/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/061010.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 Tuesday, October 10, 2006, Vol. 7, Issue 201 Headlines A R G E N T I N A ATMOSFERICOS LA: Deadline for Claims Verification Is on Nov. 10 BANCO DE GALICIA: Evaluadora Puts D Ratings on US$12.4MM Notes BIOCROM SA: Seeks for Court Approval to Reorganize Business BONGOSCAR SA: Asks for Court Approval to Restructure Debts DROGUERIA PREFARM: Enters Bankruptcy on Court Orders FRIGORIFICO DOINA: Trustee Verifies Proofs Claims Until Nov. 27 HEBOS SA: Deadline for Verification of Proofs of Claim Is Dec. 7 IRSA: Issuing US$200 Million Obligaciones Negociables MARTA HARFF: Claims Verification Deadline Is Set for Nov. 24 PLASTIMIL SRL: Verification of Proofs of Claim Is Until Nov. 27 SANCOR COOP: S&P Assigns D Ratings on US$94.8-Million Notes TECNOSER SRL: Deadline for Verification of Claims Is on Nov. 13 UNION RECIBIDORES: Last Day for Claims Verification Is on Nov. 3 B A H A M A S COMPLETE RETREATS: Preferred Retreats Files Schedules COMPLETE RETREATS: Wants to Conduct Rule 2004 Exam on 8 Parties WINN-DIXIE: Posts US$361.3 Mil. Net Loss for Year Ended June 28 WINN-DIXIE: Court Okays Assumption of 62 Pacts with IBM Entities B A R B A D O S DIGICEL: Secures Telecommunications Contract from PGA Tours B E L I Z E * BELIZE: City Council Secures US$3-Million Loan from Scotiabank B E R M U D A BERMUDA COMMERCIAL: Fitch Downgrades Individual Rating to C B O L I V I A PETROLEO BRASILEIRO: Reaches Interim Gas Price Pact with Bolivia * BOLIVIA: Raises Contract Price for Natural Gas by 2.1% B R A Z I L AGCO CORP: Reduces Outlook for 2006 Net Sales & Adjusted EPS AMERICAN AXLE: Attrition Program Cues S&P to Affirm BB Rating BANCO BRADESCO: To Increase Capital Stock by BRL1.2 Billion BANCO NACIONAL: Grants US$200-Million Loan to Daimler Chrysler BANCO NACIONAL: Increases Number of Third Quarter 2005 Loans BROWN SHOE: Reports US$15.1M Net Income in Quarter Ended July 29 GOL LINHAS: Reports Traffic Statistics for September 2006 PETROLEO BRASILEIRO: Unit Raises US$500MM in Global Notes PETROLEO BRASILEIRO: LatAm's Second Most Sustainable Company SPANSION: Moody's Affirms B3 Corporate Family Rating C A Y M A N I S L A N D S AMERICAN MASTERS: Last Day for Proofs of Claim Filing Is Nov. 2 BEA LTD: Creditors Have Until Nov. 2 to File Proofs of Claim BLANCHFLOWER INVESTMENTS: Proofs of Claim Filing Is Until Nov. 2 BRE/SATELLITE I: Creditors Must File Proofs of Claim by Nov. 2 BRE/SATELLITE II: Proofs of Claim Must be Submitted by Nov. 2 BRE/SATELLITE III: Proofs of Claim Filing Is Until Nov. 2 BRE/SATELLITE IV: Last Day to File Proofs of Claim Is on Nov. 2 CT FIXED: Deadline for Proofs of Claim Filing Is on Nov. 2 KOFOO INC: Proofs of Claim Filing Deadline Is Set for Nov. 2 MERRILL LYNCH QA: Filing of Proofs of Claim Is Until Nov. 2 C O L O M B I A ARMSTRONG WORLD: Bankruptcy Exit Prompts S&P to Raise Ratings BANCOLOMBIA: Denies Sale Rumors BANCOLOMBIA: Sold COP580 Bil. Mortgage Loans to Titularizadora BBVA COLOMBIA: Issues COP75 Bil. Subordinated Bonds on Oct. 9 ECOPETROL: Setting Up Joint Venture with Glencore by End of Oct. C O S T A R I C A SAMSONITE CORP: July 31 Balance Sheet Upside-Down by US$45.1M * COSTA RICA: Experts Urges Real Estate Investment in Nation D O M I N I C A N R E P U B L I C AES DOMINICANA: Itabo Unit Places US$125 Million Corporate Bonds BANCO INTERCONTINENTAL: Alvarez Renta Has 30 Bank Accounts BANCO INTERCONTINENTAL: Planned Sector Probe Won't Affect Case E C U A D O R PETROECUADOR: 19 Firms Present Proposal for Amazonian Oil Fields J A M A I C A NATIONAL WATER: Parish Council Blames Firm on Water Problems M E X I C O COREL CORP: Moody's Assigns Loss-Given-Default Rating EPICOR SOFTWARE: Moody's Assigns Loss-Given-Default Rating GENERAL MOTORS: Kerkorian Backs Out of Share Purchase Plan GENERAL MOTORS: Jerome York Resigns from Board of Directors GERDAU SA: Denies Purchase Talks with Sicartsa LG.PHILIPS: Court Approves Pepper Hamilton as Special Counsel PETROLEO BRASILEIRO: Asserts Interest in Producing Oil in Mexico SATELITES MEXICANOS: Can Hire Ordinary Course Professionals STEELCASE INC: Declares US$0.12 Per Share Cash Dividend TV AZTECA: Telemundo Counters Firm's Charges in US Federal Court TV AZTECA: Won't Withdraw Suit to Shut Down Quinceanera Show N I C A R A G U A PETROLEOS DE VENEZEULA: Sends Discounted Fuel to Nicaragua P A N A M A CHIQUITA BRANDS: Gets Waiver from Lenders on Sr. Credit Facility P U E R T O R I C O BURGER KING: Repays Additional US$35 Million in Debt ELBA RODRIGUEZ: Case Summary & Seven Largest Unsecured Creditors OCA INC: Iowa Unit Files Schedules of Assets & Liabilities V E N E Z U E L A PEABODY ENERGY: Moody's Rates US$900 Million Senior Notes at Ba1 PETROLEOS DE VENEZUELA: Halts Gasoline Export to Cuba & the U.S. * LatinFinance Ranks LatAm Countries According to Sustainability * BOND PRICING: For the week of October 2 -- October 6, 2006 - - - - - ================= A R G E N T I N A ================= ATMOSFERICOS LA: Deadline for Claims Verification Is on Nov. 10 --------------------------------------------------------------- Jorge Raul Lopez Aranguren, the court-appointed trustee for Atmosfericos La Nueva S.A.'s insolvency case, will verify creditors' proofs of claim until Nov. 10, 2006. Mr. Aranguren will present the validated claims in court as individual reports on Dec. 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 Atmosfericos La Nueva 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 Atmosfericos La Nueva's accounting and banking records will follow on March 14, 2007. Atmosfericos La Nueva will negotiate a settlement plan with its creditors in order to avoid a straight liquidation. The debtor can be reached at: Atmosfericos La Nueva S.A. Calle 48 Numero 857, La Plata Buenos Aires, Argentina The trustee can be reached at: Jorge Raul Lopez Aranguren Calle 12 Numero 718, La Plata Buenos Aires, Argentina BANCO DE GALICIA: Evaluadora Puts D Ratings on US$12.4MM Notes -------------------------------------------------------------- Evaluadora Latinoamericana assigned D ratings on Banco de Galicia y Buenos Aires' debts: -- Obligaciones Negociables simples for US$11,600,000, included under the US$200,000,000 program -- Obligaciones Negociables for US$888,000 (originally for US$12,000,000) The rating action was done based on the company's balance sheet at June 30, 2006. BIOCROM SA: Seeks for Court Approval to Reorganize Business ----------------------------------------------------------- Court No. 17 in Buenos Aires is studying the merits of Biocrom S.A.'s petition to reorganize its business after it stopped paying its obligations on June 10, 2006. The petition, once approved by the court, will allow Biocrom to negotiate a settlement with its creditors in order to avoid a straight liquidation. Clerk No. 34 assists the court in the case. The debtor can be reached at: Biocrom S.A. Luis Viale 963 Buenos Aires, Argentina BONGOSCAR SA: Asks for Court Approval to Restructure Debts ---------------------------------------------------------- Court No. 9 in Buenos Aires is studying the merits of Bongoscar S.A.'s petition to restructure its debts after it stopped paying its obligations on May 17, 2006. The petition, once approved by the court, will allow Bongoscar to negotiate a settlement with its creditors in order to avoid a straight liquidation. Clerk No. 17 assists the court in the case. The debtor can be reached at: Bongoscar S.A. Carlos Encina 633 Buenos Aires, Argentina DROGUERIA PREFARM: Enters Bankruptcy on Court Orders ---------------------------------------------------- Drogueria Prefarm S.A. enters bankruptcy protection after a court in Buenos Aires ordered the company's liquidation. The order transfers control of the company's assets to a court- appointed trustee who will supervise the proceedings. Under Argentine bankruptcy law, the trustee will: -- verify creditors' proofs of claim; -- prepare and present individual and general reports in court after the claims are verified; and -- administer Drogueria Prefarm's assets under court supervision and take part in their disposal to the extent established by law. After the verification phase, the court will determine if the validated claims are admissible, taking into account the trustee's opinion and the challenges and objections raised by Drogueria Prefarm and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. The debtor can be reached at: Drogueria Prefarm S.A. Dorrego 1940 Buenos Aires, Argentina FRIGORIFICO DOINA: Trustee Verifies Proofs Claims Until Nov. 27 --------------------------------------------------------------- Estudio Susana L. Prisant y Asociados, the court-appointed trustee for Frigorifico Doina S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until Nov. 27, 2006. Estudio Susana will present the validated claims in court as individual reports on Feb. 12, 2007. 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 Frigorifico Doina 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 Frigorifico Doina's accounting and banking records will follow on March 26, 2007. Esudio Susana is also in charge of administering Frigorifico Doina's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Frigorificao Doina S.A. Viamonte 367 Buenos Aires, Argentina The trustee can be reached at: Estudio Susana L. Prisant y Asociados Hipolito Yrigoyen 1349 Buenos Aires, Argentina HEBOS SA: Deadline for Verification of Proofs of Claim Is Dec. 7 ---------------------------------------------------------------- Estudio Rego-Saavedra, the court-appointed trustee for Hebos S.A.'s reorganization proceeding, will verify creditors' proofs of claim until Dec. 7, 2006. Under the Argentine bankruptcy law, Estudio Rego-Saavedra is required to present the validated claims in court as individual reports. Court No. 15 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 Hebos and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Estudio Rego-Saavedra will also submit a general report that contains an audit of Hebos' accounting and banking records. The report submission dates have not been disclosed. On Sept. 18, 2007, Hebos' creditors will vote on a settlement plan that the company will lay on the table. Clerk No. 29 assists the court in the proceeding. The debtor can be reached at: Hebos S.A. Callao 420 Buenos Aires, Argentina The trustee can be reached at: Estudio Rego-Saavedra Uruguay 660 Buenos Aires, Argentina IRSA: Issuing US$200 Million Obligaciones Negociables ----------------------------------------------------- IRSA aka Inversiones y Representaciones Sociedad Anonima will be issuing Obligaciones Negociables for up to US$200 million. The directors of the company have called for a general assembly on Oct. 31 to discuss the issuance. The notes will be simple, not convertible into shares and with or without guarantee for third ones. The maximum amount in circulation at any stage of the program would be up to US$300,000,000 or its equivalent in any other currency. Created in 1943, Inversiones y Representaciones S.A. aka IRSA is a leading company with activities in the business of offices, commercial centers and hotels. It is the only company in the industry whose shares are listed on the Bolsa de Comercio de Buenos Aires and The New York Stock Exchange. Through its subsidiaries, IRSA manages an expanding top portfolio of shopping centers and office buildings, primarily in Buenos Aires. The company also develops residential subdivisions and apartments (specializing in high-rises and loft- style conversions) and owns three luxury hotels. Additionally, IRSA owns a 11.8% stake in Banco Hipotecario, Argentina's largest mortgage supplier in the country which shareholder's equity amounted to ARS2,247.6 million. * * * Moody's assigned these ratings on IRSA on July 30, 2001: -- local currency issuer rating: B3; and -- foreign currency issuer rating: Caa1 MARTA HARFF: Claims Verification Deadline Is Set for Nov. 24 ------------------------------------------------------------ Estudio Debenedetti & Asociados, the court-appointed trustee for Marta Harff S.A.'s bankruptcy proceeding, will verify creditors' proofs of claim until Nov. 24, 2006. Estudio Debenedetti will present the validated claims in court as individual reports on Feb. 13, 2007. 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 Marta Harff 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 Marta Harff's accounting and banking records will follow on March 27, 2007. Estudio Debenedetti is also in charge of administering Marta Harff's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Marta Harff S.A. Peru 1646 Buenos Aires, Argentina The trustee can be reached at: Estudio Debenedetti & Asociados Rodriguez Pena 617 Buenos Aires, Argentina PLASTIMIL SRL: Verification of Proofs of Claim Is Until Nov. 27 --------------------------------------------------------------- Jorge Alberto Testa, the court-appointed trustee for Plastimil S.R.L.'s bankruptcy proceeding, will verify creditors' proofs of claim until Nov. 27, 2006. Under the Argentine bankruptcy law, Mr. Testa is required to present the validated claims in court as individual reports. 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 Plastimil and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Mr. Testa will also submit a general report that contains an audit of Plastimil's accounting and banking records. The report submission dates have not been disclosed. The debtor can be reached at: Plastimil S.R.L. Rondeau 2570 Buenos Aires, Argentina The trustee can be reached at: Jorge Alberto Testa Maipu 459 Buenos Aires, Argentina SANCOR COOP: S&P Assigns D Ratings on US$94.8-Million Notes ----------------------------------------------------------- Standard & Poor's ratings services assigned these ratings to SanCor Coop: -- Obligaciones Negociables Serie 2, for US$19,000,000, issued under the Obligaciones Negociables program for up to US$300,000,000 * Last due: Jan. 27, 2004 * Rate: D -- Obligaciones Negociables Serie 3 for US$75,800,000, included under the emission for up to US$300,000,000 * Last due: Jan. 27, 2004 * Rate: D The rating action was based on the company's financial status at June 30, 2006. Headquartered in Sunchales, Santa Fe, Argentina, SanCor is comprised of 63 active co-ops in the dairy milk industry, located throughout the territory of the provinces of Santa Fe, Cordoba and Buenos Aires. Sancor is one of the largest milk processors and marketers in Argentina, with a strong market share, very well known brand names, and a wide presence in the retail channel. TECNOSER SRL: Deadline for Verification of Claims Is on Nov. 13 --------------------------------------------------------------- Claudio Jorge Haimovici, the court-appointed trustee for Tecnoser S.R.L.'s bankruptcy proceeding, will verify creditors' proofs of claim until Nov. 13, 2006. Mr. Haimovici will present the validated claims in court as individual reports on Nov. 26, 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 Tecnoser 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 Tecnoser's accounting and banking records will follow on March 9, 2007. The trustee can be reached at: Claudio Jorge Haimovici Sarmiento 3843 Buenos Aires, Argentina UNION RECIBIDORES: Last Day for Claims Verification Is on Nov. 3 ---------------------------------------------------------------- Jose Luis Abuchdid, the court-appointed trustee for Union Recibidores de Granos y Anexos de la Republica Argentina's reorganization proceeding, will verify creditors' proofs of claim until Nov. 3, 2006. Mr. Abuchdid will present the validated claims in court as individual reports on Dec. 18, 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 Union Recibidores 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 Union Recibidores' accounting and banking records will follow on March 2, 2007. On Aug. 24, 2007, Union Recibidores' creditors will vote on a settlement plan that the company will lay on the table. The trustee can be reached at: Jose Abuchdid Avenida de los Incas 3624 Buenos Aires, Argentina ============= B A H A M A S ============= COMPLETE RETREATS: Preferred Retreats Files Schedules ----------------------------------------------------- A. Real Property - B. Personal Property B.1 Cash On Hand Petty cash US$1,628 B.2 Bank Accounts Bank of America Certificate of deposit 311,426 Acct# 003472506126 77,301 Acct# 003472506090 1,200 Acct# 003472506537 - B.3 Security Deposits 509,406 B.5 Collectibles Art 99,084 B.9 Interests in Insurance Policies unknown B.13 Stocks and Interests in Businesses unknown 100% interests in: Preferred Brokerage, LLC P180, LLC Preferred Europe, Ltd. Preferred Retreats Design Group, LLC Preferred Retreats Travel Company, LLC T&H Villas Preferred Aviation, LLC Town Clubs, LLC B.16 Accounts Receivable Town Clubs, LLC 2,997,826 Trade 576,819 Concierge Villas, LLC 425,578 Preferred Brokerage, LLC 349,794 Private Retreats, LLC 110,999 Thinc Beyond 78,621 Resort Options 70,432 Complete Retreats, LLC 1,750 B.25 Vehicles Autos 24,687 Golf carts 42,352 B.27 Aircraft and accessories 1/4 share of an Avanti P-180 1,256,308 B.28 Office Equipment Computer equipment 690,442 Furniture & fixtures 1,745,255 Computer software 710,912 B.30 Inventory Bedding, linens and robes 981,539 Consumables 146,412 China 146,101 Kitchen appliances 93,796 Household items 411,060 Art and decorations 66,197 Electronics 34,611 Landscaping 6,439 Kitchen package 62,170 Silver 6,104 Glass 11,186 Others 43,750 B.35 Other Personal Property Rents 1,994,046 Insurance 348,236 HOA Dues 187,034 A&K Tours 51,550 Promotions 378,734 Air 136,985 Annual dues 72,530 Property management fees 29,666 Legal 430,000 Airline miles 217,837 Sentient 85,545 Innkeeper 45,679 Golf 7,858 Ski and fitness passes 13,553 Fixed assets 675,812 Member reservations deposits 1,118,204 Leasehold improvements 536,575 Acquisitions in progress 65,033 Investment - Blue Sea Properties 1,629,098 Capitalized RE development costs 107,183 Outside Club memberships 115,870 Others 59,473 TOTAL SCHEDULED ASSETS [US$20,397,686] C. Property Claimed as Exempt - D. Secured Claim The Patriot Group, LLC - Darien, CT US$25,535,584 E. Unsecured Priority Claims Blaine County Treasurer & Tax Collector 6,445 Clark County Treasurer 5,828 Collier County Tax Collector 87 Kauai County Real Property Tax Collector 287 County of Maui 391 Eagle County Office of the Assessor 87 Eagle County Treasurer 2,932 Idaho State Tax Commission 21 Placer County Tax Collector 267 Routt County Treasurer 2,948 San Miguel County Treasurer 424 San Pedro Town Council 1,148 Town of Stowe 644 Town of Westport Tax Collector 148 Vermont Department of Taxes 434 F. Unsecured Non-priority Claims Aberkrombie & Kent, Inc. 766,356 Arizona Commercial Printing 176,849 Avantair 214,148 Concierage Villas 294,522 Deer Valley Lodging 263,058 Distinctive Retreats II, LLC 1,163,518 Distinctive Retreats, LLC 79,698,806 Elevation Vacations, LLC 236,039 Fontainebleau Resorts 209,055 Higgs & Johnson 193,090 Intagio 656,004 Katalina Group 166,418 Legendary Retreats 6,360,622 National Carribean Insurance Co. 179,489 Piper Rudnick Gray Cary 448,203 Piper Rudnick LLP 186,098 Private Retreats, LLC 23,114,031 TMC Luxury Charters, LLC 396,668 Towne Clubs 605,274 Others 6,480,847 TOTAL SCHEDULED LIABILITIES [US$147,366,770] Complete Retreats, LLC, Preferred Retreats, LLC, and their subsidiaries were founded in 1998. Owned by Robert McGrath and four minority owners, the companies operate a five-star hospitality and real estate management business and are a pioneer and market leader of the "destination club" industry. Under the trade name "Tanner & Haley Resorts," Complete Retreats, et al.'s destination clubs have numerous individual and company members. Destination club members pay up-front membership deposits, annual dues, and daily usage fees. In return, members and their guests enjoy the use of first-class private residences, and receive an array of luxurious services and amenities in certain exotic vacation destinations in the United States and locations around the world, including: Abaco, Bahamas; Cabo San Lucas, Mexico; Nevis, West Indies; Telluride, Colorado; and Jackson Hole, Wyoming. Complete Retreats and its debtor-affiliates filed for chapter 11 protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245 through 06-50306). Nicholas H. Mancuso, Esq., Jeffrey K. Daman, Esq., Joel H. Levitin, Esq., David C. McGrail, Esq., Richard A. Stieglitz Jr., Esq., at Dechert LLP, are representing the Debtors in their restructuring efforts. Xroads Solutions Group, LLC, is the Debtors financial and restructuring advisor. When the Debtors filed for chapter 11 protection, they listed total debts of US$308,000,000. COMPLETE RETREATS: Wants to Conduct Rule 2004 Exam on 8 Parties --------------------------------------------------------------- Complete Retreats LLC and its debtor-affiliates ask the United States Bankruptcy Court for the District of Connecticut for authority pursuant to Rule 2004 of the Federal Rules of Bankruptcy Procedure to examine eight individuals: Larry Andreini former equityholder William Elliot former equityholder Geoffrey Logue former equityholder Larry Langer current equityholder Tom Fulton current equityholder Lisa Nier-Coulson current equityholder Bill Randon former officer/employee Peter Falk former officer/employee The Debtors also ask the Court to direct the Deponents to produce certain documents. Specifically, the Debtors seek discovery on a number of topics including: -- the nature, ownership, use, sale, or other disposition of any property or other assets of the Debtors or any of their non-debtor affiliates; -- claims made by each Deponent to assets owned by the Debtors or any of their non-debtor affiliates; -- contracts and settlement agreements between each Deponent and the Debtors; -- income, bonuses, compensation, or transfers of any kind and for any purpose received or derived by each Deponent from any or all of the Debtors; and -- information concerning financing, lawsuits, the Debtors' financial condition, and others. According to the Debtors, it is necessary to conduct formal discovery at this time to fulfill their responsibilities and to timely complete their investigation, including with respect to the potential recovery of assets for the benefit of their estates. About Complete Retreats Complete Retreats, LLC, Preferred Retreats, LLC, and their subsidiaries were founded in 1998. Owned by Robert McGrath and four minority owners, the companies operate a five-star hospitality and real estate management business and are a pioneer and market leader of the "destination club" industry. Under the trade name "Tanner & Haley Resorts," Complete Retreats, et al.'s destination clubs have numerous individual and company members. Destination club members pay up-front membership deposits, annual dues, and daily usage fees. In return, members and their guests enjoy the use of first-class private residences, and receive an array of luxurious services and amenities in certain exotic vacation destinations in the United States and locations around the world, including: Abaco, Bahamas; Cabo San Lucas, Mexico; Nevis, West Indies; Telluride, Colorado; and Jackson Hole, Wyoming. Complete Retreats and its debtor-affiliates filed for chapter 11 protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245 through 06-50306). Nicholas H. Mancuso, Esq., Jeffrey K. Daman, Esq., Joel H. Levitin, Esq., David C. McGrail, Esq., Richard A. Stieglitz Jr., Esq., at Dechert LLP, are representing the Debtors in their restructuring efforts. Xroads Solutions Group, LLC, is the Debtors financial and restructuring advisor. When the Debtors filed for chapter 11 protection, they listed total debts of US$308,000,000. WINN-DIXIE: Posts US$361.3 Mil. Net Loss for Year Ended June 28 --------------------------------------------------------------- Winn-Dixie Stores, Inc., and its debtor-affiliates reported net sales of US$7,193,853,000 for the fiscal year ended June 28, 2006. This is a 2.7% increase over net sales for the fiscal year ended June 29, 2005. According to Winn-Dixie's Form 10-K filed with the U.S. Securities and Exchange Commission, in fiscal 2006 identical store sales increased 5.9% as compared to fiscal 2005, which is an improvement over the prior year negative identical store sales trends. The company disclosed that its gross margin decreased by 20 basis points for fiscal 2006 as compared to fiscal 2005, resulting primarily from more aggressive pricing and promotional programs and increased warehouse and delivery costs, partially offset by improved shrink results. Winn-Dixie's cash on hand and liquidity have improved since the beginning of the fiscal year, primarily as a result of asset sales and inventory liquidations, which were partially offset by operating losses, according to Peter L. Lynch, Winn-Dixie president and chief executive officer. As of June 28, 2006, Winn-Dixie had US$312,000,000 of available liquidity, comprised of US$147,600,000 of borrowing availability under the DIP Credit Facility and US$164,400,000 of certain cash equivalents. The company had no outstanding borrowings on its revolving loan and has US$40,000,000 outstanding on its fixed term loan. Winn-Dixie believes it has sufficient liquidity through borrowing availability, available cash, trade credit and cash flows from operating activities to fund its cash requirements for existing operations and limited capital expenditures through the effective date of a plan of reorganization, which is expected to occur as soon as late October 2006. "We expect that identical sales in fiscal 2007 will be positive, but anticipate the growth to be smaller than the 5.9% increase experienced in 2006. We anticipate our fiscal 2007 other operating and administrative expenses as a percentage of sales to remain flat as compared to fiscal 2006," Mr. Lynch says. According to Mr. Lynch, the company anticipates additional improvement in sales related to improved in-store execution and customer service, the introduction of additional merchandising initiatives, and brand marketing initiatives. The majority of store remodeling activity is not anticipated to begin until the second half of fiscal 2007 and thus is not expected to result in substantial sales increases in fiscal 2007. Winn-Dixie has no plans to open new stores in fiscal 2007 other than two stores closed due to Hurricane Katrina that are scheduled to reopen. Because of its Chapter 11 filing, Winn-Dixie does not expect to hold an annual meeting of shareholders in 2006. Winn-Dixie Stores, Inc. and Subsidiaries Consolidated Balance Sheets At June 28, 2006 (In thousands) Assets Current assets: Cash and cash equivalents US$187,543 Marketable securities 14,308 Trade and other receivables, net 152,237 Insurance claims receivable 46,162 Income tax receivable 40,427 Merchandise inventories, net 477,885 Prepaid expenses and other current assets 35,653 Assets held for sale 44,710 ---------- Total current assets 998,925 Property, plant and equipment, net 496,830 Other assets, net 99,220 ---------- TOTAL ASSETS US$1,594,975 ========== Liabilities And Shareholders' (Deficit) Equity Current liabilities: Current borrowings under DIP Credit Facility US$40,000 Current portion of long-term debt 232 Current obligations under capital leases 3,617 Accounts payable 229,951 Reserve for self-insurance liabilities 74,905 Accrued wages and salaries 80,495 Accrued rent 43,942 Accrued expenses 95,107 Liabilities related to assets held for sale 9,206 ---------- Total current liabilities 577,455 Reserve for self-insurance liabilities 151,131 Long-term debt 164 Long-term borrowings under DIP Credit Facility - Obligations under capital leases 5,369 Other liabilities 24,990 ---------- Total liabilities not subject to compromise 759,109 Liabilities subject to compromise 1,117,954 ---------- Total liabilities 1,877,063 Shareholders' (deficit) equity: Common stock US$1 par value 141,858 Additional paid-in-capital 34,874 Accumulated deficit (438,015) Accumulated other comprehensive loss (20,805) ---------- Total shareholders' (deficit) equity (282,088) ---------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY US$1,594,975 ========== Winn-Dixie Stores, Inc. and Subsidiaries Consolidated Statements of Operations Year ended June 28, 2006 (In thousands) Net sales US$7,193,853 Cost of sales 5,327,407 ---------- Gross profit on sales 1,866,446 Other operating and administrative expenses 2,008,449 Impairment charges 15,601 Restructuring (gain) charge, net (7,699) ---------- Operating loss (149,905) Interest expense, net 11,968 ---------- Loss before reorganization items and income taxes (161,873) Reorganization items, net gain (251,180) Income tax (benefit) expense (9,621) ---------- Net earnings from continuing operations 98,928 Discontinued operations: Loss from discontinued operations (142,966) Loss on disposal of discontinued operations (320,846) Income tax benefit - ---------- Net loss from discontinued operations (463,812) ---------- Cumulative effect of changes in accounting principle (3,583) ---------- Net loss (US$361,301) ========== Winn-Dixie Stores, Inc. and Subsidiaries Consolidated Statements of Cash Flows Year ended June 28, 2006 (In thousands) Cash flows from operating activities: Net loss (US$361,301) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: (Gain) loss on sales of assets, net (112,748) Reorganization items, net gain (251,180) Depreciation and amortization 111,336 Impairment charges 23,292 Deferred income taxes - Stock compensation plans 2,391 Change in operating assets and liabilities: Trade, insurance and other receivables 20,875 Merchandise inventories 307,602 Prepaid expenses and other current assets 37,637 Accounts payable 61,274 Reserve for self-insurance liabilities 6,027 Lease liability on closed facilities 415,993 Income taxes payable/receivable (8,990) Defined benefit plan (13,501) Other accrued expenses 15,722 ---------- Net cash (used in) provided by operating activities before reorganization items 254,429 Cash effect of reorganization items (55,027) ---------- Net cash provided by (used in) operating activities 199,402 Cash flows from investing activities: Purchases of property, plant and equipment (30,538) Decrease in investments and other asset 6,592 Sales of assets 167,630 Purchases of marketable securities (9,120) Sales of marketable securities 14,158 Other 683 ---------- Net cash provided by (used in) investing activities 149,405 Cash flows from financing activities: Gross borrowings on DIP Credit Facility 698,542 Gross payments on DIP Credit Facility (903,545) Gross borrowings on revolving credit facility - Gross payments on revolving credit facility - Principal payments on long-term debt (194) Debt issuance costs (721) Principal payments on capital lease obligations (1,610) Dividends paid - Swap termination receipts/payments, net - Other 858 ---------- Net cash (used in) provided by financing activities (206,670) Increase (decrease) in cash and cash equivalents 142,137 Cash and cash equivalents classified as assets held for sale (16,735) Cash and cash equivalents at beginning of year 62,141 ---------- Cash and cash equivalents at end of year US$187,543 ========== The Form 10-K filed by Winn-Dixie with the SEC is available free of charge at http://ResearchArchives.com/t/s?1305 Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc. -- http://www.winn-dixie.com/-- is one of the nation's largest food retailers. The Company operates 527 stores in Florida, Alabama, Louisiana, Georgia, and Mississippi. The Company, along with 23 of its U.S. subsidiaries, filed for chapter 11 protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063, transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos. 05-03817 through 05-03840). D.J. Baker, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders, Esq., and Brian C. Walsh, Esq., at King & Spalding LLP, represent the Debtors in their restructuring efforts. Paul P. Huffard at The Blackstone Group, LP, gives financial advisory services to the Debtors. Dennis F. Dunne, Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B. Macdonald, Esq., at Akerman Senterfitt give legal advice to the Official Committee of Unsecured Creditors. Houlihan Lokey & Zukin Capital gives financial advisory services to the Committee. When the Debtors filed for protection from their creditors, they listed US$2,235,557,000 in total assets and US$1,870,785,000 in total debts. (Winn-Dixie Bankruptcy News, Issue No. 54; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). WINN-DIXIE: Court Okays Assumption of 62 Pacts with IBM Entities ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida authorized Winn-Dixie Stores, Inc., and its debtor-affiliates to assume 62 leases and contracts with IBM Corp., IBM Credit LLC, and Ascential Software Corp. As reported in the Troubled Company Reporter on Sept. 5, 2006, the Debtors lease computer hardware and obtain various software, maintenance, and support services vital to their information technology needs from the IBM Entities. According to Cynthia C. Jackson, Esq., at Smith Hulsey & Busey, in Jacksonville, Florida, the Debtors have negotiated with the IBM Entities as to the terms of the assumption of the Leases and Contracts. The parties agreed that: (1) The Debtors will move to assume the Leases and Contracts under Section 365 of the Bankruptcy Code; (2) If they have not done so, the Debtors will return to the IBM Entities 26 leased servers used in stores that have been closed by the Debtors. Any of the Leases and Contracts that separately govern the returned servers will be terminated by agreement of the parties. IBM Credit will be granted an unsecured claim for US$66,883 on account of the servers; (3) Claim No. 13235 asserted by IBM Corp. for US$2,535,561 against the Debtors for non-payment of prepetition sums due under the Leases and Contracts will be allowed, while Claim No. 2058, asserting US$2,279,605, will be disallowed; (4) Claim No. 13245 filed by IBM Credit for US$1,659,098 will be deemed amended to include the US$66,883 account for the servers, and will be allowed in the increased amount of US$1,725,981. Claim No. 4215, asserting US$14,052,843, will be disallowed; (5) Claim No. 9926 filed by Ascential for US$131,052 will be allowed in its Court-reduced amount of US$48,158; (6) The Debtors will pay any delinquent postpetition amounts owed under the Leases and Contracts to the IBM Entities, as applicable, within 10 days following approval of the assumption; (7) The IBM Entities will facilitate assumption of the Leases and Contracts by agreeing that: (a) the Debtors will not be required to pay the prepetition claims as cure under Section 365(b)(1)(A) of the Bankruptcy Code; (b) the requirements of Section 365 as they relate to any prepetition defaults will be waived in full by the IBM Entities; (c) the prepetition claims will not have administrative expense status as a result of the assumption of the Leases and Contracts or for any other purpose; and (d) the prepetition claims will retain the status of prepetition unsecured non-priority claims; and (8) The waiver of cure payments will not negate the impact of assumption on any claims held by the Debtors against the IBM Entities. To avoid doubt, upon assumption of the Lease and Contracts, the Debtors will waive all rights they may otherwise have to preference claims or other claims or rights under Sections 544, 545, 547, 548 or 553 of the Bankruptcy Code against the IBM Entities. Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc. -- http://www.winn-dixie.com/-- is one of the nation's largest food retailers. The Company operates 527 stores in Florida, Alabama, Louisiana, Georgia, and Mississippi. The Company, along with 23 of its U.S. subsidiaries, filed for chapter 11 protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063, transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos. 05-03817 through 05-03840). D.J. Baker, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders, Esq., and Brian C. Walsh, Esq., at King & Spalding LLP, represent the Debtors in their restructuring efforts. Paul P. Huffard at The Blackstone Group, LP, gives financial advisory services to the Debtors. Dennis F. Dunne, Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B. Macdonald, Esq., at Akerman Senterfitt give legal advice to the Official Committee of Unsecured Creditors. Houlihan Lokey & Zukin Capital gives financial advisory services to the Committee. When the Debtors filed for protection from their creditors, they listed US$2,235,557,000 in total assets and US$1,870,785,000 in total debts. (Winn-Dixie Bankruptcy News, Issue No. 53; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). =============== B A R B A D O S =============== DIGICEL: Secures Telecommunications Contract from PGA Tours ----------------------------------------------------------- The International Federation of PGA Tours has selected Digicel Ltd. to be its wireless communications provider for the prestigious World Golf Championships-Barbados World Cup, being held at the Sandy Lane Country Club from Dec. 5 to Dec. 10 and involving some of the globe's top golf stars. As a result of its partnership with Digicel, the 2006 PGA tour will be the first ever World Golf Championships event to employ all wireless technology, eliminating the traditional and costly requirement of trenching multimillion dollar golf courses for underground telecommunications cabling. Taking advantage of Digicel's advanced GSM and Fixed Wireless Broadband technologies, Barbados World Cup officials, administrators and media centers will be provided internet, voice, fax and data services. Digicel will also introduce its latest innovation, the Digicel GSM desk phone, which looks and functions like a standard fixed line phone, but carries a SIM card. The Digicel GSM desk phone also features powerful signal receptors ensuring reliable, crystal voice clarity. Errol McGlothan, Digicel Marketing Director for its Eastern Caribbean markets, says that being selected by a major international sporting event, such as the PGA, represents a historic milestone for the five-year old company and it is a tremendous honor to be recognized as a preferred provider. He believes that the selection is a strong endorsement of the quality and reliability of Digicel's cutting-edge technology and services. "The entire Digicel family is very excited about this opportunity, as it is the first wireless tournament for the World Golf Championships as well as the first time the tournament is being hosted in Barbados. We expect this to bring fantastic global exposure to this beautiful island and we are committed to providing the very best technology possible. We are working closely with the PGA and the Barbados Tourism Authority to ensure a very successful staging of the World Cup of Golf," said Mr. McGlothan. Digicel is providing all telecommunications services for the event, including hardware and software support for the wireless telecommunications. The company's personnel will also provide 24-hour technical and customer support for the entire duration of the tournament. According to Jack Warfield, Vice President of the World Golf Championships, the International Federation of PGA Tours is delighted to be breaking new ground in Barbados with Digicel in its first completely wireless telecommunications solution in the World Cup's 53-year history. "Cabling has traditionally been a time and resource-intensive part of our event build-out," said Mr. Warfield. "Digicel's network will eliminate a significant amount of preparation time, dislocation and expense and this is sure to be a win-win solution for both Digicel and the Tour." 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. =========== B E L I Z E =========== * BELIZE: City Council Secures US$3-Million Loan from Scotiabank ---------------------------------------------------------------- Zenaida Moya, the Belize City mayor, told The Reporter that Scotiabank has lent the City Council US$3 million to be used as emergency funds. The Reporter underscores that the City Council described the accord with Scotiabank as an overdraft facility, valid for three years. Mayor Moya told The Reporter that the credit facility puts the City Council in a position where it can fund its recurrent operational expenses and meet payments on some debts. The credit facility provides the best option for the City Council, which was faced with a US$9 million debt acquired from the previous City Council. The 15% interest rate on the loan will only apply to money used from the US$3 million, The Reporter notes, citing Mayor Moya. According to The Reporter, Mayor Moya said that the credit facility is similar to a bank overdraft. The money won't be used up immediately for any particular propose. The money will be deposited in the bank until a portion of it is needed for City Council business. The Council then repays only the used portion. If the facility is not used then there is no interest to repay. The Reporter relates that City Council hopes to pay back money used through revenue collections as well as a pending renewal on its sanitation contracts with Belize Maintenance Ltd. and Sanitation Enterprise Ltd. The report says that Manuel Esquivel -- the former prime minister of Belize -- and Nestor Vasquez, a veteran accountant assisted with the loan negotiation. Messrs. Esquivel and Vasquez, who are also members of a finance committee at the City Hall, told The Reporter that Scotiabank ratified the loan after examining the City Council's financial books. Scotiabank expressed confidence that the new council's financial management is on target, The Reporter states, citing Messrs. Esquivel and Vasquez. * * * Moody's Investor Service assigned these ratings to Belize: -- CC LT Foreign Bank Depst Caa3 -- CC LT Foreign Curr Debt Caa3 -- CC ST Foreign Bank Depst NP -- CC ST Foreign Curr Debt NP -- LC Curr Issuer Rating Caa3 -- FC Curr Issuer Rating Caa3 -- Foreign Currency LT Debt Caa3 -- Local Currency LT Debt Caa3 * * * As reported in the Troubled Company Reporter-Latin America on Aug. 8, 2006, Standard & Poor's lowered its long-term foreign currency sovereign credit rating on Belize to 'CC' from 'CCC-' while leaving its outlook on the rating at negative. Standard & Poor's affirmed its 'CCC+' long-term local currency sovereign credit rating on Belize and revised its outlook on the rating to stable from negative. The 'C' short-term sovereign credit ratings on the sovereign were affirmed by S&P. ============= B E R M U D A ============= BERMUDA COMMERCIAL: Fitch Downgrades Individual Rating to C ----------------------------------------------------------- Fitch downgraded Bermuda Commercial Bank's short-term rating to 'F2' from 'F1' and its Individual Rating to 'C' from 'B/C.' Fitch also placed both ratings on Rating Watch Negative. BCB's Support rating remains unchanged at '5'. Fitch believes that the legal issues and investigations surrounding John Deuss, owner of BCB's largest shareholder and also the bank's former Chairman, put strain on BCB's business reputation. While the bank's balance sheet remains highly liquid with satisfactory capacity to meet its financial obligations, the company's overall funding flexibility and margin of safety have been reduced. As a result, Fitch lowers the short-term rating one notch to 'F2.' The downgrade of the individual rating to `C' reflects BCB's narrow franchise, which is largely limited to the processing business, as well as the legal problems surrounding the controlling shareholder. Fitch has placed both ratings on Rating Watch Negative, since there is near-term potential for further adverse events and publicity. Fitch views positively the fact that the resignations of Mr. Deuss, former Chief Operating Officer Timothy Ulrich, and former Director Tineke Deuss have now been made permanent. In Fitch's view, BCB's management team headed by Senior Vice President Dominique Smith is experienced and capable of handling day to day transactions. ============= B O L I V I A ============= PETROLEO BRASILEIRO: Reaches Interim Gas Price Pact with Bolivia ---------------------------------------------------------------- Petroleo Brasileiro SA told Petrolworld that it has reached a provisional natural gas price agreement with Bolivia. According to Petrolworld, the new accord was based on the current contract. Brazil's official news agency relates that Petroleo Brasileiro will pay Bolivia US$3.76 per million British Thermal Unit of natural gas, a small increase from US$3.68. The Brazilian news agency notes that Petroleo Brasileiro and Bolivia will consider quarterly price adjustments. The price mechanism based on quarterly adjustments is referred to a basket of commodities' prices in the international market, Petroleo Brasileiro told Petrolworld. Petroleo Brasileiro has been unable to reach an agreement with Bolivia on term changes to the original contract, which involves the daily supply of up to 26 million cubic meters of gas equal to 50% of Brazil's domestic consumption. Petroleo Brasileiro insisted that there was no need to review the price adjustment mechanism in the original contract, Petrolworld states. 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. * BOLIVIA: Raises Contract Price for Natural Gas by 2.1% -------------------------------------------------------- The price of the natural gas imported from Bolivia, which supplies distributors in the Southern, Southeastern, and Midwestern Brazilian regions, had its commodity rate readjusted by 2.1%, from US$3.68/million BTU to US$3.76/million BTU as of Oct. 1. As determined by the agreement update clause, readjustments are made quarterly and are based on the variation in the international quote for a fuel oil basket. With the increase, the average sales price, including the transportation tariff, went from US$5.39/million BTU to US$5.47/million BTU, a 1.48% hike. For volumes above 16 million m3/day purchased by Petroleo Brasileiro from Yacimientos Petroliferos, the commodity price was readjusted based on the same percentage, from S$4.52/million BTU to US$4.61/million BTU, which corresponds to US$6.31/million BTU in the city-gate. * * * Fitch Ratings assigned these ratings on Bolivia: Rating Rating Date ------ ----------- Country Ceiling B- Jun. 17, 2004 Long Term IDR B- Dec. 14, 2005 Local Currency Long Term Issuer Default Rating B- Dec. 14, 2005 =========== B R A Z I L =========== AGCO CORP: Reduces Outlook for 2006 Net Sales & Adjusted EPS ------------------------------------------------------------ AGCO Corp. has reduced its outlook for 2006 net sales and adjusted earnings per share. The company now expects sales to decline 2 to 3 percent versus 2005 and for 2006 adjusted earnings per share to be approximately US$1.00. Sales and operating income in AGCO's North American operations are now expected to be lower than previously forecasted due to continued efforts to reduce dealer inventories, softening market conditions, and lower than anticipated margins. Weaker than expected market conditions in the East Asia Pacific region also contributed to the reduced sales and earnings outlook. Third quarter 2006 sales are now expected to be approximately 6 percent below third quarter 2005 levels, and third quarter 2006 net income is now expected to be break-even to a slight loss. Benefiting from the company's focus on reducing seasonal working capital requirements, 2006 free cash flow is now expected to be approximately US$120 million. About Agco Headquartered in Duluth, Georgia, Agco Corp. -- http://www.agcocorp.com/-- is a global manufacturer of agricultural equipment and related replacement parts. Agco offers a full product line including tractors, combines, hay tools, sprayers, forage, tillage equipment and implements, which are distributed through more than 3,600 independent dealers and distributors in more than 140 countries worldwide, including Brazil. AGCO products include the following brands: AGCO(R), Challenger(R), Fendt(R), Gleaner(R), Hesston(R), Massey Ferguson(R), New Idea(R), RoGator(R), Spra-Coupe(R), Sunflower(R), Terra-Gator(R), Valtra(R), and White(TM) Planters. AGCO provides retail financing through AGCO Finance. The company had net sales of US$5.4 billion in 2005. * * * As reported in the Troubled Company Reporter-Latin America ion Sept. 28, 2006, in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given- Default rating methodology for the Automotive and Equipment sector, the rating agency confirmed its Ba2 Corporate Family Rating for AGCO 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 ---------- ------- ------- ------ ---------- 1.750% Conv. Sr. Sub. Notes due 2033 B1 B1 LGD5 89% 6.875% Sr. Sub. Notes due 2014 B1 B1 LGD5 89% Sr. Unsec. Shelf Ba3 Ba3 LGD5 81% AMERICAN AXLE: Attrition Program Cues S&P to Affirm BB Rating ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB' corporate credit ratings on American Axle & Manufacturing Inc. and parent company American Axle & Manufacturing Holdings Inc. The affirmation follows the company's announcement that it will offer a costly special attrition program that will initially raise debt levels but should also rapidly and permanently reduce the company's cost structure. The ratings outlook is negative. The company has about US$1.1 billion million of debt, including the present value of operating leases and US$425 million of underfunded employee benefit liabilities. American Axle's special attrition program will be offered to all 6,000 of its United Auto Worker employees at the company's five master agreement facilities in the U.S. The program includes a range of early retirement incentives, buy-outs, and educational assistance. American Axle will undertake additional restructuring actions to align its production capacity and cost structure with current business conditions. Total costs for the attrition program and restructuring actions will range between US$150 million and US$250 million in 2006. A significant portion of these costs will be cash charges, causing debt levels to rise, depending on the level of acceptance by the company's UAW employees. Credit protection measures have been satisfactory for the ratings, but they will weaken this year as retirement incentives and buyout payments are made near year-end with little-to-no offsetting savings. Nevertheless, American Axle should see a meaningful reduction in its labor costs in 2007, resulting in higher earnings and cash flow even if currently difficult industry conditions persist. BANCO BRADESCO: To Increase Capital Stock by BRL1.2 Billion ----------------------------------------------------------- Banco Bradesco S.A.'s board of director's submitted a proposal to increase the capital stock by BRL1,200,000,000 through the issuance of 21,818,182 new book-entry registered stocks, with no par value, of which 10,909,152 are common stocks and 10,909,030 are preferred stocks, at the price of BRL55.00 per stock. Banco Bradesco clarifies that the stockholders are entitled to exercise their preemptive rights in the period from Oct. 19, 2006 to Nov. 21, 2006, in the proportion of 2.226746958% on the stockholding position held as of Oct. 5, 2006, on the same type of stocks. The stockholders whose stocks are deposited at CBLC -- Brazilian Clearing and Depositary Corporation, must exercise their rights at the respective depositor Brokerage Houses until Nov. 16, 2006. Those not intending to exercise their preemptive rights to the subscription may negotiate them at the BOVESPA -- Sao Paulo Stock Exchange based on the market price until Nov. 10, 2006, through Bradesco S.A. Corretora de Titulos e Valores Mobiliarios or another brokerage house of their preference. The subscription Reports will be available to the stockholders at Banco Bradesco's branches from Oct. 19, 2006, to Nov. 21, 2006. The stockholders who want to their rights must hand in the filled Report at Bradesco's branches until Nov. 21, 2006. Regardless of the date of delivery of the subscription report, the payment of 100% of the amount of the subscribed stocks will take place on Dec. 7, 2006, the same date for the payment of Complementary Interest on Own Capital and Dividends, and the stockholder must make an option for one of the forms provided for in the subscription report, as: -- compensation of credit of Complementary Interest on Own Capital and Dividends previously mentioned. In this case, the exercise of the subscription right of the stocks will not result in any disbursement of resources on the account of the stockholders enrolled in the bank's registrations as of Oct. 5, 2006; -- debit in the checking account held in Banco Bradesco S.A.; and -- check to the order of the referred Banco Bradesco; In the event of remainders of stocks, after the term for the exercise of the preemptive right has elapsed, they will be sold by means of an auction to be held on the Sao Paulo Stock Exchange, according to the conditions stated in the Board of Director's proposal and relevant legislation. These deliberations are still subject for approval by the Central Bank of Brazil. Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, two in the Bahamas, and four in the Cayman Islands. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer-mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 21, 2006, Fitch Ratings took these rating actions on Banco Bradesco S.A.: -- Foreign Currency Issuer Default Rating upgraded to 'BB+' from 'BB', Outlook remains Stable; -- Short-term Foreign Currency rating affirmed at 'B'; -- Local Currency Issuer Default Rating affirmed at 'BBB-', Outlook Stable; -- Short-term Local Currency rating affirmed at 'F3'; -- Individual rating affirmed at 'B/C'; -- Support rating affirmed at '4'; -- National Long-term affirmed at 'AA+(bra)', Outlook remains Stable; and -- National Short-term affirmed at 'F1+(bra)'. BANCO NACIONAL: Grants US$200-Million Loan to Daimler Chrysler -------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social aka BNDES approved a financing equivalent to a maximum of US$200 million to Daimler Chrysler do Brasil Ltda. The funds, granted in the ambit of BNDES-Exim pre-Shipment financing line, will be used for the exports of trucks, chassis and platforms for buses, diesel motors, hoists and buses. In Brazil, the company operates three plants, with 13,200 employees. These plants are: -- the Juiz de Fora plant for car manufacturing, -- the Sao Bernardo do Campo plant, which produces trucks, chassis, platforms for buses and motors, and -- the Campinas plant, which provides services and manufactures parts. The Sao Bernardo plant has a product development center that is certified by ISO-9001. Daimler exports buses, trucks and motors to over 70 countries. Last year, the main destination markets were the United States, Germany, Latin American countries, like Argentina, Chile, Mexico and Ecuador, and new Middle East markets, like Egypt, Katar and Iran. * * * 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: Increases Number of Third Quarter 2005 Loans ------------------------------------------------------------ Banco Nacional Desenvolvimento Economico e Social SA said in a statement that it has increased the number of new loans issued to 18.2% in the third quarter of 2006, compared with the same quarter in 2005. Demian Fiocca, the president of Banco Nacional, told Business News Americas that loans issued in 2006 will surpass the BRL47 billion granted in 2005. BNamericas states that Banco Nacional issued about BRL13.23 billion in loans during the third quarter of 2006. Banco Nacional granted BRL31.48 billion in new loans during the first nine months of 2006, about 1% higher compared with the same period in 2005, BNamericas relates. * * * 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. BROWN SHOE: Reports US$15.1M Net Income in Quarter Ended July 29 ---------------------------------------------------------------- Brown Shoe Company, Inc., filed its third quarter financial statements for the three months ended July 29, 2006, with the U.S. Securities and Exchange Commission. The company earned US$15.1 million of net income on US$579.3 million of net revenues for the three months ended July 29, 2006, compared to US$4 million of net income on US$551.4 million of net revenues in 2005. At July 29, 2006, the company had US$50 million of borrowings outstanding and US$18.1 million in letters of credit outstanding under the Credit Agreement. Total additional borrowing availability was approximately US$281.9 million at July 29, 2006. A full-text copy of the company's Quarterly Report is available for free at http://researcharchives.com/t/s?1306 About Brown Shoe Company Headquartered in St. Louis, Missouri, Brown Shoe Company, Inc. -- http://www.brownshoe.com/-- is a US$2.3 billion footwear company with global operations. The company operates the 900+ store Famous Footwear chain, which sells brand name shoes for the family. It also operates 300+ specialty retail stores in the U.S. and Canada under the Naturalizer, FX LaSalle and Via Spiga names, and Shoes.com, the company's e-commerce subsidiary. Brown Shoe, through its Wholesale divisions, owns and markets leading footwear brands including Via Spiga, Naturalizer, LifeStride, Nickels Soft, Connie and Buster Brown; it also markets licensed brands including Franco Sarto, Dr. Scholl's, Etienne Aigner, Bass and Carlos by Carlos Santana for adults, and Barbie and Disney character footwear for children. The company currently maintains offices in Brazil, Italy, China, Hong Kong and Taiwan. * * * Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on specialty footwear retailer and wholesaler Brown Shoe Co. Inc. The rating was removed from CreditWatch, where it was placed with negative implications on March 16, 2005. S&P said the outlook is negative. At the same time, Standard & Poor's assigned its 'BB-' rating to Brown Shoe's proposed US$150 million senior unsecured notes due 2012. These notes, to be offered pursuant to Rule 144A with registration rights, are rated one notch below the corporate credit rating due to the substantial amount of priority debt in the capital structure (including borrowings from the company's US$350 million secured revolving credit facility) relative to total assets. Pro forma for the transaction, total funded debt reaches about US$307 million. Moody's Investors Service assigned a B1 rating to Brown Shoe Company, Inc.'s US$150 million guaranteed senior unsecured notes due 2012, a Ba3 senior implied rating, a B2 issuer rating, and an SGL-2 Speculative Grade Liquidity Rating. Moody's said the outlook is stable. GOL LINHAS: Reports Traffic Statistics for September 2006 --------------------------------------------------------- GOL Linhas Aereas Inteligentes released preliminary passenger statistics for the month of September 2006. System-wide passenger traffic (RPK) and capacity (ASK) increased 47% year- over-year. GOL's system load factor for the month of September 2006 was 76%. Domestic passenger traffic and capacity for September increased 41%. GOL's domestic load factor for the month was 76%. International passenger traffic and capacity increased 150%. International load factor was 72%. Yield per passenger kilometer increased 4% versus September 2005, and average stage length (passenger trip) increased 9%. Operating Data September 2006* September 2005* Change (%) Total System ASK (mm) 1,728.4 1,178.1 46.7% RPK (mm) 1,305.5 890.0 46.7% Load Factor 75.5% 75.5% +0.0 p.p. Domestic Market ASK (mm) 1,562.5 1,111.7 40.6% RPK (mm) 1,185.5 842.0 40.8% Load Factor 75.9% 75.7% +0.2 p.p. International Market ASK (mm) 165.9 66.4 149.8% RPK (mm) 120.0 48.0 150.0% Load Factor 72.3% 72.3% +0.0 p.p. GOL passenger flows and load factors during the first week of October are at expected levels. During 2Q06, planned capacity additions facilitated an increase in ASKs of approximately 46% versus 3Q05. On Sept. 30, GOL received aircraft PR-GTF, the sixth new Boeing 737-800 to be incorporated into the company's fleet this year since the first was received in July. Since Sept. 29, GOL has mobilized resources to assist the families of the 154 victims of the accident that downed Flight 1907. The company maintains its normal operations. Headquartered in Sao Paulo, Brazil, Gol Linhas Areas Inteligentes S.A. -- http://www.voegol.com.br-- through its subsidiary, Gol Transportes Aereos S.A., provides airline services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay. The company's services include passenger, cargo, and charter services. As of March 20, 2006, Gol Linhas provided 440 daily flights to 49 destinations and operated a fleet of 45 Boeing 737 aircraft. The company was founded in 2001. * * * On March 21, 2006, Moody's Rating Services assigned a Ba2 rating on Gol's Long-Term Corporate Family Rating. On June 14, 2006, Fitch Ratings assigned a rating of 'BB' to GOL Linhas' outstanding US$200 million 8.75% perpetual bond. In addition, Fitch assigned: -- National Scale Rating of 'AA-(bra)' with Stable Outlook, and -- Local Currency Issuer Default Rating of 'BB+'- with Stable Outlook. PETROLEO BRASILEIRO: Unit Raises US$500MM in Global Notes --------------------------------------------------------- Petroleo Brasileiro S.A. aka Petrobras disclosed that through its wholly-owned subsidiary Petrobras International Finance Company closed the placement at the international capital market of US$500 million in Global Notes. The bonds have a yield to investor of 6.185%, a 10-year maturity term, and represent PIFCo's lowest placement cost for equivalent term, the rate being 1.55% superior to the American Treasury Security with similar term. The global notes were offered by 99.557% of the face value, with coupon of 6.125% p.a. The operation represents Petrobras' first issue after receiving the investment grade classification by Moody's and its main purposes were to keep the presence of the company at the capital market, to establish a new cost referential which reflects the current financing conditions of the company, and to access a new base of investors associated to the high grade market. Moreover, the company improved its covenants to reflect its investment grade condition. Petrobras has received tender offers of nearly US$1.3 billion and the pricing occurred on Sept. 29, 2006. The wide selling of bonds recognizes Petrobras' credit quality in international capital markets, with approximately 85% of the bonds being placed in "investment grade" markets. The issue's strategy is aligned to the buyback of old bonds, recently effected by the Company, which were issued with higher coupons. The operation was conducted by Morgan Stanley & Co. Incorporated and UBS Securities. 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. PETROLEO BRASILEIRO: LatAm's Second Most Sustainable Company ------------------------------------------------------------ Among the big Latin American oil/gas companies, Shell and Petrobras are the most effective at sustainability, social, ethical and governance programs, according to a study by Management & Excellence and LatinFinance. The Biggest and Best Six in Latin America are: 1) Shell: 90.26% 2) Petrobras: 79.94% 3) Repsol: 79.08% 4) Chevron: 77.08% 5) Pemex: 53.58% 6) Enap: 44.99% Delivering record financial results in 2004 and 2005, Latin America's oil companies have attracted international investors in droves. Last year, Mexico's Pemex, the world's 11th largest oil company in terms of reserves, reported record revenues of US$86.1 billion. The big players are investing hundreds of millions of dollars in sustainability and social projects that are designed to ensure their long-term success and acceptance. In Venezuela, Chevron joined forces with local giant PDVSA, investing US$3.6 billion in the Hamaca facility. The investments have paid off in cleaning up oil's image in Latin America. Twice Chevron received the Orden El Brillante award in Venezuela and last September was awarded additional drilling rights off the coast. But sustainability investments have gone far beyond construction and modernization. Petrobras has invested over US$120 million in social programs over the last two years alone. It spends US$12 million on educating largely underprivileged children in Brazil. Shell, which has been in Brazil for over 93 years, helped restore the famous Christ the Redeemer statue in Rio de Janeiro. Chile's state-owned ENAP published its first detailed social responsibility report last year and runs a Casa Abierta program for local communities at one of its main refineries. Plagued by regular environmental pollution scandals, Latin America's biggest oil companies are cleaning up their acts and being transparent about good and bad news alike. Pemex reports 399 mostly smaller oil spills for 2005, but reduced its air emissions from 1,000 tons to 700 tons over the last four years. Spain's Repsol experienced over 1,300 spills last year while investing over US$400 million in environmental projects. Petrobras does best among the purely Latin American companies in corporate governance, doing justice to its large international investor pool. The company is one of very few Latin companies to maintain a Board nomination committee. The study is the first on the most sustainable and socially responsible oil/gas companies in Latin America, scoring the companies according to their compliance with nearly 300 international and national sustainability, social, ethics, governance and transparency standards. 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. SPANSION: Moody's Affirms B3 Corporate Family Rating ---------------------------------------------------- Moody's Investors Service assigned a Ba3 rating to Spansion LLC's proposed US$400 million senior secured term loan while affirming the B3 corporate family rating. The rating on the company's US$250 million senior unsecured note due 2016 was lowered to Caa1, reflecting the insertion of secured debt into the capital structure. The ratings reflect both the overall probability of default of the company, to which Moody's assigns a PDR of B3, and a loss given default of LGD 2 for the new bank facility which has first priority lien on all domestic assets and stock pledge of all domestic subsidiaries and 65% of foreign subsidiaries (excluding Spansion Japan), as well as a second lien on domestic accounts receivables. The rating outlook is stable. Spansion's B3 corporate family rating reflects: * the high degree of business risk inherent to the capital intensive, volatile, and technologically evolving flash memory market; * the strong exposure to the cell phone market which makes it vulnerable to changes in demand as well as component pricing, although unit and bit demand remain strong and blended average selling prices are relatively stable; * its fairly limited financial flexibility although near term flexibility will be supported by the proceeds from the US$400 million term loan; * Spansion's limited ability to weather sustained market weakness or technological or manufacturing missteps; and, * the significantly larger financial resources and business diversity of some of its key competitors. The rating also considers: * Spansion's strong position in the NOR flash memory market, although this traditional, US$8 billion market directed primarily at the cell phone and embedded end markets is mature and slow growing; * Spansion's proprietary flash architecture called MirrorBit, which effectively doubles the density of each memory cell, gaining increased market acceptance as electronic devices require greater data density at lower cost per bit; * strong customer relationships among a range of end market customers including all of the top cell phone, consumer electronics, and automotive OEM's; and, * the company's success so far operating as a stand alone entity and in successfully migrating its business operations from former parent AMD. Rating assigned: * US$400 million senior secured term loan due 2012 at Ba3 (LGD2, 23%) Rating lowered: * US$250 million senior unsecured note due 2015 to Caa1 (LGD4, 65%) from B2 LGD3, 43%); Ratings affirmed: * Corporate family rating B3; * Probability-of-default rating B3; * Speculative Grade Liquidity rating SGL-2. Spansion Technology Inc., -- http://www.spansion.com/-- headquartered in Sunnyvale, California, and parent of Spansion LLC, is a leading provider of flash memory semiconductors that's after its initial public offering in December 2005, is owned approximately 38% by Advanced Micro Devices and 25% by Fujitsu Limited. The company has operations in France, and Japan, and sales offices in Brazil and Mexico. =========================== C A Y M A N I S L A N D S =========================== AMERICAN MASTERS: Last Day for Proofs of Claim Filing Is Nov. 2 --------------------------------------------------------------- American Masters Market Neutral Protected 4 Ltd.'s creditors are required to submit proofs of claim by Nov. 2, 2006, to the company's liquidators: Mark Wanless Steven Wilderspin Maples Finance Jersey Ltd. 2nd Floor Le Masurier House La Rue Le Masurier St. Helier, Jersey JE2 4YE Creditors who are not able to comply with the Nov. 2 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. American Masters' shareholders agreed on Sept. 20, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. BEA LTD: Creditors Have Until Nov. 2 to File Proofs of Claim ------------------------------------------------------------ Bea Ltd.'s creditors are required to submit proofs of claim by Nov. 2, 2006, to the company's liquidator: Buchanan Ltd. P.O. Box 1170, George Town Grand Cayman, Cayman Islands Creditors who are not able to comply with the Nov. 2 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Bea Ltd.'s shareholders agreed on Sept. 21, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Timothy Haddleton P.O. Box 1170, George Town Grand Cayman, Cayman Islands Tel: (345) 949-0355 Fax: (345) 949-0360 BLANCHFLOWER INVESTMENTS: Proofs of Claim Filing Is Until Nov. 2 ---------------------------------------------------------------- Blanchflower Investments Ltd.'s creditors are required to submit proofs of claim by Nov. 2, 2006, to the company's liquidator: Buchanan Ltd. P.O. Box 1170, George Town Grand Cayman, Cayman Islands Creditors who are not able to comply with the Nov. 2 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Blanchflower Investments' shareholders agreed on Sept. 21, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Timothy Haddleton P.O. Box 1170, George Town Grand Cayman, Cayman Islands Tel: (345) 949-0355 Fax: (345) 949-0360 BRE/SATELLITE I: Creditors Must File Proofs of Claim by Nov. 2 -------------------------------------------------------------- Bre/Satellite I Ltd.'s creditors are required to submit proofs of claim by Nov. 2, 2006, to the company's liquidator: Robert L. Friedman c/o Walkers Walker House, P.O. Box 265 GT Mary Street, George Town Grand Cayman, Cayman Islands Creditors who are not able to comply with the Nov. 2 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Bre/Satellite's shareholders agreed on Sept. 19, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Jonathan Culshaw c/o Walkers, Walker House P.O. Box 265 GT, Mary Street, George Town Grand Cayman, Cayman Islands Tel: (345) 949 6341 Fax: (345) 814 8341 BRE/SATELLITE II: Proofs of Claim Must be Submitted by Nov. 2 ------------------------------------------------------------- Bre/Satellite II Ltd.'s creditors are required to submit proofs of claim by Nov. 2, 2006, to the company's liquidator: Robert L. Friedman c/o Walkers Walker House, P.O. Box 265 GT Mary Street, George Town Grand Cayman, Cayman Islands Creditors who are not able to comply with the Nov. 2 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Bre/Satellite's shareholders agreed on Sept. 19, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Jonathan Culshaw c/o Walkers, Walker House P.O. Box 265 GT, Mary Street, George Town Grand Cayman, Cayman Islands Tel: (345) 949 6341 Fax: (345) 814 8341 BRE/SATELLITE III: Proofs of Claim Filing Is Until Nov. 2 --------------------------------------------------------- Bre/Satellite III Ltd.'s creditors are required to submit proofs of claim by Nov. 2, 2006, to the company's liquidator: Robert L. Friedman c/o Walkers Walker House, P.O. Box 265 GT Mary Street, George Town Grand Cayman, Cayman Islands Creditors who are not able to comply with the Nov. 2 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Bre/Satellite's shareholders agreed on Sept. 19, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Jonathan Culshaw c/o Walkers, Walker House P.O. Box 265 GT, Mary Street, George Town Grand Cayman, Cayman Islands Tel: (345) 949 6341 Fax: (345) 814 8341 BRE/SATELLITE IV: Last Day to File Proofs of Claim Is on Nov. 2 --------------------------------------------------------------- Bre/Satellite IV Ltd.'s creditors are required to submit proofs of claim by Nov. 2, 2006, to the company's liquidator: Robert L. Friedman c/o Walkers Walker House, P.O. Box 265 GT Mary Street, George Town Grand Cayman, Cayman Islands Creditors who are not able to comply with the Nov. 2 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Bre/Satellite's shareholders agreed on Sept. 19, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Jonathan Culshaw c/o Walkers, Walker House P.O. Box 265 GT, Mary Street, George Town Grand Cayman, Cayman Islands Tel: (345) 949 6341 Fax: (345) 814 8341 CT FIXED: Deadline for Proofs of Claim Filing Is on Nov. 2 ---------------------------------------------------------- CT Fixed Income, Ltd.'s creditors are required to submit proofs of claim by Nov. 2, 2006, to the company's liquidators: Ian Wight Stuart Sybersma P.O. Box 1787, George Town Grand Cayman, Cayman Islands Creditors who are not able to comply with the Nov. 2 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. CT Fixed's shareholders agreed on Sept. 20, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Nicole Ebanks Deloitte P.O. Box 1787, George Town Grand Cayman, Cayman Islands Tel: (345) 949 7500 Fax: (345) 949 8258 KOFOO INC: Proofs of Claim Filing Deadline Is Set for Nov. 2 ------------------------------------------------------------ Kofoo, Inc.'s creditors are required to submit proofs of claim by Nov. 2, 2006, to the company's liquidator: Griffin Management Ltd. Caledonian House, 69 Dr. Roy's Drive P.O. Box 1043 Grand Cayman, Cayman Islands Creditors who are not able to comply with the Nov. 2 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Kofoo, Inc.'s shareholders agreed on Sept. 22, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Janeen Aljadir Caledonian Bank & Trust Ltd. Caledonian House, 69 Dr. Roy's Drive P.O. Box 1043 Grand Cayman, Cayman Islands Tel: (345) 949-4943 Fax: (345) 949-8062 MERRILL LYNCH QA: Filing of Proofs of Claim Is Until Nov. 2 ----------------------------------------------------------- Merrill Lynch QA Equity Arbitrage Master Fund Ltd.'s creditors are required to submit proofs of claim by Nov. 2, 2006, to the company's liquidators: John Cullinane Derrie Boggess c/o Walkers SPV Limited P.O. Box 908, George Town Grand Cayman, Cayman Islands Tel: (345) 914-6305 Creditors who are not able to comply with the Nov. 2 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Merrill Lynch's shareholders agreed on Sept. 21, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. =============== C O L O M B I A =============== ARMSTRONG WORLD: Bankruptcy Exit Prompts S&P to Raise Ratings ------------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Armstrong World Industries Inc. to 'BB' from 'D', following the building products company's emergence from bankruptcy on Oct. 2, 2006. The outlook is stable. The 'BB' senior secured bank loan rating and the '2' recovery rating on Armstrong's proposed US$1.1 billion senior secured bank facility are affirmed. The bank loan rating was assigned on Sept. 28, 2006, based on the assumption that Armstrong would exit bankruptcy as well as satisfy other conditions. "Significant liquidity and a reasonable capital structure should give Armstrong time to continue addressing the cost and demand challenges it faces in a number of businesses," said Standard & Poor's credit analyst John Kennedy. "We expect the company to remain free cash flow positive and sufficiently profitable to maintain the ratings. We could revise the outlook to negative if Armstrong's weak flooring products and cabinet businesses continue to further compress overall margins and dampen cash. We could revise the outlook to positive if the company is able to significantly improve its performance in these business units, increase its cash flow, and reduce debt levels beyond our current expectations." Armstrong has leading positions in ceiling systems and vinyl and wood flooring; a fair balance between residential and commercial end markets and between new construction and remodeling activities; and adequate liquidity upon emergence from bankruptcy. Based in Lancaster, Pennsylvania, Armstrong World Industries, Inc. -- http://www.armstrong.com/-- the major operating subsidiary of Armstrong Holdings, Inc., designs, manufactures and sells interior floor coverings and ceiling systems, around the world. The company has Asia-Pacific locations in Australia, China, Hong Kong, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam. It also has locations in Colombia, Costa Rica, Greece and Iceland, among others. BANCOLOMBIA: Denies Sale Rumors ------------------------------- Bancolombia has denied reports on a planned sale, Business News Americas reports. According to a report by La Republic on Friday, the 3% Bancolombia stock increase on the local exchange on Thursday was the result of strong sale rumors. Reports say that HSBC, Citigroup and Deutsche Bank are considering the purchase of Bancolombia. Superfinanciera, the local financial regulator, requested a formal reply from Bancolombia regarding the sale, BNamericas relates. Bancolombia said in a fling with Superfinanciera that its major shareholders have no agreement or sale intentions. Bancolombia also denied any ongoing talks for a sale. * * * The Troubled Company Reporter-Latin America reported on April 28, 2006, that Moody's Investors Service upgraded Bancolombia's bank financial strength ratings to D+ from D with a stable outlook. Moody's added that the action concludes the review for possible upgrade that was announced on Oct. 13, 2005. Moreover, Bancolombia's Ba3/Not Prime long- and short-term foreign currency deposit ratings were affirmed. Moody's said the outlook on all ratings is stable. BANCOLOMBIA: Sold COP580 Bil. Mortgage Loans to Titularizadora -------------------------------------------------------------- Bancolombia has sold mortgage loans to Titularizadora Colombiana amounting to approximately COP580 billion. These mortgage loans will be secured by Titularizadora through the issuance of securities TIPS E-8 in October 2006. The purpose of this transaction is to transfer to capital markets a portion of the Bank's mortgage loans, the total value of which in August 2006 was COP1,863,601,000,000. Bancolombia, in response to a request of the Superintendence of Finance of Colombia, informs that after consulting with its major shareholders, there is currently no agreement, pending negotiations or intention to sell the control of the Bank. * * * The Troubled Company Reporter-Latin America reported on April 28, 2006, that Moody's Investors Service upgraded Bancolombia's bank financial strength ratings to D+ from D with a stable outlook. Moody's added that the action concludes the review for possible upgrade that was announced on Oct. 13, 2005. Moreover, Bancolombia's Ba3/Not Prime long- and short-term foreign currency deposit ratings were affirmed. Moody's said the outlook on all ratings is stable. BBVA COLOMBIA: Issues COP75 Bil. Subordinated Bonds on Oct. 9 ------------------------------------------------------------- BBVA Colombia said in a filing with Superfinanciera, the local financial regulator, that it issued COP75 billion subordinated bonds on Oct. 9. BBVA Colombia told Business News Americas that the bonds will mature in five years, with yield a 5.35% real yearly interest rate. It could double the offer to COP150 billion depending on investor demand. DCR, the local ratings agency, placed an AA+ rating on the bonds, BNamericas relates. * * * As reported in the Troubled Company Reporter on March 13, 2006, Moody's Investors Service assigned a 'Ba3' long-term foreign currency deposit rating on BBVA Colombia. Moody's changed the outlook to stable from negative. ECOPETROL: Setting Up Joint Venture with Glencore by End of Oct. ---------------------------------------------------------------- Ecopetrol, the state-run oil firm of Colombia, will form a joint venture with Swiss firm Glencore by the end of October to revamp the Cartagena plant, according to a report by state news service Servicio de Noticias del Estado. Glencore acquired a 51% stake in the plant in August for about US$631 million, Business News Americas says. Servicio de Noticias relates that the joint venture will be based in Cartagena. It will start with an initial COP10-billion investment from Ecopetrol and Glencore. According to the report, Ecopetrol and Glencore will define the revamp project's details in the first half of 2006. Ecopetrol will continue running the plant until the expansion is completed in 2010. The restoration involves increasing the plant's capacity to 140,000 barrels per day from 80,000 barrels per day, BNamericas reports. Ecopetrol is an integrated-oil company that is wholly owned by the Colombian government. The company's activities include exploration for and production of crude oil and natural gas, as well as refining, transportation, and marketing of crude oil, natural gas and refined products. Ecopetrol is Latin America's fourth-largest integrated-oil concern. Operations are organized into Exploration & Production, Refining & Marketing, Transportation, and International Commerce & Gas. On June 27, 2006, Fitch Ratings revised the rating outlook of the long-term foreign currency issuer default rating of Ecopetrol S.A. to Positive from Stable. This rating action follows the recent revision in the Rating Outlook to Positive from Stable of the 'BB' foreign currency IDR of the Republic of Colombia. Ecopetrol's IDR remain strongly linked with the credit profile of the Republic of Colombia. =================== C O S T A R I C A =================== SAMSONITE CORP: July 31 Balance Sheet Upside-Down by US$45.1M ------------------------------------------------------------- Samsonite Corp. reported a US$2 million net loss on US$257.5 million of net revenues for the three months ended July 31, 2006, compared to US$2.3 million of net income on US$236.5 million of net revenues in 2005. At July 31, 2006, the company's balance sheet showed US$615.7 million in total assets and US$642.4 million in total liabilities, resulting in a US$45.1 million stockholders' deficit. A full-text copy of the company's Quarterly Report is available for free at http://researcharchives.com/t/s?130b * * * As reported in the Troubled Company Reporter on Sept. 15, 2006, Moody's Investors Service placed the long-term ratings of Samsonite Corp., under review for possible upgrade: * B1 corporate family rating * B1 on the senior unsecured notes * B3 on the 8.875% subordinated notes Samsonite Corp. -- http://www.samsonite.com-- manufactures, markets and distributes luggage and travel-related products. The company's owned and licensed brands, including Samsonite, American Tourister, Trunk & Co, Sammies, Hedgren, Lacoste and Timberland, are sold globally through external retailers and 284 company-owned stores. Executive offices are located in London. The company has global locations in Aruba, Australia, Costa Rica, Indonesia, India, Japan, and the United States among others. * COSTA RICA: Experts Urges Real Estate Investment in Nation ------------------------------------------------------------ Financial experts are pointing to Costa Rica in earning returns on real estate investments. Costa Rica has used its educated populace and beauty to attract investors and end-users when retirement portfolios are not deep enough to sustain a desired lifestyle in popular destinations like US states Florida and California. Costa Rica is quickly becoming a popular destination for people of all backgrounds to invest, live, and retire. American retirees continue to seek a peaceful address without ultra-high prices, and investors find Costa Rica real estate as a great investment vehicle in addition to being a fun destination to spend free time. Large commercial real estate brokers in the US are masterminding investment strategies for their clients with Costa Rica in mind. Giant tracts of land, Like the 7,000 hectare ocean view plot in Guanacaste that is listed exclusively with EstateRealty.com are hard to come by. Tim Schmidt, a representative of EstateRealty.com, said, "We showcase land deals that are permitted for development, knowing that investors prefer something that is ready to go, rather than simply a proposal which could face years of red tape on the way to approval." One of several exclusive land listings in EstateRealty.com's database of development projects, land deals that are becoming logical purchases for investment groups. Most of the time, multi-million dollar land parcels are transformed into the region's most attractive housing communities. These communities reap massive rewards for the principals. Guanacaste, which is in the northwest corner of Costa Rica's pacific coast, is where the Four Seasons Resort Hotel is located. It has plans for a J.W. Marriot as well. "The presence of major players like the Four Seasons and J.W. Marriot indicates that clearly the area is exploding, and anyone in position to get in the game at the development level, should take a serious look at this area," Brad Markin, a land owner and co-founder of EstateRealty.com, said. * * * As reported on Aug. 21, 2006, Fitch Ratings upgraded Costa Rica's country ceiling to BB+ from BB. =================================== D O M I N I C A N R E P U B L I C =================================== AES DOMINICANA: Itabo Unit Places US$125 Million Corporate Bonds ---------------------------------------------------------------- Itabo -- a unit of AES Dominicana Group -- has issued US$125 million corporate bonds in the international capital markets, Dominican Today reports. According to Dominican Today, the bonds have a matures in seven years, at a yearly interest rate of 10.875% per semester, payable as of the next month of March 2007. Dominican Today relates that Fitch Ratings and Standard & Poor placed a B rating on the bonds with a positive outlook. The success of the issuance would show that foreign investors consider AES Corp. as a trustworthy operator, BNamericas notse. It also indicates the investors' confidence in the nation's economic growth. AES Dominicana has issued about US$285 million in the international capital market during the past twelve months, contributing large amounts of resources to the Dominican energy sector, Dominican Today states. About AES Dominicana AES Dominicana is a special-purpose financing entity of AES Corp. in the Dominican Republic. It manages two of AES Corp.'s wholly owned generating facilities, Andres and DPP. Andres is incorporated under the laws of the Netherlands, and it owns a 304 MW gas-fired, combined-cycle plant outside of Santo Domingo. The facility also includes an LNG regasification terminal. AES Dominicana also includes Itabo. * * * As reported in the Troubled Company Reporter-Latin America on July 21, 2006, Standard & Poor's Ratings Services' 'B-' rating on AES Dominicana Energia Finance S.A.'s US$160 million senior notes due 2015 reflects the challenges of operating in the electric sector in the Dominican Republic, and a legacy liquefied natural gas contract that could be burdensome, offset by the contractual nature of the revenue stream, and continued support of the electricity sector by the Dominican government. S&P said the outlook is stable. BANCO INTERCONTINENTAL: Alvarez Renta Has 30 Bank Accounts ---------------------------------------------------------- The monetary authorities of the Dominican Republic found out that Alvarez Renta, the former consultant of Banco Intercontinental SA, has about 30 bank accounts, DR1 Newsletter reports. DR1 relates that Mr. Renta is being investigated for alleged asset laundering in the Banco Intercontinental fraud case, along with the bank's former executives. Dr1 emphasizes that Dominican central bank authorities, the BanInter Liquidation Commission and the Banking Superintendence filed a petition with the Attorney General's Department requesting the seizure of Listin Diario shares and other assets related to Mr. Renta, Ramon Baez Figueroa, Marcos Baez Cocco, Vivian Lubrano de Castillo, Luis Alvarez Renta and Jesus Maria Troncoso Ferrua. According to Clave, efforts to identify the property and resources of Mr. Renta extended to three states in the United States, as well as to Switzerland and Panama. The initiative is aimed at bringing about the implementation of a US court ruling that sentenced Mr. Renta to pay the Banco Intercontinental Liquidation Commission about US$176.9 million, DR1 says, citing Fidel Pichardo Baba, the central bank legal consultant. Dr1 underscores that the authorities in the Dominican Republic expect to apply the ruling from the US in the nation. Assets in Panama are being tracked down through the Panamanian Banking Superintendence, DR1 notes. Meanwhile, authorities have located assets in the US state of Colorado that allegedly belong to Mr. Renta but are under the name of corporations. The Swiss bank accounts are empty, Mr. Baba told DR1. Banco Intercontinental collapsed in 2003 as a result of a massive fraud that drained it of about US$657 million in funds. As a consequence, all of its branches were closed. The bank's current and savings accounts holders were transferred to the bank's new owner -- Scotiabank. The bankruptcy of Baninter was considered the largest in world history, in relation to the Dominican Republic's Gross Domestic Product. It cost Dominican taxpayers DOP55 billion and resulted to the country's worst economic crisis. BANCO INTERCONTINENTAL: Planned Sector Probe Won't Affect Case -------------------------------------------------------------- Carlos Salcedo, the legal representative of the central bank of the Dominican Republic, told Dominican Today that the continuing process of the Banco Intercontinental SA fraud case won't be affected if the government would launch a new investigation to spot other frauds. Radhames Jimenez, the justice minister, affirmed to Dominican Today that other people who the Justice Ministry considers had responsibility in the handling of the banking crisis must be investigated. Those who the probe determines are responsible could be indicted, Dominican Today relates, citing Mr. Salcedo. That would be the object of a separate probe and a separate accusation against those who might be responsible. Minister Jimenez admitted to Dominican Today that in the banks' bankruptcy cases there are sectors that the Justice Ministry has not filed charges. Minister Jimenez told Dominican Today, "Because I understand that in a crime of that magnitude there must not be cover-up and all the ones who had some level of participation must face the law. In these cases all those who took part are not there. There are still people who in one way of (or) another had collateral participation and they are still walk about and have not been taken in account neither by the Justice Ministry and nor I believe by the affected institutions." Meanwhile, Ramon Baez Figueroa, the former president of Banco Intercontinental, had told Dominican Today that more than one million people were weakened by the banking crisis due to the previous authorities' mismanagement. He said that in the judicial process of other people who handled the crisis, the members of the Monetary Board and Jose Lois Malkun -- the former central bank governor -- must also be present. "If today is spoken of more than one million poor it's because the authorities paid left and right to people they shouldn't have and that was what generated the crisis," Dominican Today notes, citing Mr. Figueroa. Carlos Salcedo can be reached at: Central Bank of the Dominican Republic Oficina Principal Calle Pedro Henriquez Urena Esquire Leopoldo Navarro, Santo Domingo Republica Dominicana Apartado Postal 1347 Phone: (809) 221-9111 S.W.I.F.T BCRDDOSX Banco Intercontinental collapsed in 2003 as a result of a massive fraud that drained it of about US$657 million in funds. As a consequence, all of its branches were closed. The bank's current and savings accounts holders were transferred to the bank's new owner -- Scotiabank. The bankruptcy of Baninter was considered the largest in world history, in relation to the Dominican Republic's Gross Domestic Product. It cost Dominican taxpayers DOP55 billion and resulted to the country's worst economic crisis. ============= E C U A D O R ============= PETROECUADOR: 19 Firms Present Proposal for Amazonian Oil Fields ---------------------------------------------------------------- A spokesperson from Petroecuador, the state-run oil company of Ecuador, confirmed to Prensa Latina that the company received proposals from 19 companies, which also bought terms of the oil tender for eight marginal exploration and production contracts in the Amazon region. As reported in the Troubled Company Reporter-Latin America on Oct. 4, 2006, Petroecuador said that 14 groups purchased bidding rules for the contracts covering the areas: -- Armadillo, -- Chanangue, -- Eno-Ron, -- Frontera-Tapi-Tetete, -- Ocano-Pena Blanca, -- Pucuna, -- Puma, and -- Singue. Petroecuador will award the contracts between Oct. 30 and Nov. 11. It will sign contracts on Nov. 11-24, BNamericas states. With the exploitation of the fields, the Ecuadorian government hopes to boost output by almost 30,000 barrels per day, from 185,000 barrels per day. Prensa Latin relates that the tender started on Sept. 15. However, an official source told Prensa Latina that Ecuador has moved the deadline of bidding to Nov. 1. As previously reported by the Troubled Company Reporter, Petroecuador was set to receive and open technical bids for the concessions on Oct. 10. The opening of firms' economic bids was on Oct. 20. PetroEcuador, according to published reports, is faced with cash-problems. The state-oil firm has no funds for maintenance, has no funds to repair pumps in diesel, gasoline and natural gas refineries, and has no capacity to pay suppliers and vendors. The government refused to give the much-needed cash alleging inefficiency and non-transparency in PetroEcuador's dealings. ============= J A M A I C A ============= NATIONAL WATER: Parish Council Blames Firm on Water Problems ------------------------------------------------------------ The Clarendon Parish Council has criticized the National Water Commission of Jamaica for failure to repair several water mains throughout sections of the parish, Radio Jamaica reports. Milton Brown -- the mayor of May Pen -- told Radio Jamaica that the council has been receiving several complaints from the residents regarding water going to waste. While this is happening, there are other instances in which communities are without water. Some residents in Sandy Bay recently had to hold protests against the National Water to supply them with piped water, Radio Jamaica states, citing Mayor Brown. * * * As reported in the Troubled Company Reporter on Feb. 7, 2006, the National Water Commission of Jamaica had been criticized for failing to act promptly in cutting its losses. For the fiscal years 2002 and 2003, the water commission accumulated a net loss of US$2.11 billion. The deficit fell to US$1.86 billion the following year, and to US$670 million in 2004 and 2005. =========== M E X I C O =========== COREL 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 U.S. Technology Software sectors this week, the rating agency confirmed its Caa1 Corporate Family Rating for Corel Corporation. 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 ---------- ------- ------- ------ ---------- US$75 Million Senior Secured Revolving Credit Facility due 2011 B3 B3 LGD3 33% US$90 Million Senior Secured First Lien due 2012 B3 B3 LGD3 33% 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- umeric 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 Ottawa, Ontario, Corel Corp. (NASDAQ:CREL) (TSX:CRE) -- http://www.corel.com/-- is a packaged software company with an estimated installed base of over 40 million users. The company provides productivity, graphics and digital imaging software. Its products are sold in over 75 countries through a scalable distribution platform comprised of original equipment manufacturers, Corel's international websites, and a global network of resellers and retailers. The company's product portfolio features CorelDRAW(R) Graphics Suite, Corel(R) WordPerfect(R) Office, WinZip(R), Corel(R) Paint Shop(R) Pro, and Corel Painter(TM). The company has operations in Germany, Italy, the United Kingdom, Australia, Japan, Korea, Brazil, and Mexico, among others. EPICOR SOFTWARE: 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 U.S. Technology Software sectors this week, the rating agency confirmed its B2 Corporate Family Rating for Epicor Software Corp. 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 ---------- ------- ------- ------ ---------- US$100 Million Senior Secured Revolving Credit Facility due 2009 B1 Ba3 LGD2 27% US$100 Million Senior Secured First Lien due 2012 B1 Ba3 LGD2 27% 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- umeric 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 Irvine, California, Epicor Software Corp. -- http://www.epicor.com/www/-- is a provider of enterprise resource planning, customer relationship management, and supply chain management software and solutions to mid-market companies worldwide. Epicor Software has worldwide locations in Australia, Canada, China, Germany, Hong Kong, Indonesia, Italy, Japan, Korea, Malaysia, Mexico, Singapore, Taiwan, and the United Kingdom, among others. GENERAL MOTORS: Kerkorian Backs Out of Share Purchase Plan ---------------------------------------------------------- Investor Kirk Kerkorian has ditched plans to raise his stake in General Motors Corporation following the collapse of alliance talks between GM and Renault-Nissan, BBC News Reports. The three automakers had agreed to conduct a 90-day study of the benefits of a possible alliance after Mr. Kerkorian, who owns a 9.9% stake in GM, broached the idea early this year. According to BBC News, Mr. Kerkorian was displeased over GM's termination of the negotiations prior to the end of the 90-day period and without first obtaining an independent review from its Board of Directors. Sarah Karush at the Associated Press reported last week that Mr. Kerkorian had considered increasing his stake in GM by much as 12%. GM ended negotiations after concluding that the alliance framework required by Renault-Nissan would substantially disadvantage GM shareholders. GM also asked Renault and Nissan to pay a premium as part of a potential alliance. Renault- Nissan was unwilling to pay for this premium saying that payment for this additional compensation was contrary to the spirit of any successful partnership. Jerome York, Mr. Kerkorian's representative to GM, resigned from the automaker's board after negotiations with Renault-Nissan ended. In a letter dated October 6 filed with the Securities and Exchange Commission, Mr. York expressed his reservations over the ability of GM's current business model to successfully compete in the marketplace with Asian auto manufacturers. GM, however, remains committed and focused in its turnaround program. The Company maintains that it is making real progress in its efforts. According to GM, these actions are already yielding significant improvement in its results including more than $9 billion in yearly cost savings on a running rate basis by the end of 2006, and record revenues in the first two quarters of this year. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries, including Mexico and Brazil, and its vehicles are sold in 200 countries. * * * As reported in the Troubled Company Reporter on July 28, 2006, Standard & Poor's Ratings Services held all of its ratings on General Motors Corp. -- including the 'B' corporate credit rating, but excluding the '1' recovery rating -- on CreditWatch with negative implications, where they were placed March 29, 2006. As reported in the Troubled Company Reporter on July 27, 2006, Dominion Bond Rating Service downgraded the long-term debt ratings of General Motors Corp. and General Motors of Canada Limited to B. The commercial paper ratings of both companies are also downgraded to R-3 (low) from R-3. As reported in the Troubled Company Reporter on June 22, 2006, Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1' to General Motor's new $4.48 billion senior secured bank facility. The 'RR1' is based on the collateral package and other protections that are expected to provide full recovery in the event of a bankruptcy filing. As reported in the Troubled Company Reporter on June 21, 2006, Moody's Investors Service assigned a B2 rating to the secured tranches of the amended and extended secured credit facility of up to $4.5 billion being proposed by General Motors Corporation, affirmed the company's B3 corporate family and SGL-3 speculative grade liquidity ratings, and lowered its senior unsecured rating to Caa1 from B3. The rating outlook is negative. GENERAL MOTORS: Jerome York Resigns from Board of Directors ----------------------------------------------------------- General Motors Corp. has received Jerome B. York's resignation from the GM Board of Directors, effective Oct. 6, 2006. Under the direction of the GM Board, the Company remains focused on its North America turnaround, where GM is making real progress, progress that is well ahead of what some skeptics thought possible. Over the past 12 months, GM has implemented several fundamental moves -- in health care, manufacturing capacity, hourly attrition, salaried and executive headcount and benefits, asset sales and liquidity enhancements, acceleration of key product launches, introduction of the industry's best warranty, and completely revamping its marketing strategy. These actions are already yielding very significant and needed improvement in our results -- more than US$9 billion in yearly cost savings on a running rate basis by the end of 2006, and record revenues in the first two quarters of this year, to name but two significant ones. General Motors is focused on several other key matters, as well: * the successful resolution of Delphi and closing the GMAC transaction in the fourth quarter; * on the acceleration of the GM Europe turnaround; and * continued profitable growth, especially in Asia and South America. With respect to the comments on the Renault-Nissan alliance study in Tracinda's 13D filing, the decision to end the equity alliance discussions was unanimously approved by the GM Board, which consists of 12 directors, 11 of whom are independent of management. The management of all three companies and receipt of advice on the proposal by two prominent financial advisers made this decision after a comprehensive process that included joint synergy evaluation. The GM Board concluded that the alliance framework required by Renault-Nissan would substantially disadvantage GM shareholders. This structure included the potential joint projects, which GM agreed could yield significant aggregate synergies, but which were highly skewed to Renault-Nissan. The structure also included the requirement to sell a substantial equity stake in GM at no premium, along with preferential rights, which could have had the practical effect of foreclosing GM from entering equity alliances with other OEMs. Renault-Nissan made it clear they were unwilling to pay any premium in any of these areas. Through its support and actions, the GM Board has indicated the best way to drive value is to continue to remain focused and vigilant in the Company's stated turnaround program. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries, including Mexico and Brazil, and its vehicles are sold in 200 countries. * * * As reported in the Troubled Company Reporter on July 28, 2006, Standard & Poor's Ratings Services held all of its ratings on General Motors Corp. -- including the 'B' corporate credit rating, but excluding the '1' recovery rating -- on CreditWatch with negative implications, where they were placed March 29, 2006. As reported in the Troubled Company Reporter on July 27, 2006, Dominion Bond Rating Service downgraded the long-term debt ratings of General Motors Corp. and General Motors of Canada Limited to B. The commercial paper ratings of both companies are also downgraded to R-3 (low) from R-3. As reported in the Troubled Company Reporter on June 22, 2006, Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1' to General Motor's new US$4.48 billion senior secured bank facility. The 'RR1' is based on the collateral package and other protections that are expected to provide full recovery in the event of a bankruptcy filing. As reported in the Troubled Company Reporter on June 21, 2006, Moody's Investors Service assigned a B2 rating to the secured tranches of the amended and extended secured credit facility of up to US$4.5 billion being proposed by General Motors Corp., affirmed the company's B3 corporate family and SGL-3 speculative grade liquidity ratings, and lowered its senior unsecured rating to Caa1 from B3. Moody's said the rating outlook is negative. GERDAU SA: Denies Purchase Talks with Sicartsa ---------------------------------------------- Gerdau SA told news agency AE-Setorial that there are no purchase negotiations between the company and Sicartsa, a Mexican rebar producer owned by Grupo Villacero. According to AE-Setorial, Frederico Gerdau Johannpeter -- the vice president of Gerdau -- said, "If they [the Mexican company] wanted to sell something, a bank would be offering the company." Julio Villareal, the president of Grupo Villacero, told the press that his company was negotiating with some firms, including Gerdau, on a strategic alliance for Sicartsa. Business News Americas notes that Mr. Villareal also mentioned these firms as Sicartsa suitors: -- Arcelor Mittal, -- Nucor -- Commercial Metals, and -- Ternium. "In this quarter, we should define the strategic alliance," Mr. Villareal told the press. When asked about a possible official offer for Sicartsa, Mr. Johannpeter told AE-Setorial, "We have our doors opened, we examine everything." Headquartered in Porto Alegre, Brazil, Gerdau S.A. -- http://www.gerdau.com.br-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay and the United States. Gerdau's four majority-owned Brazilian operating subsidiaries are: -- Acominas, -- Gerdau Acos Longos S.A., -- Gerdau Acos Especiais S.A. and -- Gerdau Comercial de Acos S.A.; * * * Gerdau SA's US$600 million 8-7/8% perpetual bond is rated Ba1 by Moody's, BB+ by S&P, and BB- by Fitch. * * * 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. LG.PHILIPS: Court Approves Pepper Hamilton as Special Counsel ------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware gave Jeoffrey L. Burtch, Esq., the Chapter 7 trustee overseeing the liquidation of LG.Philips Displays USA Inc., permission to employ Pepper Hamilton LLP as his special counsel, nunc pro tunc to May 26, 2006. As reported on the Troubled Company Reporter on July 24, 2006, the Trustee told the Court that when the case was converted to chapter 7, a Motion for Rejection of Unexpired Leases and Executory Contracts that the Debtor had previously filed was still pending with respect to the proposed rejection of a group of executory contracts among the Debtor, Delafoil Ohio, Inc., and various third parties. Pepper Hamilton will represent the chapter 7 trustee him on all matters relating to the Debtor's lease agreements with Delafoil Ohio. David B. Stratton, Esq., a partner at Pepper Hamilton, told the Court that he and Adam Hiller, Esq., will primarily handle the Debtor's case. Mr. Stratton's billing rate is US$540 per hour and Mr. Hiller's is US$350 per hour. The Firm's other professionals likely to be engaged in the case and their hourly rates are: Professional Hourly Rate ------------ ----------- Partners US$320 - US$690 Associates US$210 - US$345 Paraprofessionals US$80 - US$190 Mr. Stratton disclosed that Pepper Hamilton holds a US$215,209 administrative claim against the Debtor's estate for services and expenses incurred before and after the Debtor's bankruptcy filing. Mr. Stratton said that the Firm intends to apply the US$264,587 retainer it received from the Debtor to its administrative claim. In addition, the Firm was holding US$450,287 to fund severance and consulting obligations to the Debtor's employees and affiliates in Mexico. To the best of the Trustee's knowledge, Pepper Hamilton holds no interest adverse to the Debtor or the Chapter 7 estate and is disinterested as defined in Section 101(14) of the Bankruptcy Code. Headquartered in San Diego, California, LG.Philips Displays USA, Inc., is an indirect American affiliate of LG.Philips Displays Holding B.V. The company manufactures cathode ray tubes that are incorporated into television sets and computer monitors. The company filed for chapter 11 protection on Mar. 15, 2006 (Bankr. D. Del. Case No. 06-10245). Adam Hiller, Esq., at Pepper Hamilton LLP represents the Debtor in its restructuring efforts. Scott L. Hazan, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C., and Bonnie Glantz Fatell, Esq., at Blank Rome LLP represented the Official Committee of Unsecured Creditors. The Court converted the Debtor's case to a chapter 7 liquidation on May 25, 2006. Jeoffrey L. Burtch, Esq., serves as the Debtor's chapter 7 trustee, and is represented by Cooch & Taylor. When the Debtor sought protection from its creditors, it listed debts of more than US$100 million and assets between US$50 to US$100 million. PETROLEO BRASILEIRO: Asserts Interest in Producing Oil in Mexico ---------------------------------------------------------------- Mexico's president-elect, Felipe Calderon, and Petrobras' President, Jose Sergio Gabrielli de Azevedo, discussed a few possibilities to boost the Petroleo Brsileiro S.A. aka Petrobras' activities in Mexico. Mr. Gabrielli reasserted Petrobras' interest in working in Mexico as a deepwater oil and gas producer, in addition to developing projects outside of the country in partnership with Pemex, the Mexican national oil company. He considered the meeting "quite positive." The Brazilian company's operation in Mexico is currently limited to a gas production service-rendering agreement, and to an agreement of cooperation with the Mexican national oil company. One of the themes that were discussed was deepwater oil exploration and production, an activity Petrobras is a leader in and in which it already performs in the American side of the Gulf of Mexico, and in other countries. Pres. Calderon also showed interest in getting to know the Brazilian experience in using ethanol and biodiesel as fuels. Mexico's president-elect also asked for details about the current Brazilian oil industry legislation, regarding the impact recent changes have had on Petrobras' activities and management, as well as about several types of shared production agreements practiced around the world. 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. SATELITES MEXICANOS: Can Hire Ordinary Course Professionals ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York granted authority to Satelites Mexicanos, S.A. de C.V., to employ professionals to provide services in the ordinary course of business. The Court directed the Ordinary Course Professionals to serve on the Office of the U.S. Trustee for Region 2 and the Debtor, and file with the Court: (i) an affidavit certifying that the professional does not represent or hold any interest adverse to the Debtor or to the estate with respect to the matter on which it is to be employed; and (ii) a completed retention questionnaire. On Sept. 22, 2006, 16 Ordinary Course Professionals filed affidavits and completed questionnaires with the Court: 1. Vinson & Elkins L.L.P.; 2. Despacho Acuna Y Asociados, S.C.; 3. Gerardo Ayala Aranda; 4. Biaggi & Messina; 5. Bufete Hernandez Romo; 6. Bufete Yllanes Ramos, S.C.; 7. Galaz, Yamazaki, Ruiz Urquiza, S.C.; 8. Garcia & Bodan (Nicaragua); 9. Jose Carlos de Magalhaes Advogados Associados; 10. Rizo, Armida Y Asociados, S.C.; 11. SCI, S.A. de C.V.; 12. Thompson & Knight Abogados, S.C.; 13. Tozzini, Freire, Teixeira e Silva Advogados; 14. Villegas, Cassis Y Asociados, S.C.; 15. Garcia Y Garcia Abogados; and 16. Telecomm Strategies, Inc. The Ordinary Course Professionals advise the Court that they may have performed services in the past and may perform services in the future to certain parties-in-interest on matters unrelated to the Debtor's Chapter 11 case. The firms, however, assured the Court that they do not perform services for any parties in connection with the Debtor's case. Timothy F. Foarde, Esq., a partner at Vinson & Elkins, L.L.P., in New York, reports that the Debtor owes his firm US$32,073 for services prior to the filing for chapter 11 protection. Matthew S. Barr, Esq., at Milbank, Tweed, Hadley & McCloy, LLP, informs the Court that the Debtor will employ two more Ordinary Course Professionals: 1. Chevez, Ruiz, Zamarrita y Cia., S.C., as Mexican Tax Law advisor; and 2. Consultora Federal de Comunicaciones, as consultant on corporate affairs in Argentina. As reported in the Troubled Company Reporter on Aug. 30, 2006 the Debtor proposes to pay each Ordinary Course Professional, without a prior application to the Court, 100% of its fees and disbursements incurred up to either: (a) US$50,000 per month; or (b) US$500,000 during the pendency of the Chapter 11 case. Ordinary Course Professionals seeking more than US$50,000 in a single month while the Debtor is in Chapter 11, or US$500,000 during the pendency of the Chapter 11 case will be required to file a fee application for the full amount of their fees. Satelites Mexicanos, S.A. de C.V., provides fixed satellite services in Mexico. Satmex provides transponder capacity via its satellites to customers for distribution of network and cable television programming, direct-to-home television service, on-site transmission of live news reports, sporting events and other video feeds. Satmex also provides satellite transmission capacity to telecommunications service providers for public telephone networks in Mexico and elsewhere and to corporate customers for their private business networks with data, voice and video applications. Satmex also provides the government of the United Mexican States with approximately 7% of its satellite capacity for national security and public purposes without charge, under the terms of the Orbital Concessions. The Debtor filed for chapter 11 petition on August 11, 2006 (Bankr. S.D.N.Y. Case No. 06-11868). Luc A. Despins, Esq., at Milbank, Tweed Hadley & McCloy LLP represents the Debtor in the U.S. Bankruptcy proceedings. Attorneys from Galicia y Robles, S.C., and Quijano Cortina Lopez y de la Torre give legal advice in the Debtor's Mexican Bankrutpcy proceedings. UBS Securities LLC and Valor Consultores, S.A. de C.V., give financial advice to the Debtor. Steven Scheinman, Esq., Michael S. Stamer, Esq., and Shuba Satyaprasad, Esq., at Akin Gump Strauss Hauer & Feld LLP give legal advice to the Ad Hoc Existing Bondholders' Committee. Dennis Jenkins, Esq., and George W. Shuster, Jr., Esq., at Wilmer Cutler Pickering Hale and Dorr LLP give legal advice to Ad Hoc Senior Secured Noteholders' Committee. As of July 24, 2006, the Debtor has US$905,953,928 in total assets and US$743,473,721 in total liabilities. On May 25, 2005, certain holders of Satmex's Existing Bonds and Senior Secured Notes filed an involuntary chapter 11 petition against the Company (Bankr. S.D.N.Y. Case No. 05-13862). On June 29, 2005, Satmex filed a voluntary petition for a Mexican reorganization, known as a Concurso Mercantil, which was assigned to the Second Federal District Court for Civil Matters for the Federal District in Mexico City. On August 4, 2005, Satmex filed a petition, pursuant to Section 304 of the Bankruptcy Code to commence a case ancillary to the Concurso Proceeding and a motion for injunctive relief seeking, among other things, to enjoin actions against Satmex or its assets (Bankr. S.D.N.Y. Case No. 05-16103). (Satmex Bankruptcy News, Issue No. 7; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). STEELCASE INC: Declares US$0.12 Per Share Cash Dividend ------------------------------------------------------- The Board of Directors of Steelcase Inc. today declared a quarterly cash dividend of US$0.12 per share to be paid on or before Oct. 23, 2006, to shareholders of record as of Oct. 13, 2006. This dividend rate is the highest since Steelcase became publicly traded in 1998. The Steelcase Board of Directors also approved an increase of the company's share repurchase program by US$100 million. This increase is in addition to the approximately 2.2 million shares remaining under previous authorizations. Steelcase has approximately 149 million shares outstanding. "Steelcase has steadily strengthened its cash position while continuing to make the necessary investment in our business," said James P. Hackett, president and CEO. "We're confident we have sufficient cash flows to invest in our growth strategies while increasing our cash dividend and our share repurchase program to return value to our shareholders." Headquartered in Grand Rapids, Michigan, Steelcase, Inc., (NYSE: SCS) -- http://www.steelcase.com/-- designs and manufactures architecture, furniture and technology products. Founded in 1912, Steelcase serves customers through a network of more than 800 independent dealers and approximately 13,000 employees worldwide including Brazil and Mexico in Latin America. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 4, 2006, 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 sector, the rating agency confirmed its Ba1 Corporate Family Rating for Steelcase, Inc. and its Ba1 rating on the company's US$250 million senior unsecured notes. Additionally, Moody's assigned an LGD4 rating to those bonds, suggesting noteholders will experience a 59% loss in the event of a default. TV AZTECA: Telemundo Counters Firm's Charges in US Federal Court ---------------------------------------------------------------- Telemundo has filed charges against TV Azteca in the US federal court in Miami for the latter's wrongful use of force to halt the production of the reality show "Quineanera" in Mexico, Reuters reports. As previously reported in the Troubled Company Reporter-Latin America on Oct. 2, 2006, the production of Telmundo show Quinceanera was stopped abruptly when a delegation from TV Azteca de C.V. -- along with police officers, reporters, cameramen, lawyers and security guards -- came into their studio, accompanying a court clerk carrying a judge's order to temporarily stop work and impound the equipment. TV Azteca had sued Nostromo Producciones and Alan Tacher Feingold -- the host of Quinceanera -- in August for breach of contract, saying that the two violated the February 2005 accords to work exclusively for TV Azteca unless they obtain permission. TV Azteca alleged that Nostromo was producing La Academia -- TV Azteca's hit talent reality show -- in 2005 when it abandoned the production on Nov. 30. Rival Telemundo said that it was not aware of the lawsuit. Telemundo, however, admitted that it knew of an earlier similar suit TV Azteca had tried to file in Miami. Telemundo filed a counterclaim, seeking unspecified damages for wrongful use of force, Reuters states. TV Azteca is one of the two largest producers of Spanish- language television programming in the world, operating two national television networks in Mexico -- Azteca 13 and Azteca 7 -- through more than 300 owned and operated stations across the country. TV Azteca affiliates include Azteca America Network, a new broadcast television network focused on the rapidly growing US Hispanic market, and Todito, an Internet portal for North American Spanish speakers. * * * Moody's Investor Services rated TV Azteca's senior unsecured debt at B1. TV AZTECA: Won't Withdraw Suit to Shut Down Quinceanera Show ------------------------------------------------------------ TV Azteca is firm in its decision to halt the production of Telemundo's Quinceanera reality show, as part of its legal dispute with Nostromo production company and Alan Tacher, the show's host, World Screen reports. As previously reported in the Troubled Company Reporter-Latin America on Oct. 2, 2006, the production of Telmundo show Quinceanera was stopped abruptly when a delegation from TV Azteca de C.V. -- along with police officers, reporters, cameramen, lawyers and security guards -- came into their studio, accompanying a court clerk carrying a judge's order to temporarily stop work and impound the equipment. TV Azteca had sued Nostromo Producciones and Alan Tacher Feingold -- the host of Quinceanera -- in August for breach of contract, saying that the two violated the February 2005 accords to work exclusively for TV Azteca unless they obtain permission. TV Azteca alleged that Nostromo was producing La Academia -- TV Azteca's hit talent reality show -- in 2005 when it abandoned the production on Nov. 30. Rival Telemundo said that it was not aware of the lawsuit. Telemundo, however, admitted that it knew of an earlier similar suit TV Azteca had tried to file in Miami. According to a statement by Telemundo, TV Azteca has used unjustified force and intimidation, which shuttered the production of the show at Foros Ajusco. TV Azteca said in a statement in September, "The process, a common practice in both US and Mexico, was conducted in a peaceful manner by the public authorities and in the presence of legal teams representing Nostromo, Foros Ajusco and TV Azteca." "The company reiterates that its decision to demand contract fulfillment from Mr. Tacher and Nostromo is well within its legal rights and includes an obligation to protect its intellectual property and other rights. Telemundo was aware of Tacher and Nostromo's contractual obligations as detailed in a July 28 letter from TV Azteca that was delivered to Telemundo. However, TV Azteca noted that these proceedings are not against Telemundo. Don Browne, president of Telemundo, confirmed the TV Azteca position that there is no conflict between the companies during a recent press conference in Mexico," a TV Azteca statement says. TV Azteca is one of the two largest producers of Spanish- language television programming in the world, operating two national television networks in Mexico -- Azteca 13 and Azteca 7 -- through more than 300 owned and operated stations across the country. TV Azteca affiliates include Azteca America Network, a new broadcast television network focused on the rapidly growing US Hispanic market, and Todito, an Internet portal for North American Spanish speakers. * * * Moody's Investor Services rated TV Azteca's senior unsecured debt at B1. ================= N I C A R A G U A ================= PETROLEOS DE VENEZEULA: Sends Discounted Fuel to Nicaragua ---------------------------------------------------------- Petroleos de Venezuela SA, the state-run oil firm of Venezuela, has fulfilled its promise of delivering discounted diesel fuel to Nicaragua on Oct. 7, Reuters reports. As reported in the Troubled Company Reporter-Latin America on Oct. 6, 2006, Dionision Marenco -- the mayor of Managua, Nicaragua -- said that Petroleos de Venezuela SA would be sending about 304,000 liters of diesel to Nicaragua on Oct. 7. Mayor Marenco said that the diesel would be apportioned among three transportation cooperative groups based in Managua, in possession of over 50% of public transportation vehicles in the capital city. The fuel would be sold at preferential prices, as long as fares be lowered to US$0.14 from US$0.17. As agreed, Nicaragua would first pay 60% of the price for the diesel. The remaining 40% will be repaid within 25 years, at a 1% interest rate. It would have two years of grace. The deal between Petroleos de Venezuela and the Nicaraguan mayors gives Nicaraguan municipalities access to 10 million barrels of oil or oil derivatives yearly at preferential terms, Reuters says. According to Reuters, Nicaragua has suffered an energy crisis due to increasing world oil prices. It has been experiencing daily power cuts. Mr. Ortega told Reuters that the fuel would go straight to a power plant so that the country can start resolving this problem. Reuters relates that Venezuela's President Hugo Chavez sent the diesel fuel to show his support for Daniel Ortega, Nicaragua's leftist leader, before a Nov. 5 presidential election. Critics told Reuters that President Chavez was trying to influence Nicaragua's electorate behind Mr. Ortega with the oil deal. He also sent cheap fertilizer to Sandinista-affiliated cooperatives. Petroleos de Venezuela SA 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. * * * Standard & Poor's said on July 17 that it may lower the company's B+ foreign-currency debt rating in part because of the absence of timely financial and operating information. =========== P A N A M A =========== CHIQUITA BRANDS: Gets Waiver from Lenders on Sr. Credit Facility ---------------------------------------------------------------- Chiquita Brands International, Inc., and Chiquita Brands LLC, its main operating subsidiary, entered into Waiver Letter No. 1 with the lenders under the credit agreement dated as of June 28, 2005, on Oct. 5, 2006. In accordance with the terms and conditions under the waiver letter, compliance with certain financial covenant provisions in the Credit Agreement has been waived through Dec. 15, 2006. Chiquita sought to obtain a waiver from its lenders to provide additional flexibility in light of the current challenging market environment facing the Company. The Company will evaluate and seek a more permanent waiver or amendment during the term of the temporary waiver. A full-text copy of Waiver Letter No. 1 to the Credit Agreement, among Chiquita and certain financial institutions as lenders, and Wachovia Bank, National Association, as administrative agent, is available for free at http://researcharchives.com/t/s?1323 About Chiquita Cincinnati, Ohio-based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- markets and distributes fresh food products including bananas and nutritious blends of green salads. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide including Panaman in Latin America. * * * As reported in the Troubled Company Reporter on Oct. 3, 2006, Moody's Investors Service affirmed all ratings for Chiquita Brands L.L.C. (senior secured at Ba3), as well as for its parent Chiquita Brands International, Inc. (corporate family rating at B2), but changed the outlook to negative from stable. This action followed the company's announcement that its operating performance continues to be negatively impacted by lower pricing in key European and trading markets, as well as excess fruit supply. Cincinnati, Ohio- based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- operates as an international marketer and distributor of bananas and other fresh produce sold under the Chiquita and other brand names in over 60 countries including Panama. It also distributes and markets fresh-cut fruit and other branded, value-added fruit products. On June 15, 2006, Standard & Poor's Ratings Services affirmed its ratings on Cincinnati, Ohio-based Chiquita Brands International Inc., including the 'B+' corporate credit rating. S&P said the rating outlook is negative. ===================== P U E R T O R I C O ===================== BURGER KING: Repays Additional US$35 Million in Debt ---------------------------------------------------- Burger King Holdings Inc. has retired an additional US$35 million in debt, using cash generated from operations. Since the company's IPO on May 18, the company has retired a total of US$435 million in debt, reducing its debt level by more than 30%. On May 26, approximately US$350 million of the US$392 million in net proceeds raised in the IPO was used to retire debt. On Monday, July 31, the company retired an additional US$50 million in debt, also using cash generated from operations. Chief Financial Officer Ben Wells said, "Our operational cash flow continues to be strong and has enabled us to pay down US$85 million in debt during the first four months of our 2007 fiscal year. This reduced debt level strengthens our balance sheet and gives us greater flexibility in financial markets. Additionally, our deleveraging will increase cash flow for investment spending, which, in the long term, will benefit our shareholders and investors." About Burger King The Burger King(R) system (NYSE: BKC) -- http://www.bk.com/-- operates more than 11,100 restaurants in all 50 states and in more than 65 countries and U.S. territories worldwide. Approximately 90% of BURGER KING restaurants are owned and operated by independent franchisees, many of them family-owned operations that have been in business for decades. Burger King Corp. operates restaurants in the Latin American, Caribbean and Mexican Region. The company's first international restaurant opened in 1963 in Puerto Rico. Since 1994, Burger King has opened more than 300 restaurants in the Latin American region, producing some of the strongest comparable store sales growth for the brand around the world. Burger King(R) restaurants in Latin America serve approximately 1,600 customers per day each, making them some of the highest volume restaurants in the system. * * * As reported in the Troubled Company Reporter on June 23, 2006, Fitch assigned initial ratings for Burger King Corp., the world's second largest fast food hamburger restaurant chain. Fitch assigned the Company its 'B+' Issuer Default Rating. Fitch also rated the Company's US$150 million revolving credit facility maturing June 2011; and US$967 million aggregate remaining term loan A and B outstandings maturing June 2011 and June 2012, respectively, at 'BB/RR2'. Fitch said that the Outlook on all Ratings is Positive. * * * On Sept. 8, 2006, Standard & Poor's Ratings Services raised the corporate credit and senior secured debt ratings on Miami-based quick-service operator Burger King Corp. to 'BB-' from 'B+'. ELBA RODRIGUEZ: Case Summary & Seven Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Elba Rivera Rodriguez P.O. Box 52106 Toa Baja, PR 00950 Bankruptcy Case No.: 06-03755 Type of Business: The Debtor is a shareholder of Boulevard Pharmacy Corp., which filed for chapter 11 protection on December 14, 2005 (Bankr. D. P.R. Case No. 05-13064). Chapter 11 Petition Date: October 5, 2006 Court: District of Puerto Rico (Old San Juan) Debtor's Counsel: Winston Vidal-Gambaro, Esq. Winston Vidal Law Office P.O. Box 193673 San Juan, PR 00919-3673 Tel: (787) 751-2864 Fax: (787) 763-6114 Total Assets: US$109,629 Total Debts: US$1,477,200 Debtor's Seven Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Banco Popular de Puerto Rico Bank Loan US$1,356,572 Division Department de Quiebras P.O. Box 362708 San Juan, PR 00936-2708 Luis Ernesto Franco Trade Debt US$66,300 P.O. Box 192201 San Juan, PR 00919 Cooperativa Ahorro y Bank Loan US$20,825 Credito de Arecibo P.O. Box 1056 Arecibo, PR 00613-1056 Banco Santander Puerto Rico Bank Loan US$17,693 P.O. Box 362589 San Juan, PR 00936-2589 Cooperativa Ahorro y Bank Loan US$9,266 Credito Pepiniana P.O. Box 572 San Sebastian, PR 00685 Citi Card Trade Debt US$1,281 Jose A. Torres Ortiz Trade Debt US$1 OCA INC: Iowa Unit Files Schedules of Assets & Liabilities ---------------------------------------------------------- Orthodontic Centers of Iowa, Inc., OCA Inc.'s debtor-affiliate, delivered its schedules of assets and liabilities to the U.S. Bankruptcy Court for the Eastern District of Louisiana, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property B. Personal Property US$132,033 C. Property Claimed as Exempt D. Creditors Holding US$92,225,022 Secured Claims E. Creditors Holding Unsecured Priority Claims US$1,935 F. Creditors Holding US$15,606 Unsecured Nonpriority Claims -------- ----------- Total US$132,033 US$92,242,563 Based in Metairie, Louisiana, OCA, Inc. -- http://www.ocai.com/ -- provides a full range of operational, purchasing, financial, marketing, administrative and other business services, as well as capital and proprietary information systems to approximately 200 orthodontic and dental practices representing approximately almost 400 offices. The Debtor's client practices provide treatment to patients throughout the United States and in Japan, Mexico, Spain, Brazil and Puerto Rico. The Debtor and its debtor-affiliates filed for Chapter 11 protection on March 14, 2006 (Bankr. E.D. La. Case No. 06-10179). Three debtor-affiliates also filed for bankruptcy protection on June 1, 2006 (Bankr. E.D. La. Case No. 06-10503). William H. Patrick, III, Esq., at Heller Draper Hayden Patrick & Horn, LLC, represents the Debtors. Patrick S. Garrity, Esq., and William E. Steffes, Esq., at Steffes Vingiello & McKenzie LLC represent the Official Committee of Unsecured Creditors. Carmen H. Lonstein, Esq., at Bell Boyd & Lloyd LLC and Robin B. Cheatham, Esq., at Adams and Reese LLP represent the Official Committee of Equity Security Holders. When the Debtors filed for protection from their creditors, they listed US$545,220,000 in total assets and US$196,337,000 in total debts. ================= V E N E Z U E L A ================= PEABODY ENERGY: Moody's Rates US$900 Million Senior Notes at Ba1 ---------------------------------------------------------------- Moody's Investors Service assigned a Ba1 senior unsecured rating to Peabody Energy Corp.'s proposed US$900 million senior notes issue. At the same time Moody's affirmed Peabody's Ba1 corporate family rating and the Ba1 senior unsecured rating on its existing notes. The ratings reflect both the overall probability of default of the company, to which Moody's assigns a PDR of Ba1, and a loss given default of LGD 4 for the senior unsecured notes. Moody's also affirmed Peabody's SGL-1 Speculative Grade Liquidity rating. The rating outlook remains negative. The proceeds of the US$900 million senior notes, along with drawings under the revolver and term loan, are being used to fund Peabody's acquisition of Australian coal miner, Excel Corporation, for US$1.9 billion, including assumption of debt and fees. The Ba1 corporate family rating reflects Peabody's 1) currently low leverage ratio and good earnings ratios, 2) diversified low-cost operations, 3) extensive and geographically diversified reserves of high quality coal, 4) strong management, and 5) portfolio of long-term coal supply agreements with a large number of electricity generation customers. However, the rating also reflects the US$1.9 billion increase in debt to be incurred to fund the Excel acquisition, which will increase the company's pro forma June 30, 2006 debt to EBITDA ratio to 3.2x from 2.1x based on an annualization of Excel's most recent six month EBITDA. The rating also considers the volatile nature of the coal mining business, and operating and development cost pressures that could constrain Peabody's free cash flow. Moody's last rating action on Peabody was in September 2006 when it assigned a Ba1 senior unsecured rating to the revolver and term loan A, and raised the senior unsecured rating to Ba1. Peabody Energy Corp., headquartered in St. Louis, Missouri, is the world's largest private-sector coal company with revenues in 2005 of US$4.6 billion. PETROLEOS DE VENEZUELA: Halts Gasoline Export to Cuba & the U.S. ---------------------------------------------------------------- Due to continuing refinery problems, Venezuela's state-owned oil firm Petroleos de Venezuela S.A., suspended its gasoline exports to Cuba and the United States for the month of October, operators and ship agents told Reuters. Reports say Petroleos de Venezuela encountered electrical problems in its 54,000 bpd catalytic cracker in the El Palito refinery and operational problems in its Puerto La Cruz refinery. "We are expecting close to zero exports from Venezuela this month," a term buyer told Reuters. "It is not surprising that there would be no gasoline exports in October because the export flow has been slowing down in the past few months." Meanwhile, shipments to small gasoline cargoes from Curacao to the Dominican Republic, Haiti and Jamaica will continue, a ship broker told Reuters. Venezuela exported in July around 51,000 bpd of gasoline to the US, which was in need of about nine million bpd. The country also exports four cargoes of gasoline to Cuba on a monthly basis. "It is not surprising to hear about the export problems after PDVSA bought gasoline in the open market late last week," an oil trader told Reuters, referring to the 300,000 barrels of gasoline that Petroleos de Venezuela bought from BP Plc to make up for its mid-October lifting. The suspended shipment of gasoline to Cuba was confirmed by a source close to Petroleos de Venezuela, however, the reported stoppage of shipment to the US was refuted by a company statement from Asdrubal Chavez, the executive marketing director of the state firm, Bloomberg reports. Mr. Chavez said in a statement, "The shutdowns in our refinery circuit haven't affected deliveries to our clients." Bloomberg underscores that Petroleos de Venezuela will restart operations of its El Palito catalytic cracker, which makes gasoline components, within days. The refinery outages have increased since a 2002-2003 protest aimed at ousting President Hugo Chavez that resulted to Petroleos de Venezuela to dismiss more than half of its workers, former managers of Petroleos de Venezuela told Bloomberg. Petroleos de Venezuela SA 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. * * * Standard & Poor's said on July 17 that it may lower the company's B+ foreign-currency debt rating in part because of the absence of timely financial and operating information. * LatinFinance Ranks LatAm Countries According to Sustainability ---------------------------------------------------------------- Brazil is Latin America's leader in corporate governance due to a strong private sector and recent laws for shareholder rights, although it is still weak in corruption, education and GDP per capita, among other areas. Chile scores best overall except under environmental performance and Argentina compensates weak economic data with strengths in educational and social performance. These are among the results of the 2006 edition of the annual study and ranking of Latin America's most sustainable nations, covering over 50 areas of mainly public sector performance released by the Madrid-based sustainability rating agency Management & Excellence and LatinFinance in Miami. The ranking is the only one of its kind assessing economic, political, social, corruption, environmental and legal data of eight of Latin America's largest countries. Among the surprises is Argentina's overall performance, passing Mexico despite its high debt. Argentina benefits not only from the best educational performance, but from good numbers in human rights, political liberties, life expectancy and quality of life. POSITION COUNTRY SCORE 1 Chile 69% 2 Argentina 55% 3 Mexico 53% 4 Venezuela 49% 5 Brazil 48% 5 Colombia 48% 7 Ecuador 35% 8 Peru 31% Chile is best in most areas, with the lowest corruption, best economic data, lowest poverty levels and low human rights abuses, but highest pollution. Mexico slipped behind Argentina this year despite having the best economic numbers and ambitious reforms in corporate governance, due to weaknesses in education and corruption. Brazil did not benefit very much from its strong private sector in this study of mainly public performance data. Its literacy and GDP per capita, for example, are among the lowest in the study. Venezuela benefited in some of its key economic numbers from high oil prices and relatively low corruption perception while Colombia improved its performance in corruption, thus putting it in 5th place with Brazil. * BOND PRICING: For the week of October 2 -- October 6, 2006 ------------------------------------------------------------ Issuer Coupon Maturity Price ------ ------ -------- ----- ABC Rail Product 10.500% 01/15/04 1 ABC Rail Product 10.500% 12/31/04 1 Adelphia Comm. 3.250% 05/01/21 0 Adelphia Comm. 6.000% 02/15/06 1 Adelphia Comm. 7.500% 01/15/04 63 Adelphia Comm. 7.750% 01/15/09 65 Adelphia Comm. 7.875% 05/01/09 65 Adelphia Comm. 8.125% 07/15/03 66 Adelphia Comm. 8.375% 02/01/08 66 Adelphia Comm. 9.250% 10/01/02 61 Adelphia Comm. 9.375% 11/15/09 69 Adelphia Comm. 9.500% 02/15/04 63 Adelphia Comm. 9.875% 03/01/05 65 Adelphia Comm. 9.875% 03/01/07 65 Adelphia Comm. 10.250% 06/15/11 70 Adelphia Comm. 10.250% 11/01/06 63 Adelphia Comm. 10.500% 07/15/04 65 Adelphia Comm. 10.875% 10/01/10 66 Allegiance Tel. 11.750% 02/15/08 47 Allegiance Tel. 12.875% 05/15/08 48 Amer & Forgn Pwr 5.000% 03/01/30 67 Amer Color Graph 10.000% 06/15/10 69 Antigenics 5.250% 02/01/25 64 Anvil Knitwear 10.875% 03/15/07 72 Archibald Candy 10.000% 11/01/07 0 Armstrong World 6.350% 08/15/03 68 Armstrong World 6.500% 08/15/05 68 Armstrong World 7.450% 05/15/29 66 Armstrong World 9.000% 06/15/04 66 ATA Holdings 13.000% 02/01/09 4 Autocam Corp. 10.875% 06/15/14 62 Avado Brands Inc 11.750% 06/15/09 1 Bank New England 8.750% 04/01/99 5 Bank New England 9.500% 02/15/96 13 BBN Corp 6.000% 04/01/12 0 Burlington North 3.200% 01/01/45 58 Calpine Corp 4.750% 11/15/23 48 Calpine Corp 6.000% 09/30/14 39 Calpine Corp 7.625% 04/15/06 72 Calpine Corp 7.750% 04/15/09 72 Calpine Corp 7.750% 06/01/15 37 Calpine Corp 7.875% 04/01/08 72 Calpine Corp 8.500% 02/15/11 49 Calpine Corp 8.625% 08/15/10 48 Calpine Corp 8.750% 07/15/07 73 Calpine Corp 10.500% 05/15/06 72 Cell Therapeutic 5.750% 06/15/08 70 Charter Comm Hld 10.000% 05/15/11 75 Chic East Ill RR 5.000% 01/01/54 56 CIH 9.920% 04/01/14 70 CIH 10.000% 05/15/14 69 CIH 11.125% 01/15/14 71 Clark Material 10.750% 11/15/06 0 Collins & Aikman 10.750% 12/31/11 3 Columbia/HCA 7.050% 12/01/27 72 Columbia/HCA 7.500% 11/15/95 72 Comcast Corp 2.000% 10/15/29 41 Comprehens Care 7.500% 04/15/10 65 Cooper Standard 8.375% 12/15/14 74 Cray Research 6.125% 02/01/11 5 Dal-Dflt09/05 9.000% 05/15/16 31 Dana Corp 5.850% 01/15/15 65 Dana Corp 6.500% 03/01/09 71 Dana Corp 6.500% 03/15/08 72 Dana Corp 7.000% 03/01/29 69 Dana Corp 7.000% 03/15/28 69 Dana Corp 9.000% 08/15/11 69 Dana Corp 10.125% 03/15/10 72 Delco Remy Intl 9.375% 04/15/12 42 Delco Remy Intl 11.000% 05/01/09 52 Delphi Trust II 6.197% 11/15/33 70 Delta Air Lines 2.875% 02/18/24 30 Delta Air Lines 7.700% 12/15/05 29 Delta Air Lines 7.900% 12/15/09 30 Delta Air Lines 8.000% 06/03/23 31 Delta Air Lines 8.300% 12/15/29 31 Delta Air Lines 9.250% 03/15/22 31 Delta Air Lines 9.250% 12/27/07 29 Delta Air Lines 9.750% 05/15/21 31 Delta Air Lines 10.000% 06/01/08 56 Delta Air Lines 10.000% 06/05/13 74 Delta Air Lines 10.000% 08/15/08 32 Delta Air Lines 10.060% 01/02/16 73 Delta Air Lines 10.080% 06/16/07 65 Delta Air Lines 10.125% 05/15/10 29 Delta Air Lines 10.375% 02/01/11 30 Delta Air Lines 10.375% 12/15/22 29 Deutsche Bank NY 8.500% 11/15/16 72 Diamond Triumph 9.250% 04/01/08 71 Diva Systems 12.625% 03/01/08 1 Dov Pharmaceutic 2.500% 01/15/25 57 Dura Operating 8.625% 04/15/12 38 Dura Operating 9.000% 05/01/09 4 Duty Free Int'l 7.000% 01/15/04 0 DVI Inc 9.875% 02/01/04 8 Dyersburg Corp 9.750% 09/01/07 0 Eagle-Picher Inc 9.750% 09/01/13 74 Empire Gas Corp 9.000% 12/31/07 1 Encysive Pharmac 2.500% 03/15/12 73 Epix Medical Inc. 3.000% 06/15/24 70 Exodus Comm Inc 10.750% 12/12/09 0 Exodus Comm Inc 11.625% 07/15/10 0 Fedders North AM 9.875% 03/01/14 66 Federal-Mogul Co. 7.375% 01/15/06 57 Federal-Mogul Co. 7.500% 01/15/09 58 Federal-Mogul Co. 8.160% 03/06/03 50 Federal-Mogul Co. 8.330% 11/15/01 58 Federal-Mogul Co. 8.370% 11/15/01 53 Federal-Mogul Co. 8.800% 04/15/07 59 Finova Group 7.500% 11/15/09 29 Ford Motor Co 6.500% 08/01/18 75 Ford Motor Co 6.625% 02/15/28 74 Ford Motor Co 7.125% 11/15/25 75 Ford Motor Co 7.400% 11/01/46 73 Ford Motor Co 7.500% 08/01/26 75 Ford Motor Co 7.700% 05/15/97 72 Ford Motor Co 7.750% 06/15/43 74 GB Property Fndg 11.000% 09/29/05 51 Golden Books Pub 10.750% 12/31/04 0 Graftech Intl 1.625% 01/15/24 73 GST Network Fndg 10.500% 05/01/08 0 Gulf Mobile Ohio 5.000% 12/01/56 75 Gulf States Stl 13.500% 04/15/03 0 HNG Internorth 9.625% 03/15/06 38 Home Prod Intl 9.625% 05/15/08 60 Inland Fiber 9.625% 11/15/07 65 Insight Health 9.875% 11/01/11 31 Iridium LLC/CAP 10.875% 07/15/05 25 Iridium LLC/CAP 11.250% 07/15/05 27 Iridium LLC/CAP 13.000% 07/15/05 29 Iridium LLC/CAP 14.000% 07/15/05 25 Isolagen Inc. 3.500% 11/01/24 74 JTS Corp 5.250% 04/29/02 0 K&F Industries 9.625% 12/15/10 70 Kaiser Aluminum 9.875% 02/15/02 33 Kaiser Aluminum 12.750% 02/01/03 9 Kellstrom Inds 5.500% 06/15/03 0 Kmart Corp 8.540% 01/02/15 28 Kmart Corp 8.990% 07/05/10 4 Kmart Corp 9.350% 01/02/20 10 Kmart Funding 8.800% 07/01/10 30 Kmart Funding 9.440% 07/01/18 18 Liberty Media 3.750% 02/15/30 60 Liberty Media 4.000% 11/15/29 67 Lifecare Holding 9.250% 08/15/13 71 Macsaver Financl 7.400% 02/15/02 4 Macsaver Financl 7.600% 08/01/07 3 Macsaver Financl 7.875% 08/01/03 0 Merisant Co 9.500% 07/15/13 64 Movie Gallery 11.000% 05/01/12 66 MSX Int'l Inc. 11.375% 01/15/08 70 Muzak LLC 9.875% 03/15/09 64 New Orl Grt N RR 5.000% 07/01/32 69 Northern Pacific RY 3.000% 01/01/47 58 Northern Pacific RY 3.000% 01/01/47 58 Northwest Airlines 6.625% 05/15/23 55 Northwest Airlines 7.248% 01/02/12 20 Northwest Airlines 7.625% 11/15/23 56 Northwest Airlines 7.875% 03/15/08 53 Northwest Airlines 8.700% 03/15/07 54 Northwest Airlines 8.875% 06/01/06 54 Northwest Airlines 9.152% 04/01/10 7 Northwest Airlines 9.179% 04/01/10 23 Northwest Airlines 9.875% 03/15/07 58 Northwest Airlines 10.000% 02/01/09 56 NTK Holdings Inc 10.750% 03/01/14 70 Nutritional Src 10.125% 08/01/09 66 Oakwood Homes 7.875% 03/01/04 9 Oakwood Homes 8.125% 03/01/09 5 Oscient Pharm 3.500% 04/15/11 67 OSU-DFLT10/05 13.375% 10/15/09 0 Outboard Marine 9.125% 04/15/17 0 Outboard Marine 10.750% 06/01/08 4 Overstock.com 3.750% 12/01/11 74 Owens Corning 7.000% 03/15/09 52 Owens Corning 7.500% 05/01/05 53 Owens Corning 7.500% 08/01/18 53 Owens Corning 7.700% 05/01/08 53 Owens-Corning Fiber 8.875% 06/01/02 48 Pac-West-Tender 13.500% 02/01/09 65 PCA LLC/PCA Fin 11.875% 08/01/09 25 Pegasus Satellite 9.625% 10/15/49 11 Pegasus Satellite 9.750% 12/01/06 11 Pegasus Satellite 12.375% 08/01/06 11 Pegasus Satellite 13.500% 03/01/07 0 Phar-mor Inc 11.720% 09/11/02 0 Piedmont Aviat 10.250% 01/15/49 1 Piedmont Aviat 10.250% 01/15/49 3 Pixelworks Inc 1.750% 05/15/24 71 Plainwell Inc 11.000% 03/01/08 2 Pliant Corp 13.000% 07/15/10 40 Primus Telecom 3.750% 09/15/10 47 Primus Telecom 8.000% 01/15/14 62 PSINET Inc 10.500% 12/01/06 0 PSINET Inc 11.000% 08/01/09 0 Radnor Holdings 11.000% 03/15/10 12 Railworks Corp 11.500% 04/15/09 1 Read-Rite Corp. 6.500% 09/01/04 6 Rite Aid Corp 6.875% 12/15/28 73 RJ Tower Corp. 12.000% 06/01/13 20 Rotech HealthCare 9.500% 04/01/12 70 Salton Inc 12.250% 04/15/08 70 Solectron Corp 0.500% 02/15/34 73 Toys R Us 7.375% 10/15/18 72 Tribune Co 2.000% 05/15/29 65 Triton Pcs Inc. 8.750% 11/15/11 73 Tropical Sportsw 11.000% 06/15/08 7 United Air Lines 7.270% 01/30/13 56 United Air Lines 7.870% 01/30/19 54 United Air Lines 8.700% 10/07/08 39 United Air Lines 9.020% 04/19/12 56 United Air Lines 9.200% 03/22/08 49 United Air Lines 9.350% 04/07/16 33 United Air Lines 9.560% 10/19/18 61 United Air Lines 10.020% 03/22/14 49 United Air Lines 10.110% 01/05/06 3 United Air Lines 10.110% 02/19/49 41 US Air Inc. 10.700% 01/01/49 22 US Air Inc. 10.700% 01/15/49 23 US Air Inc. 10.750% 01/01/49 0 US Air Inc. 10.750% 01/15/49 24 USAutos Trust 5.100% 03/03/11 75 Venture Holdings 9.500% 07/01/05 1 Venture Holdings 11.000% 06/01/07 0 Vesta Insurance Group 8.750% 07/15/25 9 Werner Holdings 10.000% 11/15/07 10 Westpoint Steven 7.875% 06/15/05 0 Westpoint Steven 7.875% 06/15/08 0 Wheeling-Pitt St 6.000% 08/01/10 70 Winn-Dixie Store 8.875% 04/01/08 66 Winstar Comm Inc 12.750% 04/15/10 0 *********** 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 * * *