/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/060602.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 Fridy, June 2, 2006, Vol. 7, Issue 109 Headlines A R G E N T I N A ASESORES INTEGRALES: Claims Verification Deadline Is July 21 BANCO BANEX: Moody's Ups Financial Strength Rating to E+ from E BANCO COMAFI: Moody's Ups Financial Strength Rating to E+ from E BANCO CREDICOOP: Moody's Ups Financial Strength Rating to D- BANCO DE LA CIUDAD: Moody's Ups Financial Strength Rating to E+ BANCO DE LA NACION: Moody's Affirms E Financial Strength Rating BANCO DE LA PROVINCIA: Moody's Alters Rating Outlook to Positive BANCO DE VALORES: Moody's Raises Financial Strength Rating to D- BANCO GALICIA: Moody's Revises Rating Outlook to Positive BANCO ITAU: Moody's Ups Financial Strength Rating to E+ from E BANCO MACRO: Moody's Ups Financial Strength Rating to E+ from E BANCO PATAGONIA: Moody's Raises Financial Strength Rating to E+ BANCO RIO: Moody's Ups Financial Strength Rating to D- from E BANCO SUPERVIELLE: Moody's Ups Financial Strength Rating to E+ BBVA BANCO: Moody's Ups Financial Strength Rating to D- from E BELLANTE HNOS: Creditors Have Until July 4 to Present Claims CAMUZZI GAS: Posts ARS5.68 Mil. Net Loss in First Quarter 2006 CLINICA ESPARTA: Moves Claims Verification Deadline to July 10 DF RECORD: Verification of Proofs of Claim Ends on July 21 HIDRAULICA S.V.: Trustee Stops Validating Claims After June 23 HIRISONA S.A.: Creditors Must File Proofs of Claim by July 20 MBA BANCO: Moody's Raises Financial Strength Rating to E+ from E METALURGICA GAONA: Individual Reports Due in Court on July 12 NUEVO BANCO: Moody's Ups Financial Strength Rating to E+ from E PINTAL S.R.L.: Sets July 20 Deadline for Proofs of Claim Filing SERVICIO INTEGRAL: Individual Reports Due in Court on July 13 TOP EXPRESS: Creditors Must Submit Proofs of Claim by June 14 B E R M U D A BAY POINT: Moody's Puts (P)Ba2 Rating on Seniro Sec. Term Loan FOSTER WHEELER: Saras Awards Contract for New Refinery Units INTELSAT LTD: Subsidiary Proposes US$1.9-Billion Notes Offering B O L I V I A COMIBOL: Former Workers Occupy Lots Near Industrial Plant B R A Z I L AES CORP: Inks Prelim Pact with BNDES to Repay Brasiliana's Debt BRASKEM SA: Shareholders Approved Merger with Polialden CEDRO INTERNATIONAL: Proofs of Claim Filing Ends on June 16 GLOBO COMUNICACAO: Net Revenue Reaches BRL1.3B in First Quarter MOGNO CORP: Liquidator Stops Accepting Claims After June 16 SABESP: Appeals Filing Halts Employees' Planned Strike * BRAZIL: Central Bank Lowers Benchmark Lending Rate to 15.25% * BRAZIL: Central Bank Holds First Currency Swap Auction * BRAZIL: Launches Negotiations on Trade Alliance with Guatemala C A Y M A N I S L A N D S CONISTON LIMITED: Creditors Must File Proofs of Claim by June 20 CONROE LIMITED: Creditors Have Until June 20 to Present Claims MEDTRONIC EUROPE: Sets June 16 as Last Day for Claims Filing MEDTRONIC JAPAN: Sets June 16 as Proofs of Claim Filing Deadline MEDTRONIC U.K.: Proofs of Claim Filing Deadline Is on June 16 OKANAGAN LIMITED: Proofs of Claim Filing Will End on June 20 SIMCOE LIMITED: Filing of Proofs of Claim Will End on June 20 WHITE STAR: Sets July 27 as Last Day for Filing Proofs of Claim C H I L E AES CORP: Forms Joint Venture With AgCert to Reduce Gas Emission COEUR D'ALENE: Earns US$14.3 Mil. in Three Months Ended Mar. 31 C O S T A R I C A * COSTA RICA: Agricultural Exports Up 15.2% in First Quarter D O M I N I C A N R E P U B L I C FALCONBRIDGE LTD: Board Endorses Inco Offer Over Xstrata's FALCONBRIDGE LTD: Inco Venture Identifies US$550M in Synergies E L S A L V A D O R * EL SALVADOR: Okays Revision of Free Trade Accord with Panama * EL SALVADOR: Trade Talks with Canada to Conclude by Yearend G U A T E M A L A * GUATEMALA: Launches Negotiations on Trade Alliance with Brazil * GUATEMALA: Trade Talks with Canada Set to Conclude by Yearend H A I T I * HAITI: Parliament Approves Program on Economic Stabilization H O N D U R A S * HONDURAS: Trade Talks with Canada Set to Conclude by Yearend J A M A I C A MIRANT CORP: Brings NRG Takeover Bid Dispute to Delaware Court N I C A R A G U A * NICARAGUA: Trade Talks with Canada Set to Conclude by Yearend M E X I C O BALLY TOTAL: Will Not Submit Stockholder Rights Plan for Voting BANCO INBURSA: Fitch Affirms C Individual Rating EL POLLO: Holders Grant Requisite Consents to Amend Indentures GENERAL MOTORS: Troy Clarke Named President of GM North America P A N A M A GRUPO FINANCEIRO: Net Profits Drop 7.2% in First Quarter 2006 * PANAMA: Okays Revision of Free Trade Accord with El Salvador P U E R T O R I C O ADELPHIA: Court Disallows Lenders' Multi-Billion Interest Claim ADELPHIA COMMS: Selling Real Property & Equipment for US$1.2MM DORAL FINANCIAL: Completes Sale of US$2.5 Billion Mortgage Loans FIRSTBANK PUERTO RICO: Receives US$2.4 Bil. Payment from Doral T R I N I D A D & T O B A G O BWIA WEST: Gets Carped on Jet Pack Delivery Service U R U G U A Y CITRICOLA SALTENA: Moody's Rates US$1.3-Mil. Secured Bonds at B3 * URUGUAY: State Power Firm Launches Energy Savings Plan V E N E Z U E L A PETROLEOS DE VENEZUELA: Will Ink Oil Pact with Iran's Petropars * VENEZUELA: Oil Minister Foresees No Change in Oil Quota * IDB Enhances Credit Guarantees for LatAm and Caribbean Issuers - - - - - ================= A R G E N T I N A ================= ASESORES INTEGRALES: Claims Verification Deadline Is July 21 ------------------------------------------------------------ Humberto Perez Vanmoregan, the court-appointed trustee for the bankruptcy case of Asesores Integrales de Salud S.A., has started verifying creditors' claims. Verification phase will end on July 21, 2006. La Nacion relates that Buenos Aires' Court No. 8 declared the company bankrupt at the request of its creditor, Imalab S.A. Clerk No. 16 assists the court in this case. The debtor can be reached at: Asesores Integrales de Salud S.A. Avenida Corrientes 1680 Buenos Aires, Argentina The trustee can be reached at: Humberto Perez Vanmoregan Uruguay 594 Buenos Aires, Argentina BANCO BANEX: Moody's Ups Financial Strength Rating to E+ from E --------------------------------------------------------------- Moody's Investors Service upgraded the bank financial strength rating of Banco Banex S.A. to E+ from E. The outlook on this rating is stable. Moody's action reflects: -- the bank's improving financial fundamentals, -- the relative improvement in the operating environment, and -- the recovery of the banking system since the financial crisis of 2001-2002. In taking this action, Moody's also considered the efforts that the bank exerted to improve its core earnings and asset quality, as well as to reduce its exposures to the public sector -- achievements that vary within the banking system, and which have contributed to the bank's improving solvency. The rating action reflects this bank's relatively stronger balance sheets and solvency following the crisis, as well as its low public sector exposures. However they also reflect its developing franchises, more limited market shares and revenue diversification relative to their larger peers. BANCO COMAFI: Moody's Ups Financial Strength Rating to E+ from E ---------------------------------------------------------------- Moody's Investors Service upgraded the bank financial strength rating of Banco Comafi S.A. from E to E+. The outlook on this rating is stable. Moody's action reflects: -- the bank's improving financial fundamentals, -- the relative improvement in the operating environment, and -- the recovery of the banking system since the financial crisis of 2001-2002. In taking this action, Moody's also considered the efforts that the bank exerted to improve its core earnings and asset quality, as well as to reduce its exposures to the public sector -- achievements that vary within the banking system, and which have contributed to the bank's improving solvency. The rating action reflects this bank's relatively stronger balance sheets and solvency following the crisis, as well as its low public sector exposures. However they also reflect its developing franchises, more limited market shares and revenue diversification relative to their larger peers. BANCO CREDICOOP: Moody's Ups Financial Strength Rating to D- ------------------------------------------------------------ Moody's Investors Service upgraded the bank financial strength rating of Banco Credicoop Cooperativo Limitado to D- from E. The outlook on this rating is stable. Moody's action reflects: -- the bank's improving financial fundamentals, -- the relative improvement in the operating environment, and -- the recovery of the banking system since the financial crisis of 2001-2002. In taking this action, Moody's also considered the efforts that the bank exerted to improve its core earnings and asset quality, as well as to reduce its exposures to the public sector -- achievements that vary within the banking system, and which have contributed to the bank's improving solvency. The rating action reflects this bank's relatively stronger balance sheets and solvency following the crisis, as well as its low public sector exposures. However they also reflect its developing franchises, more limited market shares and revenue diversification relative to their larger peers. BANCO DE LA CIUDAD: Moody's Ups Financial Strength Rating to E+ --------------------------------------------------------------- Moody's Investors Service upgraded the bank financial strength rating of Banco de la Ciudad de Buenos Aires E+ from E. The outlook on this rating is stable. Moody's action reflects: -- the bank's improving financial fundamentals, -- the relative improvement in the operating environment, and -- the recovery of the banking system since the financial crisis of 2001-2002. In taking this action, Moody's also considered the efforts that the bank exerted to improve its core earnings and asset quality, as well as to reduce its exposures to the public sector -- achievements that vary within the banking system, and which have contributed to the bank's improving solvency. Moody's noted that the bank improved its franchises and financials since the crisis; nevertheless, its franchise value still lags that of the D- rated banks because of its more limited market shares, product diversification and earnings generating ability. The rating agency also pointed out that the positive outlook reflects the expectation of further improvements in the bank's core earnings and balance sheet quality as it focus more fully on business development. BANCO DE LA NACION: Moody's Affirms E Financial Strength Rating --------------------------------------------------------------- Moody's affirmed Banco de la Nacion Argentina's bank financial strength rating at E, due to its still extremely weak financial fundamentals and high public sector exposure. The outlook on the rating remains stable. In taking this action, Moody's also considered the efforts that the bank exerted to improve its core earnings and asset quality, as well as to reduce its exposures to the public sector -- achievements that vary within the banking system, and which have contributed to the bank's improving solvency. BANCO DE LA PROVINCIA: Moody's Alters Rating Outlook to Positive ---------------------------------------------------------------- Moody's Investors Service upgraded the bank financial strength ratings of several Argentinean banks to reflect: -- the banks' improving financial fundamentals, -- the relative improvement in the operating environment, and -- the recovery of the banking system since the financial crisis of 2001-2002. In taking this action, Moody's also considered the efforts that the various banks exerted to improve their core earnings and asset quality, as well as to reduce their exposures to the public sector -- achievements that vary within the banking system, and which have contributed to the banks' improving solvency. Moody's changed the outlooks on the E bank financial strength ratings of Banco de Galicia S.A. and Banco de la Provincia de Buenos Aires to positive from stable. The rating agency also takes into consideration the effort of these banks to improve their balance sheet quality and earnings. The low ratings are however, an indication of the challenges that these banks still face to reduce their large exposures to the public sector, as well as the disadvantages of their poor private-sector asset quality, weak core earnings, and solvency. BANCO DE VALORES: Moody's Raises Financial Strength Rating to D- ---------------------------------------------------------------- Moody's Investors Service upgraded the bank financial strength ratings of several Argentinean banks to reflect: -- the banks' improving financial fundamentals, -- the relative improvement in the operating environment, and -- the recovery of the banking system since the financial crisis of 2001-2002. In taking this action, Moody's also considered the efforts that the various banks exerted to improve their core earnings and asset quality, as well as to reduce their exposures to the public sector -- achievements that vary within the banking system, and which have contributed to the banks' improving solvency. Moody's upgraded Banco Rio de la Plata S.A., BBVA Banco Frances S.A., Banco Credicoop Cooperativo Limitado and Banco de Valores S.A to D- from E. Moody's said that the ratings upgrades were based on -- these banks' strong franchises in their respective markets, -- their improving core earnings potential, and -- the successful restructuring of their balance sheets. The outlooks on these ratings are stable. Having largely dealt with the legacies of Argentina's deep financial crisis, these banks now also report improving asset quality and capitalization ratios, and their managements seem prone to leverage their earnings generation ability in an improving economic environment. Moody's upgraded this rating of Banco de Valores S.A.: -- Bank Financial Strength Rating: to D- from E with stable outlook. BANCO GALICIA: Moody's Revises Rating Outlook to Positive --------------------------------------------------------- Moody's Investors Service upgraded the bank financial strength ratings of several Argentinean banks to reflect: -- the banks' improving financial fundamentals, -- the relative improvement in the operating environment, and -- the recovery of the banking system since the financial crisis of 2001-2002. In taking this action, Moody's also considered the efforts that the various banks exerted to improve their core earnings and asset quality, as well as to reduce their exposures to the public sector -- achievements that vary within the banking system, and which have contributed to the banks' improving solvency. Moody's changed the outlooks on the E bank financial strength ratings of Banco de Galicia S.A. and Banco de la Provincia de Buenos Aires to positive from stable. The rating agency also takes into consideration the effort of these banks to improve their balance sheet quality and earnings. The low ratings are however, an indication of the challenges that these banks still face to reduce their large exposures to the public sector, as well as the disadvantages of their poor private-sector asset quality, weak core earnings, and solvency. BANCO ITAU: Moody's Ups Financial Strength Rating to E+ from E -------------------------------------------------------------- Moody's Investors Service upgraded the bank financial strength ratings of several Argentinean banks to reflect: -- the banks' improving financial fundamentals, -- the relative improvement in the operating environment, and -- the recovery of the banking system since the financial crisis of 2001-2002. In taking this action, Moody's also considered the efforts that the various banks exerted to improve their core earnings and asset quality, as well as to reduce their exposures to the public sector -- achievements that vary within the banking system, and which have contributed to the banks' improving solvency. Moody's upgraded the bank financial strength ratings of Banco Patagonia S.A., Banco Macro Bansud S.A., Nuevo Banco Suquia S.A., Banco de la Ciudad de Buenos Aires, and Banco Itau Buen Ayre S.A. to E+ from E. The outlooks on these ratings are positive. Moody's noted that these banks improved their franchises and financials since the crisis; nevertheless, their franchise value still lags that of the D- rated banks because of their more limited market shares, product diversification and earnings generating ability. The rating agency also pointed out that the positive outlooks reflect the expectation of further improvements in these banks' core earnings and balance sheet quality as they focus more fully on business development. Moody's upgraded this rating of Banco Itau Buen Ayre S.A.: -- Bank Financial Strength Rating: to E+ from E with positive outlook. BANCO MACRO: Moody's Ups Financial Strength Rating to E+ from E --------------------------------------------------------------- Moody's Investors Service upgraded the bank financial strength ratings of several Argentinean banks to reflect: -- the banks' improving financial fundamentals, -- the relative improvement in the operating environment, and -- the recovery of the banking system since the financial crisis of 2001-2002. In taking this action, Moody's also considered the efforts that the various banks exerted to improve their core earnings and asset quality, as well as to reduce their exposures to the public sector -- achievements that vary within the banking system, and which have contributed to the banks' improving solvency. Moody's upgraded the bank financial strength ratings of Banco Patagonia S.A., Banco Macro Bansud S.A., Nuevo Banco Suquia S.A., Banco de la Ciudad de Buenos Aires, and Banco Itau Buen Ayre S.A. to E+ from E. The outlooks on these ratings are positive. Moody's noted that these banks improved their franchises and financials since the crisis; nevertheless, their franchise value still lags that of the D- rated banks because of their more limited market shares, product diversification and earnings generating ability. The rating agency also pointed out that the positive outlooks reflect the expectation of further improvements in these banks' core earnings and balance sheet quality as they focus more fully on business development. Moody's upgraded this rating of Banco Macro Bansud S.A.: -- Bank Financial Strength Rating: to E+ from E with positive outlook. BANCO PATAGONIA: Moody's Raises Financial Strength Rating to E+ --------------------------------------------------------------- Moody's Investors Service upgraded the bank financial strength ratings of several Argentinean banks to reflect: -- the banks' improving financial fundamentals, -- the relative improvement in the operating environment, and -- the recovery of the banking system since the financial crisis of 2001-2002. In taking this action, Moody's also considered the efforts that the various banks exerted to improve their core earnings and asset quality, as well as to reduce their exposures to the public sector -- achievements that vary within the banking system, and which have contributed to the banks' improving solvency. Moody's upgraded the bank financial strength ratings of Banco Patagonia S.A., Banco Macro Bansud S.A., Nuevo Banco Suquia S.A., Banco de la Ciudad de Buenos Aires, and Banco Itau Buen Ayre S.A. to E+ from E. The outlooks on these ratings are positive. Moody's noted that these banks improved their franchises and financials since the crisis; nevertheless, their franchise value still lags that of the D- rated banks because of their more limited market shares, product diversification and earnings generating ability. The rating agency also pointed out that the positive outlooks reflect the expectation of further improvements in these banks' core earnings and balance sheet quality as they focus more fully on business development. Moody's upgraded this rating of Banco Patagonia S.A.: -- Bank Financial Strength Rating: to E+ from E with positive outlook. BANCO RIO: Moody's Ups Financial Strength Rating to D- from E ------------------------------------------------------------- Moody's Investors Service upgraded the bank financial strength ratings of several Argentinean banks to reflect: -- the banks' improving financial fundamentals, -- the relative improvement in the operating environment, and -- the recovery of the banking system since the financial crisis of 2001-2002. In taking this action, Moody's also considered the efforts that the various banks exerted to improve their core earnings and asset quality, as well as to reduce their exposures to the public sector --- achievements that vary within the banking system, and which have contributed to the banks' improving solvency. Moody's upgraded Banco Rio de la Plata S.A., BBVA Banco Frances S.A., Banco Credicoop Cooperativo Limitado and Banco de Valores S.A to D- from E. Moody's said that the ratings upgrades were based on -- these banks' strong franchises in their respective markets, -- their improving core earnings potential, and -- the successful restructuring of their balance sheets. The outlooks on these ratings are stable. Having largely dealt with the legacies of Argentina's deep financial crisis, these banks now also report improving asset quality and capitalization ratios, and their managements seem prone to leverage their earnings generation ability in an improving economic environment. Moody's upgraded this rating of Banco Rio de la Plata S.A.: -- Bank Financial Strength Rating: to D- from E with stable outlook. BANCO SUPERVIELLE: Moody's Ups Financial Strength Rating to E+ -------------------------------------------------------------- Moody's Investors Service upgraded the bank financial strength ratings of several Argentinean banks to reflect: -- the banks' improving financial fundamentals, -- the relative improvement in the operating environment, and -- the recovery of the banking system since the financial crisis of 2001-2002. In taking this action, Moody's also considered the efforts that the various banks exerted to improve their core earnings and asset quality, as well as to reduce their exposures to the public sector -- achievements that vary within the banking system, and which have contributed to the banks' improving solvency. Moody's upgraded the BFSRs of Banco Comafi S.A., Banco Banex S.A. Banco Supervielle S.A., and MBA Banco de Inversiones S.A. to E+ from E. The outlooks on these ratings are stable. The rating actions reflect these banks' relatively stronger balance sheets and solvency following the crisis, as well as their low public sector exposures. However they also reflect their developing franchises, more limited market shares and revenue diversification relative to their larger peers. Moody's upgraded this rating of Banco Supervielle S.A.: -- Bank Financial Strength Rating: to E+ from E with stable outlook. BBVA BANCO: Moody's Ups Financial Strength Rating to D- from E -------------------------------------------------------------- Moody's Investors Service upgraded the bank financial strength ratings of several Argentinean banks to reflect: -- the banks' improving financial fundamentals, -- the relative improvement in the operating environment, and -- the recovery of the banking system since the financial crisis of 2001-2002. In taking this action, Moody's also considered the efforts that the various banks exerted to improve their core earnings and asset quality, as well as to reduce their exposures to the public sector --- achievements that vary within the banking system, and which have contributed to the banks' improving solvency. Moody's upgraded Banco Rio de la Plata S.A., BBVA Banco Frances S.A., Banco Credicoop Cooperativo Limitado and Banco de Valores S.A to D- from E. Moody's said that the ratings upgrades were based on -- these banks' strong franchises in their respective markets, -- their improving core earnings potential, and -- the successful restructuring of their balance sheets. The outlooks on these ratings are stable. Having largely dealt with the legacies of Argentina's deep financial crisis, these banks now also report improving asset quality and capitalization ratios, and their managements seem prone to leverage their earnings generation ability in an improving economic environment. Moody's upgraded this rating of BBVA Banco Frances S.A.: -- Bank Financial Strength Rating: to D- from E with stable outlook. BELLANTE HNOS: Creditors Have Until July 4 to Present Claims ------------------------------------------------------------ Creditors of Bellante Hnos. S.A.C.I. are required to submit particulars of their claims by July 4, 2006. Infobae relates that the claims will undergo a verification phase. Claims that are verified will then be submitted in court as individual reports. A general report, which will contain the company's audited business records as well as a summary of events pertaining to the liquidation, will follow after the presentation of the individual report. The dates of submission of these reports are yet to be disclosed. A court in Trenque Lauquen, Buenos Aires, declared the company bankrupt and appointed Ada Estela Vincent as trustee to supervise the proceeding. The debtor can be reached at: Bellante Hnos. S.A.C.I. Avenida 9 de Julio e H. Yrigoyen, Carlos Casares Buenos Aires, Argentina The trustee can be reached at: Ada Estela Vincent San Martin 465, Trenque Lauquen Buenos Aires, Argentina CAMUZZI GAS: Posts ARS5.68 Mil. Net Loss in First Quarter 2006 -------------------------------------------------------------- Camuzzi Gas Pampeana, a natural gas distributor in Argentina, told the country's securities regulator -- Comision Nacional de Valores -- that its net loss in the first quarter 2006 increased to ARS5.68 million from ARS3.4 million in the same period in 2005. Business News Americas says that these factors led to the increase of losses: -- revenue drop, -- continued high sales costs, -- increased marketing and administrative expenses, and -- higher financial losses. Camuzzi's revenue dropped 10.4% in to ARS73.7 million while operating losses increased to ARS5.32 million from the ARS1.81 million in the first quarter last year, BNamericas states. According to BNamericas, Camuzzi used about 69% of its transport capacity. Gas deliveries, on the other hand, reached 953 million cubic meters. Camuzzi was able to increase its customer base to about 1,034,106 by obtaining about 6,529 new customers in the first quarter 2006, BNamericas reports. Camuzzi Gas Pampeana S.A. serves most of the province of Buenos Aires -- excluding the city of Buenos Aires and the greater metropolitan area of Buenos Aires -- and the Province of La Pampa, encompassing primary industrial and residential areas. The company operates a 3,500-kilometer pipeline network and a 17,600-kilometer distribution network and its primary shareholder is Sodigas Pamapena, which has an 86.09% interest. * * * As reported in the Troubled Company Reporter on April 17, 2006, Moody's Investors Service assigned a B2 global local currency rating and an A2.ar national scale rating to Camuzzi Gas Pampeana's issue of up to ARS75 millions senior unsecured Class 3 notes with a stable outlook. CLINICA ESPARTA: Moves Claims Verification Deadline to July 10 -------------------------------------------------------------- Buenos Aires' Court No. 1 extended the submission of creditors' claims against bankrupt firm Clinica Esparta S.R.L. Maria Susana Taboada, the court-appointed trustee, will accept claims until July 10, 2006. As reported in the Troubled Company Reporter on May 18, 2006, Court No. 1 declared the company bankrupt, in favor of Organizacion de Servicios Directos Empresarios, which the company owes US$8,524.57. Clerk No. 2 assists the court on the case. The debtor can be reached at: Clinica Esparta S.R.L. Tacuari 1330 Buenos Aires, Argentina The trustee can be reached at: Maria Susana Taboada Juana Azurduy 2449 Buenos Aires, Argentina DF RECORD: Verification of Proofs of Claim Ends on July 21 ---------------------------------------------------------- The verification phase for the proofs of claim submitted by DF Record S.A.'s creditors have started, Argentine daily La Nacion reports. The verification phase will end on July 21, 2006. Creditors who are unable to submit claims will be excluded from receiving any distribution or payment that the company will make. DF REcord was declared bankrupt by Buenos Aires' Court No. 15 with the assistance of Clerk No. 30. The court made the ruling in favor of the company's creditor, Cooperativa del Milenio Limitada, which the company owes US$42,000. The court appointed Carlos Carrescia as trustee. The debtor can be reached at: DF Record S.A. Lavalle 1118 Buenos Aires, Argentina The trustee can be reached at: Carlos Carrescia Tucuman 1621 Buenos Aires, Argentina HIDRAULICA S.V.: Trustee Stops Validating Claims After June 23 -------------------------------------------------------------- Court-appointed trustee Enrique Batellini will stop validating claims against bankrupt company Hidraulica S.V. after June 23, 2006, Infobae reports. Mr. Batellini will present the validated claims in court as individual reports on Aug. 11, 2006. The trustee will also submit a general report on the case on Sept. 22, 2006. A Buenos Aires court handles the company's bankruptcy case. The trustee can be reached at: Enrique Batellini Parana 774 Buenos Aires, Argentina HIRISONA S.A.: Creditors Must File Proofs of Claim by July 20 ------------------------------------------------------------- Marcelo Carlos Rodriguez, the trustee appointed by a Buenos Aires court for the bankruptcy proceeding of Hirisona S.A., will no longer entertain claims that are submitted after July 20, 2006, Infobae reports. Creditors whose claims are not validated will be disqualified from receiving any payment that the company will make. Individual reports on the validated claims will be presented in court on Sept. 15, 2006. The submission of the general report on the case will follow on Oct. 31, 2006. The trustee can be reached at: Marcelo Carlos Rodriguez Cerrito 146 Buenos Aires, Argentina MBA BANCO: Moody's Raises Financial Strength Rating to E+ from E ---------------------------------------------------------------- Moody's Investors Service upgraded the bank financial strength ratings of several Argentinean banks to reflect: -- the banks' improving financial fundamentals, -- the relative improvement in the operating environment, and -- the recovery of the banking system since the financial crisis of 2001-2002. In taking this action, Moody's also considered the efforts that the various banks exerted to improve their core earnings and asset quality, as well as to reduce their exposures to the public sector --- achievements that vary within the banking system, and which have contributed to the banks' improving solvency. Moody's upgraded the BFSRs of Banco Comafi S.A., Banco Banex S.A. Banco Supervielle S.A., and MBA Banco de Inversiones S.A. to E+ from E. The outlooks on these ratings are stable. The rating actions reflect these banks' relatively stronger balance sheets and solvency following the crisis, as well as their low public sector exposures. However they also reflect their developing franchises, more limited market shares and revenue diversification relative to their larger peers. Moody's upgraded this rating of MBA Banco de Inversiones S.A.: -- Bank Financial Strength Rating: to E+ from E with stable outlook. METALURGICA GAONA: Individual Reports Due in Court on July 12 ------------------------------------------------------------- Court-appointed trustee Jacobo Luterstein will present individual reports on the validated claims against Metalurgica Gaona S.R.L. on July 12, 2006, Infobae reports. The trustee stopped verifying the claims on May 30, 2006. The submission of a general report on the case is expected in court on Sept. 11, 2006. As reported in the Troubled Company Reporter on April 21, 2006, Court No. 5 of Buenos Aires' civil and commercial tribunal declared the company bankrupt. Clerk No. 9 assists the court on the case. The debtor can be reached at: Metalurgica Gaona S.R.L. Castro Barros 1193 Buenos Aires, Argentina The trustee can be reached at: Jacobo Luterstein Rodriguez Pena 694 Buenos Aires, Argentina NUEVO BANCO: Moody's Ups Financial Strength Rating to E+ from E --------------------------------------------------------------- Moody's Investors Service upgraded the bank financial strength ratings of several Argentinean banks to reflect: -- the banks' improving financial fundamentals, -- the relative improvement in the operating environment, and -- the recovery of the banking system since the financial crisis of 2001-2002. In taking this action, Moody's also considered the efforts that the various banks exerted to improve their core earnings and asset quality, as well as to reduce their exposures to the public sector --- achievements that vary within the banking system, and which have contributed to the banks' improving solvency. Moody's upgraded the bank financial strength ratings of Banco Patagonia S.A., Banco Macro Bansud S.A., Nuevo Banco Suquia S.A., Banco de la Ciudad de Buenos Aires, and Banco Itau Buen Ayre S.A. to E+ from E. The outlooks on these ratings are positive. Moody's noted that these banks improved their franchises and financials since the crisis; nevertheless, their franchise value still lags that of the D- rated banks because of their more limited market shares, product diversification and earnings generating ability. The rating agency also pointed out that the positive outlooks reflect the expectation of further improvements in these banks' core earnings and balance sheet quality as they focus more fully on business development. Moody's upgraded this rating of Nuevo Banco Suquia S.A.: -- Bank Financial Strength Rating: to E+ from E with positive outlook. PINTAL S.R.L.: Sets July 20 Deadline for Proofs of Claim Filing --------------------------------------------------------------- Creditors of bankrupt company Pintal S.R.L. are required to present proofs of claim to Ester Lazzarone, the court-appointed trustee, by July 20, 2006, La Nacion reports. Creditors who fail to submit the required documents will not qualify for any post-liquidation distributions. Buenos Aires' Court No. 24 declared the company bankrupt at the behest of Victor Miranda, whom the company owes US$14,785.74. Clerk No. 47 assists the court on the case. The debtor can be reached at: Pintal S.R.L. Azcuenaga 75 Buenos Aires, Argentina The trustee can be reached at: Ester Lazzarone Cordoba 1943 Buenos Aires, Argentina SERVICIO INTEGRAL: Individual Reports Due in Court on July 13 ------------------------------------------------------------- Juan Castronuovo, the court-appointed trustee in the bankruptcy case of Servicio Integral Telefonico S.A., will present in court individual reports of verified claims on July 13, 2006, Infobae relates. The claims verification ended May 31, 2006. A general report on the case is expected in court on Sept. 7, 2006. As reported in the Troubled company Reporter on March 3, 2006, Servicio Integral was declared bankrupt after Buenos Aires Court No. 17 endorsed the petition of Obra Social de Empleados de Comercio for the company's liquidation. Clerk No. 33 assists the court in this case. The debtor can be reached at: Servicio Integral Telefonico S.A. Avenida Belgrano 2068 Buenos Aires, Argentina The trustee can be reached at: Juan Castronuovo Cerrito 1116 Buenos Aires, Argentina TOP EXPRESS: Creditors Must Submit Proofs of Claim by June 14 ------------------------------------------------------------- Creditors of Top Express S.A. are required to submit proofs of claim by June 14, 2006, to Adriana E. Serki, the court-appointed trustee. Top Express will proceed with reorganization after a Buenos Aires Court converted the company's ongoing bankruptcy case into reorganization, states Infobae. The court also ordered the trustee to prepare individual reports after the verification process is completed, and have them ready by Aug. 11, 2006. A general report on the reorganization proceeding is expected on Sept. 26, 2006. As reported in the Troubled Company Reporter on March 29, 2006, the trustee was ordered by the court to verify proofs of claim for the company's reorganization proceeding until April 17, 2006. An individual report was also scheduled to be submitted on June 1, 2006, and a general report was expected to follow on July 31, 2006. However, the submission of the reports has been postponed after the court converted the bankruptcy case into a reorganization proceeding. 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. The debtor can be reached at: Top Express S.A. Santa Fe 1373, Rosario Santa Fe, Argentina The trustee can be reached at: Adriana E. Serki Ituzaingo 1575, Rosario Santa Fe, Argentina ============= B E R M U D A ============= BAY POINT: Moody's Puts (P)Ba2 Rating on Seniro Sec. Term Loan -------------------------------------------------------------- Moody's Investors Service assigned a provisional (P)Ba2 rating to the senior secured term loan of Bermuda-based Bay Point Holdings Ltd. and a provisional (P)Baa3 insurance financial strength rating to Bay Point Re Ltd, its wholly-owned Bermuda- based operating subsidiary. The outlook for the provisional ratings is stable. Moody's noted that it expects to confirm these ratings upon review of final executed documentation for both Bay Point Holdings and Bay Point Re, provided the documentation is consistent with the terms and conditions specified to date that underlie the provisional ratings. The privately-placed senior secured term loan of Bay Point Holdings, which is being syndicated to financial institutions and other institutional lenders under Section 144A guidelines, is scheduled to incept on May 31, 2006 and to mature on Dec. 31, 2010. The loan is secured by the capital stock of Bay Point Re, and is non-amortizing, but allows for voluntary prepayments, requires mandatory prepayments under certain circumstances, and is callable at a premium. According to Moody's, Bay Point Holdings is a privately held holding company for Bay Point Re, a newly formed Class 3 licensed Bermuda reinsurer that has entered into a quota-share reinsurance treaty with Bermuda-based Harbor Point Re Limited. Bay Point Re will assume specified percentages of certain lines of reinsurance -- including property, marine, energy and certain other lines of business underwritten by Harbor Point Re Limited for the 2006 and 2007 underwriting years. Initial capitalization for Bay Point Re is expected to be up to US$250 million, comprised of up to US$125 million in a senior secured term loan, cumulative preferred shares and common equity. The company's capital and risk assumption capacity -- or "minimum capital cushion" - is gauged to support a maximum risk load over the life of the transaction as calibrated by the greater of two tests, one involving the ratio of maximum projected in-force premiums, and the other involving a combination of modeled return-periods for the in-force portfolio. Bay Point Re will post its total paid-in capital as cash and securities into a trust to collateralize its reinsurance obligations to Harbor Point Re Limited. Investment holdings are expected to be entirely investment-grade, with an average quality toward the high end of rating spectrum, and a duration that is reasonably matched to Bay Point's expected liability duration. Moody's analysis focused on both structural and contractual features of the Bay Point vehicle, as well as stochastic analysis of the company's existing and expected underwriting and investment portfolios, and its expense and capital structures, which were components of analyzing both the probability of loss, and expected severity of loss for both Bay Point Holdings' debt- holders, and Bay Point Re's policyholder. Moody's stated that Bay Point Re's ratings primarily reflect the company's capitalization level and balance sheet that is unencumbered by legacy exposures, structural characteristics that are designed to offer protection to debt investors, and its conservative investment policy. The rating agency stated that these fundamental strengths are significantly tempered by Bay Point Re's relatively high debt leverage profile, the inherent underwriting volatility of its catastrophe-exposed reinsurance portfolio, some uncertainty about the overall risk composition of its portfolio over time -- given its multi-line and global span, and by parameter risk in the assumptions underlying the risk modeling that forms the basis of the company's capitalization. Moody's further noted that its expectations at the current rating level are that Bay Point Holdings will continue to maintain a financial leverage profile at no more than 50% debt to total capital and that shareholders' equity will not decline by more than 15% over a 12 month period. That said, the rating agency noted that the ratings will likely reflect updated analysis of the cumulative performance of the company, its future overall risk-adjusted capitalization level, and updated prospective probabilistic analysis of its reinsurance portfolio at future points in time. These provisional ratings have been assigned: Bay Point Holdings Ltd. * senior secured term loan due 2010 at (P)Ba2; Bay Point Re Ltd. * insurance financial strength at (P)Baa3. Bay Point Holdings Ltd., based in Bermuda, is the holding company for Bay Point Re Ltd., which is a licensed Class 3 Bermuda insurer that has entered into a quota-share reinsurance treaty with Bermuda-based Harbor Point Re Limited pursuant to which Bay Point Re will assume specified percentages of certain lines of reinsurance business underwritten by Harbor Point on behalf of ceding companies for the 2006 and 2007 underwriting years. Moody's insurance financial strength ratings are opinions of the ability of insurance companies to repay punctually senior policyholder claims and obligations. FOSTER WHEELER: Saras Awards Contract for New Refinery Units ------------------------------------------------------------ Foster Wheeler Ltd. disclosed that Milan-based Foster Wheeler Italiana S.p.A., part of its Global Engineering and Construction Group, has been awarded an engineering and procurement contract by Saras S.p.A. for new process units at the Sarroch refinery in Sardinia, Italy. The contract also includes an option, which Saras may elect to exercise at a later date, for the provision of construction supervision services by Foster Wheeler. Saras is one of the leading industrial companies in Italy and its Sarroch refinery is one of Europe's largest and most advanced refining complexes. The terms of the contract award, which were included in Foster Wheeler's first-quarter 2006 bookings, were not disclosed. Foster Wheeler's scope includes a new hydrodesulfurization unit with 180 cubic meters per hour throughput, designed to reduce the sulfur content of a gasoline blending component to seven parts per million weight, while minimizing octane loss. In addition, two new independent tail gas treatment units will be installed, each with approximately 36 metric tons per hour capacity. The tail gas treatment units will be designed to achieve a minimum overall sulfur recovery of 99.9% from the tail gases, in line with new emissions legislation. Tail gases are "leftover" gases from the sulfur recovery unit. "We are very pleased to be awarded this project by Saras," said Umberto della Sala, chief executive officer of Foster Wheeler's Global Engineering and Construction Group. "The importance of this award goes far beyond the contract itself and represents a significant first step in the development of a long-term alliance relationship with Saras." "This project is very important for the future development of our refinery at Sarroch," said Paolo Alfani, executive vice president, Saras S.p.A. "We are confident that Foster Wheeler has the right experience, expertise and professionalism to meet our objectives for this challenging project and also to establish a successful partnership relationship with Saras." Headquartered in Hamilton, Bermuda, Foster Wheeler Ltd. -- http://www.fwc.com/-- is a global company offering, through its subsidiaries, a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. At Dec. 31, 2005, Foster Wheeler's balance sheet showed a US$341,796,000 equity deficit compared to a US$525,565 equity deficit on Dec. 31, 2004. * * * As reported in the Troubled Company Reporter on May 25, 2006, Standard & Poor's Ratings Services raised its corporate credit rating to to B+ from B- and its senior secured notes rating to B+ from CCC+. At the same time, Standard & Poor's assigned its 'BB-' bank loan rating and '1' recovery rating to the company's five-year, US$250 million credit facility due 2010. * * * On May 26, 2006, Moddy'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. INTELSAT LTD: Subsidiary Proposes US$1.9-Billion Notes Offering --------------------------------------------------------------- Intelsat, Ltd., disclosed that its wholly owned subsidiary, Intelsat (Bermuda), Ltd., intends to offer approximately US$1.9 billion of senior notes due 2013 and 2016 in connection with its contemplated acquisition of PanAmSat Holding Corporation. In addition, PanAmSat Holding Corporation intends to offer approximately US$725 million of senior notes due 2016 and PanAmSat Corporation intends to offer approximately US$575 million of senior notes due 2016. The net proceeds from these offerings will be used, together with cash on hand, to consummate the Acquisition. PanAmSat Holding Corporation has commenced an offer to purchase and consent solicitation for any and all of its outstanding 10-3/8% senior discount notes due 2014. If the tender offer is consummated, PanAmSat Holding Corporation will not issue the senior notes referred to above and Intelsat (Bermuda), Ltd. will issue approximately an additional US$1.0 billion of senior notes to fund the tender offer and consent payments, as well as the balance of the Acquisition merger consideration. The notes referred to above will be offered to qualified institutional buyers under Rule 144A and to persons outside the United States under Regulation S. The notes will not be registered under the Securities Act of 1933, as amended, and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. About Intelsat Intelsat 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 ============= COMIBOL: Former Workers Occupy Lots Near Industrial Plant --------------------------------------------------------- Former workers of Corporacion Minera de Bolivia aka Comibol, a state-run miner of Bolivia, occupied portions of land where the Oruro industrial plant is located, El Diario reports. According to El Diario, the former employees were at odds with mining cooperative groups over the lots. El Diario states that the former workers had requested for land. However, neither Comibol nor the mining ministry responded. The workers threatened to increase pressure tactics and use the land for housing unless the Comibol authorities would attend to their demands within 48 hours, Business News Americas reports. * * * Comibol underwent a restructuring initiated by the Bolivian government. As reported in the Troubled Company Reporter on Feb. 6, 2006, the restructuring of Bolivia's state mining company Comibol could take a long time. Bolivian President Evo Morales' initiative for the company's restructuring would take time as currently Comibol mines are under joint venture contracts or leasing agreements. Comibol has US$85 million in assets including equipment and machinery, which cannot be used by small and medium-scale miners and cooperatives. According to Cabrera, only some of that equipment can be employed in the restructuring; the rest is too old or is unsuitable. =========== B R A Z I L =========== AES CORP: Inks Prelim Pact with BNDES to Repay Brasiliana's Debt ---------------------------------------------------------------- The AES Corporation (NYSE:AES) disclosed that AES Transgas Empreendimentos S.A., a wholly owned subsidiary of Brasiliana Energia S.A., plans to sell a portion of its interest in Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A., the largest regulated electric utility in Brazil. Brasiliana is jointly owned by AES and the Brazilian National Development Bank. Proceeds from the secondary sale are expected to be used by Brasiliana to repay in full its debt to BNDES, which was US$582 million as of March 31, 2006. Upon completion of the proposed sale, Brasiliana will continue to control Eletropaulo by maintaining a 76.5 percent stake of the controlling shares. The offering, which is subject to regulatory approval, is expected to be completed this summer. Eletropaulo serves approximately 5.3 million customers in Sao Paulo state. Through its interest in Brasiliana, AES currently has: -- a 34% economic interest in Eletropaulo; -- a 24% economic interest in Tiete, a 2,650 megawatt hydroelectric power generation business; and -- a 46% economic interest in Uruguaiana, a 639 megawatt gas-fired power plant. AES has a controlling interest in all of these businesses and also owns AES Sul, a regulated electric utility serving approximately one million customers in the state of Rio Grande do Sul in southern Brazil. About the Company AES Corporation -- http://www.aes.com/-- is a global power company. The Company operates in South America, Europe, Africa, Asia and the Caribbean countries. Generating 44,000 megawatts of electricity through 124 power facilities, the Company delivers electricity through 15 distribution companies. AES's Latin America business group is comprised of generation plants and electric utilities in Argentina, Brazil, Chile, Colombia, Dominican Republic, El Salvador, Panama and Venezuela. Fuels include biomass, diesel, coal, gas and hydro. The group also pursues business development activities in the region. AES has been in the region since May 1993, when it acquired the CTSN power plant in Argentina. * * * As reported in the Troubled Company Reporter on May 25, Fitch affirmed The AES Corporation's Issuer Default Rating at 'B+'. Fitch also affirmed and withdrew the ratings for the company's junior convertible debt. Fitch said the rating outlook for all remaining instruments is stable. In March, Standard & Poor's Ratings Services raised its corporate credit rating on diversified energy company The AES Corp. to 'BB-' from 'B+'. S&P said the outlook is stable. As reported in the Troubled Company Reporter on Jan. 11, Moody's affirmed the ratings of The AES Corporation, including its Ba3 Corporate Family Rating and the B1 rating on its senior unsecured debt. Moody's said the rating outlook remains stable. BRASKEM SA: Shareholders Approved Merger with Polialden ------------------------------------------------------- Shareholders of Braskem SA and Polialden approved the merger of the two firms during the Extraordinary Shareholders' Meetings held on May 31. This marked the end of Braskem's corporate integration process as initially envisioned, combining the operations of six companies. "The merger of Polialden was designed to align the interests of all shareholders and will allow shareholders of Polialden that choose to become shareholders of Braskem access to the differentiated benefits offered by Braskem to all of its shareholders, such as 100% tag-along rights in the event of a change of control," said Paul Altit, Vice President of Finances and Investor Relations of Braskem. Before the merger, Braskem owned 100% of Polialden's voting share capital and approximately 63.7% of its total share capital. Commencing as of May 31, Polialden's preferred shareholders can exchange their Polialden shares for Braskem's class A preferred shares, at an exchange ratio of 33.62 of Braskem's class A preferred shares for each lot of 1,000 Polialden shares. This exchange ratio is based on an appraisal report with respect to both companies prepared by PricewaterhouseCoopers Auditores Independentes. To maintain the legally required ratio of Braskem's common and preferred shares, Braskem's shareholders approved the conversion of 2,632,043 class A preferred shares into common shares, as well as the issuance of 7,878,825 class A preferred shares. As a result, Braskem's share capital will increase by BRL105.3 million, and the block of Braskem's shares traded in the market will expand, increasing Braskem's free float to approximately 53%. Minority shareholders of Polialden must exercise their appraisal rights beginning May 31 and until July 1, 2006, if they do not exchange their shares for Braskem's shares. Polialden shareholders that exercise their appraisal rights will receive a cash payment of BRL0.449 per share. As reported in the Troubled Company Reporter on May 18, 2006, Braskem SA and Polialden Petroquimica SA invited their respective shareholders to participate in the Extraordinary General Shareholders' Meetings on May 31, at which the proposed merger of Polialden with and into Braskem was discussed. The proposed merger is consistent with Braskem's commitment to add value for all of its shareholders, in addition to permitting the company to streamline its corporate structure and capture important synergy gains, thereby further improving its competitiveness. About Polialden Polialden Petroquimica SA produces, processes, and markets high density polyethylene and other chemical and petrochemical by- products. About Braskem Braskem -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin American, and is among the three largest Brazilian-owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. * * * As reported in the Troubled Company Reporter on April 10, 2006, Fitch Ratings and Standard& Poor's Ratings Services assigned these ratings to Braskem S.A.: Fitch Ratings Services: -- BB- on the proposed offering of US$200 million senior unsecured perpetual bonds to be issued. Standard & Poor's Ratings Services: -- BB on local- and foreign-currency corporate credit ratings; and -- BB on forthcoming US$200 million perpetual bonds. CEDRO INTERNATIONAL: Proofs of Claim Filing Ends on June 16 ----------------------------------------------------------- Creditors of Cedro International Limited are required to submit particulars of their debts or claims by June 16, 2006, to Manoel Bizarria Guilherme Neto, 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 May 1, 2006. The liquidator can be reached at: Manoel Bizarria Guilherme Neto Avenida Nacoes Unidas Sao Paulo, Brazil GLOBO COMUNICACAO: Net Revenue Reaches BRL1.3B in First Quarter --------------------------------------------------------------- Globo Comunicacao e Participacoes S.A. disclosed financial results for the quarter ended March 31, 2006. Highlights -- Globo's Net Revenue was BRL1.3 billion in 1Q06, 16.3% higher than in 1Q05. -- Globo'sEBITDA reached BRL338.9 million in 1Q06 (26.2% EBITDA margin), increasing 18.0% over 1Q05. -- On March 20, 2006, the Company voluntarily prepaid approximately US$70.0 million of its outstanding bonds. -- On March 24, 2006, Standard & Poor's Rating Services raised the Company's global (foreign and local currency) ratings to BB-. -- On April 20, 2006, Globo issued US$325.0 million in Perpetual Notes and refinanced the Existing Series C Bonds. -- On May 18, 2006, Globo announced an agreement to sell preferred shares and other rights issued by Net Servi‡os. The proceeds were used to partially offset the Distel Loan in an amount of approximately BRL240.0 million. -- On May 19, 2006, Globo announced that it will voluntarily prepay more than US$150.0 million of certain of its outstanding bonds on June 20, 2006. -- EBITDA for the Company Group reached BRL322.8 million in 1Q06 (28.6% of EBITDA margin), increasing 20.9% over 1Q05. Globo Unaudited Consolidated BRL million 1Q05 1Q06 % Chg. Net Revenue 1,114.1 1.295.3 16.3% EBITDA 287.2 338.9 18.0% EBITDA Margin 25.8% 26.2% 38 bps Advertising Market Overview The Brazilian media advertising expenditures (including Yellow & White Pages and Movie Theaters) increased by 17.9% in the first two months of 2006, compared to the same period of 2005, reaching BRL2.2 billion by the end of February 2006. During the same period, the advertising market for broadcast and pay-TV increased 16.2%. Historically, television (including broadcast TV and pay-TV) is the largest advertising medium in Brazil, capturing more advertising revenues than all other media combined. The 2005 full-year advertising expenditures for broadcast and pay-TV was BRL9.9 billion, or 62% of total advertising market expenditures. This percentage remained the same in the first two months of 2006. Relevant and Recent Events Perpetual Notes and the Refinancing of the Existing Series C Bonds on April 10, 2006, Globo issued a private offering of US$325.0 million aggregate principal amount of 9.375% perpetual notes. On April 20, 2006, Globo used the gross proceeds of the offering of the Perpetual Notes to refinance in full its Variable Rate Series C Senior Secured Notes Due 2011. The Perpetual Notes have not been registered under the United States Securities Act of 1933, as amended, nor with the Brazilian Securities and Exchange Commission -- Comissao de Valores Mobiliarios. The Perpetual Notes were sold outside the United States to non-U.S. persons in reliance on Regulation S under the Securities Act and were not offered to the public in Brazil. Prepayment of the Secured Debt On May 18, 2006, Globo announced that it had agreed, together with its controlled subsidiary Globosat Programadora Ltda., to sell to Empresa Brasileira de Telecomunicacoes S.A. or Embratel (a) 200 million preferred shares issued by Net Servicos, representing respectively 8.54% and 5.06% of Net Servicos' preferred capital and total capital, for a price per share equal to the average market price of Net Servicos' preferred shares as quoted on the Sao Paulo Stock Exchange at the closing of the 30 immediately preceding trading sessions; and (b) the right to convert into new shares of Net Servicos certain tax credits assessable by Net Servi‡os as a result of the amortization of a special premium reserve booked by Net Servicos as provided for in Instruction 319/99, as amended, issued by CVM. The Shares were pledged as collateral for a certain loan granted to Distel Holding S.A. The proceeds from the sale of the Shares, approximately BRL240.0 million were applied to partially prepay the Distel Loan. The proceeds of the transaction related to certain tax credits assessable, a total of BRL69.3 million, were deposited on the Brazilian cash collateral account for future prepayment of the outstanding bonds issued by Globo pursuant to the Consolidated Trust Deed dated as of July 20, 2005. On May 19, 2006, Globo announced that it will voluntarily prepay more than US$150 million of certain of its outstanding bonds on June 20, 2006. The funds used for this voluntary prepayment will be obtained from operating cash flow, as well as approximately BRL69.3 million from the transaction related to the sale of the right to convert into new shares of Net Servicos certain tax credits assessable by Net Servicos. The proceeds of the Transaction had been deposited in the Brazilian cash collateral account in accordance with the terms of the Consolidated Trust Deed dated as of July 20, 2005, and related documents underlying such bonds. The Debt Service Reserve Account that is in place for these bonds will not be drawn down and will remain at its maximum amount of approximately US$110 million. Earnings Analysis The Company's net revenue increased BRL181.2 million, reaching BRL1.3 million, when comparing 1Q06 with 1Q05, due to: (i) BRL143.0 million increase due to higher advertising revenue mainly explained by the advertising market growth; (ii) BRL24.3 million increase in Content/Programming revenues, mainly due to the improvement in Pay-TV programming sales; (iii) BRL19.7 million increase in "Others" category, mainly due to an increase in printing activities, magazine subscription fees, sales of books and other; and (iv) BRL5.8 million reduction at Net Servicos, related to the lower ownership interest held by Globo, from 17.24% in 1Q05 to 13.04% in 1Q06, and according to Net Servicos' results as reported on its 1Q06 financial statements. Cost of sales The Company's cost of sales, excluding depreciation, increased BRL93.3 million when comparing 1Q06 with 1Q05. The cost of sales reported in the financial statements includes depreciation of BRL48.3 million in 1Q06 and BRL51.7 million in 1Q05. The increase on the Company's cost of sales, excluding depreciation, was due to: (i) BRL48.7 million increase mainly explained by higher costs of exhibition, transmission rights and copyright; (ii) BRL44.5 million increase related to a higher number of employees associated with operating activities and annual labor union adjustments; (iii) BRL1.9 million reduction at Net Servicos, related to the lower ownership interest held by Globo, and according to Net Servicos' results as reported on its 1Q06 financial statements. Selling Expenses The Company's selling expenses increased BRL20.9 million when comparing 1Q06 with 1Q05, due to: (i) BRL17.5 million increase in expenses as a result of advertising sales growth; and (ii) BRL2.1 million increase at Net Servicos, related to the lower ownership interest held by Globo, and according to Net Servicos' results as reported on its 1Q06 financial statements. General and Administrative Expenses The Company's general and administrative expenses increased BRL13.2 million when comparing 1Q06 with 1Q05, due to: (i) BRL2.8 million increase in legal expenses; (ii) BRL11.1 million increase mainly in consulting, Information Technology and other services associated with business infrastructure; and (iii) BRL0.7 million reduction at Net Servicos, related to the lower ownership interest held by Globo, and according to Net Servicos' results as reported on its 1Q06 financial statements. Other Operating Expenses The Company's operating expenses increased BRL2.1 million when comparing 1Q06 with 1Q05 due to: (i) BRL2.6 million increase in the expense mainly related to contingent liabilities and provision for losses that occurred in 1Q06; and (ii) BRL0.8 million reduction at Net Servicos, related to the lower ownership interest held by Globo in Net Servicos, and according to Net Servicos' results as reported on its 1Q06 financial statements. EBITDA The Company's EBITDA increased BRL51.7 million, reaching BRL338.9 million, when comparing 1Q06 with 1Q05, due to the drivers explained before. The Company's net financial results increased BRL266.6 million, reaching an income of BRL67.8 million when comparing 1Q06 with 1Q05. The impact on the Company's net financial results was due to: (i) Interest income increased BRL6.3 million mainly due to the higher cash and cash equivalent balance in 2006; (ii) Interest expenses decreased BRL138.5 million mostly due to a lower debt balance in 2006; and (iii) Monetary and exchange rate variation result decreased BRL123.9 million mainly due to a 7.2% appreciation of the Brazilian Real in relation to the US dollar in 1Q06 and a depreciation of 0.4% of the Brazilian Real in relation to the US dollar in 1Q05. Equity and Provision for Losses on Investments The Company's equity gain decreased BRL1.5 million, reaching a loss of BRL1.1 million when comparing 1Q06 with 1Q05, mainly due to negative impact in Sigla's and Seguradora Roma's shareholders equity. Amortization of Goodwill The Company's expense related to amortization of goodwill increased BRL33.1 million reaching BRL151.6 million when comparing 1Q06 with 1Q05, mainly due to: (i) BRL112.9 million amortization resulting from the merger of TV Globo recognized in 1Q06; (ii) BRL74.7 million one time amortization of goodwill generated in 1Q05 related to the acquisition of the remaining shares of UGB from other shareholders; and (iii) BRL2.0 million reduction related to the lower ownership interest held by Globo in 1Q05 in Net Servi‡os. Non-Operating Income The Company's non-operating income totaled BRL13.0 million in 1Q06 compared to BRL597.7 million in 1Q05, mainly due to the sale of ownership interest related to Net Servicos recorded in 1Q05. Income Tax and Social Contribution Expense The Company's income tax and social contribution expense amounted to BRL31.6 million in 1Q06 and BRL39.0 million in 1Q05. This impact was mainly due to the lower deferred income tax and social contribution expenses recorded in 1Q06 compared to 1Q05. Net Income The Company's net income decreased BRL290.4 million, reaching an income of BRL167.1 million, when comparing 1Q06 to 1Q05, mainly due to lower non-operating income related to the sale of interest of Net Servicos that occurred in 1Q05, offset by the positive financial income results due to monetary and exchange rate variation and lower debt balance. Additions to Property, Plant and Equipment The Company's additions to property, plant and equipment increased BRL 32.3 million, reaching BRL47.5 million, when comparing 1Q06 to 1Q05. The cash and cash equivalents position for this group of companies was BRL1.10 billion as of March 31, 2006. Net revenues for the Company Group amounted to BRL1.1 billion in 1Q06 (16.8% YOY growth). EBITDA for the Company Group reached BRL322.8 million in 1Q06 (28.6% of EBITDA margin). Information Regarding Debt Obligations Since the majority of debt obligations are US dollar- denominated, the following tables present the Company's debt obligations in US dollars. On March 20, 2006, Globo voluntarily prepaid approximately US$70.0 million of its outstanding bonds. As of March 31, 2006, Globo's total debt was US$1.1 billion, a decrease of US$36.3 million compared to US$1.2 billion as of December 31, 2005. This decrease is mainly due to the result of the March 20, 2006 voluntary prepayment, partially offset by the appreciation of the Brazilian Real against the US dollar applied to Real-denominated debt obligations. As of March 31, 2006, total debt for the Company Group was US$1.07 billion a decrease of US$36.0 million compared to US$1.1 billion as of December 31, 2005. About Globo Globo Comunicacao e Participacoes S.A. was established from the merger of TV Globo Ltda. and Globo Comunicacoes e Participacoes S.A. -- Globopar. * * * As reported in Troubled Company Reporter on Feb. 9, 2006, Moody's Investors Service withdrew the B1 foreign currency corporate family rating of Globo Comunicacao e Participacoes S.A. The ratings have been withdrawn as Moody's no longer maintains foreign currency corporate family ratings and for business reasons. * * * As reported in Troubled Company Reporter on March 28, 2006, Standard & Poor's Rating Services raised its foreign and local currency corporate credit ratings on Brazilian media group Globo Comunicacoes e Participacoes fka Globopar SA to 'BB-' from 'B+'. S&P said the outlook on the ratings is stable. On Oct. 19, 2005, Standard & Poor's Rating Services raised its corporate credit ratings on Brazilian media company TV Globo Ltda. to 'B+' from 'CCC-'. The rating was removed from CreditWatch Positive, where it was placed on July 21, 2005. S&P said the outlook is stable. Globopar and TV Globo are part of Globo Organizations, Brazil's largest media group. MOGNO CORP: Liquidator Stops Accepting Claims After June 16 ----------------------------------------------------------- Creditors of Mogno Corporation are required to submit particulars of their debts or claims on by June 16, 2006, to the company's appointed liquidator -- Manoel Bizarria Guilherme Neto. Failure to do so will exclude them from receiving the benefit of any distribution that the company will make. Mogno Corporation started liquidating assets on May 1, 2006. The liquidator can be reached at: Manoel Bizarria Guilherme Neto Avenida Nacoes Unidas, 7221 Sao Paulo, Brazil SABESP: Appeals Filing Halts Employees' Planned Strike ------------------------------------------------------ A strike being threatened against SABESP aka Companhia de Saneamento Basico do Estado de Sao Paulo has been postponed, a spokesperson of Sintaema -- a state water, waste and environment workers union -- informed Business News Americas. As reported in the Troubled Company Reporter on June 1, 2006, Sintaema threatened to hold demonstrations against Sabesp starting May 31 until company officials approve a 15% salary increase, rejecting a 4.63% salary raise and a promised November bonus Sabesp offered for this year and demanding the distribution of company profits as well as an end to regional salary disparities. BNamericas relates that the union members accepted during a Sintaema meeting on May 30 Sabesp's proposal on salary adjustment as well as the conditions that extend a job guarantee for 98% of firm employees, after daylong talks between the company and the union officials. According to BNamericas, Sabesp countered the union's threat with a disclosure that it plans to file an appeal to the regional labor court. The spokesperson was quoted by BNamericas as saying, "Faced with the danger of losing the benefits that Sabesp offered, the workers decided to accept the raise, which is less than they hoped for, and called off the strike." * * * As reported in the Troubled Company Reporter on Oct. 3, 2005, Standard & Poor's Ratings Services assigned a 'BB-/Stable/--' corporate credit rating to Companhia de Saneamento Basico do Estado de Sao Paulo aka Sabesp. * BRAZIL: Central Bank Lowers Benchmark Lending Rate to 15.25% -------------------------------------------------------------- The Financial Times reports that Brazil's central bank lowered on Wednesday its benchmark-lending rate to 15.25% from 15.75%. The eight lending rate cut is designed to help bolster the country's economy. Inflation is Brazil is under control and with lowering of interest rates, the country hopes to revive its economy that is considered biggest in Latin America, FT says, citing Reuters. According to the government, statistics show that the economy grew 3.4% in the first quarter when compared to the same period in 2005, FT relates. Analysts are quoted by the FT saying that the central bank will lower rates more cautiously in the coming months in anticipation of the U.S. Federal Reserves raising of interest rates. "Now the central bank is basically going to depend on the Fed," Massaru Nakayasu, chief economist at Banco de Tokyo Mitsubishi in Sao Paulo told Reuters. "If there is more monetary tightening in the United States, the rate cuts here are going to be smaller in the future." * * * Fitch Ratings assigned these ratings on Brazil: Rating Rating Date ------ ----------- Country Ceiling BB- Nov. 18, 2004 Long Term IDR BB- Dec. 14, 2005 Short Term IDR B Dec. 14, 2005 Local Currency Long Term Issuer Default Rating BB- Dec. 14, 2005 * BRAZIL: Central Bank Holds First Currency Swap Auction -------------------------------------------------------- Brazil's central bank held Tuesday its first financial currency swap auction in almost two years, the Financial Times reports. The bank sold contracts valued at US$400 million. A swap is a proxy for selling dollars. Analysts have already anticipated the bank to sell the swaps if the real's value continues to fall. However, analysts did not expect the bank to step in as early as it did, FT relates. The FT says that the bank's move was made to clear the ground for the cut in interest rates on Wednesday. "A very weak real could put it in the position of either not being able to cut interest rates or, if it did cut them, of weakening its credibility," Ricardo Amorim at WestLB in New York told FT. * * * Fitch Ratings assigns these ratings on Brazil: Rating Rating Date ------ ----------- Country Ceiling BB- Nov. 18, 2004 Long Term IDR BB- Dec. 14, 2005 Short Term IDR B Dec. 14, 2005 Local Currency Long Term Issuer Default Rating BB- Dec. 14, 2005 * BRAZIL: Launches Negotiations on Trade Alliance with Guatemala ---------------------------------------------------------------- The governments of Guatemala and Brazil began bilateral talks which, according to Guatemalan Economy Minister Marcio Cuevas, are aimed at setting off both of the countries' trade exchange toward future negotiations, Prensa Latina reports. The talks, says Prensa Latina, will focus on Brazilian cooperation with Guatemala in energy as well as in production of renewable fuels. Brazil will seek for possibility in increasing investments in Guatemala, sighting on the development of a bilateral free trade accord, according to Prensa Latina. Guatemala is planning to reach strategic alliances with Brazil in different economic sectors during the negotiations, Prensa Latina relates. Minister Cuevas told Prensa Latina that the agenda includes: -- ministerial encounters, and -- seminars on business opportunities, promotion of exports and investments. Prensa Latina states that Luiz Fernando Furlan -- the minister of development, industry and trade -- heads the Brazilian mission composed of: -- a representative of the energy ministry, and -- 50 entrepreneurs. * * * Fitch Ratings assigned these ratings on Guatemala: Rating Rating Date ------ ----------- Country Ceiling BB+ Feb. 22, 2006 Long Term IDR BB+ Feb. 22, 2006 Short Term IDR B Feb. 22, 2006 Local Currency Long Term Issuer Default Rating BB+ Feb. 22, 2006 Fitch also rated Guatemala's senior unsecured bonds: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- Aug. 3, 2007 US$150,000,000 8.5% BB+ Nov. 8, 2011 US$325,000,000 10.25% BB+ Aug. 1, 2013 US$300,000,000 9.25% BB+ Oct. 6, 2034 US$330,000,000 8.125% BB+ * * * Fitch Ratings assigned these ratings on Brazil: Rating Rating Date ------ ----------- Country Ceiling BB- Nov. 18, 2004 Long Term IDR BB- Dec. 14, 2005 Short Term IDR B Dec. 14, 2005 Local Currency Long Term Issuer Default Rating =========================== C A Y M A N I S L A N D S =========================== CONISTON LIMITED: Creditors Must File Proofs of Claim by June 20 ---------------------------------------------------------------- Creditors of Coniston Limited are required to prove their claims to Janet Crawshaw and Jamal Young, the company's liquidators, 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, 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 May 1, 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 CONROE LIMITED: Creditors Have Until June 20 to Present Claims -------------------------------------------------------------- Creditors of Conroe Limited, which is being voluntarily wound up, are required to present claims by June 20, 2006, to Janet Crawshaw and Jamal Young, 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. Conroe Limited began liquidating assets on May 1, 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 MEDTRONIC EUROPE: Sets June 16 as Last Day for Claims Filing ------------------------------------------------------------ Creditors of Medtronic Europe Capital Corp., which is being voluntarily wound up, are required by June 16, 2006, to present claims to Linburgh Martin and Jeff Arkley, the company's liquidators. Medtronic Europe started liquidating assets on March 10, 2006. Creditors are required to present claims personally or through their solicitors at the time and place that the liquidator will specify. Failure to present claims would mean exclusion from the benefit of any distribution that the company will make. 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 MEDTRONIC JAPAN: Sets June 16 as Proofs of Claim Filing Deadline ---------------------------------------------------------------- Creditors of Medtronic Japan Capital Corp., which is being voluntarily wound up, are required by June 16, 2006, to present proofs of claim to Linburgh Martin and Jeff Arkley, the company's liquidators. Medtronic Japan started liquidating assets on March 10, 2006. Creditors are required to present proofs of claim personally or through their solicitors at the time and place that the liquidator will specify. Failure to present claims would mean exclusion from the benefit of any distribution that the company will make. 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 MEDTRONIC U.K.: Proofs of Claim Filing Deadline Is on June 16 ------------------------------------------------------------- Creditors of Medtronic U.K. Capital Corp. are required to submit particulars of their debts or claims by June 16, 2006, to the company's appointed liquidators, Linburgh Martin and Jeff Arkley. Failure to do so will exclude them from receiving the benefit of any distribution that the company will make. Medtronic U.K. started liquidating assets on March 10, 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 OKANAGAN LIMITED: Proofs of Claim Filing Will End on June 20 ------------------------------------------------------------ Creditors of Okanagan Limited are required to submit particulars of their debts or claims by June 20, 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. Okanagan Limited started liquidating assets on May 1, 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 SIMCOE LIMITED: Filing of Proofs of Claim Will End on June 20 ------------------------------------------------------------- Creditors of Simcoe Limited, which is being voluntarily wound up, are required to present proofs of claim by June 20, 2006, to Janet Crawshaw and Jamal Young, the company's liquidators. Simcoe Limited started liquidating assets on May 1, 2006. Creditors must send their full names, addresses, descriptions and the full particulars of their debts or claims, and the names and addresses of their solicitors, if any, to the liquidator. Failure to do so will exclude them from receiving the benefit of any distribution that the company will make. The 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 WHITE STAR: Sets July 27 as Last Day for Filing Proofs of Claim --------------------------------------------------------------- Creditors of White Star Investment Company, which is being voluntarily wound up, are required to present proofs of claim by July 27, 2006, to Paolo Giacomelli of MBT Trustees Ltd., the company's liquidator. Creditors must 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. The liquidator can be reached at: Paolo Giacomelli MBT Trustees Ltd. P.O. Box 30622, SMB Grand Cayman, Cayman Islands Tel: (345) 945-8859 Fax: (345) 949-9793/4 ========= C H I L E ========= AES CORP: Forms Joint Venture With AgCert to Reduce Gas Emission ---------------------------------------------------------------- The AES Corporation and AgCert International plc disclosed the formation of AES AgriVerde, a joint venture designed to deploy AgCert's greenhouse gas emission reduction technology in selected countries in Asia, Europe and North Africa. Under the terms of the relevant agreements, AES will maintain a majority interest in the joint venture and plans to invest approximately US$325 million into the joint venture over the next five years. In addition, AES has invested approximately EUR40 million to acquire an approximate nine percent equity interest in AgCert. By 2012, AES AgriVerde intends to create an annual production volume of 20 million tons of greenhouse gas emission reductions through the reduction of methane -- a potent greenhouse gas-emissions created by agricultural and animal farm waste. AES AgriVerde will utilize a technology process developed by AgCert to capture methane from agricultural and animal waste products. AES AgriVerde will install systems to capture this gas and either destroy it or use it to generate electricity or heat, reducing net greenhouse gas emissions from the manure management process by approximately 95%. This application reduces emissions by preventing the animal sewage and other agricultural waste from being disposed in large open lagoons where it would otherwise decay, releasing large volumes of methane. "AES is committed to helping address climate change issues as part of our broader alternative energy strategy," said William Luraschi, AES Executive Vice President for Business Development, and the head of AES' recently announced alternative energy business. "We believe that greenhouse gas emissions will continue to face increasing regulation, and expect that offsets will remain a significant component of those regulations. This methodology not only mitigates important environmental impacts, it enhances our ability to meet new power needs." In April, AES announced the formation of its alternative energy group and plans to invest approximately US$1 billion over the next three years in this sector. Since October 2005, the company has committed to approximately US$100 million in investments that will generate over 17 million tons of emission reductions through 2012. "Methane is a significant contributor to climate change and is 21 times more potent than CO2," said Bill Lyons, AES Managing Director of Climate Change and Technology Development within AES's alternative energy group. "Agricultural processes provide a low cost, high volume method for producing offsets. In addition to its positive impacts on climate change, this mitigation method has numerous local health benefits including, cleaner drinking water and soil as well as reduced exposure to mosquito-borne diseases. We are targeting large market opportunities with this joint venture and are excited to partner with a quality company like AgCert." "We are very excited to be expanding upon our strategic relationship with AES, leveraging our technology and know how to build a pipeline of incremental emission reductions. The joint venture with AES allows AgCert to rapidly deploy our technologies in areas where AES has strong presence and permits AgCert to continue to execute our strategy in all other parts of the globe. It also provides the option for AgCert to invest further in the JV," said Bill Haskell, CEO of AgCert. About AgCert AgCert International plc was founded in 2002 to produce and sell reductions in greenhouse gas emissions from agricultural sources on an industrial scale. These offsets are intended to satisfy the requirements of the Kyoto Protocol and be capable of being traded on the European cap and trade system, the European Union Emissions Trading Scheme. AgCert has significant expertise in the use of United Nations approved methodologies for the production of offsets in the agricultural sector from animal waste. More information about AgCert's Greenhouse Gas Reduction projects can be found at http://www.agcert.com About AES Corp. AES Corporation -- http://www.aes.com/-- is a global power company. The Company operates in South America, Europe, Africa, Asia and the Caribbean countries. Generating 44,000 megawatts of electricity through 124 power facilities, the Company delivers electricity through 15 distribution companies. AES's Latin America business group is comprised of generation plants and electric utilities in Argentina, Brazil, Chile, Colombia, Dominican Republic, El Salvador, Panama and Venezuela. Fuels include biomass, diesel, coal, gas and hydro. The group also pursues business development activities in the region. AES has been in the region since May 1993, when it acquired the CTSN power plant in Argentina. * * * As reported in the Troubled Company Reporter on May 24, 2006, Fitch affirmed The AES Corporation's Issuer Default Rating at 'B+'. Fitch also affirms and withdraws the ratings for the company's junior convertible debt. The Rating Outlook for all remaining instruments is Stable. COEUR D'ALENE: Earns US$14.3 Mil. in Three Months Ended Mar. 31 --------------------------------------------------------------- Coeur D'Alene Mines Corporation reported a US$14,338,000 of net income on US$44,854,000 of revenues for the three months ended March 31, 2006. At March 31, 2006, the Company's balance sheet showed US$749,569,000 in total assets and US$247,482,000 in total liabilities aand stockholders' equity of US$502,087,000. Full-text copies of the Company's financial statements for the quarter ended March 31, 2006, is available at no charge at: http://ResearchArchives.com/t/s?a2c Coeur D'Alene Mines Corporation -- http://www.coeur.com/-- is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The Company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia and Australia. Coeur D'Alene Mines Corp.'s 1.25% Convertible Senior Notes due 2024 carry Standard & Poor's B- rating. =================== C O S T A R I C A =================== * COSTA RICA: Agricultural Exports Up 15.2% in First Quarter ------------------------------------------------------------ Costa Rica's agricultural exports increased 15.2% in the first four months of 2006 compared to the same quarter in 2005, Fresh Plaza reports. According to Fresh Plaza, the increase in exports were mainly in the pineapple and banana products. Fresh Plaza relates that pineapple exports increased 50.1% to US$2.574 million. According to Fresh Plaza, pineapple exports accounted for 5.3% of the total exports, with major destinations: -- United States, -- The Netherlands, -- Belgium, -- Italy, and -- Germany. Banana exports, on the other hand, increased 17.4%, Fresh Plaza states. It is accountable for 7.2% of total exports. The product is mainly shipped to the US, Germany and the UK. * * * 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 LTD: Board Endorses Inco Offer Over Xstrata's ---------------------------------------------------------- Falconbridge Limited disclosed that its Board of Directors has conducted its assessment of the offer by Xstrata plc to acquire the outstanding common shares of Falconbridge. The assessment was completed with the assistance of external legal and financial advisors and focused on both the financial and non-financial aspects of the offer from Xstrata. Falconbridge's Board has decided to continue to endorse the Inco offer and recommends that Falconbridge shareholders tender their shares to the Inco offer. Given the conditional nature of Xstrata's offer, including both the requirement for Xstrata to receive the approval of its own shareholders, which will not be obtained until the end of June at the earliest, and Investment Canada approval, significant conditions have yet to be satisfied that would permit the offer to proceed. In addition, though Xstrata's bid is expressed to be for all Falconbridge shares, Xstrata has reserved the right to take up any number of shares tendered to it. When combined with its current holding of 20% of Falconbridge, the acquisition of a further small number of shares may well result in Xstrata acquiring effective control of Falconbridge without acquiring all of the shares. The Falconbridge Board of Directors determined that Xstrata's offer is not a "superior proposal" under the terms of the Support Agreement entered into with Inco and will reaffirm its recommendation of the Inco bid in a Directors Circular responding to the Xstrata offer. The Directors Circular will be sent to shareholders in the near future. "Clearly, one of the strengths of the Inco offer is that it gives Falconbridge shareholders almost 50% participation in the growth of the New Inco, a company that would have one the best portfolios of development projects in the base metals industry at a time when the fundamental outlook is so positive," said Derek Pannell, Falconbridge's Chief Executive Officer. The Board remains committed to pursue the combination proposed by Inco and will be seeking the outstanding regulatory approvals from the U.S. Department of Justice and the European Commission. 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. FALCONBRIDGE LTD: Inco Venture Identifies US$550M in Synergies -------------------------------------------------------------- Falconbridge Limited disclosed that Inco Limited indicated that operations personnel of both companies have now jointly identified the potential to realize estimated average annual pre-tax operating and corporate synergies of approximately US$550 million, an increase of US$200 million from the estimated synergies at the time of the announcement of the Falconbridge transaction. This increase in the synergies estimate is attributable to developed improvements in the Inco-Falconbridge integration plan and to changes in commodity price assumptions as a result of the improved commodity market outlook since October 2005. The net present value of the estimated annual average pre-tax run-rate operating and corporate synergies of US$550 million, using a 7% discount rate, is approximately US$3.5 billion on an after-tax basis. 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. ===================== E L S A L V A D O R ===================== * EL SALVADOR: Okays Revision of Free Trade Accord with Panama -------------------------------------------------------------- El Salvador agreed on a procedure with Panama's Commerce and Industry Ministry to revise the 2003 bilateral free trade agreement Xinhua News reports. Xinhua relates that Minister Alejandro Ferrer of Panama and Gerardo Sol Mixto -- El Salvador's ambassador -- signed the deal, which established a zero tariff for the first US$250,000 worth of all cheese products traded per year, and a variable system of tariffs for cheese products that go beyond the quota. According to Xinhua, the accord is yet to be ratified by the legal authorities in both Panama and El Salvador. Producers of cheese will be able to increase their exports and Panam will continue to promote trade through this kind of deals, Minister Ferrer tld Xinhua. * * * 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 * * * 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 * EL SALVADOR: Trade Talks with Canada to Conclude by Yearend ------------------------------------------------------------- Talks on the completion of the trade agreement between Guatemala, Canada, El Salvador, Honduras and Nicaragua will conclude at the end of 2006, Mauricio Rosales Rivera, the ambassador of El Salvador, told the Embassy. Ambassador Rivera informed the Embassy, "We are hopeful that negotiations will finish this year." According to him, the coming seven months are a break or make period. To prolong talks into 2007 would be a major disappointment, the ambassador was quoted by the Embassy as saying. "They will not suspend and start again, and so forth. This is it." The Embassy recalls that the countries' representatives met on May 23 this year -- the first meeting since the 10th round of official talks in February 2004. The representatives are scheduled to meet again in July. The alliance was called the e Canada-Central America Four aka CA4, Embassy states. It is a treaty to enhance the flow of Canadian goods and investment into Central America. According to the Embassy, the dialogue was launched in 2001 in Canada by then-Liberal trade minister Pierre Pettigrew. However, it was halted when the Central American nations turned their attention to reaching a trade pact with the United States instead. Embassy states that an accord with Canada has now been pushed, but Mr. Rosales warns that political will could extinguish it unless negotiators act quickly to finalize things. Mr. Rosales revealed to Embassy that Canada's demands for market access are much tougher than what the US had been asking. The ambassador, however, declined to reveal them to protect the confidential bargaining positions of each nation. Mr. Rosales is against opening up of the clandestine talks and the publication of drafting texts, as what the human rights, labor and environmental groups in Latin America and Canada are calling for, Embassy reports. * * * Fitch Ratings assigned these ratings on Guatemala: Rating Rating Date ------ ----------- Country Ceiling BB+ Feb. 22, 2006 Long Term IDR BB+ Feb. 22, 2006 Short Term IDR B Feb. 22, 2006 Local Currency Long Term Issuer Default Rating BB+ Feb. 22, 2006 Fitch also rated Guatemala's senior unsecured bonds: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- Aug. 3, 2007 US$150,000,000 8.5% BB+ Nov. 8, 2011 US$325,000,000 10.25% BB+ Aug. 1, 2013 US$300,000,000 9.25% BB+ Oct. 6, 2034 US$330,000,000 8.125% BB+ * * * 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 * * * Moody's Investor Service assigned these ratings to Nicaragua: Rating Rating Date ------ ----------- Long Term Caa1 June 30, 2003 Senior Unsecured Debt B3 June 30, 2003 * * * 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 ================= G U A T E M A L A ================= * GUATEMALA: Launches Negotiations on Trade Alliance with Brazil ---------------------------------------------------------------- The governments of Guatemala and Brazil began bilateral talks which, according to Guatemalan Economy Minister Marcio Cuevas, are aimed at setting off both of the countries' trade exchange toward future negotiations, Prensa Latina reports. The talks, says Prensa Latina, will focus on Brazilian cooperation with Guatemala in energy as well as in production of renewable fuels. Brazil will seek for possibility in increasing investments in Guatemala, sighting on the development of a bilateral free trade accord, according to Prensa Latina. Guatemala is planning to reach strategic alliances with Brazil in different economic sectors during the negotiations, Prensa Latina relates. Minister Cuevas told Prensa Latina that the agenda includes: -- ministerial encounters, and -- seminars on business opportunities, promotion of exports and investments. Prensa Latina states that Luiz Fernando Furlan -- the minister of development, industry and trade -- heads the Brazilian mission composed of: -- a representative of the energy ministry, and -- 50 entrepreneurs. * * * Fitch Ratings assigned these ratings on Guatemala: Rating Rating Date ------ ----------- Country Ceiling BB+ Feb. 22, 2006 Long Term IDR BB+ Feb. 22, 2006 Short Term IDR B Feb. 22, 2006 Local Currency Long Term Issuer Default Rating BB+ Feb. 22, 2006 Fitch also rated Guatemala's senior unsecured bonds: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- Aug. 3, 2007 US$150,000,000 8.5% BB+ Nov. 8, 2011 US$325,000,000 10.25% BB+ Aug. 1, 2013 US$300,000,000 9.25% BB+ Oct. 6, 2034 US$330,000,000 8.125% BB+ * * * Fitch Ratings assigned these ratings on Brazil: Rating Rating Date ------ ----------- Country Ceiling BB- Nov. 18, 2004 Long Term IDR BB- Dec. 14, 2005 Short Term IDR B Dec. 14, 2005 Local Currency Long Term Issuer Default Rating * GUATEMALA: Trade Talks with Canada Set to Conclude by Yearend --------------------------------------------------------------- Talks on the completion of the trade agreement between Guatemala, Canada, El Salvador, Honduras and Nicaragua will conclude at the end of 2006, Mauricio Rosales Rivera, the ambassador of El Salvador, told the Embassy. Ambassador Rivera informed the Embassy, "We are hopeful that negotiations will finish this year." According to him, the coming seven months are a break or make period. To prolong talks into 2007 would be a major disappointment, the ambassador was quoted by the Embassy as saying. "They will not suspend and start again, and so forth. This is it." The Embassy recalls that the countries' representatives met on May 23 this year -- the first meeting since the 10th round of official talks in February 2004. The representatives are scheduled to meet again in July. The alliance was called the e Canada-Central America Four aka CA4, Embassy states. It is a treaty to enhance the flow of Canadian goods and investment into Central America. According to the Embassy, the dialogue was launched in 2001 in Canada by then-Liberal trade minister Pierre Pettigrew. However, it was halted when the Central American nations turned their attention to reaching a trade pact with the United States instead. Embassy states that an accord with Canada has now been pushed, but Mr. Rosales warns that political will could extinguish it unless negotiators act quickly to finalize things. Mr. Rosales revealed to Embassy that Canada's demands for market access are much tougher than what the US had been asking. The ambassador, however, declined to reveal them to protect the confidential bargaining positions of each nation. Mr. Rosales is against opening up of the clandestine talks and the publication of drafting texts, as what the human rights, labor and environmental groups in Latin America and Canada are calling for, Embassy reports. * * * Fitch Ratings assigned these ratings on Guatemala: Rating Rating Date ------ ----------- Country Ceiling BB+ Feb. 22, 2006 Long Term IDR BB+ Feb. 22, 2006 Short Term IDR B Feb. 22, 2006 Local Currency Long Term Issuer Default Rating BB+ Feb. 22, 2006 Fitch also rated Guatemala's senior unsecured bonds: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- Aug. 3, 2007 US$150,000,000 8.5% BB+ Nov. 8, 2011 US$325,000,000 10.25% BB+ Aug. 1, 2013 US$300,000,000 9.25% BB+ Oct. 6, 2034 US$330,000,000 8.125% BB+ * * * 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 * * * Moody's Investor Service assigned these ratings to Nicaragua: Rating Rating Date ------ ----------- Long Term Caa1 June 30, 2003 Senior Unsecured Debt B3 June 30, 2003 * * * 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 ========= H A I T I ========= * HAITI: Parliament Approves Program on Economic Stabilization -------------------------------------------------------------- The two parliamentary chambers of Haiti have approved a program presented by Prime Minister Jacques Edouard Alexis to stabilize the country's economy, Prensa Latina reports. Prensa Latina states that the Senate and the Lower Chamber unanimously ratified Mr. Alexis, who is newly appointed by President Rene Preval. According to Prensa Latina, the legislature acquiesced on the need to implement the proposal. Prensa Latina relates that the team up between President Preval and Mr. Alexis will focus on creating the institutions needed to achieve stability in the nation and generate new sources of employment. The new administration is faced with extracting the country from abject poverty, high violence rates and serious consequences left by the AIDS epidemic, Prensa Latina states. Prensa Latina adds that the funds for carrying out the stabilization have been held up by the international community, mainly by the United States. The funds would be released if the domestic crisis ends. This, however, may be resolved as President Preval is supported by the majority of citizens who believe in his capability in improving the quality of life in Haiti. * * * As reported in the Troubled Company Reporter on April 12, 2006, president-elect Preval appealed for urgent international help to spur development in the Western Hemisphere's poorest country and called on all Haitians to join in a national dialogue to promote peace, democracy and stability. "Poverty, widespread unemployment, the state of dilapidation of basic infrastructures that are necessary for development, chronic insecurity - these are all the major challenges to be faced by the next government," President Preval was quoted by the Associated Press as saying. President Preval explained that increased international assistance is "indispensable" to Haiti's economic recovery, to create conditions for investment and job creation, to improve social services, and to reform democratic institutions including parliament, municipalities, the judicial system, and the national police, the AP relates. =============== H O N D U R A S =============== * HONDURAS: Trade Talks with Canada Set to Conclude by Yearend -------------------------------------------------------------- Talks on the completion of the trade agreement between Guatemala, Canada, El Salvador, Honduras and Nicaragua will conclude at the end of 2006, Mauricio Rosales Rivera, the ambassador of El Salvador, told the Embassy. Ambassador Rivera informed the Embassy, "We are hopeful that negotiations will finish this year." According to him, the coming seven months are a break or make period. To prolong talks into 2007 would be a major disappointment, the ambassador was quoted by the Embassy as saying. "They will not suspend and start again, and so forth. This is it." The Embassy recalls that the countries' representatives met on May 23 this year -- the first meeting since the 10th round of official talks in February 2004. The representatives are scheduled to meet again in July. The alliance was called the e Canada-Central America Four aka CA4, Embassy states. It is a treaty to enhance the flow of Canadian goods and investment into Central America. According to the Embassy, the dialogue was launched in 2001 in Canada by then-Liberal trade minister Pierre Pettigrew. However, it was halted when the Central American nations turned their attention to reaching a trade pact with the United States instead. Embassy states that an accord with Canada has now been pushed, but Mr. Rosales warns that political will could extinguish it unless negotiators act quickly to finalize things. Mr. Rosales revealed to Embassy that Canada's demands for market access are much tougher than what the US had been asking. The ambassador, however, declined to reveal them to protect the confidential bargaining positions of each nation. Mr. Rosales is against opening up of the clandestine talks and the publication of drafting texts, as what the human rights, labor and environmental groups in Latin America and Canada are calling for, Embassy reports. * * * Fitch Ratings assigned these ratings on Guatemala: Rating Rating Date ------ ----------- Country Ceiling BB+ Feb. 22, 2006 Long Term IDR BB+ Feb. 22, 2006 Short Term IDR B Feb. 22, 2006 Local Currency Long Term Issuer Default Rating BB+ Feb. 22, 2006 Fitch also rated Guatemala's senior unsecured bonds: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- Aug. 3, 2007 US$150,000,000 8.5% BB+ Nov. 8, 2011 US$325,000,000 10.25% BB+ Aug. 1, 2013 US$300,000,000 9.25% BB+ Oct. 6, 2034 US$330,000,000 8.125% BB+ * * * 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 * * * Moody's Investor Service assigned these ratings to Nicaragua: Rating Rating Date ------ ----------- Long Term Caa1 June 30, 2003 Senior Unsecured Debt B3 June 30, 2003 * * * 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: Brings NRG Takeover Bid Dispute to Delaware Court -------------------------------------------------------------- Mirant Corporation sought a court order in Delaware directing NRG Energy Inc. not to obstruct its unsolicited takeover bid. Mirant, according to the Associated Press, claimed that the New Jersey based energy producer is unfairly rejecting its nearly US$8 billion takeover bid by using a "transaction ploy" to turn aside the offer by alleging that Mirant is using confidential information from NRG's former financial adviser. In the lawsuit, Sophia Pearson of Bloomberg News reports that Mirant also accused NRG directors of breaching their fiduciary duties to stockholders by not considering the offer. Mirant is asking a judge to declare that it isn't barred from attempting the takeover, and that NRG cannot rely on the alleged breach of confidentiality as the sole basis to reject the offer, the Bloomberg News said. As reported in the Troubled Company Reporter on May 31, 2006, Mirant made a proposal to acquire NRG at a premium of approximately 33% to NRG's share price as of May 30, 2006. The proposal would be immediately accretive to the pro forma free cash flow per share of Mirant. Mirant received a financing commitment from JPMorgan of approximately US$11.5 billion for the transaction. Mirant said that NRG flatly rejected the proposal without engaging in any discussions. Mirant continues to believe that the proposal creates significant value for the owners of both companies and has decided to make its proposal public in a letter to NRG's board of directors. In a press statement covered by the Troubled Company Reporter on May 31, 2006, NRG said it rejected Mirant's hostile offer and declined to enter into talks because the proposal undervalues NRG. About NRG Energy Headquartered in Princeton, New Jersey, NRG Energy, Inc. -- http://www.nrgenergy.com/-- currently owns and operates a diverse portfolio of power-generating facilities, primarily in the Northeast, South Central and Western regions of the United States. Its operations include baseload, intermediate, peaking, and cogeneration facilities, thermal energy production and energy resource recovery facilities. NRG also has ownership interests in generating facilities in Australia and Germany. About Mirant 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 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 Jan. 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. At Dec. 2, 2005, Moody's Investors Service assigned a B1 long- term corporate family rating to Mirant Corp. ================= N I C A R A G U A ================= * NICARAGUA: Trade Talks with Canada Set to Conclude by Yearend --------------------------------------------------------------- Talks on the completion of the trade agreement between Guatemala, Canada, El Salvador, Honduras and Nicaragua will conclude at the end of 2006, Mauricio Rosales Rivera, the ambassador of El Salvador, told the Embassy. Ambassador Rivera informed the Embassy, "We are hopeful that negotiations will finish this year." According to him, the coming seven months are a break or make period. To prolong talks into 2007 would be a major disappointment, the ambassador was quoted by the Embassy as saying. "They will not suspend and start again, and so forth. This is it." The Embassy recalls that the countries' representatives met on May 23 this year -- the first meeting since the 10th round of official talks in February 2004. The representatives are scheduled to meet again in July. The alliance was called the e Canada-Central America Four aka CA4, Embassy states. It is a treaty to enhance the flow of Canadian goods and investment into Central America. According to the Embassy, the dialogue was launched in 2001 in Canada by then-Liberal trade minister Pierre Pettigrew. However, it was halted when the Central American nations turned their attention to reaching a trade pact with the United States instead. Embassy states that an accord with Canada has now been pushed, but Mr. Rosales warns that political will could extinguish it unless negotiators act quickly to finalize things. Mr. Rosales revealed to Embassy that Canada's demands for market access are much tougher than what the US had been asking. The ambassador, however, declined to reveal them to protect the confidential bargaining positions of each nation. Mr. Rosales is against opening up of the clandestine talks and the publication of drafting texts, as what the human rights, labor and environmental groups in Latin America and Canada are calling for, Embassy reports. * * * Fitch Ratings assigned these ratings on Guatemala: Rating Rating Date ------ ----------- Country Ceiling BB+ Feb. 22, 2006 Long Term IDR BB+ Feb. 22, 2006 Short Term IDR B Feb. 22, 2006 Local Currency Long Term Issuer Default Rating BB+ Feb. 22, 2006 Fitch also rated Guatemala's senior unsecured bonds: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- Aug. 3, 2007 US$150,000,000 8.5% BB+ Nov. 8, 2011 US$325,000,000 10.25% BB+ Aug. 1, 2013 US$300,000,000 9.25% BB+ Oct. 6, 2034 US$330,000,000 8.125% BB+ * * * 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 * * * Moody's Investor Service assigned these ratings to Nicaragua: Rating Rating Date ------ ----------- Long Term Caa1 June 30, 2003 Senior Unsecured Debt B3 June 30, 2003 * * * 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 =========== M E X I C O =========== BALLY TOTAL: Will Not Submit Stockholder Rights Plan for Voting --------------------------------------------------------------- Bally Total Fitness Holding Corporation disclosed that its Board of Directors decided not to submit the Company's Stockholder Rights Plan to a stockholder vote. Accordingly, the Plan will expire pursuant to its terms on July 15, 2006. Additionally, the Company confirmed that it remains on track to file its 2005 10-K report and quarterly report for the three months ended March 31, 2006, before the July 10 expiration of the waiver period obtained from the Company's senior bank lenders and bondholders. Separately, the Company confirmed that its strategic alternatives process is proceeding. About Bally Total Bally Total Fitness -- http://www.ballyfitness.com/-- is the largest and only U.S. commercial operator of fitness centers, with approximately four million members and 390 facilities located in 29 states, Mexico, Canada, Korea, China and the Caribbean under the Bally Total Fitness(R), Crunch Fitness(SM), Gorilla Sports(SM), Pinnacle Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada(R) brands. * * * As reported in the Troubled Company Reporter on March 17, 2006, Standard & Poor's Ratings Services held its ratings on Bally Total Fitness Holding Corp., including the 'CCC' corporate credit rating, on CreditWatch with developing implications, where they were placed on Dec. 2, 2005. The CreditWatch update followed Bally's announcement that it will not meet the March 16, 2006, deadline for filing its annual report on SEC Form 10-K for the year ending Dec. 31, 2005. BANCO INBURSA: Fitch Affirms C Individual Rating ------------------------------------------------ Fitch Ratings affirmed these ratings of Mexico's Banco Inbursa, with a Stable Outlook: -- Foreign currency long-term Issuer Default Rating: 'BBB'; -- Foreign currency short-term IDR: 'F3'; -- Local currency long-term IDR: 'BBB;' -- Local currency short-term IDR: 'F2'; -- Individual: 'C'; -- Support '4'; -- National-scale long-term: 'AA+(mex)'; and -- National-scale short-term 'F1+(mex)'. Inbursa's ratings are based on its sound capital adequacy by international standards, ample liquidity, and historically strong asset quality ratios. The ratings also reflect its good, though volatile, performance since its establishment in 1993, and higher than average loan concentrations and market risk appetite. Inbursa has consistently recorded positive, though volatile, earnings, as a result of hefty trading positions, both in the form of securities and derivatives. Positively, its flexible cost structure and ample capital base provide some comfort to absorb unstable trading results. Credit risks are managed satisfactorily and it has historically maintained strong asset quality. At end-2005, Inbursa's non-performing loans ratio was 0.78%, with sizeable loan loss reserve of 17.1 times NPLs, or 13.4% of total loans. Given its corporate nature and its ownership structure, the bank's loan portfolio is concentrated and has significant related-party lending. Inbursa's exposure to market risk is heavy given its high-yield corporate and sovereign securities holdings as well as sizeable derivatives (mainly interest rate swaps) for trading purposes. The bank's historically wholesale-funding structure is rapidly changing with the introduction of deposit products targeted at higher and middle-income brackets of the population. The bank has shown ample liquidity while its capital adequacy is sound by international standards and provides a sizeable cushion to absorb the volatile nature of its activities. Banco Inbursa was Mexico's seventh largest commercial bank ranked by total assets and loans at end-2005, with a market share of 3.4% and 4.8%, respectively (fourth largest by equity). Banco Inbursa is 99.9%-owned by Grupo Financiero Inbursa. Roughly 70% of GFInbursa is held by a group of Mexican investors led by the Slim family, while the balance is widely held. GFInbursa is a fairly diversified financial company with subsidiaries in these sectors: -- banking, -- insurance, -- leasing, -- mutual funds, -- bonding and -- brokerage. In turn, Banco Inbursa has subsidiaries involved in pension fund management, real estate and venture capital. The bank accounts for roughly 90% of GFInbursa's assets. Although the bank has a corporate focus (around 14% market share in commercial lending in 2005), it also offers a range of retail and investment banking services. Its branch network at end-2005 was composed of 73 full-service offices, 560 ATMs, and 126 mini-branches mainly located in the chain of retail stores owned by the same group of shareholders. EL POLLO: Holders Grant Requisite Consents to Amend Indentures -------------------------------------------------------------- El Pollo Loco Inc. and EPL Intermediate Inc. disclosed that in connection with the tender offer and consent solicitation for its 11-3/4% Senior Notes due 2013 and by Intermediate for its 14-1/2% Senior Discount Notes due 2014, a majority of holders in principal amount of both notes have provided the requisite consents to amend the indentures governing the Notes. As of May 30, 2006, El Pollo Loco had received tenders and consents for US$124,726,000 in aggregate principal amount of the 11-3/4% Notes, representing approximately 99.93% of the outstanding Notes and Intermediate had received tenders and consents for US$39,342,000 in aggregate principal amount of the 14-1/2% Notes, representing 100% of the outstanding Notes. Holders may no longer withdraw Notes that were previously or hereafter tendered, except as described in the Offer to Purchase and Consent Solicitation Statement, dated May 15, 2006. The tender offer is scheduled to expire at 5 p.m., New York City time, on July 12, 2006, unless extended or earlier terminated. Holders of the 11-3/4% Notes who tendered their Notes prior to the consent deadline will receive a consent payment of US$50 per US$1,000 principal amount of the 11-3/4% Notes validly tendered and accepted for purchase, and Holders of the 14-1/2% Notes who tendered their Notes prior to the Consent Deadline will receive a consent payment of US$50 per US$1,000 of accreted value of the 14-1/2% Notes validly tendered and accepted for purchase, in each case in addition to the tender offer consideration as described in the Offer to Purchase plus, in the case of the 11-3/4% Notes, accrued and unpaid interest on the 11-3/4% Notes. On the date of the Consent Deadline, El Pollo Loco and Intermediate executed a supplemental indenture to the indentures governing each of the 11-3/4% Notes and the 14-1/2% Notes which supplemental indentures, among other things, eliminated substantially all of the restrictive covenants, certain events of default provisions and certain conditions to defeasing the Notes in the indentures. The supplemental indentures will become operative when the Notes are accepted for payment by each of El Pollo Loco and Intermediate pursuant to the Offer to Purchase. The Offer is subject to the satisfaction of certain conditions, including: -- consummation of the Common Stock Offering, -- El Pollo Loco entering into a new credit facility, -- a requisite consent condition, -- minimum tender condition, -- condition that each of the Offers be consummated and -- that each of El Pollo Loco and Intermediate receives consents from a majority of holders of each of the 11-3/4% Notes and the 14-1/2% Notes. The detailed terms and conditions of the Offer are contained in the Offer to Purchase. Requests for documents may be directed to the information agent for the offer at: Global Bondholder Services Corporation, Tel: 866-937-2200. Additional information concerning the Offer may be obtained by contacting the dealer manager and solicitation agent for the offer at: Merrill Lynch, Pierce, Fenner & Smith Incorporated, Tel: 212-449-4914 (collect) 888-ML4-TNDR (U.S. toll-free) About El Pollo Loco El Pollo Loco -- http://www.elpolloloco.com/-- pronounced "L Po-yo Lo-co" and Spanish for "The Crazy Chicken," is the nation's leading quick-service restaurant chain specializing in flame-grilled chicken and Mexican-inspired entrees. Founded in Guasave, Mexico, in 1975, El Pollo Loco's long-term success stems from the unique preparation of its award-winning "pollo" -- fresh chicken marinated in a special recipe of herbs, spices and citrus juices passed down from the founding family. * * * As reported in the Troubled Company Reporter on May 23, 2006, Standard & Poor's Ratings Services expected to raise its corporate credit rating on El Pollo Loco Inc. to 'B+' from 'B' upon the successful completion of the company's planned IPO. S&P said the outlook is stable. Standard & Poor's also assigned a 'B+' rating, same as the expected corporate credit rating, to the company's planned US$200 million senior secured bank loan. A recovery rating of '2' is also assigned to the loan, indicating the expectation for substantial (80%-100%) recovery of principal in the event of a payment default. * * * Moody's Investors Service upgraded El Pollo Loco, Inc.'s corporate family rating to B1 from B3 and assigned B1 ratings to the company's proposed US$200 million senior secured credit facility following the company's proposed initial public offering of shares of its common stock and planned refinancing of its existing debt. At the same time, the SGL-2 Speculative Grade Liquidity rating was affirmed. The outlook remains stable. GENERAL MOTORS: Troy Clarke Named President of GM North America --------------------------------------------------------------- Troy Clarke has been appointed president of GM North America and GM group vice president, effective July 1, General Motors Chairman and CEO Rick Wagoner reported on May 30, 2006. Mr. Clarke, president of GM Asia Pacific since 2004, will work closely with Mr. Wagoner in implementing the GMNA turnaround plan, and will oversee day-to-day operations of GM's largest sales region. Mr. Wagoner has been leading GMNA since April 2005 to develop and drive the region's turnaround strategy. "While much work remains to be done, we have reached several significant milestones in our turnaround plan over the past year," Mr. Wagoner said. "This is the right time to turn the region's day-to-day operations over to Troy, who has the experience and skills to help lead the GMNA team as it continues this unprecedented restructuring. Troy has a track record of success in general management, manufacturing and labor relations in the United States and globally, which will be invaluable in his new assignment." Mr. Wagoner said he and his senior leadership team will continue to be actively involved in executing the next key steps in the GMNA turnaround plan, including: * a successful resolution of the Delphi reorganization; * completion of the accelerated attrition and capacity- reduction programs, and achievement of the $7 billion structural cost-reduction target; * flawless launches of key new cars, trucks and advanced technologies; and * ongoing refinement and acceleration of GM's brand and product-focused marketing strategy. David "Nick" Reilly, a GM vice president and president and CEO of GM Daewoo Auto & Technology Co. in South Korea, will replace Mr. Clarke as president of GM Asia Pacific and will become a GM group vice president, also effective July 1. Mr. Reilly also will succeed Mr. Clarke as chairman of the GMDAT Board of Directors. A replacement for Mr. Reilly as CEO of GMDAT will be announced at a later date. "Nick has demonstrated his managerial strength, most recently in growing GM Daewoo into a profitable enterprise that has quickly become a key part of our global expansion plans, well in advance of what was generally expected," Mr. Wagoner said. "The success of GM Daewoo is a tribute to Nick's leadership and commitment." Vice Chairman John Devine, 62, who reported in December that he planned to retire this year, has decided to make his retirement effective June 1, Mr. Wagoner said. "We all owe John a tremendous debt of gratitude for his vast contributions to GM over the past five years," Mr. Wagoner said. "John took on a number of challenging and important assignments during his tenure as vice chairman and chief financial officer. His extensive experience and expertise in the auto business, along with the respect he enjoys on Wall Street, enabled him to contribute to our turnaround in an exceptional manner." Mr. Clarke, 51, joined GM at the Pontiac division in 1973 and over the succeeding decade held several engineering and manufacturing assignments there. He was named director of manufacturing for GM de Mexico in 1997, and president and managing director in 1998, when he also became a corporate vice president. In 2001, Mr. Clarke was appointed vice president of labor relations in Detroit, and he became group vice president of manufacturing and labor relations in 2002. He served as GM's chief negotiator during the 2003 labor negotiations in North America. Mr. Reilly, 56, has been at GM Daewoo since 2002, when he was named to lead the transition team for the company's formation. He has been a GM vice president since 1997. He began his GM career in 1975 at the former Detroit Diesel Allison Division in the United Kingdom. From 1978 to 1984, he held assignments in Belgium, the United States and Mexico. After serving in operations and manufacturing posts with Vauxhall and the Isuzu joint venture in Luton, England, Mr. Reilly became vice president of quality and reliability for GM Europe in Zurich, Switzerland. Mr. Reilly returned to the United Kingdom in 1996 as chairman and managing director of Vauxhall, and returned to Zurich in 2001 as vice president of sales, marketing and after-sales for GME. 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. =========== P A N A M A =========== GRUPO FINANCEIRO: Net Profits Drop 7.2% in First Quarter 2006 ------------------------------------------------------------ Grupo Financiero Continental SA said in a filing with the Panamanian Stock Exchange that its net profits amounted to US$11.5 million in the first quarter of 2006, a 7.2% decrease from the US$12.3 million recorded in the same quarter in 2005. Dow Jones Newswires reports that the company said the decrease is due to soft commission income and rising costs. The company's net lending revenues reached US$22.8 million -- a 6.8% growth, Dow Jones states. Net commission income, however, dropped 28.4% to US$4.2 million. According to Dow Jones, general and administration expenses increased 6.7% to US$13.8 million. The company posted a 19.9% growth in assets -- about US$3.06 billion. Loans rose 24.5% to US$2.02 billion and deposits amounted to US$1.73 billion, incurring a 17.8% boost, Dow Jones reports. * * * As reported in the Troubled Company Reporter on May 10, 2006, Fitch Ratings affirms these ratings of Grupo Financiero Continental: -- Long-term Issuer Default Rating: BBB-; -- Short-term: F3; -- Individual: C; -- Support: 5. The Outlook is Stable. * PANAMA: Okays Revision of Free Trade Accord with El Salvador -------------------------------------------------------------- Panama's Commerce and Industry Ministry agreed on a procedure with El Salvador to revise the bilateral free trade agreement of April 11, 2003, the Commerce Ministry of Panama was quoted by Xinhua News as saying. Xinhua relates that Minister Alejandro Ferrer of Panama and Gerardo Sol Mixto -- El Salvador's ambassador -- signed the deal, which established a zero tariff for the first US$250,000 worth of all cheese products traded per year, and a variable system of tariffs for cheese products that go beyond the quota. According to Xinhua, the accord is yet to be ratified by the legal authorities in both Panama and El Salvador. Producers of cheese will be able to increase their exports and Panam will continue to promote trade through this kind of deals, Minister Ferrer tld Xinhua. * * * 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 * * * 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 ===================== P U E R T O R I C O ===================== ADELPHIA: Court Disallows Lenders' Multi-Billion Interest Claim --------------------------------------------------------------- The Honorable Robert E. Gerber of the U.S. Bankruptcy Court for the Southern District of New York sustained the objection of Adelphia Communications Corporation, its debtor-affiliates and the Official Committee of Unsecured Creditors against claims for additional interest asserted by the administrative agents for six of the Debtors' prepetition credit facilities, on behalf of the lenders of those facilities. In its 26-page decision, Judge Gerber finds, among others: (a) that the Debtors' taking of an accrual for liabilities that might be imposed with respect to Grid Interest was focused only on financial accounting obligations, with a mindset based on the importance of conservative accounting, particularly after the excesses of the Rigas era; (b) no evidence that the Debtors' accounting personnel intended to waive any defenses the Debtors might have to those claims, and finds no intent to waive those defenses; (c) that the Debtors did not waive their defenses to bank lender claims for the additional interest; (d) that the bank lenders' actions too were based solely on financial accounting concerns, and that there is no indication that the bank lenders intended to waive claims for the recovery of sums that they did not accrue; and (e) that the bank lenders did not waive their claims to the additional interest sought. The Credit Facilities are: 1. Century-TCI Facility -- dated as of December 3, 1999, among Century-TCI California, L.P., certain lenders and Citibank, N.A., as the Administrative Agent; 2. UCA-HHC Facility -- dated as of May 6, 1999, among Hilton Head Communications, L.P., UCA Corp. and certain Borrowers, various Lenders and Wachovia Bank, N.A., as the Administrative Agent; 3. FrontierVision Facility -- a second amended and restated credit agreement dated as of December 19, 1997, among FrontierVision Operating Partners, L.P., various Lenders and JP Morgan Chase Bank, as the Administrative Agent; 4. The Parnassos Facility -- dated as of December 30, 1998 among Parnassos, L.P., various Lenders and The Bank of Nova Scotia, as the Administrative Agent; 5. The Century Facility -- dated as of April 14, 2000, among Century Cable Holdings LLC and certain other Borrowers, various Lenders and Bank of America, N.A., as Administrative Agent; and 6. The HVA Facility -- amended and restated credit agreement dated as of March 29, 1996, among Highland Video Associates, L.P., and Global Acquisition Partners, L.P., various Lenders and BNS as the Administrative Agent. The Debtors are also a party to the Olympus Facility dated as of September 28, 2001, among Olympus Cable Holdings, LLC, and certain Borrowers, various Lenders and Bank of Montreal, as Administrative Agent. But BMO did not seek additional interest in the proof of claim it filed on behalf of the lenders of the Olympus Facility. Representing the ACOM Debtors, Marc Abrams, Esq., at Willkie Farr & Gallagher LLP, in New York, related that in January 2004, the Administrative Agents filed these claims for the principal and interest under the Credit Facilities: Claimant Claim No. Claim Amount -------- --------- ------------ BMO 11158 US$1,265,000,000 BNS 13383 undetermined BNS 13384 623,000 BofA 15928 2,480,000,000 Citibank 8810 1,000,000,000 JP Morgan 9888 617,312,500 Wachovia 11204 831,375,000 Mr. Abrams told the Court that the Lenders have received approximately US$1,500,000,000 in postpetition adequate protection payments with respect to interest charges under the very same Credit Facilities used by the Rigas family to defraud the Debtors. Moreover, the Lenders will have their claims for principal and interest on the Credit Facilities paid in full under the Debtors' proposed plan of reorganization even though the ACOM Debtors never received the benefits of at least US$3,000,000,000 of those funds, Mr. Abrams added. Notwithstanding the extraordinary benefits they have received, the Administrative Agents amended their proofs of claim asserting that the compliance certificate delivered to them were not accurate, and thus the interest rates that they would have charged the ACOM Debtors under the certain grid pricing schedules could have been higher than the interest rates actually charged, resulting in approximately US$300,000,000 of additional interest charges, Mr. Abrams related. The Administrative Agents now seek to recover the US$300,000,000 from the ACOM Debtors' unsecured creditors. From September through November 2005, the Administrative Agents filed these claims for additional interests: Claimant Claim No. Claim Amount -------- --------- ------------ BNS 18058 US$2,100,000 to US$41,900,000 BNS 18059 US$4,100,000 to US$81,000,000 BofA 17701 undetermined Citibank 17724 US$4,800,000 to US$92,000,000 JP Morgan 17702 US$2,500,000 to US$70,000,000 Wachovia 17722 US$87,000,000 Mr. Abrams argued that the Administrative Agents' claims for additional interest should be disallowed because: -- there is no basis under the relevant loan agreements for awarding additional "grid" interest after inaccurate compliance certificates have been delivered; -- the Administrative Agents voluntarily waived any right to default interest in exchange for numerous benefits they received under the DIP Financing; -- the Agents waived their right to receive additional grid interest by continuing to accept, without objection, payments for interests at the grid rates in effect as of the Petition Date pursuant to the Final DIP Order; and -- the grid interest claims are untimely, since they have been asserted for the first time during a period of more than seven months to nearly two years after the Bar Date. Court's Ruling The Court disagreed with bank lenders' contention that they have a contractual entitlement to the incremental interest, and that the asserted contractual entitlement is recoverable as a secured claim under Section 506(b) of the Bankruptcy Code. Judge Gerber found that the amount payable as Grid Interest, as a matter of contract law, is determined by the compliance certificates. "Under the agreements, whatever is said in the compliance certificates is controlling. And there is no mechanism in the agreements for a re-computation of the Applicable Margin if the compliance certificates turn out to be inaccurate, by reason of either mistake or fraud." The Court noted that Wachovia Bank, N.A., and a number of the other bank lenders also contend that most of the contracts have a very broad definition of "Obligations," and include all obligations "arising under or in connection with the credit agreements." Thus, they argue, the incremental interest collectible is one of the "Obligations" under the credit agreements, and the Grid Interest, as one of the "Obligations," is thus recoverable. "But the argument is circular, and the Court must reject it," Judge Gerber opined. The desired additional interest constitutes part of the "Obligations" under the facilities to the extent -- but only the extent -- that it is provided for under the contracts, Judge Gerber emphasized. Moreover, Judge Gerber said, the Court is not persuaded by Wachovia and other bank lenders' contention that they have the necessary contractual entitlement because in some or all of the agreements, each borrower must indemnify the bank lenders against all losses and damages incurred in connection with the bank lenders entering into and performing under the credit agreements. Judge Gerber pointed out that the key word there is "indemnify," which has long been held to be synonymous with "hold harmless," and which has been variously defined as "[t]o restore the victim of a loss, in whole or in part, by payment, repair, or replacement, or "to make good a loss that someone has suffered because of another's act or default." The Court clarifies that indemnification provisions give rise to restitutionary rights, and are not back-door means to get the benefit of one's bargain. The Court considered it inappropriate to penalize the Debtors or the bank lenders for their accounting decisions with respect to accrual of additional interest claims. The Court believed that it has greater expertise in analyzing contractual obligations than do the Debtors' or the bank lenders' accounting personnel. Judge Gerber said the measure of the bank lenders' damages for fraud or misrepresentation would be their out-of-pocket loss -- essentially or entirely their outstanding principal -- and not the profits they would have realized in the absence of fraud. The Debtors will pay that principal back upon confirmation, and, so far as the record reflects, the bank lenders will have no further out-of-pocket damages. According to Judge Gerber, he does not need to address the Creditors' Committee's and the Debtors' other contentions, asserting waiver of the claims for incremental interest; that bank lenders should be judicially estopped from asking for it; and that proofs of claim filed on behalf of the bank lenders before the Bar Date failed to assert the claims for the additional interest. "There were no valid claims to waive. The other arguments are likewise academic." For these reasons, the Court ruled that the bank lenders will not have a claim for the incremental interest under their contracts. The Court noted that while most of the bank lenders did indeed retain remedies against Adelphia Communications Corporation in tort, those tort remedies do not include expectancy damages and at that time as the bank lenders are fully repaid the principal on their loans, they will have no claims in tort. Judge Gerber further ruled that the Debtors do not have to reserve sums under their reorganization plan to satisfy bank lender claims for the Grid Interest. The bank lenders' rights to seek allowance of other aspects of their claims remains in effect and all parties' rights with respect to future aspects of the bank lenders' claims are reserved and preserved. A full-text copy of the Court's Decision is available for free at http://ResearchArchives.com/t/s?a34 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: Selling Real Property & Equipment for US$1.2MM -------------------------------------------------------------- Pursuant to the excess assets sale procedures approved by the U.S. Bankruptcy Court for the Southern District of New York, Adelphia Communications Corporation and its debtor-affiliates inform the Court that they will sell these assets for US$1,225,703: 1. Asset: Two electrical transformers Purchaser: Doug Beat Company Purchase Price: US$10,000 Agent: none Deposit: (not mentioned) Appraised Value: No appraisal was conducted 2. Asset: Real property at Lot 31, Bloody Point, 83 Fuskie Lane, Hilton Head, South Carolina Purchaser: Jeff Bradley Purchase Price: US$1,050,000 Agent: Charter One Realty Deposit: US$10,000 Appraised Value: US$820,000 3. Asset: Cable and electronics equipment Purchaser: West 1 CATV Supplies, Inc. Purchase Price: US$6,000 Agent: none Deposit: (not mentioned) Appraised Value: No appraisal was conducted 4. Asset: Cable and electronics equipment Purchaser: Quality Cable & Electronics, Inc. Purchase Price: US$3,213 Agent: none Deposit: (not mentioned) Appraised Value: No appraisal was conducted 5. Asset: Cable and electronics equipment Purchaser: Adams Global Communications, Inc. Purchase Price: US$3,453 Agent: none Deposit: (not mentioned) Appraised Value: No appraisal was conducted 6. Asset: Cable and electronics equipment Purchaser: Broadband Remarketing Int'l, LLC Purchase Price: US$42,661 Agent: none Deposit: (not mentioned) Appraised Value: No appraisal was conducted 7. Asset: Cable and electronics equipment Purchaser: Digicomm International, Inc. Purchase Price: US$110,376 Agent: none Deposit: (not mentioned) Appraised Value: No appraisal was conducted The maximum consideration to be paid for assets sold pursuant to the Court-approved Excess Asset Sale Procedures is $1,000,000. Shelley C. Chapman, Esq., at Willkie Farr & Gallagher, in New York, contends that the sale of the South Carolina Real Property may be authorized because: -- the net recovery to the Debtors' estate as a result of the Sale will not exceed US$1,000,000; and -- the appraised value of the Property does not exceed US$1,000,000. 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. 132; Bankruptcy Creditors' Service, Inc., 215/945-7000) DORAL FINANCIAL: Completes Sale of US$2.5 Billion Mortgage Loans ---------------------------------------------------------------- Doral Financial Corporation, a diversified financial services holding company, successfully completed the sale of approximately US$2.5 billion in mortgage loans to an affiliate of Deutsche Bank Securities Inc. Except for approximately US$100 million in mortgage loans that were not previously transferred to FirstBank Puerto Rico, all the mortgage loans sold had been previously transferred to FirstBank in several transactions occurring between the years 2000 and 2004. The sale of these mortgage loans is part of Doral's initiative to restructure the terms of certain prior mortgage loan transfers and related servicing arrangements, which were recharacterized as secured borrowings as part of the previously announced restatement process. The transactions are expected to have a positive impact on Doral's regulatory capital ratios. In addition, as part of this process, on May 25, 2006, Doral entered into credit agreements with FirstBank to document as secured borrowings the loan transfers between the parties that prior to the restatement had been accounted for as sales. The aggregate amount of the borrowings documented under the credit agreements is approximately US$2.9 billion. The agreements are secured by a pledge of the mortgage loans that were previously transferred by Doral to FirstBank. After the repayment of loans from the proceeds of the sale of these mortgage loans, the aggregate unpaid balance of the loans was reduced to approximately US$450 million. About Doral Financial Doral Financial Corporation -- http://www.doralfinancial.com/ -- a financial holding company, is the largest residential mortgage lender in Puerto Rico, and the parent company of Doral Bank, a Puerto Rico based commercial bank, Doral Securities, a Puerto Rico based investment banking and institutional brokerage firm, Doral Insurance Agency, Inc. and Doral Bank FSB, a federal savings bank based in New York City. * * * As reported in the Troubled Company Reporter on March 27, 2006, Moody's Investors Service downgraded to B1 from Ba3 the senior debt ratings of Doral Financial Corporation, and reiterated the negative rating outlook. Moody's action follows cease and desist orders placed by banking regulators on Doral and some of its subsidiaries, including Doral Bank, San Juan, Puerto Rico. When Moody's last downgraded Doral's debt on Oct. 28, 2005, it issued a negative rating outlook, but noted that any credit deterioration including regulatory consequences or liquidity issues could result in a review for possible downgrade or an outright downgrade. FIRSTBANK PUERTO RICO: Receives US$2.4 Bil. Payment from Doral -------------------------------------------------------------- FirstBank Puerto Rico, a subsidiary of First BanCorp, has received a cash payment from Doral Financial Corporation of approximately US$2.4 billion, substantially reducing the balance of approximately US$2.9 billion in secured commercial loans outstanding to Doral. The commercial loans resulted from First BanCorp's previously announced revised classification of several mortgage-related transactions with Doral. The cash payment by Doral Financial has reduced the remaining balance of the commercial loans to Doral to approximately US$450 million. First BanCorp's management expects additional accelerated payments by Doral, which will further reduce the outstanding balance prior to the close of the second quarter of 2006. As previously announced, the loans had been recorded as purchases of residential real estate loans from Doral by FirstBank, and subsequently reclassified as commercial loans secured by mortgages. FirstBank has executed loan documents related to its secured loans to Doral, which provide for a floating interest rate up to a maximum of 7 1/2% on the remaining balance of US$450 million on the secured loans. In connection with the agreement providing for Doral's repayment of the loans, FirstBank and Doral have entered into a sharing arrangement with respect to certain profits or losses that Doral incurs as part of the sales of the mortgages that previously collateralized the commercial loans. FirstBank has agreed to reimburse Doral for 40% of the net losses incurred by Doral as a result of sales of the mortgages, subject to certain conditions and subject to a maximum reimbursement of US$9.5 million, which will be reduced proportionately to the extent that Doral does not sell the mortgages. Doral Financial will share with FirstBank the profits, if any, received from any subsequent sales of the mortgages, in the same proportion as FirstBank shares in the losses. The US$2.4 billion payment by Doral will result in the reduction of an equal amount of assets requiring risk-weighting at the 100% level, increasing FirstBank's capital ratio by approximately 240 basis points and strengthening the bank's status as a well-capitalized institution, within the meaning established by the Federal Deposit Insurance Corporation aka FDIC. FirstBank expects to use a substantial amount of the proceeds of the loan repayments to repay outstanding brokered certificates of depositthat mature between now and the fourth quarter of 2006. "We are very pleased with this transaction which substantially reduces our loan concentration with Doral and addresses a primary regulatory concern," said Luis Beauchamp, First BanCorp's President and Chief Executive Officier. "The loan repayments allow the corporation to execute its business and capital plans and continue to pursue its ongoing business strategy." First BanCorp also announced that it plans to file in the summer of 2006 an amended annual report on Form 10-K for the fiscal year ended Dec. 31, 2004. First BanCorp expects to file its financial statements for the interim periods in 2005 and the first quarter of 2006 and its annual report on Form 10-K for the fiscal year ended Dec. 31, 2005. About First BanCorp First BanCorp is the parent corporation of FirstBank Puerto Rico, a state chartered commercial bank with operations in Puerto Rico and the Virgin Islands and in the state of Florida; of FirstBank Insurance Agency; and of Ponce General Corporation. First BanCorp, FirstBank Puerto Rico and UniBank, the thrift subsidiary of Ponce General, all operate within U.S. banking laws and regulations. The Corporation operates a total of 140 financial services facilities throughout Puerto Rico, the U.S. and British Virgin Islands, and Florida (USA). Among the subsidiaries of FirstBank Puerto Rico are Money Express, a finance company; First Leasing and Car Rental, a car and truck rental leasing company; and FirstMortgage, a mortgage banking company. In the U.S. and British Virgin Islands, FirstBank operates FirstBank Insurance VI, an insurance agency; First Trade, Inc., a foreign corporation management company; and First Express, a small loan company. First BanCorp's common and preferred shares trade on the New York Stock Exchange, under the symbols FBP, FBPPrA, FBPPrB, FBPPrC, FBPPrD and FBPPrE. * * * As reported in the Troubled company Reporter on March 21, 2006, Fitch Ratings assigned these ratings on First BanCorp and FirstBank Puerto Rico: First BanCorp -- Long-term IDR at 'BB'; -- Short-term at 'B'; -- Individual at 'C/D'; -- Support '5'. FirstBank Puerto Rico -- Long-term IDR at 'BB'; -- Long-term deposit obligations at 'BB+'; -- Short-term deposit obligations at 'B'; -- Short-term at 'B'; -- Individual at 'C/D'; -- Support at '5'. * * * As reported in the Troubled Company Reporter on May 30, 2006, Moody's Investors Service said that it is continuing its review of FirstBank Puerto Rico for possible downgrade. Moody's had most recently downgraded the bank (deposits to Ba1 from Baa3) on Oct. 28, 2005 and kept the bank's ratings on review for possible downgrade. The bank is currently rated D+ for financial strength and Ba1 for deposits. According to Moody's, the main credit issue is one of borrower risk concentrations. ================================= T R I N I D A D & T O B A G O ================================= BWIA WEST: Gets Carped on Jet Pack Delivery Service --------------------------------------------------- BWIA West Indies need to give clear instructions regarding delivery for its jet pack service, according to a letter sent to the Stabroek News. The sender told Stabroek that BWIA's list of products and services called the Bwee Cargo and the Jet Pack. On the jet pack service, BWIA has specified the limit of liability standard: -- the airline will not be liable for loss or non-delivery caused by act or default of the one shipping, -- the airline could not guarantee delivery by a special time or date and shall not be liable for any damage due to delay or non-delivery, and -- the airline will not be liable for any special, incidental or consequential damages, including loss of profit. Because of these, the sender questioned if the Jet Pack Service is not liable for not providing the service it has offered for a fee, Stabroek reports. "The service, it was explained, was an airport-to-airport service. Is it? I enquired further as the trip to the Cheddi Jagan International is not en-route. I was assured it was. The package will be available the same evening I was advised," the sender said in his letter. The sender, satisfied with the possibility of a next day package pick up, said he paid BBD40 for the service, Stabroek states. About four days later, however, there was still no information on where the package can be claimed, the sender informed Stabroek. The sender said that several calls were made to the supervisor in Barbados to assist in the tracing, according to Stabroek. The sender was referred to BWIA Guyana, which then advises each day that the package is yet to arrive 8:00 p.m. the next day. Four days later, the sender was told that he or she should check at a separate location, the Swiss House - Eccles, Stabroek relates. "Is it not simple enough to have a note which your jet pack handlers could read and at least be informed that packages sent are to be collected at Swiss House? Should BWIA Barbados sending packages to Guyana not have this information for their customers sending packages to Guyana?" the sender complained to Stabroek. According to Stabroek, the sender suggested: -- each of BWIA's service points should be asked to provide clear information as to the location of the drop off and pick up points, and -- BWIA should provide addresses and contract numbers to clients as to where the packages are being delivered. However, the sender questioned if the suggested moves are already included in the service being paid for, Stabroek says. 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 ============= CITRICOLA SALTENA: Moody's Rates US$1.3-Mil. Secured Bonds at B3 ---------------------------------------------------------------- Moody's Investors Service assigned a B3 rating to Citricola Saltena S.A.'s US$1.3 million secured bonds and a Ba1.uy rating on the national scale. The rating outlook is stable. Moody's National Scale Ratings are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs in Uruguay are designated by the ".uy" suffix. NSRs differ from global scale ratings in that they are not globally comparable to the full universe of Moody's rated entities, but only with other rated entities within the same country. Citricola's ratings consider the key drivers of Moody's methodology for natural product processors -- protein and agriculture, among other factors. Citricola's very small size, limited franchise strength, and the limited growth potential because of the commodity nature of its products, and also its volatile credit metrics, drive the ratings. Citricola, however, has the advantage of having a harvest season for its produce that is opposite that of its global competitors producing in the Northern Hemisphere, where consumers of its products are concentrated. Hence it can provide fresh citrus produce when competitors cannot. The advantage led management to enter the European markets successfully, positioning the company in a promising niche. The volatile nature of Citricola's commodity activities is reflected in its recent performance, with 2004 being a very good year and 2005 a very bad year. In particular, a rainy harvest season last year affected product quality and thus earnings for Citricola, as shown by a 70% EBITA drop for the fiscal year ended December 2005. The appreciation of the local currency in relation to the US dollar and an increase in Citricola's most significant production costs (energy, local salaries, fuel, freight and packaging) also strongly affected performance of the last fiscal year. As a result, free cash flow was a negative - 4.7% in relation to debt. The stable outlook reflects Moody's expectation that Citricola will be able to sustain operations and export volumes without losing profitability and also manage its debt levels to be line with its cash generation. Over time, Citricola's ratings could be upgraded if it is able to -- build greater scale and diversification, -- create greater stability within its earnings and cash flow, -- stabilize its inflows from exports, -- build higher levels of liquidity, and -- create a better balance between short- and long- term debt. On the other hand, a rating down-grade could occur if volumes are cannot be sustained, production costs continue to rise so that profit margins weaken to below historical levels, and if free cash flow metrics continue to be negative Citricola Saltena is a family-owned Uruguayan company, managed by several family members. It was established in Uruguay more than 50 years ago as a small citrus producer, focusing on both its domestic market as well as exports. * URUGUAY: State Power Firm Launches Energy Savings Plan -------------------------------------------------------- UTE aka Usinas y Transmisiones Electricas, the state power firm of Uruguay, launched an energy savings plan to help fight the current power crisis, according to a report posted on the presidential Web site. As reported in the Troubled Company Reporter on Jun 1, 2006, the Uruguayan government, due to the energy crisis it is experiencing, decided to enforce restrictions on electricity usage and punish violators with suspension of electrical service. These measures were implemented to complement the April 28 Energy Saving Plan: -- that public and private entities may only use half their elevators and escalators during working hours, and that -- neon advertising is only authorized for health and police centers. The report states that increased savings efforts are needed because of the prolonged drought affecting hydroelectric generation, the lack of thermo generation capacity and the difficult regional energy context. * * * As reported in the Troubled Company 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: Will Ink Oil Pact with Iran's Petropars --------------------------------------------------------------- Rafael Ramirez, Venezuela's oil and energy minister, said in reports that the National Iranian Oil Co.'s Petropars unit will help state oil company Petroleos de Venezuela SA or PDVSA develop a heavy oil block in the country's Orinoco oil belt. The signing is expected to occur this week during the meeting of the Organization of Petroleum Exporting Countries in Caracas, Venezuela. PDVSA and Petropars have already assessed and found satisfactory the reserves in the Block Ayacucho 7 in Orinoco Oil Belt, southeast Venezuela. "We are very pleased at the results in this block, as the assessment was completed in a record time," Eulogio Del Pino was quoted by El Universal as saying. Additionally, the two companies will also work together to explore and develop offshore natural gas fields in Block Cardon II in the Gulf of Venezuela near the Colombian border. The block has an estimated reserve of three trillion cubic feet of gas. Construction of a gas pipeline connecting Venezuela to Colombia will begin in July. The pipeline will supplement the exploration at Cardon II. Meanwhile, PDVSA will also sign agreements clearing the way for Algeria's state energy Sonatrach to help it explore for offshore natural gas, Bloomberg News reports. Petroleos de Venezuela SA aka PDVSA is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. * * * On Jan. 23, 2005, Fitch Ratings upgraded the local and foreign currency ratings of Petroleos de Venezuela S.A. aka PDVSA to 'BB-' from 'B+'. The rating of PDVSA's export receivable future flow securitization, PDVSA Finance Ltd, was also upgraded to 'BB+' from 'BB'. In addition, Fitch has assigned PDVSA a 'AAA(ven)' national scale rating. The Rating Outlook is Stable. Both rating actions follow Fitch's November 2005 upgrade of Venezuela's sovereign rating. * VENEZUELA: Oil Minister Foresees No Change in Oil Quota --------------------------------------------------------- Rafael Ramirez, Venezuela's minister for oil and energy, said in reports that members of the Organization of Petroleum Exporting Countries will probably keep current oil production quotas in order to stabilize the market. In March, Venezuela asked OPEC members to lessen oil production by a million barrels per day in order to control prices. However, Venezuela's demand was overruled by Saudi Arabia. The cartel kept production at 28 million barrels per day. "Market fundamentals, including inventories, point to a cut," Mr. Ramirez was quoted by Bloomberg as saying. "But there are other factors, such as geopolitical tensions," that have to be considered. Venezuela's foreign currency long-term debt is rated B1 by Moody's, B+ by Standard & Poor's, and BB- by Fitch. * IDB Enhances Credit Guarantees for LatAm and Caribbean Issuers ---------------------------------------------------------------- The Board of Executive Directors of the Inter-American Development Bank approved a policy change to enhance its partial credit guarantees for Latin American and Caribbean debt issuers. Under the new guidelines, the IDB will be able to denominate reimbursement claims, fees and other charges in local currencies. Previously, the institution's policies required that these items should be denominated in U.S. dollars. The new partial credit guarantee feature improves the IDB's capability to support local currency operations and is available for private sector operations and other projects without sovereign guarantee. "Fostering financial market development is an important part of the IDB's support for private sector development in the region," said Hans Schulz, head of the Private Sector Department's financial markets team. "We are sharpening our instruments in response to market demand". Partial credit guarantees are a key instrument in the IDB's strategy of promoting the development of local capital markets. "They strengthen the credit rating of securities denominated in local currencies, reducing foreign currency exposure for issuers and creating new investment opportunities in the region's capital markets. We anticipate significant demand for this product," Mr. Schulz added. *********** 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, and Stella Mae Hechanova, Editors. Copyright 2006. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is $575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *