining KCS, he spent nine years as a certified public accountant in Kansas City. KCS thanks former executive vice president and chief financial officer Ronald G. Russ and former vice president and comptroller James S. Brook for their service to the company. Headquartered in Kansas City, Missouri, Kansas City Southern (NYSE: KSU) - http://www.kcsi.com/-- is a transportation holding company that has railroad investments in the U.S., Mexico and Panama. Its primary U.S. holding is The Kansas City Southern Railway Company, serving the central and south central U.S. Its international holdings include KCSM, serving northeastern and central Mexico and the port cities of L zaro Cardenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. KCS' North American rail holdings and strategic alliances are primary components of a NAFTA Railway system, linking the commercial and industrial centers of the U.S., Canada and Mexico. * * * As reported in the Troubled Company Reporter on May 22, 2006, Standard & Poor's Ratings Services lowered its preferred stock ratings on Kansas City Southern to 'D' from 'C' and removed the ratings from CreditWatch where they were initially placed on March 23, 2006; ratings were previously lowered on April 4 and May 1 and maintained on CreditWatch with negative implications. Standard & Poor's other ratings on Kansas City Southern, including its 'B' corporate credit rating, remain on CreditWatch with negative implications, where they were initially placed April 4, 2006. Ratings were lowered on April 10 and maintained on CreditWatch. * PANAMA: Approves Activation of Telephony Service Accords ---------------------------------------------------------- The government of Panama told Business News Americas that it has authorized local firms Telecarrier and Cable & Wireless Panama to activate telephony service contracts the two agreed in December 2005. BNamericas reports that the contracts will save the government up to US$14 million. According to BNamericas, Telecarrier will provide government offices in Panama City and Colon local, national and international basic service. Cable & Wireless, on the other hand, will handle national and international service to state agencies across the country, excluding Panama City and Colon, BNamericas states. * * * Fitch Ratings assigned these ratings on Panama: Rating Rating Date ------ ----------- Country Ceiling BBB Apr. 8, 2005 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 ===================== ADELPHIA COMMS: Court Okays Erie County Lease-Back Transaction -------------------------------------------------------------- Adelphia Communications Corporation currently participates in a sales tax incentive program in which it has received an exemption from state and local sales taxes in connection with the purchase of certain capital equipment. Shelley C. Chapman, Esq., at Willkie Farr & Gallagher, in New York, relates that the ACOM Debtors have saved approximately US$147,580 in sales tax by their participation in the Program and if their participation is not properly terminated, they could potentially be liable for repayment of the sales tax saved as well as for the interest and penalties of that tax savings. The ACOM Debtors had also paid a US$231,863 initial agency fee in connection with the Program, which will be recouped once their participation in the Program is terminated. ACOM now wishes to terminate its participation in the Program in order to gain benefits of approximately US$400,000. In order to terminate the participation in the Program, ACOM must comply with certain enabling statutes requiring ACOM to lease computer equipment valued at US$1,900,000 acquired through the Program to Erie County Industrial Development. ACOM will lease the computer equipment to ECIDA for seven days, during which time ECIDA will sublease it back to ACOM. At the conclusion of the Lease-Back Transaction, ACOM will retain title to the computer equipment. Ms. Chapman assures the Court that all negotiations with ECIDA have been conducted through counsel on an arm's-length basis. Accordingly, ACOM sought and obtained the Court's authority to enter into the Lease-Back Transaction pursuant to Section 363 of the Bankruptcy Code. While the Lease-Back Transaction arguably could be characterized as a transaction in the ordinary course of business, the ACOM Debtors seek the Court's approval out of abundance of caution and in compliance with ECIDA's request. Based in Coudersport, Pa., Adelphia Communications Corporation -- http://www.adelphia.com/-- is the fifth-largest cable television company in the country. Adelphia serves customers in 30 states and Puerto Rico, and offers analog and digital video services, high-speed Internet access and other advanced services over its broadband networks. The Company and its more than 200 affiliates filed for Chapter 11 protection in the Southern District of New York on June 25, 2002. Those cases are jointly administered under case number 02-41729. Willkie Farr & Gallagher represents the ACOM Debtors. PricewaterhouseCoopers serves as the Debtors' financial advisor. Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP represent the Official Committee of Unsecured Creditors. (Adelphia Bankruptcy News, Issue No. 133; Bankruptcy Creditors' Service, Inc., 215/945-7000) ADELPHIA COMMS: Dispute Ensues Over Bank Lenders Distribution ------------------------------------------------------------- The Official Committee of Equity Security Holders appointed in the chapter 11 cases of Adelphia Communications Corporation and its debtor-affiliates supports the Official Committee of Unsecured Creditors' request to hold back the distributions to be made to the prepetition bank lenders under the ACOM Debtors' Modified Fourth Amended Joint Plan of Reorganization. Objections The ACOM Debtors note that pursuant to a Court order approving three related agreements between the ACOM Debtors and the Securities Exchange Commission, the Debtors and the Department of Justice, and the Debtors and Rigas Family, dated May 26, 2005, the ACOM Debtors are required to oppose the Creditors Committee's request and are not permitted to propose a plan that withholds any distribution to the Bank Lenders by reason of the pendency of the Bank Lender Avoidance Complaint unless ordered to do so by the Court. According to Marc Abrams, Esq., at Willkie Farr & Gallagher, in New York, the Debtors' agreement to oppose any hold back request was intended to formalize a "handshake" deal between the Bank Lenders and the Debtors, and to facilitate the Bank Lenders' cooperation and, ultimately, acceptance of the Plan. Mr. Abrams notes that while the Creditors Committee's Hold Back request as framed aims to preserve valuable estate assets, depending on the rate at which interest would accrue on any held back distributions, the motion may result in incremental interest costs of more than US$400,000,000. Thus, the ACOM Debtors ask the Court to deny the Official Committee of Unsecured Creditor's request to hold back distributions to prepetition bank lenders until the Court determines the rate of interest, if any, required to be paid on held back distributions and the impact of that interest accrued on the feasibility of the Plan. Several parties-in-interest agree that the payment of the bank claims under the terms of the Plan is required under the Government Settlement Order and appropriate under the standards of Rule 9019 of the Federal Rules of Bankruptcy Procedure: a. various Administrative Agents: -- Wachovia Bank National Association, -- Bank of America, N.A., -- the Bank of Nova Scotia -- JPMorgan Chase Bank, N.A., -- Citibank, N.A., and -- Bank of Montreal; b. these Nominal Agents: -- ABN AMRO Bank N.V., -- Barclays Bank PLC, -- CIBC, INC., -- Merrill Lynch Capital Corp., -- PNC Bank, National Association, -- Societe Generale, S.A. -- Calyon New York Branch -- Bank of New York, & Bank of New York Company, Inc., and -- Credit Suisse, Cayman Branch, & the Royal Bank of Scotland; c. the Ad Hoc Committee of Non-Agent Secured Lenders; d. the Toronto-Dominion Bank; and e. various investment banks, namely: -- ABN AMRO Inc., -- BNY Capital Markets, Inc., -- Barclays Capital Inc., -- Citigroup Global Markets, Inc., -- CIBC World Markets Corp., -- Deutsche Bank Securities, Inc., -- J.P. Morgan Securities Inc., -- Morgan Stanley & Co. Incorporated, -- PNC Capital Markets, Inc., -- Scotia Capital (USA) Inc., -- SunTrust Capital Markets, Inc., -- TD Securities (USA) LLC, and -- Banc of America Securities LLC, and its affiliate, Fleet Securities, Inc. The Non-Agent Committee asks the Court to reject the Creditors Committee's request because it attempts to use Section 502(d) to disallow the Non-Agent Committee members' claims. Under the plain language of Section 502(d) and established case law, the Creditors Committee must obtain adjudication on its avoidance actions before raising Section 502(d). The Bank of Montreal contends that the Plan represents a reasonable settlement and compromise of the allowance and distribution issues. The Toronto-Dominion Bank relates that pursuant to a prepetition interest rate swap agreement between TD Bank and Chelsea Communications, Inc., one of the Debtors, TD Bank holds a general unsecured claim against Chelsea. Although TD Bank is a named defendant in the Bank Action Litigation, the litigation do not specifically allege that TD Bank received any transfers or property from Chelsea that could be recoverable by Chelsea as a result of the Bank Action. Accordingly, TD Bank asks the Court to deny the Creditors Committee's request to the extent that the request seeks to disallow or hold back a distribution to TD Bank on account of the Chelsea Swap Claim. Section 502(d) provides no basis to disallow or hold back a distribution on TD Bank's Chelsea Swap Claim when Chelsea has no valid avoidance recovery claim against TD Bank on account of the Bank Action, Patrick L. Hayden, Esq., at McGuireWoods LLP, in New York, argues. The Investment Banks note that the Plan provides for the payment in cash of the Bank Lender Fee Claims. As affiliates of the Bank Lenders, some or all of the Investment Banks are holders of Bank Claims arising from indemnification to which they are entitled under the relevant Prepetition Credit Agreements. Those claims constitute Bank Claims under the Plan. Since the Committee has not sought relief against the Investment Banks, the references in its request to the treatment of Bank Claims should not be construed to apply to Bank Claims held by the Investment Banks. However, in an abundance of caution to the extent the Creditors Committee's request could be construed to affect Bank Claims held by the Investment Banks, the Investment Banks ask the Court to deny the Creditors Committee's request. Plaintiffs Slam Investment Banks' Response The putative class action plaintiffs in a lawsuit pending before the United States District Court for the Southern District of New York captioned In re Adelphia Communications Corp. Securities & Derivative Litigation, 03 MD 1529(LLM), believes it would be wrong to uphold or consider the response of the various investments banks in connection with the Creditors' Committee's request to hold back distribution. As previously reported, the Investment Banks assert that as "affiliates of the Banks" they are "holders of Bank Claims arising from indemnification to which they are entitled under the relevant Prepetition Credit Agreements." The Plaintiffs tell Judge Gerber that they are not quite sure exactly what point the Investment Banks are trying to make. "If they are saying that simply because they may be affiliates of the Banks, the Prepetition Credit Agreements entitle them to indemnification without regard to whether the underlying claims relate to those agreements, the [Plaintiffs] disagree and submit there is no principled basis for the position. And if they are saying that as holders of Bank Claims they are entitled to indemnification even as to claims arising out of their underwriting activities, there is similarly no merit to the argument," John H. Drucker, Esq., at Cole, Schotz, Meisel, Forman & Leonard, P.A., in New York, argues. The Class Action Plaintiffs never understood that the securities law claims they assert against the Investment Banks in the Securities Class Action relate to the Creditors Committee's Hold Back Motion and do not believe there is any credible, good faith argument that those claims could give rise to "Bank Claims", Mr. Drucker explains. Mr. Drucker informs the Court that if the Investment Banks push the issue in connection with the Hold Back Motion despite the transparent lack of merit to any argument that claims relating to underwriting activities are Bank Claims, it could materially impact the third-party release issue under the ACOM Debtors' Plan of Reorganization. This is because the Debtors would no doubt claim that if the Bank Claims included underwriting claims and if those claims were indemnifiable, the Debtors' exposure to the Banks might be increased in amounts to create confirmation issues, Mr. Drucker says. Creditors Committee Insists The Creditors Committee insists that: (a) the Bank Lenders' entitlement to receive distributions on the Effective Date has not been "settled" because: -- the Government Settlement does not assure that the Bank Lenders will receive distributions on the Effective Date; and -- the ACOM Debtors' Plan of Reorganization does not "settle" the Bank Lenders' entitlement to Effective Date distribution; (b) Section 502(d) requires the Hold Back of the Bank Lenders' distributions; and (c) as a matter of law, the Bank Claims are not entitled to interest at the contract rate after the Effective Date. Based in Coudersport, Pa., Adelphia Communications Corporation -- http://www.adelphia.com/-- is the fifth-largest cable television company in the country. Adelphia serves customers in 30 states and Puerto Rico, and offers analog and digital video services, high-speed Internet access and other advanced services over its broadband networks. The Company and its more than 200 affiliates filed for Chapter 11 protection in the Southern District of New York on June 25, 2002. Those cases are jointly administered under case number 02-41729. Willkie Farr & Gallagher represents the ACOM Debtors. PricewaterhouseCoopers serves as the Debtors' financial advisor. Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP represent the Official Committee of Unsecured Creditors. (Adelphia Bankruptcy News, Issue No. 134; Bankruptcy Creditors' Service, Inc., 215/945-7000) KMART CORP: Court Signs Order Resolving LNR & Goldblatt Dispute --------------------------------------------------------------- The Hon. Susan Pierson Sonderby of the U.S. Bankruptcy Court for the Northern District of Illinois signed the agreed order between LNR Partners, Inc., and Richard A. Goldblatt. Kmart Corporation and Continental Mart Michigan Limited Partnership are parties to lease agreement where Kmart leases property from Continental in Three Rivers, Michigan. On January 31, 2002, Confederation Life Insurance Co., and Continental entered a Mortgage and Security Agreement and Fixture Financing Statement covering a property known as Kmart Store No. 3950 located in Three Rivers. On the same day, Confederation and Continental also entered into an assignment of lease agreement, which assigned the Lease between Continental and Kmart to Confederation. Continental transferred all of its interests in Store No. 3950 to Good Neighbor Properties pursuant to an Amendment and Assignment agreement dated April 23, 1993. Good Neighbor assumed Continental's obligations under the original Assignment of Lease Agreement between Confederation and Continental. Good Neighbor, in turn, transferred all of its interests in Store No. 3950 to Mr. Goldblatt pursuant to an Amendment and Assignment Agreement relating to Financing Documents of Record dated February 14, 1994. Mr. Goldblatt assumed Good Neighbor's obligations under the Original Assignment of Lease Agreement. On April 12, 1994, Confederation assigned its right, interest and title in Store No. 3950 to LaSalle National Bank. LaSalle National serves as Trustee for the holders of the Structured Asset Securities Corporation Multiclass Pass-Through Certificates, Series 1996-CFL. On the Petition Date, Lennar Partners, Inc., was LaSalle's attorney-in-fact. LaSalle held a mortgage on Store No. 3950, which Store was now property of Mr. Goldblatt and was leased to Kmart. On July 29, 2002, Kmart rejected the Store No. 3950 Lease. Mr. Goldblatt filed Claim No. 34563 for US$1,118,663 asserting lease rejection damages for loss of future rent, damages for maintenance fees, and 2001 taxes. In September 2002, LaSalle transferred its interests in Store No. 3950 to SASCO 1996-CFL Three Rivers, LLC, pursuant to an Assignment of Mortgage dated September 17, 2002. SASCO was an entity created by LaSalle. On September 20, 2002, SASCO recorded an assignment of lease. Mr. Goldblatt defaulted on his obligations under the Mortgage that belonged to LaSalle. Pursuant to the which, LaSalle advertised the sale of Store No. 3950 for the applicable period of time. LaSalle was the highest bidder at the forced sale of Store No. 3950. On November 14, 2002, LaSalle was granted a deed of ownership rights -- the Sheriff's Deed -- in Store No. 3950. Lennar Transfers Claim to LaSalle On February 25, 2003, the Debtor objected to the allowance of Claim No. 34563 and notified both Lennar and Mr. Goldblatt of the objection and their right to respond. In 2004, Lennar filed a notice transferring the Claim from Mr. Goldblatt to LaSalle. Mr. Goldblatt objected. As authorized in the Assignment of Lease Agreement between Confederation and LaSalle, the Mortgage by Mr. Goldblatt, and a Consent Agreement between Kmart and LaSalle, LaSalle and the Debtors entered agreed to resolve the lease rejection claim for Kmart Store No. 3950 by: * allowing the Claim in favor of SASCO for $1,012,873; and * barring Mr. Goldblatt from asserting, collecting, seeking to collect any lease rejection or administrative expense amount relating to Store No. 3950. On August 30, 2004, the Court signed the agreed order between LaSalle and the Debtors. Mr. Goldblatt has not appealed the order or filed a request for reconsideration. In November 2004, Lennar asked the Court to rule that Mr. Goldblatt's rights in Claim No. 34653 were transferred to LaSalle and that LaSalle is the owner of the Claim. On Lennar's behalf, Gabriel Reilly-Bates, Esq., at Jenner & Block LLP, in Chicago, Illinois, argued that LaSalle was entitled to the lease rejection claim on the basis that: (i) Mr. Goldblatt has not timely objected to the agreed order between LaSalle and the Debtors; (ii) the Assignment of Lease Agreement between Confederation and LaSalle gave LaSalle the explicit authority to settle any bankruptcy claims arising out of the Lease; (iii) the Assignment of Lease Agreement between Confederation and LaSalle transferred Mr. Goldblatt's rights to receive rent and bankruptcy claims to LaSalle prior to the foreclosure; and (iv) any residual interest that Mr. Goldblatt may have had in Store No. 3950 was terminated and transferred to LaSalle by the Sheriff's Deed, which transferred all right, title and interest, including tenements in Store No. 3950. LNR and Goldblatt Allow Transfer In December 2004, Mr. Goldblatt sought to vacate the agreed order between LaSalle and the Debtors. To settle the dispute, Lennar, now known as LNR Partners, Inc., and Mr. Goldblatt, agree that on the effective date of the Debtors' Plan of Reorganization: * the Claim Transfer Request is granted provided that any distributions to be made on account of Claim No. 34563 will be made in accordance with the Agreed Order between LNR and Mr. Goldblatt; * Mr. Goldblatt's request to vacate the August 2004 Agreed Order and the remaining Goldblatt requests are deemed withdrawn with prejudice; and * the Debtor will distribute the first 3,198 shares to be issued on account of Claim No. 34563 to Mr. Goldblatt and all remaining shares to LNR. Headquartered in Troy, Michigan, Kmart Corporation nka KMART Holding Corporation -- http://www.bluelight.com/-- operates approximately 2,114 stores, primarily under the Big Kmart or Kmart Supercenter format, in all 50 United States, Puerto Rico, the U.S. Virgin Islands and Guam. The Company filed for chapter 11 protection on January 22, 2002 (Bankr. N.D. Ill. Case No. 02-02474). Kmart emerged from chapter 11 protection on May 6, 2003. John Wm. "Jack" Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP, represented the retailer in its restructuring efforts. The Company's balance sheet showed US$16,287,000,000 in assets and US$10,348,000,000 in debts when it sought chapter 11 protection. Kmart bought Sears, Roebuck & Co., for US$11 billion to create the third-largest U.S. retailer, behind Wal-Mart and Target, and generate US$55 billion in annual revenues. The waiting period under the Hart-Scott- Rodino Antitrust Improvements Act expired on Jan. 27, without complaint by the Department of Justice. (Kmart Bankruptcy News, Issue No. 111; Bankruptcy Creditors' Service, Inc., 215/945- 7000) ================================= T R I N I D A D & T O B A G O ================================= BWIA WEST: Ian Brunton Named as Vice President for Operations ------------------------------------------------------------- BWIA West Indies has named Captain Ian Brunton vice president operations effective June 1, the Trinidad Guardian reports. Mr. Brunton was a pilot with BWIA for 29 years on five aircraft types including the airline's current A340 Airbus and Boeing 737 fleet. He has vast experience with senior appointments in the T&T Civil Aviation Authority as chairman and as an advisor to various government committees, the Guardian relates. Mr. Brunton is also a practising attorney-at-law. The Sunday Guardian reported that two vice presidents were let go last week. They were Brenda Billy, VP procurement and material administration and Kimchand Rampaul, VP of maintenance and engineering. "We are delighted to welcome Captain Ian Brunton back to BWIA. We are certain his experience will add significant value to our management team. He will be given every support in his new position," Chief Executive Officer Peter Davies said. BWIA was founded in 1940, and for more than 60 years has been serving the Caribbean islands from Trinidad and Tobago, the hub of the Americas, linking the twin island republic and many other Caribbean islands with North America, South America, the United Kingdom and Europe. The airline has reportedly been losing US$1 million a week due to poor operational management. An employee survey revealed that lack of responsibility by the management is a major issue in the company. ============= U R U G U A Y ============= * URUGUAY: Files With US SEC to Sell US$2.8 Bil. of Securities -------------------------------------------------------------- On May 26, 2006, the Uruguayan government filed with the U.S. Securities and Exchange Commission US$2.8 billion worth of debt securities and warrants under shelf registration, Reuters reports. Reuters relates that the earnings will be employed in general government functions that include debt payments. The Uruguayan government also told Reuters that it has plans of offering securities that will be traded for any of its outstanding securities. * * * As reported in the Troubled Companmy Reporter on May 26, 2006, Fitch Ratings revised the Outlooks on the Oriental Republic of Uruguay's Sovereign ratings to Positive from Stable. The long-term foreign currency Issuer Default Rating is affirmed at 'B+', and the long-term local currency IDR is affirmed at 'BB-'. The Short-term IDR is affirmed at 'B' and the Country Ceiling is affirmed at 'BB-'. * * * Moody's upgraded Uruguay's long-term foreign currency rating to B1 from B3 under the revised foreign currency ceilings on May 24, 2006. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Inks PetroAndina Joint Venture with YPFB ---------------------------------------------------------------- As previously reported in the Troubled Company Reporter on May 15, 2006, Bolivia's state oil firm Yacimientos Petroliferos Fiscales Bolivianos aka YPFB agreed to sign a joint venture accord with its Venezuelan counterpart, Petroleos de Venezuela SA aka PDVSA. The joint venture will be called Petroandina Comercio y Suministro. As its first project, it will open 15 service stations in eight cities for the sale of gasoline, diesel and vehicular natural gas aka VNG. Bolivia will have a 51% stake in Petroandina. PDVSA told Business News Americas that its president, Rafael Ramirez, signed various accords -- that included the joint venture -- with Jorge Alvarado, the head of Bolivia's state-run oil firm YPFB, on Friday. A spokesperson from the energy ministry of Bolivia informed BNamericas that the country and Venezuela agreed to invest at least US$1.5 billion in various projects in Bolivia. The government of Venezuela proposed the creation of Petroandina in a regional oil and gas scheme in Andean countries in July 2005, BNamericas recalls. BNamericas states that other documents signed by Messrs. Ramirez and Alvarado include: -- letters of intent for the installation of two natural gas liquids separation plants expected to be operational in two years, -- a memorandum of understanding aka MOU for the creation of a nitrogen fertilizer manufacturing complex called Fertisur, -- a letter of intent to begin studies for upstream PDVSA activities in Bolivia, -- accord that allows Venezuela to administer training to 200 Bolivian technicians for the development of technology used by PDVSA's R&D subsidiary Intevep, -- agreement that allows Venezuela to provide education to 250 Bolivian students at the technical school of Venezuela's state petrochemicals firm Pequiven. The agreements were signed under the Bolivarian Alternative for the Americas aka ALBA, a scheme proposed by Venezuela's President Hugo Chavez to counter the Free Trade Area of the Americas, an agreement sponsored by the United States, BNamericas relates. * * * Venezuela's foreign currency long-term debt is rated B2 by Moody's, B+ by Standard & Poor's, and BB- by Fitch. * * * Fitch Ratings assigned these ratings on Bolivia: Rating Rating Date ------ ----------- Country Ceiling B- Jun. 17, 2004 Long Term IDR B- Dec. 14, 2005 Local Currency Long Term Issuer Default Rating B- Dec. 14, 2005 * VENEZUELA: OPEC Holding 141st Meeting on June 1 in Caracas ------------------------------------------------------------ The Organization of Petroleum Exporting Countries will hold its 141st special meeting in Caracas, Venezuela, on June 1, El Universal reports. The oil cartel will be discussing the present conditions of the global oil market in order to determine output quotas, prices and measures to ensure meeting demands at fair prices. Venezuelan Minister of Energy and Petroleum, Rafael Ramirez, said that the meeting will be an "an exceptional scene to take decisions on the future oil market," El Universal states. Venezuela has reportedly budgeted US$5 million for the event. Venezuela's foreign currency long-term debt is rated B1 by Moody's, B+ by Standard & Poor's, and BB- by Fitch. *********** 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. Marjorie C. Sabijon, Sheryl Joy P. Olano, Stella Mae Hechanova, and Christian Toledo, Editors. Copyright 2006. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629- 3300. * * * End of Transmission * * *