/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/060929.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 Friday, September 29, 2006, Vol. 7, Issue 194 Headlines A R G E N T I N A BALL CORP: Moody's Assigns Loss-Given-Default Rating CITYRED SA: Trustee Verifies Proofs of Claim Until Nov. 8 FUNDACION BANCO: Claims Verification Deadline Is Set for Oct. 20 MOLISE SA: Seeks for Court Approval to Reorganize Business PAN FORMO: Last Day for Verification of Claims Is on Dec. 5 SC HOLDING: Verification of Proofs of Claim Is Until Oct. 17 VERIFONE HOLDINGS: Moody's Affirms Low-B Ratings YPF SA: Has No Rival in San Juan Exploration Tender * ARGENTINA: Studies Draft of Joint Venture Debt Payment B A H A M A S ULTRAPETROL (BAHAMAS): Selling 12.5 Million Shares at US$15 Each B E R M U D A ALPHA CARGO: Court Appoints Official Receiver as Liquidator FOSTER WHEELER: Moody's Assigns Loss-Given-Default Rating GALVEX HOLDINGS: Judge Drain Converts Ch. 11 Case to Chapter 7 GALVEX HOLDINGS: US Trustee Names John Pereira as Ch. 7 Trustee INTELSAT (BERMUDA): Moody's Assigns Loss-Given-Default Rating INTELSAT CORP: Moody's Assigns Loss-Given-Default Rating INTELSAT LTD: Moody's Assigns Loss-Given-Default Rating LUNDIN SUDAN (BLOCK5B): Proofs of Claim Filing Is Until Oct. 12 REFCO GROUP: Court Okays US$705MM Payment to Secured Creditors REFCO: Three Parties Object to Accord with Prepetition Lenders REFCO INC: Clarifies Trigger Date for Settlement with Lenders WARNER CHILCOTT: Prices Initial Public Offering at US$15 a Share WARNER CHILCOTT: FTC Files a New Motion in Ongoing Ovcon Lit. WARNER CHILCOTT: Moody's Assigns Loss-Given-Default Rating WARNER CHILCOTT: S&P Upgrades Corp. Credit Rating to B+ from B B O L I V I A BANCO MERCANTIL: Posts US$2.88 Mil. First Half 2006 Net Income B R A Z I L AES CORP: S&P Says Unit's Offering Won't Affect Credit Rating ALERIS INTERNATIONAL: Moody's Assigns Loss-Given-Default Rating AMERICAN SAFETY: Moody's Assigns Loss-Given-Default Ratings BANCO NACIONAL: Provides US$10M Loan to Fund Vulcabras's Exports BANCO NACIONAL: Relaxes Funding Conditions for Power Projects BRASKEM SA: Obtains US$184.6MM from Tender Offer of 12.50% Notes COMPANHIA SIDERURGICA: Names Juarez Avelar as New Exec. Director GERDAU AMERISTEEL: Moody's Assigns Loss-Given-Default Rating NOVELIS INC: Moody's Assigns Loss-Given-Default Rating PETROLEO BRASILEIRO: Closes Issuance of 35B Yen-Dominated Bonds TELE NORTE: Nonvoting Shareholders Balk at Reorganization Plan * BRAZIL: Google Won't Turn Over Orkut User Data to Authorities C A Y M A N I S L A N D S CARLYLE HIGH: Creditors Must Present Proofs of Claim by Oct. 19 FIGARO LIMITED: Last Day to File Proofs of Claim Is on Oct. 19 HENDERSON UK: Shareholders Gather for a Final Meeting on Oct. 19 LIZMAR INVESTMENT: Proofs of Claim Filing Is Until Oct. 19 MODENA LIMITED: Creditors Must File Proofs of Claim by Oct. 19 PHYSICIANS SECURITY: Final Shareholders Meeting Is on Oct. 19 PMA EUROPEAN: Last Shareholders Meeting Is Scheduled for Oct. 19 PMA EUROPEAN (MASTER): Final Shareholders Meeting Is on Oct. 19 SAND DOLLAR: Proofs of Claim Filing Deadline Is Set for Oct. 19 SCOTTISH RE: Terminates & Reduces Syndicated Credit Facilities SILVER TOWER: Shareholders Convene for a Last Meeting on Oct. 19 C H I L E SHAW GROUP: Moody's Assigns Loss-Given-Default Rating C O L O M B I A NOVELL INC: Wells Fargo Issues Default Notice E L S A L V A D O R SPECTRUM BRANDS: Moody's Assigns Loss-Given-Default Rating G U A T E M A L A UNIVERSAL CORP: Subsidiary Sells Businesses for US$527 Million UNIVERSAL CORP: Moody's Assigns LGD5 Loss-Given-Default Rating H O N D U R A S * HONDURAS: Gets United States' Support on Energy Policy J A M A I C A DIGICEL LTD: Will Invest US$100MM to Upgrade Infrastructure SUGAR COMPANY: Dhampur Sugar to Bid for Firm's Five Factories M E X I C O BALLY TOTAL: Moody's Assigns Loss-Given-Default Rating BERRY PLASTICS: Moody's Assigns Loss-Given-Default Rating CHEMTURA CORP: Moody's Assigns Loss-Given-Default Rating CHURCH & DWIGHT: Moody's Assigns Loss-Given-Default Ratings CINRAM INTERNATIONAL: Moody's Assigns Loss-Given-Default Rating DELTA AIR: Names New Officials for International Sales DESARROLLADORA HOMEX: Names David Sanchez-Tembleque as CEO DIRECTV HOLDINGS: Moody's Assigns Loss-Given-Default Rating EMPRESAS ICA: ICA Fluor to Bid for State Power Firm's Revamp GRUPO TMM: Purchases New Anchor Handler Tug Supply Vessel LIBBEY GLASS: Moody's Assigns Loss-Given-Default Rating MERIDIAN AUTOMOTIVE: Inks Pacts with Mazda & Daimler/Chrysler NUEVO LEON: Ministry to Seek MXN1.7 Bil. for Highway Projects VITRO: Shareholders Approve MXN62,857,143 Capital Stock Increase N I C A R A G U A * NICARAGUA: Court Denies Union Fenosa's Request for Injunction P A N A M A SOLO CUP: Moody's Assigns Loss-Given-Default Rating * PANAMA: In Talks with Harken Energy on Exploratory Drilling P A R A G U A Y * PARAGUAY: Studies Draft of Joint Venture Debt Payment P E R U PETROLEO BRASILEIRO: Inks Development Accord with Petroperu P U E R T O R I C O ADELPHIA COMMS: Files Further Changes to Plan of Reorganization ADELPHIA COMMS: Lists 100 Pacts Assumed by Time Warner & Comcast CHATTEM INC: Moody's Assigns Loss-Given-Default Rating CONSOLIDATED CONTAINER: Moody's Assign Loss-Given-Default Rating DRESSER INC: Moody's Assigns Loss-Given-Default Rating EAGLE FAMILY: Moody's Assigns Loss-Given-Default Rating GLOBAL HOME: Panel Wants Basham Ringe as Special Mexican Counsel SEARS HOLDINGS: Seeks Leave to Appeal Divisional Court Decision UNIVISION COMMS: Shareholders OK US$13.7B Purchase by Investors T R I N I D A D & T O B A G O BRITISH WEST: Airline's Closure May Disperse Union SUPERIOR ENERGY: Moody's Rates US$300M Sr. Unsec. Notes at B1 U R U G U A Y * URUGUAY: State Firm Opens Bids for Renewable Power Supply V E N E Z U E L A CITGO PETROLEUM: Allows 7-Eleven Supply Contract to Expire PEABODY ENERGY: Moody's Assigns Loss-Given-Default Rating * VENEZUELA: Ends Orimulsion Production * VENEZUELA: Puts Up US$500M Fund to Back Projects with Russia - - - - - ================= A R G E N T I N A ================= BALL CORP: Moody's Assigns Loss-Given-Default Rating ---------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the non-paper Packaging sector, the rating agency confirmed its Ba1 Corporate Family Rating for Ball Corp. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Novelis Inc: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$715 million Sr. Secured Multi-Currency Revolver due 2011 Ba1 Ba1 LGD4 52% US$35 million Sr. Sec. Revolver due 2011 "Canadian revolver" Ba1 Ba1 LGD4 52% GBP85 million (US$157.2) Sr. Sec. Term Loan A due 2011 Ba1 Ba1 LGD4 52% EUR350 million (US$447.7) Sr. Sec. Term Loan B due 2011 Ba1 Ba1 LGD4 52% CAD149 million (US$133.5) Sr. Sec. Term Loan C due 2011 Ba1 Ba1 LGD4 52% US$500 million Sr. Sec. Term Loan D due 2011 Ba1 Ba1 LGD4 52% US$550 million Sr. Unsec. 6.875% notes due Dec 2012 Ba2 Ba1 LGD4 52% US$450 million Sr. Unsec. Notes due Mar 2018 Ba2 Ba1 LGD4 52% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). CITYRED SA: Trustee Verifies Proofs of Claim Until Nov. 8 --------------------------------------------------------- Raul Horacio Trejo, the court-appointed trustee for Cityred S.A.'s bankruptcy proceeding, will verify creditors' proofs of claim until Nov. 8, 2006. Mr. Trejo will present the validated claims in court as individual reports on Dec. 21, 2006. A court in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion and the objections and challenges raised by Cityred and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Cityred's accounting and banking records will follow on March 8, 2007. Mr. Trejo is also in charge of administering Cityred's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Cityred S.A. Medrano 1922 Buenos Aires, Argentina The trustee can be reached at: Raul Horacio Trejo Avenida Corrientes 818 Buenos Aires, Argentina FUNDACION BANCO: Claims Verification Deadline Is Set for Oct. 20 ---------------------------------------------------------------- Marta Lucena, the court-appointed trustee for Fundacion Banco Almafuerte's bankruptcy proceeding, will verify creditors' proofs of claim until Oct. 20, 2006. Under the Argentine bankruptcy law, Ms. Lucena is required to present the validated claims in court as individual reports. Court No. 8 in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion and the objections and challenges raised by Fundacion Banco and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Ms. Lucena will also submit a general report that contains an audit of Fundacion Banco's accounting and banking records. The report submission dates have not been disclosed. Fundacion Banco was forced into bankruptcy at the request of Banco Finansur. Clerk No. 16 assists the court in the proceeding. The debtor can be reached at: Fundacion Banco Almafuerte Florida 716 Buenos Aires, Argentina The trustee can be reached at: Marta Lucena Parana 774 Buenos Aires, Argentina MOLISE SA: Seeks for Court Approval to Reorganize Business ---------------------------------------------------------- Court No. 7 in Buenos Aires is studying the merits of Molise S.A's petition to reorganize its business after it stopped paying its obligations on May 17, 2006. The petition, once approved by the court, will allow Molise to negotiate a settlement plan with its creditors in order to avoid a straight liquidation. Clerk No. 14 assists the court in the case. The debtor can be reached at: Molise S.A. Cordoba 1184 Buenos Aires, Argentina PAN FORMO: Last Day for Verification of Claims Is on Dec. 5 ----------------------------------------------------------- Maria Festugato, the court-appointed trustee for Pan Formo S.A.'s bankruptcy case, will verify creditors' proofs of claim until Dec. 5, 2006. Under the Argentine bankruptcy law, Ms. Festugato is required to present the validated claims in court as individual reports. Court No. 11 in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion and the objections and challenges raised by Pan Formo and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Ms. Festugato will also submit a general report that contains an audit of Pan Formo's accounting and banking records. The report submission dates have not been disclosed. Pan Formo was forced into bankruptcy at the request of Marcel Perrone, whom it owes US$3,500. Clerk No. 21 assists the court in the case. The debtor can be reached at: Pan Formo S.A. Santa Fe 2687 Buenos Aires, Argentina The trustee can be reached at: Maria Festugato Lavalle 1607 Buenos Aires, Argentina SC HOLDING: Verification of Proofs of Claim Is Until Oct. 17 ------------------------------------------------------------ Ruben Hugo Faure, the court-appointed trustee for SC Holding S.A.'s bankruptcy case, will verify creditors' proofs of claim until Oct. 17, 2006. Mr. Faure will present the validated claims in court as individual reports on Nov. 28, 2006. A court in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion and the objections and challenges raised by SC Holding and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of SC Holding's accounting and banking records will follow on Feb. 13, 2007. Mr. Faure is also in charge of administering SC Holding's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: SC Holding S.A. Libertad 844 Buenos Aires, Argentina The trustee can be reached at: Ruben Hugo Faure Avenida Corrientes 1312 Buenos Aires, Argentina VERIFONE HOLDINGS: Moody's Affirms Low-B Ratings ------------------------------------------------ Moody's Investors Service has affirmed the B1 corporate family rating of VeriFone and revised the rating outlook to stable from negative. At the same time, Moody's assigned ratings to new bank credit facilities that VeriFone will use to finance its pending acquisition of Lipman Electronic Engineering Ltd. The B1 corporate family rating reflects the favorable demand outlook in the point-of-sale payment solutions sector, VeriFone's strong market position post the Lipman acquisition in an industry that is dominated by a few key players worldwide, and VeriFone's track record in recent years in growing revenue, profitability, and cash flow (though the most recent quarter's inventory build up hampers free cash flow currently). Half of the transaction consideration is via issuance of equities, and the resultant capital structure is relatively conservative with Debt to EBITDA of 3.1x. These factors combined with the expectation that working capital will normalize and free cash flow will return to previous levels led Moody's to revise the outlook to stable from negative despite concerns over possible integration issues. The B1 ratings on VeriFone's new credit facilites are assgined based on Moody's LGD methodology, and they reflect the credit facilities' preponderance in the proforma capital structure. This rating is affirmed: * Corporate Family rating of B1; These ratings have been assigned: * US$40 million senior secured (first lien) revolving credit facility, due 2012, rated B1; * US$500 million senior secured (first lien) term loan facility, due July 2013, rated B1 These ratings will be withdrawn upon refinancing: * Ba3 rating on US$30 million Senior Secured First Priority Revolving Credit Facility due 2009 * Ba3 rating on US$190 million Senior Secured First Priority Term Loan B due 2011 Outlook revised to Stable from Negative. VeriFone Inc. is headquartered in Santa Clara, California, and is a global market leader in the development and sale of point- of-sale electronic payment systems. The company has operations in Argentina, Australia, Brazil, China, France, India, Malaysia, Poland, the United Kingdom, the United States, among others. Lipman's corporate headquarters and R&D facilities are located in Israel. The company is a provider of a variety of handheld, wireless and landline point-of-sale products, solutions and services. YPF SA: Has No Rival in San Juan Exploration Tender --------------------------------------------------- The San Juan province said in a statement that YPF SA was the sole bidder in the tender it launched for the exploration of seven hydrocarbons areas. Business News Americas relates that YPF presented a bid to explore the Tamberias area. Pan American Energy acquired bidding rules for the areas Rio Bermejo and Talacasto. The company, however, did not submit a technical bid, BNamericas notes. According to the report, the San Juan province will open the YPF's economic bid in two weeks. Antonio Soler -- the San Juan energy department resources director -- told BNamericas that geologists the state hired as well as private firms believe Tamberias is likely to contain oil rather than gas. YPF has to invest at least US$7 million in Tamberias over six years, Banericas says, citing Mr. Soler. BNamericas reports that San Juan also called for exploration bids for: -- Iglesia, -- Marayes, -- San Agustin, and -- Sierra del Tigre. * * * As reported in the Troubled Company Reporter-Latin America on June 9, 2006, Moody's Investors Service upgraded YPF Sociedad Anonima's rating under the revised foreign currency ceilings: -- Foreign Currency Corporate Family Rating: to B2 from B3; Outlook remains Negative. Moody's affirmed these five ratings: -- Issuer Rating (domestic currency): Baa2/NEG; -- Senior Unsecured Rating (foreign currency): Ba2/NEG; -- Senior Unsecured Rating MTN (foreign currency): Ba2/NEG; -- Senior Secured Shelf Rating (foreign currency): (P)Ba2/NEG; and -- Senior Unsecured Shelf Rating (foreign currency):(P)Ba2/NEG. * ARGENTINA: Studies Draft of Joint Venture Debt Payment ------------------------------------------------------- Julio de Vido -- Argentina's federal planning minister -- has analyzed with Ruben Ramirez Lezcano, the foreign minister of Paraguay, the draft to reevaluate the debt payment of the EBY joint venture, which administers the Yacyreta hydro dam, Business News Americas reports. The dam is located on the Argentine-Paraguayan border. BNamericas states that EBY's debt is about US$11 billion, mainly due to additional building funded by Argentina. Paraguay, says BNamericas, thinks that interest was calculated unjustly. BNamericas underscores that under the new accord, Paraguay would send Argentina 8,000GWH over 40 years to settle its share of debt. According to BNamericas, the draft will be sent to technicians involved with the project. Negotiation rounds on the project will be in October and November, BNamericas relates. * * * Fitch Ratings assigned these ratings on Argentina: Rating Rating Date ------ ----------- Country Ceiling B+ Aug. 1, 2006 Local Currency Long Term Issuer B Aug. 1, 2006 Short Term IDR B Dec. 14, 2005 Long Term IDR RD Dec. 14, 2005 ============= B A H A M A S ============= ULTRAPETROL (BAHAMAS): Selling 12.5 Million Shares at US$15 Each ---------------------------------------------------------------- Ultrapetrol (Bahamas) Ltd. will offer about 12.5 million shares at US$13 to US$15 each, the Associated Press reports. According to AP, Ultrapetrol aims to raise about US$175 million in its initial public offering. AP relates that Ultrapetrol filed its IPO (Initial Public Offering) on March 30, 200. However, the details of the offering were unavailable. The report underscores that the underwriters of the IPO are UBS Investment Bank and Bear Stearns. Ultrapetrol has plans to trade on the Nasdaq Stock Market, using the symbol "ULTR", AP states. About Ultrapetrol Ultrapetrol (Bahamas) Ltd. is the largest owner and operator of river barges and pushboats that transport dry bulk and liquid cargos through the Hidrovia region of South America, a network of waterways that connect Brazil, Bolivia, Uruguay, Paraguay and Argentina. It runs an offshore supply business, operates six oceangoing vessels and runs two cruise ships with a total capacity of 1,600 passengers. As reported in the Troubled Company Reporter on March 3, 2006, Standard & Poor's Ratings Services assigned a 'B' rating on Ultrapetrol (Bahamas) Ltd. S&P said the outlook is negative. ============= B E R M U D A ============= ALPHA CARGO: Court Appoints Official Receiver as Liquidator ----------------------------------------------------------- The Supreme Court of Bermuda ordered on Sept. 1, 2006, the winding-up of Alpha Cargo Limited's business. The court appointed the Official Receiver of Bermuda as the company's provisional liquidator. The petitioner's counsel may be contacted at: Conyers, Dill & Pearman Clarendon House, Church Street Hamilton HM11, Bermuda FOSTER WHEELER: Moody's Assigns Loss-Given-Default Rating --------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the homebuilding and construction-related sector, the rating agency confirmed its B1 Corporate Family Rating for Foster Wheeler LLC. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$250 million Gtd. Sr. Sec. Revolver Ba3 Ba1 LGD 1 5% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). GALVEX HOLDINGS: Judge Drain Converts Ch. 11 Case to Chapter 7 -------------------------------------------------------------- The Honorable Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York in Manhattan converted the chapter 11 case of Galvex Holdings Limited to a chapter 7 liquidation proceeding. As reported in the Troubled Company Reporter on Aug. 28, 2006, Galvex is "hopelessly" insolvent, has no assets remaining to reorganize or sell, and has no ability to file and confirm a plan of liquidation or pay any administrative expenses, Lori R. Fife, Esq., at at Weil, Gotshal & Manges, LLP, said. The Official Committee of Unsecured Creditors supported Galvex's request for the conversion of its bankruptcy case to a liquidation proceeding under Chapter 7 of the Bankruptcy Code. As reported in the Troubled Company Reporter on May 30, 2006, the Court authorized Galvex and its debtor-affiliates to sell substantially all of their assets to SPCP Group LLC. The purchase was effected in exchange for the discharge of the Debtors' US$192 million debt to SPCP. SPCP acquired the shares of Galvex's subsidiaries: -- Galvex Estonia; -- Galvex Intertrade; and -- Galvex Trade. In accordance with the sale order, the Court further ruled that the Chapter 11 cases of the three debtor-subsidiaries will be dismissed effective upon the closing of the sale. Headquartered in New York City, New York, Galvex Holdings Limited -- http://www.galvex.com/-- and its affiliates operate the largest independent galvanizing line in Europe. The Debtors have offices in New York, Tallinn, Bermuda, Finland, Ukraine, Germany and the United Kingdom. The company and four of its affiliates filed for chapter 11 protection on Jan. 17, 2006 (Bankr. S.D.N.Y. Lead Case No. 06-10082). Galvex Capital, LLC, is represented by David Neier, Esq., at Winston & Strawn LLP, and Gerard DiConza, Esq., at DiConza Law, P.C. Galvex Holdings Ltd. and the other debtor-affiliates are represented by David Neier, Esq., at Winston & Strawn LLP, and Lori R. Fife, Esq., Marcia L. Goldstein, Esq., and Shai Waisman, Esq., at Weil, Gotshal & Manges, LLP. John P. McNicholas, Esq., and Thomas R. Califano, Esq., at DLA Piper Rudnick Gray Cary US LLP, represent the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they estimated assets and debts of more than US$100 million. John S. Pereira is the Debtor's Chapter 7 Trustee. GALVEX HOLDINGS: US Trustee Names John Pereira as Ch. 7 Trustee --------------------------------------------------------------- Diana G. Adams, the U.S. Trustee for Region 2, appointed John S. Pereira as Galvex Holdings Limited's Chapter 7 Trustee on Sept. 5, 2006. On Aug. 30, 2006, the Honorable Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York converted the chapter 11 case of Galvex Holdings to a chapter 7 liquidation proceeding. Headquartered in New York City, New York, Galvex Holdings Limited -- http://www.galvex.com/-- and its affiliates operate the largest independent galvanizing line in Europe. The Debtors have offices in New York, Tallinn, Bermuda, Finland, Ukraine, Germany and the United Kingdom. The company and four of its affiliates filed for chapter 11 protection on Jan. 17, 2006 (Bankr. S.D.N.Y. Lead Case No. 06-10082). Galvex Capital, LLC, is represented by David Neier, Esq., at Winston & Strawn LLP, and Gerard DiConza, Esq., at DiConza Law, P.C. Galvex Holdings Ltd. and the other debtor-affiliates are represented by David Neier, Esq., at Winston & Strawn LLP, and Lori R. Fife, Esq., Marcia L. Goldstein, Esq., and Shai Waisman, Esq., at Weil, Gotshal & Manges, LLP. John P. McNicholas, Esq., and Thomas R. Califano, Esq., at DLA Piper Rudnick Gray Cary US LLP, represent the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they estimated assets and debts of more than US$100 million. INTELSAT (BERMUDA): Moody's Assigns Loss-Given-Default Rating ------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the Towers & Satellites sector, the rating agency confirmed its B2 Corporate Family Rating for Intelsat (Bermuda), Ltd. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Sr. 9.25% Notes Due 2016 B2 B2 LGD3 46% Sr. FRN Due 2013 Caa1 Caa1 LGD5 82% Sr. 11.25% Notes Due 2016 Caa1 Caa1 LGD5 82% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). INTELSAT CORP: Moody's Assigns Loss-Given-Default Rating -------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the Towers & Satellites sector, the rating agency confirmed its B2 Corporate Family Rating for Intelsat Corp. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Sr. Sec. R/C Due 2012 B1 Ba2 LGD1 8% Sr. Sec. TL A Due 2012 B1 Ba2 LGD1 8% Sr. Sec. TL B B1 Ba2 LGD1 8% Sr. Sec. 6.375% Notes Due 2008 B1 Ba2 LGD1 8% Sr. Sec. 6.875% Notes Due 2028 B1 Ba2 LGD1 8% Sr. 9.0% Notes Due 2014 B2 B2 LGD3 46% Sr. Unsec. TL B2 B2 LGD3 46% Sr. 9.0% Notes Due 2016 B2 B2 LGD3 46% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). INTELSAT LTD: Moody's Assigns Loss-Given-Default Rating ------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the Towers & Satellites sector, the rating agency confirmed its B2 Corporate Family Rating for Intelsat, Ltd. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Intelsat Ltd: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Sr. 5.25% Notes Due 2008 Caa2 Caa1 LGD6 93% Sr. 7.625% Notes Due 2012 Caa2 Caa1 LGD6 93% Sr. 6.50% Notes Due 2013 Caa2 Caa1 LGD6 93% Intelsat Intermediate Holding Company: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Sr. 9.25% Discount Notes Due 2015 Caa1 B3 LGD5 72% Intelsat Subsidiary Holding Company: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Sr. Sec. R/C Due 2012 B1 Ba2 LGD1 8% Sr. Sec. TL Due 2013 B1 Ba2 LGD1 8% Sr. FRN Due 2012 B2 B2 LGD3 46% Sr. 8.25% Notes Due 2013 B2 B2 LGD3 46% Sr. 8.625% Notes Due 2015 B2 B2 LGD3 46% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). LUNDIN SUDAN (BLOCK5B): Proofs of Claim Filing Is Until Oct. 12 --------------------------------------------------------------- Lundin Sudan (Block5B) Ltd.'s creditors are given until Oct. 12, 2006, to prove their claims to Jennifer Y. Fraser, the company's liquidator, or be excluded from receiving any distribution or payment. Creditors are required to send by the Oct. 12 deadline their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any, to Ms. Fraser. A final general meeting will be held at the liquidators' place of business on Oct. 31, 2006, at 9:30 a.m. Lundin Sudan's shareholders will determine during the meeting, through a resolution, the manner in which the books, accounts and documents of the company and of the liquidator will be disposed. Lundin Sudan's shareholders agreed on Sept. 22, 2006, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Jennifer Y. Fraser Cannon's Court 22 Victoria Street Hamilton, Bermuda REFCO GROUP: Court Okays US$705MM Payment to Secured Creditors -------------------------------------------------------------- Refco Group Ltd., LLC, and its affiliated debtors received Court approval to pay its secured creditors, including a group of banks led by Banc of America Securities, LLC, as agent, approximately US$705 million to settle all secured claims against Refco. "We are very pleased with the Court's decision," said Refco's Chief Restructuring Officer David Pauker, who testified at the hearing. "The approval of this settlement was a necessary step toward effecting the global settlement, obtaining approval of the Debtor's bankruptcy plan and making distributions to unsecured creditors." Under the terms of the settlement approved by the U.S. Bankruptcy Court for the Southern District of New York, Refco's secured lenders will receive payment in full of principal, plus interest at the contract rate, through the payment date, but have agreed to forego payment of default interest. In addition, the Debtors, lenders and certain third parties will exchange mutual releases. In papers filed with the Bankruptcy Court, Refco said that the agreement with the secured creditors was in the best interest of the Refco estates and their creditors because, among other things, it limits "potentially substantial secured claims for additional interest, fees and indemnities." About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). (Refco Bankruptcy News, Issue No. 41; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) REFCO: Three Parties Object to Accord with Prepetition Lenders -------------------------------------------------------------- Refco Inc., and its debtor-affiliates and Marc Kirschner, the Chapter 11 trustee for Refco Capital Markets, Ltd., asked the U.S. Bankruptcy Court for the Southern District of New York to approve a settlement agreement with Bank of America, N.A., and a syndicate of lenders under an Aug. 5, 2004, credit agreement. Objections (1) FXA Customers Some customers of Refco F/X Associates, LLC, object to the use of their funds deposited with FXA to pay the Secured Lenders. Specifically, the Ad Hoc Refco F/X Customer Committee; Forex Capital Markets, LLC; Forex Trading, LLC; and New York Financial, LLC, complain that the Debtors' request is silent as to whether or how the Motion would affect or treat their funds, which are being held by FXA or Refco Capital Markets, Ltd., for their benefit. Representing the FXA Customer Committee, Todd E. Duffy, Esq., at Duffy & Amedeo LLP, in New York, contends that none of the Debtors hold any proprietary or ownership interest in the financial accounts and funds of the FXA customers. As a result, the Debtors could not and did not grant a lien on or security interest in and to the funds or accounts to the Lenders as collateral for the obligations owed to the Lenders. The FXA customers are parties to separate agreements with FXA, pursuant to which the customers established trading accounts with FXA and into which cash and other property were delivered and maintained by FXA or RCM on the customers' behalf. The FXA Customer Committee, on its members' behalf, intends to file an adversary proceeding to (i) determine that the Financial Assets held and maintained by FXA or RCM are not the Debtors' property, but rather are property of its members, and (ii) require FXA or RCM to return and transfer the Financial Assets to its members based on several applicable legal theories, including the imposition of a constructive trust. Pending the filing of the adversary proceeding, the Debtors remain obligated to ensure that the customer funds are not wrongfully dissipated, Mr. Duffy asserts. (2) Ad Hoc Equity Committee The Ad Hoc Committee of Equity Security Holders of Refco, Inc., notes that approval of the Lender Settlement would predetermine the outcome of the Creditors Committees' request to allocate US$300,000,000 of the proceeds from the BAWAG Settlement. The creditors who support the Chapter 11 Plan will likely argue that the BAWAG Allocation Motion should be approved because approval is necessary to effectuate the Lender Settlement. That is not a legitimate reason to approve the BAWAG Allocation Motion, Paul N. Silverstein, Esq., at Andrews Kurth LLP, in New York, contends. The Ad Hoc Equity Committee intends to object to the BAWAG Allocation Motion on numerous grounds, including that: (i) Refco Group Ltd., LLC, is not entitled to US$300,000,000 of the BAWAG settlement; and (ii) the Court must allocate all the BAWAG proceeds at one time, not in a piecemeal fashion. The objections should not be litigated in the context of the Lender Settlement, Mr. Silverstein tells Judge Drain. The BAWAG Allocation Motion is scheduled for hearing first week of October, a week after the hearing on the Lender Settlement. Objections to the BAWAG Allocation Motion are not due until Oct. 2. The Ad Hoc Equity Committee also believes that the Lender Settlement is unnecessary because the Debtors could achieve the same or better result by seeking authority to use estate property to pay the Banks in full. Mr. Silverstein explains that consideration to be received by the Debtors under the Lender Settlement appears largely illusory. Mr. Silverstein notes that the claim for default interest -- 2% per annum or about US$13,000,000 -- is a relatively small amount in the context of the Debtors' cases, and less than the amount of fees authorized to be paid, without Court review, under the Lender Settlement. The Lender Settlement does not require the Banks to release their disputed claims against Refco, Inc., which is neither a party to, nor guarantor of, the Credit Agreement. The Banks should be required to release the proofs of claim they filed against all of the Debtors, Mr. Silverstein maintains. The Ad Hoc Equity Committee consists of JMB Capital Partners, LP; Lonestar Capital Management, LLC; Mason Capital Management; Smith Management LLC; and Triage Management LLC. (3) Securities Plaintiffs RH Capital Associates, LLC, and Pacific Investment Management Company, LLC, the lead plaintiffs in In re Refco Inc. Securities Litigation, Case No. 05-Civ.-8626 (GEL), seek a clarification that the release of the Lenders under the Settlement is not intended to impact, in any way, the Lead Plaintiffs' claims for violations of federal securities laws against Banc of America Securities, LLC; Credit Suisse First Boston; and Deutsche Bank Securities, Inc. The Proposed Order is broad and ambiguous and may be interpreted to provide a more all-encompassing release to the Lenders and others than intended by the parties to the Settlement, Michael S. Etkin, Esq., at Lowenstein Sandler PC, in New York, explains. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). (Refco Bankruptcy News, Issue No. 42; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) REFCO INC: Clarifies Trigger Date for Settlement with Lenders ------------------------------------------------------------- Refco Inc., and its debtor-affiliates and Marc Kirschner, the Chapter 11 trustee for Refco Capital Markets, Ltd., asked the U.S. Bankruptcy Court for the Southern District of New York to approve a settlement agreement with Bank of America, N.A., and a syndicate of lenders under an Aug. 5, 2004, credit agreement. Some customers of Refco F/X Associates, LLC, the Ad Hoc Committee of Equity Security Holders of Refco, Inc., and RH Capital Associates, LLC, and Pacific Investment Management Company, LLC, the lead plaintiffs in In re Refco Inc. Securities Litigation, Case No. 05-Civ.-8626 (GEL), objected to the motion. On Sept. 20, 2006, the Refco Debtors filed an Amended Proposed Order with the Court. The Amended Order clarifies that the Trigger Date in the Lender Settlement will occur at the earlier of: (i) the Payment Date; and (ii) the date -- Other Trigger Date -- on which Bank of America, N.A., as administrative agent, notifies Refco Group, Inc., the Chapter 11 trustee for RCM, and the Creditors Committees in writing that a Trigger Date has occurred. Whether or not a Trigger Date has occurred, however, the Debtors party to the Loan Documents will use their reasonable best efforts to raise the funds required to pay, and to pay the amounts required to be paid as promptly as possible. If the Other Trigger Date will have occurred, and, at the time of the Other Trigger Date, the Debtors party to the Loan Documents do not have sufficient funds to pay the amounts in a lump sum, the Debtors will pay the amounts as soon as possible after the Other Trigger Date from whatever funds are available to them, provided that: (i) any partial payments will be made in increments of no less than US$1,000,000; and (ii) all amounts required to be paid will have been irrevocably paid in full and in cash not later than the Outside Payment Date. The Amended Order also clarifies that the Lender Releases will not include any person who is or was a director, officer, employee, shareholder, affiliate, professional or advisor of a Debtor or any affiliate of a Debtor, in that capacity. The Amended Order also notes that payments from the BAWAG Proceeds will reduce the Secured Claims against the Lenders' Collateral. If any Debtor, BAWAG, any other party-in-interest, or their successors, assigns or representatives assert a claim to or in respect of the BAWAG Proceeds allocated for the Lender Settlement, the payments will be deemed to have been made from the Collateral, and the claim will be asserted solely against the Collateral unencumbered by the payments, and not against BofA or any Lender. Refco, LLC; its Chapter 7 trustee, Albert Togut; and Fimex International, Ltd., have been removed from the list of participating parties. A full-text copy of the Amended Order is available at no charge at http://ResearchArchives.com/t/s?124d A revised list of participating parties is available at no charge at http://ResearchArchives.com/t/s?124e About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. Refco LLC, an affiliate, filed for chapter 7 protection on Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a regulated commodity futures company that has businesses in the United States, London, Asia and Canada. Refco, LLC, filed for bankruptcy protection in order to consummate the sale of substantially all of its assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc. Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal LLP. On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda. Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through 06-11262). (Refco Bankruptcy News, Issue No. 42; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) WARNER CHILCOTT: Prices Initial Public Offering at US$15 a Share ---------------------------------------------------------------- Warner Chilcott Ltd. disclosed the pricing of its initial public offering of 70,600,000 shares of common stock, at a price of US$15 per share. The shares were listed on the Nasdaq Global Select Market and traded under the symbol "WCRX" beginning Sept. 21, 2006. The Company will sell the shares. The underwriters have an option to purchase up to an additional 7,060,000 shares from the selling stockholders at the initial public offering price less the underwriting discount. The Company will not receive any proceeds from a sale of the shares by the selling stockholders if the underwriters exercise their option to purchase additional shares. Goldman, Sachs & Co., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities Inc. and Morgan Stanley have acted as joint book-running managers for the offering. A copy of the final prospectus relating to these securities may be obtained, when available, from: Goldman, Sachs & Co. Attention: Prospectus Department 85 Broad Street, New York, NY 10004 Fax: (212) 902-9316 E-mail: prospectus-ny@ny.email.gs.com Headquartered in Hamilton, Bermuda, Warner Chilcott Ltd. is the holding company for a host of pharmaceutical makers. Women's health care products, including hormone therapies (femhrt and Estrace Cream) and contraceptives (Estrostep, Loestrin, and OvCon), are the company's largest segment. Other products include dermatology treatments for acne (Doryx) and psoriasis (Dovonex and Taclonex). US subsidiary Warner Chilcott, Inc. makes prescription drugs for dermatology and women's health; other subsidiaries provide services in data management systems, pharmaceutical development, manufacturing, and chemical development. * * * Standard & Poor's Ratings Services raised on Sept. 27, 2006, its ratings on Warner Chilcott Corp. The corporate credit rating was raised to 'B+' from 'B'. At the same time, the ratings were removed from CreditWatch, where they were placed with positive implications on June 13, 2006, following the company's announcement that it was planning an IPO, with the bulk of proceeds to be used for debt reduction. The rating outlook is stable. WARNER CHILCOTT: FTC Files a New Motion in Ongoing Ovcon Lit. ------------------------------------------------------------- Warner Chilcott Ltd. is currently party to litigation with the U.S. Federal Trade Commission and 34 states plus the District of Columbia relating to its agreements with Barr for the supply of Ovcon 35. At issue in the litigation are the exclusivity provisions in these agreements, which provide that Barr exclusively supply Ovcon 35 to the Company, and the alleged anti- competitive effects of these provisions. Barr is the Company's sole source of supply for Ovcon 35. In August 2006, the Company completed manufacturing validation for a chewable version of Ovcon 35, Ovcon Chewable. In September 2006, the Company launched Ovcon Chewable and stopped shipping Ovcon 35 to consumers as it began the process of transitioning from Ovcon 35 to Ovcon Chewable. On Sept. 25, 2006, the FTC filed a new motion in the ongoing litigation alleging that the Company's transition from Ovcon 35 to Ovcon Chewable would impede the market for a generic version of Ovcon 35. The FTC's motion seeks a preliminary injunction that, if granted, would require the Company to continue to supply Ovcon 35 on a basis comparable to Ovcon Chewable, including with respect to pricing, sampling and availability, in order to enable the possible entrance of a generic version of Ovcon 35 into the marketplace. The FTC's motion does not seek to restrain the Company's continuing roll out of Ovcon Chewable. The Company believes the new relief requested by the FTC is without merit and intends to contest the FTC's motion vigorously. As disclosed in the Company's Prospectus dated Sept. 20, 2006, as a result of the launch of Ovcon Chewable and the Company's eventual phase-out of Ovcon 35, it had expected to engage in discussions with Barr about the effect of the launch on their agreements. On September 25, 2006, following a review by the Company of its agreements with Barr relating to Ovcon 35, the Company signed a waiver that terminated the exclusivity provisions contained therein. The remaining provisions of the Barr agreements remain unchanged. Since the principal equitable relief sought in the initial Ovcon 35 FTC litigation referred to above was the termination of these exclusivity provisions, the Company intends to promptly file a motion to dismiss this litigation. Headquartered in Hamilton, Bermuda, Warner Chilcott Ltd. -- http://www.warnerchilcott.com/-- is the holding company for a host of pharmaceutical makers. Women's health care products, including hormone therapies (femhrt and Estrace Cream) and contraceptives (Estrostep, Loestrin, and OvCon), are the company's largest segment. Other products include dermatology treatments for acne (Doryx) and psoriasis (Dovonex and Taclonex). US subsidiary Warner Chilcott, Inc. makes prescription drugs for dermatology and women's health; other subsidiaries provide services in data management systems, pharmaceutical development, manufacturing, and chemical development. * * * Standard & Poor's Ratings Services raised on Sept. 27, 2006, its ratings on Warner Chilcott Corp. The corporate credit rating was raised to 'B+' from 'B'. At the same time, the ratings were removed from CreditWatch, where they were placed with positive implications on June 13, 2006, following the company's announcement that it was planning an IPO, with the bulk of proceeds to be used for debt reduction. The rating outlook is stable. WARNER CHILCOTT: Moody's Assigns Loss-Given-Default Rating ---------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the pharmaceutical sector, the rating agency confirmed its B2 Corporate Family Rating for Warner Chilcott Company, Inc. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Warner Chilcott Company, Inc: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$870 million Sr. Sec. Term Loan B2 B1 LGD3 36% US$239 million Delayed Draw Secured Term Loan B2 B1 LGD3 36% US$150 million Sr. Sec. Revolving Credit Facility B2 B1 LGD3 36% Warner Chilcott Holdings Company III, Limited: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$162 million Sr. Sec. Term Loan B2 B1 LGD3 36% Warner Chilcott Corporation: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$351 million Sr. Sec. Term Loan B2 B1 LGD3 36% US$600 million Sr. Sub. Notes Caa1 Caa1 LGD5 89% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). WARNER CHILCOTT: S&P Upgrades Corp. Credit Rating to B+ from B -------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on Warner Chilcott Corp. The corporate credit rating was raised to 'B+' from 'B'. At the same time, the ratings were removed from CreditWatch, where they were placed with positive implications on June 13, 2006, following the company's announcement that it was planning an IPO, with the bulk of proceeds to be used for debt reduction. The rating outlook is stable. "The ratings upgrade reflects the completion of the IPO, in which the specialty pharmaceutical company raised more than US$1 billion and plans to use the majority of the proceeds to reduce debt by US$633 million," said Standard & Poor's credit analyst Arthur Wong. Nevertheless, the company will remain highly leveraged, with debt to EBITDA at roughly 4.5x, and we believe that the company will remain financially aggressive. These risk factors are partially offset by the company's diverse product portfolio and solid positions in the women's health and dermatology categories. Rockaway, N.J.-based Warner has built -- largely through acquisitions -- solid franchises in both the women's health and dermatology markets, and the company's portfolio is relatively diversified. Women's health, consisting of oral contraceptives and hormone replacement therapy, accounts for more than 50% of Warner's annual sales. The company's Ovcon, Estrostep, and Loestrin 24 brands compete in the branded oral contraceptives market. Warner recently cancelled an agreement with generic drug maker Barr Pharmaceuticals, which would have allowed Barr to sell a generic version of Ovcon 35. The drug generated US$95 million in high-margin sales for Warner for the 12 months ended July 31, 2006. Warner hopes to largely offset lost sales with a new chewable version of Ovcon 35, as well as continued sales of the original product. The company also recently launched Loestrin 24, low estrogen oral contraceptive that produces a shorter, lighter menstrual flow. Warner's EBITDA operating margin is high, at more than 50%, and many of the company's products boast gross margins of more than 90%. Still, since its buyout in early 2005, the company has been highly leveraged. Annualized debt to EBITDA, pro forma for the IPO-related reduction of debt and the Dovonex acquisition, will be greater than 4.5x, and funds from operations to total debt will be roughly 11%. ============= B O L I V I A ============= BANCO MERCANTIL: Posts US$2.88 Mil. First Half 2006 Net Income -------------------------------------------------------------- Figures from Sbef, the financial system regulator of Boliva, indicated that Banco Mercantil SA's net profits increased 39.1% to US$2.88 million in the first half of 2006, from US$2.07 million in the same period in 2005, Business News Americas reports. According to BNamericas, Banco Mercantil's return on equity was 9.3% in the first half of 2006, compared with an industry average of 10.2%. Return on assets was 0.9%, slightly lesser than the 1.0% industry average. BNamericas relates that Banco Mercantil's performing loans increased 7% to US$333 million in June 2006, compared with the same month in 2005. Its deposits increased 9% to US$455 million. The report says that assets of Banco Mercantil grew 11% to US$589 million during the 12 months ending June 2006, compared with the same period of last year. Meanwhile, its liabilities increased 12% to US$530 million. BNamericas underscores that Banco Mercantil had a 15% asset market share in the first half of 2006. Banco Mercantil acquired in April a 96.3% stake in Banco Santa Cruz from Spain's Santander for US$25.8 million, BNamericas states. The acquisition will bring Banco Mercantil's market share to 26% in terms of assets, making the firm the largest bank in Bolivia. An official of Banco Mercantil told BNamericas that the firm expects the merger by December. * * * Banco Mercantil's long-term bank deposits carry Moody's B3 rating. The rating was placed on Sept. 8, 2004, with a stable outlook. Standard & Poor's assigned the bank BB long-term local and foreign issuer credit ratings and B short-term local and foreign issuer credit ratings. The ratings were placed on June 4, 1999, with a stable outlook. On Sept. 23, 2004, Fitch assigned the bank single B debt and default ratings with a negative outlook. =========== B R A Z I L =========== AES CORP: S&P Says Unit's Offering Won't Affect Credit Rating ------------------------------------------------------------- Standard & Poor's Ratings Services noted that the announcement of a secondary offering by a wholly owned subsidiary of Brasiliana Energia S.A. is a favorable credit development for Brasiliana's joint owner, The AES Corp. (BB-/Stable/--), but will not affect the ratings or outlook on AES. Brasiliana will use the expected proceeds of nearly US$530 million to US$600 million to repay about US$595 million of debt that has covenants restricting dividend distributions. Elimination of this restrictive debt frees up future cash flow for other AES growth projects. Management estimates incremental cash flow of about US$50 million for AES from Brasiliana's subsidiary distributions. Following completion of the non- voting preferred share transaction, AES will continue to maintain its controlling interest in Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A. (the regulated utility offering the shares) and will have an economic interest of about 18% in Eletropaulo. ALERIS INTERNATIONAL: Moody's Assigns Loss-Given-Default Rating --------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the Metals & Mining sector, the rating agency confirmed its B1 Corporate Family Rating for Aleris International. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$400 million Gtd. Sr. Secured Term Loan Ba3 Ba3 LGD3 32% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). AMERICAN SAFETY: Moody's Assigns Loss-Given-Default Ratings ----------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the US Consumer Products, Beverage, Toy, Natural Product Processors, Packaged Food Processors and Agricultural Cooperative sectors, the rating agency confirmed its B2 Corporate Family Rating for American Safety Razor Company. Additionally, Moody's revised and held its probability-of- default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$35 million First Lien Revolving Credit B2 B1 LGD3 38% US$225 million First Lien Term Loan B2 B1 LGD3 38% US$175 million Second Lien Term Loan Caa1 B3 LGD4 58% Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Based in Cedar Knolls, New Jersey, American Safety Razor Company -- http://www.asrco.com-- is a major designer, manufacturer and marketer of brand name and private label consumer and industrial products. Its principal products include wet shaving blades and razors and medical blades. The company has global manufacturing and sales locations including those in the United Kingdom, Japan, Singapore, Australia, and Brazil. BANCO NACIONAL: Provides US$10M Loan to Fund Vulcabras's Exports ---------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social aka BNDES approved a financing to Vulcabras do Nordeste S.A., under the pre-Shipment Line for the Footwear Sector. For US$10 million, the credit will be used to support new exports of footwear, spats and similar products. Vulcabras do Nordeste has about 8,900 direct employees. The company belongs to the same holders of the Grendene group, the leading private employer in that State, with about 20,000 employees and one of the largest footwear manufacturers of Brazil, with 17,300 sales offices in the country and 19,500 abroad, exporting its products to about 60 countries. Vulcabras do Nordeste manufactures several models of high performance tennis shoes, warm clothing, blouses, undershirts and trunks for the performance of sports and for leisure, under a license of the Reebok international brand, with exclusiveness for operation in Mercosur countries. It also produces several types of rubber, PVC and EVA professional boots. Bvulcabras do Nordeste, which accounts for the entire footwear production and trading of that traditional brand, is the main company of the group and the only exporter. Its products are traded in Brazil and the foreign market, having Argentina and Uruguay as principal destinations. In August 2003, Vulcabras undertook control of VDA Calzados y Articulos Deportivos S.A., which began concentrating its trading and distribution operations in Argentina. * * * As reported in the Troubled Company Reporter on March 3, 2006, Standard & Poor's Ratings Services raised its foreign currency counterparty credit rating on Banco Nacional de Desenvolvimento Economico e Social S.A. aka BNDES to 'BB' with a stable outlook from 'BB-' with a positive outlook. The company's local currency credit rating was also shifted to 'BB+' with a stable outlook from 'BB' with a positive outlook. BANCO NACIONAL: Relaxes Funding Conditions for Power Projects ------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social aka BNDES said in a statement that it has eased financing conditions for power transmission and generation projects. Wagner Bittencourt -- BNDES infrastructure department head -- told Business News Americas that the transmission and generation projects will be subject to the bank's long-term TJLP (long-term interest rate). BNamericas relates that Mr. Bittencourt said the change could result in a 1.2% decrease of funding costs. According to BNamericas, the structure is a change from the previous payment plan. Projects used to pay up to 80% of the loan according to TJLP rates and the balance according to the yield on Brazilian treasury notes known as NTN-B, which are corrected for inflation by the IPC-A inflation index. TJLP was 6.85% annually. NTN-B yields up to 10% per year, including the 4-5% IPC-A inflation index, BNamericas reports. * * * As reported in the Troubled Company Reporter on March 3, 2006, Standard & Poor's Ratings Services raised its foreign currency counterparty credit rating on Banco Nacional de Desenvolvimento Economico e Social S.A. aka BNDES to 'BB' with a stable outlook from 'BB-' with a positive outlook. The company's local currency credit rating was also shifted to 'BB+' with a stable outlook from 'BB' with a positive outlook. BRASKEM SA: Obtains US$184.6MM from Tender Offer of 12.50% Notes ---------------------------------------------------------------- Braskem S.A. disclosed the results of its cash tender offer for any and all of its outstanding US$275,000,000 principal amount of 12.50% Notes due 2008 (CUSIP Nos.: 10553H AD 4 and 10553J AD 0; ISIN Nos. US10553HAD44 and US10553JAD00; Common Code Nos. 018005328 and 018005484). The offer expired at 5:00 p.m., New York City time, on Wednesday, September 27, 2006. Braskem has been advised by the depositary that, as of the Expiration Date of the offer, of the US$275,000,000 in aggregate principal amount of Notes outstanding, US$184,587,000 had been validly tendered and not validly withdrawn pursuant to the offer. Braskem has accepted for purchase all Notes validly tendered and not validly withdrawn pursuant to the offer. On the settlement date, which is expected to be October 2, 2006, Braskem will pay noteholders who validly tendered and did not withdraw their Notes prior to or at 5:00 p.m., New York City time, September 18, 2006, the total consideration of US$1,145.48 per US$1,000 principal amount of Notes, which includes an early tender premium in the amount of US$20 per US$1,000 principal amount of Notes, plus accrued and unpaid interest from the last interest payment date to, but excluding, the settlement date (which is expected to be approximately US$51.04 per US$1,000 principal amount of Notes), for these Notes. Braskem paid noteholders who validly tendered their Notes after 5:00 p.m., New York City time, on Monday, September 18, 2006, and prior to or at 5:00 p.m. New York City time, on September 27, 2006, the tender offer consideration of US$1,125.48 per US$1,000 principal amount of Notes, which does not include the early tender premium, plus accrued and unpaid interest from the last interest payment date to, but excluding, the settlement date (which is expected to be approximately US$51.04 per US$1,000 principal amount of Notes), for these Notes. Braskem retained ABN AMRO Bank N.V., London Branch, and Citigroup Global Markets Inc. to act as Dealer Managers for the tender offer, JPMorgan Chase Bank, N.A. to act as the depositary for the tender offer, and D.F. King & Co., Inc. to act as information agent for the tender offer. Braskem -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin American, and is among the three largest Brazilian-owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. * * * Standard & Poor's Ratings Services assigned on Sept. 22, 2006, its 'BB' senior unsecured debt rating to the proposed up to US$275 million bonds due Jan. 2017 to be issued by Brazil-based petrochemical company Braskem S.A. (BB/Stable/--). The bonds will rank pari passu with the company's other senior unsecured notes. Fitch assigned on Sept. 20, 2006, a rating of 'BB+' to Braskem S.A.'s proposed issuance of US$275 million senior unsecured notes due to 2017. The notes are being offered under Rule 144A Regulation S. The proceeds of the offering are expected to be used to prepay existing debts and extend debt maturities. Fitch also maintains foreign currency and local currency Issuer Default Ratings of 'BB+' and a national scale rating of 'AA(bra)' for Braskem. Fitch said the Rating Outlook is Stable. COMPANHIA SIDERURGICA: Names Juarez Avelar as New Exec. Director ---------------------------------------------------------------- Companhia Siderurgica Nacional aka CSN said in a filing with Comissao de Valores Mobiliarios, the securities regulator of Brazil, that it has appointed Juarez Saliba de Avelar as its new executive director. Business News Americas relates that Mr. de Avelar will serve as executive director in CSN for two years. He will be focusing on the minerals segment. Companhia Siderurgica Nacional aka CSN produces, sells, exports and distributes steel products, like hot-dip galvanized sheets, tin mill products and tinplate. The company also runs its own iron ore, manganese, limestone and dolomite mines and has strategic investments in railroad companies and power supply projects. * * * Standard & Poor's Ratings Services affirmed on Aug. 4, 2006, its 'BB' long-term corporate credit rating on Brazil-based steel maker Companhia Siderurgica Nacional aka CSN after the announcement of its association with U.S.-based steel maker Wheeling-Pittsburgh Corp. in the U.S. The outlook is stable. Fitch Ratings viewed the proposed merger of Companhia Siderurgica Nacional's or CSN North American operations with those of Wheeling-Pittsburgh Corp.or WPSC to be neutral to CSN's credit quality. Fitch's ratings of CSN include: -- Foreign currency Issuer Default Rating: 'BB+'; -- Local currency IDR: 'BBB-'; -- National scale rating: 'AA (bra)'; -- Senior unsecured notes 'BB+'; and -- Brazilian Real denominated debentures: 'AA (bra)'. GERDAU AMERISTEEL: Moody's Assigns Loss-Given-Default Rating ------------------------------------------------------------ In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the Metals & Mining sector, the rating agency confirmed its Ba2 Corporate Family Rating for Gerdau Ameristeel Corp. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$405 million 10.375% Gtd. Sr. Unsecured Global Notes Ba2 Ba3 LGD4 61% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). NOVELIS INC: Moody's Assigns Loss-Given-Default Rating ------------------------------------------------------ In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the Metals & Mining sector, the rating agency confirmed its B1 Corporate Family Rating for Novelis Inc. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Novelis Inc: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$500 million Gtd. Sr. Secured Revolving Credit Facility Ba3 Ba2 LGD2 24% US$312 million Gtd. Sr. Secured Term Loan B Ba3 Ba2 LGD2 24% US$1.4 billion 7.25% Gtd. Sr. Unsecured Notes due 2015 B2 B3 LGD5 76% Novelis Corp. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$543 million Gtd. Sr. Secured Term Loan B Ba3 Ba2 LGD2 24% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). PETROLEO BRASILEIRO: Closes Issuance of 35B Yen-Dominated Bonds --------------------------------------------------------------- Petroleo Brasileiro S.A. aka Petrobras disclosed that through its wholly owned subsidiary, Petrobras International Finance Company, it concluded in the Japanese capital market a private placement of securities or Shibosai for a total of JPY35 billion (approximately US$300 million). The Company's principal objectives were to: -- reinitiate a relationship with the Japanese market, -- access a new investor base and -- achieve a competitive cost in the light of its investment grade rating granted by Moody's Investor Services. This funding carries a semi-annual coupon of 2.15% p.a., a ten- year maturity (bullet repayment) and the partial guarantee of the JBIC (Japan Bank for International Cooperation). The Company intends to use the financial resources raised from this issue to finance, either partially or in full, the construction of lines interconnecting the P-51, P-52 and P-53 production platforms to the PRA-1 autonomous repumping unit. The operation was led by Mitsubishi UFJ Securities and Nomura Securities Co. Ltd. and marks Petrobras' return to the Japanese capital markets, from which the Company had been absent since 1997. The securities were sold to various Japanese investors including insurance companies and financial institutions. The support of the JBIC guarantee provided additional support in accessing such investors in the process of reopening the market. 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 Brazil. * * * 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. TELE NORTE: Nonvoting Shareholders Balk at Reorganization Plan -------------------------------------------------------------- Some of Tele Norte Leste Participacoes SA's investors holding nonvoting shares said in a filing with the U.S. Securities and Exchange Commission that they won't accept the company's restructuring plan, The Wall Street Journal reports. The plan calls for a major share restructuring by: -- consolidating the stocks of Telemar units into one class of voting shares and -- holding a secondary offering. Telemar plans to list on the New Market or Novo Mercado of the Sao Paulo Stock Exchange. To meet Novo Mercado's criteria, a company must have only common shares and at least 25% must be available on the public market. This move is aimed at removing the controlling bloc by some investors, which currently hold the group's voting shares, and increasing the group's corporate governance and transparency. Hence, no lone group will run the company. Genesis Investment Partners LLP, a London-based manager of US$16 billion in emerging-market equities, which owns 6.25% of nonvoting shares, joined California-based Brandes Investment Partners in voicing their opposition to the plan. The two companies together hold 15% of Telemar's nonvoting shares. The Journal says that Brandes and Genesis are talking to a growing group of asset managers, including Franklin Resources Inc.'s Franklin Templeton Investments and Capital Research & Management, about a united front against the plan. Comisao de Valeros Mobiliarios, the securities regulator of Brazil, recently issued a ruling that Tele Norte's shareholders, except owners of preferred stock, are prohibited from voting on proposals to reorganize companies because of conflicts of interest. The ruling is bad news for minority shareholders. According to the Journal, minority shareholders filed a number of regulatory complaints hoping to delay the process. The Journal enumerates the three complaints filed over the past few weeks: First, Polo Capital, a Rio de Janeiro hedge-fund firm with US$500 million in assets, complained to the securities regulator that Telemar refuses to send it the company's shareholder list, an obligation under the law. Second, Mellon Global Investments Brasil, a unit of Mellon Financial Corp., asked the security commission to order Telemar to issue a new statement to investors encompassing all changes that have been made to the plan. Third, Argucia Capital, an asset manager based in Rio de Janeiro, asks that the commission provide safeguards to minority investors in order to prevent abuse on the part of controlling shareholders. Argucia wants the commission to prevent controlling shareholders from voting with borrowed shares or through third parties. It also wants controlling shareholders and the company's management to be prevented from soliciting votes for the plan. Telemar provides telecommunication services in South America. It offers local, intra-regional long distance, and data transmission services in 16 Brazilian states, which covers approximately 64% of the country. Mobile services are provided through its wireless unit Oi, and it has acquired data transmission services provider Pegasus. * * * As reported on Aug. 21, 2006, Fitch Ratings upgraded Tele Norte Leste Participacoes S.A.'s foreign currency issuer default rating to 'BB+' from 'BB'. * BRAZIL: Google Won't Turn Over Orkut User Data to Authorities --------------------------------------------------------------- Google Inc. missed a Sept. 28 deadline to turn over the company's information on users of the social networking service Orkut to Brazilian authories, the Associated Press reports. On Wednesday, Google said in a release that it would instead file a brief in court explaining why it didn't comply. Brazil's Public Attorney's office had filed a suit demanding Google to provide information about some of the users of Orkut in the agency's effort to stop child pornography in the country. Federal Judge Jose Marcos Lunardelli issued an order on Aug. 22 telling Google's local affiliate to release the information by Sept. 28 or get fined for US$23,000 daily. As previously reported, Google explained that information regarding users of their sites are stored in their databases located in the United States. As such, request for information should be made in the U.S. "We have and will continue to provide Brazilian authorities with information on users who abuse the Orkut service, if their requests are reasonable and follow an appropriate legal process," Debbie Frost, Google's spokeswoman, was quoted by AP as saying. "It is and always has been our intention to be as cooperative in the investigation and prosecution of crimes as we possibly can, while being careful to balance the interests of our users and the request from the authorities." The Brazilian judge, however, dismissed Google's argument saying where the data are stored is irrelevant because the "messages being investigated were published by Brazilians, through Internet connection in national territory," AP relates. Meanwhile, Google said it took eight Orkut communities off-line at the request of the Brazilian government, AP says. About Orkut Named after Turkish software engineer Orkut Buyukkokten, Orkut is an invitation-only service run by Google that lets members discuss a wide range of subjects in Internet forums or communities. The service is more popular in Brazil than in any other country, AP says. According to the Financial Times, 65% of the site's 20 million registered users are from Brazi. * * * As reported on Sept. 4, 2006, Brazil's foreign currency country ceiling was upgraded to Ba1 from Ba2 while the government's foreign- and local-currency bond ratings were changed to Ba2 from Ba3. =========================== C A Y M A N I S L A N D S =========================== CARLYLE HIGH: Creditors Must Present Proofs of Claim by Oct. 19 --------------------------------------------------------------- Carlyle High Yield Partners III, Ltd.'s creditors are required to submit proofs of claim by Oct. 19, 2006, to the company's liquidators: Chris Watler Emile Small Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands Creditors who are not able to comply with the Oct. 19 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Carlyle High's shareholders agreed on Aug. 28, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. FIGARO LIMITED: Last Day to File Proofs of Claim Is on Oct. 19 -------------------------------------------------------------- Figaro Limited's creditors are required to submit proofs of claim by Oct. 19, 2006, to the company's liquidators: Emile Small Karen Ellerbe Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands Creditors who are not able to comply with the Oct. 19 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Figaro Limited's shareholders agreed on Sept. 6, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. HENDERSON UK: Shareholders Gather for a Final Meeting on Oct. 19 ---------------------------------------------------------------- Henderson UK Fundamental Long Short Fund Limited's final shareholders meeting will be at 11:00 a.m. on Oct. 19, 2006, at the company's registered office. These agendas 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: Lawrence Edwards Attention: Jyoti Choi P.O. Box 258, George Town Grand Cayman, Cayman Islands Tel: (345) 914 8657 Fax: (345) 949 4590 LIZMAR INVESTMENT: Proofs of Claim Filing Is Until Oct. 19 ---------------------------------------------------------- Lizmar Investment Ltd.'s creditors are required to submit proofs of claim by Oct. 19, 2006, to the company's liquidators: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman, Cayman Islands Tel: (345) 949 8666 Fax: (345) 949 7904 Creditors who are not able to comply with the Oct. 19 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Lizmar Investment's shareholders agreed on Sept. 7, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. MODENA LIMITED: Creditors Must File Proofs of Claim by Oct. 19 -------------------------------------------------------------- Modena Limited's creditors are required to submit proofs of claim by Oct. 19, 2006, to the company's liquidators: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman, Cayman Islands Tel: (345) 949 8666 Fax: (345) 949 7904 Creditors who are not able to comply with the Oct. 19 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Modena Limited's shareholders agreed on Sept. 7, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. PHYSICIANS SECURITY: Final Shareholders Meeting Is on Oct. 19 ------------------------------------------------------------- Physicians Security Insurance Company's final shareholders meeting will be at 9:30 a.m. on Oct. 19, 2006, at: Global Captive Management Ltd. Genesis Building P.O. Box 1363GT, George Town Grand Cayman, Cayman Islands These agendas 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: Peter Mackay Global Captive Management Ltd. Genesis Building P.O. Box 1363, George Town Grand Cayman, Cayman Islands Tel: (345) 949 7966 PMA EUROPEAN: Last Shareholders Meeting Is Scheduled for Oct. 19 ---------------------------------------------------------------- PMA European Scion Fund Limited's shareholders will convene for a final meeting on Oct. 19, 2006, at: Maples Finance Limited Queensgate House, George Town Grand Cayman, Cayman Islands Accounts on the company's liquidation process will be presented during the meeting. The liquidator can be reached at: Richard Gordon Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands PMA EUROPEAN (MASTER): Final Shareholders Meeting Is on Oct. 19 --------------------------------------------------------------- PMA European Scion Master Fund Limited's shareholders will convene for a final meeting on Oct. 19, 2006, at: Maples Finance Limited Queensgate House, George Town Grand Cayman, Cayman Islands Accounts on the company's liquidation process will be presented during the meeting. The liquidator can be reached at: Richard Gordon Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands SAND DOLLAR: Proofs of Claim Filing Deadline Is Set for Oct. 19 --------------------------------------------------------------- Sand Dollar Limited's creditors are required to submit proofs of claim by Oct. 19, 2006, to the company's liquidators: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman, Cayman Islands Tel: (345) 949 8666 Fax: (345) 949 7904 Creditors who are not able to comply with the Oct. 19 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Sand Dollar's shareholders agreed on Sept. 7, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. SCOTTISH RE: Terminates & Reduces Syndicated Credit Facilities -------------------------------------------------------------- Scottish Re Group Limited has permanently reduced the aggregate commitments under the Amended and Restated Credit Agreement dated July 14, 2005, among: -- Scottish Annuity & Life Insurance Company (Cayman) Ltd.; -- Scottish Re (Dublin) Limited; -- Scottish Re (U.S.), Inc.; -- Scottish Re Limited; and -- a syndicate of banks to US$42.8 million. The company also announced that Scottish Annuity & Life Insurance Company (Cayman) Ltd., has terminated the Letter of Credit Agreement dated Aug. 18, 2005, among: -- Scottish Re (Dublin) Limited, -- Scottish Annuity & Life Insurance Company (Cayman) Ltd., -- various financial institutions, and -- Bank of America, N.A., as administrative agent, effective Sept. 22, 2006. All letters of credit outstanding under that agreement, in an aggregate amount of US$10 million, have been cancelled. Dean Miller, Chief Financial Officer, remarked "As previously stated, the availability of further borrowings under these credit facilities has been uncertain. Rather than continue negotiations with the banking syndicate, we elected to permanently reduce the US$200 million credit facility to US$42.8 million, which is the face amount of outstanding letters of credit under the agreement. Using existing available liquidity, we are currently working with our clients to provide them with alternate letters of credit or assets in trust to replace these outstanding letters of credit. Once these alternate letters of credit or assets in trust are in place, we can terminate the US$200 million credit facility which will eliminate the current restriction on the Company's ability to transfer funds to Scottish Re Group Limited in order to pay the US$115 million 4.5% Convertible Notes which can be put to the Company on Dec. 6, 2006. In addition, we terminated the US$30 million letter of credit facility available to our Dublin subsidiary." Scottish Re Group Limited -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating companies in Bermuda, Charlotte, North Carolina, Dublin, Ireland, Grand Cayman, and Windsor, England. At March 31, 2006, the reinsurer's balance sheet showed US$12.2 billion assets and US$10.8 billion in liabilities On Aug. 21, 2006, Standard & Poor's Ratings Services lowered its counterparty credit rating on Scottish Re Group Ltd. to 'B+' from 'BB+'. For the same reason, Moody's Investor Service downgraded Scottish Re's senior unsecured debt rating to Ba3 from Ba2 due to liquidity issues. A.M. Best Co. has downgraded on Aug. 22, 2006, the financial strength rating to B+ from B++ and the issuer credit ratings to "bbb-" from "bbb+" of the primary operating insurance subsidiaries of Scottish Re Group Limited (Scottish Re) (Cayman Islands). A.M. Best has also downgraded the ICR of Scottish Re to "bb-" from "bb+". AM Best put all ratings under review with negative implications. SILVER TOWER: Shareholders Convene for a Last Meeting on Oct. 19 ---------------------------------------------------------------- Silver Tower Specialised Financing Limited's shareholders will convene for a final meeting on Oct. 19, 2006, at: Maples Finance Limited Queensgate House, George Town Grand Cayman, Cayman Islands Accounts on the company's liquidation process will be presented during the meeting. The liquidator can be reached at: Richard Gordon Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands ========= C H I L E ========= SHAW GROUP: Moody's Assigns Loss-Given-Default Rating ----------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the homebuilding and construction-related sector, the rating agency confirmed its Ba2 Corporate Family Rating for Shaw Group, Inc. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$750 million Gtd. Sr. Sec. Revolver due 2010 Ba2 Ba2 LGD 3 42% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). =============== C O L O M B I A =============== NOVELL INC: Wells Fargo Issues Default Notice --------------------------------------------- Novell, Inc., has received a letter from Wells Fargo Bank, N.A., the trustee with respect to company's US$600 million 0.50% convertible senior debentures due 2024, which asserts that Novell is in default under the indenture because of the delay in filing its Form 10-Q for the period ended July 31, 2006. The letter states that this asserted default will not become an "event of default" under the indenture if the company cures the default within 60 days after the date of the notice. Novell says the default is invalid and without merit and asserts that it has not failed to perform its obligations under the indenture. Novell's indenture requires that it provide the trustee copies of all SEC filings within 15 days after such filings are actually made. Novell says it will comply with this requirement by providing the Form 10-Q for the period ended July 31, 2006, to the trustee after filing it with the SEC. In the event the above-mentioned notice of default is not invalid, and in the event such default were to mature into an event of default under the indenture, the trustee or the holders of at least 25% in aggregate outstanding principal amount of debentures may accelerate the maturity of the debentures. In addition, Novell also received a staff determination notice from the NASDAQ Stock Market stating that the company's common stock is subject to delisting from the NASDAQ Stock Market. The notice was issued in accordance with standard NASDAQ procedures as a result of the delayed filing of Novell's quarterly report on Form 10-Q for the period ended July 31, 2006. Timely filing of periodic reports is a requirement for continued listing under NASDAQ marketplace rule 4310(c)(14). The late filing resulted from Novell's previously announced voluntary review by its audit committee of Novell's historical stock-based compensation practices. The company intends to file its quarterly report on Form 10-Q for the period ended July 31, 2006 as soon as practicable after the audit committee's review is concluded. About Novell Novell, Inc. -- http://www.novell.com/-- delivers Software for the Open Enterprise. With more than 50,000 customers in 43 countries, Novell helps customers manage, simplify, secure and integrate their technology environments by leveraging best-of- breed, open standards-based software. Novell has sales offices in Argentina, Brazil and Colombia. ===================== E L S A L V A D O R ===================== SPECTRUM BRANDS: Moody's Assigns Loss-Given-Default Rating ---------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the consumer products sector, the rating agency confirmed its B3 Corporate Family Rating for Spectrum Brands. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$300 million Revolving Credit B2 B1 LGD2 27% US$1,143 million Term Loan B2 B1 LGD2 27% US$700 million Sr. Sub. Notes Caa2 Caa2 LGD5 82% US$350 million Sr. Sub. Notes Caa2 Caa2 LGD5 82% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). ================= G U A T E M A L A ================= UNIVERSAL CORP: Subsidiary Sells Businesses for US$527 Million -------------------------------------------------------------- Universal Corp.'s subsidiary, Deli Universal, Inc., has completed the sale of its non-tobacco businesses to NPM Capital N.V., owned by NIBC Principal Investments and managers of Deli's non-tobacco businesses. The overall transaction is valued at approximately US$527 million, after selling expenses, based on estimated Aug. 31, 2006, financial statements. The company received US$401 million in cash, associated with the transaction, net of expenses, and the remainder of the purchase price represented debt assumed by the new company. Cash proceeds will be used to reduce debt; however the company's Board of Directors will consider the possibility of resuming the company's share repurchase program based on market conditions and the performance of its business. Proceeds will be adjusted based on final agreement on the accounts of the businesses as of the closing date. Based on current estimates, the company expects to record an after-tax loss on the transaction, including selling expenses, of about US$25 million in the second quarter of fiscal year 2007. About Deli's Non-Tobacco Business Deli's non-tobacco businesses include lumber and building products distribution and agri-products operations, including rubber and food trading, tea, and sunflower seeds. The company is retaining its dried fruits and nuts business in the United States and London. The revenues of Deli's non-tobacco businesses were US$1.4 billion in the fiscal year that ended March 31, 2006. Operating income for the businesses for the same period was approximately US$53 million. The businesses employ approximately 3,100 people, primarily in Holland and the United States. About NIBC and NPM Capital NIBC Principal Investments is a part of NIBC Bank N.V., a Netherlands-based merchant bank. NPM Capital N.V. is a part of SHV Holdings, N.V., a Netherlands-based private company. About Universal Corp. Based in Richmond, Virginia, Universal Corp., (NYSE:UVV) -- http://www.universalcorp.com/-- has operations in tobacco and agri-products. The company, through its subsidiaries, is one of two leading independent tobacco merchants in the world. Universal Corporation's gross revenues for the fiscal year that ended on March 31, 2006, were approximately US$3.5 billion, which included US$1.4 billion related to operations that were sold on Sept. 1, 2006. The company has operations in India, Brazil, Argentina, the United States, Guatemala, the Netherlands, Belgium and other countries in Europe. In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. Consumer Products, Beverage, Toy, Natural Product Processors, Packaged Food Processors and Agricultural Cooperative sectors, the rating agency confirmed its Ba1 Corporate Family Rating for Universal Corporation, and downgraded its Ba1 rating to Ba2 on the company's US$563 million MTN. Additionally, Moody's assigned an LGD5 rating to the debt obligation, suggesting noteholders will experience a 73% loss in the event of a default. UNIVERSAL CORP: Moody's Assigns LGD5 Loss-Given-Default Rating -------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the U.S. Consumer Products, Beverage, Toy, Natural Product Processors, Packaged Food Processors and Agricultural Cooperative sectors, the rating agency confirmed its Ba1 Corporate Family Rating for Universal Corp., and downgraded its Ba1 rating to Ba2 on the company's US$563 million MTN. Additionally, Moody's assigned an LGD5 rating to the debt obligation, suggesting noteholders will experience a 73% loss in the event of a default. Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Based in Richmond, Virginia, Universal Corp., (NYSE:UVV) -- http://www.universalcorp.com/-- has operations in tobacco and agri-products. The Company, through its subsidiaries, is one of two leading independent tobacco merchants in the world. Universal Corp.'s gross revenues for the fiscal year that ended on March 31, 2006, were approximately US$3.5 billion, which included US$1.4 billion related to operations that were sold on Sept. 1, 2006. =============== H O N D U R A S =============== * HONDURAS: Gets United States' Support on Energy Policy -------------------------------------------------------- U.S. President George W. Bush gave his support to Honduran President Manuel Zelaya's energy policy, according to a statement from the White House. Honduras This Week Online relates that the two government leaders met earlier this week. President Zelaya told Honduras This Week that President Bush was informed about the solutions Honduras is seeking to achieve lower gas prices like: -- the international bidding process, and -- the increase in hydroelectric projects to lower the price of electricity. According to Honduras This Week, the two presidents also discussed during the meeting the immigration and the need to avoid the migration of Hondurans to the US by improving the economic conditions in Honduras. Presidents Bush and Zelaya also talked about legal reforms that would permit permanent residence to many Hondurans, Honduras This Week reports. * * * Moody's Investor Service assigned these ratings on Honduras: Rating Rating Date ------ ----------- Senior Unsecured B2 Sept. 29, 1998 Long Term IDR B2 Sept. 29, 1998 ============= J A M A I C A ============= DIGICEL LTD: Will Invest US$100MM to Upgrade Infrastructure ----------------------------------------------------------- Digicel Ltd. will invest US$100 million to upgrade its Jamaican infrastructure this year, according to a report by the Jamaica Observer. The Observer relates that the investment Digicel has made in Jamaica is now over US$600 million, since launching operations in the nation in 2001. Business News Americas states that the new investment will be used in upgrading: -- switches, -- WiMax, -- network facilities, -- training programs, and - retail stores. Denis O'Brien, the chairperson of Digicel, told BNamericas, "We think that Jamaica is going through a renaissance similar to what Ireland went through in the late 1980s, and as a place to attract investors we think that Jamaica has one of the more outstanding opportunities in the Caribbean." BNamericas notes that tourism industry growth is a motivating factor for increasing coverage, as well as the boost in manufacturing industry. Jesus Silva -- Spain's ambassador to Jamaica -- told a local paper that Spanish hotel investments are expected to exceed US$1.3 billion in 2006. The Observer underscores that Mr. Silva said that the new resorts would create direct employment of 15,000 and about 50,000 indirect jobs. Mr. O'Brien told The Observer, "When you look at all the different things you need as an investor, if you're into tourism you won't see anything like the beauty of Jamaica. Particularly in the northern shores, obviously there's a lot of investment coming in from the Spanish companies, and they recognize that." Mr. O'Brien, says The Observer, stated that he saw a lot of scope for investment in the service and manufacturing sectors. He said that the economy is probably doing better than people realize. "It's extraordinary. About 86% of people in Jamaica now have a mobile phone, whereas five, six years ago that was maybe less than 10%," The Observer notes, citing Mr. O'Brien. Mr. O'Brien told The Observer that mobile telephony is the starting point for nations wishing to create a knowledge-based economy and develop ICT strategy, as a mobile phone is the first device -- aside from a television remote control -- that most people would have held in their hands. The Observer emphasizes that Mr. O'Brien said, "We know there are plans to try and increase the penetration of computers in the country. We think that mobile phones are the sort of opening steps to setting up an ICT economy. Also, one of the things that we think is very positive is the fact that there are now fiber-optic submarine cables coming into Jamaica, so that monopoly has been broken and that, I think, is positive for companies that are setting up here and need communications links at low costs." According to the report, Mr. O'Brien expected that the development would stimulate more investment, as submarine cables are like umbilical cords for transferring information. "And if you have that kind of access, well, the whole world market opens up. So these are the kinds of things that we think are very positive about Jamaica right now," Mr. O'Brien told The Observer. Digicel Limited is a wireless services provider in the Caribbean region founded in 2000, and controlled by Denis O'Brien. The company started operations in Jamaica in April 2001 and now offers GSM mobile services in Caribbean countries including Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados, Cayman, and Curacao among others. Digicel finished FY2005 with 1.722 million total subscribers -- 97% pre-paid -- estimated market share of 67% and revenues and EBITDA of US$478 million and US$155 million, respectively. * * * On July 12, 2006, Moody's Investors Service assigned a B3 senior unsecured rating to the US$150 million add-on Notes offering of Digicel Limited and affirmed Digicel's existing B3 senior unsecured and B1 Corporate Family Ratings. The outlook has been changed to stable from positive. Fitch Ratings assigned on July 14, 2006, a 'B' rating to Digicel Limited's proposed add-on offering of US$150 million 9.25% senior notes due 2012. These notes are an extension of the US$300 million notes issued in July 2005. In addition, Fitch also affirms Digicel's foreign currency Issuer Default Rating and the existing US$300 million senior notes due 2012 at 'B'. Fitch said the Rating Outlook is Stable. SUGAR COMPANY: Dhampur Sugar to Bid for Firm's Five Factories ------------------------------------------------------------- Dhampur Sugar Mills, one of the leading sugar producers in India, will make an offer for the five sugar factories of the Sugar Company of Jamaica, Times of India reports. As reported in the Troubled Company Reporter-Latin America on Sept. 22, 2006, the All Island Jamaica Cane Farmers Association abandoned its partnership with Brazil's Aracatu, saying that the latter was not interested enough in making a bid for the purchase of the Sugar Company. Since then, the association had intensified partnership discussions with Dhampur Sugar. According to Times of India, Dhampur Sugar has been a technical advisor to the Sugar Company since 2004. Gaurav Goel -- Dhampur Sugar's managing director -- told Times of India that the firm was interested on the Jamaican mills. Times of India relates that Mr. Goel said the bidding process for the factories will be in the next few months. According to him, the process was delayed due to elections in Jamaica. Mr. Goel told Times of India that if Dhampur Sugar gets the factories, he will produce and sell ethanol and Jamaican rum. Times of India underscores that the demand for ethanol is growing as fuel sellers are increasingly using it to mix with gasoline. The acquisition of the factories of the Sugar Company would give Dhampur Sugar a chance to expand operations and margins. Dhampur sugar will also gain sugarcane acreage, Times of India says, citing Mr. Goel. 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. =========== M E X I C O =========== BALLY TOTAL: Moody's Assigns Loss-Given-Default Rating ------------------------------------------------------ In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the Consumer Services sector, the rating agency confirmed its Caa1 Corporate Family Rating for Bally Total Fitness Holding Corp. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$100 million Secured Revolver due 2008 B3 B1 LGD1 8% US$136 million Secured Term Loan due 2009 B3 B1 LGD1 8% US$235 million 10.5% Senior Unsecured Notes due 2011 Caa1 Caa1 LGD3 48% US$300 million 9.875% Senior Subordinated Notes due 2007 Ca Caa3 LGD5 87% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). BERRY PLASTICS: Moody's Assigns Loss-Given-Default Rating --------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the non-paper Packaging sector, the rating agency confirmed its B1 Corporate Family Rating for Berry Plastics Holding Corp. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$200 million Sr. Sec. First Lien Revolver Maturing 2012 Ba2 Ba1 LGD2 18% US$675 million Sr. Sec. First Lien Term Loan B due 2013 Ba2 Ba1 LGD2 18% US$225 million Sr. Sec. 2nd lien FRNs due 2014 B2 B2 LGD4 62% US$525 million Sr. Sec. 2nd lien Notes due 2014 B2 B2 LGD4 62% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). CHEMTURA CORP: Moody's Assigns Loss-Given-Default Rating -------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the Chemicals and Allied Products sector, the rating agency confirmed its Ba1 Corporate Family Rating for Chemtura Corp. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$500mm 6.875% Gtd. Sr. Notes due June 2016 Ba1 Ba1 LGD4 53% US$150mm 6.875% Sr. Sec. Debentures due Feb 2026 Ba1 Ba1 LGD4 53% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). CHURCH & DWIGHT: Moody's Assigns Loss-Given-Default Ratings ----------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the US Consumer Products, Beverage, Toy, Natural Product Processors, Packaged Food Processors and Agricultural Cooperative sectors, the rating agency confirmed its B2 Corporate Family Rating for Church & Dwight Company, Inc. Additionally, Moody's revised and held its probability-of- default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$100 million Revolving Credit Ba2 Baa3 LGD2 23% US$531 million Sr. Secured Term Loan Ba2 Baa3 LGD2 23% US$100 million Conv. Debentures Ba2 Ba2 LGD4 59% US$250 million Sr. Sub. Notes Ba3 Ba3 LGD5 85% Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Headquartered in Princeton, New Jersey, Church & Dwight Co. Inc. -- http://www.churchdwight.com/-- manufactures and sells sodium bicarbonate products popularly known as baking soda. The company also makes laundry detergent, bathroom cleaners, cat litter, carpet deodorizer, air fresheners, toothpaste, and antiperspirants. The company's international business includes operations in Australia, Canada, Mexico, the United Kingdom, France and Spain. CINRAM INTERNATIONAL: Moody's Assigns Loss-Given-Default Rating --------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the Manufacturing sector, the rating agency confirmed its B1 Corporate Family Rating for Cinram International Inc. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$675 million Sr. Sec. Term Loan B1 B1 LGD 3 32% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). DELTA AIR: Names New Officials for International Sales ------------------------------------------------------ Delta Air Lines appointed two leaders to fill vacant positions in its international sales organization to support a growing network of routes in Latin America, the Caribbean, Europe, Africa, and the Middle East. C. Didier Christophe Didier, currently Delta's regional sales manager for South America, has been promoted to director of Sales and Affairs for Latin America and the Caribbean and will be based in Rio de Janiero, Brazil. Since joining Delta in 1999, Mr. Didier has been responsible for managing sales offices in seven countries across South America and has opened five new markets in the region. Before Delta, Mr. Didier managed Latin America sales and marketing for Air France based in both Brazil and Paris. Farehk "Frank" Jahangir, a former employee of United Kingdom- based Virgin F. JahangirHolidays, has been named director of Sales and Affairs for Europe, Middle East and Africa and will be based at Delta's Atlantic Region Offices in London. Mr. Jahangir is joining Delta from Virgin Holidays in London where he was responsible for increasing sales by 42% via direct sales channels. Before joining Virgin Holidays, Mr. Jahangir served as sales director for eBookers PLC, Europe's No. 1 online travel company. Pam Elledge, Delta's vice president of Global Sales and Distribution, said, "We are pleased to add the expertise of two well-respected global professionals to these key roles on our sales team as we become an even more international company. Over the last year Delta has successfully added more than 50 new international routes around the globe with the support of more than 40 worldwide sales offices. Moving forward, Christophe and Frank will play critical roles in the continuing globalization and expansion of Delta." Messrs. Didier and Jahangir have spent their careers abroad benefiting from both international education and experience. Mr. Didier, a Brazilian and French national, is fluent in four languages and is a graduate of Ecole Superieure De Commerce De Paris with a degree in international business administration. Meanwhile, Mr. Jahangir is a graduate of the University of Westminster in the United Kingdom with a degree in history and is fluent in two languages. Headquartered in Atlanta, Georgia, Delta Air Lines -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 502 destinations in 88 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. The Company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. As of June 30, 2005, the Company's balance sheet showed US$21.5 billion in assets and US$28.5 billion in liabilities. DESARROLLADORA HOMEX: Names David Sanchez-Tembleque as CEO ---------------------------------------------------------- Desarrolladora Homex, S.A.B. de C.V. has named David Sanchez- Tembleque Chief Executive Officer, effective Oct. 1, 2006. He will succeed Gerardo de Nicolas, who will become Homex's Chief Strategic Officer and head of the Executive Committee. Mr. Sanchez-Tembleque joins Homex from INFONAVIT, Mexico's leading mortgage lender, with assets of more than US$40 billion, where he served as Deputy General Director of Strategic Planning and Finance. "David Sanchez-Tembleque is one of the more experienced executives in the Mexican housing sector," commented Eustaquio de Nicolas, Chairman of the Board of Homex. "In his role at INFONAVIT, David helped drive the development of the Mexican housing sector with progressive initiatives, such as the securitization of mortgages. David brings to Homex an in-depth knowledge of the housing and mortgage markets as well as an enthusiasm and fresh perspective to help drive Homex to the next level of profitable growth." "This is a very significant event for Homex, further distinguishing our Company as a world-class homebuilder," added Gary R. Garrabrant, Vice-Chairman of Homex and CEO of Equity International, a major Homex shareholder. The total homebuilding market in Mexico is over US$20 billion annually, and economic trends point to continued growth. Under Gerardo de Nicolas' leadership, Homex has experienced a CAGR of 79 percent in revenues over the last five years and has successfully expanded its operations into the largest markets in Mexico. "In order to focus more aggressively on growth opportunities for Homex, the Board and I agreed that I should concentrate more on strategic planning and assessment of new markets for the Company, while David would focus on operations, finance and the investment community. I look forward to tackling the opportunities ahead and am very pleased that David has joined our leadership team," said Gerardo de Nicolas. Prior to his service with INFONAVIT, Mr. Sanchez-Tembleque was the head of corporate finance and investor relations at BBVA Bancomer, one of Mexico's largest financial institutions. Earlier, he held several senior management positions with BBVA Bancomer, including director of strategic planning and finance of Bancomer's mortgage business. Mr. Sanchez-Tembleque has an undergraduate degree in economics from Universidad Santiago de Compostela, in Spain, and earned his MBA from Tulane University. Desarrolladora Homex -- http://www.homex.com.mx-- is a vertically integrated home development company focused on affordable entry-level and middle-income housing in Mexico. It is one of the most geographically diverse homebuilders in the country. Homex is the largest homebuilder in Mexico, based on revenues, number of homes sold and net income. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 26, 2006, Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit ratings on Desarrolladora Homex S.A.B. de C.V. S&P also said that it affirmed its 'BB-' rating on Homex's US$250 million, 7.5% senior unsecured notes due 2015. The outlook on Homex remains stable. DIRECTV HOLDINGS: Moody's Assigns Loss-Given-Default Rating ----------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the diversified media sector, the rating agency confirmed its Ba2 Corporate Family Rating for DIRECTV Holdings LLC. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Sr. Sec. Term Loan A (2011) Ba1 Baa3 LGD2 18% Sr. Sec. Term Loan B (2013) Ba1 Baa3 LGD2 18% Sr. Sec. Revolving Credit Facility (2011) Ba1 Baa3 LGD2 18% 8.375% Sr. Unsec. Notes (2013) Ba2 Ba3 LGD5 72% 6.375% Sr. Unsec. Notes due (2015) Ba2 Ba3 LGD5 72% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). EMPRESAS ICA: ICA Fluor to Bid for State Power Firm's Revamp ------------------------------------------------------------ ICA Fluor Daniel, which is jointly owned by Empresas ICA Sociedad Controladora and Fluor Corp., has joined the bidding to revamp and upgrade the 1,365-megawatt Laguna Verde nuclear plant of Comision Federal de Electricidad, Mexico's states power firm, Business News Americas reports. Laguna Verde is located in Veracruz. It launched operations in 1990. The plant represents 2.96% of Comision Federal's installed capacity, the firm said in its Web site. Compranet, the federal procurement Web site posted 13 other firms that registered for the bidding: -- Siemens Power Generation, -- Sener Ingenieria y Sistemas, -- Techint, -- Metrologia Mexicana, -- Alstom Mexicana, -- General Electric International, -- Socoin Ingenieria y Construccion, -- Schneider Electric Mexico, -- Prolec GE, -- Iberdrola Ingenieria y Consultoria Mexico, -- Elecnor, -- Mitsubishi Heavy Industries, and -- Mitsubishi Corp. According to BNamericas, the project aims to increase the plant's capacity to 1,620 megawatts. Reports say that investment on the project could amount to US$300 million. The deadline for offers is on Oct. 11. Works will start in November and is expected to take more than three and a half years, BNamericas states. Empresas ICA -- http://www.ica.com.mx/-- the largest engineering, construction, and procurement company in Mexico, was founded in 1947. ICA has completed construction and engineering projects in 21 countries. ICA's principal business units include civil construction and industrial construction. Through its subsidiaries, ICA also develops housing, manages airports, and operates tunnels, highways, and municipal services under government concession contracts and/or partial sale of long-term contract rights. * * * Standard & Poor's assigned these ratings to Empresas ICA, with stable outlook: -- LT Foreign Issuer Credit B; and -- LT Local Issuer Credit B. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 23, 2006, Standard & Poor's Ratings Services revised its long-term corporate credit rating on Empresas ICA S.A. de C.V. to 'BB-' from 'B'. The ratings were removed from CreditWatch Positive, where they were placed on April 7, 2006. The outlook is stable. GRUPO TMM: Purchases New Anchor Handler Tug Supply Vessel --------------------------------------------------------- Grupo TMM, S.A. has closed the purchase and taken delivery of a new anchor handler tug supply vessel, which the company had previously announced on its second quarter conference call. The AHTS is a newly built 150-ton bollard pull anchor handler. The purchase price of the vessel was US$30.7 million, of which US$25.4 million was financed. Javier Segovia, president of Grupo TMM, said, "During 2006, the company has significantly increased its owned offshore fleet, reducing the operating cost and at the same time building equity in these vessels. The company's offshore fleet in now comprised of 24 vessels working to support the increasing demand of offshore exploration and production activities in the Gulf of Mexico under the umbrella of Mexico's Navigation Law." Headquartered in Mexico City, Grupo TMM S.A. (NYSE: TMM)(MEX VALORIS: TMMA) -- http://www.grupotmm.com/-- is a Latin American multimodal transportation and logistics company. Through its branch offices and network of subsidiary companies, TMM provides a dynamic combination of ocean and land transportation services. * * * Standard & Poor's Ratings Services raised its corporate credit rating on Grupo TMM S.A. to 'B-' from 'CCC'. The rating was removed from Creditwatch, where it was placed on Dec. 15, 2004. S&P said the outlook is positive. LIBBEY GLASS: Moody's Assigns Loss-Given-Default Rating ------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the consumer products sector, the rating agency confirmed its B2 Corporate Family Rating for Libbey Glass Inc. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$306 million Sr. Sec. Notes 2011 B2 B2 LGD3 49% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). MERIDIAN AUTOMOTIVE: Inks Pacts with Mazda & Daimler/Chrysler ------------------------------------------------------------- Meridian Automotive Systems, Inc., has entered into new contracts for rear tail-light assemblies with Mazda Motor Corp. and Daimler/Chrysler Corp., The Grand Rapids Press reports. Mike Moriarty, the company's vice president and corporate controller, told the newspaper that the new contracts will give Meridian new markets and new potentials. Julie Makarewicz of The Grand Rapids Press relates that Meridian plans to invest US$4,200,000 in equipment for its 3075 Breton Avenue plant in Kentwood City, Michigan, which will result in the creation of at least 40 jobs within two years. Meridian currently employs 324 people at the site. 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. 39; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) NUEVO LEON: Ministry to Seek MXN1.7 Bil. for Highway Projects ------------------------------------------------------------- Raul Cadena -- the head of Nuevo Leon's transport and communications ministry -- told El Norte that the ministry will request MXN1.7 billion in next year's budget to spend on highway projects. Once the funding gets the legislators' approval, it would double the amount invested in 2006, Business News Americas relates, citing Mr. Cadena. According to BNamericas, most of the money would be used in: -- continuing projects already underway, including the Libramiento Noroeste bypass; -- widening the Carretera Nacional highway; and -- works on the road to Miguel Aleman. BNamericas states that the budget would also provide MXN200 million for the first stage of the Libramiento Oriente -- a new bypass for truck transport. It will be the ministry's main project in 2007. The road will connect the highway from Monterrey to Nuevo Laredo on the US border with the Carretera Nacional, through the Cadereyta-Allende highway. BNamericas reports that the first phase of the new project would include: -- a 13-kilometer stretch between the Aeropuerto del Norte, the general aviation terminal; and -- the Monterrey international airport. Moody's Investors Service has placed Ba1 long-term issuer rating on Nuevo Leon. VITRO: Shareholders Approve MXN62,857,143 Capital Stock Increase ---------------------------------------------------------------- Vitro S.A. de C.V. approved an increase in the variable portion of the company's capital stock through which the company expects to receive funds totaling MXN550 million. Vitro's current shareholders may subscribe shares by exercising their preemptive rights as provided in its corporate by-laws. Shareholders approved that each of the 62,857,143 Vitro new Series "A" nominative ordinary shares with no par value to be issued, representing the capital increase, will be subscribed at a theoretical value of MXN1.00 plus a subscription premium of MXN7.75 to be credited to Stockholders' Equity in the Paid-in capital account. As a result, each share will be subscribed at a total value of MXN8.75. Therefore, shareholders' approved a MXN62,857,143 increase in the variable portion of the capital stock, which added to the MXN487,142,858 resulting from the subscription premium, will result in a total of MXN550,000,000, which the company expects to obtain from this capital increase. Once shareholders subscribe to and pay for this increase the company's capital stock will total MXN386,857,143 million. "We continue to make progress in our glass focused strategy as we take additional steps to strengthen our financial position. The capital increase approved today is one more sign of the support and confidence our shareholders have in the future of our company", commented Federico Sada, Vitro's Chief Executive Officer. Headquartered in Nuevo Leon, Mexico, Vitro, S.A. de C.V. -- http://www.vitro.com/-- (NYSE: VTO; BMV: VITROA), through its subsidiary companies, is one of the world's leading glass producers. Vitro is a major participant in three principal businesses: flat glass, glass containers and glassware. Its subsidiaries serve multiple product markets, including construction and automotive glass; food and beverage, wine, liquor, cosmetics and pharmaceutical glass containers; glassware for commercial, industrial and retail uses. Vitro also produces raw materials and equipment and capital goods for industrial use, which are vertically integrated in the Glass Containers business unit. Founded in 1909, Monterrey, Mexico-based Vitro has joint ventures with major world-class partners and industry leaders that provide its subsidiaries with access to international markets, distribution channels and state-of-the-art technology. Vitro's subsidiaries have facilities and distribution centers in eight countries, located in North, Central and South America, and Europe, and export to more than 70 countries worldwide. * * * As reported in the Troubled Company Reporter on Mar. 27, 2006, Standard & Poor's Ratings Services lowered its long-term local and foreign currency corporate credit ratings assigned to glass manufacturer Vitro S.A. de C.V. and its glass containers subsidiary Vitro Envases Norteamerica S.A. de C.V. (Vena) to 'B-' from 'B'. Standard & Poor's also lowered the long-term national scale corporate credit rating assigned to Vitro to 'mxBB+' from 'mxBBB-' with negative outlook. Standard & Poor's also lowered the rating assigned to Vitro's notes due 2013 and Servicios y Operaciones Financieras Vitro S.A. de C.V. notes due 2007 (which are guaranteed by Vitro) to 'CCC' from 'CCC+'. Standard & Poor's also lowered the rating assigned to Vena's notes due 2011 to 'B-' from 'B'. ================= N I C A R A G U A ================= * NICARAGUA: Court Denies Union Fenosa's Request for Injunction --------------------------------------------------------------- The supreme court of Nicaragua has rejected Union Fenosa's injunction petition regarding rate discounts, according to a report by La Prensa. Business News Americas relates that Instituto Nicaraguense de Energia, the energy regulator in Nicaragua, ordered in July that Union Fenosa make a US$5.2 million refund to users due to service interruptions and outages. The report says that Union Fenosa filed an injunction with the appeals court for the regulator's order to be suspended. However, the court decided against the company. Jorge Katin, the spokesperson of Union Fenosa, told BNamericas, "We'll have to wait for the result of the arbitration to know whether the rate discount is applied or not." BNamericas underscores that the arbitration proceedings has started. According to BNamericas, the regulator decided to take Union Fenosa to arbitration, alleging that the firm did not comply with concession contracts. Meanwhile, Union Fenosa said that electricity rates are below the cost of power it purchases from generators. The comptroller general of Nicaragua declared Union Fenosa's concession contract void in August, saying that the company has not made investments as stated in its contract, BNamericas reports. * * * Moody's Investor Service assigned these ratings to Nicaragua: Rating Rating Date ------ ----------- Long Term Caa1 June 30, 2003 Senior Unsecured Debt B3 June 30, 2003 =========== P A N A M A =========== SOLO CUP: Moody's Assigns Loss-Given-Default Rating --------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the non-paper Packaging sector, the rating agency confirmed its B3 Corporate Family Rating for Solo Cup Company. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$150 million Sr. Sec. First Lien Revolver Maturing Feb 27, 2010 B2 B2 LGD3 34% US$637 million Sr. Sec. First Lien Term Loan B due Feb 27, 2011 B2 B2 LGD3 34% US$80 million Second Lien Term Loan due Feb 27, 2012 Caa1 Caa1 LGD5 70% US$325 million 8.5% Senior Sub Notes due Feb 15, 2014 Caa2 Caa2 LGD5 87% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). * PANAMA: In Talks with Harken Energy on Exploratory Drilling ------------------------------------------------------------- An official the hydrocarbons department of Panama's trade and industries ministry told Business News Americas that the government is negotiating with Harken Energy -- an oil and gas firm from the United States -- a contract to conduct exploratory drilling in Darien province. BNamericas relates that the official said the accord would be similar to other oil exploration and production contracts in the region. The initial period would be for exploration work and if the resource is found, the company would have the option of producing oil. According to BNamericas, contract negotiations started when Harken presented an exploration request after the completion of a preliminary study. There is no hydrocarbons production in Panama and that the deal with Harken will be the closest to materializing, BNamericas states, citing the official. * * * Fitch Ratings assigned these ratings on Panama: Rating Rating Date ------ ----------- Country Ceiling BBB Apr. 8, 2005 Long Term IDR BB+ Dec. 14, 2005 Short Term IDR B Dec. 14, 2005 Local Currency Long Term Issuer Default Rating BB+ Dec. 14, 2005 =============== P A R A G U A Y =============== * PARAGUAY: Studies Draft of Joint Venture Debt Payment ------------------------------------------------------- Ruben Ramirez Lezcano, the foreign minister of Paraguay, has analyzed with Julio de Vido -- Argentina's federal planning minister -- the draft to reevaluate the debt payment of the EBY joint venture, which administers the Yacyreta hydro dam, Business News Americas reports. The dam is located on the Argentine-Paraguayan border. BNamericas states that EBY's debt is about US$11 billion, mainly due to additional building funded by Argentina. Paraguay, says BNamericas, thinks that interest was calculated unjustly. BNamericas underscores that under the new accord, Paraguay would send Argentina 8,000GWH over 40 years to settle its share of debt. According to BNamericas, the draft will be sent to technicians involved with the project. Negotiation rounds on the project will be in October and November, BNamericas relates. * * * Moody's assigned these ratings on Paraguay: -- CC LT Foreign Bank Deposit, Caa2 -- CC LT Foreign Curr Debt, Caa1 -- CC ST Foreign Bank Deposit, NP -- CC ST Foreign Currency Debt, NP -- LC Currency Issuer Rating, Caa1 -- FC Curr Issuer Rating, Caa1 -- Local Currency LT Debt, WR * * * 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 ======= PETROLEO BRASILEIRO: Inks Development Accord with Petroperu ----------------------------------------------------------- Petroleo Brasileiro, the state-owned oil company of Brazil, has signed a memorandum of understanding with Petroperu, its Peruvian counterpart, to develop joint projects in Peru, Business News Americas reports, citing a spokesperson from Petroperu. As reported in the Troubled Company Reporter-Latin America on Sept. 26, 2006, a spokesperson of Petroleo Brasileiro's Peruvian unit said that the Brazilian parent would enter into a memorandum of understanding with Petroperu on Sept. 27 for the development of projects in Peru. Petroleo Brasileiro had disclosed that it is interested in developing joint ventures with Petroperu for: -- exploration and production, -- natural gas, -- biofuels, -- refining, and -- petrochemicals. 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 Brazil. * * * 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. ===================== P U E R T O R I C O ===================== ADELPHIA COMMS: Files Further Changes to Plan of Reorganization --------------------------------------------------------------- On Sept. 27, 2006, Adelphia Communications Corp. filed a further revised draft of its Fifth Amended Joint Chapter 11 Plan of Reorganization and the related Supplement to its Fourth Amended Disclosure Statement with the U.S Bankruptcy Court for the Southern District of New York. On Sept. 21, 2006, the Court issued an opinion that, among other things, conditionally approved a supplemental Disclosure Statement for Adelphia. The modifications reflect certain changes discussed at the hearings on September 12 and 19 and the Bankruptcy Court's opinion. Adelphia, the Official Committee of Unsecured Creditors and two administrative agents, with respect to the classification and treatment of bank claims under the credit agreements for which they are agents, remain co-proponents of the modified plan, which embodies the framework agreed upon by Adelphia, its Official Committee of Unsecured Creditors, significant individual bond funds and the two administrative agents with which settlements have been reached. In connection with the filing, Adelphia and the Official Committee of Unsecured Creditors also have submitted a proposed revised order approving the Supplement to the Disclosure Statement as containing "adequate information" to enable Adelphia's Chapter 11 bankruptcy creditors and equity holders to make an informed judgment about the Fifth Amended Plan. Adelphia's proposal and prosecution of confirmation of the modified Fifth Amended Plan still is subject in all respects to entry of such an order, as well as Bankruptcy Court authorization for Adelphia to propose and seek votes in respect of the modified Fifth Amended Plan. Absent entry of such an order and authorization, Adelphia's filing of the modified Fifth Amended Plan and related Supplement to the Disclosure Statement shall not be deemed to be a proposal by the Debtors with respect to the treatment of any claims against or equity interests in Adelphia or its subsidiaries. If this order is entered and such authorization is granted, Adelphia, the Official Committee of Unsecured Creditors and the relevant bank administrative agents will begin the process of soliciting creditors and equity holders to vote on the modified Fifth Amended Plan. A full-text copy of the second Revised Draft Fifth Amended Plan is available for free at http://ResearchArchives.com/t/s?1295 A full-text copy of the second revised Second Disclosure Statement Supplement relating to Fifth Amended Plan is available for free at http://ResearchArchives.com/t/s?1296 About Adelphia Communications Corp. Coudersport, Pa.-based Adelphia Communications Corp. (OTC: ADELQ) -- http://www.adelphia.com/-- is the fifth-largest cable television company in the country. Adelphia serves customers in 30 states and Puerto Rico, and offers analog and digital video services, high-speed Internet access and other advanced services over its broadband networks. The company and its more than 200 affiliates filed for Chapter 11 protection in the Southern District of New York on June 25, 2002. Those cases are jointly administered under case number 02-41729. Willkie Farr & Gallagher represents the ACOM Debtors. PricewaterhouseCoopers serves as the Debtors' financial advisor. Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP represent the Official Committee of Unsecured Creditors. Adelphia Cablevision Associates of Radnor, L.P., and 20 of its affiliates, collectively known as Rigas Manged Entities, are entities that were previously held or controlled by members of the Rigas family. In March 2006, the rights and titles to these entities were transferred to certain subsidiaries of Adelphia Cablevision, LLC. The RME Debtors filed for chapter 11 protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-10642). Their cases are jointly administered under Adelphia Communications and its debtor-affiliates chapter 11 cases. ADELPHIA COMMS: Lists 100 Pacts Assumed by Time Warner & Comcast ---------------------------------------------------------------- Adelphia Communications Corp. and its debtor-affiliates identified about 100 more executory contracts and unexpired leases that were assumed by and assigned to Time Warner, Inc., and Comcast Corporation. A list of the additional contracts and leases is available for free at: http://bankrupt.com/misc/acom_amendedcontractlist.pdf About Adelphia Communications Corp. Based in Coudersport, Pa., Adelphia Communications Corp. (OTC: ADELQ) -- http://www.adelphia.com/-- is the fifth-largest cable television company in the country. Adelphia serves customers in 30 states and Puerto Rico, and offers analog and digital video services, high-speed Internet access and other advanced services over its broadband networks. The company and its more than 200 affiliates filed for Chapter 11 protection in the Southern District of New York on June 25, 2002. Those cases are jointly administered under case number 02-41729. Willkie Farr & Gallagher represents the ACOM Debtors. PricewaterhouseCoopers serves as the Debtors' financial advisor. Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP represent the Official Committee of Unsecured Creditors. Adelphia Cablevision Associates of Radnor, L.P., and 20 of its affiliates, collectively known as Rigas Manged Entities, are entities that were previously held or controlled by members of the Rigas family. In March 2006, the rights and titles to these entities were transferred to certain subsidiaries of Adelphia Cablevision, LLC. The RME Debtors filed for chapter 11 protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622 through 06- 10642). Their cases are jointly administered under Adelphia Communications and its debtor-affiliates chapter 11 cases. (Adelphia Bankruptcy News, Issue Nos. 148; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) CHATTEM INC: Moody's Assigns Loss-Given-Default Rating ------------------------------------------------------ In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the US Consumer Products, Beverage, Toy, Natural Product Processors, Packaged Food Processors and Agricultural Cooperative sectors, the rating agency confirmed its Ba3 Corporate Family Rating for Chattem, Inc., and upgraded its B2 rating on the Company's US$125 million senior subordinated notes to B1. In addition, Moody's assigned an LGD5 rating to the notes, suggesting noteholders will experience a 76% loss in the event of a default. Moody's explains that current long-term credit ratings are opinions about expected credit loss, which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Based in Chattanooga, Tennessee, Chattem Inc. (NASDAQ: CHTT) -- http://www.chattem.com/-- manufactures and markets a variety of branded consumer products, including over-the-counter healthcare products and toiletries and skin care products. The Company's products include Gold Bond medicated powder, Icy Hot topical analgesic, Dexatrim appetite suppressant, and Bullfrog sunblock. CONSOLIDATED CONTAINER: Moody's Assign Loss-Given-Default Rating ---------------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the non-paper Packaging sector, the rating agency confirmed its B3 Corporate Family Rating for Consolidated Container Company LLC. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$45 million Sr. Sec. First Lien Revolver Maturing 12/15/2008 B2 Ba3 LGD2 18% US$216.2 million Sr. Sec. First Lien Term Loan due 12/15/2008 B2 Ba3 LGD2 18% US$182 million 10.75% Sr. Sec. Second Lien Discount PIK Notes due 06/15/2009 B3 B3 LGD4 53% US$185 million 10.125% Sr. Sub. Notes due 07/15/2009 Caa2 Caa2 LGD5 85% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). DRESSER INC: Moody's Assigns Loss-Given-Default Rating ------------------------------------------------------ In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the oilfield service and refining and marketing sectors this week, the rating agency confirmed its B1 Corporate Family Rating for Dresser Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given- default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Sr. Sec. Term Loan C Due 2009 B1 Ba1 LGD2 14% Sr. Unsec. Term Loan Due 2010 B2 B1 LGD3 46% 9.375% Sr. Sub. Global Notes Due 2011 B3 B3 LGD5 79% Moody's explains that current long-term credit ratings are opinions about expected credit loss which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). Based in Addison, Texas, Dresser, Inc. -- http://www.dresser.com/-- designs, manufactures and markets equipment and services sold primarily to customers in the flow control, measurement systems, and compression and power systems segments of the energy industry. The Company has a comprehensive global presence, with over 8,500 employees and a sales presence in over 100 countries worldwide including Mexico and Puerto Rico. EAGLE FAMILY: Moody's Assigns Loss-Given-Default Rating ------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the consumer products sector, the rating agency confirmed its B2 Corporate Family Rating for Eagle Family Foods, Inc. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$115 million 8.75% Sr. Sub. Notes due Jan. 2008 Caa3 Caa2 LGD5 87% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). GLOBAL HOME: Panel Wants Basham Ringe as Special Mexican Counsel ---------------------------------------------------------------- The Official Committee of Unsecured Creditors in Global Home Products, LLC, and its debtor-affiliates' bankruptcy cases asks the Honorable Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware for permission to retain Basham, Ringe y Correa, S.C., as its special Mexican counsel, nunc pro tunc to Aug. 1, 2006. The Committee wants Basham Ringe to perform services relating to the examination of prepetition liens and security interests allegedly held by Wachovia Bank National Association and Madeleine LLC. Wachovia and Madeleine allegedly hold those liens in relation to the Debtors' foreign business entities and their non-debtor subsidiaries located in Mexico. Basham Ringe will: a. assist the Committee in investigating the extent, validity, priority, and perfection of alleged liens and security interest of Wachovia and Madeleine allegedly secured by the assets or equity of the Debtors and their non-debtor foreign subsidiaries located in Mexico; b. assist in the preparation of applications, motions, complaints, answers, orders, agreements, and other legal papers if necessary; and c. perform other related legal services as may be required and that are in the interest of the Committee and creditors represented by the Committee. Carlos Portilla discloses the Firm's hourly rates: Designation Hourly Rate ----------- ----------- Partners US$310 - US$350 Off Counsel US$350 Associates US$170 - US$250 Legal Assistants US$67 - US$110 Mr. Portilla assures the Court that the Firm does not hold nor represent any interest adverse to the Debtors' estates. About Basham, Ringe y Correa, S.C. Basham, Ringe y Correa, S.C., is a Mexican law firm whose expertise relates to the granting and perfection of liens on assets located in Mexico. The firm's address is at: Basham, Ringe Y Correa SC Paseo De Los Tamarindos 400-A 9 Piso Bosques De Las Lomas 05120 Mexico, D.F., Mexico Headquartered in Westerville, Ohio, Global Home Products, LLC -- http://www.anchorhocking.com/and http://www.burnesgroup.com/ -- sells houseware and home products and manufactures high quality glass products for consumers and the food services industry. The company also designs and markets photo frames, photo albums and related home decor products. The company and 16 of its affiliates, including Burnes Puerto Rico, Inc., and Mirro Puerto Rico, Inc., filed for Chapter 11 protection on April 10, 2006 (Bankr. D. Del. Case No. 06-10340). Laura Davis Jones, Esq., Bruce Grohsgal, Esq., James E. O'Neill, Esq., and Sandra G.M. Selzer, Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub LLP, represent the Debtors. Bruce Buechler, Esq., at Lowenstein Sandler, P.C., and David M. Fournier, Esq., at Pepper Hamilton LLP represent the Official Committee of Unsecured Creditors. Huron Consulting Group LLC gives financial advice to the Committee. When the company filed for protection from their creditors, they estimated assets between US$50 million and US$100 million and estimated debts of more than US$100 million. SEARS HOLDINGS: Seeks Leave to Appeal Divisional Court Decision --------------------------------------------------------------- Sears Holdings Corp. will seek leave to appeal to the Court of Appeal from the decision of the Divisional Court relating to the company's offer to acquire all of the shares of Sears Canada. On Sept. 19, 2006, the Ontario Divisional Court dismissed, with reasons for decision to follow at a later date, the appeal by Sears Holdings from an order of the Ontario Securities Commission cease trading the company's offer for Sears Canada. Sears Holdings also disclosed that its offer for shares of Sears Canada will be extended until 5:00 p.m. (Eastern Standard Time) on Oct. 31, 2006. A formal notice of the extension of the offer will be mailed to Sears Canada shareholders. The offer has been extended, and may be further extended, to preserve Sears Holdings' rights under the offer pending the outcome of the appellate process. About Sears Holdings Corp. Hoffman Estates, Illinois-based Sears Holdings Corp. (NASDAQ: SHLD) -- http://www.searsholdings.com/-- is the nation's third largest broadline retailer, with approximately US$55 billion in annual revenues, and with approximately 3,800 full-line and specialty retail stores in the United States, Canada and Puerto Rico. Sears Holdings is a home appliance retailer as well as a retailer of tools, lawn and garden, home electronics, and automotive repair and maintenance. Key proprietary brands include Kenmore, Craftsman and DieHard, and a broad apparel offering, including well-known labels as Lands' End, Jaclyn Smith, and Joe Boxer, as well as the Apostrophe and Covington brands. * * * As reported in the Troubled Company Reporter on June 23, 2006, Standard & Poor's Ratings Services revised its outlook on Sears Holdings Corp. to stable from negative. All ratings, including the 'BB+' corporate credit rating, and the 'B-1' short-term rating for Sears Roebuck Acceptance Corp., are affirmed. As reported in the Troubled Company Reporter on Jun 22, 2006, Fitch affirms its ratings of Sears Holdings Corp. including its Issuer Default Rating (IDR) at 'BB'; Senior notes at 'BB'; and Secured bank facility at 'BBB-'. UNIVISION COMMS: Shareholders OK US$13.7B Purchase by Investors --------------------------------------------------------------- Shareholders of Univision Communications Inc. have approved its acquisition by an investor group including Madison Dearborn Partners, Providence Equity Partners, Texas Pacific Group, Thomas H. Lee Partners, and Saban Capital Group for US$36.25 per share in cash, or a total of approximately US$13.7 billion including the assumption of US$1.4 billion in debt. At a special meeting of Univision shareholders held Sept. 27, 2006, the merger agreement was approved by more than 80% of the shares that voted (with each share having only one vote), which constituted more than 60% of the outstanding shares. Completion of the transaction, which is expected in the Spring of 2007, remains subject to regulatory approvals and customary closing conditions. About Univision Headquartered in Los Angeles, Calif., Univision Communications Inc., -- http://www.univision.net/-- a Spanish-language broadcaster, owns and operates more than 60 television stations in the U.S. and Puerto Rico offering a variety of news, sports, and entertainment programming. The company had about US$1.4 billion in debt at March 31, 2006. * * * As reported in the Troubled Company Reporter on July 4, 2006, Standard & Poor's Ratings Services lowered its corporate credit and senior unsecured notes ratings on Univision Communications Inc. to 'BB-' from 'BBB-', based on the company's agreement in principle to a US$12.3 billion (excluding existing debt) LBO led by investor group Madison Dearborn Partners LLC. As reported in the Troubled Company Reporter on June 30, 2006, Fitch downgraded Univision Communications Inc.'s IDR and senior unsecured debt ratings to 'BB' from 'BBB-', and the ratings remain on Rating Watch Negative. ================================= T R I N I D A D & T O B A G O ================================= BRITISH WEST: Airline's Closure May Disperse Union -------------------------------------------------- Curtis John, the head of the Aviation Communication and Allied Workers' Union or ACAWU, told Newsday that the union could cease to exist once British West Indies Airlines shuts down. According to Newsday, Mr. John said that BWIA's closure could mean the end of ACAWU unless workers of Caribbean Airlines join. Caribbean Airlines will take the place of BWIA on Jan. 1, 2007. Meanwhile, Mr. John told Newsday that he hopes Caribbean Airlines will take in all BWIA workers capable of performing their respective duties. Newsday relates that Mr. John blamed certain persons in BWIA for the airline's closure. Mr. John told reporters, "Everybody knows what was the problem with BWIA and I am not afraid to say this." Newsday notes that Mr. John said he was not aware of the details of Caribbean Airlines. However, he said that if Caribbean Airlines would be managed the same way as BWIA, it may not succeed. "I don't believe in bringing down anything, so I hope to see the new airline succeed. However, government has gone the way of privatized operations. I think it should be service oriented," Newsday states, citing Mr. John. British West Indies aka 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. A number of key employees moved to other companies caused by a deadlock in the airline's negotiation with its labor union. The Trinidad & Tobago government, which owns 97.188% of BWIA, decided to shut down the airline on Dec. 31, 2006, and reopen a new airline that will be called Caribbean Airlines. The government approved a substantial capital injection for the creation of Caribbean Airlines. SUPERIOR ENERGY: Moody's Rates US$300M Sr. Unsec. Notes at B1 ------------------------------------------------------------- Moody's Investors Service affirmed SESI, L.L.C.'s ratings (Ba3 Corporate Family Rating and B1 rated US$300 million senior unsecured notes guaranteed by Superior Energy Services, Inc. (Superior)) and changed the rating outlook to negative from stable following Superior's announcement that it had signed a merger agreement to acquire Warrior Energy Services Corporation (Warrior) for US$175 million in cash and 5.3 million shares of common stock, with debt accounting for approximately 56% of the acquisition cost (based on the Sept. 22, 2006 closing price). The transaction, which is subject to regulatory approval and approval from Warrior's shareholders, is expected to close late in the fourth quarter of 2006. The negative outlook reflects the company's increasingly aggressive growth strategy, which could result in higher sustained financial leverage than recent historical levels and may require the greater flexibility of a lower debt rating. In addition, Moody's believes that the company's rapid growth strategy poses increasingly complex integration challenges and could result in significant capital requirements, which in combination with a potential sector softening in the latter half of 2007 and 2008 could negatively pressure the rating. The Warrior acquisition represents the company's second material transaction in the last five months and is expected to increase leverage to 2.0x Debt/EBITDA (as adjusted for Moody's standard adjustments) from 1.5x based on the last twelve months EBITDA ending June 30, 2006. Moreover, Moody's estimates that the acquisition represents a purchase price of approximately 9.4x last twelve months ending June 30, 2006 EBITDA and about a 84% premium to Warrior's closing price on Sept. 22, 2006, which Moody's considers high. Superior projects aggressive increases in Warrior's EBITDA for 2007 and 2008 as a result of Warrior's recent entry and expansion into coiled tubing, nitrogen pumping and fluid pumping; however, the company could be faced with a potential softening in demand for oilfield services in the later half of 2007 and 2008 as a result of lower commodity prices and new capacity additions. The Warrior acquisition follows Superior's purchase of a 40% interest in Coldren Resources, LP in May of this year. Coldren, in turn, entered into a purchase agreement to acquire Noble Energy's Gulf of Mexico shelf oil and gas properties for US$625 million, US$525 million of which was financed with non-recourse debt, which Moody's considers to be a very high purchase price of approximately US$23.15/boe of proved reserves. Superior does not plan to make any additional investments in Coldren besides the US$58 million that has been invested through July 14, 2006. The ratings affirmation reflects the use of common equity to fund a meaningful portion of the Warrior acquisition, the strategic benefits of the acquisition, including greater geographic diversification and an enhanced market position in cased hole wireline and snubbing, Warrior's production-related focus, and that the anticipated increase in leverage as a result of the transaction remains in a range appropriate for the Ba3 Corporate Family Rating. The ratings could face downward pressure if management is unable to maintain conservative operating and financial policies, including increasing its financial leverage to a range unable to withstand the company's business risk profile (debt/EBITDA, as adjusted, above 2.3x or in a downcycle, above 2.75x), growing its oil and gas operations to more than 25% of its EBITDA, increasing its business risk profile through drilling risk exposure, and funding material acquisitions without a substantial equity component. The outlook could stabilize if management is able to successfully integrate and grow the Warrior operations, manage capital spending within cash flow, and limit further material increases in financial leverage. Superior Energy Services, Inc., is headquartered in Harvey, Louisiana. The company has operations in the United States, Trinidad and Tobago, Australia, the United Kingdom, and Venezuela, among others. ============= U R U G U A Y ============= * URUGUAY: State Firm Opens Bids for Renewable Power Supply ----------------------------------------------------------- UTE, the state-run power firm of Uruguay, said in a statement that it has opened bids for the supply of 60 megawatts of renewable power, the company said in a statement. Business News Americas relates that the 60 megawatts includes 20 megawatts each of small hydroelectric projects, biomass and wind power. BNamericas notes that under a 20-year power purchase accord, each generator would be able to offer up to 10 megawatts of energy. The firms, says BNamericas, have to submit proposals for linking the power to the grid. The power will have to be priced before awarding the concession, BNamericas states. * * * On Sept 11, 2006, Fitch rated Uruguay's US$400 million issue of 5% inflation-indexed bonds payable in U.S. dollars and maturing Sept. 14, 2018 'B+'. ================= V E N E Z U E L A ================= CITGO PETROLEUM: Allows 7-Eleven Supply Contract to Expire ---------------------------------------------------------- Earlier this year and after many months of deliberation, CITGO Petroleum Corporation decided to allow its gasoline-supply contract with 7-Eleven to expire at the end of September 2006. This decision was disclosed last July. The 7-Eleven contract did not fit within CITGO's strategy to balance sales with refinery production after the sale of its interest in a Houston area refinery. "7-Eleven has been a valued customer for many years and we wish them the best," stated Alan Flagg, general manager light oils marketing. About Citgo Headquartered in Houston, Texas, CITGO Petroleum Corporation -- http://www.citgo.com/-- is owned by PDV America, an indirect, wholly owned subsidiary of Petroleos de Venezuela S.A., the state-owned oil company of Venezuela. PDVSA is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. * * * As reported at the Troubled Company Reporter on Feb. 16, 2006, Standard and Poor's Ratings Services assigned a 'BB' rating on CITGO Petroleum Corp. Citgo carries Fitch's BB- Issuer Default Rating. Fitch also rates the Company's US$1.15 billion senior secured revolving credit facility maturing in 2010 at 'BB+', its US$700 million secured term-loan B maturing in 2012 at 'BB+', and its senior secured notes at 'BB+'. PEABODY ENERGY: Moody's Assigns Loss-Given-Default Rating --------------------------------------------------------- In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the Metals & Mining sector, the rating agency confirmed its Ba1 Corporate Family Rating for Peabody Energy Corporation. Moody's also revised its probability-of-default ratings and assigned loss-given-default ratings on these loans facilities: Novelis Inc: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$1.8 billion Gtd. Sr. Unsec. Revolving Facility due 2011 Ba1 Ba1 LGD4 52% US$943 million Gtd. Sr. Unsec. Term Loan A due 2011 Ba1 Ba1 LGD4 52% US$650 million 6.875% Gtd. Sr. Unsec. Notes due 2013 Ba1 Ba1 LGD4 52% US$240 million 5.875% Gtd. Sr. Unsec. Notes due 2016 Ba1 Ba1 LGD4 52% Moody's explains that current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds. Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha- numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations. Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%). * VENEZUELA: Ends Orimulsion Production --------------------------------------- The Ministry of Energy and Petroleum officially disclosed that the production of Orimulsion is being eliminated. Orimulsion is a trade mark of an emulsion of extra-heavy crude oil with water, which served as fuel for electric power plants. This decision resulted from an exhaustive revision of the product by the Ministry of Energy and Petroleum, where it was concluded that Orimulsion is not the appropriate use for the Venezuelan extra- heavy crude oils. In fact, in the past, the profitability of Orimulsion was arbitrarily defended by qualifying the extra-heavy crude oil used for its production as 'natural bitumen', of a supposedly lower value. However, in December 2003, the Ministry of Energy and Petroleum determined that the existing reserves in the area assigned to Bitor, a subsidiary of Petroleos de Venezuela S.A., were of extra-heavy crude oils and, in consequence, the reserves were reclassified as such. Due to this same reason all references to bitumen were eliminated in the recent reform of the Organic Law of Hydrocarbons. Once it was clarified that the raw material was the same, it was also established that the improvement of the extra-heavy crude oils, including mixtures of extra-heavy crude oils with lighter crude oils, increases more the value of the natural resource than transforming it in Orimulsion. This is the reason why Bitor already closed its Orimulsion plant in Morichal and has been terminating all existing supply agreements. Likewise, the Sinovensa Association, the association between China and Venezuela through their state oil companies, China National Petroleum Corporation and Petroleos de Venezuela, will stop producing Orimulsion on December 31 of this year. This Association will be restructured as a joint venture within the framework of the Organic Law of Hydrocarbons, in order to produce mixtures of the extra-heavy crude oils with lighter crude oils and to improve them as soon as the corresponding capacities are available. * * * Venezuela's foreign currency long-term debt is rated B1 by Moody's, B+ by Standard & Poor's, and BB- by Fitch. * VENEZUELA: Puts Up US$500M Fund to Back Projects with Russia -------------------------------------------------------------- The Venezuelan government will establish a back up fund for US$500 million to support projects from the 18 agreements it inked with Russia, El Universal reports. "Based on this, you, businesspersons, will have most of the funding secured, as discussed with Russian President Vladimir Putin," Venezuela President Hugo Chavez was quoted by the Caracas daily as saying. The president added that the two countries will go beyond ongoing gas, oil and mining projects that have being implemented for some years. The two nations' cooperation will include agricultural machinery, dairy farms, truck manufacturing plants, and a compound to produce aluminum and seamless pipes, among others, El Universal relates. * * * Venezuela's foreign currency long-term debt is rated B1 by Moody's, B+ by Standard & Poor's, and BB- by Fitch. *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Stella Mae Hechanova, and Christian Toledo, Editors. Copyright 2006. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629- 3300. * * * End of Transmission * * *