/raid1/www/Hosts/bankrupt/TCRLA_Public/060705.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Wednesday, July 5, 2006, Vol. 7, Issue 132
Headlines
A R G E N T I N A
ALIMENTARIA DEL SUR: Verification of Claims Is Until Oct. 3
BANCO DE GALICIA: Evaluadora Puts D Ratings on US$12.4-Mil Debts
EMPRESA DISTRIBUIDORA: S&P Arg. Puts D Rating on US$150M Debt
ESCUELA PANAMERICANA: Trustee Will Verify Claims Until Oct. 4
ESVE SA: Last Day for Verification of Claims Is on Oct. 2
FEROANCO SA: Verification of Proofs of Claim Is Until Sept. 8
FIDEICOMISOS ACRESA: Evaluadora Rates US$1.5M Debt at B
FIDEICOMISO HIPOTECARIO: Fitch Arg. Junks Ratings on Two Debts
FIDEICOMISOS TC/CAP: Evaluadora Rates US$3.9-Mil. Debt at BB+
GOMAS LICHE: Trustee Verifies Proofs of Claim Until Sept. 22
INTERMODE SRL: Moves Claims Verification Deadline to Sept. 26
JORSAR SA: Individual Reports Due in Court on Aug. 29
OFIRED SRL: Trustee Will Submit Individual Reports on Aug. 22
SANCOR COOP: Moody's LatAm Puts CCC Ratings on US$95-Mil. Debts
SOCIEDADE ANONIMA: Selling US$250 Million in 10-Year Bonds
TERMOPLAST SRL: Concludes Reorganization
WEB LOGISTICS: Claims Verification Deadline Is Set for Sept. 19
B A H A M A S
WINN-DIXIE: Classification & Treatment of Claims Under Plan
WINN-DIXIE: Court Approves Bowdoin Square Claims Compromise Pact
B E R M U D A
INTELSAT LTD: Completes PanAmSat Acquisition for US$3.2 Billion
INTELSAT LTD: PanAmSat Closes Offer to Purchase on 10-3/8% Notes
B R A Z I L
AGCO CORP: Names Andre Carioba Vice-President for South America
BANCO BRADESCO: Central Bank OKs Buy of Amex's Local Operations
CAIXA ECONOMICA: Inks Contract for Sanitation Works in Boa Vista
COMPANHIA PARANAENSE: Fundao Hydro Plant Starts Operations
EMPRESA ENERGETICA: Selling US$250 Million in 10-Year Bonds
GOL LINHAS: IFC Grants US$50MM to Support Unit's Investment Plan
PETROLEO BRASILEIRO: JBIC Loans US$900MM to Modernize Refinery
* BRAZIL: IFC Grants BRL50MM of 5-Yr. Financing for Rio Bravo
C A Y M A N I S L A N D S
CANNONBERRY LTD: Proofs of Claim Filing Deadline Is on July 26
CHESHAM INVESTMENTS: Proofs of Claim Must be Filed by July 26
DESERT (FINANCE): Final Shareholders Meeting Will be on July 26
DESERT (FUNDING): Sets Final Shareholders Meeting for July 26
DFK INVESTMENT: Creditors Have Until July 26 to File Claims
KAMNA LIMITED: Sets Last Shareholders Meeting on July 26
LATIN AMERICAN: Liquidator Presents Wind Up Accounts on July 26
PARKLAND INVESTMENTS: Creditors Must File Claims by July 26
SOEBHIK LIMITED: Last Day to File Proofs of Claim Is on July 26
SOGASIA: Final Shareholders Meeting Is Set for July 26
C O L O M B I A
BANCOLOMBIA: Purchases Additional 38.96% Share in Comercia
* COLOMBIA: IFC Grants COP13.8-Bil Loan to Fundacion Mundo Mujer
C O S T A R I C A
BAC SAN JOSE: Will be Investing in Foreign Securities
* COSTA RICA: Economy Grew 6.8% in March 2006
C U B A
* CUBA: Ships 2,500 Energy-Saving Light Bulbs to Jamaica
* CUBA: Strengthening Trade & Economic Ties with Pakistan
D O M I N I C A N R E P U B L I C
BANCO INTERCONTINENTAL: Court Summons Former Pres. to Testify
BANCO INTERCONTINENTAL: Two Gov't Officials Clash in Fraud Case
E C U A D O R
PETROECUADOR: Awards Crude Shipments to Taurus & Mitsubishi
E L S A L V A D O R
BANCO SALVADORENO: Posts US$7.06 Mil. First Quarter 2006 Profits
MILLICOM INT'L: Terminates Talks of Potential Sale of Company
G R E N A D A
* GRENADA: Joins Caribbean Common Market
G U A T E M A L A
* GUATEMALA: President Okays Free Trade Accord with US
J A M A I C A
AIR JAMAICA: Lower House Selects Committee to Probe Operations
SUGAR COMPANY: Will Disclose Participants in Auction
* JAMAICA: Receives 2,500 Energy-Saving Light Bulbs from Cuba
M E X I C O
GENERAL MOTORS: Evaluating US$3-Bil Alliance with Renault-Nissan
GENERAL MOTORS: Renault/Nissan Alliance Won't Affect Ratings
MERIDIAN AUTOMOTIVE: Court Okays Settlement of Centralia Lawsuit
MERIDIAN AUTOMOTIVE: Has Until Nov. 1 to Remove Civil Actions
N I C A R A G U A
* NICARAGUA: Taiwan Threatens to Suspend All Ties with Nation
P A R A G U A Y
* PARAGUAY: Exports Will Have Zero Tariffs in Venezuela
P E R U
DEL MONTE: Unit Acquires Milk-Bone from Kraft Foods for US$580MM
* PERU: Anti-Free Trade Group Head Says Pact with US Is Treason
P U E R T O R I C O
AOL LATIN AMERICA: Deregisters Shares of Class A Common Stock
INTERLINE BRANDS: Completes Acquisition of American Sanitary
MUSICLAND HOLDING: Xerox Wants Stay Lifted to Set Off Deposit
T R I N I D A D & T O B A G O
BWIA WEST: Union Slams Management Attempt to Pin Woes on Workers
U R U G U A Y
* URUGUAY: Exports Will Have Zero Tariffs in Venezuela
V E N E Z U E L A
PETROLEO BRASILEIRO: Starting Gas Exploration in Venezuela
* VENEZUELA: Will Slash Tariffs on Uruguay & Paraguay Exports
- - - - -
=================
A R G E N T I N A
=================
ALIMENTARIA DEL SUR: Verification of Claims Is Until Oct. 3
-----------------------------------------------------------
The deadline for verification of creditors' proofs of claim
against Alimentaria del Sur Argentino Adesa S.A. is on
Oct. 3, 2006.
Court No. 6 in Buenos Aires ordered that the bankruptcy case of
Alimentaria del Sur must be converted into a reorganization
proceeding.
The court appointed Estudio Suez and Pustelnik y Asociados as
the new reorganization trustees, replacing Alfredo Donatti, who
was the trustee for the bankruptcy proceeding.
Alimentaria del Sur's creditors will convene on July 4, 2007, to
cast their votes on a settlement plan that the company will lay
on the table.
Clerk No. 11 assists the court in the proceeding.
The debtor can be reached at:
Alimentaria del Sur Argentino Adesa S.A.
Guillermo Marconi 754
Buenos Aires, Argentina
The trustee can be reached at:
Estudio Suez
Pustelnik y Asociados
Rodriguez Pena 507
Buenos Aires, Argentina
BANCO DE GALICIA: Evaluadora Puts D Ratings on US$12.4-Mil Debts
----------------------------------------------------------------
Banco de Galicia y Buenos Aires' six debts are rated by the
Evaluadora Latinoamericana:
-- Program of Obligaciones Negociables, media term for
US$2,000,000,000, A;
-- Subordinated obligaciones negociables for US$223.7
million, A-;
-- Programa Global Clase 6 for US$73,000,000, A;
-- Programa Global Clase 7 for US$43,000,000
* Last due: June 25, 2003
* Rate: A
-- Obligaciones Negociables-Capital for originally US$12
million and now for US$888,000, D; and
-- O.N. simples issued on Aug. 11, 1993, originally for
US$200 million and now for US$11,600,000.
The rating actions were based on Banco de Galicia's financial
status as of Mar. 31, 2006.
EMPRESA DISTRIBUIDORA: S&P Arg. Puts D Rating on US$150M Debt
-------------------------------------------------------------
Empresa Distribuidora de Electricidad de Mendoza S.A.'s
US$150,000,000 Obligaciones Negociables Simples is rated raD by
the Argentine arm of Standard & Poor's Investor Service. The
rating action is based on Empresa Distribuidora's financial
status as of Mar. 31, 2006.
S&P's raD rating is assigned when a company is in payment
default or if it has filed for bankruptcy. The rating may also
be used when principal payments are not made on the due date
even if the applicable grace period has not expired, unless the
ratings agency believes that payments will be made during the
grace period.
ESCUELA PANAMERICANA: Trustee Will Verify Claims Until Oct. 4
-------------------------------------------------------------
Roberto Di Martino, the court-appointed trustee for Escuela
Panamericana de Arte S.A.'s bankruptcy proceeding, will verify
creditors' proofs of claim until Oct. 4, 2006.
La Nacion relates that Court No. 3 in Buenos Aires declared
Escuela Panamericana bankrupt at the behest of Fabian Crespo,
whom it owes US$25,213.60.
Clerk No. 5 assists the court in this case.
The debtor can be reached at:
Escuela Panamericana de Arte S.A.
Juramento 1765
Buenos Aires, Argentina
The trustee can be reached at:
Roberto Di Martino
Avenida Callao 449
Buenos Aires, Argentina
ESVE SA: Last Day for Verification of Claims Is on Oct. 2
---------------------------------------------------------
Court-appointed trustee Eduardo Francisco Cavagnaro will verify
creditors' proofs of claim against bankrupt company Esve S.A.
until Oct. 2, 2006, Infobae reports.
Creditors who fail to submit their proofs of claims won't
receive any post-liquidation distribution.
Mr. Cavagnaro will present the validated claims in court as
individual reports on Nov. 13, 2006. A general report that
contains an audit of Esve's accounting and banking reports will
follow on Dec. 23, 2006.
The debtor can be reached at:
Esve S.A.
Italia 7177 rodeo de la Cruz, Guaymallen
Mendoza, Argentina
The trustee can be reached at:
Eduardo Francisco Cavagnaro
Espejo 144, Ciudad de Mendoza
Mendoza, Argentina
FEROANCO SA: Verification of Proofs of Claim Is Until Sept. 8
-------------------------------------------------------------
Estudio Rodriguez Martorelli, Demarchi y Asociados, the court-
appointed trustee for Feroanco S.A.'s reorganization proceeding,
will verify creditors' proofs of claim until Sept. 8, 2006.
The company's creditors will cast their votes on July 4, 2007,
on a settlement plan that Feroanco will lay on the table.
Court No. 24 in Buenos Aires approved Feroanco's petition to
reorganize its business after it defaulted on its obligations on
May 5, 2006.
Clerk No. 47 assists the court in the proceeding.
The debtor can be reached at:
Feroanco S.A.
Reconquista 1034
Buenos Aires, Argentina
The trustee can be reached at:
Estudio Rodriguez Martorelli, Demarchi y Asociados
Sarmiento 1452
Buenos Aires, Argentina
FIDEICOMISOS ACRESA: Evaluadora Rates US$1.5M Debt at B
-------------------------------------------------------
The Evaluadora Latinoamericana rates Fideicomisos Financieros
Acresa I Fideicomiso Financiero's two debts:
-- Valores de Deuda Fiduciaria for US$8,500,000, A-
-- Certificados de Participaci¢n for US$1,500,000, B
FIDEICOMISO HIPOTECARIO: Fitch Arg. Junks Ratings on Two Debts
--------------------------------------------------------------
The Argentine arm of Fitch Ratings rates Fideicomiso Hipotecario
BHN IV's four debts:
-- TD Clase AV VN US$36,500,000, B+(arg)
-- TD Clase AF VN US$119,500,000, B+(arg)
-- TD Clase B VN US$24,375,000, CC(arg)
-- CP VN US$14,625,505, C(arg)
The rates are based on the improvements registered in 2005.
They also show the lack of resolution on the pesofication of the
titles, which negatively impact the investors of the TD Class B.
FIDEICOMISOS TC/CAP: Evaluadora Rates US$3.9-Mil. Debt at BB+
-------------------------------------------------------------
The Evaluadora Latinoamericana rates Fideicomisos Financieros
TC/Cap Fideicomiso Financiero's two debts:
-- T¡tulos de Deuda Fiduciaria for US$9,100,000
* Last due: Jan. 25, 2005
* Rate: A
-- Certificados de Participaci¢n for US$3,900,000
* Last due: Jan. 25, 2005
* Rate: BB+
GOMAS LICHE: Trustee Verifies Proofs of Claim Until Sept. 22
------------------------------------------------------------
Court-appointed trustee Carlos Daniel Brezinski will verify
creditors' proofs of claim against bankrupt company Gomas Liche
S.A. until Sept. 22, 2006, Infobae reports.
Creditors who fail to submit their proofs of claims won't
receive any post-liquidation distribution.
Mr. Brezinski will present the validated claims in court as
individual reports on Nov. 6, 2006. A general report that
contains an audit of Gomas Liche's accounting and banking
reports will follow on Dec. 19, 2006.
The trustee can be reached at:
Carlos Daniel Brezinski
Lambare 1140
Mendoza, Argentina
INTERMODE SRL: Moves Claims Verification Deadline to Sept. 26
-------------------------------------------------------------
Court No. 22 in Buenos Aires extended to Sept. 26, 2006, the
deadline for verification of creditors' proofs of claim against
Intermode S.R.L. The deadline was originally set for
June 11, 2006. Mateo Reynaldo Alberto is the court-appointed
trustee who will validate the claims.
The verified claims will be submitted in court as individual
reports on Nov. 8, 2006. A general report that contains an
audit of Intermode's accounting and banking records will follow
on Dec. 21, 2006.
As reported in the Troubled Company Reporter-Latin America on
May 25, 2006, Intermode was declared bankrupt at the behest of
Obra Social de Empleados de Comercio y Actividades Civiles,
which it owes US$4,899.17.
Clerk No. 44 assists the court in this case.
The debtor can be reached at:
Intermode S.R.L.
Lavalle 1362
Buenos Aires, Argentina
The trustee can be reached at:
Alberto Mateo
Piedras 153
Buenos Aires, Argentina
JORSAR SA: Individual Reports Due in Court on Aug. 29
-----------------------------------------------------
Estudio Casella Manfredi y Asociados, the court-appointed
trustee for Jorsar S.A.'s bankruptcy case, will present in court
individual reports based on the verified claims on
Aug. 29, 2006. A general report that contains an audit of the
company's accounting and banking records will follow on
Oct. 10, 2006.
Estudio Casella verified creditors' proofs of claim until
July 3, 2006.
Jorsar S.A. started liquidating assets after a court in Buenos
Aires ordered that its insolvency case must be converted into a
bankruptcy proceeding.
The debtor can be reached at:
Jorsar S.A.
Bruselas 513
Buenos Aires, Argentina
The trustee can be reached at:
Estudio Casella Manfredi y Asociados
Juan Domingo Peron 1671
Buenos Aires, Argentina
OFIRED SRL: Trustee Will Submit Individual Reports on Aug. 22
-------------------------------------------------------------
Nora Silvia Rossi, the court-appointed trustee for Ofired
S.R.L.'s bankruptcy case, will submit in court individual
reports based on the verified claims on Aug. 22, 2006. A
general report that contains an audit of the company's
accounting and banking records will follow on Oct. 3, 2006.
Ms. Rossi verified creditors' proofs of claim until
June 26, 2006.
A court in Santa Fe declared Ofired bankrupt after it has
defaulted on its obligations.
The debtor can be reached at:
Ofired S.R.L.
Paraguay 727, Rosario
Santa Fe, Argentina
The trustee can be reached at:
Nora Silvia Rossi
Rueda 255, Rosario
Santa Fe, Argentina
SANCOR COOP: Moody's LatAm Puts CCC Ratings on US$95-Mil. Debts
---------------------------------------------------------------
Sancor Coop. Unidas Ltda.'s debts are rated by Moody's Latin
America:
-- ONs Class 3, for US$75,800,000, included under the program
of ONs for US$300 million
* Last due: Jan. 27, 2004
* Rated date: June 28, 2006
* Rate: CCC
* Date of balance: Mar. 31, 2006
-- ONs Serie 2, for US$19,000,000, included under the program
of ONs for US$300 million
* Last due: Jan. 27, 2004
* Rated date: June 28, 2006
* Rate: CCC
* Date of balance: Mar. 31, 2006
SOCIEDADE ANONIMA: Selling US$250 Million in 10-Year Bonds
----------------------------------------------------------
Brazilian power distributors Sociedade Anonima de Eletrificacao
da Paraiba aka Saelpa and Empresa Energetica de Sergipe S.A. aka
Energipe are selling US$250 million in 10-year bonds in
international markets, Business News Americas reports.
Energisa SA, a unit of Brazilian power power distribution
holding, Companhia Forca E Luz Cataguazes-Leopoldina aka CFLCL,
controls the two companies.
Local press reported that Companhia Forca's officials are
meeting with investors outside Brazil in a road show to seek
buyers for the bonds.
BNamericas says that the issue would be split two-thirds to
Energipe and one third to Saelpa. The notes will mature in
2016.
The proceeds from the sale would help refinance existing debt,
which represented roughly 72% of the holding company's
consolidated third-party debt at Dec. 31, 2005.
Merrill Lynch would manage the bond sale, local press reported.
The proposed US$250 million senior notes carry Standard & Poor's
B+ rating and Fitch's BB- rating.
According to S&P, if a rating change will occur in one or both
issuers, the senior notes units rating will reflect the weaker
credit quality between Energipe and Saelpa, considering that the
rating on the notes units reflects their individual capacity to
make the necessary and punctual quarterly interest payments
during the lifetime of their respective underlying notes.
TERMOPLAST SRL: Concludes Reorganization
----------------------------------------
The reorganization of Termoplast S.R.L. has ended. Data
revealed by Infobae on its Web site indicated that the process
was concluded after a court in Buenos Aires approved the debt
agreement signed between the company and its creditors.
WEB LOGISTICS: Claims Verification Deadline Is Set for Sept. 19
---------------------------------------------------------------
Miriam Colmegna, the court-appointed trustee for Web Logistics
S.A.'s reorganization proceeding, will verify creditors' proofs
of claim until Sept. 19, 2006.
The company's creditors will cast their votes on May 21, 2007,
on a settlement plan that Web Logistics will propose.
La Nacion relates that Court No. 22 in Buenos Aires approved Web
Logistics' petition to reorganize its business after defaulting
on its obligations.
Clerk No. 22 assists the court in this case.
The debtor can be reached at:
Web Logistics S.A.
Belgrano 835
Buenos Aires, Argentina
The trustee can be reached at:
Miriam Colmegna
Sarmiento 1179
Buenos Aires, Argentina
=============
B A H A M A S
=============
WINN-DIXIE: Classification & Treatment of Claims Under Plan
-----------------------------------------------------------
Winn-Dixie Stores, Inc., and its debtor-affiliates' Plan of
Reorganization groups claims and interests into 21 classes:
Class Claims Treatment
----- ------ ---------
n/a Administrative Claims Paid in cash, in full
Estimated Allowed
Claims: US$76,600,000
n/a DIP Facility Claims Paid in cash, in full
Estimated DIP Facility
Claims: US$0 in revolving
loans; US$40,000,000 in
term loans;
US$220,600,000 in letters
of credit
n/a Priority Tax Claims Paid in cash, in full
Estimated Allowed
Claims: US$14,900,000
1 Other Priority Claims Paid in cash, in full
Estimated Allowed
Claims: US$0
2 MSP Death Benefit Claims Holders will receive one
lump sum payment when
the participant dies, as
soon as the beneficiary
provides satisfactory
proof of death. The MSP
Death Benefit Claims are
Unimpaired
Estimated Allowed
Claims: US$51,000,000
(Gross Claims);
US$21,000,000 (present
value)
3 Workers Compensation Claims Paid in full.
Estimated Allowed
Claims: N/A
4 Bond/Letter of Credit Paid in cash, in full
Backed Claims
Estimated Allowed
Claims: US$857,000
5 Convenience Claims Paid in cash, in full
Estimated Allowed
Claims: US$35,200
6 Subsidiary Interests Retained
7 AmSouth Bank Collateralized Reinstated and impaired;
Letter of Credit Claim Estimated percentage
recovery is 100%
Estimated Allowed
Claims: US$17,000,000
(contingent)
8 Thrivent/Lutherans Reinstated and impaired;
Leasehold Mortgage Claim Estimated percentage
recovery is 100%
Estimated Allowed
Claims: US$395,864
(as of June 29, 2006)
9 NCR Purchase Money Security Paid in full over a
Interest Claim period of three years,
with interest at 4.25%
per annum; holder may
elect to receive a lump
sum cash payment equal
to 90% of the allowed
claim amount
The NCR Purchase Money
Security Interest Claim
is impaired.
Estimated Allowed
Claims: US$3,400,000
10 Secured Tax Claims Paid in full over a
period of six years,
with interest at 6% per
annum. Secured Tax
Claims are impaired.
Estimated Allowed
Claims: US$31,300,000
11 Other Secured Claims At the Debtors'
discretion, either:
* each holder's
contractual rights
will be reinstated;
* each holder will
retain the liens
securing the claim or
receive deferred cash
payments;
* the collateral will be
surrendered; or
* the claim will be paid
in full.
Other Secured Claims are
impaired.
Estimated Allowed
Claims: US$0
12 Noteholder Claims Estimated Percentage
Recovery: 95.6%
Each holder will
receive:
* 62.69 shares of New
Common Stock for
each US$1,000 of
Allowed Claim; and
* a pro rata
distribution of any
excess shares of New
Common Stock in the
Common Stock
Reserve.
Estimated Allowed
Claims: US$310,540,582
13 Landlord Claims Estimated Percentage
of Recovery: 70.6%
Each holder will
receive:
* 46.26 shares of New
Common Stock for
each US$1,000 of
Allowed Claim; and
* a pro rata
distribution of any
excess shares of New
Common Stock in the
Common Stock
Reserve.
In the alternative,
the holder may elect
to reduce the claim to
US$3,000 and receive
cash equal to 67% of
the allowed claim
amount. This
alternative is
available on a "first
come, first serve"
basis.
Estimated Allowed
Claims: US$284,100,000
14 Vendor/Supplier Claims Estimated Percentage
of Recovery: 70.6%
Each holder will
receive:
* 46.26 shares of New
Common Stock for
each US$1,000 of
Allowed Claim; and
* a pro rata
distribution of any
excess shares of New
Common Stock in the
Common Stock
Reserve.
In the alternative,
the holder may elect
to reduce the claim to
US$3,000 and receive
cash equal to 67% of
the allowed claim
amount. This
alternative is
available on a "first
come, first serve"
basis.
Estimated Allowed
Claims: US$218,900,000
15 Retirement Plan Claims Estimated Percentage
of Recovery: 59.1%
Each holder will
receive:
* 38.75 shares of New
Common Stock for
each US$1,000 of
Allowed Claim; and
* a pro rata
distribution of any
excess shares of New
Common Stock in the
Common Stock
Reserve.
In the alternative,
the holder may elect
to reduce the claim to
US$3,000 and receive
cash equal to 67% of
the allowed claim
amount. This
alternative is
available on a "first
come, first serve"
basis.
Estimated Allowed
Claims: US$87,800,000
16 Other Unsecured Claims Estimated Percentage
of Recovery: 53.2%
Each holder will
receive:
* 34.89 shares of New
Common Stock for
each US$1,000 of
Allowed Claim; and
* a pro rata
distribution of any
excess shares of New
Common Stock in the
Common Stock
Reserve.
In the alternative,
the holder may elect
to reduce the claim to
US$3,000 and receive
cash equal to 67% of
allowed claim amount.
This alternative is
available on a "first
come, first serve"
basis.
Estimated Allowed
Claims: US$84,100,000
17 Small Claims Holders will receive
cash equal to 67% of
the allowed claim
amount.
Estimated Allowed
Claims: US$3,200,000
18 Intercompany Claims Deemed discharged
19 Subordinated Claims Deemed discharged
20 Non-Compensatory Damages Deemed discharged
Claims
Estimated Allowed
Claims: US$10,000,000
21 Winn-Dixie Interests Cancelled
Holders of claims in Classes 7 to 17 are entitled to vote on the
Plan. Classes 1 to 6 are deemed to have accepted the Plan while
Classes 18 to 21 are deemed to have rejected the Plan.
Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers. The Company operates stores across the
Southeastern United States and in the Bahamas and employs
approximately 90,000 people. The Company, along with 23 of its
U.S. subsidiaries, filed for chapter 11 protection on
Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063, transferred
Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos. 05-03817 through
05-03840). D.J. Baker, Esq., at Skadden Arps Slate Meagher &
Flom LLP, and Sarah Robinson Borders, Esq., and Brian C. Walsh,
Esq., at King & Spalding LLP, represent the Debtors in their
restructuring efforts. Paul P. Huffard at The Blackstone Group,
LP, gives financial advisory services to the Debtors. Dennis F.
Dunne, Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John
B. Macdonald, Esq., at Akerman Senterfitt give legal advice to
the Official Committee of Unsecured Creditors. Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee. When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts. (Winn-Dixie Bankruptcy News,
Issue No. 42; Bankruptcy Creditors' Service, Inc., 215/945-
7000).
WINN-DIXIE: Court Approves Bowdoin Square Claims Compromise Pact
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida
approved Winn-Dixie Stores, Inc., and its debtor-affiliates'
compromise of claims filed by Bowdoin Square, LLC:
(a) Claim No. 9939 for US$1,267,412 against Winn-Dixie
Stores, Inc.; and
(b) Claim No. 9940 for US$1,267,412 against Winn-Dixie
Montgomery, Inc.
As reported in the Troubled Company Reporter on June 16, 2006,
Bowdoin filed an action in the Circuit Court of Mobile County,
Alabama in 2002, alleging that the Debtors breached their
obligations under a lease and guaranty, D. J. Baker, Esq., at
Skadden, Arps, Slate, Meagher & Flom LLP, in New York, related.
The Debtors defended the State Court Action and asserted that
the lease has been terminated when the use of the property
changed.
The Debtors prevailed at trial, but the verdict was overturned
on appeal and the case was remanded for a new trial. Before the
second trial was to commence, the Debtors and the Claimant
agreed to settle the State Court Action.
Pursuant to the settlement agreement, Bowdoin agreed to accept
US$400,000 in full satisfaction of the claims asserted in the
State Court Action. However, before the settlement payment
could be made, the Debtors' Chapter 11 petitions were filed.
In accordance with the Settlement Agreement, the parties have
agreed to compromise the Claims:
(a) Each of the Claims will be allowed as an unsecured non-
priority claim for US$400,000 to be treated in
accordance with a confirmed plan of reorganization in
the Debtors' Chapter 11 cases;
(b) In the event that the Debtors' cases are not
substantively consolidated, Bowdoin will not receive
distributions from the Debtors having an aggregate value
that exceeds US$400,000;
(c) If the Debtors' cases are substantively consolidated for
purposes of distribution under a confirmed plan of
reorganization, the plan may provide that no
distributions will be made in connection with claims
that are based on guarantees and, in that event, no
distribution will be made on Claim No. 9939; and
(d) Bowdoin will dismiss with prejudice the action pending
in the Circuit Court of Mobile County, Alabama.
Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers. The Company operates stores across the
Southeastern United States and in the Bahamas and employs
approximately 90,000 people. The Company, along with 23 of its
U.S. subsidiaries, filed for chapter 11 protection on
Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063, transferred
Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos. 05-03817 through
05-03840). D.J. Baker, Esq., at Skadden Arps Slate Meagher &
Flom LLP, and Sarah Robinson Borders, Esq., and Brian C. Walsh,
Esq., at King & Spalding LLP, represent the Debtors in their
restructuring efforts. Paul P. Huffard at The Blackstone Group,
LP, gives financial advisory services to the Debtors. Dennis F.
Dunne, Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John
B. Macdonald, Esq., at Akerman Senterfitt give legal advice to
the Official Committee of Unsecured Creditors. Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee. When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts. (Winn-Dixie Bankruptcy News,
Issue No. 41; Bankruptcy Creditors' Service, Inc., 215/945-7000)
=============
B E R M U D A
=============
INTELSAT LTD: Completes PanAmSat Acquisition for US$3.2 Billion
---------------------------------------------------------------
Intelsat, Ltd., completed its merger with PanAmSat Holding Corp.
With the addition of PanAmSat's video market expertise, advanced
satellite fleet and blue-chip media customer base to Intelsat's
portfolio, the new Intelsat is now the largest provider of fixed
satellite services worldwide to each of the media, network
services/telecom and government customer sectors.
Intelsat acquired all of the outstanding common shares of
PanAmSat for approximately US$3.2 billion. Pursuant to the
merger, each outstanding share of common stock of PanAmSat was
converted into the right to receive US$25.00, plus approximately
US$0.00927 as the pro rata quarterly dividend, per share in cash
without interest. In addition and as a result of the merger,
PanAmSat is now a wholly owned subsidiary of Intelsat, and the
common stock of PanAmSat have been delisted from the New York
Stock Exchange. The total value of the transaction, including
PanAmSat debt that was refinanced or remained outstanding, is
approximately US$6.4 billion. For the twelve-month period
ending March 31, 2006, pro forma revenues for the combined
company total more than US$2.0 billion and adjusted EBITDA for
Intelsat (Bermuda), Ltd. on a pro forma combined basis was
US$1.6 billion. At March 31, 2006, pro forma combined revenue
backlog, which is based on long-term customer commitments of up
to 15 years, was approximately US$8.3 billion.
Operational Strength
Using optimized capacity on a combined fleet of 51 satellites
and a large, complementary terrestrial infrastructure including
eight owned teleports, fiber connectivity and over 50 points of
presence in almost 40 cities, the new Intelsat:
-- Carries one out of every four television channels
transmitted over fixed satellites;
-- Supports 27 DTH platforms worldwide;
-- Operates 16 satellites that are part of video
neighborhoods around the world;
-- Is the number one provider of transponders for video
programming worldwide;
-- Carries more high definition programming than any other
FSS carrier;
-- Is the largest provider of commercial satellite services
to the government sector;
-- Is the leading provider of services to enterprise,
Internet and mobile network operators; and
-- Provides communications services to 99 percent of the
world's populated regions.
"The combined assets of our company provide the highest level of
service and network reliability to existing customers, while
opening doors to new business opportunities in key
communications growth markets such as HD, IPTV and applications
resulting from the convergence of video, voice, data and
mobility," said David McGlade, Chief Executive Officer of
Intelsat. "This merger creates a strong, next-generation,
global communications leader with an unrivaled ability to
provide the competitive and sophisticated services consumers and
businesses need by leveraging unparalleled satellite,
terrestrial and technical expertise."
McGlade added, "We have chosen the corporate theme 'Closer, by
Far' to articulate our vision for the new Intelsat and its
relationship with its customers. It is our mission to bring
customers closer to achieving their business potential and
closer to the people and businesses they serve."
Integration Process Underway
The integration process already underway will ensure a smooth
and seamless transition for Intelsat's customers. Intelsat
intends to adopt a "one company" operating philosophy and
expects to fully integrate PanAmSat's assets and operations.
Since the merger was announced in August 2005, the companies
have conducted disciplined integration planning in order to
drive the benefits of greater scale and complementary service
offerings to customers and to deliver strong operational
synergies to the company's stakeholders. By making key
functional and systems decisions ahead of time, Intelsat is
positioned for an accelerated start now that the transaction has
closed.
David McGlade will continue to serve as Chief Executive Officer
and a Director of Intelsat, Ltd. The executive team of the
company also includes:
-- James Frownfelter, formerly the President and COO of
PanAmSat, as Chief Operating Officer;
-- Phillip Spector, Executive Vice President and General
Counsel;
-- Jeffrey Freimark, Executive Vice President and Chief
Financial Officer; and
-- Joseph Wright, formerly Chief Executive Officer of
PanAmSat, has been appointed Chairman of the Board.
Intelsat will continue to be domiciled in Pembroke, Bermuda and
maintain its U.S. headquarters in Washington, D.C.
About PanAmSat
Through its owned and operated fleet of 25 satellites, PanAmSat
Holding Corp. (NYSE: PA) -- http://www.panamsat.com/-- is a
global provider of video, broadcasting and network distribution
and delivery services. It transmits 1,991 television channels
worldwide and, as such, is the leading carrier of standard and
high-definition signals. In total, the Company's in-orbit fleet
is capable of reaching over 98 percent of the world's population
through cable television systems, broadcast affiliates, direct-
to-home operators, Internet service providers and
telecommunications companies. In addition, PanAmSat supports
satellite-based business networks in the U.S., as well as
specialized communications services in remote areas throughout
the world.
About Intelsat
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.
* * *
As reported in the Troubled Company Reporter on June 19, 2006,
Fitch upgraded the Issuer Default Rating for Intelsat to 'B'
from 'B-' pro forma for its pending acquisition of PanAmSat.
The ratings were also removed from Rating Watch Negative, where
they had originally been placed on Aug. 30, 2005. Fitch said
the Rating Outlook is Stable.
As reported in the Troubled Company Reporter on June 13, 2006,
Moody's Investors Service affirmed the B2 corporate family
rating of Intelsat, Ltd., and downgraded the corporate family
rating of PanAmSat Corporation to B2, given the greater clarity
regarding the final capital structure and the near-term
completion of the PanAmSat acquisition by Intelsat.
INTELSAT LTD: PanAmSat Closes Offer to Purchase on 10-3/8% Notes
----------------------------------------------------------------
PanAmSat Holding Corp. completed its previously announced offer
to purchase and consent solicitation with respect to its 10-3/8%
Senior Discount Notes due 2014. The Offer expired at 9:00 a.m.
New York City time, on July 3, 2006. The Offer and Consent
Solicitation were commenced on May 30, 2006, and were made on
the terms and subject to the conditions set forth in the Offer
to Purchase and Consent Solicitation Statement dated
May 30, 2006, and the related Consent and Letter of Transmittal,
as amended.
As of July 3, PanAmSat had accepted for tender US$414.53 million
in aggregate principal amount at maturity of the Notes,
representing 99.65% of the outstanding principal amount at
maturity of the Notes. The company has accepted for payment all
Notes validly tendered on or prior to the Expiration Date.
Deutsche Bank Securities Inc. is the dealer manager for the
Offer and the solicitation agent for the Consent Solicitation.
Questions or requests for assistance and documentation may be
directed to:
Deutsche Bank Securities Inc.
Attn: Alexandra Barth
60 Wall Street, New York
New York 10005
Tel: (212) 250-5655.
About PanAmSat
Through its owned and operated fleet of 25 satellites, PanAmSat
Holding Corp. (NYSE: PA) -- http://www.panamsat.com/-- is a
leading global provider of video, broadcasting and network
distribution and delivery services. It transmits 1,991
television channels worldwide and, as such, is the leading
carrier of standard and high-definition signals. In total, the
Company's in-orbit fleet is capable of reaching over 98 percent
of the world's population through cable television systems,
broadcast affiliates, direct-to-home operators, Internet service
providers and telecommunications companies. In addition,
PanAmSat supports satellite-based business networks in the U.S.,
as well as specialized communications services in remote areas
throughout the world.
About Intelsat
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.
* * *
As reported in the Troubled Company Reporter on June 19, 2006,
Fitch upgraded the Issuer Default Rating for Intelsat to 'B'
from 'B-' pro forma for its pending acquisition of PanAmSat.
The ratings were also removed from Rating Watch Negative, where
they had originally been placed on Aug. 30, 2005. Fitch said
the Rating Outlook is Stable.
As reported in the Troubled Company Reporter on June 13, 2006,
Moody's Investors Service affirmed the B2 corporate family
rating of Intelsat, Ltd., and downgraded the corporate family
rating of PanAmSat Corporation to B2, given the greater clarity
regarding the final capital structure and the near-term
completion of the PanAmSat acquisition by Intelsat.
===========
B R A Z I L
===========
AGCO CORP: Names Andre Carioba Vice-President for South America
---------------------------------------------------------------
Agco Corp. appointed Andre Carioba as Senior Vice President and
General Manager for South America. Mr. Carioba will be
responsible for managing all operational functions as well as,
the development and implementation of specific brand marketing
strategies through the sales, marketing and customer support
organizations for AGCO Allis, Challenger, Massey Ferguson,
Valtra and AGCO application equipment. He will be an officer of
Agco, headquartered in Sao Paulo, Brazil.
From 2000, Mr. Carioba served as President and General Manager
of BMW Brazil Ltda., where his operation increased the overall
sales volume of cars, motorcycles, parts and accessories,
securing the company's leadership in the 'premium segment' of
the Brazilian market. He also served as Director of Purchasing
and Logistics for BMW while in Brazil.
"Andre brings an extensive knowledge of the Brazilian market to
AGCO," said Martin Richenhagen, President and CEO of AGCO
Corporation. "We are pleased to have him on the executive team,
since South America provides us with such a great opportunity
for future growth." Mr. Richenhagen continues, "He is a great
addition and we will certainly benefit from his experience."
Throughout his career at BMW, Mr. Carioba held various
assignments within the Procurement Division including, Senior
Manager for International Purchasing Projects at BMW AG in
Munich. While in Munich, he also worked in the Sales Division
for the International After-Sales Service Organization. At the
BMW headquarters in Iberica S.A., Madrid, Mr. Carioba was the
Manager of Purchasing for Spain and Portugal, where he expanded
local automotive component and supplies to the German and
Austrian BMW plants.
Mr. Carioba holds a degree in Economics and Business
Administration from Ludwigs-Maximilian-Universitat in Munich.
He is the former President of the Brazilian Association of
Vehicle Importers or ABEIVA, and was a member of the Brazilian-
German Chamber of Commerce Advisory Board in Sao Paolo, Brazil.
About Agco
Headquartered in Duluth, Georgia, Agco Corp. --
http://www.agcocorp.com/-- is a global manufacturer of
agricultural equipment and related replacement parts. Agco
offers a full product line including tractors, combines, hay
tools, sprayers, forage, tillage equipment and implements, which
are distributed through more than 3,600 independent dealers and
distributors in more than 140 countries worldwide, including
Brazil. AGCO products include the following brands: AGCO(R),
Challenger(R), Fendt(R), Gleaner(R), Hesston(R), Massey
Ferguson(R), New Idea(R), RoGator(R), Spra-Coupe(R),
Sunflower(R), Terra-Gator(R), Valtra(R), and White(TM) Planters.
AGCO provides retail financing through AGCO Finance. The
company had net sales of US$5.4 billion in 2005.
* * *
Moody's Investors Services put these ratings on Agco Corp.:
-- Long-term Corporate Family Rating: Ba2;
-- Bank Loan Debt: Ba1;
-- Sr. Unsecured Debt: Ba3; and
-- Sr. Subordinate: B1.
Moody's said the outlook is negative.
BANCO BRADESCO: Central Bank OKs Buy of Amex's Local Operations
---------------------------------------------------------------
Banco Bradesco S.A.'s plan to purchase the local operations of
American Express in Brazil has been approved by the Brazilian
Central Bank, Dow Jones Newswires reports.
Banco Bradesco disclosed in March that it paid American Express
US$468.4 million to take on the Brazilian operations of the
latter, which includes:
-- credit card portfolios;
-- travel and foreign exchange services; and
-- consumer credit units.
Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco
-- http://www.bradesco.com.br/-- prides itself on serving
low-and medium-income individuals in Brazil since the 1960s.
Bradesco is Brazil's largest private bank, with more than 3,000
banking branches, and also a leader in insurance and private
pension management. Bradesco has branches throughout Brazil as
well as one in New York, two in the Bahamas, and four in the
Cayman Islands. Bradesco offers Internet banking, insurance,
pension plans, annuities, credit card services (including
football-club affinity cards for the soccer-mad population), and
Internet access for customers. The bank also provides personal
and commercial loans, along with leasing services.
* * *
As reported in the Troubled Company Reporter on Feb. 23, 2006,
Moody's Investors Service shifted Banco Bradesco S.A.'s 'C-'
bank financial strength rating to positive from stable.
* * *
Fitch Ratings upgraded on June 30, 2006, these ratings of Banco
Bradesco S.A., in the wake of the upgrade of the country's
foreign and local currency Issuer Default Ratings to 'BB':
-- Foreign currency long-term IDR: to BB from BB-;
-- Local currency long-term IDR: to BBB- from BB+; and
-- National long-term rating: to 'AA+(bra)' from 'AA(bra)'.
Fitch said the long-term Outlook is Stable.
CAIXA ECONOMICA: Inks Contract for Sanitation Works in Boa Vista
----------------------------------------------------------------
Brazil's Roraima state government said in a statement that Caixa
Economica Federal, the country's federal bank, signed a BRL77
million contract with the state for sanitation works in Boa
Vista.
Business News Americas relates that Roraima will provide BRL8.6
million in counterpart funding for the project, which requires
BRL85.6 million.
According to BNamericas, the works include:
-- construction of a new wastewater treatment plant, and
-- modernization of the sewage and water distribution
networks throughout Boa Vista.
Roraima would call for tenders for the sanitation works within
30 days of signing the contract with Caixa Economica, BNamericas
states, citing Ottomar de Sousa Pinto -- the state governor.
Roraima wants to launch works as soon as possible, Governor de
Sousa Pinto told BNamericas.
* * *
On Oct. 19, 2005, Moody's Investors Service upgraded Caixa
Economica Federal's long-term foreign currency deposit rating to
B1 from B2 with a positive outlook.
The action followed Moody's upgrade of Brazil's foreign currency
ceiling for deposits to B1, from B2, and the foreign currency
country ceiling for bonds and notes to Ba3, from B1. The country
ceilings have a positive outlook.
COMPANHIA PARANAENSE: Fundao Hydro Plant Starts Operations
----------------------------------------------------------
Companhia Paranaense de Energia aka Copel launched operations in
its 120MW Fundao hydro plant on Parana's Jordao river, Business
News Americas reports.
BNamericas states that Elejor, a specific-purpose firm that
Copel owns 70%, built the Fundao plant.
According to BNamericas, Elejor built another 120MW plant for
Copel in Santa.
Investments in the two projects and associated social and
environmental projects totaled BRL520 million, BNamericas
relates.
Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense
de Energia SA -- http://www.copel.com/-- transmits and
distributes electricity to more than 3 million customers in the
state of Paran and has a generating capacity of nearly 4,600 MW,
primarily from hydroelectric plants. COPEL also offers
telecommunications, natural gas, engineering, and water and
sanitation services. The company restructured its utility
operations in 2001 into separate generation, transmission, and
distribution subsidiaries to prepare for full privatization,
which has been indefinitly postponed. In response, COPEL is
re-evaluating its corporate structure. The government of Parana
controls about 59% of COPEL.
* * *
Copel's BRL100,000,000 debentures due March 1, 2007, is rated
Ba3 by Moody's.
EMPRESA ENERGETICA: Selling US$250 Million in 10-Year Bonds
-----------------------------------------------------------
Brazilian power distributors Empresa Energetica de Sergipe S.A.
aka Energipe and Sociedade Anonima de Eletrificacao da Paraiba
aka Saelpa are selling US$250 million in 10-year bonds in
international markets, Business News Americas reports.
Energisa SA, a unit of Brazilian power power distribution
holding, Companhia Forca E Luz Cataguazes-Leopoldina aka CFLCL,
controls the two companies.
Local press reported that Companhia Forca's officials are
meeting with investors outside Brazil in a road show to seek
buyers for the bonds.
BNamericas says that the issue would be split two-thirds to
Energipe and one third to Saelpa. The notes will mature in
2016.
The proceeds from the sale would help refinance existing debt,
which represented roughly 72% of the holding company's
consolidated third-party debt at Dec. 31, 2005.
Merrill Lynch would manage the bond sale, local press reported.
The proposed US$250 million senior notes carry Standard & Poor's
B+ rating and Fitch's BB- rating.
According to S&P, if a rating change will occur in one or both
issuers, the senior notes units rating will reflect the weaker
credit quality between Energipe and Saelpa, considering that the
rating on the notes units reflects their individual capacity to
make the necessary and punctual quarterly interest payments
during the lifetime of their respective underlying notes.
GOL LINHAS: IFC Grants US$50MM to Support Unit's Investment Plan
----------------------------------------------------------------
GOL Linhas Aereas Inteligentes disclosed that its subsidiary Gol
Transportes Aereos S.A. entered into an agreement for a US$50
million long-term financing from the International Finance
Corp., the private sector arm of the World Bank Group. The IFC
financing will support GOL's investment in aircraft spare parts
inventory and working capital requirements to meet the needs of
its growing fleet.
This financing demonstrates IFC's commitment to provide long-
term and stable funding diversification to Brazilian companies.
"IFC's partnership with GOL is a good example of our strategy in
South America to support local businesses and help them expand
their businesses nationally and regionally. In its brief
history, GOL has made a significant contribution to the growth,
connectivity and efficiency of the Brazilian airline sector,
which has resulted in substantial benefits for its customers and
the Brazilian economy," said Francisco Tourreilles, director of
IFC's infrastructure department. "GOL is investing in an area
critical to Brazil's further economic development. The
investment fits IFC's strategy to encourage private sector
investment in infrastructure as a means to stimulate economic
growth in Brazil," stated Saran Kebet-Koulibaly, IFC's Associate
Director for Latin America and the Caribbean, and Country
Manager for Brazil.
About Gol Linhas
Headquartered in Sao Paulo, Brazil, Gol Linhas Areas
Inteligentes S.A. -- http://www.voegol.com.br-- through its
subsidiary, Gol Transportes Aereos S.A., provides airline
services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay.
The company's services include passenger, cargo, and charter
services. As of March 20, 2006, Gol Linhas provided 440 daily
flights to 49 destinations and operated a fleet of 45 Boeing 737
aircraft. The company was founded in 2001.
* * *
On March 21, 2006, Moody's Rating Services assigned a Ba2 rating
on Gol's Long-Term Corporate Family Rating.
On June 14, 2006, Fitch Ratings assigned a rating of 'BB' to GOL
Linhas' outstanding US$200 million 8.75% perpetual
bond. In addition, Fitch assigned:
-- National Scale Rating of 'AA-(bra)' with Stable Outlook,
and
-- Local Currency Issuer Default Rating of 'BB+'- with
Stable Outlook.
PETROLEO BRASILEIRO: JBIC Loans US$900MM to Modernize Refinery
--------------------------------------------------------------
Japan Bank for International Cooperation aka JBIC signed on
May 23, 2006, a loan agreement totaling US$900 million with
Petroleo Brasileiro S.A. aka Petrobras, for the refinery
modernization project of the latter's Henrique Lage Refinery or
REVAP through Companhia de Desenvolvimento e Modernizacao de
Plantas Industriais S.A. or CDMPI, a Brazilian corporation, in
which Mitsui & Co., Ltd. and ITOCHU Corporation have equity
stakes. The loan was cofinanced with Sumitomo Mitsui Banking
Corp., the agent bank, and the other six private financial
institutions.
The project is aimed at:
-- strengthening the refining capacity of a refinery,
-- upgrading product quality, and
-- alleviating environmental impacts by modernizing the
Henrique Lage Refinery, the third largest refinery in
Brazil.
The loan will finance installation of the oil refinery and other
facilities that CDMPI will lease to Petrobras.
Crude oil production volume has been increasing in Brazil and
Brazil has achieved the national goal of crude oil self-
sufficiency in April 2006. However, the refining capacity of
heavy oil, which makes up a major part of domestically produced
crude oil, remains inadequate mainly due to the aging refinery
facilities in the country. Modernization of refinery facilities
is thus one of the top priority subjects in the government's
energy policy and the newly signed loan is expected to
contribute to energy policy by enhancing Brazil's oil refinery
capacity.
The two Japanese trading houses, which seek to expand business
activities in the energy and natural resources sectors, consider
participation in this project to be a significant opportunity
conducive to further involvement in Petrobras-related projects,
including oil, natural gas and other resource development
projects. Thus the financing JBIC has provided also supports
Japanese firms' overseas business activities.
Endowed with rich energy and agricultural resources, Brazil is
drawing attention as a market backed by the largest economy in
Latin America. Japanese firms are increasing business
activities in the state, primarily in the energy and natural
resources sectors. The Joint Program for Revitalization of
Economic Relations between Japan and the Federative Republic of
Brazil, which was launched following the summit meeting of
President Lula and Prime Minister Koizumi in May 2005, promoted
trade and investment, as well as enhanced the cooperation in the
energy and natural resources sectors between the two countries.
JBIC intends to continue its support for Japanese firms'
business activities in Brazil.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
S.A. aka Petrobras was founded in 1953. The company explores,
produces, refines, transports, markets, distributes oil and
natural gas and power to various wholesale customers and retail
distributors in the country.
* * *
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
* * *
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
* BRAZIL: IFC Grants BRL50MM of 5-Yr. Financing for Rio Bravo
-------------------------------------------------------------
The International Finance Corporation, the private sector arm of
the World Bank Group, arranged BRL50 million, approximately
US$22 million equivalent, of five-year financing for Rio Bravo
Securitizadora S.A. The transaction, which is pending final
approval from the securities regulator in Brazil, will be IFC's
first debt funding targeted at the country's housing finance
sector.
Under the deal, IFC would provide a credit-linked guarantee to
Banco ABN AMRO Real S.A., which would make local currency
funding available to support Rio Bravo Securitizadora's
operations. The funding provided by Banco Real would be
directly invested in quotas of a fundo de investimento em
direitos creditorios or FIDC, which is the Brazilian equivalent
of a bankruptcy-remote funding vehicle, or trust, containing
residential real estate receivables that are originated by Rio
Bravo Securitizadora.
In turn, Rio Bravo Securitizadora would securitize the
receivables in the form of certificados de receb¡veis
imobiliarios or CRIs, which are the Brazilian equivalent of
mortgage-backed securities, to be placed with domestic
investors.
"We are very pleased to be working with Banco Real to make
additional funding available to support Rio Bravo's residential
real estate origination, securitization, and placement
activities," said Saran Kebet-Koulibaly, IFC's associate
director for Latin America and manager for Brazil. "IFC's
financing aims to increase the pool of funding for developers of
much-needed housing for middle-income Brazilians and to provide
opportunities for local institutional investors to diversify
their portfolios into longer tenor, private sector debt
instruments, such as securities backed by residential real
estate."
Nicholas Reade, CEO of Rio Bravo Securitizadora, said, "The IFC
project will further demonstrate the viability of an
alternative, private sector channel of residential real estate
finance. By complementing relatively limited sources of funding
for residential real estate construction and home purchases,
this transaction-and similar efforts in the future should help
address Brazil's housing deficit and enhance the affordability
of home buying for middle-income families."
In another milestone, this transaction would involve IFC's first
credit-linked guarantee on behalf of an emerging-markets
borrowing client, where IFC provides a full guarantee on the
client's local currency loan, as long as the country where the
debtor is located is current on its predetermined debt
obligations.
Lee Meddin, IFC's deputy treasurer, said, "Through the issuance
of sovereign-linked guarantees, IFC is now able to offer a
product that meets rather than exceeds the needs of investors
and lenders who do not require a guarantee rated higher than
that of their own sovereign. Investors and lenders benefit by
receiving a guarantee instrument with a higher yield than that
offered on other securities fully backed by IFC's international
triple-A rating."
IFC's housing finance strategy in Brazil aims to increase market
liquidity by supporting the business activities of
securitization companies, mobilizing funding from capital
markets investors, and helping standardize residential real
estate origination and securitization practices along
international lines. Where feasible, IFC also works with
commercial banks on housing finance-related transactions.
For a variety of reasons, Brazil has a potentially large market
for housing finance, with significant opportunities for
securitization firms. There is an unmet demand for attractively
priced financing with reasonable tenors from middle- and lower-
income households as well as residential real estate developers.
Another spur for growth is an effective legal and regulatory
framework for primary and secondary market housing finance,
which was established in the last 10 years but is only now
starting to be used fully by financial sector intermediaries.
Finally, macroeconomic stability and lower interest rates are
increasingly the norm in Brazil, which should make residential
real estate-related asset classes more attractive for investors
than in the past, as well as home buying more feasible for
lower- and middle-income families.
About Rio Bravo Securitizadora
Rio Bravo Securitizadora is one of the leading real estate
securitization companies in Brazil. Its principal business
activities include originating residential and commercial real
estate receivables, subsequently securitizating them in CRI
format and placing them with investors, and acting as a master
servicer for CRI transactions. Rio Bravo Securitizadora's
largest shareholder is RB Credito Companhia de Securitizacao
Imobili ria, which owns approximately 58 percent of the company.
Other investors include GMAC-RFC and IFC, which hold 20 percent
and 19.9% stakes, respectively, as well as several individual
shareholders. Rio Bravo Securitizadora's CRI origination
volumes grew over the period 2000-2005 from BRL11.7 million to
BRL608.1 million or US$284.2 million equivalent, in line with
overall growth trends in the CRI market. At present, the
company has a market share of 16% of total CRI issues in Brazil.
IFC in Brazil
During fiscal year 2005, Brazil received the largest amount of
IFC financing, in dollar value, among Latin American countries.
IFC invested US$591 million, including $190 million in
syndications, in sectors ranging from agribusiness and
transportation to manufacturing and the financial sector. IFC's
total portfolio in Brazil was US$913 million at June 2005.
IFC's strategy for Brazil focuses on enhancing clients'
prospects for competitiveness and growth, improving the
country's social equity through voluntary actions by the private
sector, and continuing to promote sustainability. Since 1956,
when Brazil joined IFC, the Corporation has provided US$7.45
billion, including syndications, for 162 companies in the
country.
* * *
On June 29, 2006, Fitch upgraded these ratings for Brazil:
-- Long-term foreign currency IDR: to 'BB' from 'BB-';
-- Long-term local currency IDR: to 'BB' from 'BB-'; and
-- Country ceiling to 'BB' from 'BB-'.
Fitch also affirmed Brazil's short-term rating at 'B'. Fitch
said the Rating Outlook is Stable.
===========================
C A Y M A N I S L A N D S
===========================
CANNONBERRY LTD: Proofs of Claim Filing Deadline Is on July 26
--------------------------------------------------------------
Cannonberry Ltd.'s creditors are required to submit proofs of
claim by July 26, 2006, to the company's liquidator:
Buchanan Limited
P.O. Box 1170, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 26 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Cannonberry Ltd.' shareholders agreed on June 15, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Timothy Haddleton
P.O. Box 1170, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949-0355
Fax: (345) 949-0360
CHESHAM INVESTMENTS: Proofs of Claim Must be Filed by July 26
-------------------------------------------------------------
Chesham Investments Ltd.'s creditors are required to submit
proofs of claim by July 26, 2006, to the company's liquidator:
Buchanan Limited
P.O. Box 1170, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 26 deadline
won't receive any distribution that the liquidatir will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Chesham Investments' shareholders agreed on June 15, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Timothy Haddleton
P.O. Box 1170, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949-0355
Fax: (345) 949-0360
DESERT (FINANCE): Final Shareholders Meeting Will be on July 26
---------------------------------------------------------------
Desert Passage Finance Limited's final shareholders meeting will
be at 9:00 a.m. on July 26, 2006, at the company's registered
office.
These agenda will be 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.
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:
Westport Services Ltd.
Attention: Bonnie Willkom
P.O. Box 1111
Grand Cayman, Cayman Islands
Tel: (345) 949-5122
Fax: (345) 949-7920
DESERT (FUNDING): Sets Final Shareholders Meeting for July 26
-------------------------------------------------------------
Desert Passage Funding Limited's final shareholders meeting will
be at 9:00 a.m. on July 26, 2006, at the company's registered
office.
These agenda will be 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.
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:
Westport Services Ltd.
Attention: Bonnie Willkom
P.O. Box 1111
Grand Cayman, Cayman Islands
Tel: (345) 949-5122
Fax: (345) 949-7920
DFK INVESTMENT: Creditors Have Until July 26 to File Claims
-----------------------------------------------------------
DFK Investment Co. Ltd.'s creditors are required to submit
proofs of claim by July 26, 2006, to the company's liquidator:
Buchanan Limited
P.O. Box 1170, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 26 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
DFK Investment's shareholders agreed on June 15, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Timothy Haddleton
P.O. Box 1170, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949-0355
Fax: (345) 949-0360
KAMNA LIMITED: Sets Last Shareholders Meeting on July 26
--------------------------------------------------------
Kamna Limited's shareholders will gather on July 26, 2006, for a
final general meeting at:
Coutts (Jersey) Limited
23/25 Broad Street
St. Helier, Jersey JE4 8ND
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 that
period.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidators can be reached at:
Royhaven Secretaries Limited
Attn: Sarah Baudet
P.O. Box 707
Grand Cayman, Cayman Islands
Tel: (345) 945-4777
Fax: (345) 945-4799
LATIN AMERICAN: Liquidator Presents Wind Up Accounts on July 26
---------------------------------------------------------------
Latin American Small Cap Holdings' shareholders will convene for
a final meeting on July 26, 2006, at:
1001 19th Street North
17th Floor, Arlington
Virginia, 22209-1722
Accounts on the company's liquidation process will be presented
during the meeting.
The liquidator can be reached at:
Emerging Markets Management, L.L.C.
c/o Maples and Calder, Attorneys-at-law
P.O. Box 309GT, Ugland House
South Church Street, George Town
Grand Cayman, Cayman Islands
PARKLAND INVESTMENTS: Creditors Must File Claims by July 26
-----------------------------------------------------------
Parkland Investments Ltd.'s creditors are required to submit
proofs of claim by July 26, 2006, to the company's liquidator:
Buchanan Limited
P.O. Box 1170, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 26 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Parkland Investments' shareholders agreed on June 15, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Timothy Haddleton
P.O. Box 1170, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949-0355
Fax: (345) 949-0360
SOEBHIK LIMITED: Last Day to File Proofs of Claim Is on July 26
---------------------------------------------------------------
Soebhik Limited's creditors are required to submit proofs of
claim by July 26, 2006, to the company's liquidator:
Buchanan Limited
P.O. Box 1170, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 26 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Soebhik Limited's shareholders agreed on June 15, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Francine Jennings
P.O. Box 1170, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949-0355
Fax: (345) 949-0360
SOGASIA: Final Shareholders Meeting Is Set for July 26
------------------------------------------------------
Sogasia's final shareholders meeting will be at 11:00 a.m. on
July 26, 2006, at the company's registered office.
These agenda will be 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.
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:
David A.K. Walker
Lawrence Edwards
Attention: Jodi Jones
P.O. Box 258, George Town
Grand Cayman, Cayman Islands
Tel: (345) 914-8694
Fax: (345) 949-4590
===============
C O L O M B I A
===============
BANCOLOMBIA: Purchases Additional 38.96% Share in Comercia
----------------------------------------------------------
Bancolombia S.A. has acquired an additional 6,868,409 shares
-- 38.96% of outstanding share -- in Comercia S.A. for COP17.2
billion, Business News Americas reports.
As reported in the Troubled Company Reporter-Latin America on
May 10, 2006, Bancolombia acquired from Textiles Fabricato
Tejicondor S.A., 9,803,685 shares of Comercia or 55.61 % of the
outstanding shares of the company for COP24.6 billion --
approximately COP2,510.23 per share. With the acquisition,
Comercia became a subsidiary of Bancolombia.
In a local stock exchange filing, Comercia said that
Bancolombia's latest purchase will increase Bancolombia's stake
in Comercia to 94.57%, BNamericas relates.
* * *
The Troubled Company Reporter-Latin America reported on
April 28, 2006, that Moody's Investors Service upgraded
Bancolombia's bank financial strength ratings to D+ from D with
a stable outlook.
Moody's added that the action concludes the review for possible
upgrade that was announced on October 13, 2005. Moreover,
Bancolombia's Ba3/Not Prime long- and short-term foreign
currency deposit ratings were affirmed. Moody's said the
outlook on all ratings is stable.
* * *
On Dec. 22, 2005, Fitch affirmed the ratings assigned on
Bancolombia, as:
-- Long-term/short-term foreign currency at 'BB/B';
-- Long-term/short-term local currency at 'BBB-/F3';
-- Individual at 'C';
-- Support at '3'.
* COLOMBIA: IFC Grants COP13.8-Bil Loan to Fundacion Mundo Mujer
----------------------------------------------------------------
The International Finance Corp., the private sector arm of the
World Bank, granted a five-year loan of COP13.8 billion,
equivalent to US$5.4 million, to Fundacion Mundo Mujer, a
leading Latin America microfinance institution headquartered in
Popayan, Colombia.
This is the second time IFC has provided funds to a microfinance
organization in Colombia. The transaction consists of a loan in
local currency, or indexed to the Colombian peso, and will allow
Fundacion Mundo Mujer to offer 70,000 additional loans to low-
income clients over the next five years. Backed by its strong
AAA credit rating, IFC will set up long-term swaps with
financial institutions in the Colombian market to help Fundacion
Mundo Mujer hedge its foreign exchange risks.
Atul Mehta, IFC's Director for Latin America, stated, "Fundacion
Mundo Mujer has a wealth of experience with low-income
microbusinesses and is one of the most efficient and successful
institutions of its kind in Latin America. This makes it an
ideal candidate for IFC financing. The transaction marks the
beginning of a strategic partnership that benefits both
parties."
Leonor Melo de Velasco, founder and chair of Fundacion Mundo
Mujer, highlighted the importance of this agreement, "To embark
on a loan agreement with IFC is to build on our future by
democratizing loans."
Fundacion Mundo Mujer of Popay n is a not-for-profit
organization and an affiliate of the Women's World Banking
Network, a global group of 24 microfinance organizations in 19
countries.
In several years of sustained growth, Fundacion Mundo Mujer has
financed over 110,000 microbusinesses, 60% of them headed by
women. Many of its beneficiaries live below the country's
poverty line and have been able to access loans for working
capital and other essential financial services.
Average loans amount to COP900,000 equivalent to US$391, and
usually represent the first time a microbusiness has dealt with
a financial services provider. As of March 31, 2006, Mundo
Mujer's net loan portfolio was COP114 billion, equivalent to $50
million.
IFC in Colombia
IFC is increasing its stake in Colombia's microfinance sector
and is working to extend the financial services available to
local companies. The financial sector continues to be a priority
for IFC in Colombia, with a special focus on finance and
microfinance for housing, as well as the strengthening of local
capital markets and corporate governance. IFC's strategy for
Colombia also focuses on increasing support to sectors that are
central to the country's financial development within the
framework of free trade agreements. This includes the financing
of infrastructure projects involving public-private
partnerships, such as the expansion of ports, roads, and
airports, and support to logistics companies. IFC is also
aiming to finance Colombian oil and gas companies, in particular
those looking to expand within the region.
IFC's total portfolio in Colombia as of May 2006 was US$394
million. Since Colombia first became a member of the IFC in
1956, the Corporation has provided US$1.1 billion to its private
sector, including syndicated loans for a total of US$500
million.
* * *
On May 30, 2005, Fitch Ratings affirmed Colombia's ratings as:
-- Long-term foreign currency 'BB';
-- Country ceiling 'BB';
-- Local currency 'BBB-';
-- Short-term 'B'.
Fitch said the Rating Outlook is Stable.
===================
C O S T A R I C A
===================
BAC SAN JOSE: Will be Investing in Foreign Securities
-----------------------------------------------------
As part of its strategy to diversify its portfolio, Banco BAC
San Jose Pensiones has disclosed plans of investing in foreign
securities for the first time, Business News Americas reports,
citing Javier Sancho -- the company's Chief Executive Officer.
According to Inside Costa Rica, Mr. Sancho said that BAC San
Jose has set a four-phase strategy that seeks to achieve higher
profitability without increasing risk exposure. The strategy
includes:
-- First Phase:
* acquisition of US Treasury bonds as they are
liquid and low-risk instruments, and
* possible purchasing the debt instruments of five
corporations;
-- Second Phase: purchasing of corporate bonds issued by
international entities like the Inter-American Development
Bank aka IDB;
-- Third Phase: In the first quarter of 2007, BAC will take
positions in index funds; and
-- Fourth Phase: BAC will acquire structured notes.
Mr. Sancho told Inside Costa Rica that the decision to invest
abroad is mainly explained by two factors:
-- Costa Rica's market used to be attractive in terms of
returns but due to international interest rate rises, it
is now even more attractive to invest abroad; and
-- The domestic market is not able to satisfy pension funds'
demand anymore due to the volume of assets they manage.
Inside Costa Rica relates that traditionally, pension fund
managers in Costa Rica have expressed strong home bias,
especially towards government and central bank bonds.
Costa Rica's pension law states that by 2011, up to 50% of
domestic pension fund portfolios can be invested in local
government and central bank bonds.
According to Inside Costa Rica, the pension funds investment
rules in Costa Rica have been loosened. However, by
international standards they are still highly conservative.
Pension fund managers are currently allowed to invest:
-- up to 25% of their portfolio in foreign securities rated
AAA,
-- up to 15% in securities rated AA, and
-- up to 5% in securities rated A.
The pension fund managers, however, are not allowed to invest in
equities, Inside Costa Rica states.
BAC San Jose, created in 1968, is a wholly owned unit of
financial group Corporacion Tenedora BAC San Jose aka Grupo
Financiero BAC San Jose.
* * *
As reported in the Troubled Company Reporter on Dec. 22, 2005,
Standard & Poor's Ratings Services assigned these ratings to
Banco BAC San Jose S.A.:
-- Local currency credit rating: BB+/Stable/B
-- Foreign currency credit rating: BB/Stable/B
* COSTA RICA: Economy Grew 6.8% in March 2006
---------------------------------------------
Costa Rica's economy rose 6.8% in March 2006, compared with the
same month last year, Inside Costa Rica reports.
According to Inside Costa Rica, analysts attributed the
improvement to:
-- exports from free zones,
-- the agricultural sector, and
-- the sale of communication services.
In the first three months this year, Costa Rica's economy
increased 3% more than in the same period in 2005, when the
increase was 2.5%, Elvia Campos, the estimate and integration
coordinator of the Monthly Index of Economic Activity of the
Central Bank, told Inside Costa Rica.
* * *
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
=======
C U B A
=======
* CUBA: Ships 2,500 Energy-Saving Light Bulbs to Jamaica
--------------------------------------------------------
Cuba has shipped 250,000 energy-saving light bulbs to Jamaica,
the Jamaica Gleaner reports.
Senator Kern Spencer -- the State Minister in the Ministry
Industry, Technology, Energy and Commerce -- told The Gleaner
that the initiative is part of the Jamaican government's efforts
to promote energy conservation. It was started in east
Kingston, where around 32,000 fluorescent bulbs were exchanged
on a one-for-one basis with incandescent light bulbs in 6,000
homes.
According to The Gleaner, Jamaica's oil import bill rose 41% to
US$1.33 billion in 2005, compared with the year before.
The Gleaner relates that the arrival of the shipment has started
the second phase of the Cuban government's plan to distribute
four million fluorescent bulbs to Jamaica. These bulbs, with an
overall retail value estimated at US$2 billion, are being
provided by the Cuban government at no cost.
Senator Kern Spencer -- the State Minister in the Ministry
Industry, Technology, energy and Commerce -- told The Gleaner
that the bulbs were at the Kingston Wharf. According to him,
the bulbs would be distributed to residents of four
constituencies this week.
About 100 technicians from Cuba would be arriving in Jamaica
later this week to provide aid with the distribution, The
Gleaner says, citing Senator Spencer.
* * *
Moody's assigned these ratings on Cuba:
-- CC LT Foreign Bank Depst, Caa2
-- CC LT Foreign Curr Debt, Caa1
-- CC ST Foreign Bank Depst, NP
-- CC ST Foreign Curr Debt, NP
-- Issuer Rating, Caa1
* CUBA: Strengthening Trade & Economic Ties with Pakistan
---------------------------------------------------------
Cuba and Pakistan have emphasized the need to strengthen their
bilateral ties, particularly trade and economic relationships,
according to a report from the Dawn the Internet Edition.
Cuban Ambassador Gustavo Machin Gomez visited Pakistan last week
and met with Senate Chairman Mohammedmian Soomro to discuss the
two nations bilateral cooperation.
The Pakistani official underlined the importance of the
country's relations with Cuba and the possibility of improving
trade links.
* * *
Moody's assigned these ratings on Cuba:
-- CC LT Foreign Bank Depst, Caa2
-- CC LT Foreign Curr Debt, Caa1
-- CC ST Foreign Bank Depst, NP
-- CC ST Foreign Curr Debt, NP
-- Issuer Rating, Caa1
===================================
D O M I N I C A N R E P U B L I C
===================================
BANCO INTERCONTINENTAL: Court Summons Former Pres. to Testify
-------------------------------------------------------------
Hipolito Mejia, the former president of the Dominican Republic,
has been subpoenaed to testify in the Banco Intercontinental
(Baninter) fraud case, Dominican Today reports.
Marino Vinicio Castillo, the Dominican Republic's presidential
adviser on narcotics topics, told Dominican Today that the
former president had signed papers that would implicate him in
the case. Those documents have been kept as evidence.
Ex-president Mejia had threatened to use a "trump card" against
Leonel Fernandez when the latter was yet a candidate and had
said that by April 2004 Fernandez's candidacy would disappear,
Dominican Today relates, citing Mr. Castillo.
Because there was no basis to the allegation, the threat did not
materialize, Mr. Castillo told Dominican Today.
BanInter collapsed in 2003 as a result of massive fraud
that drained it of about US$657 million in funds. As a
consequence, all of its branches were closed. The bank's
current and savings accounts holders were transferred to the
bank's new owner -- Scotiabank.
BANCO INTERCONTINENTAL: Two Gov't Officials Clash in Fraud Case
---------------------------------------------------------------
Two government officials of the Dominican Republic have clashed
in the Banco Intercontinental aka Baninter fraud case, Dominican
Today reports.
Marino Vinicio Castillo -- the Presidency's Adviser on narcotics
topics -- told Dominican Today that Hector Valdez Albizu, the
Dominican Republic's Central Bank governor, refuses to release
documents which he thinks are the key to the defense of his
client, Ramon Baez Figueroa -- the former president of Baninter.
Mr. Castillo said that the Central Bank should provide those
documents so he could properly defend Mr. Figueroa, according to
Dominican Today. Mr. Figueroa was accused of fraud and asset
laundering.
Mr. Albizu is persistent in seeking the conviction of the
accused ex-executives of Baninter, Dominican Today relates.
BanInter collapsed in 2003 as a result of massive fraud
that drained it of about US$657 million in funds. As a
consequence, all of its branches were closed. The bank's
current and savings accounts holders were transferred to the
bank's new owner -- Scotiabank.
=============
E C U A D O R
=============
PETROECUADOR: Awards Crude Shipments to Taurus & Mitsubishi
-----------------------------------------------------------
A spokesperson of Petroecuador, the state-run oil company of
Ecuador, told Business News Americas that the firm has awarded
US oil refiner Taurus and Japan's Mitsubishi Corporation-Tokyo
and Mitsubishi International shipments of 400,000 barrels of
crude each.
As reported in the Troubled Company Reporter-Latin America on
June 29, 2006, Petroecuador scheduled a bidding process on
June 29 for two million barrels of crude produced on block 15,
among the oil fields stripped from US oil firm Occidental
Petroleum Corp. The crude was to be sold on the spot market in
five separate loads of 400,000 gallons to firms that are
pre-qualified by Petroecaudor.
Three loads of 400,000 barrels of crude each was awarded to
Taurus, BNamericas states, citing the Petroecuador spokesperson.
It was part of the state firm's crude auction for two million
barrels (Mb) of crude. Taurus offered the lowest discount from
the spot market price of US$17.50.
BNamericas relates that Japan's Mitsubishi Corporation-Tokyo and
Mitsubishi International each received a load of 400,000 barrels
of crude.
The discount proposals for the remaining loads reached US$22.50,
which was too high for Petroecuador, the spokesperson told
BNamericas. The company considered declaring the auction void,
but held negotiations with firms on Friday last week and awarded
the loads with US$17.75 discounts.
The discount was higher than what Petroecuador wanted but the
deals were adequate, considering the company's immediate need to
dispatch the crude due to its limited storage capacity, the
spokesperson explained to BNamericas.
Petroecuador, according to published reports, is faced with
cash-problems. The state-oil firm has no funds for maintenance
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash if
Petroecuador won't be efficient and transparent in its accounts.
=====================
E L S A L V A D O R
=====================
BANCO SALVADORENO: Posts US$7.06 Mil. First Quarter 2006 Profits
----------------------------------------------------------------
El Salvador's Banco Salvadoreno's profits increased 79.8% to
US$7.06 million in the first quarter 2006, compared with the
same quarter in 2005, Business News Americas reports.
Banco Salvadoreno posted these results in the first quarter of
2006, compared with the first quarter last year:
-- US$31.8 million interest income, a 25% increase from
US$25.4 million,
-- fee income rose 56% to US$3.82 million,
-- operating costs grew 19% to US$12.7 million,
-- general expenses increased 40% to US$5.55 million,
-- assets rose 9% to US$1.86 billion at the end of March,
-- loans grew 15% to US$1.27 billion,
-- liabilities increased 9% to US$1.68 billion, and
-- deposits rose 8% to US$1.24 billion.
Superintendencia del Sistema Financiero, the local financial
regulator, indicated that Banco Salvadoreno ranked third in the
local banking system at the end of March 2006. It had a 17%
asset market share, BNamericas relates.
* * *
Fitch Ratings placed a BB long-term issuer default rating on
Banco Salvadoreno. The company was also assigned a B short-term
rating and an A+(SLV) national long-term rating. Fitch said the
outlook is stable.
MILLICOM INT'L: Terminates Talks of Potential Sale of Company
-------------------------------------------------------------
Millicom International Cellular S.A. completed its Strategic
Review that was announced on January 19, 2006, and has decided
to terminate all discussions concerning a potential sale of the
entire share capital of the company. Since May 2006, the
company has been in prolonged discussions and due diligence with
one potential purchaser but has now concluded that this
purchaser will not be in a position within an acceptable
timeframe to make a binding offer that is suitably attractive,
given the current strong performance of the business, or
sufficiently certain of closing. The Board of Directors remains
confident in the independent future of the company.
Millicom did not name the potential buyer of the company, but
reports have identified China Mobile as the buyer.
The Wall Street Journal reported that Millicom did not push
through with the deal due to China Mobile's "last minute price
concerns."
XFN-ASIA reported that the deal was delayed due to China
Mobile's lack of diplomatic relations with five of the sixteen
nations where Millicom has operations. The Wall Street Journal
adds that the former also has concerns on the disparate nature
of Millicom's operations, making it difficult for China Mobile
to manage all of them.
China Mobile's offer for the telecommunications company was
valued at almost US$5.3 billion.
Millicom International Cellular S.A. -- http://www.millicom.com/
-- is a global telecommunications investor with cellular
operations in Asia, Latin America and Africa. It currently has
cellular operations and licenses in 16 countries. The Group's
cellular operations have a combined population under license of
approximately 391 million people.
The Central America Cluster comprises Millicom's operations in
El Salvador, Guatemala and Honduras. The population under
license in Central America as at December 2005 is 26.4 million.
The South America Cluster comprises Millicom's operations in
Bolivia and Paraguay. The population under license in South
America as at December 2005 is 15.2 million.
* * *
Millicom International's 10% senior notes due 2013 carry Moody's
B3 rating and Standard & Poor's B- rating.
=============
G R E N A D A
=============
* GRENADA: Joins Caribbean Common Market
----------------------------------------
Grenada joined the Caribbean Common Market on Friday, Prensa
Latina reports.
Along with Saint Lucia, Antigua and Barbuda, St. Kitts and
Nevis, Dominica and St. Vincent and the Grenadines, Grenada
complied with the requirements of the approved legislation to
form a single economy in the Caribbean, Prensa Latina relates.
Prensa Latina states that the common market began in January
2006 with the signing of an agreement between Barbados, Belize,
Guyana, Jamaica, Suriname and Trinidad and Tobago. As agreed,
member nations are committed to suspend tariffs on imports
inside the region and accept that their citizens may launch
businesses, provide services and move their capital in the area
without any restriction.
According to Prensa Latina, a regional passport among members
will replace the national ones in 2007.
* * *
As reported in 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: President Okays Free Trade Accord with US
------------------------------------------------------
Susan Schwab, the US trade representative, said in a statement
that Guatemala's President Oscar Jose Rafael Berger Perdomo has
approved the implementation of the Central American Free Trade
Agreement-Dominican Republic or CAFTA-DR agreement for Guatemala
as of July 1, 2006.
According to the statement, President Perdomo has issued a
proclamation to implement the CAFTA-DR.
"I greatly appreciate the sincere and diligent effort by
Guatemala to adopt the necessary regulatory and legislative
framework under CAFTA-DR," Ms. Schwab told Farm Futures.
* * *
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+
=============
J A M A I C A
=============
AIR JAMAICA: Lower House Selects Committee to Probe Operations
--------------------------------------------------------------
The Jamaican House of Representatives selected a committee to
probe into the financial and operational condition of Air
Jamaica.
Opposition Leader Bruce Golding and Opposition JLP Spokesman on
finance and planning Audley Shaw requested for the appointment
of a committee to investigate the airline.
The committee is tasked to:
-- study Air Jamaica's financial and operational status;
-- look into the management's future plans for the airline;
and
-- make suggestions and proposals that can cater to the
country's and the taxpayer's economic interest.
The committee is comprised of:
-- Dr. Omar Davies, as chairman;
-- Dr. Fenton Ferguson;
-- Dr. Wykeham McNeill;
-- Dr. Morais Guy;
-- Audley Shaw;
-- Mike Henry; and
-- Clive Mullings.
The Ministry of Finance and Planning projected that Air Jamaica
will lose as much as US$74 million this year, which is an
improvement from last year's US$135.9 million loss, the Observer
relates.
The government resumed control of Air Jamaica on December 2004,
and since then, began a major restructuring agenda to:
-- balance route network;
-- downsize costs;
-- introduce new capital; and
-- refinance short-term bank debts.
But the government's program did not meet the expected results
as the airline encountered a lot of obstacles, including
increased oil prices and grounding of its fleet to meet
international maintenance standards, the Observer says.
Mr. Shaw expressed his grave anxiety about Air Jamica's future,
telling the Observer, "Despite the promise of transparency, we
have not been getting the true picture."
* * *
Air Jamaica's US$200 million 9-3/8% notes due July 18, 2015,
carries Moody's B1 rating and Standard & Poor's B rating.
SUGAR COMPANY: Will Disclose Participants in Auction
----------------------------------------------------
The Sugar Enterprise Team met Monday to determine who among the
companies interested in the auction of the Sugar Company of
Jamaica's five factories met the requirements under the
pre-qualification exercise that ended Friday last week, Radio
Jamaica reports.
As reported in the Troubled Company Reporter-Latin America on
June 21, 2006, the National Investment Bank of Jamaica disclosed
in a notice that the new deadline for the submission of bids for
the five sugar factories of the Sugar Company had been set on
June 30, an extension of one week. Ten bids have been presented
by entities in the United States, Canada, Brazil and India to
buy the factories:
-- Frome,
-- Moneymusk,
-- Bernard Lodge,
-- Long Pond, and
-- Duckenfield.
The winning bidder will be announced by August, Radio Jamaica
relates.
Radio Jamaica states that there have been concerns on
international investors interested in the factories having
second thoughts. The All-Island Jamaica Cane Farmers
Association, in particular, is worried that the bidders could be
discouraged due to a complex pre-qualification exercise.
Based on the requirements, potential investors will have to
submit two bids, Radio Jamaica says, citing Allan Rickards, the
Chairman of the Cane Farmers Association.
Mr. Rickards told Radio Jamaica, "What we are concerned about is
that the pre-qualification procedure is far too complex, to the
extent that it actually amounts to two bids, two exercises, one
in which you have to supply quite complicated and detailed
information now, [in order] to be allowed to bid. And then,
having succeeded with that, you then have to go and go through
the whole bid process again."
Mr. Rickards said that the Jamaican government should have used
a less burdensome process, Radio Jamaica relates.
Sugar Company of Jamaica registered a net loss of almost US$1.1
billion for the financial year ended Sept. 30, 2005, 80% higher
than the US$600 million reported in the previous financial year.
Sugar Company blamed its financial deterioration to the
reduction in sugar cane production.
* JAMAICA: Receives 2,500 Energy-Saving Light Bulbs from Cuba
-------------------------------------------------------------
Jamaica has received 250,000 energy-saving light bulbs from
Cuba, the Jamaica Gleaner reports.
Senator Kern Spencer -- the State Minister in the Ministry
Industry, Technology, energy and Commerce -- told The Gleaner
that the initiative is part of the Jamaican government's efforts
to promote energy conservation. It was started in east
Kingston, where a around 32,000 fluorescent bulbs were exchanged
on a one-for-one basis with incandescent light bulbs in 6,000
homes.
According to The Gleaner, Jamaica's oil import bill rose 41% to
US$1.33 billion in 2005, compared with the year before.
The Gleaner relates that the arrival of the shipment has started
the second phase of the Cuban government's plan to distribute
four million fluorescent bulbs to Jamaica. These bulbs, with an
overall retail value estimated at US$2 billion, are being
provided by the Cuban government at no cost.
Senator Kern Spencer -- the State Minister in the Ministry
Industry, Technology, energy and Commerce -- told The Gleaner
that the bulbs were at the Kingston Wharf. According to him,
the bulbs would be distributed to residents of four
constituencies this week.
About 100 technicians from Cuba would be arriving in Jamaica
later this week to provide aid with the distribution, The
Gleaner says, citing Senator Spencer.
* * *
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
===========
GENERAL MOTORS: Evaluating US$3-Bil Alliance with Renault-Nissan
----------------------------------------------------------------
General Motors Corp. is evaluating an offer to ally with
Renault-Nissan, a French-Japanese company. Renault-Nissan is a
collaboration between Nissan Motor Co., Ltd., and Renault S.A.
The idea sprung up amidst GM's troubles as it faces market,
production and cost issues. GM is currently implementing a
turnaround plan that involves plant closings and job cuts.
The proponent, Kirk Kerkorian -- who owns 9.9% equity stake in
GM through his investment firm Tracinda Corp. -- urged GM
chairman Rick Wagoner to sell a 20% stake in the company to
Renault-Nissan. Nissan's board of directors has already
authorized its president and chief executive officer Carlos
Ghosn to pursue discussions on the deal. Renault's board has
also approved negotiating the transaction, The Wall Street
Journal reports. Renault-Nissan is on the lookout for deals to
enter into the U.S. market. According to channel4.com,
Renault-Nissan approached Ford on a deal last year. No update
on the matter was disclosed.
Jerome York, a GM director, advised Mr. Kerkorian on the
US$3-billion proposed alliance.
About General Motors
General Motors Corp. -- http://www.gm.com/-- the world's
largest automaker, has been the global industry sales leader for
75 years. Founded in 1908, GM today employs about 327,000
people around the world. With global headquarters in Detroit,
GM manufactures its cars and trucks in 33 countries including
Mexico. In 2005, 9.17 million GM cars and trucks were sold
globally under the following brands: Buick, Cadillac, Chevrolet,
GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and
Vauxhall. GM operates one of the world's leading finance
companies, GMAC Financial Services, which offers automotive,
residential and commercial financing and insurance. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
* * *
As reported in the Troubled Company Reporter on June 30, 2006,
Standard & Poor's Ratings Services held all its ratings on
General Motors Corp. -- including the 'B' corporate credit
rating and the 'B+' bank loan rating, but excluding the '1'
recovery rating -- on CreditWatch with negative implications,
where they were placed March 29, 2006.
As reported in the Troubled Company Reporter on June 22, 2006,
Fitch assigned a rating of 'BB' and a Recovery Rating (RR) of
'RR1' to General Motor's (GM) new $4.48 billion senior secured
bank facility. The 'RR1' (recovery of 90%-100%) is based on the
collateral package and other protections that are expected to
provide full recovery in the event of a bankruptcy filing.
As reported in the Troubled Company Reporter on June 21, 2006,
Moody's Investors Service assigned a B2 rating to the secured
tranches of the amended and extended secured credit facility of
up to US$4.5 billion being proposed by General Motors
Corporation, affirmed the company's B3 corporate family and SGL-
3 speculative grade liquidity ratings, and lowered its senior
unsecured rating to Caa1 from B3. The rating outlook is
negative.
GENERAL MOTORS: Renault/Nissan Alliance Won't Affect Ratings
------------------------------------------------------------
Moody's Investors Service stated that, based on what is
currently known, Tracinda Corporation's proposal that General
Motors Corporation (GM-Corporate Family Rating B3) explore the
opportunity to participate in the global partnership-alliance
between Renault S.A. (Baa1 Senior Unsecured) and Nissan Motor
Company, Ltd. (Baa1 Senior Unsecured) could have positive credit
implications for GM, but does not have any immediate impact on
the ratings of any of the companies. The proposal was contained
in a revised 13-D filing made by Tracinda, which owns a 9.9%
interest in GM. GM has stated that it has received no offer or
proposal from Renault/Nissan with respect to its participating
in the Renault/Nissan alliance and the Tracinda request will be
taken under advisement by its Board of Directors, but the
company has made no further comment.
While alliances between auto manufacturers have often
underperformed original expectations, Moody's notes that the
Renault-Nissan alliance has been particularly effective and
contributed to the successful turnaround of Nissan. The current
partnership-alliance between the French and Japanese automakers
provides benefits in the areas of product development, sourcing,
production, marketing and distribution, and operates on a global
basis. The addition of GM to the currently effective
partnership-alliance would present a number of opportunities as
well as significant challenges, in Moody's opinion. The broader
scale of an alliance that incorporated GM would present
incremental opportunities for cost savings from engineering,
purchasing, manufacturing and distribution. It would also
extend the alliance's presence in important markets such as
North America and Korea. However, achieving the benefits of
such an alliance would present significant challenges. The
product programs of the three manufacturers would need to be
rationalized in order to derive any meaningful cost savings, but
it could prove difficult to achieve a common view on the product
and marketing strategies of the many vehicle brands involved in
such an alliance. This could be particularly challenging with
respect to the European market where each manufacturer holds a
well-established business position (a combined market share of
22.8% in 2005). Moreover, the ultimate turnaround of GM's
business will require significant additional actions to address
the large legacy costs associated with the company's unionized
U.S. workforce. The potential benefits of the partnership-
alliance in addressing this critical issue are uncertain at this
time.
The Tracinda proposal indicates that as part of the partnership-
alliance Renault and Nissan could purchase a "significant
minority interest" in GM. Cross-shareholdings are often
features of alliances, and help to define the relative influence
of each partner in the alliance and its strategy. The credit
profile of Renault and Nissan would most likely not be affected
by a minor investment, however a more substantial financial and
operational involvement in GM would need to be assessed with
respect to its possible impact on the ratings of both companies.
If an actual partnership-alliance were to be entered into by the
three companies, Moody's would also focus on the impact, if any,
that this would have on the liquidity profile of each company.
With respect to GM, Moody's notes that the company has taken
significant actions to strengthen its liquidity profile, and
while additional cash investment by Renault and Nissan could be
helpful, it would be unlikely to meaningfully benefit the
rating. Rather, Moody's believes that GM's rating prospects
will be more directly associated with its ability to reestablish
its business position and stem cash losses. It is unclear at
this time whether the proposed partnership alliance would
meaningfully improve the timing or ultimate success of achieving
such improvements.
Moody's will continue to monitor developments with respect to
Tracinda's proposal, including any response that might be
forthcoming from GM, and will comment on any impact that new
developments have on the ratings of Renault, Nissan or GM.
General Motors Corporation, headquartered in Detroit, Michigan,
is the world's largest automotive manufacturer.
Headquartered in Boulogne Billancourt, France, Renault S.A. is
one of Europe's leading car manufacturers.
Nissan Motor Co., Ltd., headquartered in Tokyo, is a leading
global automobile manufacturer.
MERIDIAN AUTOMOTIVE: Court Okays Settlement of Centralia Lawsuit
----------------------------------------------------------------
Meridian Automotive Systems, Inc., and its debtor-affiliates
obtained from the U.S. Bankruptcy Court for the District of
Delaware approval of a settlement of the lawsuit and the
agreement to modify the Centralia retiree benefits.
As reported in the Troubled Company Reporter on June 9, 2006,
the United Auto Workers Local Union 1766 and the Retirees of the
Centralia facility advise the Court that they support the
Debtors' request.
Robert S. Brady, Esq., at Young Conaway Stargatt & Taylor, LLP,
in Wilmington, Delaware, related that the Debtors acquired a
facility in Centralia, Illinois, from Cambridge Industries in
July 2000. Cambridge, in turn, had acquired the facility from
Rockwell International in August 1994.
The Debtors closed their Centralia facility in 2003. Although
there are no active employees at Centralia, approximately 129
retirees continue to draw health and life insurance benefits
under a retiree benefits welfare plan -- Meridian Automotive
Systems, Inc., Welfare Benefits Plan for the Centralia, Illinois
Bargaining Unit Associates.
The Debtors assumed the retiree benefits negotiated first by
Rockwell International, and then by Cambridge, with the United
Auto Workers Local Union 1766 prior to the 2000 Centralia
acquisition. The collective bargaining agreement with the UAW
expired on Oct. 1, 2003.
Centralia Plan
The Debtors' accumulated post-employment benefit obligation for
the Centralia Plan is estimated at US$26,352,000, their annual
cash benefit payments total US$1,618,000, and their annual
expense is estimated at US$1,403,000.
According to Mr. Brady, under the current Centralia Plan,
participants:
(a) pay no premiums;
(b) have in-network deductibles of US$50 per year for
individuals and US$100 for families;
(c) pay 10% co-insurance for most in-network coverage;
(d) pay US$3 co-pays for all prescription medications; and
(e) receive comprehensive dental, hearing, and life
insurance.
Lawsuit
When the CBA expired, the Debtors informed the UAW that they
were discontinuing retiree health care coverage under the Plan,
Mr. Brady tells the Court.
The retirees filed a lawsuit seeking a preliminary injunction to
prevent the Debtors from discontinuing the retiree benefits.
The United States District Court for the Eastern District of
Michigan granted the Retirees' request. The United States Court
of Appeals for the Sixth Circuit affirmed the District Court's
ruling.
Because of the automatic stay, the Michigan District Court has
not yet entered a final order, and the Debtors have contemplated
an appeal.
Negotiation and Settlement
To resolve the dispute and save money, the Debtors proposed
modifications to the Centralia Plan.
The Union and the Retirees sent a counter-proposal.
On April 26, 2006, the Debtors accepted the counterproposal,
contingent upon the Court's approval of a Settlement and
Memorandum of Agreement and the dismissal with prejudice of the
Lawsuit. The parties executed a written agreement embodying
these terms on May 17, 2006.
Under the Agreement, Retirees will continue to:
(a) pay no premiums;
(b) have in-network deductibles of US$50 per year for
individuals and US$100 for families; and
(c) pay 10% co-insurance for most in-network coverage.
The Agreement eliminates lifetime maximum limits on coverage,
annual maximums, deductibles, and coinsurance for most
preventive care.
The coverage for emergency care will be modified to allow full
coverage when a person reasonably believes, in essence, that
emergency care is needed.
Current hearing, dental, and life insurance benefits will
continue unchanged.
The parties have agreed to:
-- establish a new PPO Plan,
-- modify reimbursement levels to be based on "reasonable
and customary" approved amounts,
-- establish a series of new co-pays, and
-- increase annual maximum out-of-pocket expenses:
* from US$200 per individual to US$300 per individual;
and
* US$400 per family to US$600 per family.
Prescription drug co-pays will now range from US$4 to US$12.
A full-text copy of the Settlement and MOA is available for free
at http://ResearchArchives.com/t/s?af4
The Debtors will have significant savings as a result of the
retiree plan modification, Mr. Brady maintains.
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. 31; Bankruptcy Creditors'
Service, Inc., 215/945-7000).
MERIDIAN AUTOMOTIVE: Has Until Nov. 1 to Remove Civil Actions
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware further
extended the period within which Meridian Automotive Systems,
Inc., and its debtor-affiliates may file notices of removal of
prepetition civil actions to Nov. 1, 2006.
As reported in the Troubled Company Reporter on June 12, 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 told 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 Court also approved the Debtors' request without prejudice
to:
(a) any position the Debtors may take regarding whether
Section 362 of the Bankruptcy Code applies to stay any
civil action pending against them; and
(b) the Debtors' 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. 31; Bankruptcy Creditors'
Service, Inc., 215/945-7000).
=================
N I C A R A G U A
=================
* NICARAGUA: Taiwan Threatens to Suspend All Ties with Nation
-------------------------------------------------------------
Taiwan has threatened to cut all ties with Nicaragua if the
latter restores diplomatic relations with China, Taipei Times
reports.
According to Taipei Times, Daniel Ortega -- the former president
and a leader of the Sandinesta Front, the opposition party in
Nicaragua -- said in May that Nicaragua should reconsider its
relationship with the most attractive market in the world, which
is China.
Taipei Times relates that leaders from Sandinista have promised
to reduce contact with Taiwan to a commercial level if they
would win the presidential election on Nov. 5.
If the Sandinista wins and break diplomatic ties with Taiwan,
the latter will have no office in Nicaragua, Taipei Times
states, citing Ismael Ming Wen Wong, Taiwan's chief negotiator
in Managua.
"Let's hope that this does not succeed," Mr. Wong told Taipei
Times.
* * *
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 R A G U A Y
===============
* PARAGUAY: Exports Will Have Zero Tariffs in Venezuela
-------------------------------------------------------
Exports from Paraguay will have zero tariffs in Venezuela, as
part of the membership procedure in Mercosur, Prensa Latina
reports.
According to Prensa Latina, Venezuela will be an official member
of the Mercosur, a free trading area developed in the 1990s.
Gustavo Marquez, the Venezuelan Minister for Integration and
Foreign Trade, told Prensa Latina that the decision is mentioned
in one of the two annex documents of the membership protocol,
which was to be signed at an extraordinary summit meeting of
Mercosur on July 4.
Minister Marquez told the TV program "Confidentially" in an
interview that the cancellation of the tariffs was a gesture of
the Venezuelan government to recognize existing differences
between members of the Mercosur trade bloc.
Benefits of the accord will be implemented as soon as
parliaments of the member nations approve the membership
protocol, Prensa Latina relates. According to Minister Marquez,
among products benefiting from the measure will be Uruguay's
soya.
Prensa Latina relates that the protocol includes a chronogram
for the full membership of Venezuela. A working group will be
set up and within 180 days specify terms, times and ways of
integration.
There will be an increase of trade with other Mercosur members,
Minister Marquez told Prensa Latina. Annual trade between
members is currently about US$3 billion.
* * *
As reported in the Troubled Company Reporter on May 26, 2006,
Moody's Investors Service upgraded these ratings on Paraguay:
-- Long-term foreign currency rating: B3 from Caa1 with
stable outlook.
Moody's assigned this rating:
-- Short-term foreign currency rating: Not Prime.
* * *
Standard & Poor's assigned these ratings on Paraguay:
-- Foreign Currency LT Debt B-
-- Local Currency LT Debt B-
-- Foreign Currency ST Debt C
-- Local Currency ST Debt C
=======
P E R U
=======
DEL MONTE: Unit Acquires Milk-Bone from Kraft Foods for US$580MM
----------------------------------------------------------------
Del Monte Corp. has completed its previously announced
acquisition of certain pet product assets, including the Milk-
Bone brand, for approximately US$580 million from Kraft Foods
Inc.
"The addition of Milk-Bone, with its strong brand position in
the fast-growing pet snacks category, is another step in the
implementation of Project Brand, our strategy for increasing
shareholder value as we improve the overall margin and growth
potential for the entire Company," said Rick Wolford, Del
Monte's Chairman and Chief Executive Officer. "This
transaction, coupled with our recent acquisition of Meow Mix,
creates an improved platform for developing innovative and
successful products, significantly improving Del Monte's
competitive position in the pet food category."
The acquisition, announced March 16, 2006, was financed through
additional senior debt in the amount sufficient to fund the
purchase price. Del Monte Foods expects to realize
approximately US$125 million of net present value tax benefits
associated with the amortization of intangible assets as a
result of the acquisition.
About Del Monte Foods
Headquartered in San Francisco, Calif., Del Monte Foods Company
-- http://www.delmonte.com/-- produces and distributes
processed vegetables, fruit and tomato products, and pet
products. The products are sold under Del Monte, Contadina,
S&W, Starkist, College Inn, 9Lives, Kibbles 'n Bits, Meow Mix,
Milk-Bone, Pup-Peroni, Snausages, Pounce, and Meaty Bone. The
Group has food-processing plants in South America and has
subsidiaries in Venezuela, Colombia, Ecuador and Peru. The
production facilities are operated in California, the Midwest,
Washington and Texas, as well as 7 distribution centers.
* * *
Moody's Investors Service confirmed on April 26, 2006, Del Monte
Corp.'s Ba3 senior secured debt and corporate family ratings, as
well as its B2 subordinated debt rating. Moody's also assigned
Ba3 ratings to two senior secured term B loans being established
by the company, as well as a Ba3 rating to a US$50 million step-
up in its senior secured revolving credit facility.
* * *
Standard & Poor's Ratings Services assigned on April 26, 2006,
its 'BB' bank loan ratings and '1' recovery ratings to Del Monte
Corp.'s proposed US$975 million add-on to its existing senior
secured term loan facilities, indicating the expectation of full
(100%) recovery of principal in the event of a payment default.
At the same time, Standard & Poor's affirmed its 'BB-' long-term
and 'B-1' short-term corporate credit ratings. S&P said the
ratings outlook is negative.
* * *
Fitch Ratings revised on March 21, 2006, the Ratings Outlook for
Del Monte Food Company and Del Monte Corp. to Negative from
Stable. The ratings have been affirmed as:
Del Monte Foods Company (Parent):
-- Issuer default rating 'BB'
Del Monte Corp. (Operating Subsidiary):
-- IDR 'BB'
-- Senior secured bank facility 'BB+'
-- Senior subordinated notes 'BB-'
These ratings actions affect Del Monte's US$1.3 billion of debt
outstanding as of Jan. 29, 2006.
* PERU: Anti-Free Trade Group Head Says Pact with US Is Treason
---------------------------------------------------------------
The ratification of Peru's Free Trade Agreement or FTA with the
United States is treason to the farming sector, Prensa Latina
reports, citing Antolin Huascar, who heads both the National
Coordination Office against FTA and the National Confederation
of Farmers.
Mr. Huascar told Prensa Latina that farmers in Peru felt
betrayed when the government signed the FTA overnight. Mr.
Huascar called the 79 lawmakers who voted for the ratification
of the FTA traitors, saying that they have yielded to the
economic and political interests that control them.
Prensa Latina reports that the congress approved the FTA on a
79-14 majority, plus six abstentions, during a 15-hour session
that ended on Wednesday. A group led by congressmen of Union
por el Peru Party had shouted their disapproval.
"The whim of President Alejandro Toledo, who since the very
start of talks said the FTA with the US would be signed no
matter what, came true. He imposed his whim without thinking
about the people who elected him," Mr. Huascar complained to
Prensa Latina.
Prensa Latina relates that Mr. Huascar said that the National
Confederation of Farmers refuses to recognize the deal, saying
that it benefits a minority.
An agrarian strike will be held on July 4, Mr. Huascar told
Prensa Latina, adding that any violence occurring from it will
be blamed on the government.
* * *
Fitch Ratings assigned these ratings on Peru:
Rating Rating Date
------ -----------
Country Ceiling BB Nov. 18, 2004
Long Term IDR BB Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating BB+ Dec. 14, 2005
=====================
P U E R T O R I C O
=====================
AOL LATIN AMERICA: Deregisters Shares of Class A Common Stock
-------------------------------------------------------------
All of the outstanding shares of America Online America, Inc.'s
class A common stock were cancelled on June 30, 2006, the
effective date of the Joint Plan of Reorganization and
Liquidation that the company and its subsidiaries AOL Puerto
Rico Management Services, Inc., America Online Caribbean Basin,
Inc. and AOL Latin America Management LLC; submitted to the U.S.
Bankruptcy Court for the District of Delaware.
AOLA has filed the Post-Effective Amendment No.1 to terminate
the Registration Statements and deregister all shares of class A
common stock which were registered under the Registration
Statements and which have not been issued or sold prior to the
date of the Amendment.
As previously reported, the U.S. Bankruptcy Court approved
AOLA's and its subsidiaries' plan of reorganization on
April 25, 2006.
Headquartered in Fort Lauderdale, Florida, America Online
LatinAmerica, Inc. -- http://www.aola.com/-- offers AOL-branded
Internet service in Argentina, Brazil, Mexico, and Puerto Rico,
as well as localized content and online shopping over its
proprietary network. Principal shareholders in AOLA are
Cisneros Group, one of Latin America's largest media firms,
Brazil's Banco Itau, and Time Warner, through America Online.
The Company and its debtor-affiliates filed for Chapter 11
protection on June 24, 2005 (Bankr. D. Del. Case No. 05-11778).
Pauline K. Morgan, Esq., and Edmon L. Morton, Esq., at Young
Conaway Stargatt & Taylor, LLP and Douglas P. Bartner, Esq., at
Shearman & Sterling LLP represent the Debtors in their
restructuring efforts. When the Debtors filed for protection
from their creditors, they listed total assets of US$28,500,000
and total debts of US$181,774,000.
INTERLINE BRANDS: Completes Acquisition of American Sanitary
------------------------------------------------------------
Interline Brands, Inc., completed its acquisition of
substantially all of the assets of American Sanitary Inc. aka
AmSan.
Michael Grebe, Interline's President and Chief Executive
Officer, commented, "We are delighted in welcoming AmSan into
the Interline family and look forward to a successful
integration and a bright future together. We have acquired a
market leader in an attractive growth market, and continue to
believe the acquisition offers numerous opportunities to grow
sales and improve profitability."
About AmSan
AmSAn is a national distributor and direct marketer of
janitorial and sanitary supplies, serves over 44,000 customers
through 43 locations throughout the U.S.
About Interline
Headquartered in Jacksonville, Florida, Interline Brands, Inc.
-- http://www.interlinebrands.com/-- is a leading national
distributor and direct marketer of maintenance, repair and
operations products to approximately 160,000 professional
contractors, facilities maintenance professionals, and specialty
distributors across North America and Puerto Rico.
At March 31, 2006, Interline Brands, Inc.'s balance sheet showed
a stockholders' deficit of US$159,234,000, compared to a
US$152,878,000 deficit at Dec. 30, 2005.
MUSICLAND HOLDING: Xerox Wants Stay Lifted to Set Off Deposit
-------------------------------------------------------------
Xerox Capital Services, LLC, as servicing agent for Xerox
Corp., holds a US$1,023,805 claim, pursuant to certain leases
for goods and services it executed with Musicland Holding Corp.
and its debtor-affiliates on April 19, 2004.
On May 4, 2004, in connection with the execution of the Leases,
the Debtors provided Xerox with a US$200,000 security deposit,
Chantel K. Adams, Esq., at Kizer, Hood & Morgan, L.L.P., in
Baton Rouge, Louisiana, tells the U.S. Bankruptcy Court for the
Southern District of New York. The Leases provide that Xerox
can apply any of the deposit towards the obligations owed by
Debtors.
Xerox is owed a debt by the Debtors as evidenced by its proof of
claim, Ms. Adams states. Xerox also owes an obligation to the
Debtors in the form of the security deposit it is holding.
Ms. Adams asserts that the Debtors' debt and Xerox's obligation
to the Debtors are mutual obligations. Thus, Xerox should be
allowed the right to set off the security deposit against its
claims for services and goods under non-bankruptcy law.
However, Xerox is prevented from exercising its right of setoff
by the automatic stay imposed by Section 362(a)(7) of the
Bankruptcy Code.
Accordingly, Xerox asks the Court to modify the stay to allow it
to apply the US$200,000 security deposit to the US$1,023,805
claim.
Ms. Adams relates that the Debtors have not assumed or rejected
its leases with Xerox. If the Debtors assume the Leases, Xerox
intends to require them to deposit an additional US$200,000
pursuant to the terms of Lease.
Xerox agrees to allow the Debtors additional time to assume or
reject the Leases, according to Ms. Adams. Furthermore, Xerox
agrees not to file a motion to compel acceptance or rejection of
the Leases as long as the Debtors do not become delinquent, for
more than 90 days, on their postpetition payments to Xerox.
Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products. The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064). James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts. Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors. When the Debtors filed for
protection from their creditors, they estimated more than US$100
million in assets and debts. (Musicland Bankruptcy News, Issue
No. 13; Bankruptcy Creditors' Service, Inc., 215/945-7000)
=================================
T R I N I D A D & T O B A G O
=================================
BWIA WEST: Union Slams Management Attempt to Pin Woes on Workers
----------------------------------------------------------------
British West Indies Airways aka BWIA received criticism from the
Aviation Communication and Allied Workers or ACAWU last week for
trying to blame workers for the airline's problems, Newsday
reports.
ACAWU told Newsday that the workers remain 100% committed to
ensuring BWIA's survival.
As reported in the Troubled Company Reporter-Latin America on
July 4, 2006, BWIA failed to agree on a new collective
bargaining agreement with ACAWU during their latest round of
talks on June 29. The negotiations have been going on for
months. BWIA said that Arthur Lok Jack, the airline's chairman,
had asked the Chief Executive Officer to present to the board of
directors by June 30, 2006, an analysis as well as professional
recommendations on the future viability of BWIA. BWIA explained
that the inability to reach an agreement meant that BWIA has
continued to incur significant losses and the business recovery
plan submitted to the government, "specifically designed to
reduce those losses, is now in jeopardy". BWIA had said that
the recent protest by employees had added to the loss position
of the airline, damaging its reputation.
Curtis John, the head of ACAWU, told Newsday that the statements
released by BWIA officials surprised him. He suggested that if
that was how BWIA felt, all of its managers should be dismissed
and the union should take over.
According to Newsday, Mr. John rejected BWIA's assertion of
workers taking industrial action, saying that this never
occurred.
The reason on the negotiation's little progress over the last
few months is because BWIA officials have been very unclear on
its plans for the airline, particularly on the draft business
plan, Newsday states, citing Mr. John.
A copy of the plan was sent to Dr. Lenny Saith, the Public
Administration and Information Minister in April, Mr. John told
Newsday. ACAWU, however, has not received a copy and has been
repeatedly denied of it. The union could not negotiate properly
when it does not have all the facts.
However, ACAWU is still willing to meet with BWIA's management
to continue negotiations, Mr. John told Newsday, adding that he
would not refuse talks with BWIA because it would be the workers
who would lose much if the airline would close down.
BWIA was founded in 1940, and for more than 60 years has been
serving the Caribbean islands from Trinidad and Tobago, the hub
of the Americas, linking the twin island republic and many other
Caribbean islands with North America, South America, the United
Kingdom and Europe.
The airline has reportedly been losing US$1 million a week due
to poor operational management. An employee survey revealed
that lack of responsibility by the management is a major issue
in the company.
=============
U R U G U A Y
=============
* URUGUAY: Exports Will Have Zero Tariffs in Venezuela
------------------------------------------------------
Exports from Uruguay will have zero tariffs in Venezuela, as
part of the membership procedure in Mercosur, Prensa Latina
reports.
According to Prensa Latina, Venezuela will be an official member
of the Mercosur, a free trading area developed in the 1990s.
Gustavo Marquez, the Venezuelan Minister for Integration and
Foreign Trade, told Prensa Latina that the decision is mentioned
in one of the two annex documents of the membership protocol,
which was to be signed at an extraordinary summit meeting of
Mercosur on July 4.
Minister Marquez told the TV program "Confidentially" in an
interview that the cancellation of the tariffs was a gesture of
the Venezuelan government to recognize existing differences
between members of the Mercosur trade bloc.
Benefits of the accord will be implemented as soon as
parliaments of the member nations approve the membership
protocol, Prensa Latina relates. According to Minister Marquez,
among products benefiting from the measure will be Uruguay's
soya.
Prensa Latina relates that the protocol includes a chronogram
for the full membership of Venezuela. A working group will be
set up and within 180 days specify terms, times and ways of
integration.
There will be an increase of trade with other Mercosur members,
Minister Marquez told Prensa Latina. Annual trade between
members is currently about US$3 billion dollars.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 26, 2006, Fitch Ratings revised the Outlooks on the Oriental
Republic of Uruguay's Sovereign ratings to Positive from Stable.
The long-term foreign currency Issuer Default Rating is affirmed
at 'B+', and the long-term local currency IDR is affirmed at
'BB-'. The Short-term IDR is affirmed at 'B' and the Country
Ceiling is affirmed at 'BB-'.
* * *
Moody's upgraded Uruguay's long-term foreign currency rating to
B1 from B3 under the revised foreign currency ceilings on
May 24, 2006.
=================
V E N E Z U E L A
=================
PETROLEO BRASILEIRO: Starting Gas Exploration in Venezuela
----------------------------------------------------------
Petroleo Brasileiro SA or Petrobras, Brazil's state-oil company,
will start a gas exploration venture in San Carlos in Cojedes,
Venezuela, El Universal reports, citing news agency ABN
reported,
According to El Universal Petrobras assumed a license for gas
development from an Argentinean company that obtained it in 2001
but couldn't fulfill its commitments for economic reasons, Jorge
Luis Sanchez, the chair of Ente National del Gas, explained.
Petrobras is currently conducting seismic surveys in order to
drill a test well, El Universal says. Upon completion of this
work, Petrobras will submit the development plan for approval
from Venezuela's Ministry of Energy and Petroleum.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
S.A. aka Petrobras was founded in 1953. The company explores,
produces, refines, transports, markets, distributes oil and
natural gas and power to various wholesale customers and retail
distributors in the country.
* * *
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's and its foreign currency long-term debt is
rated BB by Fitch.
* * *
Fitch assigned these ratings on Petroleo Brasileiro's senior
unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
* VENEZUELA: Will Slash Tariffs on Uruguay & Paraguay Exports
-------------------------------------------------------------
Exports from Paraguay and Uruguay will have zero tariffs in
Venezuela, as part of the membership procedure in Mercosur,
Prensa Latina reports.
According to Prensa Latina, Venezuela will be an official member
of the Mercosur, a free trading area developed in the 1990s.
Gustavo Marquez, the Venezuelan Minister for Integration and
Foreign Trade, told Prensa Latina that the decision is mentioned
in one of the two annex documents of the membership protocol,
which was to be signed at an extraordinary summit meeting of
Mercosur on July 4.
Minister Marquez told the TV program "Confidentially" in an
interview that the cancellation of the tariffs was a gesture of
the Venezuelan government to recognize existing differences
between members of the Mercosur trade bloc.
Benefits of the accord will be implemented as soon as
parliaments of the member nations approve the membership
protocol, Prensa Latina relates. According to Minister Marquez,
among products benefiting from the measure will be Uruguay's
soya.
Prensa Latina relates that the protocol includes a chronogram
for the full membership of Venezuela. A working group will be
set up and within 180 days specify terms, times and ways of
integration.
There will be an increase of trade with other Mercosur members,
Minister Marquez told Prensa Latina. Annual trade between
members is currently about US$3 billion dollars.
Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Stella
Mae Hechanova, and Christian Toledo, Editors.
Copyright 2006. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
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Information contained herein is obtained from sources believed
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