/raid1/www/Hosts/bankrupt/TCRLA_Public/060615.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, June 15, 2006, Vol. 7, Issue 118
Headlines
A R G E N T I N A
AEROLINEAS ARGENTINAS: Argentine Gov't Wants to Increase Stake
AGUAS ARGENTINAS: Sets Claims Verification Deadline on Aug. 21
GLOBAL CONEXION: Claims Verification Deadline Is on Aug. 17
KOMUNICARTE SRL: Individual Reports Due in Court on July 21
LABORATORIO WALKER: Mases Named as Trustee for Bankruptcy Case
LA GRAN: Verification of Proofs of Claim Ends on July 7
LUCES ARGENTINAS: Claims Verification Deadline Is Set for Aug. 7
SAINT GERMAIN: Sets Aug. 7 Deadline for Verification of Claims
SAJENCO SA: Court Converts Bankruptcy to Reorganization
SIERRA GAS: Trustee Validates Proofs of Claim Until July 13
TACURAL SACIF: Sets Aug. 21 as Claims Verification Deadline
B E L I Z E
* BELIZE: S&P Junks Sovereign Credit Ratings
B E R M U D A
GLOBAL CROSSING: Inks 1st Supplemental Indenture for 5% Notes
GLOBAL CROSSING: Named as Juniper Networks Elite J-Partner
INTELSAT (BERMUDA): Proposes US$1.9 Bil. Senior Notes Offering
SEA CONTAINERS: Agrees to Pay US$16.3 Million to GE SeaCo
SEA CONTAINERS: Reports Consolidated Operating Loss at Dec. 31
B O L I V I A
* BOLIVIA: Discusses with Andean Community New Course of Action
* BOLIVIA: Moody's Places E Financial Strength Ratings on Banks
B R A Z I L
BRASKEM: Selects Meridium to Provide Integrated Asset Management
CELPA: Gets US$216.9-Mil. Loan for Electricity System Upgrade
CEMAT: Inks US$114.5-Million Financing Pact With IDB
DRESSER-RAND: Moody's Ups Corp. Family & Sr. Debt Ratings to Ba3
GOL LINHAS: Fitch Puts BB Rating on US$200-Mil. 8.75% Bond
TELE NORTE: Posts BRL144 Mil. First Quarter 2006 Net Income
C A Y M A N I S L A N D S
AHFP HALCYON: Creditors Must File Proofs of Claim by June 29
AHFP LEGEND: Proofs of Claim Must be Filed by June 29
AQUILA ALTERNATIVE: Final Shareholders Meeting Held Yesterday
ARGENT NIM 2003-N6: Sets July 14 as Last Day to File Claims
ARGENT NIM 2003-N8: Proofs of Claim Filing Ends on July 14
ARGENT NIM 2004-WN4: Creditors Must Present Claims by July 14
ATHOLYS INC: Creditors Must File Proofs of Claim by July 1
BAYES CAPITAL: Proofs of Claim Filing Will End on July 14
BIBBY INT'L: Last Day to File Proofs of Claim Is on June 25
CHESS INC: Last Day to File Proofs of Claim Is on July 1
CV TRANSPORTATION: Proofs of Claim Filing Will End on June 27
ENSCO CORONADO: Shareholder Declares Company's Liquidation
ENSCO CORONADO: Last Day to File Proofs of Claim Is on July 10
ELENA AIRCRAFT: Sets July 7 for Final Shareholders Meeting
HAMMERMAN COUNTERPOINT: Sets Final General Meeting on July 19
NEW DIMENSION: Final General Meeting Is Scheduled for July 14
O, W & W HOLDINGS: Declares Voluntary Liquidation of Business
O, W & W HOLDINGS: Filing of Proofs of Claim Ends on July 10
SECURITISED ASSETS: Filing of Proofs of Claim Ends on June 30
UOB KAY: Final Shareholders Meeting Set for July 3
VIALTA INT'L: Holding Final General Meeting on July 6
WILKEN USA: Creditors Have Until July 14 to File Proofs of Claim
C H I L E
FRESH DEL MONTE: S&P Affirms Corporate Credit Rating at BB
C O L O M B I A
ECOPETROL: Awards Operating Concessions for Two Fields
ECOPETROL: Helping Ecuador Decide on Operating Occidental Fields
* COLOMBIA: Meets CAN Members to Plan on New Course for Group
* COLOMBIA: Relaxes Foreign Investment Policy to Revive Market
C O S T A R I C A
SCOTIABANK INVERLAT: Interfin Buy Cues Moody's to Affirm Ratings
* COSTA RICA: Holds Bilateral Talks with Taiwan's Dr. Tan
D O M I N I C A N R E P U B L I C
AES CORP: Dominican Unit Receives Natural Gas Shipment
* DOMINICAN REPUBLIC: FTA Delay May Result to Loss of Contracts
* DOMINICAN REPUBLIC: Inks Investments Promotion Pact with Italy
* DOMINICAN REPUBLIC: Starts Construction of Highway to Haiti
E C U A D O R
* ECUADOR: Discusses with Andean Community New Course for Group
* ECUADOR: Ecopetrol to Help Decide on Occidental Fields
E L S A L V A D O R
SPECTUM BRANDS: S&P Affirms Corporate Credit Rating at B-
G R E N A D A
* GRENADA: Vulnerable to Oil Price Increase
G U A T E M A L A
* GUATEMALA: Launches Construction of Power Link with Mexico
H O N D U R A S
* HONDURAS: Spain Okays EUR2.1 Mil. Loan for Canal Maintenance
J A M A I C A
* JAMAICA: Vulnerable to Oil Price Increase
M E X I C O
DELTA MILLS: Amends Terms of US$40 Million GMAC Credit Facility
GENERAL MOTORS: S&P Maintains Ratings on Negative Watch
GRUPO MEXICO: Workers at Cananea Mine Continue Demonstrations
J.L. FRENCH: Court Approves Varnum Riddering as Special Counsel
MERIDIAN AUTOMOTIVE: Wants Until Nov. 1 to File Removal Notices
MERIDIAN AUTOMOTIVE: Wants Watson Wyatt as Actuary
N I C A R A G U A
* NICARAGUA: Fourteen Firms Want Port Equipment Lease Accord
P A N A M A
KANSAS CITY SOUTHERN: Names Arthur Shoener as President and COO
* PANAMA: In Talks with Three Firms for Canal Extension Accord
P E R U
TELEFONICA DEL PERU: Posts PEN72.2 Mil. First Quarter Earnings
* PERU: Discusses with Andean Community New Course for Group
T R I N I D A D & T O B A G O
BWIA WEST: Faces Employee Turnover as Labor Talks Stalled
V E N E Z U E L A
* VENEZUELA: New Micro Lending Banks Won't Impact Banking Sector
- - - - -
=================
A R G E N T I N A
=================
AEROLINEAS ARGENTINAS: Argentine Gov't Wants to Increase Stake
--------------------------------------------------------------
The government of Argentina plans purchase of up to 20% of
Aerolineas Argentinas, aiming to increase its 1.2% stake in the
airline, according to local papers.
Citing anonymous government and company sources, the papers say
that Argentina is negotiating to buy stake from Marsans, the
Spanish travel group who controls 98.2% of Aerolineas.
Reuters recalls that Aerolineas was on the verge of bankruptcy
in 2001 when Marsans purchased it from a group controlled by the
government of Spain.
Aerolineas' employees own the remaining 0.6% stake in the
airline, Reuters says.
According to El Cronista and Ambito Financiero, the state plan
is to take part of the carrier in exchange for price subsidies
on the least profitable domestic routes.
Reports state that Argentina's President Nestor Kirchner would
proceed with a long-delayed plan to increased domestic airfares
by 20% once the deal is done.
Reuters relates that the state regulates airfares by
implementing a price band.
* * *
As reported in the Troubled Company Reporter on June 15, 2000,
Aerolineas Argentinas needed a US$650 million capital injection
and sweeping cost cuts to save it from bankruptcy. Aerolineas'
biggest shareholder covered a bulk of its losses, which Spanish
sources put at US$300 million in 2000.
* * *
Aerolineas Argentinas defaulted on a US$50 million bonds due on
Dec. 23, 2003.
AGUAS ARGENTINAS: Sets Claims Verification Deadline on Aug. 21
--------------------------------------------------------------
The court-appointed trustees, Bilenca, Ghiglione y Sabor
Contadores Publicos, Anzoategui, Petrocelli y Asociados, Emilio
Giacumbo and Rafael Hernandez, for the reorganization proceeding
of Aguas Argentinas S.A. will verify creditors proofs of claim
until Aug. 21, 2006.
Buenos Aires' Court No. 17, with assistance from Clerk No. 34,
is handling Aguas Argentinas' reorganization proceeding.
The trustees will present individual reports and a general
report in court after the claims have been verified. The dates
of submission of these reports are yet to be disclosed.
The court has scheduled the informative assembly on
Sept. 25, 2007, wherein creditors will cast their votes on a
settlement plan that Aguas Argentinas will lay on the table.
The debtor can be reached at:
Aguas Argentinas S.A.
Talcahuano 718
Buenos Aires, Argentina
Parties-in-interest may contact the trustees at:
Bilenca, Ghiglione y Sabor Contadores Publicos
Lavalle 1675
Buenos Aires, Argentina
-- or --
Anzoategui, Petrocelli y Asociados
Peru 440
Buenos Aires, Argentina
-- or --
Emilio Giacumbo
Rafael Hernandez
Corrientes 1250
Buenos Aires, Argentina
GLOBAL CONEXION: Claims Verification Deadline Is on Aug. 17
-----------------------------------------------------------
Global Conexion S.R.L.'s creditors are required to present
proofs of their claims to Otto Munch, the court-appointed
trustee. Mr. Munch will verify the claims until Aug. 17, 2006,
La Nacion reports. Creditors who fail to submit the required
documents won't receive any post-liquidation distributions.
Buenos Aires' Court No. 1 declared Global Conexion bankrupt at
the behest of Comision Nacional de Telecomunicaciones S.A.,
which the company owes US$14,070.
Clerk No. 1 assists the court on the case.
The debtor can be reached at:
Global Conexion S.R.L.
Cordoba 645
Buenos Aires, Argentina
The trustee can be reached at:
Otto Munch
Maipu 509
Buenos Aires, Argentina
KOMUNICARTE SRL: Individual Reports Due in Court on July 21
-----------------------------------------------------------
Court-appointed trustee Juan Angel Giannazo will stop verifying
claims from Komunicarte S.R.L.'s creditors on June 26, 2006.
Infobae relates that verified claims will be used as basis in
creating individual reports, which are due in court on
July 21, 2006.
A general report is expected in court on September 18, 2006.
The debtor can be reached at:
Komunicarte S.R.L.
Humberto Primo 985
Buenos Aires, Argentina
The trustee can be reached at:
Juan Angel Giannazo
Jufre 21
Buenos Aires, Argentina
LABORATORIO WALKER: Mases Named as Trustee for Bankruptcy Case
--------------------------------------------------------------
A court in Santa Fe appointed Ester Pilar Mases to supervise the
bankruptcy proceeding of Laboratorio Walker S.R.L. Under
bankruptcy protection, control of the company's assets is
transferred to Ms. Mases.
As trustee, Ms. Mases will:
-- verify creditors' proofs of claim; and
-- prepare and present individual and general reports in
court after the claims are verified.
The deadline for verification of claims and the dates of
submission of the reports are yet to be disclosed.
The trustee can be reached at:
Ester Pilar Mases
Sanchez de Bustamante 159, Rosario
Santa Fe, Argentina
LA GRAN: Verification of Proofs of Claim Ends on July 7
-------------------------------------------------------
Clorinda Paula Donato, the court-appointed trustee for the
bankruptcy case of La Gran Largada S.A. will verify proofs of
claim until July 7, 2006.
La Nacion relates that Buenos Aires' Court No. 4 declared La
Gran bankrupt at the request of El Sol de Bella Vista S.R.L.,
which the company owes US$4,436.
Clerk No. 8 assists the court in this case.
The debtor can be reached at:
La Gran Largada S.A.
Marcelo Torcuato de Alvear 2077
Buenos Aires, Argentina
The trustee can be reached at:
Carolina Paula Donato
Maipu 42
Buenos Aires, Argentina
LUCES ARGENTINAS: Claims Verification Deadline Is Set for Aug. 7
----------------------------------------------------------------
Luces Argentina S.R.L.'s creditors are required to present
proofs of their claims to Jose Cueli, the court-appointed
trustee, until Aug. 7, 2006, La Nacion reports. Creditors who
fail to submit the required documents will not receive any post-
liquidation distributions.
Buenos Aires' Court No. 19 declared Luces Argentina bankrupt at
the request of Jose Diaz, whom the company owes US$18,133.
Clerk No. 38 assists the court on the case.
The debtor can be reached at:
Luces Argentinas S.R.L.
Tinogasta 5315
Buenos Aires, Argentina
The trustee can be reached at:
Jose Cueli
Maza 100
Buenos Aires, Argentina
SAINT GERMAIN: Sets Aug. 7 Deadline for Verification of Claims
--------------------------------------------------------------
The verification of creditors' claims for the Saint Germain S.A.
insolvency case is set to end on Aug. 7, 2006, states Infobae.
Marcela A. Mazzoni, the court-appointed trustee who will examine
the claims, will submit the validation results as individual
reports on Sept. 19, 2006. She will also present a general
report in court on Nov. 1, 2006.
On Nov. 29, 2006, the company's creditors will vote on a
settlement proposal prepared by the company.
The trustee can be reached at:
Marcela A. Mazzoni
Alfredo Bufano 2198
Buenos Aires, Argentina
SAJENCO SA: Court Converts Bankruptcy to Reorganization
-------------------------------------------------------
Sajenco S.A. will proceed with reorganization after Buenos
Aires' Court No. 25 converted the Company's bankruptcy case into
a "concurso preventivo," states Infobae.
Under Insolvency protection, Sajenco will be able to draft a
proposal designed to settle its debts with creditors. The
reorganization also prevents an outright liquidation.
The court-appointed trustee, Hector Franco, will still verify
creditors' proofs of claim. The verification deadline is yet to
be disclosed.
As reported in the Troubled Company Reporter on May 10, 2006,
Court No. 25 declared Sajenco bankrupt, at the request of
Cooperativa Interamericana Limitada, which it owes US$50,500.
Clerk No. 50 assists the court in this case.
The debtor can be reached at:
Sajenco S.A.
Talcahuano 1146
Buenos Aires, Argentina
The trustee can be reached at:
Hector Franco
Chacabuco 178
Buenos Aires, Argentina
SIERRA GAS: Trustee Validates Proofs of Claim Until July 13
-----------------------------------------------------------
Court-appointed trustee Maria Ines Palermo will validate
creditors' proofs of claim against bankrupt company Sierra Gas
S.A. until July 13, 2006, Infobae reports.
Ms. Palermo will also present individual reports based on the
verified claims and a general report that contains an audit of
the company's accounting and banking records. The dates of
submission of these reports are yet to be disclosed.
A Buenos Aires court handles the company's bankruptcy case.
The trustee can be reached at:
Maria Ines Palermo
Avenida Santa Fe 3444
Buenos Aires, Argentina
TACURAL SACIF: Sets Aug. 21 as Claims Verification Deadline
-----------------------------------------------------------
Court-appointed trustee Hector Edgardo Grun won't verify
creditors' claims against Tacural S.A.C.I.F y A.'s after
Aug. 21, 2006.
Infobae relates that verified claims will be used as basis in
creating individual reports, which will be due in court on
Oct. 2, 2006. A general report is expected in court on
Nov. 14, 2006.
An informative assembly is scheduled on June 1, 2007.
The trustee can be reached at:
Hector Edgardo Grun
San Martin 551
Buenos Aires, Argentina
===========
B E L I Z E
===========
* BELIZE: S&P Junks Sovereign Credit Ratings
--------------------------------------------
Standard & Poor's Ratings Services affirmed its 'CCC-' long-term
foreign, 'CCC+' long-term local, and 'C' short-term sovereign
credit ratings on Belize.
Standard & Poor's also said that the outlook remains negative.
According to Standard & Poor's credit analyst Helena Hessel, the
ratings reflect the uncertain ability of the government to
service its debt. The sovereign's impaired ability to access
commercial external financing and the short-term maturity of the
commercial debt exacerbate the government's capacity to repay
its obligations. However, the government's capacity to make
payments this year strengthened because of recent bilateral
support from Taiwan and Venezuela. Nevertheless, the
government's longer-term challenging debt trajectory persists,
and the debt servicing is especially difficult in 2007. The
government is currently deciding on the longer-term debt-
management strategy developed by external financial advisors.
"Because of the recently approved US$25 million rapidly
disbursing balance of payment concessionary loan from the
Central Bank of Venezuela to the Central Bank of Belize, the
government should be able to make the payments in 2006," Ms.
Hessel said. "However, the servicing profile is more demanding
in 2007, with public sector external debt due for repayment
standing at US$137 million, which is double the 2006 amount."
The debt due in 2007 includes the US$76 million of exercisable
put option on the Republic Bank of Trinidad and Tobago's loans
plus interest payments of US$64.4 million.
The negative outlook reflects the government's weak capacity to
meet its debt-service obligations, despite its recent success in
buying time by raising concessionary financing from Taiwan and
Venezuela. The difficult political scene makes it more
challenging to avoid the potential payment crisis. The
Government's already weak decision-making track record has been
recently severely impaired by March 2006 municipal elections
overwhelmingly won by the opposition party.
"If the ongoing review of government debt strategy leads to the
decision to restructure commercial debt, the issuer rating will
be revised to selective default (SD)," Ms. Hessel added. "On the
other hand, if the government overcomes its liquidity crunch by
taking decisive effort to consolidate its fiscal position and
stabilize the political environment by addressing the issues of
public discontent and restoring the confidence of the financial
markets, the government's creditworthiness could improve."
=============
B E R M U D A
=============
GLOBAL CROSSING: Inks 1st Supplemental Indenture for 5% Notes
-------------------------------------------------------------
Global Crossing Limited entered into a First Supplemental
Indenture with Wells Fargo Bank, N.A., on May 30, 2006. The
First Supplemental Indenture supplements the Base Indenture
dated as of May 18, 2006, between the Company and Wells Fargo
with respect to the Company's issuance of its 5.0% Convertible
Senior Notes due 2011.
A copy of the Supplemental Indenture is available for free
at http://researcharchives.com/t/s?b44
In connection with the Convertible Senior Notes Indenture, the
Company entered into the Pledge Agreement dated as of
May 30, 2006, with Wells Fargo, pursuant to which the Company
purchased security entitlements with respect to a portfolio of
U.S. treasury securities, for the account of the Pledged
Securities Intermediary for credit to the Pledge Account, in an
amount sufficient to provide for the payment in full of the
first six scheduled interest payments due on the Convertible
Senor Notes.
A copy of the Pledge Agreement is available for free
at http://researcharchives.com/t/s?b41
In connection with recent financing activities, Global Crossing
also entered into Amendment No. 1 to Indenture dated as of
May 30, 2006, among the Company, the other credit parties, Wells
Fargo, and STT Crossing Ltd, amending the Indenture dated
December 23, 2004, pursuant to which the Company previously
issued US$250,000,000 in aggregate principal amount of its 4.7%
Senior Secured Mandatory Convertible Notes.
STT Crossing, a wholly owned subsidiary of Singapore
Technologies Telemedia Pte Ltd and the majority shareholder of
the Company, holds 100% of the issued and outstanding Mandatory
Convertible Notes. The Indenture Amendment clarifies that the
Loan and Security Agreement described in Item 8.01 below
constitutes a "Working Capital Facility" as defined in the
Mandatory Convertible Notes Indenture and is therefore not
prohibited by the covenants in such indenture restricting the
Company's ability to incur debt and grant liens.
A copy of the Indenture Amendment is available for a fee
at http://researcharchives.com/t/s?b42
In connection with the Indenture Amendment, the Company also
entered into Amendment No. 2 to Restructuring Agreement dated as
of May 30, 2006, with Global Crossing Holdings Limited, Global
Crossing North American Holdings, Inc., Global Crossing (UK)
Telecommunications Limited, STT Crossing and STT Communications
Ltd. The Amendment to Restructuring Agreement amended the
Restructuring Agreement among the parties dated as of
October 8, 2004, to clarify that the 175 basis point consent fee
payable to STT Crossing under section 1.8 of such Restructuring
Agreement applies to all "Working Capital Facilities" as defined
in the Mandatory Convertible Notes Indenture.
A copy of the Amendment to Restructuring Agreement is available
for free at http://researcharchives.com/t/s?b43
US$55 Million Credit Facility
Certain affiliates of Global Crossing previously entered into
the Loan and Security Agreement dated as of May 10, 2006, among
Global Crossing Advanced Card Services, Inc., Global Crossing
Bandwidth, Inc. and Global Crossing Telecommunications, Inc.,
and Bank of America, N.A., as agent for the Lenders.
The Lenders have extended a credit facility in the amount of up
to US$55,000,000 for commercial letters of credit and to fund
their ongoing working capital requirements. The Loan and
Security Agreement has an initial maximum availability of
US$35,000,000. Initial advances are subject to certain state
regulatory approvals, which are expected over the next four to
five months, and to customary closing conditions.
A copy of the Loan and Security Agreement is available for fee
at http://researcharchives.com/t/s?b45
About Global Crossing
Headquartered in Florham Park, New Jersey, Global Crossing
Ltd. -- http://www.globalcrossing.com/-- provides
telecommunication services over the world's first integrated
global IP-based network, which reaches 27 countries and more
than 200 major cities around the globe including Bermuda,
Argentina, Brazil, Chile, Mexico, Panama, Peru and Venezuela.
Global Crossing serves many of the world's largest corporations,
providing a full range of managed data and voice products and
services. The company filed for chapter 11 protection on
Jan. 28, 2002 (Bankr. S.D.N.Y. Case No. 02-40188). When the
Debtors filed for protection from their creditors, they listed
US$25,511,000,000 in total assets and US$15,467,000,000 in total
debts. Global Crossing emerged from chapter 11 on Dec. 9, 2003.
As of Dec. 31, 2005, Global Crossing's balance sheet reflected a
US$173 million equity deficit compared to a US$51 million of
positive equity at Dec. 31, 2004.
GLOBAL CROSSING: Named as Juniper Networks Elite J-Partner
----------------------------------------------------------
Global Crossing disclosed that it has been named a Juniper
Networks Elite J-Partner reseller. The Juniper Networks
partnership enables Global Crossing to provide self-managed IP
VPN customers with a single point of contact for Dedicated
Internet Access or IP VPN transport, as well as for Customer
Premises Equipment.
"We offer flexible, converged IP solutions to enterprises that
want the simplicity and efficiencies of a fully managed solution
while still retaining control of their network," said Anthony
Christie, Global Crossing's chief marketing officer. "This new
partnership helps us serve the CPE and transport needs of
customers who have the IT expertise and staffing levels
necessary to build and manage their own converged IP solutions."
As an Elite Partner, Global Crossing offers Juniper Networks'
extensive portfolio of networking and security equipment,
including routers, firewalls, and intrusion detection/prevention
and application acceleration solutions. With this Elite
certification, the Global Crossing sales teams will be able to
use the global resources of Juniper's solution engineering,
implementation and support teams to promptly serve the
networking needs of customers.
"Global Crossing is a great addition to our J-Partners Program,"
said Robert Bruce, vice president, Americas Channel, Juniper
Networks. "Our teaming will enable us to serve a growing list
of customers moving to IP/MPLS-based networks with our world-
class portfolio of Juniper solutions. With our combined
synergies and IP-market focus, we can serve the rapidly
expanding demand for converged IP services from both enterprise
and carrier customers."
Global Crossing's advanced fiber-optic MPLS-based network is the
platform of choice for fully managed, converged IP services,
including Voice over IP, IP VPN and IP video. Available in more
than 600 cities in 60 countries, Global Crossing's IP VPN
solutions provide high performance and versatility, with true
global reach, scalable connectivity, multiple access options,
and flexible billing options. The solutions support the
convergence of corporate data, voice, IP video and Internet
access, all over a single connection.
In addition to consistently delivering 99.999-percent
availability -- the industry's highest standard -- Global
Crossing recently made network performance history when its
multi-gigabit fiber-optic network supported the world record in
international visualization, a 19.5-Gbps stream between
Amsterdam, the Netherlands, and San Diego, California, carrying
a single application showing real-time scientific content.
About Juniper Networks
Juniper Networks -- http://www.juniper.net-- is the leader in
enabling secure and assured communications over a single IP
network. The company's purpose-built, high performance IP
platforms enable customers to support many different services
and applications at scale. Service providers, enterprises,
governments and research and education institutions worldwide
rely on Juniper Networks to deliver products for building
networks that are tailored to the specific needs of their users,
services and applications.
About Global Crossing
Headquartered in Florham Park, New Jersey, Global Crossing
Ltd. -- http://www.globalcrossing.com/-- provides
telecommunication services over the world's first integrated
global IP-based network, which reaches 27 countries and more
than 200 major cities around the globe including Bermuda,
Argentina, Brazil, Chile, Mexico, Panama, Peru and Venezuela.
Global Crossing serves many of the world's largest corporations,
providing a full range of managed data and voice products and
services. The company filed for chapter 11 protection on
Jan. 28, 2002 (Bankr. S.D.N.Y. Case No. 02-40188). When the
Debtors filed for protection from their creditors, they listed
US$25,511,000,000 in total assets and US$15,467,000,000 in total
debts. Global Crossing emerged from chapter 11 on Dec. 9, 2003.
As of Dec. 31, 2005, Global Crossing's balance sheet reflected a
US$173 million equity deficit compared to a US$51 million of
positive equity at Dec. 31, 2004.
INTELSAT (BERMUDA): Proposes US$1.9 Bil. Senior Notes Offering
--------------------------------------------------------------
Intelsat, Ltd.'s 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 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.
Intelsat, Ltd. - http://www.intelsat.com/-- offers telephony,
corporate network, video and Internet solutions around the globe
via capacity on 25 geosynchronous satellites in prime orbital
locations. Customers in approximately 200 countries rely on
Intelsat's global satellite, teleport and fiber network for
high-quality connections, global reach and reliability.
On June 12, 2006, Moody's Investor Service affirms Intelsat
(Bermuda) Ltd.'s ratings:
-- New Guaranteed Sr. Notes: Assigned B2,
-- New Sr. Notes: Assigned Caa1, and
-- Sr. Discount Notes, due 2015: Downgraded to Caa1 from
B3 (these notes will be moved to Intelsat Intermediate
Holding Company Ltd. Upon closing of the merger).
SEA CONTAINERS: Agrees to Pay US$16.3 Million to GE SeaCo
---------------------------------------------------------
Sea Containers and GE Capital entered into a settlement
agreement on June 2 relating to their container leasing joint
venture, GE SeaCo, and the terms of the temporary provision by
Sea Containers to GE SeaCo of certain services previously
provided under the Services Agreement.
On April 28, the decision issued in the arbitration between Sea
Containers and GE Capital directed the parties to attempt to
reach agreement regarding both the amount due to GE SeaCo as a
result of certain breaches of the Services Agreement under which
Sea Containers provided services to GE SeaCo, and the amount to
be paid to GE Capital as reimbursement of its arbitration costs.
Sea Containers agreed to pay GE SeaCo a net aggregate amount of
approximately US$16.3 million, in addition to the amounts Sea
Containers had previously paid to GE SeaCo in 2005 to cure then
alleged breaches of the Services Agreement. Following
discussion with GE Capital, this amount is about US$4 million
more than the estimated recovery.
Under the settlement agreement, Sea Containers will also pay GE
Capital approximately US$1.75 million representing its
arbitration costs.
Simultaneously with the execution of the settlement agreement,
Sea Containers paid a total of US$4 million to GE SeaCo and GE
Capital. The balance (approximately US$14 million), together
with interest from June 2, will be paid in subsequent monthly
installments of US$2 million each. If the sale of the Silja
ferry business is completed before Sea Containers has paid the
full amount due GE SeaCo, the remaining balance will be paid out
of the net proceeds received from the Silja sale.
Under the arbitration decision and the settlement agreement, the
Services Agreement was terminated effective May 28, 2006.
However, Sea Containers will continue to supply certain services
to GE SeaCo on a temporary basis and be compensated
accordingly.
GE SeaCo will continue to occupy space in Sea Containers House
in London, England until at least Dec. 31, 2006. GE SeaCo has
the right to continue to occupy all or a portion of that space
during 2007, subject to Sea Containers' right to cancel for any
period after April 1, 2007, on six-months' prior notice. Sea
Containers will also continue to furnish GE SeaCo with certain
computer services through at least Sept. 30, 2006, and
continuing through 2007 at GE SeaCo's option.
Pursuant to the agreements establishing the GE SeaCo joint
venture, GE Capital has had the right to appoint a ninth member
of the GE SeaCo board of directors. On April 13, 2006, GE
Capital exercised this right and, as a result, a majority of the
GE SeaCo board is composed GE Capital appointees. GE Capital is
therefore in a position to elect GE SeaCo's officers and to
control and manage GE SeaCo's business affairs, subject to the
provisions of the GE SeaCo joint venture agreements. The
settlement agreement confirms GE Capital's right to appoint a
ninth GE SeaCo director.
GE SeaCo has withdrawn as a participant in the pension plan
maintained by Sea Containers for United Kingdom employees, and
is establishing its own pension plan specifically for GE SeaCo
employees. The settlement agreement also resolves possible
disputes between Sea Containers and GE SeaCo relating to GE
SeaCo's withdrawal from the Sea Containers pension plan and the
amounts which GE SeaCo may be required to contribute to that
plan upon its withdrawal.
GNER Update
The Company and its subsidiary Great North Eastern Railway
Limited (GNER) have decided to seek permission from the High
Court in Britain for a judicial review of the decision made by
the U.K. Office of Rail Regulation on March 23, 2006, regarding
track access applications granting open access to Grand Central
Railway Company Limited and Hull Trains Company Limited. GNER
believes these open access operators unfairly compete for
passenger traffic on portions of GNER's routes.
Sea Containers has reluctantly decided to withdraw from its
joint bid with the MTR Corporation for the new South Western
passenger rail franchise. In light of the Company's current
challenges and the need to divert senior specialist personnel
from the bid to support GNER's legal challenge against the
Office of Rail Regulation, Sea Containers feels that removing
itself from the South Western franchise competition is the
prudent step to take at this time.
About the Company
Headquartered in London, England, Sea Containers (NYSE: SCRA and
SCRB) -- http://www.seacontainers.com/-- engages in passenger
and freight transport and marine container leasing. U.S.
shareholders primarily own the Bermuda-registered company and
its common shares have been listed on the New York Stock
Exchange (SCRA and SCRB) since 1974.
As reported in TCR-Europe on May 5, Moody's Investors Service
downgraded all debt ratings of Sea Containers Ltd -- corporate
family rating to Caa1. The ratings remain under review for
possible downgrade, continuing the review that was initiated on
March 23.
On May 4, the Troubled Company Reporter-Latin America reported
that Standard & Poor's Ratings Services lowered its ratings on
Sea Containers Ltd. including lowering the corporate credit
rating to 'CCC-' from 'CCC+'. All ratings remain on CreditWatch
with negative implications; ratings were initially placed on
CreditWatch on Aug. 25, 2005, and lowered on Feb. 16, 2006, and
again on March 24, 2006.
The rating action followed the company's announcement that it is
continuing to evaluate a range of strategic and financial
alternatives, including the "appropriate level of debt capacity,
with the intent to engage the public note holders and other
stakeholders."
SEA CONTAINERS: Reports Consolidated Operating Loss at Dec. 31
--------------------------------------------------------------
Sea Containers Ltd. reported consolidated operating loss for the
year ended December 31, 2005, and the three months ended
March 31, 2006. The company said in a statement that it
continues to generate operating losses and currently has
negative cash flow.
As of May 31, 2006, Sea Container's total consolidated cash was
approximately US$183 million. This compares to US$347 million
at December 31, 2005, and US$106 million at September 30, 2005.
The increase in total consolidated cash from October 1, 2005, to
December 31, 2005 was US$241 million. This increase included
the benefit of the net proceeds from the sale of shares in
Orient-Express Hotels Ltd. of US$301 million with operating cash
inflows including working capital movements contributing US$43
million and fixed asset sale proceeds contributing another US$32
million. These receipts were partly offset by the payment of
senior secured debt of US$87 million and interest of US$24
million and net capital expenditure and other outflows of US$24
million.
The reduction in total consolidated cash from December 31, 2005,
to May 31, 2006, was US$164 million. Operating cash outflows
including working capital movement amounted to US$55 million
with scheduled repayment of senior secured debt of US$58 million
and interest of approximately US$35 million. Net capital
expenditure necessary to maintain the operating capability of
the business caused much of the remaining US$16 million
reduction.
Of the US$183 million of total consolidated cash at
May 31, 2006, only approximately US$52 million was readily
available for the Company's use as free cash. The other US$131
million of cash, was either restricted as security for Sea
Containers' obligations to third parties, or was held by
subsidiaries and cannot be remitted to the Company for various
regulatory or financial covenant reasons.
Sea Containers is considering various options to increase its
available free cash. The short-term liquidity of Sea Containers
is dependent on the successful completion of the Silja
transaction, a proposed refinancing of container assets, and/or
other potential non-operational sources of funds. Sufficient
short term liquidity is also dependent on there continuing to be
no acceleration of repayment of debt facilities in default and
for the present, at least, the retention of part of the OEH
share sale proceeds.
Financial Statements
As announced on May 1, 2006, the Company remains unable to file
its 2005 Form 10-K annual report, including its audited 2005
consolidated financial statements, as it has not completed its
internal processes with respect to applicable certifications.
The Company's external professional advisers are assisting the
Board in completing these processes as expeditiously as
practicable. Because of the 10-K delay, the filing of the
Company's first quarter 2006 Form 10-Q has also been delayed.
Public Note Indentures
The Company's public note indentures contain a covenant
requiring it to maintain consolidated tangible net worth of at
least US$175 million. As noted above, the Company has not
completed its internal processes to finalize its financial
statements for the year ended December 31, 2005 or for the first
quarter ended March 31, 2006. Because the consolidated tangible
net worth calculation is based on the financial statements, the
Company will not be in a position to confirm whether it has been
in compliance with this covenant until the financial statements
are finalized. The calculation is subject to adjustment for
events up to the date of 10-K and 10-Q filing, of which the most
significant is continuing change in the estimated net sale value
of ferry assets held for disposal at December 31, 2005,
including Silja. These continuing adjusting events could result
in the consolidated tangible net worth of the Company being at
less than US$175 million as of December 31, 2005, but this
matter cannot be confirmed until the relevant financial
statements are finalized.
The Company's public note indentures also contain a covenant
requiring that net proceeds from asset sales be applied to the
payment of debt or the investment in replacement assets within
six months of receipt of the net proceeds. Thereafter, under
the covenant, any remaining net proceeds must be applied to an
offer to purchase outstanding public notes. In addition, the
Company's indenture for the public notes maturing in 2012
contains a specific covenant for the application of the proceeds
of sale of the OEH shares.
Of the net proceeds received from the sale of OEH shares, the
Company has applied approximately US$200 million as required in
the indentures, and estimates that it will have approximately
US$100 million of excess proceeds at the time the indenture
covenant requires the Company to make an excess proceeds offer.
The approximate US$52 million balance of the Company's "free
cash" at May 31, 2006, however, includes these US$100 million
excess proceeds. Consequently the Company has decided to retain
the OEH share sale proceeds unless it determines that they or a
portion of them are not needed to fund operations during the
coming months. A failure to make an excess proceeds offer would
constitute a default under the public note indentures.
Further to the Company's May 1, 2006, news release, Sea
Containers' management is finalizing its business plan,
including an assessment of the appropriate level of debt
capacity and appropriate range of values of the Company.
Management continues to explore a range of appropriate strategic
and financial alternatives, which may include a restructuring of
the Company's obligations under the public notes. To facilitate
discussions with its public note holders and implementation of
any of these alternatives, the Company has signed a
confidentiality agreement with a law firm and with a financial
advisor, each of whom will act in the interest of the public
note holders in discussions with the Company.
Sea Containers can give no assurance as to the results of any
restructuring including the impact upon creditors and equity
holders. The Company is currently unable to confirm whether it
expects to pay the US$115 million principal amount of 10-3/4%
senior notes due on October 15, 2006. Payment may not be made
unless the Company expects that it will also be able to pay in
full when due its other public notes maturing in 2008, 2009 and
2012 and all other unsecured creditors including potential
significant pension liabilities.
Secured Credit Facilities
The Company remains in default under many of its secured credit
facilities due to breaches of certain financial covenants and
other requirements contained in these facilities. The Company's
secured and other credit facilities also generally include
cross-default provisions so that non-compliance with a covenant
in one secured credit facility constitutes a default under
substantially all other credit facilities. The Company is
continuing discussions with its lenders regarding waivers,
amendments and forbearances to address pending and prospective
defaults. No lender has taken any action to exercise remedies
in respect of any events of default and many lenders have signed
forebearance agreements effective through the end of June.
GNER Update
The Company and its subsidiary Great North Eastern Railway
Limited have decided to seek permission from the High Court in
Britain for a judicial review of the decision made by the U.K.
Office of Rail Regulation on March 23, 2006 regarding track
access applications granting open access to Grand Central
Railway Company Limited and Hull Trains Company Limited. GNER
believes these open access operators unfairly compete for
passenger traffic on portions of GNER's routes.
Sea Containers has reluctantly decided to withdraw from its
joint bid with the MTR Corporation for the new South Western
passenger rail franchise. In light of the Company's current
challenges and the need to divert senior specialist personnel
from the bid to support GNER's legal challenge against the
Office of Rail Regulation, Sea Containers feels that removing
itself from the South Western franchise competition is the
prudent step to take at this time.
Management believes that EBITDA (net earnings adjusted for net
finance costs, tax, depreciation, amortization and the
investment in equity investees other than GE SeaCo) is a useful
measure of operating performance, to help determine the ability
to incur capital expenditure or service indebtedness, because it
is not affected by non-operating factors such as leverage and
the historic cost of assets. However, EBITDA does not
represent cash flow from operations as defined by U.S. generally
accepted accounting principles, is not necessarily indicative of
cash available to fund all cash flow needs and should not be
considered as an alternative to earnings from operations under
U.S. generally accepted accounting principles for purposes of
evaluating results of operations.
Sea Containers, Ltd. -- http://www.seacontainers.com-- is a
Bermuda registered company with regional operating offices in
London, Genoa, New York City, Rio de Janeiro, Singapore and
Sydney. The company provides passenger and freight transport
and marine container leasing. The company operates in four
segments: Ferry, Rail, Container, and Leisure.
* * *
As reported on May 4, 2006, Standard & Poor's Ratings Services
lowered its ratings on Sea Containers Ltd. including lowering
the corporate credit rating to 'CCC-' from 'CCC+'. All ratings
remain on CreditWatch with negative implications; ratings were
initially placed on CreditWatch on Aug. 25, 2005, and lowered on
Feb. 16, 2006, and again on March 24, 2006.
The rating action followed the company's announcement that it is
continuing to evaluate a range of strategic and financial
alternatives, including the "appropriate level of debt capacity,
with the intent to engage the public note holders and other
stakeholders."
=============
B O L I V I A
=============
* BOLIVIA: Discusses with Andean Community New Course of Action
---------------------------------------------------------------
Bolivia met with fellow members of the Andean community trade
alliance or CAN on June 13 in Quito, Ecuador, to plan a new
course for the pact in the absence of Venezuela, Dow Jones
Newswires reports.
Dow Jones recalls that President Chavez had withdrawn his
country from the alliance in May after Colombia and Peru signed
free trade accords with the United States. The Venezuelan
President had declared CAN dead.
Dow Jones relates that CAN also seeks to go for a free trade
accord with the European Union as well as an extension of trade
preferences granted by the US in 1991.
CAN members are:
-- Peru,
-- Ecuador,
-- Bolivia, and
-- Colombia.
* * *
Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.
* * *
Fitch Ratings assigned these ratings on Bolivia:
Rating Rating Date
------ -----------
Country Ceiling B- Jun. 17, 2004
Long Term IDR B- Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating B- Dec. 14, 2005
* BOLIVIA: Moody's Places E Financial Strength Ratings on Banks
---------------------------------------------------------------
Uncertainties in the economic environment continue to constrain
the financial strength and credit ratings of the Bolivian
banking system, leaving them with a stable outlook, Moody's
Investors Service says in its annual report on the nation's
banks.
According to the rating agency, the low bank financial strength
rating for Bolivia's banking system, E, reflects the country's
still-fragile political and social situations, as well as
uncertainties about the specifics of the new government's
economic program.
Moody's fears that a change in economic policies
-- could hurt foreign-direct investment;
-- a key driver of 2005's economic activity and export
expansion; and
-- such a policy shift could also affect the loan growth and
asset-quality improvements observed in 2005.
Moody's points out that intermediation activity -- and therefore
the banking system's overall strength -- remains highly
vulnerable to the operating environment.
"However, in 2005," Moody's says, "the banking sector did prove
to be resilient to the social and political crises that had
begun in March 2005." These crises led to the resignation of
then-president Carlos Mesa in June 2005. "Surprisingly," the
rating agency notes, "throughout these troubled months there
were no significant decreases in deposit levels; between
February and March 2005, deposits only slipped 1%."
According to Moody's, the results for 2005 were thus positive
for the banking system as a whole. "Only two banks posted
losses, and gross loans increased 6.9%," the report says,
"pointing to a modest turnaround of the banking industry's
performance."
Moody's sees that the bank's asset quality has continued
strengthening, and that liquidity levels remain high. "Upward
pressure on the average bank financial strength rating would
require the consolidation of this trend, as well as considerable
-- and sustainable -- improvements in fundamentals," the report
concludes.
===========
B R A Z I L
===========
BRASKEM: Selects Meridium to Provide Integrated Asset Management
----------------------------------------------------------------
"Braskem has chosen Meridium to be our integrated asset
performance management system," said Luis Mario Chavez, Braskem
Reliability Manager.
According to Mr. Chavez, Meridium can help Braskem to increase
its competitiveness. Braskem believes Meridium functionality
dovetails with the company's corporate objectives of
guaranteeing availability and reliability and preserving the
safety and integrity of Braskem's people, its environment as
well as its facilities.
Meridium is the leader in asset performance management (APM)
software and consulting solutions. Over the next year, Meridium
will provide software and services to implement its APM solution
at Braskem to reduce cost and equipment downtime, extend
shutdown intervals, and optimize PM schedules through
sustainable reliability work processes.
In choosing Meridium, Braskem considered a number of factors,
one of the most critical of which was Meridium's partnership
with SAP applications, which are the main tool in "Formula
Braskem," an integrated business management project with an
estimated NPV of US$113 MM in five years.
"Given Meridium's tight integration to mySAP(R) Business Suite,
Braskem has made the strategic decision to choose Meridium based
on the increased asset management functionality afforded by the
combined solution," said Stefan Lepecki, Formula Braskem
Director.
Bonz Hart, Meridium founder and Chief Executive Officer, stated,
"We're pleased to be working with an industry leader such as
Braskem that puts a high priority on operational excellence.
Braskem recognizes that, during increasingly competitive times,
reliability and availability initiatives must align with
business objectives in order to be successful and profitable."
About Meridium
Meridium, Inc. -- http://www.meridium.com-- is the leader in
asset performance management software and consulting solutions
for industries including refining, chemicals and power. With
Meridium, companies can achieve predictable production capacity
without additional capital expense by increasing reliability and
improving the performance of their production assets.
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.
CELPA: Gets US$216.9-Mil. Loan for Electricity System Upgrade
-------------------------------------------------------------
The President of the Inter-American Development Bank, Luis
Alberto Moreno, and representatives of two private companies in
Brazil and participant banks signed loans and guarantees for
US$216.9 million dollars in financing for Centrais Eletricas do
Para S.A. or CELPA to support the expansion and upgrading of its
electricity distribution systems.
The company's Chief Executive Officer Evandro Cesar Camillo
Coura, Chief Financial Officer Carmen Campos Pereira, and
counsel Alexei Marcorin Vivan signed the loan documents. On
behalf of participant banks, officers signing were Banco Itau
Europa, S.A. Representative Jorge Bedran Jettar, and Societe
Generale Director Daniel Mallo.
CELPA was created as a state-owned company to supply electricity
to Para state and later privatized in the late 1990s through a
public bidding process won by Grupo Rede. The company is
presently among Rede's largest concessionaries with a 30-year
renewable concession granted at the time of privatization.
Grupo Rede is one of the largest private companies operating in
Brazil's energy sector for generation, distribution and trade of
electricity and its distribution companies cover approximately
30 per cent of the country's territory. Rede currently supplies
electricity to around 2.7 million connections in the states of
Para, Tocantins, Mato Grosso, Sao Paulo, Minas Gerais and
Parana. It is completely owned by Brazilian capital.
The IDB loan will help finance CELPA's 2005-2007 investment
program for capital expenditures of US$593.3 million dollars
that will allow the company to provide electricity to new
customers in rural and urban areas, achieve productivity gains
and reduce costs and improve the quality and reliability of its
distribution network system.
CELPA distributes electricity to the entire state of Para and
50% of its 1,287,000 residential customers are low-income
consumers. Its new program will target additional rural low-
income populations. The population of the state is 6.7 million.
The project will reduce the risk of energy shortages and
interruptions in the system, increase electricity coverage, and
improve living standards of the population.
The IDB financing includes an "A-loan" of up to US$75 million
dollars from the Bank's ordinary capital and a syndicated loan,
the "B-loan", of up to US$141.9 million dollars, consisting of
resources from financial institutions that subscribe
participation agreements with the IDB.
* * *
As previously reported on Jan. 23, 2006, Standard and Poor's
gave a corporate credit rating of 'B-' to Centrais Eletricas do
Para S.A. with a stable outlook.
CEMAT: Inks US$114.5-Million Financing Pact With IDB
----------------------------------------------------
The President of the Inter-American Development Bank, Luis
Alberto Moreno, and representatives of two private companies in
Brazil and participant banks signed loans and guarantees for
US$114.5 million dollar financing to Centrais Eletricas
Matogrossenses S.A. or CEMAT to support the expansion and
upgrading of its electricity distribution systems.
The company's Chief Executive Officer Evandro Cesar Camillo
Coura, Chief Financial Officer Carmen Campos Pereira, and
counsel Alexei Marcorin Vivan signed the loan documents. On
behalf of participant banks, officers signing were Banco Itau
Europa, S.A. Representative Jorge Bedran Jettar, and Societe
Generale Director Daniel Mallo.
CEMAT was created as a state-owned company to supply electricity
to Mato Grosso state and later privatized in the late 1990s
through a public bidding process won by Grupo Rede. The company
is presently among Rede's largest concessionaries with a 30-year
renewable concession granted at the time of privatization.
Grupo Rede is one of the largest private companies operating in
Brazil's energy sector for generation, distribution and trade of
electricity and its distribution companies cover approximately
30 per cent of the country's territory. Rede currently supplies
electricity to around 2.7 million connections in the states of
Para, Tocantins, Mato Grosso, Sao Paulo, Minas Gerais and
Parana. It is completely owned by Brazilian capital.
CEMAT is an electricity generation and distribution company that
serves the state of Mato Grosso that has a population of 2.7
million inhabitants. It currently serves 772.890 clients.
The company has a 2005-2007 investment program of $316.8 million
dollars to expand and modernize its electrical network and
business management support systems. It will expand its high-
voltage distribution lines, rural and urban electrification,
renovate the distribution lines and improve the distribution
system quality.
The IDB financing includes an "A-loan" of up to US$75 million
dollars from the Bank's ordinary capital and a syndicated loan,
the "B-loan", of up to US$39.5 million dollars from financial
institutions that subscribe participation agreements with the
IDB.
* * *
As previously reported on Dec. 6, 2005, Standard & Poor's
Ratings Services assigned its 'B-' foreign and local currency
corporate credit ratings to the Brazilian energy distribution
companies Centrais Eletricas Matogrossenses S.A. and Centrais
Eletricas do Para S.A. in its global scale. S&P said the outlook
is stable.
In addition, Standard & Poor's assigned its 'B-' foreign
currency rating to the companies' jointly issued six-year US$100
million unconditional, unsubordinated and unsecured senior note
units.
DRESSER-RAND: Moody's Ups Corp. Family & Sr. Debt Ratings to Ba3
----------------------------------------------------------------
Moody's Investors Service upgraded Dresser-Rand Group, Inc.'s
ratings, including its corporate family rating from B1 to Ba3,
its senior secured bank debt from B1 to Ba3, and its senior
subordinate notes from B3 to B2, with a stable ratings outlook.
DRC is a long-standing leading manufacturing and fabrication
firm providing primarily large-scale rotating process equipment
and after-market services to the worldwide oil and natural gas
production, crude oil refining, petrochemicals, and other
process industries. The company operates globally with
manufacturing facilities in:
-- the United States,
-- France,
-- Germany,
-- Norway,
-- India and
-- Brazil.
Retention of the stable outlook, if not the ratings, likely
requires DRC to sustain its aggressive debt reduction pattern
through 2006 in order to prepare for inevitably softening sector
conditions. While oil prices remain historically strong through
2006, U.S. natural gas price realizations at the wellhead appear
close to impairing the unit economics of some of the important
new natural gas production play concepts in the U.S. that could
eventually impede the pace at which new surface production
infrastructure is installed. Additionally, regarding DRC's
comparatively weaker equity market performance relative to its
peers, the new ratings also would not support equity buybacks
this year.
The upgrade to Ba3 reflects:
-- very substantial debt and leverage reduction since DRC's
US$1.2 billion acquisition from Ingersoll-Rand by First
Reserve Energy in 2004,
-- a current record order backlog for compression and other
equipment,
-- still favorable booking trends,
-- rising demand for aftermarket services, and
-- overall improvement in DRC's credit metrics during strong
up-cycle sector conditions.
The ratings are supported by a degree of cyclical dampening
provided by the after-market parts and services, DRC's long-
standing client alliances, and the mission critical nature of
its products and services. The ratings also reflect other
conditions supportive of the demand for DRC's products and
services. These include supportive oil prices at least through
2006, rising compression and other equipment orders for the
downstream refining segment of the industry that should be less
sensitive to oil and gas prices, and new product lines
responding to the secular demand for quieter, environmentally
sensitive, more energy efficient equipment.
The ratings are restrained by comparatively low EBIT margins
arising largely from DRC's product mix, the firm's modest size
and comparatively narrow product line, low EBIT returns on
assets and capital, and still fairly full leverage on EBITDA in
spite of extended very strong up-cycle conditions.
Moody's estimates approximately:
-- US$60 million of 2006 adjusted interest expenses;
-- US$40 million to US$50 million of working capital needs;
and
-- US$12 to US$15 million of budgeted capital expenditures.
At the end of the first quarter 2006, DRC had US$59 million of
cash on hand and US$150 million of secured bank revolver
availability taking into account almost US$200 million of
letters of credit. This provides DRC with sufficient liquidity
for growth capital outlays and modest acquisitions. Moody's
expects the company will continue to de-lever through free cash
flow, and expect 2006 year-end Adjusted Debt to be under US$600
million fully-loaded for operating leases and unfunded pension
obligations.
Moody's does not envision any positive ratings moves in the
foreseeable future in the absence of well-bought, heavily common
equity funded, acquisitions that add diversification and reduce
DRC's cyclicality. The ratings may be pressured if DRC does not
continue reducing leverage, if it buys back stock, or if it
completes debt-funded acquisitions without equal portions of
common equity. Furthermore, internal control weaknesses could
result in extended filing delays, investigations or financial
restatements that are material to our analysis and may be viewed
as a credit negative event.
Dresser-Rand Group, Inc. is headquartered in Houston, Texas.
GOL LINHAS: Fitch Puts BB Rating on US$200-Mil. 8.75% Bond
----------------------------------------------------------
Fitch assigned a rating of 'BB' to GOL Linhas Aereas
Inteligentes S.A.'s outstanding US$200 million 8.75% perpetual
bond. In addition, Fitch has assigned:
-- National Scale Rating of 'AA-(bra)' with Stable Outlook,
-- Local Currency Issuer Default Rating of 'BB+'- with
Stable Outlook, and
-- Foreign Currency IDR of 'BB-' with Positive Outlook.
GOL's ratings reflect its position as the leading low cost, low
fare airline in South America. The company's low cost structure
allows it to offer low fares, which has been attractive to air
travelers, and has enabled GOL to help grow the market as well
as rapidly increase its market share and load factors since it
launched operations in January 2001. GOL's strategy of
operating a single aircraft type combined with its highly
integrated route network has allowed the company to maintain
high asset utilization rates and achieve one of the lowest cost
structures in the industry, while continuing to grow its
profitability. The company's operates a modern and fuel-
efficient fleet with lease expiration dates timed to the
delivery schedule of its firm purchase order for 67 737-800NG
aircraft, which provides flexibility in capacity management.
GOL's financial profile is sound and credit metrics are expected
to remain stable over the medium term.
GOL's competitive advantages and solid profitability are
underpinned by its business model, which utilizes a single fleet
type of Boeing 737s and a multi-stop route system that allows it
to operate with a very low cost structure. The company's highly
integrated route network of short-to-medium haul flight
segments, 700 km on average, allows the fleet to operate in the
a highly fuel efficient manner given the range of the fleet.
Operating a modern, single fleet type reduces costs by lowering
spare parts inventory, aircraft down time and pilot, mechanics
and crew training.
The route and yield management system allows the company to
offer low fares, which in turn have attracted new, price
sensitive travelers that have increased load factors to more
than 73.5% in 2005, as well as allowing the company to serve
cities that otherwise would not be economically viable;
currently, more than 50% of the GOL's passengers pass through or
connect in route to their final destination. The highly
integrated nature of the route network reduces connection times
and increases aircraft utilization. GOL's aircraft average 11
segments and 14 block hours per day. These factors have resulted
in one of the industries' lowest break-even load factors of
52.3%.
GOL's business strategy has proven successful. Over the last
five years, revenue has dramatically grown to approximately
BRL2.7 billion in 2005 from BRL230 million in its first year of
operation in 2001. At the same time, market share has grown to
27.3% from 4.7% over the same period. GOL's dramatic growth has
come at the expense of other higher cost market participants,
including now defunct VASP, and financially troubled Varig. The
company has also benefited from the economic recovery in Brazil
and the Brazilian market as the demand for flights increased by
approximately 35% between 2003 and 2005.
Profitability has also improved due to the company's low cost
sales distribution. The company sells more than 80% of its
tickets over the Internet and approximately 30% directly to
customers, which significantly lowers GDS costs and sales
commissions. Since 2001, selling expenses have dropped to 12.5%
in 2005 from 15.3% of revenues. GOL became profitable in 2002
and since that time, operating and net profit margins rapidly
improved and averaged approximately 26% and 19%, respectively,
over the last two years; net profit has improved to BRL513
million in 2005 from BRL35 million in 2002.
GOL operates in a small but growing market, which is dominated
by three carriers, TAM, GOL and Varig. Recent industry growth
has been helped by a recovery in the economy as well as the
introduction of the low cost carrier concept with the
introduction of GOL, helped to stimulate market demand in a
country with relatively low disposable income and high price
sensitivity. GOL estimates 8 million passengers in Brazil
currently use air travel compared with a potential market of
more than 20 million. Since 2003, the industry has undergone
strong modifications with the exit of VASP and the rise of other
new companies, i.e., TAM and GOL. Following the economic
downturn during 2002-03, the Brazilian government now more
closely monitors and controls system capacity by only granting
new landing slots at each airport in the country based on supply
and demand.
GOL's balance sheet and leverage are solid for the rating
category. At December 2005, the majority of the company's debt
obligations were lease-related resulting in a total adjusted
debt of US$829 million. Leverage as measured by total adjusted
debt to EBITDAR was 2.2x at year-end 2005. Liquidity is solid
with US$420.2 million of cash and short-term investments and
approximately US$185 million of dollar equivalent revolving
credit lines at March 31, 2006. On-balance-sheet debt totaled
only US$248 million after adjusting for the perpetual bond
placed in April 2006.
Over the next few years, on balance sheet debt is expected to
grow dramatically as GOL pursues its ambitious five-year capital
expenditure program of approximately US$2.4 billion. The
company has a firm aircraft purchase order for the acquisition
of 67 Boeing 737-NG800 with scheduled deliveries between 2006
and 2012, and an option for an additional 34 over the same
period. More than 85% of the aircraft expenditure is expected
to be financed with low cost EXIM guaranteed debt. The capex
program is expected to modestly pressure credit protection
measures with total adjusted debt to EBITDAR ranging between
2.5-3.5x over the next few years. Over the same period, EBITDAR
to interest expense plus lease expense is expected to range
between 3.0x-4.0x. Credit protection measures are expected to
remain solid for the rating category.
The new aircraft will increase available seats by about 18% on
average per year and support the expansion of GOL's domestic
operations as well as incorporation of new international routes
within South America. By the 2010, the fleet is expected to
reach 88 aircraft excluding additional option increases, a net
addition of 56 aircraft and a net fleet increase of 41; 53 are
expected to be owned and 35 are expected to be leased. The
purchase of the aircraft will also allow the company to decrease
the average age of its fleet as well as lower fuel and
maintenance costs associated with these newer, more efficient
aircraft. All of GOL's existing aircraft leases expire over the
next five years, which provides the company with substantial
flexibility to adjust capacity as they take deliveries of the
new purchased aircraft. Over the five-year period, GOL is
expecting to allow 14 aircraft leases expire while renewing the
remainder of the leases.
GOL faces industry-related risks, including:
-- revenue volatility,
-- high operating leverage,
-- fuel price volatility and
-- competitive threats.
The competitive environment for passenger operations has become
gradually more challenging as strong traffic has driven
competitors to add capacity, which could potentially pressure
operations.
GOL is a low cost, low fare airline operating in South America
that provides frequent service on routes connecting Brazil's
major cites and South American cities. The company operates 47
single class Boeing 737 aircraft with an average age of 8.7
years. For the first quarter ending March 31, 2006, GOL had a
Brazilian market share of 28.8%, a load factor of 69.3%, and a
break-even load factor of 52.3%. In 2005, revenues totaled
US$1.1 billion and net income was US$219.3 million.
TELE NORTE: Posts BRL144 Mil. First Quarter 2006 Net Income
-----------------------------------------------------------
Telemar aka Tele Norte Leste Participacoes SA said in its
earnings statement that its consolidated net income dropped 25%
to BRL144 million in the first quarter of 2006, compared to the
same quarter in 2005.
Business News Americas relates that the company's net operating
revenues in this year's first quarter fell 3% to BRL4.06
billion.
Carlos Constantini, an analyst at Deutsche Bank Equity Research,
said in a research note, "Telemar reported slightly weaker-than-
expected 1Q06 results, due to the combination of different cost
items that came in above our forecasts."
According to BNamericas, Telemar's net Ebitda was BRL1.49
billion with a margin of 36.6% in the first quarter of 2006. In
last year's first quarter, it recorded BRL1.67 billion with a
margin of 41.7%.
"Stripping out two one-time events that affected profitability
(handset inventory write-off and one-time provision related to
regulatory requirements), the adjusted Ebitda was just 2% below
our forecast. We think numbers should have marginal impact on
the stock and maintain our current buy rating," Mr. Constantini
told BNamericas.
Telemar, says BNamericas, had about 14.7 million fixed line
users, and 896,000 ADSL subscribers in the first quarter of
2006. Net ADSL additions were 91,000 or 61.7%.
* * *
As reported in the Troubled Company Reporter on May 26, 2006,
Standard & Poor's Ratings Services disclosed that its 'BB' l
long-term corporate credit ratings on Brazil-based integrated
telecommunications carrier Telemar Norte Leste S.A. and its
holding company Tele Norte Leste Participacoes S.A. remain on
CreditWatch with positive implications, where they were placed
on Feb. 28, 2006. The national scale rating assigned to three
local debentures issued by Telemar Participacoes S.A. (Tele
Norte's holding company) also remain on CreditWatch with
positive implications.
* * *
As reported in the Troubled Company Reporter on May 29, 2006,
Fitch Ratings has taken these rating actions for Tele Norte
Leste Participacoes S.A. and Telemar Norte Leste S.A.:
Tele Norte Leste Participacoes:
-- International scale local currency issuer default rating
upgraded to 'BBB-' from 'BB+' with Stable Outlook;
-- International scale foreign currency IDR affirmed at 'BB-'
with Positive Outlook;
-- National scale rating upgraded to 'AA+(bra)' from
'AA-(bra)' with Stable Outlook; and
-- BRL1.3 billion local debenture issuance upgraded to
'AA+(bra)' from 'AA-(bra)' with Stable Outlook.
Telemar Norte Leste S.A.:
-- International scale local currency IDR affirmed at 'BBB-'
with Stable Outlook;
-- International scale foreign currency IDR affirmed at 'BB-'
with Positive Outlook; and
-- National scale rating upgraded to 'AA+(bra)' from
'AA(bra)' with Stable Outlook.
===========================
C A Y M A N I S L A N D S
===========================
AHFP HALCYON: Creditors Must File Proofs of Claim by June 29
------------------------------------------------------------
AHFP Halcyon's creditors are required to submit proofs of claim
by June 29, 2006, to the company's liquidators:
Dwight Dube
Mike Hughes
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the June 29 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
AHFP LEGEND: Proofs of Claim Must be Filed by June 29
-----------------------------------------------------
AHFP Legend's creditors are required to present proofs of claim
by June 29, 2006, to the company's liquidators:
Dwight Dube
Mike Hughes
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
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 any distribution that the company will make.
The company began liquidating assets on May 10, 2006.
AQUILA ALTERNATIVE: Final Shareholders Meeting Held Yesterday
-------------------------------------------------------------
Aquila Alternative Investments held its final shareholders
meeting yesterday, June 14, 2006 at:
Ansbacher House
2nd Floor, #20 Genesis Close
PO Box 31910 SMB, George Town
Grand Cayman, Cayman Islands
These were taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
The liquidator can be reached at:
Tammy W. Seymour
Attention: Angela Nightingale
dms Corporate Services Ltd.
Ansbacher House, P.O. Box 31910 SMB
Grand Cayman , Cayman Islands
Tel: (345) 946-7665
Fax: (345) 946-7666
ARGENT NIM 2003-N6: Sets July 14 as Last Day to File Claims
-----------------------------------------------------------
Argent Nim 2003-N6's creditors are required to submit
proofs of claim by July 14, 2006, to the company's liquidators:
Chris Watler
Emile Small
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 14 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Argent Nim's shareholders agreed on May 12, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision).
ARGENT NIM 2003-N8: Proofs of Claim Filing Ends on July 14
----------------------------------------------------------
Argent Nim 2003-N8's creditors are required to submit
proofs of claim by July 14, 2006, to the company's liquidators:
Chris Watler
Emile Small
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 14 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Argent Nim's shareholders agreed on May 12, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision).
ARGENT NIM 2004-WN4: Creditors Must Present Claims by July 14
-------------------------------------------------------------
Argent Nim 2004-WN4's creditors are required to present proofs
of claim by July 14, 2006, to the company's liquidators:
Chris Watler
Emile Small
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 14 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
ATHOLYS INC: Creditors Must File Proofs of Claim by July 1
----------------------------------------------------------
Atholys Inc.'s creditors are required to submit by July 1, 2006,
proofs of claim to the company's liquidators:
S.L.C. Whicker
K.D. Blake
KPMG, Grand
Cayman, Cayman Islands
Tel: 345-949-4800
Fax: 345-949-7164
Creditors who are not able to comply with the July 1 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Atholys Inc.'s sole shareholder placed the company on May 17,
2006, on voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Peter de Vere
P.O. Box 493 George Town
Grand Cayman, Cayman Islands
Tel: 345-914-4334
Fax: 345-949-7164
BAYES CAPITAL: Proofs of Claim Filing Will End on July 14
---------------------------------------------------------
Bayes Capital Tactical Equity Fund Ltd.'s creditors are required
to prove their claims by July 14, 2006, to the company's
liquidator at:
Richard L. Finlay
Conyers Dill & Pearman, Cayman
P.O. Box 2681 George Town
Grand Cayman, Cayman Islands
Creditors are required to send by the July 14 deadline 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.
Parties-in-interest may contact:
Krysten Lumsden
P.O. Box 2681, George Town
Grand Cayman, Cayman Islands
Tel: (345) 945-3901
Fax: (345) 945-3902
BIBBY INT'L: Last Day to File Proofs of Claim Is on June 25
-----------------------------------------------------------
Bibby International Services (Maritime) (Cayman Islands)
Limited's creditors are required to submit proofs of claim by
June 25, 2006, to the company's liquidator:
Martyn Howard
10 Mountain View, Ballaugh
Isle of Man, IM7 5EW
Creditors who are not able to comply with the June 25 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Bibby International's shareholders agreed on May 2, 2006, for
the company's voluntary liquidation under Section 135
of the Companies Law (2004 Revision).
CHESS INC: Last Day to File Proofs of Claim Is on July 1
--------------------------------------------------------
Chess Inc.'s creditors are required to submit by July 1, 2006,
proofs of claim to the company's liquidators:
S.L.C. Whicker
K.D. Blake
KPMG, Grand
Cayman, Cayman Islands
Tel: 345-949-4800
Fax: 345-949-7164
Creditors who are not able to comply with the July 1 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Chess Inc.'s sole shareholder placed the company on
May 17, 2006, on voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Peter de Vere
P.O. Box 493 George Town
Grand Cayman, Cayman Islands
Tel: 345-914-4334
Fax: 345-949-7164
CV TRANSPORTATION: Proofs of Claim Filing Will End on June 27
-------------------------------------------------------------
CV Transportation Services L.D.C.'s creditors are required to
submit proofs of claim by June 27, 2006, to the company's
liquidator:
Benjamin Greenspan
C/o Maples and Calder, Attorneys at Law
P.O. Box 309, George Town
Ugland House, South Church Street
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the June 29 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Parties-in-interest may contact:
Benjamin Greenspan
c/o Greenspan, 620 Laguna
Road, Mill Valley, California 94941
Fax: 1-415-358-4780
ENSCO CORONADO: Shareholder Declares Company's Liquidation
----------------------------------------------------------
Ensco Coronado Limited's sole shareholder decided on
May 18, 2006, to place the company in voluntary liquidation
under the Cayman's Companies Law (2004 Revision).
Herman E. Malone, Jr. at Maples and Calder was appointed as
liquidator to facilitate the winding up of Ensco Coronado's
business.
The liquidator can be reached at:
Herman E. Malone, Jr.
Maples and Calder
P.O. Box 309, George Town
Grand Cayman, Cayman Islands
ENSCO CORONADO: Last Day to File Proofs of Claim Is on July 10
--------------------------------------------------------------
Ensco Coronado Limited's creditors are required to submit
proofs of claim by July 10, 2006, to the company's liquidator:
Herman E. Malone, Jr.
Maples and Calder
P.O. Box 309 George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 10 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Ensco Coronado's shareholders agreed on May 18, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision).
ELENA AIRCRAFT: Sets July 7 for Final Shareholders Meeting
----------------------------------------------------------
Shareholders of Elena Aircraft Leasing Co. Ltd. will gather on
July 7, 2006, for a final general meeting at:
Cargolux Airlines International S.A.
Luxembourg Airport, L-2990 Luxembourg
Grand Duchy, of Luxembourg
Accounts on the company's liquidation process will be presented
during the meeting.
The company's liquidators can be reached at:
Michel Schaus
Cargolux Airlines International S.A.
Luxembourg Airport, L-2990 Luxembourg
Grand Duchy of Luxembourg
Tel: (011-352) 4211-3358
Fax: (011-352) 4211-3748
HAMMERMAN COUNTERPOINT: Sets Final General Meeting on July 19
-------------------------------------------------------------
Shareholders of Hammerman Counterpoint Fund, Ltd will gather on
July 19, 2006, for a final general meeting at:
RSM Cayman Islands
7 Dr. Roy's Drove, 2nd Floor, Commerce House
P.O. Box 1370 George Town
Grand Cayman, Cayman Islands
Accounts on the company's liquidation process will be presented
during the meeting. The shareholders will also authorize the
liquidators to retain the records of the company for a period of
five years, starting from the dissolution of the company.
Destruction of the records may then be allowed after such
period.
Any person who is entitled to attend and vote at this meeting
may appoint a proxy to attend and vote in his stead. A proxy
need not be a member or a creditor.
The company's liquidator can be reached at:
Kenneth M. Krys
Attention: Joanna Chong
P.O. Box 1370 George Town
Grand Cayman, Cayman Islands
Tel: (345) 949-7100
Fax: (345) 945-7120
NEW DIMENSION: Final General Meeting Is Scheduled for July 14
-------------------------------------------------------------
New Dimension Limited will hold its annual general meeting
at 10:00 a.m. on July 14, 2006, at:
Close Brothers (Cayman) Limited
4th Floor Harbour Place, George Town
Grand Cayman, Cayman Islands
These will be discussed during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Linburgh Martin
Susan Lo Yee Har
Attention: Thiry Gordon
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
O, W & W HOLDINGS: Declares Voluntary Liquidation of Business
-------------------------------------------------------------
O, W & W Holdings Limited's sole shareholder decided on
May 26, 2006, to place the company in voluntary liquidation
under the Cayman's Companies Law (2004 Revision).
Law Yui Lun and Wong Man Chung Francis at Maples and Calder were
appointed as liquidators to facilitate the winding up of O, W &
W Holding's business.
The liquidators can be reached at:
Law Yui Lun
Wong Man Chung Francis
Attention: Joannah Bodden
Maples and Calder
P.O. Box 309, George Town
Grand Cayman, Cayman Islands
O, W & W HOLDINGS: Filing of Proofs of Claim Ends on July 10
-----------------------------------------------------------
O, W & W Holdings Limited's creditors are required to
submit proofs of claim by July 10, 2006, to the company's
liquidators, Law Yui Lun and Wong Man Chung Francis:
Creditors who are not able to comply with the July 10 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Parties-in-interest may contact:
Joannah Bodden
Maples and Calder
P.O. Box 309, George Town
Grand Cayman, Cayman Islands
SECURITISED ASSETS: Filing of Proofs of Claim Ends on June 30
-------------------------------------------------------------
Securitised Assets Fund's creditors are required to submit
proofs of claim by June 30, 2006, to the company's liquidator:
Emil Nguy
Francis Tjia
Suites 3311-3313
Two International Finance Centre
8 Finance Street
Central, Hong Kong
Creditors who are not able to comply with the June 30 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Securitised Assets' shareholders agreed on May 10, 2006, for the
company's voluntary liquidation under Section 135
of the Companies Law (2004 Revision).
UOB KAY: Final Shareholders Meeting Set for July 3
--------------------------------------------------
Shareholders of Uob Kay Hian Petroleum Fund will gather for a
final meeting on July 3, 2006, at 11:00 a.m. at:
101 Cecil Street
#16-05 Tong Eng Building
Singapore 069533
Accounts on the company's liquidation process will be presented
during the meeting.
Parties-in-interest may contact the liquidator at:
Anthony Loong Sie Hock
c/o ASH Loong & Co.
101 Cecil Street
#16-05 Tong Eng Building
Singapore 069533
VIALTA INT'L: Holding Final General Meeting on July 6
-----------------------------------------------------
Vialta International, Inc., will hold its annual general meeting
at 10:00 a.m. on July 4, 2006, at:
Close Brothers (Cayman) Limited
4th Floor, Harbour Place, George Town
Grand Cayman, Cayman Islands
These will be discussed during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator 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
WILKEN USA: Creditors Have Until July 14 to File Proofs of Claim
----------------------------------------------------------------
Wilken U.S.A. Select Fund's creditors are required to
submit proofs of claim by July 14, 2006, to the company's
liquidator:
G. Jan Willem Noltes
c/o Wilken Capital Management LLC
Peachtree-Lenox Building
3379 Peachtree Road N.E., Suite 825
Atlanta, Georgia, U.S.A 30326
Creditors who are not able to comply with the July 14 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Wilken U.S.A.'s shareholders agreed on May 15, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision).
=========
C H I L E
=========
FRESH DEL MONTE: S&P Affirms Corporate Credit Rating at BB
----------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Cayman
Islands-based Fresh Del Monte Produce Inc. to negative from
stable. Existing ratings on the company, including the 'BB'
corporate credit rating, were affirmed. About US$434 million
total debt was outstanding at March 31, 2006.
"The outlook revision reflects weak performance that has
persisted for the past two fiscal quarters, and is expected to
continue into the second quarter of 2006," said Standard &
Poor's credit analyst Alison Sullivan. Importantly, Fresh Del
Monte typically generates a substantial majority of its annual
gross profit during the first two quarters of the year, which
could depress credit measures for the remainder of fiscal 2006.
The company has been negatively affected by challenging industry
conditions, including higher fuel and production costs.
The ratings on Fresh Del Monte reflect its participation in the
highly variable, commodity-oriented fresh fruit and vegetable
industry, which is affected by uncontrollable factors such as
global supply, political risk, weather, and disease. Mitigating
these concerns are the company's leading positions in the
production, marketing, and distribution of fresh produce.
Product concentration remains a rating concern due to the high
sales and earnings concentration from bananas and pineapples.
However, Fresh Del Monte is looking for ways to diversify within
the produce industry, for example, by expanding into branded
fresh-cut fruit and vegetables, and growing internationally.
Sales outside North America represented about 52% of 2005
consolidated sales. Standard & Poor's expects Fresh Del Monte
to continue investing in diversification without adding
significant debt.
Del Monte Fresh Produce Company Produce has 3 distribution
centers in Latin America (Argentina, Brazil, Chile) that provide
a variety of services including ripening, sorting, repacking,
fresh-cut processing, and delivery.
===============
C O L O M B I A
===============
ECOPETROL: Awards Operating Concessions for Two Fields
------------------------------------------------------
Ecopetrol, the state-run oil company of Colombia, has awarded
two operating concessions for two fields, Business News Americas
reports.
BNamericas relates that the concession for the Guarimena field
was given to local firm Petrotesting while the field of Hato
Nuevo was granted to a consortium of Venezuela's Empesa and
Colombia's NCT.
BNamericas states that Guarimena covers about 10,676 hectares in
the Huila department, in the upper Magdalena basin. Hato Nuevo
covers 525 hectares in the Casanare department in the Llanos
basin.
Ecopetrol said in a statement that the fields made up the third
round of the state company's discovered undeveloped and inactive
fields (CDND/I) bidding process.
According to Ecopetrol, eight firms had submitted bids.
* * *
Fitch assigned a BB rating on Ecopetrol's foreign currency long-
term debt.
ECOPETROL: Helping Ecuador Decide on Operating Occidental Fields
----------------------------------------------------------------
Ecopetrol, Colombia's state-owned oil company, will help the
government of Ecuador to decide on how to operate the oil fields
confiscated from US firm Occidental Petroleum Corp., Dow Jones
Newswires reports.
Ivan Rodriguez, the energy minister of Ecuador, told Dow Jones,
"This advice will help us see what we have to do to maintain
(oil) production and (also) if it's possible to raise it. We
have to move quickly, but I can't give a timeframe."
According to Dow Jones, Ecopetrol will give technical assistance
to the Ecuadorean government.
Ecopetrol will also advise Ecuador on reforming state-run
Petroecuador, Mr. Rodriguez told reporters.
Dow Jones relates that Ecuador will then decide whether
Petroecuador should operate the fields on its own or with the
help of another Latin American state oil firm.
Ecopetrol and Chile's ENAP have expressed interest in operating
the fields, Dow Jones states.
* * *
Fitch assigned a BB rating on Ecopetrol's foreign currency long-
term debt.
* * *
Fitch Ratings assigned these ratings on Ecuador:
Rating Rating Date
------ -----------
Country Ceiling B- Aug. 29, 2005
Long Term IDR B- Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
* COLOMBIA: Meets CAN Members to Plan on New Course for Group
-------------------------------------------------------------
Colombia met with fellow members of the Andean community trade
alliance or CAN on June 13 in Quito, Ecuador, to plan a new
course for the pact in the absence of Venezuela, Dow Jones
Newswires reports.
Dow Jones recalls that President Chavez had withdrawn his
country from the alliance in May after Colombia and Peru signed
free trade accords with the United States. The Venezuelan
president had declared CAN dead.
Dow Jones relates that CAN also seeks to go for a free trade
accord with the European Union as well as an extension of trade
preferences granted by the US in 1991.
CAN members are:
-- Peru,
-- Ecuador,
-- Bolivia, and
-- Colombia.
* * *
Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.
* * *
Colombia's ratings affirmed by Fitch are:
-- Foreign currency Issuer Default Rating (IDR) 'BB';
-- Local currency Issuer Default Rating (IDR) 'BBB-';
-- Country Ceiling 'BB';
-- Short-term 'B'.
* COLOMBIA: Relaxes Foreign Investment Policy to Revive Market
--------------------------------------------------------------
Colombia has scrapped a foreign investment requirement amid a
decrease in the country's stock market and a weakening of its
currency, Bloomberg News reports.
Prior to the lifting of the requirement, foreign investors were
required to keep their money in Colombia for at least a year
before it can enter the market. The policy was imposed in
December 2004 to cut short-term investment and curb a rally in
peso, Bloomberg says.
The policy discouraged investors, Juan Pablo Corboda, the stock
market president, told Bloomberg.
"Now that the peso is weakening these limits aren't needed,"
Nuno Camara, an economist at Dresdner Kleinwort Wasserstein,
told Bloomberg. "I don't think it will have much effect on
bringing new investments into Colombia now, in the same way it
didn't help in curbing peso back then. Risk aversion is the
main driver at the moment."
Industry analysts quoted by Bloomberg believe that interest
rates are what's scaring investors away.
* * *
Colombia's ratings affirmed by Fitch are:
-- Foreign currency Issuer Default Rating (IDR) 'BB';
-- Local currency Issuer Default Rating (IDR) 'BBB-';
-- Country Ceiling 'BB';
-- Short-term 'B'.
===================
C O S T A R I C A
===================
SCOTIABANK INVERLAT: Interfin Buy Cues Moody's to Affirm Ratings
----------------------------------------------------------------
Moody's Investors Service affirmed the ratings and outlook of
the Bank of Nova Scotia (Scotiabank -- long-term deposits at
Aa3, bank financial strength at B, stable outlook) following the
announcement that the bank reached an agreement to acquire 78%
of Corporacion Interfin, S.A., the parent of Banco Interfin,
S.A. Scotiabank will merge Interfin with its Costa Rican
subsidiary, Scotiabank de Costa Rica S.A.
In affirming the ratings, Moody's noted that the Interfin /
Scotiabank Costa Rica combination will hold an 8% deposit share,
making it the leading private bank in Costa Rica. This standing
indicates that the merged institution will enjoy a level of
market presence that more closely resembles that of Scotiabank's
Canadian and Caribbean franchises. In the past, Moody's has
expressed concern about the low market presence at Scotiabank's
other Latin American franchises. In Moody's opinion, small banks
with low franchise value in volatile economies are more
susceptible to periods of stress.
Moody's also indicated that despite its enhanced franchise in
Costa Rica, Scotiabank would continue to face important country
risk challenges, including the relatively high dollarization of
the financial system and the inherent risks associated with the
absence of a true lender of last resort. Like the other private
banks in Costa Rica, Interfin / Scotiabank Costa Rica must also
contend with competition from the state-owned banks, which not
only hold dominant market shares but also benefit from the
State's full guarantee on their deposits.
Moody's stated that Scotiabank's equity investment in Latin
America is well above 10% of its tangible common equity, an
exposure pinpointed in prior research as being as a source of
downward rating pressure. While the rating agency views this
exposure as a concentration risk, it does not result in
immediate negative rating pressure because the correlation
between the bank's largest Latin American subsidiary -- Mexico-
based Scotiabank Inverlat (foreign currency bank deposits at
Baa1, stable outlook) -- and its other South American
subsidiaries is declining as Mexico's integration with the North
American economy deepens. Nonetheless, additional acquisitions
in Latin America or Mexico would increase Scotiabank's
concentration risk in these two regions and could ultimately
result in a downgrade of Scotiabank's bank financial strength
rating (currently at B).
Upward rating pressure could emerge if Scotiabank improved its
risk-adjusted profitability and asset quality performance and
reduced exposure to corporate banking outside Canada where its
competitive advantage is low. Negative rating pressure could
emerge if asset quality deteriorates beyond expectations. The
deterioration would need to be of an order such that
approximately one year's earnings would be insufficient to
address the asset quality problems.
The Bank of Nova Scotia is headquartered in Toronto, Canada.
Its assets total CDN$357 billion as of April 30, 2006.
* COSTA RICA: Holds Bilateral Talks with Taiwan's Dr. Tan
---------------------------------------------------------
The Costa Rica Trade and Economic Mission held talks on banking,
financial and tourism with Dr. Elton See Tan -- the Chairman of
the Board of Asia Trust and Investment Corporation, Taiwan
Headlines reports.
Taiwan Headlines relates that Dr. Tan told the Economic Mission
about the operation of Asia Trust and gave a guided tour of the
company's headquarters.
According to Taiwan Headlines, Dr. Tan said that there are many
similarities between Costa Rica and Taiwan. Among them is the
propensity of their citizens to work extremely hard.
"For all the emphasis that is now being placed on investment, it
is but one aspect of a multi-faceted approach to expanding
relations between the two countries," Dr. Tan told Taiwan
Headlines.
Taiwan Headline states that Asia Trust's business activities
include:
-- trust funds,
-- credit granting,
-- securities business,
-- investments in real estate,
-- bond trading,
-- United Credit Card, VISA, MasterCard, JCB, credit card
services, and
-- other financial related businesses.
* * *
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
===================================
AES CORP: Dominican Unit Receives Natural Gas Shipment
------------------------------------------------------
AES Andres, AES Corporation's one million barrel tank LNG
terminal and 310 megawatt combined-cycle power plant in the
Dominican Republic, received on June 13 the 135 cubic meters of
natural gas from Trinidad and Tobago to fuel up for the next two
months, Dominican Today reports.
According to Dominican Today, the natural gas was shipped by
freight ship British Merchant.
Dominican Today relates that it was the second shipment to
arrive this year, mainly caused by price decreases in the global
markets.
As reported in the Troubled Company Reporter on June 12, 2006,
AES Andres was shut down due to low fuel availability. The
Energy Consortium or CDEEE had said that various energy plants
have gone out of service because of lack of fuel and mechanical
failures, resulting to blackouts. According to CDEEE, the
energy supply that had been serviced at an 80% capacity suffered
a reduction of 285 megawatts on Wednesday when the AES Andres
plant stopped operating.
AES Corporation (NYSE:AES) -- 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, 2006,
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.
As reported in the Troubled Company Reporter on March 31, 2006,
Standard & Poor's Ratings Services raised its corporate credit
rating on 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, 2006,
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.
* DOMINICAN REPUBLIC: FTA Delay May Result to Loss of Contracts
---------------------------------------------------------------
Many free zone factories could lose contracts if the
implementation of the DR-CAFTA or the Dominican Republic-Central
America-United States Free Trade Agreement is delayed, the
president of the National Chamber of the Textile Industry or
CANAINTEX told the DR1 Newsletter.
As reported in the Troubled Company Reporter on June 9, 2006,
the Dominican Republic's Chamber of Commerce and Production had
said that employment opportunities at the Industrial Park of the
Duty-Free Zone in Santiago would be reduced if the DR-CAFTA
would be postponed.
The trade pact has a provision for Mexico-manufactured inputs to
enter the Dominican Republic and be transformed and later
exported duty-free to the US, Hoy newspaper states, citing
Rafael Zaga Kalach, a Mexican businessman.
According to DR1, there is a five-year spread for this
exemption. The Dominican Republic is given time to reach a free
trade accord with Mexico.
What is important is to integrate the Western Hemisphere to
compete with Asia, Mr. Kalach told DR1.
* * *
The Troubled Company Reporter - Latin America reported on
May 9, 2006, that Fitch Ratings upgraded these debt and issuer
Default Ratings of the Dominican Republic:
-- Long-term foreign currency Issuer Default Rating
to B from B-;
-- Country ceiling upgraded to B+ from B-;
-- Foreign currency bonds due 2006 to B-/RR4 from CCC+/RR4;
-- Foreign currency Brady bonds due 2009 to B/RR4
from B-/RR4;
-- Foreign currency bonds due 2011 to B/RR4 from B-/RR4;
-- Foreign currency bonds due 2013 to B-/RR4 from CCC+/RR4;
-- Foreign currency bonds due 2018 to B/RR4 from B-/RR4; and
-- Foreign currency collateralized Brady bonds due 2024
to B+/RR3 from B/RR3.
Fitch also affirmed these ratings:
-- Long-term local currency Issuer Default Rating: B; and
-- Short-term Issuer Default Rating: B.
Additionally, Fitch assigned a debt and Recovery Rating to this
issue:
-- Foreign currency bonds due 2027: B/RR4.
Fitch said the rating outlook for the long-term foreign and
local currency IDRs is Stable.
* DOMINICAN REPUBLIC: Inks Investments Promotion Pact with Italy
----------------------------------------------------------------
The government of the Dominican Republic has signed an accord
with its Italian counterpart to protect and promote investments
between the countries, Dominican Today reports.
Dominican Today relates that Carlos Morales Troncoso -- the
foreign relations minister of the Dominican Republic -- and
Giorgo Sfara, the ambassador of Italy, endorsed the agreement.
The two governments aim to establish conditions favorable for
intensifying cooperation between their countries as well as
revitalizing private enterprise, Dominican Today states.
Ambassador Sfara told Dominican Today that to strengthen legal
bindings, it is necessary to negotiate an accord to avoid
duplicate tax charges.
Italian investment in the Dominican Republic is greater than
US$1,000 million, Dominican Today relates, citing Minister
Troncoso.
* * *
The Troubled Company Reporter - Latin America reported on
May 9, 2006, that Fitch Ratings upgraded these debt and issuer
Default Ratings of the Dominican Republic:
-- Long-term foreign currency Issuer Default Rating
to B from B-;
-- Country ceiling upgraded to B+ from B-;
-- Foreign currency bonds due 2006 to B-/RR4 from CCC+/RR4;
-- Foreign currency Brady bonds due 2009 to B/RR4
from B-/RR4;
-- Foreign currency bonds due 2011 to B/RR4 from B-/RR4;
-- Foreign currency bonds due 2013 to B-/RR4 from CCC+/RR4;
-- Foreign currency bonds due 2018 to B/RR4 from B-/RR4; and
-- Foreign currency collateralized Brady bonds due 2024
to B+/RR3 from B/RR3.
Fitch also affirmed these ratings:
-- Long-term local currency Issuer Default Rating: B; and
-- Short-term Issuer Default Rating: B.
Additionally, Fitch assigned a debt and Recovery Rating to this
issue:
-- Foreign currency bonds due 2027: B/RR4.
Fitch said the rating outlook for the long-term foreign and
local currency IDRs is Stable.
* DOMINICAN REPUBLIC: Starts Construction of Highway to Haiti
------------------------------------------------------------
The government of the Dominican Republic launched the
construction of a highway that would connect the country to
Haiti, Onofre Rojas, the state secretary, told news service Hoy
Digital.
Business News Americas relates that the RD-Haiti highway would
link Haiti's Cap Haitienne to the Dominican Republic's Dajabon.
The project, says BNamericas, includes a customs terminal for
the control of goods circulating between the Dominican Republic
and Haiti. The project also includes:
-- a bridge over the river Masacre,
-- check points for immigration control,
-- parking areas,
-- green areas,
-- a lighting system, and
-- a market to facilitate commercial trade in Dajabon.
Construction is expected to conclude by the end of 2007 or at
the start of 2008. Costing about US$56.7 million, the works are
mostly being funded by grants from the European Union, with a
small part coming from Dominican Republic state counterpart
funding, BNamericas states.
* * *
The Troubled Company Reporter - Latin America reported on
May 9, 2006, that Fitch Ratings upgraded these debt and issuer
Default Ratings of the Dominican Republic:
-- Long-term foreign currency Issuer Default Rating
to B from B-;
-- Country ceiling upgraded to B+ from B-;
-- Foreign currency bonds due 2006 to B-/RR4 from CCC+/RR4;
-- Foreign currency Brady bonds due 2009 to B/RR4
from B-/RR4;
-- Foreign currency bonds due 2011 to B/RR4 from B-/RR4;
-- Foreign currency bonds due 2013 to B-/RR4 from CCC+/RR4;
-- Foreign currency bonds due 2018 to B/RR4 from B-/RR4; and
-- Foreign currency collateralized Brady bonds due 2024
to B+/RR3 from B/RR3.
Fitch also affirmed these ratings:
-- Long-term local currency Issuer Default Rating: B; and
-- Short-term Issuer Default Rating: B.
Additionally, Fitch assigned a debt and Recovery Rating to this
issue:
-- Foreign currency bonds due 2027: B/RR4.
Fitch said the rating outlook for the long-term foreign and
local currency IDRs is Stable.
=============
E C U A D O R
=============
* ECUADOR: Discusses with Andean Community New Course for Group
---------------------------------------------------------------
Ecuador met with fellow members of the Andean community trade
alliance or CAN on June 13 in Quito, Ecuador, to plan a new
course for the pact in the absence of Venezuela, Dow Jones
Newswires reports.
Dow Jones recalls that President Chavez had withdrawn his
country from the alliance in May after Colombia and Peru signed
free trade accords with the United States. The Venezuelan had
declared CAN dead.
Dow Jones relates that CAN also seeks to go for a free trade
accord with the European Union as well as an extension of trade
preferences granted by the US in 1991.
CAN members are:
-- Peru,
-- Ecuador,
-- Bolivia, and
-- Colombia.
* * *
Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.
* * *
Fitch Ratings assigned these ratings on Ecuador:
Rating Rating Date
------ -----------
Country Ceiling B- Aug. 29, 2005
Long Term IDR B- Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
* ECUADOR: Ecopetrol to Help Decide on Occidental Fields
--------------------------------------------------------
The government of Ecuador will be provided with assistance from
Ecopetrol, Colombia's state-owned oil company, on deciding how
to operate the oil fields confiscated from US firm Occidental
Petroleum Corp., Dow Jones Newswires reports.
Ivan Rodriguez, the energy minister of Ecuador, told Dow Jones,
"This advice will help us see what we have to do to maintain
(oil) production and (also) if it's possible to raise it. We
have to move quickly, but I can't give a timeframe."
According to Dow Jones, Ecopetrol will give technical assistance
to the Ecuadorean government.
Ecopetrol will also advise Ecuador on reforming state-run
Petroecuador, Mr. Rodriguez told reporters.
Dow Jones relates that Ecuador will then decide whether
Petroecuador should operate the fields on its own or with the
help of another Latin American state oil firm.
Ecopetrol and Chile's ENAP have expressed interest in operating
the fields, Dow Jones states.
* * *
Fitch assigned a BB rating on Ecopetrol's foreign currency long-
term debt.
* * *
Fitch Ratings assigned these ratings on Ecuador:
Rating Rating Date
------ -----------
Country Ceiling B- Aug. 29, 2005
Long Term IDR B- Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
=====================
E L S A L V A D O R
=====================
SPECTUM BRANDS: S&P Affirms Corporate Credit Rating at B-
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings on
Spectrum Brands Inc., including the 'B-' corporate credit
rating. At the same time, the ratings were removed from
CreditWatch, where they were placed with negative implications
April 6, 2006, following the company's substantially lowered
earnings guidance for the second quarter. The rating outlook is
negative. Approximately US$2.3 billion of debt is affected by
this action.
"The ratings affirmation is based on the company's successful
amendment of its bank facility, which provides further covenant
relief as Spectrum continues to focus on stabilizing its
operations," said Standard & Poor's credit analyst Patrick
Jeffrey. "However, the revised covenants are expected to result
in some tightness in the near term, and step-up provisions will
require the company to begin to stabilize its operations over
the next few quarters to avoid further covenant violations."
Spectrum Brands has amended its bank facility twice since
December 2005 as a result of poor operating performance. "The
ratings could be lowered in the near term if the company's
liquidity further weakens as a result of its operating
challenges," noted Mr. Jeffrey.
The ratings on Atlanta, Ga.-based Spectrum Brands reflect:
-- the company's poor operating performance over the past
year (which has affected its liquidity);
-- high leverage; and
-- very aggressive acquisition history.
These risks are offset somewhat by the company's leading market
positions in many of its business segments.
=============
G R E N A D A
=============
* GRENADA: Vulnerable to Oil Price Increase
-------------------------------------------
Grenada has been said to be among countries that are most
vulnerable to an oil price hike, according to a report from Bear
Stearns -- a leading global investment banking, securities
trading and brokerage firm.
Trinidad Guardian relates that other nations that are in the
same situation as Grenada are:
-- Barbados,
-- Belize, and
-- Jamaica.
According to the Trinidad Guardian, the price of oil is
predicted to increase to US$100 from US$70 a barrel.
Trinidad Guardian relates that oil prices for 2006 have been 15%
to 20% higher than the 2005 average. The increase in oil price
resulted to a higher import bill and lowered real disposable
income.
Most policymakers in Central America and the Caribbean had a
laissez-faire approach to the spike in oil prices over the past
four years and saw the boost as short term, Bear Stearns
reports.
Bear Stearns states, "We believe that policymakers have few, if
any, contingency plans for a sudden spike in oil prices, to say,
US$100 per barrel. Most are just hoping it doesn't happen."
* * *
As reported by the Troubled Company Reporter on March 21, 2006,
Standard & Poor's Ratings Services affirmed its 'B-' long-term
and 'C' short-term sovereign credit ratings on Grenada. S&P
said the outlook on the long-term ratings remains stable.
The ratings on Grenada are constrained by large government debt,
which, at an estimated 118% of GDP in 2006 (98% of GDP on a net
basis), is one of the highest among the 110 sovereigns rated by
Standard & Poor's. The debt burden has been partly alleviated
by the restructuring completed in November 2005, which extended
the maturity of roughly US$261 million (or 44% of the total) in
debt to 2025 and reduced the interest payment by more than half,
to about 2.5% of GDP in 2006.
=================
G U A T E M A L A
=================
* GUATEMALA: Launches Construction of Power Link with Mexico
------------------------------------------------------------
Guatemala began constructing an electric power line connecting
it with Mexico, Dow Jones Newswires reports.
According to Dow Jones, Mexico's President Vicente Fox and his
Guatemalan counterpart, Oscar Berger, attended the launching
ceremony in Tapachula.
As reported in the Troubled Company Reporter on June 8, 2006,
Fernando Canales, Mexico's energy minister, said that the power
interconnection is part of the Mesoamerican energy integration
program or PIEM. The transmission line between Mexico and
Guatemala is expected to result to a reduction of power
generation costs in the region and a more rational use of
present-day installed capacity.
Dow Jones states that the high-voltage line will run between
Tapachula, Chiapas, and Retaleleu, Guatemala. Its construction
will cost about US$40 million.
Dow Jones relates that the construction of the power link
between the two nations is the first step toward a 1,830
kilometer interconnected power system for Central America, which
is one of the goals of an energy-integration project being
worked out between Mexico and the nations in the region.
Mr. Berger told Dow Jones, "This interconnection opens the door
to establishing a regional electricity market and creates growth
opportunities for countries that need to develop to meet the
fundamental economic and social rights of their people."
* * *
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+
* * *
As reported in the Troubled Company Reporter on April 17, 2006,
Standard & Poor's Ratings Services placed an mxBB+ long-term
rating on the state of Mexico. S&P said the outlook is stable.
===============
H O N D U R A S
===============
* HONDURAS: Spain Okays EUR2.1 Mil. Loan for Canal Maintenance
--------------------------------------------------------------
The government of Honduras obtained a EUR2.1 million loan from
Spain for the maintenance of its aqueducts, according to a
report posted in Spain's industry, tourism and commerce ministry
Web site.
Business News Americas relates that the financing falls under
the funding of FAD, Spain's development promotion fund.
The loan, says BNamericas, would be spent in buying more
equipment to be used in the aqueducts. It would be payable over
17 years, with a seven-year grace period and a 0.2% annual
interest rate.
* * *
Moody's Investor Service assigned these ratings on Honduras:
Rating Rating Date
------ -----------
Senior Unsecured B2 Sept. 29, 1998
Long Term IDR B2 Sept. 29, 1998
=============
J A M A I C A
=============
* JAMAICA: Vulnerable to Oil Price Increase
-------------------------------------------
Jamaica has been said to be among countries that are most
vulnerable to an oil price hike, according to a report from Bear
Stearns -- a leading global investment banking, securities
trading and brokerage firm.
Trinidad Guardian relates that other nations that are in the
same situation as Grenada are:
-- Barbados,
-- Belize, and
-- Grenada.
According to Trinidad Guardian, the price of oil is predicted to
increase to US$100 from US$70 a barrel.
Trinidad Guardian relates that oil prices for 2006 have been 15
to 20% higher than the 2005 average. The increase in oil price
resulted to a higher import bill and lowered real disposable
income.
Most policymakers in Central America and the Caribbean had a
laissez-faire approach to the spike in oil prices over the past
four years and saw the boost as short term, Bear Stearns
reports.
Bear Stearns states, "We believe that policymakers have few, if
any, contingency plans for a sudden spike in oil prices, to say,
US$100 per barrel. Most are just hoping it doesn't happen."
* * *
On May 26, 2006, Moody's Investors Service upgraded Jamaica's
rating under a revised foreign currency ceiling:
-- Long-term foreign currency rating: Ba3 from B1 with
stable outlook.
===========
M E X I C O
===========
DELTA MILLS: Amends Terms of US$40 Million GMAC Credit Facility
---------------------------------------------------------------
Delta Mills, Inc., entered into an amended and restated credit
facility with GMAC Commercial Finance, LLC, as agent and as
lender, on May 30, 2006.
Delta Mills' factoring arrangement with GMAC was also amended
and restated, including an extension of its term to
May 30, 2009. The credit facility consists of a US$40 million
credit facility, of which up to US$9 million may potentially be
advanced as term loans. The facility will terminate on
May 30, 2009, and earlier prepayment and termination will
generally require the payment of a premium.
The maximum revolving loan amount is the lesser of US$40
million, as reduced by the US$9 million term loan maximum amount
until the end of the term loan commitment period, and by the
amount of any outstanding term loans and a borrowing base
calculation consisting of
-- up to 90% of eligible accounts receivable; and
-- up to the lesser of 50% of the lower of cost or market
of eligible inventory or US$15 million, less:
a) an availability block of up to US$7 million, and
b) less such reserves as are determined from time to
time by GMAC.
If any term loans are outstanding, the amount of those term
loans will create an additional reserve against the borrowing
base. The revolving credit facility includes a US$2 million
sublimit for letters of credit. Proceeds of revolving loans may
be used for working capital purposes and general corporate
purposes and to pay for the fees and expenses of the
transaction. Revolving loans will bear interest at prime plus
2.75% per annum.
The purpose of the term loan facility is to fund purchases of
Delta Mills' 9-5/8% Senior Notes due 2007. The maximum amount
of outstanding term loans is US$9 million. Term loans will bear
interest at prime plus 4% per annum. The term loan facility
includes a multiple draw feature with the proceeds to fund
purchases of Senior Notes at a discount satisfactory to GMAC,
and term loans may be prepaid without penalty (but may not be
re-borrowed) under the terms of the credit facility.
Any permitted draws under the term loan facility must be made
prior to the end of the term loan commitment period, which
extends to the earlier of March 31, 2007, and the date on which
all Senior Notes have been repurchased. Term loans will
amortize monthly based on a five-year level principal
amortization schedule. The amount of outstanding term loans
forms a reserve against Delta Mills' borrowing base.
The amended and restated credit agreement includes provisions
relating to the grant of liens to the agent in additional
personal and real property assets of Delta Mills. However,
because this grant was conditioned on the consummation of the
offer to purchase Senior Notes that commenced on April 17, 2006,
and the Offer was not consummated, these provisions are
currently without effect.
The amended and restated credit agreement contains minimum
12-month trailing EBITDA requirements, as well as restrictions
on future stock repurchases, dividends, capital expenditures,
investments and sales of assets. In certain circumstances,
proceeds of assets sales will be required to repay outstanding
amounts under the credit facility. Events of default under the
credit facility include the circumstance of any Senior Notes
remaining outstanding on March 31, 2007, as well as other
standard events of default.
A copy of the amended and restated credit agreement is available
for free at http://researcharchives.com/t/s?b52
About Delta Mills
Delta Mills, Inc., a wholly owned subsidiary of Delta Woodside
Industries, Inc. (OTCBB:DLWI) -- http://www.deltawoodside.com/
-- produces a broad range of finished apparel fabrics in four
manufacturing plants in South Carolina. Delta Mills sells and
distributes its fabrics through a marketing office in New York
City, with sales agents also operating from Atlanta, Chicago,
Dallas, Los Angeles, San Francisco and Mexico.
* * *
Going Concern Doubt
KPMG LLP in Greenville, South Carolina, raised substantial doubt
about Delta Mills, Inc.'s ability to continue as a going concern
after auditing the Company's consolidated financial statements
for the year ended July 2, 2005. The auditor pointed to the
Company's recurring losses from operations and uncertainties
with regard to its ability to operate within the covenants and
availability established by its revolving credit facility with
GMAC Commercial Finance LLC.
GENERAL MOTORS: S&P Maintains Ratings on Negative Watch
-------------------------------------------------------
Standard & Poor's Ratings Services said that all of its ratings
on General Motors Corp., including its 'B' long-term and 'B-3'
short-term corporate credit ratings, will remain on CreditWatch
with negative implications, where they were placed on
March 29, 2006.
The CreditWatch update follows the announcement that Delphi
Corp., the United Auto Workers or UAW, and GM have reached an
agreement to increase the number of employees covered by buyout
and attrition programs for Delphi's hourly UAW workers. GM
would bear the majority of costs, which are as yet undetermined
because aggregate costs will be based on acceptance rates under
the various programs as well on the costs of any offers made to
Delphi's non-UAW unions. Standard & Poor's does not expect any
increase in the number of UAW-represented Delphi employees
permitted to transfer to GM.
"The expanded offering further lessens the risk that a work
stoppage at Delphi could eventually occur," said Standard &
Poor's credit analyst Robert Schulz, "although crucial issues
such as GM's obligations under benefit guarantees and Delphi's
request to reject unprofitable supply contracts remain
unresolved." The rating agency does not currently expect the
bankruptcy court to need to rule that Delphi can reject the
labor and benefits contracts because we expect a negotiated
resolution of these issues. But failure to reach a consensual
solution, if that leads to a possible court-approved contract
rejection and then to a potential prolonged Delphi work
stoppage, would have a catastrophic effect on GM.
Court hearings on Delphi's motion to reject its labor contracts
have now been adjourned until Aug. 11, and hearings on Delphi's
request to reject unprofitable supply contracts with GM have
also been postponed until Aug. 11. Standard & Poor's expects
negotiations between Delphi, the UAW, and GM to continue,
however.
GM's ratings could remain on CreditWatch for several more
months. Still, Standard & Poor's could lower GM's ratings at any
time if evolving events at Delphi warrant--and an interim
downgrade is possible prior to resolution of the CreditWatch.
GRUPO MEXICO: Workers at Cananea Mine Continue Demonstrations
-------------------------------------------------------------
Grupo Mexico's Cananea copper mine workers decided to continue
demonstrations, which started on June 1, until an elected union
director is recognized, Chemical Business Newsbase reports.
The workers, according to Newsbase, also demand full payment of
their wages during the strike as well as the release of four
arrested members of the union.
As reported in the Troubled Company Reporter on June 12, 2006,
Grupo Mexico had threatened to shut down its Cananea copper mine
if the strike would continue. The workers at the mine had
walked out of their job when the company refused half of them a
day off to celebrate the 100th anniversary of a historic 1906
strike at the mine.
Grupo Mexico said that the mine is using its nonunionized staff
to continue production at the Cananea mine. The managerial
staff operated the concentrator and SX-EW copper refining system
using already mined material.
The National Mining and Metal Workers Union has been in conflict
with the Mexican government over the union leadership since
March 24. Labor authorities maintained that dissident Elias
Morales is the leader and not Napoleon Gomez Urrutia, whom the
union has ratified. Mr. Urrutia, currently in Canada, is being
investigated on allegations of misuse of US$55 million Grupo
Mexico handed for distribution among workers in 2004 as part of
the 1990 privatization of Cananea and La Caridad.
Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--
through its ownership of Asarco and the Southern Peru Copper
Company, Grupo Mexico is the world's third largest copper
producer, fourth largest silver producer and fifth largest
producer of zinc and molybdenum.
* * *
Fitch Ratings assigned these ratings to Grupo Mexico SA de C.V.:
-- foreign currency long-term debt, BB; and
-- local currency long-term debt, BB.
J.L. FRENCH: Court Approves Varnum Riddering as Special Counsel
---------------------------------------------------------------
J.L. French Automotive Castings, Inc., and its debtor-affiliates
obtained permission from the U.S. Bankruptcy Court for the
District of Delaware to employ Varnum, Riddering, Schmidt, &
Howlett LLP as their special counsel.
Varnum Riddering is expected to advise the Debtors and their
boards of directors with respect to:
a) general corporate matters (not including bankruptcy);
b) non-bankruptcy commercial matters;
c) pending litigation;
d) labor and employee benefit plans; and
e) environmental matters.
A full-text copy of the Compensation Rates of Varnum Riddering's
Professionals is available for free at:
http://ResearchArchives.com/t/s?b4f
Michael Wooldridge, a partner at Varnum Riddering, assures the
Court that Miller Buckfire is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code and
does not hold or represent any interest adverse to the Debtors'
estates.
About J.L. French
Headquartered in Sheboygan, Wisconsin, J.L. French Automotive
Castings, Inc. -- http://www.jlfrench.com/-- is one of the
world's leading global suppliers of die cast aluminum components
and assemblies. There are currently nine manufacturing
locations around the world including plants in the United
States, United Kingdom, Spain, and Mexico. The company has
fourteen engineering/customer service offices to globally
support its customers near their regional engineering and
manufacturing locations. The Company and its debtor-affiliates
filed for chapter 11 protection on Feb. 10, 2006 (Bankr. D. Del.
Case No. 06-10119 to 06-06-10127). James E. O'Neill, Esq.,
Laura Davis Jones, Esq., and Sandra G.M. Selzer, Esq., at
Pachulski Stang Ziehl Young & Jones, and Marc Kiesolstein, P.C.,
at Kirkland & Ellis LLP, represent the Debtors in their
restructuring efforts. Miller Buckfire & Co., LLC, serves as
their financial advisor. Ricardo Palacio, Esq., and William
Pierce Bowden, Esq., at Ashby & Geddes, PA, represents the
Official Committee Of Unsecured Creditors. When the Debtor
filed for chapter 11 protection, it estimated assets and debts
of more than US$100 million.
MERIDIAN AUTOMOTIVE: Wants Until Nov. 1 to File Removal Notices
---------------------------------------------------------------
Meridian Automotive Systems, Inc., and its debtor-affiliates ask
the U.S. Bankruptcy Court for the District of Delaware to
further extend the period within which they may file notices of
removal of prepetition civil actions to Nov. 1, 2006.
According to Robert S. Brady, Esq., at Young Conaway Stargatt &
Taylor, LLP, in Wilmington, Delaware, an extension will give the
Debtors more time to make fully informed decisions concerning
removal of each pending prepetition civil action and will assure
that the Debtors do not forfeit their rights under Section 1452
of the Judiciary and Judicial Procedures Code.
Mr. Brady tells the Court that the rights of the Debtors'
adversaries will not be prejudiced by an extension because any
party to a prepetition action that is removed may seek to have
it remanded to the state court pursuant to Section 1452(b).
The Debtors further ask the Court to approve their request
without prejudice to:
(a) any position they may take regarding whether Section 362
of the Bankruptcy Code applies to stay any civil action
pending against them; and
(b) their right to seek further extensions.
Headquartered in Dearborn, Mich., Meridian Automotive Systems,
Inc. -- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck manufacturers.
Meridian operates 22 plants in the United States, Canada and
Mexico, supplying Original Equipment Manufacturers and major
Tier One parts suppliers. The Company and its debtor-affiliates
filed for chapter 11 protection on April 26, 2005 (Bankr. D.
Del. Case Nos. 05-11168 through 05-11176). James F. Conlan,
Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan
Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S.
Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq.,
and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor,
LLP, represent the Debtors in their restructuring efforts. Eric
E. Sagerman, Esq., at Winston & Strawn LLP represents the
Official Committee of Unsecured Creditors. The Committee also
hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti,
Biden & Balick, P.A., to prosecute an adversary proceeding
against Meridian's First Lien Lenders and Second Lien Lenders to
invalidate their liens. When the Debtors filed for protection
from their creditors, they listed US$530 million in total assets
and approximately US$815 million in total liabilities.
(Meridian Bankruptcy News, Issue No. 28; Bankruptcy Creditors'
Service, Inc., 215/945-7000).
MERIDIAN AUTOMOTIVE: Wants Watson Wyatt as Actuary
--------------------------------------------------
Meridian Automotive Systems, Inc., and its debtor-affiliates
seek authority from the U.S. Bankruptcy Court for the District
of Delaware to employ Watson Wyatt & Company, nunc pro tunc to
May 27, 2006, to provide actuary valuations with respect to
their retirement, pension and welfare benefit plans, as
necessary to perform the Debtors' "fresh start" accounting.
Robert S. Brady, Esq., at Young Conaway Stargatt & Taylor, LLP,
in Wilmington, Delaware, tells the Court that the Debtors need
appraisal and actuarial services for use in connection with
their "fresh start" accounting, as they near emergence from
Chapter 11. The Debtors must prepare actuary valuations of
their pension and retiree healthcare plans to estimate their
liabilities under their plan of reorganization as of the
Effective Date, Mr. Brady explains.
Mr. Brady relates that Watson Wyatt has been the Debtors'
actuary analyst since 1999, and has been retained as an ordinary
course professional in the Debtors' Chapter 11 cases.
Watson Wyatt will prepare actuarial valuations to reflect the
liabilities of these plans, which are sponsored by the Debtors:
(a) Composites Operations, Inc., Retirement Plan for
Hourly-Rated Employees of the Reinforced Plastics
Operations at Centralia, Illinois;
(b) Composites Operations, Inc., Pension Plan for Bargaining
Unit Employees at Jackson, Ohio;
(c) Welfare Benefit Plan for Centralia, Illinois;
(d) Welfare Benefit Plan for Ionia Gencorp Bargaining Unit
Retired Associates;
(e) Welfare Benefit Plan for Jackson, Ohio Bargaining Unit
Associates; and
(f) Welfare Benefit Plan for Grand Rapids Operations Retired
Associates.
The valuations to be performed by Watson Wyatt will include
measurements of the Debtors' liabilities both pre-emergence and
post-emergence reflecting current economic assumptions. Pension
and post-retirement benefit expenses will also be determined for
the period from the date of emergence to December 31, 2006.
Mr. Brady notes that the Actuarial Valuations are distinct from
the actuarial services Watson Wyatt provides to the Debtors in
the ordinary course of business. Watson Wyatt will continue to
serve as an ordinary course professional in their Chapter 11
cases, Mr. Brady says.
Watson Wyatt's hourly rates are:
Professional Hourly Rate
------------ -----------
Senior Consultants & Senior Consulting US$450 to $650
Actuaries Consultants & Consulting Actuaries US$325 to $425
Actuaries US$300 to $400
Analysts & Supporting Staff US$140 to $300
Watson Wyatt does not anticipate that its fees in connection
with the proposed engagement will exceed US$75,000, Marshall L.
Walters, a consultant at Watson Wyatt, assures the Court.
Mr. Walters attests that Watson Wyatt has no connection:
* with the Debtors, their creditors, equity holders, other
parties-in-interest or their attorneys; and
* to the U.S. Trustee or any person employed in the office
Of the U.S. Trustee in the District of Delaware.
According to Mr. Walters, Watson Wyatt:
(a) is not a creditor, equity security holder or insider of
the Debtors;
(b) is not and was not an investment banker for any
outstanding security of the Debtors;
(c) has not been, within three years before the Petition
Date:
* an investment banker for a security of the Debtors; or
* an attorney for that investment banker in connection
with the offer, sale, or issuance of a security of the
Debtors; and
(d) was not, within two years before the Petition Date, a
director, officer, or employee of the Debtors or of any
investment banker.
In addition, Mr. Walters continues, Watson Wyatt neither holds
nor represents any interest adverse to the Debtors, within the
meaning of Section 327(a).
About Meridian Automotive
Headquartered in Dearborn, Mich., Meridian Automotive Systems,
Inc. -- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck manufacturers.
Meridian operates 22 plants in the United States, Canada and
Mexico, supplying Original Equipment Manufacturers and major
Tier One parts suppliers. The Company and its debtor-affiliates
filed for chapter 11 protection on April 26, 2005 (Bankr. D.
Del. Case Nos. 05-11168 through 05-11176). James F. Conlan,
Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan
Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S.
Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq.,
and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor,
LLP, represent the Debtors in their restructuring efforts. Eric
E. Sagerman, Esq., at Winston & Strawn LLP represents the
Official Committee of Unsecured Creditors. The Committee also
hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti,
Biden & Balick, P.A., to prosecute an adversary proceeding
against Meridian's First Lien Lenders and Second Lien Lenders to
invalidate their liens. When the Debtors filed for protection
from their creditors, they listed US$530 million in total assets
and approximately US$815 million in total liabilities.
(Meridian Bankruptcy News, Issue No. 29; Bankruptcy Creditors'
Service, Inc., 215/945-7000).
=================
N I C A R A G U A
=================
* NICARAGUA: Fourteen Firms Want Port Equipment Lease Accord
------------------------------------------------------------
A source from Nicaragua's national port authority, Empresa
Portuaria Nacional or EPN, told Business News Americas that 14
firms bought rules for the bidding process to supply new port
equipment through a lease-to-own program.
BNamericas relates that the source said these companies
purchased the bidding rules:
-- Agencia Alemana de Nicaragua,
-- Casa McGregor,
-- Alonso Lacayo, from Rodman Polyships SAU,
-- Equipos Portuarios, and
-- Servicios Profesionales Directos.
According to BNamericas, the auction is open for EPN's purchase
of:
-- two "gantry cranes",
-- two container-handling tractors, and
-- two reach stackers.
The sources, says BNamericas, disclosed that offers are accepted
until June 23. The contract will be awarded a week after.
BNamericas states that the source could not tell the exact
amount of the investment.
However, the source told BNamericas that the acquisition is part
of the tenders planned to be carried out in the coming months
for the purchase of equipment for ports Corinto and El Rama for
US$8 million.
* * *
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
===========
P A N A M A
===========
KANSAS CITY SOUTHERN: Names Arthur Shoener as President and COO
---------------------------------------------------------------
Kansas City Southern disclosed that Arthur L. Shoener has been
named president and chief operating officer of the company and
has been elected to the company's board of directors.
Michael R. Haverty, chairman and chief executive officer of KCS,
said Mr. Shoener will serve on the board until the annual
shareholders meeting in 2008, after which he would be eligible
for nomination by the board and election by the shareholders.
Previously, Mr. Shoener was executive vice president and COO of
KCS. Mr. Haverty remains as chairman and CEO of the company.
"Art's accomplishments and ability in managing day-to-day
operations since he arrived a year and a half ago demonstrate
his qualifications to serve as president and to continue to
integrate our railroads, both north and south of the border,"
said Mr. Haverty. "Art also adds more rail operating experience
and expertise to the board."
Mr. Shoener will continue to lead The Kansas City Southern
Railway Company as president and CEO, will oversee Kansas City
Southern de Mexico, S.A. de C.V. operations as vice chairman of
the KCSM board, and will oversee the Shared Services
organization at KCS. Shared Services provides support in
purchasing, marketing, human resources, labor relations,
information technology and legal for both KCSR and KCSM. He
will also work closely with Jose Zozaya, KCSM's president and
executive representative.
"I am pleased to have been named KCS' president and COO and
elected to the KCS board of directors," said Mr. Shoener. "I
look forward to working with Mike and the rest of the KCS team,
and continuing the integration of our U.S. and Mexico holdings."
The KCS board of directors also approved the acquisition of 30
GE Transportation Systems ES44AC locomotives to be delivered to
KCSM in late 2006 and early 2007, and 30 EMD SD70ACe locomotives
to be delivered to KCSR by the end of the third quarter of 2007.
The acquisition of newer, more efficient and environmentally
friendly locomotives is part of the first phase of a five-year
plan. This plan will allow KCS to replace three older
locomotives with two newer locomotives, improving the economics
of fuel and maintenance for KCS' operating subsidiaries, and
reducing the overall number of locomotives. The acquisition of
these new locomotives, coupled with the retirement of the older
units, will have a net positive effect on the company's annual
operating cash flow and EBITDA, and will improve its overall
liquidity position.
Headquartered in Kansas City, Missouri, Kansas City Southern
(NYSE: KSU) - http://www.kcsi.com/-- is a transportation
holding company that has railroad investments in the U.S.,
Mexico and Panama. Its primary U.S. holding is The Kansas City
Southern Railway Company, serving the central and south central
U.S. Its international holdings include KCSM, serving
northeastern and central Mexico and the port cities of L zaro
Cardenas, Tampico and Veracruz, and a 50 percent interest in
Panama Canal Railway Company, providing ocean-to-ocean freight
and passenger service along the Panama Canal. KCS' North
American rail holdings and strategic alliances are primary
components of a NAFTA Railway system, linking the commercial and
industrial centers of the U.S., Canada and Mexico.
* * *
As reported in the Troubled Company Reporter on May 22, 2006,
Standard & Poor's Ratings Services lowered its preferred stock
ratings on Kansas City Southern to 'D' from 'C' and removed the
ratings from CreditWatch where they were initially placed on
March 23, 2006; ratings were previously lowered on April 4 and
May 1 and maintained on CreditWatch with negative implications.
Standard & Poor's other ratings on Kansas City Southern,
including its 'B' corporate credit rating, remain on CreditWatch
with negative implications, where they were initially placed
April 4, 2006. Ratings were lowered on April 10 and maintained
on CreditWatch.
* PANAMA: In Talks with Three Firms for Canal Extension Accord
--------------------------------------------------------------
The government of Panama is negotiating with Fomento de
Construcciones y Contratas SA, Actividades de Construccion y
Servicios SA and Grupo Ferrovial SA for a US5.250 billion
contract on the Panama Canal expansion, a source told Expansion.
A newspaper says that if the expansion is approved, the loading
capacity of the Panama Canal will be raised by 82% to 510
million tonnes by 2025.
AFX News Limited states that the country's authorities will call
a referendum this autumn for the approval of the project.
Construction works are likely to begin in 2007 while completion
is expected to be in seven years, Expansion reports.
* * *
Fitch Ratings assigned these ratings on Panama:
Rating Rating Date
------ -----------
Country Ceiling BBB Apr. 8, 2005
Long Term IDR BB+ Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating BB+ Dec. 14, 2005
=======
P E R U
=======
TELEFONICA DEL PERU: Posts PEN72.2 Mil. First Quarter Earnings
--------------------------------------------------------------
Telefonica del Peru, which holds a monopoly on wireline services
in Peru, said in its income statement that its earnings rise to
PEN72.2 million in the first quarter of 2006 compared to a
PEN19.7 million recorded in the first quarter of 2005.
Business News Americas relates that the firm attributed the
increase to its merger with Telefonica Empresas Peru, its sister
company that is focused on the lucrative corporate sector.
According to BNamericas, Telefonica del Peru's revenues in the
first quarter of this year totaled PEN1.12 billion, about 6.5%
higher than the PEN1.06 billion reported in the same quarter
last year.
Local telephony revenues decreased 6% year-on-year because of
the 10% yearly price cut applied to the company's rates by
Peruvian regulator Osiptel, BNamericas states.
BNamericas says that Telefonica del Peru's consolidated revenues
show:
-- data transport and IT service revenues increased to PEN71
million,
-- Internet revenues increased 42% to PEN122 million, and
-- Cable TV revenues rose 20% to PEN84.7 million.
BNamericas reports that the three areas represented 25% of the
firm's revenues.
Telefonica del Peru reported that its fixed lines in service
grew 8.7% to 2.3 million year-on-year, BNamericas states.
Telefonica del Peru is one of the world leaders in
Telecommunications with presence in Europe, Africa, and Latin
America.
* * *
As previously reported on Sept. 22, 2005, Fitch Ratings affirmed
Telefonica del Peru S.A.A.'s international scale local currency
unsecured debt rating at BBB+ and foreign currency unsecured
debt rating at BB and has assigned a 'BB' rating to its
proposed US$200 million senior unsecured notes to be issued in
PEN currency and paid in USD currency. Fitch said the rating
outlook is stable.
On April 24, 2006, in conjunction with the roll out of Issuer
Default Ratings and Recovery Ratings for Latin America
Corporates, Fitch Ratings upgraded the previous BB Rating on its
US$754 million Senior Unsecured Notes due 2016 to BBB-.
* PERU: Discusses with Andean Community New Course for Group
------------------------------------------------------------
Peru met with fellow members of the Andean community trade
alliance or CAN on June 13 in Quito, Ecuador, to plan a new
course for the pact in the absence of Venezuela, Dow Jones
Newswires reports.
Dow Jones recalls that President Chavez had withdrawn his
country from the alliance in May after Colombia and Peru signed
free trade accords with the United States. The Venezuelan
president had declared CAN dead.
Dow Jones relates that CAN also seeks to go for a free trade
accord with the European Union as well as an extension of trade
preferences granted by the US in 1991.
CAN members include:
-- Peru,
-- Ecuador,
-- Bolivia, and
-- Colombia.
* * *
Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.
* * *
Fitch Ratings assigned these ratings on Peru:
Rating Rating Date
------ -----------
Country Ceiling BB Nov. 18, 2004
Long Term IDR BB Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating BB+ Dec. 14, 2005
=================================
T R I N I D A D & T O B A G O
=================================
BWIA WEST: Faces Employee Turnover as Labor Talks Stalled
---------------------------------------------------------
BWIA West Indies Airways are losing employees as negotiations
between the Communication, Transport and General Workers Union
and management have stalled.
According to the Trinidad & Tobago Express, BWIA employees are
moving to airline company Caribbean Star.
"Caribbean Star Airline is here looking for mainly maintenance
staff and a lot of BWIA employees have already left to join
them," Raymond Small, the union's general secretary told the
Express.
"Engineers are being offered around US$21,000 at Caribbean
Star," an unnanmed source told the Express.
For the last six months, BWIA has lost five engineers who opted
to join other companies because of better opportunites, the
Express says.
"It is a situation that has to be rectified if BWIA intends to
expand to maintenance...There are 35 engineers in the CATTU
bargaining unit now after the departure of the five
engineers...You have to have what is called an Air Operator's
Certificate and that is based on your maintenance capacity," Mr.
Small told the Trinidad Guardian in a separate interview.
"If the maintenance capacity dips below a pre-determined grade
you are at risk of losing your Air Operators Certificate which
means you cannot fly," Mr. Small explained to the Guardian.
Director General of Civil Aviation Ramesh Lutchmedial said
yesterday BWIA is not in danger of losing its AOC at this time,
the Guardian says.
Meanwhile, BWIA has changed flight schedules as a result of an
"abnormal rise in ad hoc sic leave by some employees over the
weekend," the Guardian quoted BWIA. To counter the impact of
those absences, BWIA has turned to other airlines to accommodate
stranded passengers.
BWIA West Indies Airways 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.
BWIA has reportedly been losing US$1 million a week due to poor
operational management. The airline is currently in a
restructuring process mandated by the Trinidad and Tobago
government.
=================
V E N E Z U E L A
=================
* VENEZUELA: New Micro Lending Banks Won't Impact Banking Sector
----------------------------------------------------------------
The opening of eight new banks that will provide micro-credits
won't affect the banking system, superintendent of banks, Trino
Alcides Diaz, told ABN news agency.
"The emergence of these new institutions will entail no danger
for the banking system of for the Superintendent of Banks
functions of supervision, control and monitoring," Mr. Diaz was
quoted by El Universal as saying.
The new banks will grant about 150,000 micro-credits, El
Universal says.
Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Stella
Mae Hechanova, and Christian Toledo, Editors.
Copyright 2006. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
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