/raid1/www/Hosts/bankrupt/TCRLA_Public/061016.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
Monday, October 16, 2006, Vol. 7, Issue 205
Headlines
A R G E N T I N A
ANRE SRL: Deadline for Verification of Claims Is on Nov. 6
BALL CORP: Closing Two North American Manufacturing Facilities
BALLY TECH: Provides 920 Gaming Machines to Empire City
BANCO GALICIA: Shareholders Okay ARS100 Million Capital Increase
CISE SRL: Bankruptcy Proceeding Concluded
CONANA SACIM: Trustee Verifies Proofs of Claim Until Dec. 7
D & S SA: Trustee Verifies Creditors' Claims Until Nov. 27
PEREZ, STERLI: Last Day for Verification of Claims Is on Nov. 20
PETROBRAS ENERGIA: Officials May be Jailed Due to Fuel Shortages
TEDE CONSTRUCCIONES: Claims Verification Deadline Is on Nov. 8
B A H A M A S
COMPLETE RETREATS: Ableco's Financing Commitment Letter Approved
COMPLETE RETREATS: Inks US$80MM DIP Financing Pact with Ableco
WINN-DIXIE: Unseals Substantive Consolidation Documents
WINN-DIXIE: Wants to Sell Live Oak Outparcel to Ronnie Poole
B E L I Z E
* BELIZE: Council Disclosing Accomplishments & Plans for City
* BELIZE: Natural Energy Finds Oil in Five Wells
B E R M U D A
ASIAN SELECTION: Proofs of Claim Must be Submitted by Oct. 18
COMPUTER INSURANCE: Proofs of Claim Filing Is Until Oct. 18
MAN MULTI: Last Day for Proofs of Claim Filing Is on Oct. 20
REFCO INC: Chap. 7 Trustee Wants Rogers Funds Claims Pact Okayed
REFCO INC: Wants Solicitation & Tabulation Procedures Approved
SEA CONTAINERS: Case Summary & 20 Largest Unsecured Creditors
SEA CONTAINERS: Files for Bankruptcy Protection in Delaware
B R A Z I L
BANCO DO BRASIL: Workers Accept 3.5% Pay Hike from Fenaban
BANCO INDUSTRIAL: Inter-American Investment to Okay Two Loans
CAIXA ECONOMICA: Workers Accept 3.5% Pay Hike from Fenaban
FREESCALE: Updates Progress on STMicroelectronics Joint Program
PHARMANET DEVELOPMENT: Amends Revolving Credit Agreement
PHARMANET DEVELOPMENT: Appoints P. Tombros & R. Classon to Board
PETROLEO BRASILEIRO: Fitch Rates US$500MM 6.125% Notes at BB+
PETROLEO BRASILEIRO: Starting Production at P-34 Oil Rig
SANMINA-SCI: Needs to Restate Historical Financial Statements
C A Y M A N I S L A N D S
ALLERWAY INVESTMENTS: Final Shareholders Meeting Is on Nov. 2
BLANCHFLOWER INVESTMENTS: Last Shareholders Meeting Is on Nov. 2
BURGUNDY LTD: Liquidator Presents Wind Up Accounts on Nov. 2
ETV LTD: Creditors Have Until Oct. 18 to File Proofs of Claim
KIKI CO: Invites Shareholders for Final Meeting on Nov. 2
MOON SHINE: Schedules Final Shareholders Meeting on Nov. 2
PRIDE & JOY: Shareholders Gather for Final Meeting on Nov. 2
SAMBA HOLDINGS: Shareholders Convene for Final Meeting on Nov. 2
SEVEN TOWERS: Final Shareholders Meeting Is Scheduled for Nov. 2
SYSTEIA FUTURES: Last Day to File Proofs of Claim Is on Oct. 27
YELLOW FILE: Calls Shareholders for Final Meeting on Nov. 2
C O L O M B I A
BANCO DEL CAFE: Davivienda Acquiring 99% of Firm for US$927MM
BANCOLOMBIA: Purchases Mortgage-Backed Securities TIPS
ECOPETROL: Bari Indian Natives Demand Halt to Oil Drilling
C O S T A R I C A
* COSTA RICA: Congress Talks on End of State Insurance Monopoly
D O M I N I C A N R E P U B L I C
BANCO INTERCONTINENTAL: Prosecutor Requests Central Bank Files
BANCO LEON: Posts DOP23,836 Million Reserves in Third Trimester
* DOMINICAN REPUBLIC: IMF May Extend Stand-by Agreement
E C U A D O R
DOLE FOOD: Restructuring Fresh Flower Business
PETROECUADOR: Two Firms Buy Bidding Rules for Esmeraldas Plant
H O N D U R A S
* HONDURAS: Government Demands Lower Sugar Prices
* HONDURAS: Comision Administradora Releases Procurement Guide
J A M A I C A
* JAMAICA: Trade Deficit for First Half of 2006 Drops 2.3%
M E X I C O
DOMINO'S PIZZA: Sept. 10 Balance Sheet Upside Down by US$592MM
EL POLLO: Terminates Tender Offer on 11-3/4% & 14-1/2% Sr. Notes
FORD MOTOR: Latch, Drivetrain Problems Spur Recall of 145K Cars
FORD MOTOR: Steve Champ Leaves Company by Oct. 31
GLOBAL POWER: Can Wind Down Heat Recovery Business Segment
HIPOTECARIA SU: US$150 Million High-Yield Bonds Over-subscribe
MERIDIAN AUTOMOTIVE: Wants Plan-Filing Deadline Until Dec. 31
MERIDIAN AUTOMOTIVE: Wants Until March 1 to Remove Civil Actions
PILGRIM'S PRIDE: Gold Kist Snubs Purchase Offer
PILGRIM'S PRIDE: Gets 73.2% Tender for Gold Kist's 10.25% Notes
PILGRIM'S PRIDE: Gold Kist Is Neutral on Sr. Note Tender Offer
N I C A R A G U A
* NICARAGUA: Enel Will List Firms for Power Supply Accord
* NICARAGUA: Cabei Approves Hydro Project Funding
* NICARAGUA: Finds Buyer for Venezuelan Diesel
P A N A M A
* PANAMA: Grants US$30MM Loan for Rural Electrification Program
P E R U
* PERU: Pluspetrol Cuts Oil Output Due to Protests
P U E R T O R I C O
ADELPHIA: AEGIS Can Advance Up to US$900,000 to Individuals
ADELPHIA COMMS: Files Revised Disclosure Statement Supplement
CONSOLIDATED CONTAINER: To Purchase Assets of MAB Group
KMART CORP: Court Approves Pact Resolving Spring Park's Claim
KMART: Court OKs Pact Resolving Stribling's US$2,160,500 Claim
MUSICLAND HOLDING: MacLennan Objects to Disclosure Statement
MUSICLAND HOLDING: Tells Court of 10 Rejected Contracts
U R U G U A Y
* URUGUAY: World Bank Says Mills Pass Environmental Standards
V E N E Z U E L A
CITGO PETROLEUM: Faces Setbacks in the United States
CITGO PETROLEUM: Selects NTP Software to Control Storage Growth
FERRO: Auditor Expresses Adverse Opinion on Internal Control
* Michael Lord Joins Alvarez & Marsal's Restructuring Practice
* BOOK REVIEW: The Global Bankers
- - - - -
=================
A R G E N T I N A
=================
ANRE SRL: Deadline for Verification of Claims Is on Nov. 6
----------------------------------------------------------
Ines Etelvina Clos, the court-appointed trustee for Anre S.R.L.'s bankruptcy
proceeding, will verify creditors' proofs of claim until Nov. 6, 2006.
Ms. Clos will present the validated claims in court as individual reports on
Dec. 19, 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 Anre 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 Anre's accounting and banking
records will follow on March 5, 2007.
Ms. Clos is also in charge of administering Anre's assets under court
supervision and will take part in their disposal to the extent established
by law.
The debtor can be reached at:
Anre S.R.L.
Avenida Belgrano 1908
Buenos Aires, Argentina
The trustee can be reached at:
Ines Etelvina Clos
Sarmiento 944
Buenos Aires, Argentina
BALL CORP: Closing Two North American Manufacturing Facilities
--------------------------------------------------------------
Ball Corp. disclosed that by the end of the year it will close two
manufacturing facilities in North America, as part of the realignment of
Metal Food & Household Products, Americas -- a segment of the company --
following the acquisition earlier this year of US Can Corporation.
Ball Corp. will close a leased facility in Alliance, Ohio -- one of the 10
manufacturing locations in the US acquired from US Can. The plant
manufactures plastic pails, primarily for paints and chemicals. Equipment
in the facility will be relocated to other Ball plants in Ohio and Georgia.
Meanwhile, Ball Corp.'s Canadian subsidiary will close a metal food can
manufacturing plant in Burlington, Ont., which was part of Ball Corp.'s
metal food can operations prior to the acquisition. The facility produces
three-piece steel food can bodies and ends, and does metal cutting and
coating. Some equipment from the plant will be relocated to other Ball
Corp. facilities, while the rest will be sold or scrapped.
The closure of the Alliance plant will be treated as an opening balance
sheet item related to the US Can acquisition. Ball Corp. will record a
fourth quarter after-tax charge of approximately US$25 million related to
equipment disposal and the Burlington closure.
John A. Friedery -- the senior vice president and chief operating officer of
Ball Packaging Products, Americas -- said that the Alliance and Burlington
closure costs will be cash flow neutral after tax benefits and proceeds from
the sale of fixed assets and will reduce operating costs by US$8 million per
year, starting in 2007.
Mr. Friedery noted, "The opportunity to consolidate manufacturing operations
into fewer facilities is critical to us realizing the synergies we knew were
achievable following the acquisition. We are carefully studying our entire
manufacturing structure and expect there will be other opportunities to
improve efficiencies by further realigning production capacities. We
anticipate work on our realignment plan to be completed during the fourth
quarter, with implementation continuing in 2007."
Mr. Friedery said employees at the facilities being closed will be paid
severance and offered transition services. The Alliance plant has about 40
employees, while the Burlington plant has 300 workers.
Headquartered in Broomfield, Colorado, Ball Corp. --
http://www.ball.com/-- is a supplier of high-quality metal and plastic
packaging products. It owns Ball Aerospace & Technologies Corp. -- a
developer of sensors, spacecraft, systems and components for government and
commercial customers. Ball Corp. reported sales of US$5.7 billion in 2005
and the company employs about 13,100 people worldwide, including Argentina.
* * *
Moody's Investors Service assigned ratings to Ball Corp's
US$500 million senior secured term loan D, rated Ba1, and
US$450 million senior unsecured notes due 2016-2018, rated Ba2.
It also affirmed existing ratings, which include Ba1 Ratings on
US$1.475 billion senior secured credit facilities and US$550 million senior
unsecured notes due Dec. 12, 2012. Moody's said the ratings outlook is
stable.
Fitch affirmed Ball Corp.'s 'BB' issuer default rating, 'BB+' senior secured
credit facilities, and 'BB' senior unsecured notes.
Standard & Poor's Ratings Services also affirmed its 'BB+' corporate credit
rating on Ball Corp.
All ratings were placed in March 2006.
BALLY TECH: Provides 920 Gaming Machines to Empire City
-------------------------------------------------------
Bally Technologies, Inc., disclosed that Empire City at Yonkers Raceway in
suburban New York City has officially opened with 1,873 video gaming
machines, of which 920 are from the company.
The opening at Yonkers Raceway also marks the debut of Bally Technologies'
new ALPHA Elite cabinet series. Of the 920 Bally Technologies machines, 647
are ALPHA Elite V20 cabinets with a 20.1-inch wide-screen liquid crystal
display. The upright ALPHA Elite V20 was inspired by the popularity of
Bally Technologies' 26-inch wide-screen CineVision cabinet. The majority of
the other 273 Bally machines at Yonkers Raceway are displayed as CineVision
games.
Several new Bally Technologies game themes are making their New York Lottery
debut at Yonkers Raceway, including Fixin' To Win, Win Win Situation, Green
Machine and a variety of multi-level progressives such as Wall Street
Winners, New York Gold, Blazing 7s and Quick Hit. The progressives are
displayed on overhead large-format LCDs powered by Sign Studio(TM), another
new technology of Bally Technologies and an advanced media player that gives
gaming locations the ability to present high-definition animated graphics
and an enhanced level of game-related content scheduling.
A second expansion at Yonkers is expected to add 495 machines by the end of
2006. A third expansion, which is expected early next year, will bring the
total number of machines to over 5,475. About 2,823 those machines will
come from Bally Technologies.
The Bally Casino Management Systems division has provided the player
tracking and machine management systems at five of the seven locations
currently open under New York Lottery Video Gaming, with a sixth to be added
when the Vernon Downs video gaming facility opens this month.
Headquartered in Las Vegas, Bally Technologies, Inc., --
http://www.BallyTech.com/-- designs, manufactures, operates and distributes
advanced gaming devices, systems and technology solutions worldwide.
Bally's product line includes reel- spinning slot machines, video slots,
wide-area progressives and
Class II, lottery and central determination games and platforms.
Bally Technologies also offers an array of casino management, slot
accounting, bonusing, cashless and table management solutions. The company
also owns and operates Rainbow Casino in Vicksburg, Miss. Bally
Technologies' South American operations are located in Argentina.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 18, 2006, Standard & Poor's Ratings Services held its
ratings on Bally Technologies Inc., including the 'B' corporate
credit rating, on CreditWatch with negative implications.
BANCO GALICIA: Shareholders Okay ARS100 Million Capital Increase
----------------------------------------------------------------
Banco de Galicia y Buenos Aires said in a filing with the local stock
exchange that its shareholders have ratified a capital increase of up to
ARS100-million to boost its equity structure and lower funding costs.
According to Business News Americas, Banco Galicia will issue up to 100
million B class shares -- a 21% increase in its outstanding shares -- at a
nominal value of ARS1 each. Shareholders' equity at Banco Galicia was
ARS1.37 billion in July 2006.
Banco Galicia told BNamericas that the new shares will be offered through a
public offering. The new shares will be subscribed in cash or through bonds
issued by the bank.
* * *
As reported on Apr. 12, 2006, the Argentine arm of Standard &
Poor's assigned these ratings to Banco de Galicia y Buenos
Aires' debts:
-- Obligaciones negociables, serie 6, emitted on July 19,
2002 for US$73,000,000, emitted under the program for
US$1000 million
* Last due: Aug. 3, 2007
* Rate: raA
-- Obligaciones Negociables, clase 7 for US$43,000,000,
included under the US$1000 million program
* Last due: Aug. 3, 2007
* Rate: raA
-- Program of obligaciones negociables, media term, for
US$2,000,000,000
* Rate: raA
-- Obligaciones Negociables simples 8-11-93, for
US$21,400,000
* Last due: Nov. 1, 2004
* Rate: raD
-- Obligaciones negociables simples for US$21,400,000
* Last due: Nov. 1, 2004
* Rate: raD
-- Obligaciones Negociables emitted for US$9,000,000,
included under the US$1000 million program.
* Last due: Dec. 20, 2005
* Rate: raD
CISE SRL: Bankruptcy Proceeding Concluded
-----------------------------------------
CISE S.R.L.'s bankruptcy proceeding has ended, as ordered by Court No. 13 in
Buenos Aires.
Carlos Yacovino was the court-appointed trustee who supervised the
liquidation proceeding. He verified creditors' proofs of claim until Oct.
23, 2006.
As reported in the Troubled Company Reporter-Latin America on Sept. 11,
2006, CISE S.R.L. was forced into bankruptcy at the request of Edgardo
Astivera, whom it owes US$291.
Clerk No. 26 assists the court in the proceeding.
The debtor can be reached at:
CISE S.R.L.
General Manuel Rodriguez 2626
Buenos Aires, Argentina
The trustee can be reached at:
Carlos Yacovino
Jean Juares
Buenos Aires, Argentina
CONANA SACIM: Trustee Verifies Proofs of Claim Until Dec. 7
-----------------------------------------------------------
Miguel Angel Drucaroff, the court-appointed trustee for Conana S.A.C.I.M's
bankruptcy proceeding, verifies creditors' proofs of claim until Dec. 7,
2006.
Mr. Drucaroff will present the validated claims in court as individual
reports on Feb. 22, 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 Conana 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 Conana's accounting and banking
records will follow on March 6, 2007.
Mr. Drucaroff is also in charge of administering Conana's assets under court
supervision and will take part in their disposal to the extent established
by law.
The trustee can be reached at:
Miguel Angel Drucaroff
Avenida Corrientes 2470
Buenos Aires, Argentina
D & S SA: Trustee Verifies Creditors' Claims Until Nov. 27
----------------------------------------------------------
Alberto Eduardo Scravaglieri, the court-appointed trustee for D & S S.A.'s
bankruptcy case, verifies creditors' proofs of claim until Nov. 27, 2006.
Under the Argentine bankruptcy law, Mr. Scravaglieri is required to present
the validated claims in court as individual reports. Court No. 4 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 D
& S and its creditors.
Inadmissible claims may be subject for appeal in a separate proceeding known
as an appeal for reversal.
Mr. Scravaglieri will also submit a general report that contains an audit of
D & S' accounting and banking records. The report submission dates have not
been disclosed.
D & S was forced into bankruptcy at the behest of DXB Industries S.A., its
creditor.
Clerk No. 7 assists the court in the proceeding.
The debtor can be reached at:
D & S S.A.
Chacabuco 78
Buenos Aires, Argentina
The trustee can be reached at:
Eduardo Scravaglieri
Pt. Roque Saenz Pena 651
Buenos Aires, Argentina
PEREZ, STERLI: Last Day for Verification of Claims Is on Nov. 20
----------------------------------------------------------------
Marcela Ingrid Vainberg, the court-appointed trustee for Perez, Sterli y
Bodoira S.H.'s reorganization proceeding, will verify creditors' proofs of
claim until Nov. 20, 2006.
Ms. Vainberg will present the validated claims in court as individual
reports on Feb. 5, 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 Perez, Sterli y Bodoira 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 Perez, Sterli y Bodoira's
accounting and banking records will follow on
March 19, 2007.
On Aug. 30, 2007, Perez, Sterli y Bodoira's creditors will vote on a
settlement plan that the company will lay on the table.
The trustee can be reached at:
Marcela Ingrid Vainberg
Lavalle 2024
Buenos Aires, Argentina
PETROBRAS ENERGIA: Officials May be Jailed Due to Fuel Shortages
----------------------------------------------------------------
Petrobras Energia Participaciones SA executives may face imprisonment if
shortages of diesel fuel continue to delay the planting of crops in
Argentina, Bloomberg News reports.
Petrobras Energia is the Argentine subsidiary of Brazil's state-oil firm
Petroleo Brasileiro SA.
Under the law that was passed on Oct. 11, energy firms must fully supply the
market with diesel, Guillermo Moreno, Commerce Secretary of Argentina, told
Radio Diez. Sanctions for those who fail to comply include:
-- the possibility of imprisonment,
-- fines, and
-- closure of gas stations.
Petrobras Energia Participaciones S.A., through its subsidiary,
explores, produces, and refines oil and gas, as well as
generates, transmits, and distributes electricity. It also
offers petrochemicals, as well as markets and transports
hydrocarbons. The company conducts oil and gas exploration and
production operations in Argentina, Venezuela, Peru, Ecuador,
and Bolivia
* * *
As reported on Feb. 6, 2006, Standard & Poor's Ratings Services said that
its ratings on Petrobras Energia S.A. (PESA; B/Watch Neg/--) will not be
affected by the company's announced accounting adjustment that will be
reflected in the financial statements as of Dec. 31, 2005. Net worth will
decrease by approximately US$60 million as a result of a provision of US$140
million against its Venezuelan assets to adjust their expected recovery
value, and the reversal of certain allowances for tax credits for about
US$83 million.
Since the accounting adjustments do not imply cash movements, they do not
have an impact on the ratings on PESA at this point. Nevertheless, in line
with S&P's concerns, the adjustments reflect lower than previously expected
future cash generation due to changing business conditions in Venezuela.
The ratings will remain on CreditWatch Negative, reflecting the
uncertainties of oil and gas concessions' renegotiation in
Venezuela.
TEDE CONSTRUCCIONES: Claims Verification Deadline Is on Nov. 8
--------------------------------------------------------------
Hector Ricardo Martinez, the court-appointed trustee for Tede Construcciones
S.A.'s bankruptcy case, will verify creditors' proofs of claim until Nov. 8,
2006.
Mr. Martinez will present the validated claims in court as individual
reports on Dec. 21, 2006. A court in Buenos Aires will determine if the
verified claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by Tede Construcciones 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 Tede Construcciones' accounting
and banking records will follow on March 7, 2007.
Mr. Martinez is also in charge of administering Tede Construcciones' assets
under court supervision and will take part in their disposal to the extent
established by law.
The trustee can be reached at:
Hector Ricardo Martinez
Independencia 2251
Buenos Aires, Argentina
=============
B A H A M A S
=============
COMPLETE RETREATS: Ableco's Financing Commitment Letter Approved
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Connecticut approved Ableco
Finance LLC's commitment letter providing Complete Retreats LLC and its
debtor-affiliates a replacement credit facility.
Accordingly, the Court authorizes, but does not direct, the
Debtors to pay Ableco:
(a) an US$800,000 commitment fee; and
(b) an additional US$100,000 deposit to cover Ableco's
reasonable fees and expenses, including reasonable
attorneys' fees and expenses and due diligence fees and
expenses incurred in connection with the negotiation,
preparation, execution and delivery of the Commitment
Letter, the related term sheet, and any and all
definitive documentation.
The Court also authorizes the Debtors and Ableco to amend or modify the
Commitment Letter without further Court order, provided that any
modification is non-material and are not adverse to the Debtors and their
estates.
As reported in the Troubled Company Reporter on Oct. 10, 2006, the Court's
final order on the Debtors' existing DIP Financing
Agreement with The Patriot Group, LLC, and LPP Mortgage, Ltd., requires the
Debtors to obtain replacement DIP financing sufficient to "take out" Patriot
and LPP Mortgage by
Oct. 31, 2006. Otherwise, Patriot and LPP Mortgage will be authorized,
under certain conditions, to foreclose on the Debtors' assets.
The Debtors have solicited interest in providing a replacement credit
facility from numerous potential postpetition lenders. The Debtors received
draft commitment letters from two potential lenders, one from Ableco Finance
LLC.
The Debtors believe that the terms of the credit facility proposed by Ableco
are more favorable than the proposed credit facility of the other potential
lender.
Subsequently, the Debtors and Ableco executed a DIP Financing
Commitment Letter on Oct. 4, 2006. The Commitment Letter contemplates that
the Debtors and Ableco will enter into a credit facility of up to
US$80,000,000, comprised of a term loan of up to US$50,000,000 and a
revolver of up to US$30,000,000.
The Ableco Commitment Letter requires the Debtors to pay an US$800,000
non-refundable commitment fee to Ableco. It also requires that the Debtors
pay Ableco's reasonable fees and expenses, including its reasonable
attorneys' and due diligence fees and expenses incurred in connection with
the negotiation, preparation, execution and delivery of the Commitment
Letter, the related term sheet, and any related definitive documentation.
To cover those fees and expenses, the Debtors would pay Ableco a US$100,000
deposit upon approval of the Commitment Letter.
Moreover, the Ableco Committee Letter requires the Debtors to indemnify
Ableco and certain related parties for any losses arising out of the
Commitment Letter or the contemplated financing, except to the extent
resulting solely from the indemnified party's gross negligence or willful
misconduct.
A full-text copy of the Ableco Commitment Letter is available for free at
http://researcharchives.com/t/s?1326
Terms of Ableco's Proposed DIP Financing
The proceeds of the Loans under the Ableco Facility will be used to:
(a) refinance the Debtors' existing secured credit facilities
in the aggregate principal amount of up to US$74,000,000;
(b) fund working capital and general corporate expenses in
the ordinary course of business of the Debtors, all in
accordance with the Budget; and
(c) pay fees and expenses related to the Financing Facility,
in all cases subject to the Courts' approval.
The Debtors' obligations under the Ableco Facility will be secured by first
priority liens on, and security interests in, all assets of the Debtors.
The DIP Liens will be subject to a
US$1,250,000 carve-out for professional fees, and fees payable to the U.S.
Trustee and the Clerk of Court.
At the Debtors' option, the Loans will bear interest at a rate per annum
equal to either:
(i) the rate of interest publicly announced from time to time
by JPMorgan Chase Bank in New York -- provided that at no
time the Reference Rate be less than 8.25 -- plus 4.75%;
or
(ii) LIBOR plus 7.75%.
All Loans are to be repaid in full at the earliest of:
(i) the date which is 18 months after the date of the Final
DIP Order;
(ii) the date of substantial consummation of a plan of
reorganization in the Debtors' cases, which has been
confirmed by the Court; or
(iii) the date on which the Loan will become due and payable in
accordance with the terms of the Loan Documents.
An Event of Default will occur if, among others:
-- any of the Debtors' cases will be dismissed or converted
to a Chapter 7 case;
-- a Chapter 11 trustee or examiner with enlarged powers will
be granted;
-- any other super-priority administrative expense claim will
be granted; or
-- the Court will enter an order granting relief of the
automatic stay to the holder of any security interest in
any asset of the Debtors having a book value equal to or
exceeding US$250,000 in the aggregate.
No later than Jan. 1, 2007, the Debtors will be required to:
(i) have a plan of reorganization filed which, among other
items, provides for the repayment in full of the
Financing Facility; or
(ii) retain an auctioneer acceptable to the Lenders and
commence a process of marketing for sale of the Debtors'
real estate assets.
If a plan of reorganization is filed on or before Jan. 1, 2007, the Debtors
will be required to have that plan confirmed no later than March 1, 2007.
The Closing Date is the date on which all definitive loan documentation
satisfactory to the Lenders is executed by the
Debtors and the Lenders, which date will not be later than
Oct. 31, 2006, on or after the date the Court has entered the Final DIP
Order.
The Ableco Facility also provides for an US$800,000 non-refundable Closing
Fee.
About Complete Retreats
Headquartered in Westport, Connecticut, Complete Retreats LLC operates
five-star hospitality and real estate management businesses. In addition to
its mainline destination club business, the Debtor also operates an air
travel program for destination club members, a villa business, luxury car
rental services, wine sales services, fine art sales program, and other
amenity programs for members. Complete Retreats and its debtor-affiliates
filed for chapter 11 protection on July 23, 2006 (Bankr. D. Conn. Case No.
06-50245). Nicholas H. Mancuso, Esq. and Jeffrey K. Daman, Esq. at Dechert
LLP represent the Debtors in their restructuring efforts. Michael J.
Reilly, Esq., at Bingham McCutchen LP, in Hartford, Connecticut, serves as
counsel to the Official Committee of Unsecured Creditors. No estimated
assets have been listed in the Debtors' schedules, however, the Debtors
disclosed US$308,000,000 in total debts. (Complete Retreats Bankruptcy
News, Issue No. 11; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
COMPLETE RETREATS: Inks US$80MM DIP Financing Pact with Ableco
--------------------------------------------------------------
Complete Retreats LLC and its debtor-affiliates ask the U.S. Bankruptcy
Court for the District of Connecticut for authority to obtain replacement
postpetition financing of up to US$80,000,000, from Ableco Finance, LLC, and
certain other lenders.
The Debtors previously obtained the Court's permission to enter into a
commitment letter with Ableco, which contemplates the parties' entry into an
US$80,000,000 replacement DIP facility.
The Debtors further ask the Court to grant the Lenders a super-priority
administrative claim and a security interest in and lien on the Collateral
pursuant to Section 364 of the Bankruptcy Code.
A full-text copy of the Term Sheet for the Ableco DIP Financing
Facility is available for free at:
http://researcharchives.com/t/s?1357
Loan Availability and Funding
Under the DIP Financing Agreement, the Lenders will provide the
Debtors with an US$80,000,000 senior secured credit facility consisting of:
(a) a term loan facility of up to US$50,000,000, which would
not have any scheduled amortization; and
(b) a revolving credit facility of up to US$30,000,000.
The maximum amount available under the Revolving Credit Facility will be the
lesser of:
(a) US$30,000,000;
(b) a borrowing base equal to 65% of the appraised value of
the Debtors' real estate as set forth in a July 2006 DIM
Asset Management appraisal, in which Ableco, as agent,
was granted a first-priority lien, less the sum of:
* the amount of the outstanding term loan;
* the amount of any mandatory prepayments made from
net asset sale proceeds in excess of 65% but up to
90% of the appraised value of the real estate sold;
and
* the Reserve Amount; and
(c) the Budget Amount.
According to Jeffrey K. Daman, Esq., at Dechert LLP, in Hartford,
Connecticut, the proceeds of the loans under the DIP Facility will be used
to:
-- satisfy amounts outstanding under the Debtors' existing
secured financing arrangements in the aggregate principal
amount of up to US$74,000,000;
-- fund working capital and general corporate expenses in the
Debtors' ordinary course of business, all in accordance
with the Budget; and
-- pay fees and expenses related to the DIP Facility.
Security Interest
The Lenders will be granted, pursuant to Sections 364(c)(2),
364(c)(3) and (d) of the Bankruptcy Code, a first-priority, security
interest in and lien on all assets and property of the
Debtors' estates and its proceeds, subject to a US$1,250,000 carve-out
amount for outstanding professional fees and disbursements incurred by the
Debtors and any official committees appointed in the Chapter 11 cases and
the payment of fees pursuant to Section 1930 of the Judiciary and Judicial
Procedure Code.
All amounts owing to the Lenders under the DIP Financing
Agreement at all times will constitute allowed super-priority administrative
expense claims, pursuant to Section 364(c)(1), subject only to the
Carve-Out.
To the extent that the Debtors sell any real estate and the net sale
proceeds equal or exceed 95% of the appraised value of the real estate being
sold, Ableco will release its liens on the real estate. Any sale of real
estate by the Debtors that generates net sale proceeds less than 95% of the
appraised value of the real estate will require the consent of the Lenders.
Interest Rates
The non-default interest rate provided for under the DIP Facility for the
loans will be, at the Debtors' option, a rate per annum equal to either:
(a) the Reference Rate plus 4.75%; or
(b) LIBOR plus 7.75%.
The Reference Rate is the rate of interest publicly announced from time to
time by JPMorgan Chase Bank in New York as its reference rate, base rate, or
prime rate, provided that at no time would the Reference Rate be less than
8.25%. The default rate of interest will be the rate otherwise in effect
plus 3%.
DIP Facility Fees
The Lenders will be entitled to these fees:
(1) A US$800,000 Commitment Fee, which is already approved
and to be paid;
(2) A US$800,000 Closing Fee, which will be earned on the
closing date and due and payable upon maturity or
termination of the DIP Facility;
(3) An Unused Line Fee equal to 0.5% of the unused portion of
the Revolving Credit Facility, due and payable monthly in
arrears;
(4) A US$50,000 Servicing Fee per quarter, due and payable on
the closing date and quarterly in advance;
(5) Field Examination Fees equal to US$1,500 per day per
examiner plus the actual charges paid or incurred by the
Lenders if they elect to employ the services of one or
more third parties to perform financial audits of the
Debtors, appraise the Debtors' collateral, or assess the
Debtors' business valuation;
(6) Brokers' Fees, which the Debtors do not expect to pay;
and
(7) Out-of-Pocket Expenses incurred by the Lenders in
connection with the Commitment Letter and the Term Sheet,
to be paid by the Debtors.
Pursuant to an October 10, 2006 letter agreement, Ableco and the
Debtors agreed to modify the Commitment Letter to defer the payment of the
Closing Fee until the maturity of the DIP
Facility. If the maturity date occurs more than six months after the
closing date, the Closing Fee will increase from US$800,000 to US$1,200,000.
Maturity
The term of the DIP Facility will be through the earliest of:
(i) the date which is 18 months after the Court approves the
DIP Facility;
(ii) the date of substantial consummation of a confirmed plan
of reorganization; or
(iii) the date on which the loans become due and payable in
accordance with the terms of the loan documents.
Events of Default
The DIP Financing Agreement contains certain customary events of default
that are more specific to the bankruptcy context and the Debtors' cases.
No later than Jan. 1, 2007, the Debtors are required to either:
(a) file a plan of reorganization which, among other things,
provides for the repayment in full of the DIP Facility;
or
(b) retain an auctioneer acceptable to the Lenders and
commence a process of marketing for sale the Debtors'
real estate assets.
If the Debtors file a plan of reorganization on or before
Jan. 1, 2007, the Debtors are required, no later than
March 1, 2007, to either:
(a) have a plan of reorganization confirmed which, among
other things, provides for the repayment in full of the
DIP Facility; or
(b) retain an auctioneer acceptable to the Lenders and
commence a process of marketing for sale the Debtors'
real estate assets.
The DIP Facility will enable the Debtors to address their liquidity
challenges, allowing them to operate their business in the ordinary course
and progress toward reorganizing their operations and debt structure, Mr.
Daman says. The DIP Facility will also allow the Debtors to satisfy
substantially all of their existing secured debt and to operate under a
single financing arrangement, which would have significant administrative
and other benefits, Mr. Daman adds.
The Debtors ask Judge Shiff to schedule a hearing on
Oct. 25, 2006, to consider their request.
About Complete Retreats
Headquartered in Westport, Connecticut, Complete Retreats LLC
operates five-star hospitality and real estate management
businesses. In addition to its mainline destination club
business, the Debtor also operates an air travel program for
destination club members, a villa business, luxury car rental
services, wine sales services, fine art sales program, and other
amenity programs for members. Complete Retreats and its debtor-
affiliates filed for chapter 11 protection on July 23, 2006
(Bankr. D. Conn. Case No. 06-50245). Nicholas H. Mancuso, Esq.
and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors in their
restructuring efforts. Michael J. Reilly, Esq., at Bingham McCutchen LP, in
Hartford, Connecticut, serves as counsel to the Official Committee of
Unsecured Creditors. No estimated assets have been listed in the Debtors'
schedules, however, the Debtors disclosed US$308,000,000 in total debts.
(Complete Retreats Bankruptcy News, Issue No. 11; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000).
WINN-DIXIE: Unseals Substantive Consolidation Documents
-------------------------------------------------------
Winn-Dixie Stores, Inc., and its debtor-affiliates have agreed to release
the confidentiality restrictions that resulted in the
sealing of the documents relating to the substantive consolidation of their
estates as requested by the Ad Hoc Trade Committee.
These documents are now filed on the public record without seal:
(1) Ad Hoc Trade Committee's May 11, 2006, Motion for Order
Pursuant to Section 105(a) of the Bankruptcy Code
Substantively Consolidating Debtors' Estates;
(2) Ad Hoc Trade Committee's Brief in support of its Motion;
and
(3) Affidavit of M. Freddie Reiss in support of the Motion.
Copies of the three documents are available free of charge at
http://ResearchArchives.com/t/s?1355
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. 55; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
WINN-DIXIE: Wants to Sell Live Oak Outparcel to Ronnie Poole
------------------------------------------------------------
Pursuant to Section 363(b) of the Bankruptcy Code, Winn-Dixie
Stores, Inc., and its debtor-affiliates seek consent from the U.S.
Bankruptcy Court for the Middle District of Florida to sell a tract of land
located in Live Oak, Florida, together with all
related assets, free and clear of liens to Ronnie Poole or to a
party submitting a higher or better offer.
The Debtors lease their Store No. 198 in a shopping center in
Live Oak. The Live Oak Outparcel is located in the same shopping center.
According to Cynthia C. Jackson, Esq., at Smith Hulsey & Busey, in
Jacksonville, Florida, the Debtors have no development plans for the Live
Oak Outparcel and its sale will generate cash for the Debtors.
Ms. Jackson notes that any sale of the Live Oak Outparcel will
include exclusive use restrictions to assure that no entity may
develop the property in a way that competes with the Debtors'
Store No. 198.
The Debtors have marketed the Live Oak Outparcel extensively
through DJM Asset Management, Inc. Through DJM's efforts, the
Debtors have received two offers for the Live Oak Outparcel,
including Mr. Poole's US$110,000 offer. After reviewing all
offers, the Debtors have determined that Mr. Poole's offer is the currently
highest and best offer for the Live Oak Outparcel.
Real Estate Purchase Agreement
On March 28, 2006, the Debtors and Mr. Poole entered into a real
estate purchase agreement. The parties amended the Purchase
Agreement on Sept. 12, 2006.
Under the Purchase Agreement, the Debtors' fee simple title
interest in the Live Oak Outparcel and its related appurtenances, rights,
easements, rights-of-way, tenements and hereditaments will be sold and
transferred to Mr. Poole in an "as is, where is" basis and free and clear of
any liens, claims or interests.
The net aggregate purchase price for the Assets is US$110,000.
Mr. Poole has provided a US$5,000 initial earnest money deposit and a second
deposit of US$6,000 with the escrow agent. At closing, the combined
deposits will be credited against the Purchase Price and the unpaid balance
will be due and payable in cash.
The Purchase Agreement provides that the Debtors are responsible
for payment of the brokerage commission due to their broker.
Given the requirements of the Purchase Agreement and the need to
close the sale as promptly as possible, the Debtors ask the Court to waive
the 10-day stay period imposed by Rule 6004(g) of the Federal Rules of
Bankruptcy Procedure.
Competing Bids
The Debtors are still soliciting higher and better bids for the
Assets. All interested bidders are instructed to submit their
offers to James Avallone at DJM no later than 12:00 p.m.
(prevailing Eastern Time) on October 20, 2006. All bids must
comply with the Court-approved Bidding Procedures.
To qualify as a competing bid, the offer must net the Debtors'
estates at least US$110,000 and be accompanied by a wire or
certified check made out to Winn-Dixie Stores, Inc., in an amount equal to
10% of the competing bid.
If the Debtors receive a competing bid, they will conduct an
auction for the Assets at 10:00 a.m. (prevailing E.T.) at the
offices of Smith Hulsey & Busey in Jacksonville, Florida, on
Oct. 24, 2006.
The deadline for filing objections to the proposed sale is on
Oct. 18, 2006.
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. 55; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
===========
B E L I Z E
===========
* BELIZE: Council Disclosing Accomplishments & Plans for City
-------------------------------------------------------------
The Belize City Council will disclose in its monthly meeting for October its
accomplishments and plans as well as the financial situation of the city,
Love FM reports.
As reported in the Troubled Company Reporter-Latin America on Sept. 5, 2006,
the City Council were trying to come up with new proposals with sanitation
firms to resolve the conflict between the two parties regarding the
Council's failure to meet payments to the companies. As previously
reported, the City Council failed to meet its financial obligations to the
Belize Waste Control, S.E.L. and B.M.L., who are responsible for sanitation.
The firms have stopped city cleanup and garbage collection.
Love FM relates that the monthly meeting will be held at the City Hall on
North Front Street. The assembly would also allow those who would attend to
voice out concerns and recommendations.
Zenaida Moya, the mayor of Belize City told Love FM, "As it pertains to my
self I always give a report on the financial situation. In terms of
streamlining our operation to ensure that wastage is dealt with. We have
been doing very well on that so that has caused a decrease in expenditure
throughout our financials and again people can always get copies. We have
an open system. In terms of revenues again I must say that things are
panning out as it pertains to the revenues. So again we feel optimistic and
we are looking at the new areas that we want to increase revenues utilizing
those particular avenues. So (I) would tell you that as it pertains to the
financial situation one of the things we should be doing looking at the
financial situation we will be doing resolution on that. It will give the
council some level of contentment and satisfaction in terms of being able to
know how much you have to pay but knowing that you will be able to pay that
amount every week verses what we were doing and how much we would able to
pay. So again that should be one of the resolution and another resolution
is to ensure that as it pertain to the facility there will also be a
resolution on that. Those are two key resolution as it pertains to
sanitation contract and as it pertains to the over draft facility for the
council."
* * *
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.
* BELIZE: Natural Energy Finds Oil in Five Wells
------------------------------------------------
Belize Natural Energy has drilled five successful wells containing oil, NPR
reports.
NPR underscores that major oil firms had been unsuccessful in finding oil in
Belize. After drilling about 50 empty holes over 50 years, the companies
decided to abandon the project.
The oil discovery by Natural Energy, which was backed mainly by Irish
investors in its exploration in the country, brought crude production to
almost 3,000 barrels per day, NPR says.
According to NPR, the crude discovered was so low in sulfur that some
farmers pump it directly into tractors.
However, there are concerns that the government will mismanage the resource
and allow the new oil industry to destroy Belize's environment, NPR notes.
Oil firms from the United States are also angry that the Belizean government
quickly imposed large taxes on all producers. Some told NPR that this move
could weaken the industry before it gets on its feet.
Due to popular pressure, the government of Belize decided to place a 40%
income tax on oil firms, NPR states.
An oilman in Texas told NPR that on top of other profit-sharing costs, this
would increase the government's share to over 60% of net production.
NPR emphasizes that all new drilling projects for the search of additional
oil are then put on hold.
Larry Jones -- the president of Houston's Spartan Petroleum, which had
drilled dry holes in Belize in the past years -- was excited about new
exploration in the northern part of the nation. When the drilling was
postponed, Mr. Jones told NPR, "I'm very disappointed. Belize is scaring
off potential, well-funded operators. If things stay the same as we're
presently faced with, we will probably go somewhere else."
* * *
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
=============
ASIAN SELECTION: Proofs of Claim Must be Submitted by Oct. 18
-------------------------------------------------------------
Asian Selection Holdings Ltd.'s creditors are given until
Oct. 18, 2006, to prove their claims to Robin J. Mayor, the company's
liquidator, or be excluded from receiving any distribution or payment.
Creditors are required to send by the Oct. 18 deadline their full names,
addresses, the full particulars of their debts or claims, and the names and
addresses of their lawyers, if any, to
Mr. Mayor.
A final general meeting will be held at the liquidator's place of business
on Nov. 7, 2006, at 9:30 a.m., or as soon as possible.
Asian Selection's shareholders will determine during the meeting, through a
resolution, the manner in which the books, accounts and documents of the
company and of the liquidator will be disposed.
Asian Selection's shareholders agreed on Oct. 2, 2006, to place the company
into voluntary liquidation under Bermuda's Companies Act 1981.
The liquidator can be reached at:
Robin J. Mayor
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, Bermuda
COMPUTER INSURANCE: Proofs of Claim Filing Is Until Oct. 18
-----------------------------------------------------------
Computer Insurance Company Ltd.'s creditors are given until
Oct. 18, 2006, to prove their claims to Robin J. Mayor, the company's
liquidator, or be excluded from receiving any distribution or payment.
Creditors are required to send by the Oct. 18 deadline their full names,
addresses, the full particulars of their debts or claims, and the names and
addresses of their lawyers, if any, to Mr. Mayor.
A final general meeting will be held at the liquidator's place of business
on Nov. 7, 2006, at 9:30 a.m., or as soon as possible.
Computer Insurance's shareholders will determine during the meeting, through
a resolution, the manner in which the books, accounts and documents of the
company and of the liquidator will be disposed.
Computer Insurance's shareholders agreed on Sept. 27, 2006, to place the
company into voluntary liquidation under Bermuda's Companies Act 1981.
The liquidator can be reached at:
Robin J. Mayor
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, Bermuda
MAN MULTI: Last Day for Proofs of Claim Filing Is on Oct. 20
------------------------------------------------------------
Man Multi Strategy Series AM Ltd.'s creditors are given until Oct. 18, 2006,
to prove their claims to Beverly Mathias, the company's liquidator, or be
excluded from receiving any distribution or payment.
Creditors are required to send by the Oct. 20 deadline their full names,
addresses, the full particulars of their debts or claims, and the names and
addresses of their lawyers, if any, to
Ms. Mathias.
A final general meeting will be held at the liquidator's place of business
on Nov. 10, 2006, at 9:30 a.m., or as soon as possible.
Man Multi's shareholders will determine during the meeting, through a
resolution, the manner in which the books, accounts and documents of the
company and of the liquidator will be disposed.
Man Multi's shareholders agreed on Oct. 4, 2006, to place the company into
voluntary liquidation under Bermuda's Companies Act 1981.
The liquidator can be reached at:
Beverly Mathias
c/o Argonaut Limited
Argonaut House, 5 Park Road
Hamilton HM O9, Bermuda
REFCO INC: Chap. 7 Trustee Wants Rogers Funds Claims Pact Okayed
----------------------------------------------------------------
Rogers Raw Materials Fund, L.P., and Rogers International Raw Materials
Fund, L.P., filed on July 11, 2006, Claim Nos. 251 and 252 against Refco,
LLC. The Rogers Claims asserted customer net equity under Section 766(h) of
the Bankruptcy Code, commodities fraud and aiding and abetting under 7
U.S.C. Section 6b, common law fraud, contribution, negligence, conversion,
breach of fiduciary duty, and breach of contract.
On July 22, 2006, Beeland Management Company, L.L.C., Walter
Thomas Price and Allen Goodman filed Claim Nos. 253 to 255 against Refco LLC
for contribution or indemnification in respect of certain claims asserted
against them related to the Rogers Funds' losses at Refco, Inc. The Price
Futures Group, an affiliate of the Rogers Funds Parties, also filed Claim
Nos. 192 and 193 against the Chapter 7 Debtor on June 16, 2006.
Albert Togut, as Chapter 7 trustee for the Refco LLC estate, disputes the
claims.
The parties engaged in good faith, arm's-length discussions to
resolve the Claims. Mr. Togut asks the U.S. Bankruptcy Court for the
Southern District of New York to approve their settlement.
Under the Settlement, the parties agreed to:
(i) the withdrawal of all of the Rogers Funds Parties' and
the Price Futures Groups' claims against Refco LLC, other
than claims provided for in a settlement agreement
between Refco Capital Markets' estate, and certain of its
securities customers and general unsecured creditors,
which has been approved by the Court; and
(ii) the allowance of a US$30,000,000 general unsecured claim
against Refco LLC for the Rogers Funds.
The Chapter 7 Trustee, the Rogers Funds Parties, and RCM Trustee
Marc Kirschner also agreed to the mutual release of any other related claims
between or among the parties, including the RCM
Trustee's waiver of its right to seek to reduce the distributions to the
Rogers Funds under the RCM Settlement by the amount of the claim allowed
against Refco LLC.
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, in New York, asserts that the Settlement is critical to the
confirmation of a global plan and settlement involving all of the estates.
Mr. Milmoe notes that even if the Court's decision were to
sustain the Chapter 7 Trustee's objections in full, the Rogers
Funds would likely appeal. In that event, the Chapter 7 Trustee
would be required to reserve for the full amount of the Rogers
Funds' Claims. Mr. Milmoe says that a substantial reserve would
adversely affect the global plan and settlement embodied in the
Chapter 11 Debtors' Plan of Reorganization and could jeopardize
the RCM Settlement.
Mr. Milmoe states that the settlement of complex commodities-related claims
asserted in amounts exceeding US$375,000,000 in exchange for a single
allowed claim of US$30,000,000 -- less than 10% of the claimed amount -- is
reasonable on its face and is clearly in the best interests of the estates.
Furthermore, Mr. Milmoe maintains that the Settlement will avoid substantial
risks, costs and uncertainties that future litigation and appeals would
otherwise entail.
About Refco Inc.
Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified
financial services organization with operations in 14 countries and an
extensive global institutional and retail client base. Refco's worldwide
subsidiaries are members of principal U.S. and international exchanges, and
are among the most active members of futures exchanges in Chicago, New York,
London and Singapore. In addition to its futures brokerage activities,
Refco is a major broker of cash market products, including foreign exchange,
foreign exchange options, government securities, domestic and international
equities, emerging market debt, and OTC financial and commodity products.
Refco is one of the largest global clearing firms for derivatives.
The Company and 23 of its affiliates filed for chapter 11 protection on Oct.
17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc A. Despins,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official
Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets
and US$16.8 billion in debts to the Bankruptcy Court on the first day of its
chapter 11 cases.
Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a
regulated commodity futures company that has businesses in the United
States, London, Asia and Canada. Refco, LLC, filed for bankruptcy
protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc. Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.
On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital
Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham
McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda.
Three more affiliates of Refco, Westminster-Refco Management LLC, Refco Mana
ged Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11
protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through
06-11262). (Refco Bankruptcy News, Issue No. 44; Bankruptcy Creditors'
Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
REFCO INC: Wants Solicitation & Tabulation Procedures Approved
--------------------------------------------------------------
Refco, Inc., and its debtor-affiliates remind the Hon. Robert D.
Drain of the U.S. Bankruptcy Court for the Southern District of
New York that they filed a Plan of Reorganization and Disclosure
Statement together with Marc Kirschner, the Chapter 11 Trustee for Refco
Capital Markets, Ltd., on September 14, 2006. After further negotiations
with their creditor constituencies, the Debtors, together with the RCM
Trustee and the official committees of unsecured creditors appointed in
their cases, delivered an Amended Plan of Reorganization and Disclosure
Statement on Oct. 6, 2006.
To facilitate consideration of their Plan, the Debtors ask the
Bankruptcy Court to establish Dec. 15, 2006, as the commencement date of the
Plan confirmation hearing, as may be continued from time to time in open
court without further notice to parties-in-interest.
The Debtors also ask Judge Drain to set:
(i) Dec. 1, 2006, at 4:00 p.m., as the deadline for
filing objections to the Plan Confirmation;
(ii) Nov. 20, 2006, at 4:00 p.m., as the deadline to
object to claims solely for Plan voting purposes;
(iii) Nov. 28, 2006, as 4:00 p.m., as the deadline for
filing motions seeking temporary allowance of claims for
voting purposes, pursuant to Rule 3018(a) of the Federal
Rules of Bankruptcy Procedure; and
(iv) Dec. 8, 2006, at 5:00 p.m., as the deadline by which
Ballots for accepting or rejecting the Plan must be
received by Financial Balloting or Omni Management Group,
LLC, if they are to be counted.
The Debtors propose that any party who timely files a Rule
3018(a) Motion will be provided a ballot and permitted to cast a
provisional vote to accept the Plan. If, and to the extent that, the
Debtors and that party are unable to resolve the issues raised by the Rule
3018(a) Motion before the Plan voting
deadline, the Court will determine at the Confirmation Hearing
whether the provisional ballot should be counted as a vote on the Plan and,
if so, the amount in which that party will be entitled to vote.
Treatment of Claims for Voting Purposes
The Debtors classify "non-voting claims" as claims that are
listed in their schedules of assets and liabilities as disputed,
contingent or unliquidated, and which are not the subject of a
timely filed proof of claim, or a claim deemed timely filed with
the Court.
The Debtors ask the Court that the Non-Voting Claimholders will
be denied treatment as creditors to vote on and receive
distributions and notices under the Plan.
The Debtors also want that any disputed claim will be determined
ineligible to vote on the Plan. The Debtors insist that those
claims will not be counted in determining whether the Section
1126(c) requirements have been met:
(i) unless any claim has been temporarily allowed for voting
purposes; or
(ii) except to the extent that the objection to that claim has
been resolved in the creditor's favor.
For voting purposes, the Debtors propose that the claim amount
used to calculate acceptance or rejection of the Plan under
Section 1126 will be (x) the actual claim amount scheduled by the Debtors,
or (y) the liquidated amount of a timely filed claim.
In addition, the Debtors seek that the ballots cast by certain
claimants holding non-substantive claims will not be counted
toward satisfying the aggregate dollar amount provision of
Section 1126(c) numerosity requirement, unless temporarily
allowed by the Court in a specific amount for voting purposes.
Voting Record Date
To set a record date for determining the "holders of stocks,
bonds, debentures, notes and other securities" entitled to
receive ballots and other materials specified in Rule 3017(d),
the Debtors' securities registrars need advance notice to enable
responsible parties to assemble ownership lists of publicly
traded debt and equity securities.
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, in New York, relates that since Bankruptcy Rules 3017(d) and 3018(a)
purport to set a record date based on when the Court
clerk records an official order, those rules in essence require
ownership lists to be prepared retroactively, even though it
cannot be done accurately.
Accordingly, the Debtors ask Judge Drain to exercise his power
under Section 105(a) to set October 16, 2006, as the record date
for determining:
-- creditors and equity holders entitled to receive
solicitation packages and related materials, if any; and
-- creditors entitled to vote to accept or reject the Plan
and elect certain treatment, notwithstanding anything to
the contrary in the Bankruptcy Rules.
Solicitation Package and Ballots
Pursuant to Bankruptcy Rule 3017(d), the Debtors propose to
deliver by first class mail, within five business days after the
Disclosure Statement approval:
(a) a Confirmation Hearing notice to all of their known
creditors, the Senior Subordinated Note Indenture Trustee
and equity security holders as of the Voting Record Date,
and all other entities required to be served under
Bankruptcy Rules 2002 and 3017; and
(b) a copy of a notice of non-voting status with respect to
unimpaired classes to:
* claimholders in Contributing Debtors Classes 1, 2
and 3 under the Plan;
* claimholders in FXA Classes 1, 2 and 3;
* claimholders in RCM Classes 1 and 2; and
(c) a copy of a notice of non-voting status with respect to
impaired classes to:
* holders of claims and interests in Contributing
Debtors Classes 7 and 8;
* claimholders in FXA Class 7; and
* claimholders in RCM Class 6.
The Debtors seek that the Non-Voting Packages will be deemed to
constitute an adequate alternative disclosure statement to
impaired non-voting classes under Section 1125(c) and a summary
plan under Bankruptcy Rule 3017(d).
In addition, the Debtors propose to mail to claimholders in
Contributing Debtors Classes 4, 5 and 6; claimholders in FXA
Classes 4, 5 and 6; and claimholders in RCM Classes 3, 4 and 5 an
information and solicitation package, containing:
(1) a copy or conformed printed version of the Disclosure
Statement and a copy of the Disclosure Statement order;
(2) one or more ballots appropriate for a specific creditor;
and
(3) the Confirmation Hearing Notice.
To avoid duplication and to reduce expenses, the Debtors propose
that:
(i) creditors holding unimpaired and impaired claims will
receive only the Solicitation Package appropriate for the
applicable impaired class; and
(ii) creditors who have filed duplicate claims in any given
class will receive only one Solicitation Package and one
Ballot for voting their claims and will be entitled to
vote their claim only once with respect to that class.
The appropriate Ballot forms, as applicable, will be distributed
to claimholders who are entitled to vote to accept or reject the
Plan:
Ballot D-1 Beneficial Owner Ballot for Senior Subordinated
Note Claims
Ballot D-2 Ballot for Class 5 Contributing Debtors General
Unsecured Claims
Ballot D-3 Ballot for Class 6 RCM Intercompany Claims
Ballot D-4 Ballot for Class 5(a) FXA General Unsecured
Claims
Ballot D-5 Ballot for Class 6 FXA Convenience Claims
Ballot D-6 Ballot for Class 3 RCM FX/Unsecured Claims
Ballot D-7 Ballot for Class 4 RCM Securities Customer
Claims
Ballot D-8 Ballot for Class 5 RCM Leuthold Metals Claims
Noteholder Election
Pursuant to the Plan, the Debtors propose that an election declining to
receive BAWAG Proceeds by holders of Senior
Subordinated Note Claims who voted to accept the Plan may be disregarded.
The Debtors also want that the Senior Subordinated
Note Claimholders who fail to vote their claims will be deemed to accept the
receipt of Senior Subordinated Note Claims BAWAG
Proceeds as a component of their pro rata share of a Senior
Subordinated Note Holder Distribution.
To facilitate the election by Noteholders not to receive BAWAG
Proceeds, the Debtors will mail a BAWAG Opt-Out election form to each Senior
Subordinated Note Claimholder determined as of the
Voting Record Date.
Nominees holding the Senior Subordinated Notes will be required
to forward information with respect to the Noteholder Election to beneficial
owners of Senior Subordinated Notes and to effect any Noteholder Election on
their behalf through a Depository Trust Company's Automated Tender Offer
Program system. The Nominees may use the BAWAG Opt-Out Election Form
provided or other means as they customarily may use to obtain instructions
with respect to an election on account of the beneficial owner's claim.
To effect the Noteholder Election, each Senior Subordinated Note
Claimholder must:
(i) provide instructions to its Nominee sufficiently far in
advance of the Voting Deadline by electronically
tendering the holder's Senior Subordinated Notes to The
Depository Trust Company; and
(ii) vote to reject the Plan, and ensure that the vote is
received by Financial Balloting Group LLC, the Debtors'
proposed special voting agent, by the Voting Deadline.
The Debtors further seek the Court's authority to adopt, as necessary, any
additional procedures consistent with the provisions of the Noteholder
Elections.
Ballot Election to Decline Certain Proceeds
In accordance with the Plan, in the event that BAWAG is sold for an amount
in excess of EUR1,800,000,000, the Debtors propose that:
(a) holders of Contributing Debtors General Unsecured Claims
who fail to vote their claims will be deemed to accept
the distribution, if any, of the Contributing Debtors
BAWAG Proceeds;
(b) holders of RCM FX/Unsecured Claims and RCM Securities
Customer Claims that fail to vote their claims will be
deemed to accept RCM BAWAG Proceeds as a component of
their Distribution from RCM;
(c) each holder of a Contributing Debtors General Unsecured
Claim, FXA General Unsecured Claim, RCM FX/Unsecured
Claim or RCM Securities Customer Claim will be deemed to
have agreed to contribute its Non-Estate Refco Claims to
the Private Actions Trust contemplated by the Global Term
Sheet.
The Debtors further seek that holders of the Contributing Debtors General
Unsecured Claim, FXA General Unsecured Claims, RCM FX/Unsecured Claims and
RCM Securities Customer Claims that fail to vote their claims will be
excluded from participation in the Private Actions Trust.
Ballot Election for Treatment as FXA Convenience Claim
According to Mr. Milmoe, each holder of a Class 5 FXA General
Unsecured Claim in an amount greater than US$10,000 may elect to have its
claim reduced to US$10,000 and treated as a Class 6 FXA Convenience Claim
under the Plan. In this light, the Debtors propose that Class 5 FXA General
Unsecured Claimholders electing treatment as Class 6 FXA Convenience Claims
will be deemed to have voted their Class 6 Claims to accept the Plan.
Under the Plan, the aggregate amount of distributions to Class 6
FXA Convenience Claims is capped at US$5,000,000. To the extent that the
elections of Class 5 FXA General Unsecured Claims to receive treatment as
Class 6 FXA Convenience Claims result in the aggregate allowed amount of
claims in Class 6 exceeding
US$5,000,000, the claims permitted to elect that treatment will be
determined by reference to the amount of the claim, with the claim in the
lowest amount being selected first and the next largest claim being selected
thereafter until the US$5,000,000 cap is reached.
The Debtors propose that, to the extent any Class 5 FXA General
Unsecured Claimholder that has elected treatment as a Class 6 FXA
Convenience Claim, but has to be denied that treatment due to
oversubscription, the vote initially cast by that holder will be counted in
the tabulation of votes in Class 5.
Moreover, the Debtors propose that unless the holders of Class 3
RCM FX/Unsecured Claims and Class 4 RCM Securities Customer
Claims make the appropriate Ballot election, those holders will be deemed to
have agreed (i) to assign their RCM Related Debtor
Claims to the Litigation Trust, and (ii) to release their RCM
Related Claims against any non-Debtor Refco entity. The Debtors also seek
that those holders that fail to vote their claims will be deemed not to have
assigned their RCM Related Debtor Claims to the Litigation Trust or released
their RCM Related Claims against non-debtor entities.
Ballot Method
To facilitate the mailing of Solicitation and Non-Voting
Packages, the Debtors ask the Court to direct Wells Fargo Bank,
National Association, the indenture trustee for the Senior
Subordinated Notes, and The Bank of New York, the transfer agent for the
Debtors' equity securities, to provide Financial
Balloting, by October 19, 2006, with the names, addresses, and account
numbers of the recordholders as of the Record Date.
In addition, the Debtors seek that the Nominees through which beneficial
owners hold Senior Subordinated Notes or equity securities promptly
distribute Solicitation Packages or Non-
Voting Packages, as appropriate, to certain holders, and cooperate with
Financial Balloting to accomplish the distribution, in any case no later
than five business days after receipt by the Nominees of the Packages. The
Debtors will provide Nominees with sufficient quantities of those Packages
to permit service of those documents on their beneficial owners.
The Debtors want the Nominees to obtain votes of beneficial owners of Senior
Subordinated Notes according to these procedures:
(a) A Nominee may forward the Solicitation Package to each
beneficial owner of the Senior Subordinated Notes for
whom it acts as a Nominee for voting and include a
postage-prepaid, return envelope provided by and
addressed to the Nominee so that the beneficial owner may
return the completed beneficial owner Ballot directly to
its Nominee; or
(ii) A Nominee may prevalidate the Ballot by signing it and
forward the Solicitation Package along with the
prevalidated Ballot to the beneficial owner of the Senior
Subordinated Notes for voting, so that the beneficial
owner may return the completed Ballot directly to
Financial Balloting.
Voting & Tabulation Procedures
To avoid the potential for inconsistent results, the Debtors ask
Judge Drain to establish these guidelines for tabulating votes:
(1) Any Ballot or Master Ballot, as appropriate, that is
properly executed and timely received, and that is cast
as either an acceptance or rejection of the Plan, will be
counted and will be deemed to be cast as an acceptance or
rejection of the Plan.
(2) Each record holder or beneficial owner of the Senior
Subordinated Notes will be deemed to have voted the full
principal amount of its claim, notwithstanding anything
to the contrary on the Ballot.
(3) Ballots or Master Ballots that are, inter alia, received
after the Voting Deadline will not be counted any purpose
in determining whether the Plan has been or rejected.
(4) Ballots or Master Ballots sent by facsimile transmission,
are illegible, or that contain insufficient information
to permit the identification of the claimants will not be
counted.
(5) Ballots or Master Ballots that do not explicitly indicate
the vote, are cast by a non-voting entity, do not contain
an original signature, split the vote, or do not match an
existing database record will not be counted.
(6) Ballots or Master Ballots other than the official form
sent will not be counted.
The Debtors propose these procedures for tabulating votes cast by holders of
Senior Subordinated Notes:
(a) All Nominees through which beneficial owners hold Senior
Subordinated Notes are required to receive and summarize
on a Master Ballot all beneficial owner Ballots cast by
the beneficial owners they serve and then return the
Master Ballot to Financial Balloting on or before the
Voting Deadline.
(b) Nominees are required to retain Court inspection for one
year following the Voting Deadline (x) the Ballots cast
by their beneficial owners and (y) any BAWAG Opt-Out
Election Forms received.
(c) Votes cast by the beneficial owners through a Nominee and
transmitted by means of a Master Ballot will be applied
against the positions held by that Nominee.
(d) Votes submitted by a Nominee on a Master Ballot will not
be counted in excess of the position maintained by the
Nominee on the Record Date.
(e) To the extent that conflicting, double or over-votes are
submitted on Master Ballots and prevalidated Ballots,
Financial Balloting will attempt to resolve those votes
before the vote certification to ensure that the votes of
beneficial owners of Senior Subordinated Notes are
accurately tabulated.
Treatment of Contributing Debtors Class 7 Holders
The Debtors believe that the Bankruptcy Code does not require the
solicitation of votes from the holders of Contributing Debtors Class 7
Subordinated Claims and Class 8 Old Equity Interests, so long as the holders
of those claims and interests are provided an opportunity to object to the
Plan confirmation.
Mr. Milmoe states that because holders of Class 7 Subordinated
Claims and Class 8 Old Equity Interests are not legally entitled
to a distribution under the Plan, and consistent with Section
1126(g), Classes 7 and 8 may be deemed to have rejected the Plan,
notwithstanding any distribution proposed for those Classes.
Mr. Milmoe states that the agreement of the Debtors, the RCM
Trustee, the Secured Lenders, the holders of Senior Subordinated
Notes, and other major case constituencies to permit a distribution to the
holders of Classes 7 and 8 should not result in a requirement that the
Debtors solicit votes on the Plan from those holders.
About Refco Inc.
Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified
financial services organization with operations in 14 countries and an
extensive global institutional and retail client base. Refco's worldwide
subsidiaries are members of principal US and international exchanges, and
are among the most active members of futures exchanges in Chicago, New York,
London and Singapore. In addition to its futures brokerage activities,
Refco is a major broker of cash market products, including foreign exchange,
foreign exchange options, government securities, domestic and international
equities, emerging market debt, and OTC financial and commodity products.
Refco is one of the largest global clearing firms for derivatives.
The Company and 23 of its affiliates filed for chapter 11protection on Oct.
17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at
Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley &
McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts to the
Bankruptcy Court on the first day of its chapter 11 cases.
Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC, is a
regulated commodity futures company that has businesses in the United
States, London, Asia and Canada. Refco, LLC, filed for bankruptcy
protection in order to consummate the sale of substantially all of its
assets to Man Financial Inc., a wholly owned subsidiary of Man Group plc.
Albert Togut, the chapter 7 trustee, is represented by Togut, Segal & Segal
LLP.
On April 13, 2006, the Court appointed Marc S. Kirschner as Refco Capital
Markets Ltd.'s chapter 11 trustee. Mr. Kirschner is represented by Bingham
McCutchen LLP. RCM is Refco's operating subsidiary based in Bermuda.
Three more affiliates of Refco, Westminster-Refco Management LLC, Refco
Managed Futures LLC, and Lind-Waldock Securities LLC, filed for chapter 11
protection on June 6, 2006 (Bankr. S.D.N.Y. Case Nos. 06-11260 through
06-11262). (Refco Bankruptcy News, Issue No. 44; Bankruptcy Creditors'
Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
SEA CONTAINERS: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Lead Debtor: Sea Containers Ltd.
22 Victoria Street
P.O. Box HM 1179
Hamilton, HMEX
Bermuda
Bankruptcy Case No.: 06-11156
Debtor affiliates filing separate chapter 11 petitions:
Entity Case No.
------ --------
Sea Containers Caribbean Inc. 06-11155
Sea Containers Services Ltd. 06-11157
Type of Business: The Debtor provides passenger and freight
transport and marine container leasing. It
operates in four segments: Ferry, Rail,
Container, and Leisure.
See http://www.seacontainers.com/
Chapter 11 Petition Date: Oct. 15, 2006
Court: District of Delaware
Debtor's Counsel: Robert S. Brady, Esq.
Young, Conaway, Stargatt & Taylor
The Brandywine Bldg.
1000 West Street, 17th Floor
P.O. Box 391
Wilmington, DE 19899
Tel: (302) 571-6600
Fax: (302) 571-1253
Financial Condition as of June 30, 2006:
Consolidated Total Assets: US$1.673 Billion
Consolidated Total Debts: US$1.582 Billion
Estimated Assets Estimated Debts
---------------- ---------------
Sea Containers Ltd. More than US$100 Mil. More than US$100 Mil.
Sea Containers Caribbean US$0 to US$50,000 US$0 to US$50,000
Inc.
Sea Containers Services More than US$100 More than US$100
Ltd. Million Million
Debtors' List of Consolidated 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
United States Trust Company Note Debt US$149,800,000
of New York 7 7/8% Senior Notes
Attn: Corporate Trust and Due February 2006
Agency Division
114 W. 47th St.
New York, NY 10036
United States Trust Company Note Debt US$115,000,000
of New York 10 3/4% Senior Notes
Attn: Corporate Trust and Due October 2006
Agency Division
114 W. 47th St.
New York, NY 10036
The Bank of New York Note Debt US$103,000,000
Attn: Corporate Trust 10 1/2% Senior Notes
Administration Due May 2012
101 Barclay St.
New York, NY 10285
SPCP (Silverpoint) Contract Debt US$19,500,000
2 Greenwich Plaza
Greenwich, CT 06830
The Bank of New York Note Debt US$19,200,000
Attn: Corporate Trust 12 1/2% Senior Notes
Administration Due December 2009
101 Barclay St.
New York, NY 10285
Centrabanca Guarantee US$19,166,720
Corso Europa 16 Borrower: Hoverspeed
Milan, Italy Italia
Collateral: Supersea
Cat 4
HSH Nordbank Guarantee US$15,800,000
Gerhart-Hauptmann-Piatz50 Borrower: Hoverspeed
Hamburg 20095 Italia
Germany Collateral: SuperSea
Cat 3
GE SeaCo SRL Trade Debt US$11,941,906
Randall M Cathell
2nd Fl., Chamberlain Place
Broad Street
Bridgetown, Barbados
West Indies
HSH Nordbank Bank Loan US$5,100,000
Gerhart-Hauptmann-Piatz50 Co-Borrower: SeaCat 4
Hamburg 20095 Limited
Germany Collateral: SeaCat
Scotland
HSH Nordbank Bank Loan US$2,700,000
Gerhart-Hauptmann-Piatz50 Co-Borrower: YMCL
Hamburg 20095 Collateral: Assets of
Germany YMCL
Bank of Scotland Bank Loan US$2,300,000
155 Bishopsgate Collateral: IT
London, EC2M 3YB equipment
UK
GE SeaCo America LLC Trade Debt US$1,751,948
1601 Oceanic Street
Charleston, SC 29405
Bank of Scotland Bank Loan US$500,000
155 Bishopsgate Co-Borrower: SC Rail
London EC2M 3YB Services
UK Collateral: Rail
infrastructure
GE Seaco British Isles Ltd. Trade Debt US$90,837
Law Office of Tank & Co. Professional Services US$22,052
GE France Trade Debt US$13,561
Jane Fryer Pension Obligations Unknown
(1983 Scheme)
Rosemary Kennell Pension Obligations Unknown
(1990 Scheme)
Citicapital Commercial Corp. Guarantee of Time Unknown
Charter Obligations
Primary Obligor:
SeaStreak America,
Inc.
JP MorganChase Bank Guarantee of Time Unknown
Charter Obligations
Primary Obligor:
SeaStreak America,
Inc.
SEA CONTAINERS: Files for Bankruptcy Protection in Delaware
-----------------------------------------------------------
Sea Containers Ltd., Sea Containers Caribbean Inc., and Sea Containers
Services Ltd. filed for chapter 11 protection on
Oct. 15, 2006, with the U.S. Bankruptcy Court for the District of Delaware.
The filing came as no surprise after Sea Containers declared it can't pay a
US$630 million debt. The move will provide the company a breathing space
from creditors while it restructure its finances.
At June 30, 2006, the group had approximately US$1.673 billion in total
assets and US$1.582 billion in total liabilities on a consolidated basis,
Robert D. MacKenzie president and chief executive officer of Sea Containers
Ltd. disclosed.
Mr. MacKenzie added that the Debtors' principal liabilities consist of:
a. indebtedness from public notes issued by Sea Containers
Ltd.,
b. guarantee and related obligations of Sea Containers Ltd.
and other prepetition financial obligations, and
c. potential pension obligations.
When the Debtors filed for bankruptcy, the Debtors have approximately US$49
million in cash available to fund their operations during their stay in
chapter 11, Mr. MacKenzie said.
The four public notes are:
a. US$115 million 10-3/4% Notes due Oct. 15, 2006;
b. US$149.8 million 7-7/8% Notes due Feb. 15, 2008;
c. US$19.2 million 12-1/2% Notes due Dec. 1, 2009; and
d. US$103 million 10-1/2% Notes due May 15, 2012.
The public notes are unsecured obligations of Sea Containers Ltd. and are
not guaranteed by any of the other Debtors or any non-debtor subsidiary.
The public notes rank equally in right of payment with respect to each
other.
Mr. MacKenzie said that the Debtors were forced to commence their bankruptcy
filing because:
a. they will not have sufficient cash available to meet their
upcoming debt obligation, specifically the Oct. 15 Public
Note payment; and
b. they desire to minimize the risk of certain creditors
taking precipitous enforcement actions against the Debtors
and their assets which could jeopardize the value of the
company as a whole, and the Debtors' ability to
successfully reorganize their operations and restructure
their balance sheet.
The Debtors anticipate that they will be able to emerge as a stronger
company concentrated around their container leasing and rail operations.
About Sea Containers Ltd.
Sea Containers Ltd. -- http://www.seacontainers.com/-- is a
Bermuda registered company with regional operating offices in
London, Genoa, New York City, Rio de Janeiro, Sydney, and
Singapore. The company is owned almost entirely by United
States shareholders and its primary listing is on the New York
Stock Exchange (SCRA and SCRB) since 1974. The company has three main
business areas: passenger transport, leisure, and marine container leasing.
In addition to its three principal divisions, the company has associated
investments in property, publishing, and plantations.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on
Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Robert S. Brady, Esq., at
Young, Conaway, Stargatt & Taylor represents the Debtors in their
restructuring efforts. When the Debtors filed for protection from their
creditors, they estimated more than $100 million in assets and debts.
* * *
In June 2006, Moody's Investors Service downgraded the senior
unsecured ratings and confirmed the senior secured rating of Sea
Containers -- Senior Unsecured to Caa3, Senior Secured at B3.
Moody's said the outlook is negative.
Standard & Poor's Ratings Services said that its ratings on Sea Containers
Ltd., including the 'CCC-' corporate credit rating, remain on CreditWatch
with negative implications.
===========
B R A Z I L
===========
BANCO DO BRASIL: Workers Accept 3.5% Pay Hike from Fenaban
----------------------------------------------------------
Banco do Brasil employees have accepted a 3.5% salary increase offer from
Fenaban, a federation of banks in Brazil, and will stop their nationwide
strike, Agencia Estado reports.
As reported in the Troubled Company Reporter-Latin America on Oct. 13, 2006,
a nationwide strike started on Oct. 5 when negotiations between workers and
the private sector banks failed. Fenaban then decided to increase its
salary raise offer to 3.5% from 2.85%, plus a one-time bonus and a bigger
share of profits. Banco do Brasil workers had initially declined the offer
as they wanted a 7.05% pay hike.
Bank workers obtained a 6% salary increase last year after protesting for
six days, Business News Americas states.
* * *
As reported on Mar. 3, 2006, Standard & Poor's Ratings Services raised its
foreign currency counter party credit ratings on Banco do Brasil S.A. to
'BB' from 'BB-'. The foreign and local currency ratings of this bank are
now equalized at 'BB'. S&P said the outlook is stable.
BANCO INDUSTRIAL: Inter-American Investment to Okay Two Loans
-------------------------------------------------------------
The Inter-American Investment Corp. aka IIC said in a press release that it
will grant up to US$23.5 million to Banco Industrial e Comercial SA in two
separate loans.
The IIC is a multilateral financial institution that is a member of the
Inter-American Development Bank Group.
Business News Americas relates that the transaction will allow Banco
Industrial to grant:
-- loans to small and medium-sized enterprises
for working capital; and
-- revolving credit lines with terms ranging from
three to twenty-four months.
The IIC had previously ratified a loan to Banco Industrial benefiting about
41 small and medium-sized enterprises in April 2004, BNamericas states.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 5, 2006, Moody's Investors Service assigned a Ba3 long-
term foreign currency rating to Banco Industrial e Comercial
S.A. aka BICBANCO's US$100,000,000 senior unsecured notes, with
final maturity in 2009. The outlook on the rating is stable.
CAIXA ECONOMICA: Workers Accept 3.5% Pay Hike from Fenaban
----------------------------------------------------------
Employees of Caixa Economica Federal have accepted a 3.5% salary increase
offer from Fenaban, a federation of banks in Brazil, and will stop their
nationwide strike, Agencia Estado reports.
As reported in the Troubled Company Reporter-Latin America on Oct. 13, 2006,
a nationwide strike started on Oct. 5 when negotiations between workers and
the private sector banks failed. Fenaban then decided to increase its
salary raise offer to 3.5% from 2.85%, plus a one-time bonus and a bigger
share of profits. Banco do Brasil workers had initially declined the offer
as they wanted a 7.05% pay hike.
Bank workers obtained a 6% salary increase last year after protesting for
six days, Business News Americas states.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 4, 2006, Moody's Investors Service upgraded these ratings
of Caixa Economica Federal:
-- long-term foreign currency deposits to Ba3 from Ba1; and
-- long- and short-term global local currency deposit ratings
to A1/Prime-1 from A3/Prime-2.
The ratings outlook is stable.
FREESCALE: Updates Progress on STMicroelectronics Joint Program
---------------------------------------------------------------
Freescale Semiconductor and STMicroelectronics have achieved critical
milestones in the advancement of their joint design program aimed at
accelerating innovation in the automotive industry. Since announcing their
initiative seven months ago, the two companies have staffed joint design
facilities, designed a next-generation micro controller core, defined
product roadmaps, and aligned process technologies.
"Building on our long-term relationship, STMicroelectronics' and Freescale's
engineering teams have rolled up their sleeves and jumped into all facets of
the joint design program," said Ugo Carena, corporate vice president and
general manager of the Automotive Products Group of STMicroelectronics.
"We've established a hierarchy, staffed several design sites, set up global
logistics, and designed a micro controller core that will be a basic
building block for many future designs. This has been an unprecedented
effort and demonstrates the tremendous value both companies will realize
from the joint development initiative."
The two companies have opened joint design centers to provide broad access
to global design talent in silicon, software, and automotive applications.
The two companies anticipate reaching a headcount of 120 engineers by the
end of the year.
As part of their far-reaching collaboration, Freescale and ST have
standardized on Power Architecture technology as the instruction set
architecture for jointly developed micro controller or MCU products. The
two companies also are focusing product development efforts on a wide range
of automotive applications, including powertrain, chassis, motor control,
and body systems.
One of the most noteworthy achievements of the collaboration to date is the
joint definition and development of a power-efficient, 32-bit micro
controller core based on the Power Architecture e200 core. This newly
developed Z0H derivative core serves as the CPU of the companies' initial
cost-optimized MCUs designed for value-priced body control applications.
Initial samples of these jointly designed products are planned for the
second half of 2007. One indication of the cooperation's success is ST's
decision to migrate its future automotive MCU designs to these and other
derivative cores.
"The speed at which we defined and agreed upon a next-generation core built
on Power Architecture technology underscores the strength and momentum of
our collaboration," said Paul Grimme, senior vice president and general
manager of Freescale's Transportation and Standard Products Group. "Our
commitment to develop an optimized core and implement it in an
application-specific MCU sets a high bar for innovation. As we move from
design to production, customers will benefit from the dual-source
availability of our jointly designed automotive MCUs."
Freescale and ST plan to manufacture jointly designed MCU products on
mutually aligned 90-nm process technology. The companies have achieved the
milestone of aligning a process test vehicle at Freescale and ST wafer fabs.
In addition, joint development of non-volatile memory (NVM) technology is
underway. Forthcoming MCU products are expected to be designed to integrate
cost- and performance-optimized flash modules for specific automotive
applications. The companies expect future design and development activities
will extend into additional applications, such as safety systems, driver
assistance, and driver information.
About STMicroelectronics
STMicroelectronics is a global leader in developing and delivering
semiconductor solutions across the spectrum of microelectronics
applications. An unrivalled combination of silicon and system expertise,
manufacturing strength, Intellectual Property portfolio and strategic
partners positions the Company at the forefront of System-on-Chip technology
and its products play a key role in enabling today's convergence markets.
The Company's shares are traded on the New York Stock Exchange, on Euronext
Paris and on the Milan Stock Exchange. In 2005, the Company's net revenues
were US$8.88 billion and net earnings were US$266 million. Further
information on ST can be found at
About Freescale
Based in Austin, Texas, Freescale Semiconductor, Inc. (NYSE:FSL)
(NYSE:FSL.B) -- http://www.freescale.com/-- designs and
manufactures embedded semiconductors for the automotive,
consumer, industrial, networking and wireless markets.
Freescale became a publicly traded company in July 2004. The
company has design, research and development, manufacturing or
sales operations in more than 30 countries. In Latin America,
Freescale has operations in Argentina, Brazil and Mexico.
* * *
Freescale Semiconductor's 7-1/8% Senior Notes due 2014 carry
Moody's Investors Service's Ba1 rating.
As reported in the Troubled Company Reporter on Sept. 26, 2006, Fitch
downgraded Freescale Semiconductor Inc.'s Issuer Default
Rating, senior unsecured notes, and senior unsecured bank credit
facility to 'BB+' from 'BBB-' following the company's
confirmation that it has entered into a definitive agreement to
be purchased by a consortium of private equity firms for US$17.6
billion, the largest ever technology leveraged buy-out.
PHARMANET DEVELOPMENT: Amends Revolving Credit Agreement
--------------------------------------------------------
PharmaNet Development Group, Inc., has amended its credit financing
agreement. As amended, the credit agreement provides the company with a
US$45 million revolving credit facility and adjusts certain provisions of
the credit facility. UBS AG, Stamford Branch, remains the administrative
agent.
"We are very pleased that the credit facility amendment has been completed,"
commented John P. Hamill, executive vice president and chief financial
officer. "The amendment provides the company with additional operational
flexibility."
About PharmaNet
Headquartered in Princeton, New Jersey, PharmaNet Development
Group, Inc. (NASDAQ: PDGI) -- http://www.pharmanet.com/ -- is
an international drug development services company offering a
comprehensive range of clinical development, clinical and
bioanalytical laboratory, and consulting services to the branded
pharmaceutical, biotechnology, generic drug and medical device
industries. The company has more than 30 offices, facilities
and laboratories with more than 2,000 employees strategically
located throughout the world including the Argentina, Brazil and Mexico.
* * *
On Oct. 5, Standard & Poor's Ratings Services affirmed its
ratings on Princeton, N.J.-based contract research services
provider PharmaNet Development Group Inc. (formerly known as
SFBC International Inc.), including the 'B+' corporate credit
rating. The ratings were removed from CreditWatch, where they
were placed with negative implications on May 11. S&P said the
outlook is negative.
PHARMANET DEVELOPMENT: Appoints P. Tombros & R. Classon to Board
----------------------------------------------------------------
PharmaNet Development Group, Inc., has appointed Peter Tombros and Rolf
Classon to its Board of Directors.
"One of our priorities has been to appoint new members to the
Board," commented Jeffrey P. McMullen, president and chief executive
officer. "In addition to their vast industry knowledge, Peter and Rolf are
team-oriented, seasoned board members who can help guide the Company into
the future with a shared vision and commitment to employees, customers,
suppliers and shareholders."
The Board appointed Mr. Tombros to fill the vacancy created by
the resignation of one of its directors. Mr. Tombros will serve
until the Annual Meeting of Stockholders of the Company to be
held in 2007.
Mr. Tombros is currently Professor, distinguished executive in
residence at Pennsylvania State University. Previously, he
served as chairman and chief executive officer of VivoQuest,
Inc., a drug discovery company, from 2002 to 2005 and president
and chief executive officer of Enzon Pharmaceuticals, Inc., a
biopharmaceutical company, from 1994 to 2001.
Mr. Tombros spent much of his career at Pfizer Inc., where he
held various positions of increasing responsibility including
vice president strategic planning and vice president investor
relations from 1990 to 1994, executive vice president, Pfizer
Pharmaceuticals from 1986 to 1990, senior vice president and
general manager, Roerig Division, from 1980 to 1986, vice
president marketing of Pfizer Laboratories Division from 1975 to
1980 as well as other marketing positions within Pfizer
laboratories Division from 1968 to 1975.
"Having devoted his career to drug development, Peter's
experience in the pharmaceutical and biotechnology industries
will be an asset to the Board," commented Jack Levine, chairman.
"His knowledge, industry perspective and solid track record will
help direct PharmaNet Development Group to build upon and
execute its strategies."
On Oct. 2, upon the recommendation of the Nominating Committee,
the Board increased the size of the Board from six members to
seven members, and appointed Mr. Classon to fill the vacancy.
Mr. Classon will serve until the Annual Meeting of Stockholders
of the Company to be held in 2007.
Mr. Classon served as interim president and chief executive
officer of Hillenbrand Industries from May 2005 to March 2006 at
which time he was appointed non-executive chairman, having
previously retired as chairman, executive committee from Bayer
Healthcare in 2004. Previously, he held the positions of
president of Bayer Diagnostics from 1995 through 2002 and
executive vice president Bayer Diagnostics from 1991 to 1995 and
in these positions orchestrated a major turnaround and
strategically strengthened the company through acquisitions and
alliances.
From 1990 to 1991, Mr. Classon was president and chief operating
officer of Pharmacia BioSystems AB and in this role implemented
a major restructuring that resulted in improved profits and
performance. He was president Pharmacia Development Company
from 1984 to 1990 and president of Pharmacia AB Hospital
Products Division from 1981 to 1984. Prior to joining Pharmacia
in 1981, he served in general and organizational management
roles and consulted to the pharmaceutical industry.
"Rolf has had significant success managing and improving
complex, global businesses," commented Jack Levine, chairman.
"His guidance will assist PharmaNet Development Group to grow
and expand its footprint around the world."
The Board determined that each of Mr. Tombros and Mr. Classon
has no relationship with the Company or its subsidiaries, either
directly or indirectly, that would be inconsistent with a
determination of independence under the applicable rules and
regulations of NASDAQ or the Securities and Exchange Commission.
Neither Mr. Tombros or Mr. Classon nor any member of his
immediate family has engaged, directly or indirectly, in any
transaction, or series of similar transactions, with the Company
or any of its subsidiaries since Jan. 1 in which the amount
involved exceeds US$60,000. In addition, neither Mr. Tombros,
nor Mr. Classon has any family relationship with any executive
officer or director of the Company.
The Board is in the process of determining which Committees Mr.
Tombros and Mr. Classon will serve, if any.
Mr. Tombros and Mr. Classon will receive compensation for
serving on the Board pursuant to the Board compensation plan
that was previously disclosed in the Company's filings with the
SEC.
About PharmaNet
Headquartered in Princeton, New Jersey, PharmaNet Development
Group, Inc. (NASDAQ: PDGI) -- http://www.pharmanet.com/ -- is
an international drug development services company offering a
comprehensive range of clinical development, clinical and
bioanalytical laboratory, and consulting services to the branded
pharmaceutical, biotechnology, generic drug and medical device
industries. The company has more than 30 offices, facilities
and laboratories with more than 2,000 employees strategically
located throughout the world including the Argentina, Brazil and Mexico.
* * *
On Oct. 5, Standard & Poor's Ratings Services affirmed its
ratings on Princeton, N.J.-based contract research services
provider PharmaNet Development Group Inc. (formerly known as
SFBC International Inc.), including the 'B+' corporate credit
rating. The ratings were removed from CreditWatch, where they
were placed with negative implications on May 11. S&P said the
outlook is negative.
PETROLEO BRASILEIRO: Fitch Rates US$500MM 6.125% Notes at BB+
-------------------------------------------------------------
Fitch Ratings has assigned a 'BB+' rating to Petroleo Brasileiro S.A. aka
Petrobras' US$500 million 6.125% senior notes due 2016 issued through its
wholly owned subsidiary, Petrobras International Finance Company aka PIFCo.
PIFCo is unconditionally guaranteed by Petrobras. Proceeds are to be used
for debt refinancing and other general corporate purposes.
The ratings of Petrobras are supported by substantial proved hydrocarbon
reserves and increasing upstream output, recognized leadership in offshore
exploration and production, a favorable international product price
environment, successful corporate and industry restructuring during the past
decade, a transition to more transparent financial standards, and dominant
domestic market shares. The company further benefits from material
international operations and its shift to a net export position in 2005,
which supports the generation of foreign currency cash flow. These factors
are tempered by vulnerability to fluctuations in international commodity
prices, exposure to local political interference, currency risk, domestic
market revenue concentration, and significant medium-term capital-investment
requirements linked to the company's ambitious strategic plan. The
announced nationalization of Petrobras' Bolivian energy investments, while
negative, is not expected to affect materially the company's credit quality
or ratings. The combination of ultimate government control, which
underscores the ability to influence corporate strategy and long-term policy
decisions, and a significant domestic market focus continues to affect the
company's rating.
Earlier this year, Petrobras announced its 2007-2011 business plan, which
primarily reflects new projects to increase production and refining both in
Brazil and internationally, the increase in costs of related services and
equipment in the productive chain, and a stronger local currency, all of
which increases capital spending when expressed in US dollars. Under the
new business plan, Petrobras estimates it will invest US$87.1 billion
through 2011, an increase of US$34.7 billion (66%) for the comparable period
under the previous plan. Approximately US$49 billion (56% of total),
increasing from US$31 billion (59%), has been allocated to exploration and
production (E&P) activities, representing a slight shift in allocation
percentage toward downstream activities. Fitch views the planned increase
in E&P investment, including additional investment in natural gas E&P, to be
positive for the long-term credit quality of the company. Management
projects no significant changes on the main corporate strategic targets or
pressures on the financial profile, as approximately 87% of Petrobras'
funding needs (investments and debt amortizations) should continue to be met
via internal cash flows, with the rest to be financed with conventional
financing mechanisms, project structures, and special-purpose vehicles.
Fitch recognizes the positive credit effect of the market-oriented measures
implemented in the past five years as well as improvements in corporate
governance. The opening to private participation and deregulation, strong
management commitment to increased financial transparency, corporate
reorganization and modernization, and aggressive upstream production
development, coupled with value-chain strategies, should strengthen credit
fundamentals. While there has been close coordination of business plans
with federal authorities, it does not appear to have affected
market-oriented efforts to improve operational efficiencies, increase
upstream production volumes, or adhere to capital discipline guidelines.
Petrobras is a mixed-capital company, with the government owning
approximately 40% of Petrobras' total capital and 55.7% of its voting
capital. The remainder of the shares are publicly traded, and an estimated
40% is held by foreign investors. Despite Fitch's concerns generated by the
significant imbalance between local currency revenues and hard currency
expenses and liabilities, it is important to note that Petrobras' operations
are of vital economic importance to the nation, suggesting the government
has a prime incentive to ensure Petrobras' access to hard currency for
servicing foreign obligations.
Petrobras' financial profile remains strong, with solid credit-protection
measures continuing to benefit from increased production and the global rise
in hydrocarbon and product prices. The company reported total debt/LTM
(latest 12 months) EBITDA of 0.4x and EBITDA/interest expense of 26.5x under
U.S. GAAP through June 2006. Petrobras maintains strong liquidity in
relation to short-term debt obligations. The company ended the second
quarter of 2006 with a total consolidated debt of US$19.682 billion, of
which approximately 25% was classified as short term. The company's
sizeable US$10.4 billion in cash and equivalents resulted in total net debt
of US$9.3 billion. Petrobras' management has indicated its preference to
maintain a substantial cash balance going forward, partially debt funded, to
minimize its exposure to international capital market volatility.
The company's EBITDA continues to be favored by the increase in the domestic
production of oil and natural gas liquid, even though it was offset by
scheduled maintenance stoppages in several production systems during the
semester. On July 25, 2006, the company closed its tender for certain
outstanding bonds of its subsidiary PIFCo for liability management purposes,
which totaled US$866 million.
Petrobras is an integrated international oil and gas company engaged in the
exploration, development and production of hydrocarbons and in the refining,
marketing, transportation and distribution of oil and a wide range of
petroleum products, petroleum derivatives, petrochemicals and liquid
petroleum gas. By law, the federal government must hold at least a majority
of Petrobras' voting stock.
PETROLEO BRASILEIRO: Starting Production at P-34 Oil Rig
--------------------------------------------------------
A source from Petroleo Brasileiro SA, the state-owned oil company of Brazil,
told the Estado newswire that the firm will start production at its P-34 oil
rig.
Dow Jones Newswires relates that the P-34 rig is designed to pump up to
60,000 barrels of oil per day from the Jubarte field, which is off the coast
of Espirito Santo.
According to Estado, Petroleo Brasileiro had not fully ramped up its P-50
rig that was taken on stream in April.
Estado notes that five other production wells are planned for the P-50 that
would increase its production 50% of its capacity of 180,000 barrels per
day.
Petroleo Brasileiro had forecasted in April that after half a year, P-50
would reach its full production capacity, BNamericas reports.
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.
SANMINA-SCI: Needs to Restate Historical Financial Statements
-------------------------------------------------------------
Sanmina-SCI Corp. disclosed that the Special Committee of its Board of
Directors reported its findings after an investigation into the company's
stock option administration policies and practices dating back to Jan. 1,
1997.
The Special Committee, comprised of disinterested, non-management members of
the Board, retained independent counsel and forensic accountants to assist
it in conducting the investigation. In the course of its four-month
investigation, the investigation team examined over one million electronic
documents and over 350,000 pages of hardcopy documents, and conducted more
than 40 interviews with current and former employees, directors and
advisors.
The Special Committee found that most stock option grants to executives and
other employees between 1997 and 2006 were not correctly dated or accounted
for and will require that the company restate its historical financial
results and record non-cash compensation charges. The investigation
identified concerns in particular regarding the actions of a former and a
current member of management involved in the authorization, recording and
reporting of stock option grants. The company has accepted the resignation
of the current member of management. The Board of Directors and Special
Committee have responded and continue to respond to these issues and are
taking appropriate action, the details of which will be disclosed to the
appropriate regulatory authorities.
The Special Committee also made recommendations to the Board of Directors
regarding remediation of weaknesses in the company's internal controls over
its stock administration practices that led to the issues identified,
including, among other controls, the following:
-- Establishing fixed dates for the granting of all
equity-based awards;
-- Precluding officers, and certain other identified
executives, from receiving equity-based awards during any
black-out periods;
-- Requiring auditable, verifiable evidence of the date of
approval for routine new hire, promotion and certain
discretionary grants; and
-- Mandating approval of the Compensation Committee prior to
issuance of all other grants.
Each of the recommendations was voted on by the Board of Directors and
unanimously adopted. The recommendations are effective immediately.
Commenting on the situation, Sanmina-SCI's Chief Executive Officer, Jure
Sola, stated, "I am pleased with the thoroughness of the Special Committee's
investigation and the recommendations they have made to remediate, and help
us insure that this never happens again. I regret that our stock options
program was not properly administered in the past and I apologize to our
stockholders, employees, and customers for any impact or concerns these
issues may have caused. With this investigation now behind us, we expect to
refocus our management's attention on servicing the needs of our customers
and improving our operating efficiencies."
The Sanmiba-SCI's management has determined, and the audit committee of the
company's Board of Directors concurred, restatement of the company's
historical financial statements will be necessary because the company will
need to record additional stock-based compensation expenses as a result of
the findings of the Special Committee.
Sanmina-SCI believes that substantially all of these charges will be of a
non-cash nature. The company has, in consultation with its independent
auditors, submitted the proposed accounting treatment for the charges to the
Office of the Chief Accountant of the Securities and Exchange Commission.
Because of the pending OCA review, the company has not yet determined
conclusively the amount of such charges, the resulting tax impact, or which
periods may require restatement. The company expects to file its restated
financial statements as soon as reasonably practicable after the OCA
responds to the company's submission. In addition, the company's management
has met with the Listings Qualification Panel of the Nasdaq Stock Market
regarding the company's plan for completing its late SEC filings and
returning to compliance with the listing qualification requirements of the
Nasdaq Stock Market. The Listings Qualification Panel has not yet ruled on
the company's request.
Sanmina-SCI continues to cooperate with the SEC and the United States
Attorney's Office for the Northern District of California in response to the
Security and Exchange Commission's informal inquiry and the United States
Attorney's Office's grand jury subpoena for documents relating to the
company's past practices for granting employee stock options.
Headquartered in San Jose, California, Sanmina-SCI Corporation
is one of the largest electronics contract manufacturing
services companies providing a full spectrum of integrated,
value added solutions. In Europe, the company has operations in
Finland, France, Ireland, Germany, Sweden, Hungary, and Spain. In Latin
America, it operates in Brazil and Mexico.
* * *
As reported in TCR-Europe on Aug. 28, Fitch Ratings downgraded
Sanmina-SCI Corp.:
-- Issuer Default Rating to 'B+' from 'BB-'
Fitch also placed Sanmina's IDR, as well as these ratings, on
Rating Watch Negative:
-- Senior subordinated debt 'B+'
-- First lien senior secured credit facility 'BB+'.
===========================
C A Y M A N I S L A N D S
===========================
ALLERWAY INVESTMENTS: Final Shareholders Meeting Is on Nov. 2
-------------------------------------------------------------
Allerway Investments Ltd.'s shareholders will convene for a final meeting on
Nov. 2, 2006, at:
Smith Barney Private Trust Company (Cayman) Limited
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
Accounts on the company's liquidation process will be presented
during the meeting.
The liquidator can be reached at:
Buchanan Limited
P.O. Box 1170, George Town
Grand Cayman, Cayman Islands
BLANCHFLOWER INVESTMENTS: Last Shareholders Meeting Is on Nov. 2
----------------------------------------------------------------
Blanchflower Investments Ltd.'s shareholders will convene for a final
meeting on Nov. 2, 2006, at:
Smith Barney Private Trust Company (Cayman) Limited
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
Accounts on the company's liquidation process will be presented
during the meeting.
The liquidator can be reached at:
Buchanan Limited
P.O. Box 1170, George Town
Grand Cayman, Cayman Islands
BURGUNDY LTD: Liquidator Presents Wind Up Accounts on Nov. 2
------------------------------------------------------------
Burgundy Ltd.'s shareholders will convene for a final meeting on Nov. 2,
2006, at:
Cititrust (Cayman) Limited
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
Accounts on the company's liquidation process will be presented
during the meeting.
The liquidator can be reached at:
Buchanan Limited
P.O. Box 1170, George Town
Grand Cayman, Cayman Islands
ETV LTD: Creditors Have Until Oct. 18 to File Proofs of Claim
-------------------------------------------------------------
ETV Ltd.'s creditors are given until Oct. 18, 2006, to prove their claims to
Robin J. Mayor, the company's liquidator, or be excluded from receiving any
distribution or payment.
Creditors are required to send by the Oct. 18 deadline their
full names, addresses, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
Mr. Mayor.
A final general meeting will be held at the liquidator's place
of business on Nov. 7, 2006, at 9:30 a.m., or as soon as
possible.
ETV Ltd.'s shareholders will determine during the meeting, through a
resolution, the manner in which the books, accounts and documents of the
company and of the liquidator will be disposed.
ETV Ltd.'s shareholders agreed on Oct. 2, 2006, to place the company into
voluntary liquidation under Bermuda's Companies Act 1981.
The liquidator can be reached at:
Robin J. Mayor
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, Bermuda
KIKI CO: Invites Shareholders for Final Meeting on Nov. 2
---------------------------------------------------------
Kiki Co. Ltd.'s shareholders will convene for a final meeting on Nov. 2,
2006, at:
Smith Barney Private Trust Company (Cayman) Limited
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
Accounts on the company's liquidation process will be presented during the
meeting.
The liquidator can be reached at:
Buchanan Limited
P.O. Box 1170, George Town
Grand Cayman, Cayman Islands
MOON SHINE: Schedules Final Shareholders Meeting on Nov. 2
----------------------------------------------------------
Moon Shine Ltd.'s shareholders will convene for a final meeting on Nov. 2,
2006, at:
Cititrust (Cayman) Limited
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
Accounts on the company's liquidation process will be presented during the
meeting.
The liquidator can be reached at:
Buchanan Limited
P.O. Box 1170, George Town
Grand Cayman, Cayman Islands
PRIDE & JOY: Shareholders Gather for Final Meeting on Nov. 2
------------------------------------------------------------
Pride & Joy Ltd.'s shareholders will convene for a final meeting on Nov. 2,
2006, at:
Cititrust (Cayman) Limited
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
Accounts on the company's liquidation process will be presented
during the meeting.
The liquidator can be reached at:
Buchanan Limited
P.O. Box 1170, George Town
Grand Cayman, Cayman Islands
SAMBA HOLDINGS: Shareholders Convene for Final Meeting on Nov. 2
----------------------------------------------------------------
Samba Holdings Ltd.'s shareholders will convene for a final meeting on Nov.
2, 2006, at:
Cititrust (Cayman) Limited
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
Accounts on the company's liquidation process will be presented
during the meeting.
The liquidator can be reached at:
Buchanan Limited
P.O. Box 1170, George Town
Grand Cayman, Cayman Islands
SEVEN TOWERS: Final Shareholders Meeting Is Scheduled for Nov. 2
----------------------------------------------------------------
Seven Towers Ltd.'s shareholders will convene for a final meeting on Nov. 2,
2006, at:
Cititrust (Cayman) Limited
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
Accounts on the company's liquidation process will be presented during the
meeting.
The liquidator can be reached at:
Buchanan Limited
P.O. Box 1170, George Town
Grand Cayman, Cayman Islands
SYSTEIA FUTURES: Last Day to File Proofs of Claim Is on Oct. 27
---------------------------------------------------------------
Systeia Futures Usd Ltd.'s creditors are required to submit proofs of claim
by Oct. 27, 2006, to the company's liquidators:
David A.K. Walker
Lawrence Edwards
PwC Corporate Finance & Recovery (Cayman) Ltd.
Strathvale House, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the Oct. 27 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Systeia'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:
Jodi Jones
P.O. Box 258, George Town
Grand Cayman, Cayman Islands
Tel: (345) 914 8694
Fax: (345) 945 4237
YELLOW FILE: Calls Shareholders for Final Meeting on Nov. 2
-----------------------------------------------------------
Yellow File Ltd.'s shareholders will convene for a final meeting on Nov. 2,
2006, at:
Cititrust (Cayman) Limited
CIBC Financial Centre, George Town
Grand Cayman, Cayman Islands
Accounts on the company's liquidation process will be presented
during the meeting.
The liquidator can be reached at:
Buchanan Limited
P.O. Box 1170, George Town
Grand Cayman, Cayman Islands
===============
C O L O M B I A
===============
BANCO DEL CAFE: Davivienda Acquiring 99% of Firm for US$927MM
-------------------------------------------------------------
Banco Davivienda SA has won the auction of a 99% stake in Banco del Cafe
with a US$927 million bid, the Associated Press reports.
As reported in the Troubled Company Reporter-Latin America on Oct. 11, 2006,
Davivienda, along with Banco de Bogota, decided to participate in the
auction Fogafin -- a government agency insures bank deposits -- organized
for Banco del Cafe. Of the eight banks that paid the COP50-million data
room fee to look at Banco del Cafe's books, Davivienda and Banco de Bogota
presented bids.
AP underscores that Davivienda's offered almost twice the minimum price set
by the government and about US$139 million more than what Banco de Bogota
offered.
Jorge Castellanos, the chief executive officer of Banco del Cafe told AP,
"The price is in the high range of our expectations."
AP relates that with the acquisition of a controlling stake in Banco del
Cafe, the last major state-run bank and the sixth biggest bank in Colombia,
Davivienda will overtake Spain's Banco Bilbao Vizcaya Argentaria SA as the
third largest financial institution in the country.
Pedro Uribe, the vice president of planning for Davivienda, told AP that the
firm will pay for the purchase of Banco del Cafe with the sale of:
-- new shares to existing shareholders for US$100
million,
-- an international bond sale for US$125 million, and
-- a syndicated loan from foreign banks for US$250
million.
The International Finance Corp. will increase its 4% stake in Davivienda
with a capital injection of US$75 million, AP states, citing Mr. Uribe.
Bancafe was formed by the merging of Bancafe assets and part of
Granahorrar, a local mortgage bank, in March 2005. To save them
from bankruptcy when the country was hit by a financial crisis
in the late 90s, the government had taken control of the banks.
BANCOLOMBIA: Purchases Mortgage-Backed Securities TIPS
------------------------------------------------------
Bancolombia has purchased mortgage-backed TIPS, indexed to the Unidad de
Valor Real or UVR, in a public offering made by Titularizadora Colombiana
S.A. The purchase amounts to approximately COP490 billion.
Details of the purchased securities:
Type Rate Value expressed in UVR
TIPS A E82011 2.50% EA 1,563,713,000
TIPS A E8 2016 3.50% EA 968,080,000
TIPS A E8 2021 4.90% EA 321,642,000
TIPS B 2021 6.0% EA 183,486,000
TIPS MZ 2021 12.00% EA 55,045,000
Total 3,091,966,000
The value of the UVR as of Oct. 17, 2006, is COP159,6093.
* * *
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.
ECOPETROL: Bari Indian Natives Demand Halt to Oil Drilling
----------------------------------------------------------
Several Bari Indians held demonstrations against Ecopetrol, demanding that
the company stop drilling for oil on the land adjoining their territory, the
Associated Press reports.
Atrigbuanina, the chieftain of the tribe, told AP, "Don't forget that this
is our territory. Why is the Colombian state not respecting our rights?"
According to AP, Ecopetrol is seeking for new oil deposits so Colombia can
avoid losing self-sufficiency in petroleum by 2011. Ecopetrol recently
disclosed that it is selling a 20% share to a foreign investor to help
hasten the exploration.
AP notes that the Indians had hoped for a meeting in Tibu with a government
delegation, but authorities had it postponed, as they were concerned that
leftist rebels had infiltrated the demonstrations. State government and
local military and police leaders attended the assembly.
Maria Isabel Nieto, the Deputy Interior Minister of Colombia, called the AP,
saying that military intelligence indicated members of the Revolutionary
Armed Forces of Colombia were accompanying the Bari. Minister Nieto also
said that government and Ecopetrol officials had to leave the area.
The claim of guerrilla involvement was an excuse to avoid talks, AP says,
citing Javier Marin, an activist with the Minga human rights group.
Ashcayra Arabadora, a member of the Bari's ruling council, told AP that oil
firms started to extract crude from the region in 1932 after decimating the
Bari.
Meanwhile, the Interior Ministry of Colombia explained to AP that it
ratified drilling on the disputed three-hectare site after a helicopter
overflight found no Bari settlements nearby.
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
===================
* COSTA RICA: Congress Talks on End of State Insurance Monopoly
---------------------------------------------------------------
The economy committee of the Costa Rican congress has been debating a
proposal to end the state insurance monopoly, according to reports by the
local press.
Business News Americas relates that President Oscar Arias passed the bill to
the congress on Aug. 3. The reform on the insurance law was required for
free trade accord discussions with the United States.
BNamericas underscores that the Costa Rican government agreed to end the
state insurance monopoly by next year.
According to BNamericas, the existing legal framework for the country's
insurance market dates from 1924. It establishes government monopoly on
insurance through the National Insurance Institute.
The economy committee held meetings with representatives from different
industries. There will be a meeting with the central bank's executive
president, BNamericas states.
* * *
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
===================================
BANCO INTERCONTINENTAL: Prosecutor Requests Central Bank Files
--------------------------------------------------------------
Jose Manuel Hernandez, the Dominican Republic's National District
prosecutor, told Dominican Today that he requested for Central Bank
documents to widen the probe on the involvement of Jose Lois Malkun, the
former Central Bank head, in the Banco Intercontinental SA fraud case.
According to Dominican Today, the Office of the Prosecutor interrogated Mr.
Malkun.
Dominican Today relates that Ramon Baez Figueroa -- the former president of
Banco Intercontinental and one of the defendants in the case -- filed a
complaint against Mr. Malkun for alleged violation of the country's Monetary
and Financial Law 183-02 in through the delivery of DOP40,000 billion
without waiting for the liquidation procedure of Banco Intercontinental.
Mr. Figueroa accused Mr. Malkun of embezzlement, according to several
articles of the Penal Code, Dominican Today notes.
Dominican Today underscores that the monetary and financial authorities
under the leadership of then Central Bank governor, Mr. Malkun, ordered in
2003 the return of deposits above the ARS500,000 limit, as the Monetary and
Financial Law establishes, through the delivery of billions of pesos from
Banco Intercontinental.
Mr. Hernandez told Dominican Today that he requested the documentation from
the Central Bank through the Banks Superintendence. The documents, which
have not yet been delivered, includes:
-- accountable registry,
-- moneys paid, and
-- moneys received.
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 LEON: Posts DOP23,836 Million Reserves in Third Trimester
---------------------------------------------------------------
Banco Multiple Leon SA aka Banco Leon said in a press release that its
reserves increased 16% to DOP23,836 million in the third trimester of 2006,
compared with the same period in 2005.
According to a statement, Banco Leon's productive reserves increased 30.8%
in the third trimester this year, compared with the third trimester of last
year.
DR1 Newsletter relates that the growth is due to the 3.5% payable portfolio
for the total reserves in 2006, compared with 3.9 in 2005. The growth is
also because of the sold real estate as part of the total reserves
percentage that is 0.7% this year, compared with 2.9% last year.
Banco Leon had a net growth of DOP80.7 million at the closing of the third
trimester of 2006, about 16% higher than the one recorded in the same period
of 2005, reports say.
Banco Leon said it has launched 14 new branches and would eventually
introduce Phone-Banking and Internet Banking, DR1 reports.
* * *
On Sept. 15, 2006, Fitch Ratings assigned these ratings to Banco Multiple
Leon SA:
-- CCC+ long-term issuer default rating;
-- C short-term rating;
-- BBB(DOM) national long-term rating;
-- F3(DOM) national short-term rating;
-- Outlook Positive
* DOMINICAN REPUBLIC: IMF May Extend Stand-by Agreement
-------------------------------------------------------
The International Monetary Fund aka IMF told DR1 Newsletter that if the
Dominican Republic's Congress asks for it, it is keen on extending its
stand-by agreement with the country until April 2007.
According to Dr1, the agreement was implemented in January 2005. With a
28-month duration, the accord will end in April 2007.
Dr1 relates that the process has been slow, with the presentation of the 6th
and 7th revisions rescheduled for December 2006 from August 2006.
Hector Valdez Albizu, the president of the Dominican Central Bank, has been
partial to external impositions on economic matters, Diario Libre states.
Mr. Albizu is hoping that the agreement with the IMF is extended, DR1
reports.
* * *
The Troubled Company Reporter-Latin America reported on
May 9, 2006, that Fitch Ratings upgraded these debt and issuer
Default Ratings of the Dominican Republic:
-- Long-term foreign currency Issuer Default Rating
to B from B-;
-- Country ceiling upgraded to B+ from B-;
-- Foreign currency bonds due 2006 to B-/RR4 from CCC+/RR4;
-- Foreign currency Brady bonds due 2009 to B/RR4
from B-/RR4;
-- Foreign currency bonds due 2011 to B/RR4 from B-/RR4;
-- Foreign currency bonds due 2013 to B-/RR4 from CCC+/RR4;
-- Foreign currency bonds due 2018 to B/RR4 from B-/RR4; and
-- Foreign currency collateralized Brady bonds due 2024
to B+/RR3 from B/RR3.
Fitch also affirmed these ratings:
-- Long-term local currency Issuer Default Rating: B; and
-- Short-term Issuer Default Rating: B.
Additionally, Fitch assigned a debt and Recovery Rating to this
issue:
-- Foreign currency bonds due 2027: B/RR4.
Fitch said the rating outlook for the long-term foreign and
local currency IDRs is Stable.
=============
E C U A D O R
=============
DOLE FOOD: Restructuring Fresh Flower Business
----------------------------------------------
Dole Food Co., Inc. disclosed that it was restructuring its Dole Fresh
Flowers division to better focus on high-value products and flower
varieties, and position the business unit for future growth. Dole said
these actions are a continuation of performance-improving measures that
began in 2005, and represent an acknowledgement of the global challenges
facing the fresh flower industry.
"The fresh flower business is highly fragmented and competitive.
Industry oversupply has driven prices down, creating significant pressure on
growers to improve performance. Latin American growers are also facing new
competition from emerging markets in Africa and Asia," said John Amaya,
president Dole Fresh Flowers. "Being a market leader also means making
difficult decisions, and today we continue to take necessary steps to
reinvent our business, implementing changes that will create efficiencies,
improve performance and allow DFF to focus on markets in which Dole's
quality products and service can earn a premium."
In a move to better align supply with demand, and focus on delivering
superior products and service for its customers, DFF is implementing
measures that will allow it to focus on delivering more desirable varieties
of flowers to market, and increase the quality of those products. Specific
actions Dole Fresh Flowrs is taking include:
-- Dole Fresh Flowers will close the flowers operation in
Ecuador and two farms in Colombia
(Porcelain and Splendor-Corzo), affecting 2,188
employees. These farms have historically produced
products with limited/seasonal demand and have high
costs.
-- Additionally, Dole Fresh Flowers is downsizing other farms
of the flowers operation, which will impact 1,275
employees.
-- A global sales force reduction of 35 percent is underway,
and Dole Fresh Flowers is making additional
administrative/management workforce reductions of 29%.
-- Dole Fresh Flowers subsidiaries' employees in Colombia and
Ecuador who are affected by this disclosure will receive
appropriate severance benefits.
-- In addition to reducing headcount in the operation, Dole
Fresh Flowers is also taking steps to lower
infrastructure/overhead costs throughout the operation.
-- The above measures are expected to improve annual cash flow
by approximately US$35 million. Restructuring charges, the
bulk of which are expected to be recorded during the third
and fourth quarters of 2006, are estimated at US$26
million, which approximately US$13 million represents cash.
-- Certain Dole Fresh Flowers customers will be affected by
this restructuring, and are currently being notified by the
company. Dole Fresh Flowers is committed to maintaining
relationships with current or past customers as it
completes this restructuring and focuses efforts on
penetrating new markets with a premium product.
The Miami Herald underscores that Dole Fresh did not say how many jobs would
be cut at its headquarters, which are located west of Miami International
Airport.
Dole Food told Central Valley Business Times that the measures are aimed at
improving annual cash flow by US$35 million.
Some clients will be affected by the restructuring, Central Valley Business
says, citing Dole Food.
"Dole Fresh Flowers understands, and takes very seriously, the impact the
announcement will have on employees and their families. We are working with
our employees and government officials in Colombia and Ecuador to ensure the
payment of severance benefits and a smooth transition for these changes,"
said Mr. Amaya.
About Dole Fresh Flowers
Dole Fresh Flowers is the largest producer of fresh-cut flowers in Latin
America. Over 90% of the company's Latin American flowers are shipped into
North America. Its products include over 800 varieties of fresh-cut
flowers, such as roses, carnations and alstroemeria, and are produced on
approximately 1,400 acres in Colombia and Ecuador. The company's
subsidiaries own and operate packing and cooling facilities on their flower
farms, and one of its subsidiaries leases a facility in Bogota, Colombia for
bouquet construction.
About Dole Food Co.
Dole Food Company Inc., headquartered in Westlake Village,
California, has revenues of US$5.8 billion. Dole grows and
sources from independent growers and transports bananas grown
primarily in Colombia, Costa Rica, Ecuador, Guatemala and
Honduras for markets principally in North America, Europe, the
Mediterranean and selected Asian markets.
* * *
As reported in the Troubled Company Reporter-Latin America on
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 US Consumer Products,
Beverage, Toy, Natural Product Processors, Packaged Food
Processors, and Agricultural Cooperative sectors, the rating
agency confirmed its Ba3 Corporate Family Rating for Dole Food
Co., Inc.
Additionally, Moody's revised or confirmed its probability-of-
default ratings and assigned loss-given-default ratings on these
loans facilities:
Issuer: Dole Food Company, Inc.
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
Gtd. Sr. Sec.
Term Loan B Due 2013 Ba3 Ba2 LGD2 20%
Gtd. Sr. Sec.
Letter of Credit
Due 2013 Ba3 Ba2 LGD2 20%
Gtd. Global Notes
Due 2010 B3 B3 LGD5 77%
Global Notes Due 2009 B3 B3 LGD5 77%
Gtd. Global Bonds
Due 2011 B3 B3 LGD5 77%
Debentures Due 2013 B3 B3 LGD5 77%
Issuer: Solvest Ltd.
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
Gtd. Sr. Sec.
Term Loan C Due 2013 Ba3 Ba2 LGD2 20%
Gtd. Sr. Sec.
Letter of Credit
Due 2013 Ba3 Ba2 LGD2 20%
PETROECUADOR: Two Firms Buy Bidding Rules for Esmeraldas Plant
--------------------------------------------------------------
A spokesperson from Petroecuador, the state-owned oil company of Ecuador,
told Business News Americas that two companies bought bidding rules for the
Esmeraldas refinery modernization plan.
According to BNamericas, Petroindustrial, the refining unit of Petroecuador,
disclosed the plan of restoring the plant. The refinery has been operating
at 86% capacity since 1997, while the fluid catalytic cracking unit that
produces high-octane gasoline has been working at 76% capacity.
The spokesperson told BNamericas that the project, which would require a
US$127 million investment, would involve the two-year refurbishment of the
plant to increase refining margins to US$3.8 per barrel from US$3.3 a
barrel.
BNamericas underscores that Feiseh -- the state investment fund for the
power and hydrocarbons sectors -- will finance the project.
Six other firms are eyeing the project, BNamericas notes, citing the
spokesperson. Petroecuador will accept bids for the project until Nov. 26.
The company, however, may extend the deadline by two weeks, depending on the
requests from interested entities.
Petroecuador will award the project on Dec. 26. It will sign the contract
on the same date, BNamericas states.
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
that Petroecuador has been inefficient and non-transparent in
its accounts.
===============
H O N D U R A S
===============
* HONDURAS: Government Demands Lower Sugar Prices
-------------------------------------------------
The government authorities of Honduras gave sugar sector representatives an
ultimatum to immediately reduce sugar prices, Prensa Latina reports.
Reports say that the Ministry of Trade and Industry decided to import sugar
in case refineries won't agree to a price cut.
According to Prensa Latina, the labor union had sought for a US$1.66 price
increase per ton sugar, causing discomfort among consumers.
Labor and machinery prices boosted costs, Carlos Melara -- the president of
the Producers Association -- told Prensa Latina.
* * *
Moody's Investor Service assigned these ratings on Honduras:
Rating Rating Date
------ -----------
Senior Unsecured B2 Sept. 29, 1998
Long Term IDR B2 Sept. 29, 1998
* HONDURAS: Comision Administradora Releases Procurement Guide
--------------------------------------------------------------
The Comision Administradora del Petroleo or CAP, the agency of the
Government of Honduras responsible for procurement of petroleum, released on
Oct. 11, 2006, the terms and conditions of the Special Procurement
Procedure -- SPP -- for the entire Honduran requirements of imported refined
petroleum products.
The original SPP conditions and any subsequent amendments are posted on the
CAP website, http://www.cap.gob.hn.
Proposals from interested parties must be received between 2:00 P.M. on Oct.
30, 2006, and at latest Nov. 1, 2006, at 2:00 P.M., Honduras time, if they
are to be considered.
For more information prior to submission of proposals, please contact:
Dr. Lucy Bu de Bueso
Executive Director of CAP
Tel: (504) + 237-7979 Ext. 806
Fax: (504) + 238-1085
E-mail: lbu@cap.gob.hn
Companies known to participate in regional product tenders, and those that
have expressed an interest in participating in this procedure, have been
sent the SPP conditions. All others are welcome to request a copy of the
terms and conditions.
Interested parties are invited to present offers for one or more products
delivered into Atlantic and/or Pacific Coast ports.
The Honduran government wishes to reiterate its guarantee that the Special
Purchasing Procedure is not being undertaken in order to negotiate a price
reduction from the present suppliers to Honduras. The government emphasizes
that it is seeking to obtain the best offers in a transparent form, for the
purpose of awarding the Supply Contracts to the legitimate winners according
to established Evaluation Criteria.
Suroil, Inc., of Coral Gables, Florida, who was contracted by the government
to prepare procurement documentation, assists with transparency efforts and
ensure maximum market participation, will continue to work with CAP in the
implementation phase of the awarded contracts.
For copies of documentation, please contact Suroil at opshond@suroil.com.
* * *
Moody's Investor Service assigned these ratings on Honduras:
Rating Rating Date
------ -----------
Senior Unsecured B2 Sept. 29, 1998
Long Term IDR B2 Sept. 29, 1998
=============
J A M A I C A
=============
* JAMAICA: Trade Deficit for First Half of 2006 Drops 2.3%
----------------------------------------------------------
Information from the Statistical Institute of Jamaica indicates that
Jamaica's trade deficit decreased 2.3% in the first half of 2006, compared
with the first half of 2005, Radio Jamaica reports.
Radio Jamaica relates that the Statistical Institute showed the gap between
imports and exports for the January to June 2006 period was US$1.4 billion.
The Statistical Institute said that imports increased 9% to US$2.4 billion
in the first half of 2006, compared with the first half of 2005. Meanwhile,
Exports increased 31% to US$985 million, Radio Jamaica states.
* * *
On May 26, 2006, Moody's Investors Service upgraded Jamaica's
rating under a revised foreign currency ceiling:
-- Long-term foreign currency rating: Ba3 from B1 with
stable outlook.
===========
M E X I C O
===========
DOMINO'S PIZZA: Sept. 10 Balance Sheet Upside Down by US$592MM
-------------------------------------------------------------- Domino's
Pizza, Inc., disclosed results for the third quarter ended Sept. 10, 2006.
Diluted EPS was US$0.39, including a US$0.04 per share benefit relating to a
gain on the sale of company-owned operations in France and the Netherlands,
up 30% from year ago levels. Although domestic same store sales were
weakened by lighter consumer traffic, international same store sales grew 3%
from the prior year period. This marked the company's 51st consecutive
quarter of international same store sales growth.
Third Quarter Highlights:
(dollars in millions, except per share data)
Third Quarter Third Quarter
of 2006 of 2005
Revenues US$326.7 US$337.6
Net income US$24.5 US$20.3
Weighted average
diluted shares 63,405,773 68,226,744
Diluted earnings per share US$0.39 US$0.30
Revenues were down 3.2% for the third quarter compared to the prior year
period, due primarily to lower domestic distribution revenues. Distribution
revenues decreased 3.6% because of lower food prices, primarily cheese, and
lower volumes due to a decrease in domestic franchise same store sales. The
average cheese block price per pound was US$1.19 in the third quarter of
2006, down 19.6% from US$1.48 in the third quarter of 2005. Revenues from
international operations decreased 8.4% due primarily to the sale of
company-owned operations in France and the Netherlands to an existing master
franchisee.
Net income was up 20.9% for the third quarter compared to the prior year
period, driven primarily by strong performance in the Company's
international business and gains recognized on the sale of certain
company-owned operations.
Diluted EPS was US$0.39 for the third quarter, up 30% from the prior year
period, driven by both an increase in net income and a reduction in diluted
shares outstanding. The reduction in diluted share count was due primarily
to the company's previously reported US$145.0 million share repurchase which
occurred in the first quarter of 2006.
David A. Brandon, Domino's Chairman and Chief Executive Officer, commented
on the company's third quarter performance, "This quarter is another example
of the resiliency of our business model and the way we perform during
sluggish sales cycles. Our domestic business operated in a significantly
weaker sales environment than expected. We experienced\ negative traffic
counts for most of the quarter and we did not achieve consistent positive
sales results across our domestic system of stores."
Mr. Brandon continued, "Our goal will always be to grow our sales regardless
of external factors, but we were not able to accomplish this during the
third quarter. However, we were able to maintain strong earnings growth
despite our weaker-than-expected same store sales. We continue to benefit
from the growth of our international business, and the cost-management
programs we have implemented throughout our business units."
Mr. Brandon concluded, "Overall, our company is strong and continues to
grow. Our consistent earnings growth and strong cash flows are the best
measures of the health of our business. Our global retail sales were up
during the quarter as compared to a very strong quarter a year ago. We
believe the current sluggish domestic sales environment will improve ... and
when it does, we are in a very strong position to take advantage of the
opportunities it will create for Domino's Pizza."
Company Sells Operations in France and the Netherlands
During the second quarter of 2006, the company signed a stock purchase
agreement to sell its company-owned operations in France and the Netherlands
to its master franchisee for Australia and New Zealand. The sale closed in
the third quarter. During the third quarter, the company recognized a gain
of approximately US$2.8 million (or approximately 4 cents per share) related
to the sale. The gain was included in general and administrative expenses.
During the second quarter of 2006, the company recorded a US$2.9 million tax
benefit as it was apparent that it would realize a benefit resulting from
tax losses to be realized upon the sale of these operations.
Company Sells 11 Domestic Company-owned Stores
During the third quarter of 2006, the company sold 11 domestic Company-
owned stores to an existing franchisee. The sale resulted in a pre-tax gain
of approximately US$0.7 million.
Liquidity
As of Sept. 10, 2006, the company had:
-- US$740.9 million in total debt,
-- US$11.0 million of cash and cash equivalents, and
-- borrowings of US$92.9 million available under its
US$125.0 million revolving credit facility (net of
letters of credit issued of US$32.1 million.)
The company has repaid US$95.2 million of debt year-to-date, including
US$50.1 million in the third quarter. The company also borrowed US$100.0
million in the first quarter which, along with cash from operations, was
used to repurchase and retire US$145.0 million of common stock from its
largest shareholder.
The company's average borrowing rate for the third quarter of 2006 was 6.6%.
The company is not required to make the next scheduled senior credit
facility principal payment of US$1.2 million until September 30, 2007 and is
not required to make principal payments on its senior subordinated notes
until 2011.
The company incurred US$14.8 million in capital expenditures during the
first three quarters of 2006 versus US$20.7 million during the first three
quarters of 2005. The decrease was due primarily to increased spending in
2005 related to the renovation of the company's headquarters.
About Domino's
Founded in 1960, Domino's Pizza Inc. -- http://www.dominos.com/
-- through its primarily franchised system, operates a network
of 8,190 franchised and Company-owned stores in the United
States and more than 50 countries. The company has more than
500 stores in Mexico. The Domino's Pizza(R) brand, named a
Megabrand by Advertising Age magazine, had global retail sales
of nearly US$5.0 billion in 2005, comprised of US$3.3 billion
domestically and US$1.7 billion internationally. Domino's Pizza
was named "Chain of the Year" by Pizza Today magazine, the
leading publication of the pizza industry and is the "Official
Pizza of NASCAR(R)." Domino's is listed on the NYSE under the
symbol "DPZ."
As of Sept. 10, 2006, Domino's Pizza's balance sheet showed a US$592,
435,000 deficit compared with US$609,112,000 at
June 18, 2006.
EL POLLO: Terminates Tender Offer on 11-3/4% & 14-1/2% Sr. Notes
----------------------------------------------------------------
El Pollo Loco, Inc., and EPL Intermediate, Inc., have terminated the
previously announced tender offer and consent solicitation for El Pollo's
11-3/4% Senior Notes Due 2013 and by Intermediate for its 14-1/2% Senior
Discount Notes Due 2014. All Notes tendered during the Offer will be
returned to the original noteholder and no payments will be made.
The Offer was conditioned on the completion of the initial public offering
of El Pollo Loco Holdings, Inc., the parent of El Pollo Loco and
Intermediate. Holdings withdrew the Registration Statement for the initial
public offering, as current market conditions make it inadvisable to proceed
with the initial public offering at this time.
About El Pollo Loco
El Pollo Loco -- http://www.elpolloloco.com/-- pronounced "L
Po-yo Lo-co" and Spanish for "The Crazy Chicken," is the United
States' leading quick-service restaurant chain specializing in
flame-grilled chicken and Mexican-inspired entrees. Founded in
Guasave, Mexico, in 1975, El Pollo Loco's long-term success
stems from the unique preparation of its award-winning "pollo"
-- fresh chicken marinated in a special recipe of herbs, spices
and citrus juices passed down from the founding family.
* * *
As reported in the Troubled Company Reporter on May 23, 2006,
Standard & Poor's Ratings Services expects to raise its
corporate credit rating on El Pollo Loco Inc. to 'B+' from 'B'
upon the successful completion of the company's planned IPO.
S&P said the outlook is stable. Standard & Poor's also assigned
a 'B+' rating, same as the expected corporate credit rating, to
the company's planned US$200 million senior secured bank loan.
A recovery rating of '2' is also assigned to the loan,
indicating the expectation for substantial recovery of principal
in the event of a payment default.
Moody's Investors Service upgraded El Pollo Loco, Inc.'s
corporate family rating to B1 from B3 and assigned B1 ratings to
the company's proposed US$200 million senior secured credit
facility following the company's proposed initial public
offering of shares of its common stock and planned refinancing
of its existing debt. At the same time, the SGL-2 Speculative
Grade Liquidity rating was affirmed. Moody's said the outlook
remains stable.
FORD MOTOR: Latch, Drivetrain Problems Spur Recall of 145K Cars
---------------------------------------------------------------
Ford Motor Company is recalling more than 145,000 vehicles in the United
States for a range of problems including defective latches to faulty
drivetrains, Reuters reports, citing the National Highway Traffic Safety
Administration.
The recall involves 139,537 2005 model-year Five Hundred and
Mercury Montego sedans and 2005-2006 model-year Freestar minivans; and 6,164
Escape hybrid SUVs from 2006 model year, Reuters said, based on NHTSA's
records.
NHTSA's detailed report on the recall is available at the agency's Web site
at http://www.nhtsa.dot.gov/
Possible Renault-Nissan Tie Up
Reuters earlier reported that Nissan Motor Co. Ltd and Renault
could set their sights on the company as they continue to look for a North
American partner.
Nissan spokeswoman Mia Nielsen told Reuters that the Renault-
Nissan alliance could be extended to work with additional partners and that
a North American partner could make sense.
Renault-Nissan had sought to form a partnership with General
Motors Corp. in order to strengthen its position in North America. GM
however, ended the talks after concluding that Renault-Nissan's alliance
framework would substantially disadvantage GM shareholders.
Headquartered in Dearborn, Michigan, Ford Motor Company --
http://www.ford.com/-- manufactures and distributes automobiles
in 200 markets across six continents including Brazil and Mexico. With more
than 324,000 employees worldwide, the company's core and affiliated
automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln,
Mazda, Mercury and Volvo. Its automotive-related services include Ford
Motor Credit Company and The Hertz Corp.
* * *
As reported in the Troubled Company Reporter on Aug. 22, 2006,
Dominion Bond Rating Service placed long-term debt rating of Ford Motor
Company Under Review with Negative Implications following announcement that
Ford will sharply reduce its North American vehicle production in 2006.
DBRS lowered on
July 21, 2006, Ford Motor Company's long-term debt rating to B from BB, and
lowered its short-term debt rating to R-3 middle from R-3 high. DBRS also
lowered Ford Motor Credit Company's long-term debt rating to BB(low) from
BB, and confirmed Ford Credit's short-term debt rating at R-3(high).
Fitch Ratings also downgraded the Issuer Default Rating of Ford
Motor Company and Ford Motor Credit Company to 'B' from 'B+'.
Fitch also lowered the Ford's senior unsecured rating to 'B+/RR3' from
'BB-/RR3' and Ford Credit's senior unsecured rating to 'BB-/RR2' from
'BB/RR2'. Fitch said the rating outlook remains negative.
Standard & Poor's Ratings Services also placed its 'B+' long-term and 'B-2'
short-term ratings on Ford Motor Co., Ford Motor Credit Co., and related
entities on CreditWatch with negative
implications.
As reported in the Troubled Company Reporter on July 24, 2006,
Moody's Investors Service lowered the Corporate Family and senior unsecured
ratings of Ford Motor Company to B2 from Ba3 and the senior unsecured rating
of Ford Motor Credit Company to Ba3 from Ba2. The Speculative Grade
Liquidity rating of Ford has been confirmed at SGL-1, indicating very good
liquidity over the coming 12-month period. Moody's said the outlook for the
ratings is negative.
FORD MOTOR: Steve Champ Leaves Company by Oct. 31
-------------------------------------------------
Ford Motor Co. disclosed that Chief of Staff Steve Hamp, who played an
instrumental leadership role during the last year, will leave the company on
Oct. 31. The company previously confirmed Mr. Hamp's plans to leave Ford.
With Hamp's departure, the position of Chief of Staff is being eliminated.
Mr. Hamp, has been a key advisor for the leadership team and specifically
Executive Chairman Bill Ford, focusing on the coordination and management of
the Office of Chairman and CEO, alignment of the senior management team, and
coordination of the corporate strategic dialogue and integration of strategy
into company operations.
Mr. Hamp joined Ford after a 27-year career at The Henry Ford, culminating
with ten years as its president. The Henry Ford is a national multi-venue
historical institution located in Dearborn, Mich.
"I truly appreciate the tremendous service Steve provided to Ford Motor
Company and to me personally during his time here," Mr. Ford said. "Steve
left a highly acclaimed career at The Henry Ford to assist me in a crucial
transition period. His unique organizational, leadership and communications
skills were an enormous help to me as I determined the next steps for our
company. Everyone who dealt with Steve benefited from his wisdom, character
and integrity."
Reflecting on his departure plans, Mr. Hamp said, "It has been both a
privilege and a rewarding experience to have played the role that I have
during such a critical time. We have accomplished what we set out to do
when I arrived and I leave the company confident in the talented leadership
team and optimistic for the future."
About Ford
Headquartered in Dearborn, Michigan, Ford Motor Company --
http://www.ford.com/-- manufactures and distributes automobiles
in 200 markets across six continents including Brazil and Mexico in Latin
America. With more than 324,000 employees worldwide, the company's core and
affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover,
Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include
Ford Motor Credit Company and The Hertz Corp.
* * *
As reported in the Troubled Company Reporter on Aug. 22, 2006,
Dominion Bond Rating Service placed long-term debt rating of Ford Motor
Company Under Review with Negative Implications following announcement that
Ford will sharply reduce its North American vehicle production in 2006.
DBRS lowered on July 21, 2006, Ford Motor Company's long-term debt rating to
B from BB, and lowered its short-term debt rating to R-3 middle from R-3
high. DBRS also lowered Ford Motor Credit Company's long-term debt rating
to BB(low) from BB, and confirmed Ford Credit's short-term debt rating at
R-3(high).
Fitch Ratings also downgraded the Issuer Default Rating of Ford
Motor Company and Ford Motor Credit Company to 'B' from 'B+'.
Fitch also lowered the Ford's senior unsecured rating to 'B+/RR3' from
'BB-/RR3' and Ford Credit's senior unsecured rating to 'BB-/RR2' from
'BB/RR2'. The Rating Outlook remains Negative.
Standard & Poor's Ratings Services also placed its 'B+' long-term and 'B-2'
short-term ratings on Ford Motor Co., Ford Motor Credit Co., and related
entities on CreditWatch with negative implications.
As reported in the Troubled Company Reporter on July 24, 2006,
Moody's Investors Service lowered the Corporate Family and senior unsecured
ratings of Ford Motor Company to B2 from Ba3 and the senior unsecured rating
of Ford Motor Credit Company to Ba3 from Ba2. The Speculative Grade
Liquidity rating of Ford has been confirmed at SGL-1, indicating very good
liquidity over the coming 12-month period. Moody's said the outlook for the
ratings is negative.
GLOBAL POWER: Can Wind Down Heat Recovery Business Segment
----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized Global
Power Equipment Group Inc., and its debtor-affiliates to wind down the
operations of the heat recovery steam generator business segment.
The Debtors tell the Court that they had determined to wind down
this business segment prior to filing for bankruptcy, but in the
interest of caution, they asked for approval from the Court.
The Debtors say that they lack sufficient funds to operate this
business segment, which will likely sustain substantial cash
losses in the future. The Debtors contend that the cessation and orderly
wind down of this business is in their best interest as well as that of
their estates, creditors and parties-in-interest.
The Court also authorizes the Debtors to reject certain executory contracts
and unexpired leases in connection with the wind down. The Court has set
4:00 p.m. ET, on Oct. 23, 2006, as the deadline for filing objections on the
proposed rejections. The hearing on the proposed rejection and objections
is scheduled at 10:00 a.m. ET, on Oct. 26.
Headquartered in Tulsa, Oklahoma, Global Power Equipment Group
Inc., aka GEEG, Inc. -- http://www.globalpower.com/-- provides
power generation equipment and maintenance services for its
customers in the domestic and international energy, power and
infrastructure and service industries. The Company designs,
engineers and manufactures a range of heat recovery and auxiliary equipment
primarily used to enhance the efficiency and facilitate the operation of gas
turbine power plants as well as for other industrial and power-related
applications. The Company has facilities in Plymouth, Minnesota; Tulsa,
Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico;
Shanghai, China; Nanjing, China; and Heerleen, The Netherlands.
The Company and 10 of its affiliates filed for chapter 11
protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045).
Attorneys at White & Case LLP and The Bayard Firm, P.A., represent the
Debtors. As of Sept. 30, 2005, the Debtors reported total assets of
US$381,131,000 and total debts of US$123,221,000. The Debtors' exclusive
period to filed a chapter 11 plan expires on Jan. 26, 2007.
HIPOTECARIA SU: US$150 Million High-Yield Bonds Over-subscribe
--------------------------------------------------------------
The US$150 million of high-yield securities Hipotecaria Su Casita issued on
markets in the United States and Luxembourg over-subscribed three times,
Latinlawyer Online reports.
According to Latinlawyer, the bonds mature in 10 years, with an 8.5% coupon.
They are callable after five years.
Latinlawyer relates that Credit Suisse was the underwriter for the issuance.
Michael Fitzgerald of Milbank, Twee, Hadley & McCloy LLP, who advised
Hipotecaria Su on the transaction, told Latinlawyer, "The housing sector is
the place to be in Mexico. Su Casita's debt placement and strong
international interest stand in sharp contrast to the decline of US housing
company stocks."
* * *
As reported in the Troubled Company Reporter-Latin America on Sept. 22,
2006, Standard & Poor's Ratings Services assigned its 'BB-' long-term
counterparty credit rating to Hipotecaria Su Casita S.A. de C.V. Sociedad de
Objeto Limitado. At the same time, Standard & Poor's assigned its 'BB-'
debt rating to HSC's US$150 million senior notes. The outlook is stable.
MERIDIAN AUTOMOTIVE: Wants Plan-Filing Deadline Until Dec. 31
-------------------------------------------------------------
Meridian Automotive Systems, Inc., and its debtor-affiliates
further ask the U.S. Bankruptcy Court for the District of Delaware to extend
until Dec. 31, 2006, their exclusive period to file a plan of
reorganization.
The Debtors also want to extend their exclusive time to solicit
acceptances of that plan until March 1, 2007.
The Debtors have worked arduously to engage their principal
creditor constituencies in negotiations that have resulted in the Fourth
Amended Joint Plan of Reorganization, according to Edward J. Kosmowski,
Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware. The
Plan process is well under way with the support of major constituencies.
The brief extension of the Exclusive Periods is intended to
enable the Debtors to continue the Plan process in an orderly,
efficient and cost-effective manner, Mr. Kosmowski explains. To
deny further extension of the Exclusive Periods at this stage
would jeopardize the significant progress the Debtors have made
toward Plan confirmation.
Moreover, the extension of the Exclusive Periods will enable the
Debtors to solicit acceptances of the Fourth Amended Plan, and to pursue its
confirmation without the distraction that would be
attendant to the filing of a competing plan, Mr. Kosmowski
states.
The Court will convene a hearing on October 25, 2006, to consider the
Debtors' request. By application of Local Bankruptcy Rule 9006-2 for the
District of Delaware, the Debtors' Exclusive Filing Period is automatically
extended until the conclusion of that hearing.
Headquartered in Dearborn, Mich., Meridian Automotive Systems,
Inc. -- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and other interior
systems to automobile and truck manufacturers. Meridian operates 22 plants
in the United States, Canada and Mexico, supplying Original Equipment
Manufacturers and major Tier One parts suppliers. The Company and its
debtor-affiliates filed for chapter 11 protection on April 26, 2005 (Bankr.
D. Del. Case Nos. 05-11168 through 05-11176). James F. Conlan, Esq., Larry
J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan Guzina, Esq., at Sidley
Austin Brown & Wood LLP, and Robert S. Brady, Esq., Edmon L. Morton, Esq.,
Edward J. Kosmowski, Esq., and Ian S. Fredericks, Esq., at Young Conaway
Stargatt & Taylor, LLP, represent the Debtors in their restructuring
efforts. Eric E. Sagerman, Esq., at Winston & Strawn LLP represents the
Official Committee of Unsecured Creditors. The Committee also hired Ian
Connor Bifferato, Esq., at Bifferato, Gentilotti, Biden & Balick, P.A., to
prosecute an adversary proceeding against Meridian's First Lien Lenders and
Second Lien Lenders to invalidate their liens. When the Debtors filed for
protection from their creditors, they listed US$530 million in total assets
and approximately US$815 million in total liabilities. (Meridian Bankruptcy
News, Issue No. 40; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
MERIDIAN AUTOMOTIVE: Wants Until March 1 to Remove Civil Actions
----------------------------------------------------------------
Meridian Automotive Systems, Inc., and its debtor-affiliates ask
the U.S. Bankruptcy Court for the District of Delaware to further extend the
period within which they may file notices of removal of prepetition civil
actions to and including
March 1, 2007.
The Debtors assert that an extension will give them more time to
make fully informed decisions concerning removal of each pending
prepetition civil action and will ensure that they do not forfeit their
rights under Section 1452 of the Judiciary and Judicial Procedures Code.
The rights of the Debtors' adversaries will not be prejudiced by
an extension because any party to a prepetition action that is
removed may seek to have it remanded to the state court pursuant
to Section 1452(b), Edward J. Kosmowski, Esq., at Young Conaway
Stargatt & Taylor, LLP, in Wilmington, Delaware, relates.
The Debtors also ask the Court to approve their request without
prejudice to any position they may take regarding whether Section 362 of the
Bankruptcy Code applies to stay any civil action pending against them.
Headquartered in Dearborn, Mich., Meridian Automotive Systems,
Inc. -- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and other interior
systems to automobile and truck manufacturers. Meridian operates 22 plants
in the United States, Canada and Mexico, supplying Original Equipment
Manufacturers and major Tier One parts suppliers. The Company and its
debtor-affiliates filed for chapter 11 protection on April 26, 2005 (Bankr.
D. Del. Case Nos. 05-11168 through 05-11176). James F. Conlan, Esq., Larry
J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan Guzina, Esq., at Sidley
Austin Brown & Wood LLP, and Robert S. Brady, Esq., Edmon L. Morton, Esq.,
Edward J. Kosmowski, Esq., and Ian S. Fredericks, Esq., at Young Conaway
Stargatt & Taylor, LLP, represent the Debtors in their restructuring
efforts. Eric E. Sagerman, Esq., at Winston & Strawn LLP represents the
Official Committee of Unsecured Creditors. The Committee also hired Ian
Connor Bifferato, Esq., at Bifferato, Gentilotti, Biden & Balick, P.A., to
prosecute an adversary proceeding against Meridian's First Lien Lenders and
Second Lien Lenders to invalidate their liens. When the Debtors filed for
protection from their creditors, they listed US$530 million in total assets
and approximately US$815 million in total liabilities. (Meridian Bankruptcy
News, Issue No. 40; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
PILGRIM'S PRIDE: Gold Kist Snubs Purchase Offer
-----------------------------------------------
Gold Kist Inc.'s Board of Directors has rejected as inadequate
Pilgrim's Pride Corp.'s unsolicited tender offer to acquire all outstanding
shares of common stock of Gold Kist at a price of US$20.00 per share.
Gold Kist's Board consulted with its financial and legal advisors and its
Special Committee of independent directors on the merits of the offer.
After careful consideration, the Board of Directors reached its decision
that the tender offer is not in the best interests of stockholders.
"Our Board unanimously determined that the offer is inadequate and does not
fully reflect the value of Gold Kist, including the
Company's strong market position and future growth prospects,"
said John Bekkers, Gold Kist President and CEO. "We have
successfully positioned ourselves to take advantage of attractive growth
opportunities in key markets and are confident in our prospects."
In arriving at its decision, Gold Kist's Board and the Special
Committee considered numerous factors, including:
-- Pilgrim's offer is inadequate, does not fully reflect
the stand alone value of Gold Kist, including its strong
market position and its future growth prospects, and was
made at a time when Gold Kist's stock price was
temporarily depressed following a recent cyclical
downturn in the industry.
-- the offer values Gold Kist at a price below recent
trading levels.
-- the Board of Directors believes the Company's strategic
plan will yield greater stockholder value than the offer
and that the current management and Board structure of
Gold Kist are built upon sound corporate governance
principles. The Board also believes that current
management and Board of Directors are uniquely situated
to execute the Company's long-term plan and deliver
maximum value to Gold Kist stockholders.
-- The Board is committed to continuing to explore
alternatives to maximize stockholder value.
-- The offer is subject to numerous conditions, which
result in significant uncertainty that the offer will be
consummated.
Gold Kist has filed a lawsuit in federal court in the Northern
District of Georgia seeking to enjoin Pilgrim's from proceeding
with its solicitation of Gold Kist stockholders to add its own
officers to the Board of Directors of Gold Kist. The lawsuit
alleges that Pilgrim's attempt to add nine of its own officers to the Board
of Directors of Gold Kist would, if successful, violate Section 8 of the
Clayton Act, which prohibits officers and directors of companies of a
certain size from sitting on the board of directors of a competitor. The
lawsuit seeks to enjoin
Pilgrim's efforts to elect its nominees in violation of the
Clayton Act. The lawsuit also alleges violations of the U.S.
Securities and Exchange Commission's proxy and tender offer rules by
Pilgrim's for failing to disclose to stockholders that the election of the
Pilgrim's nominees would violate the Clayton Act.
Pilgrim's Pride Responds to Tender Offer Rejection
Pilgrim's Pride issued a statement in response to the Gold Kist Inc. board's
recommendation regarding the company's offer to purchase all of the
outstanding shares of Gold Kist common stock for US$20.00 per share in cash:
"We once again are disappointed in the Gold Kist board's recommendation
which has failed to recognize both the value our offer affords Gold Kist's
stockholders and the opportunity presented to employees and contract
growers. For Gold Kist stockholders in particular, the transaction's
benefits are reflected in the price we have offered, which represents a
premium of 55% over Gold Kist's closing stock price on Aug. 18, 2006, the
last day of trading before Pilgrim's Pride notified Gold Kist's board of
directors in a public letter that it was offering US$20 per share in cash
for the company. Furthermore, we intend to vigorously defend the lawsuit
filed in Federal Court in the Northern District of Georgia."
Pilgrim's Pride has obtained financing for the tender offer through a
combination of an amendment to its existing credit facility and a commitment
letter for an additional credit facility from Lehman Brothers Inc.
Pilgrim's Pride's tender offer is scheduled to expire at midnight, New York
City Time, on Oct. 27, 2006, unless extended.
Baker & McKenzie LLP and Morris, Nichols, Arsht & Tunnell, LLP are acting as
legal counsel and Credit Suisse, Legacy Partners Group LLC and Lehman
Brothers Inc. are acting as financial advisors to Pilgrim's Pride. Innisfree
M&A Incorporated is acting as information agent for Pilgrim's Pride's offer.
About Gold Kist
Based in Atlanta, Georgia, Gold Kist Incorporated (NASDAQ: GKIS)
-- http://www.goldkist.com/-- operates a fully integrated chicken
production, processing and marketing business. Gold Kist's production
operations include nine divisions located in Alabama, Florida, Georgia,
North Carolina and South Carolina.
About Pilgrim's Pride
Headquartered in Pittsburg, Texas, Pilgrim's Pride Corp.
(NYSE: PPC) -- http://www.pilgrimspride.com/-- produces,
distributes and markets poultry processed products through
retailers, foodservice distributors and restaurants in the United States,
Mexico and in Puerto Rico. Pilgrim's Pride employs approximately 40,000
people and has major operations in Texas, Alabama, Arkansas, Georgia,
Kentucky, Louisiana, North Carolina, Pennsylvania, Tennessee, Virginia, West
Virginia, Mexico and Puerto Rico, with other facilities in Arizona, Florida,
Iowa, Mississippi and Utah.
* * *
As reported in the Troubled Company Reporter on Oct. 3, 2006,
Moody's Investors Service placed the Ba3 senior unsecured, the B1 senior
subordinated, and the Ba2 corporate family ratings of
Pilgrim's Pride Corporation under review for possible downgrade.
The review followed Pilgrim's announcement that it intends to
commence a cash tender offer to purchase all of the outstanding
shares of Gold Kist, Inc. for approximately US$1 billion, as well as offer
to acquire Gold Kist's US$130 million in 10.25% senior notes.
As reported in the Troubled Company Reporter on Aug. 24, 2006,
Standard & Poor's Ratings Services placed its 'BB' corporate
credit rating and other ratings on Pilgrim's Pride on CreditWatch with
negative implications following the company's unsolicited bid for Gold Kist
Inc.
PILGRIM'S PRIDE: Gets 73.2% Tender for Gold Kist's 10.25% Notes
---------------------------------------------------------------
Pilgrim's Pride Corp. disclosed that Mellon Investor Services LLC, the
depository for the offer, informed the company on Oct. 12 that about US$95.2
million, or approximately 73.2%, of the outstanding Notes have been validly
tendered and consents were given and not withdrawn.
Pilgrim's Pride Corp. disclosed that as of 9:00 a.m., New York City time, on
Oct. 12, 2006, Mellon Investor Services LLC, the Depository for the Offer,
has informed Pilgrim's Pride that US$95.2 million, or approximately 73.2%,
of the outstanding Notes have been validly tendered and consents given and
not withdrawn.
Pilgrim's Pride also announced the consideration to be paid in its
previously announced cash tender offer for, and consent solicitations with
respect to, any and all of Gold Kist Inc.'s outstanding 10.25% Senior Notes
due March 15, 2014 (CUSIP No. 380616AB8, ISIN US380616AB82). Based on an
assumed payment date of Oct. 30, 2006, holders who have validly tendered
with consents and not withdrawn their Notes at or prior to 5:00 p.m., New
York City time, on Oct. 13, 2006, are eligible to receive US$1,154.77 for
each US$1,000 principal amount of the Notes. The Total Consideration
includes a consent payment equal to US$30 in cash per US$1,000 principal
amount of the Notes. The consent payment is payable only to holders of
Notes validly tendered with consents and not validly withdrawn on or prior
to the Consent Date.
Based on the same assumed payment date, holders who tender their Notes after
5:00 p.m., New York City time, on the Consent Date will not be eligible to
receive the Consent Payment. Holders who have validly tendered with
consents their Notes after 5:00 p.m., New York City time, on the Consent
Date but at or prior to midnight, New York City time, on Oct. 27, 2006,
unless the tender offer is earlier terminated or extended, are eligible to
receive US$1,124.77 for each US$1,000 principal amount of the Notes. In
addition to the Total Consideration or the Tender Offer Consideration
payable in respect of Notes purchased in the tender offer, Pilgrim's Pride
will pay accrued and unpaid interest from the last interest payment date to,
but not including, the Payment Date.
The Total Consideration and the Tender Offer Consideration were determined
as of 10:00 a.m., New York City time, on
Oct.12, 2006, based on the Reference Yield of 4.779% for the Notes, and a
Fixed Spread of 50 basis points for the Notes, using an assumed Oct. 30,
2006, Payment Date for calculation purposes. If the Expiration Date is
extended for more than 10 business days following the scheduled Expiration
Date, a new price determination date will be established (to be 10:00 a.m.
New York City time on the eleventh business day immediately preceding the
new Expiration Date) and the Total Consideration for each Note tendered
pursuant to the Offer at or prior to the new Expiration Date will be
redetermined as of such new price determination date. Information regarding
the pricing, tender and delivery procedures and conditions to the tender
offer and consent solicitation relating to the Notes are contained in the
Offer to Purchase.
Pilgrim's Pride will accept validly tendered Notes for purchase promptly
after the Expiration Date, provided that the conditions to the tender offer
have been satisfied or waived, including the conditions with respect to
Pilgrim's Pride 's previously announced tender offer for all of the
outstanding common shares of Gold Kist. The "Payment Date" is expected to
be promptly after the Expiration Date and immediately prior to the closing
of the transactions contemplated by the tender offer for Gold Kist's common
shares.
Pilgrim's Pride has engaged Lehman Brothers Inc. to serve as the Dealer
Manager for the tender offer and the Solicitation Agent for the consent
solicitation. Mellon Investor Services LLC has been retained to serve as
the Depository and Innisfree M&A Incorporated has been retained to serve as
the Information Agent for the tender offer and consent solicitation.
Requests for documents may be directed to:
Innisfree M&A Incorporated
501 Madison Avenue, 20th Floor
New York, NY 10022
Tel: (877) 687-1874 (toll free in the U.S. and Canada)
(212) 750-5833 (call collect).
Questions regarding the tender offer and consent solicitation may be
directed to:
Lehman Brothers Inc.
Tel: (800) 438-3242 (toll free in the U.S.)
(212) 528-7581 (call collect).
About Gold Kist
Based in Atlanta, Georgia, Gold Kist Incorporated (NASDAQ: GKIS)
-- http://www.goldkist.com/-- operates a fully integrated
chicken production, processing and marketing business. Gold
Kist's production operations include nine divisions located in
Alabama, Florida, Georgia, North Carolina and South Carolina.
About Pilgrim's Pride
Headquartered in Pittsburg, Texas, Pilgrim's Pride Corp.
(NYSE: PPC) -- http://www.pilgrimspride.com/-- produces,
distributes and markets poultry processed products through
retailers, foodservice distributors and restaurants in the
United States, Mexico and in Puerto Rico. Pilgrim's Pride
employs approximately 40,000 people and has major operations in
Texas, Alabama, Arkansas, Georgia, Kentucky, Louisiana, North
Carolina, Pennsylvania, Tennessee, Virginia, West Virginia,
Mexico and Puerto Rico, with other facilities in Arizona,
Florida, Iowa, Mississippi and Utah.
PILGRIM'S PRIDE: Gold Kist Is Neutral on Sr. Note Tender Offer
--------------------------------------------------------------
Gold Kist Inc.'s board of directors unanimously expressed no opinion and
remained neutral toward the unsolicited offer by Pilgrim's Pride Corp. on
Sept. 29, 2006, to purchase all of Gold Kist's outstanding 10.25% Senior
Notes due March 15, 2014 and the related consent solicitation.
The Board arrived at this position after considering the facts and
circumstances surrounding Pilgrim's unsolicited note tender offer. The
Board believes that noteholders should make their own decision as to whether
to tender. The Board, however, strongly urges Gold Kist's noteholders to
carefully consider all aspects of Pilgrim's tender offer for the notes and
related consent solicitation before deciding for themselves whether to
tender. Among the factors which noteholders should be aware of in making
their determination are:
-- Pilgrim's unsolicited note tender offer is subject to a
number of conditions, including, among other things, the
satisfaction or waiver of the conditions to Pilgrim's
Sept. 29, 2006, unsolicited tender offer to purchase Gold
Kist's common stock, and the requirement that there have
been validly tendered and not withdrawn a majority of the
then-outstanding principal amount of notes and consents;
-- Pilgrim's unsolicited common stock tender offer is itself
subject to numerous conditions that reduce the likelihood
of the transaction being completed. Because Pilgrim's note
tender offer is conditioned upon the satisfaction or
waiver of the conditions to Pilgrim's common stock tender
offer, the note tender offer is equally as unlikely to be
completed, unless these conditions are waived for the note
tender offer; and
-- The Board has previously recommended that Gold Kist's
stockholders reject Pilgrim's unsolicited common stock
tender offer, in part due to the numerous conditions,
which reduce the likelihood that the transaction will be
completed. The factors considered by the Board and the
Special Committee in arriving at this conclusion are
included in a Solicitation/Recommendation Statement on
Schedule 14D-9 that was filed on Oct. 12 with the
Securities and Exchange Commission.
Merrill Lynch & Co. and Gleacher Partners LLC are acting as financial
advisors to Gold Kist and Alston & Bird LLP and Richards, Layton & Finger
are serving as outside legal counsel.
About Gold Kist
Based in Atlanta, Georgia, Gold Kist Incorporated (NASDAQ: GKIS)
-- http://www.goldkist.com/-- operates a fully integrated
chicken production, processing and marketing business. Gold
Kist's production operations include nine divisions located in
Alabama, Florida, Georgia, North Carolina and South Carolina.
About Pilgrim's Pride
Headquartered in Pittsburg, Texas, Pilgrim's Pride Corp.
(NYSE: PPC) -- http://www.pilgrimspride.com/-- produces,
distributes and markets poultry processed products through
retailers, foodservice distributors and restaurants in the
United States, Mexico and in Puerto Rico. Pilgrim's Pride
employs approximately 40,000 people and has major operations in
Texas, Alabama, Arkansas, Georgia, Kentucky, Louisiana, North
Carolina, Pennsylvania, Tennessee, Virginia, West Virginia,
Mexico and Puerto Rico, with other facilities in Arizona,
Florida, Iowa, Mississippi and Utah.
=================
N I C A R A G U A
=================
* NICARAGUA: Enel Will List Firms for Power Supply Accord
---------------------------------------------------------
An official of the projects execution unit of Enel, the state-owned power
firm of Nicaragua, told Business News Americas that the company will
shortlist qualified firms for the power supply auction.
According to BNamericas, the official said that Enel is seeking for an
entity that will supply up to 100 megawatts of power.
The company will accept expressions of interest through Oct. 18, BNamericas
says, citing the official.
The official told BNamericas that the contract will be effective for five
years, with the possibility of an extension for the same period. The winner
must start power supply within 120 days.
BNamericas relates that Enel will buy the power through Gecsa, its
generation unit.
The official told BNamericas that the source could be:
-- diesel power supply barge at Corinto port on the
Pacific,
-- diesel power supply barge at Bluefields on the
Atlantic,
-- modular power supply plants at the Los Brasiles
substation, and
-- modular power supply plants at Las Brisas in the
Managua department.
BNamericas underscores that Enel also seeking for a firm that would supply
20 megawatts of power from diesel or bunker sources for one year under a
lease accord to satisfy peak demand. The firm must start supplying the
power within 60 days.
The contracts are designed to alleviate the energy crisis in Nicaragua,
BNamericas states.
* * *
Moody's Investor Service assigned these ratings to Nicaragua:
Rating Rating Date
------ -----------
Long Term Caa1 June 30, 2003
Senior Unsecured
Debt B3 June 30, 2003
* NICARAGUA: Cabei Approves Hydro Project Funding
-------------------------------------------------
A project official from Enel, the states power firm of Nicaragua, told
Business News Americas that the Central American Bank for Economic
Integration aka Cabei has ratified the financing of the construction of the
US$40-million, 17-megawatt Larreynaga hydro project in the country.
BNamericas relates that the Larreynaga project would be situated in Jinotega
on the Viejo river downstream from Enel's 50-megawatt CentroAmerica plant.
Construction is expected to last a over two years.
However, the official told BNamericas that the country's political climate
towar the presidential election on Nov. 5 has cast a doubt whether the
current government will sign the loan accord.
According to BNamericas, the official said that a call for bids for the
project's development is causing the delay on the loan signing.
The official said that advancement of the 21-megawatt La Serena-Los Calpulis
hydro project, which would be downstream from Larreynaga, has also been
delayed due to electoral climate.
Due to the coming election, Spain has not started channeling funds through
Cabei to finance feasibility studies, BNamericas states.
The idea is to launch a tender for the a tender for the studies in December,
BNamericas says, citing the official.
Enel is also planning for a 10-12-megawatt El Barro hydro project, which
would follow Larreynaga and La Serena-Los Calpulis, BNamericas reports.
* * *
Moody's Investor Service assigned these ratings to Nicaragua:
Rating Rating Date
------ -----------
Long Term Caa1 June 30, 2003
Senior Unsecured
Debt B3 June 30, 2003
* NICARAGUA: Finds Buyer for Venezuelan Diesel
----------------------------------------------
Dionisio Marenco -- the mayor of Managua, Nicaragua -- disclosed that a
Nicaraguan joint venture firm was able to sell about 304,000 liters of
diesel to another mayoral district, after two unsuccessful attempts, Latin
Petroleum reports.
As reported in the Troubled Company Reporter-Latin America on Oct. 13, 2006,
the Nicaraguan Association of Municipalities, which was headed by Mayor
Marenco, was trying to sell 84,000 gallons of diesel that Venezuela sent to
show its support to leftist opposition leader, Daniel Ortega. Both state
and private energy companies and local transportation firms made no moves to
purchase the product that arrived in the country on Saturday. Mayor Marenco
said, "If we do not sell it, then we will find a way to sell it in Panama."
Owners of buses had said that the quantities were insufficient for their
vehicles, Latin Petroleum states.
* * *
Moody's Investor Service assigned these ratings to Nicaragua:
Rating Rating Date
------ -----------
Long Term Caa1 June 30, 2003
Senior Unsecured
Debt B3 June 30, 2003
===========
P A N A M A
===========
* PANAMA: Grants US$30MM Loan for Rural Electrification Program
---------------------------------------------------------------
The Inter-American Development approved a US$30 million loan to Panama to
finance a rural electrification program that will promote public and private
investment to provide service for 30,000 rural households, increasing rural
electricity coverage by 10%.
In line with the new IDB initiative "Building Opportunity for the Majority,"
the program includes government incentives for the private sector to expand
and provide electric power service in rural areas, especially to the poorest
communities.
The program includes a system of subsidies for new investments that will
motivate private enterprises to invest in rural electrification, through
either grid extension or renewable energy projects in isolated areas. Among
the eligible renewable energy alternatives are small hydroelectric projects,
wind power plants and solar photovoltaics.
"This new approach, allowed under Panama's current regulatory framework,
will streamline and improve the efficiency of the implementation of rural
electrification projects," said Arnaldo Vieira de Carvalho, leader of the
IDB team that prepared the loan. "The final designs and construction of the
projects will be the responsibility of the distributors or renewable energy
system operators, which will also be responsible for maintaining the
facilities."
Program resources will be also used for institutional strengthening and
capacity-building in the formulation, execution, oversight and evaluation of
rural electrification projects for the main stakeholders in both the public
sector and civil society.
The program will help boost socioeconomic development in rural areas of
Panama, where 38% of the population lives but which only generate 8.4% of
GDP. Rural areas are home to 75% of the poor and 88% of the extremely poor
population in Panama.
"The program will ensure community participation in the selection and
adoption of appropriate arrangements for management of isolated systems, in
order to achieve project sustainability by collecting sufficient fees to
cover the costs of operation and maintenance," said Vieira de Carvalho.
"Community participation will also help develop productive uses of energy in
rural areas, generating income and reducing poverty rates."
The program will finance studies on the use of clean development mechanisms,
seeking new sources of funding from the sale of carbon credits. These
resources may help finance additional rural electrification projects.
The program will be implemented by the Ministry of the Presidential Affairs
of Panama through the Rural Electrification Office.
Support for program preparation was provided through a technical cooperation
grant from the Japan Special Fund Poverty Reduction Program for a project
entitled "Accelerating rural energy coverage in Panama," which was
implemented by the Energy Policy Commission in the Ministry of the Economy
and Finance, in coordination with the Rural Electrification Office.
The loan has an amortization period of 25 years, with a five-year grace
period and an adjustable interest rate.
* * *
Fitch Ratings assigned these ratings on Panama:
Rating Rating Date
------ -----------
Country Ceiling BBB Apr. 8, 2005
Long Term IDR BB+ Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating BB+ Dec. 14, 2005
=======
P E R U
=======
* PERU: Pluspetrol Cuts Oil Output Due to Protests
--------------------------------------------------
Plustpetrol, an Argentine firm, told Reuters that it has reduced its oil
output in northern Peru after indigenous groups who allege that crude
production is damaging environment held demonstrations.
According to Reuters, the indigenous tribes complained that oil-related
pollution is causing them problems in health as well as in livelihoods.
Citing a health ministry report, El Peruano -- the official gazette of
Peru -- notes that at least 200 people have dangerously high levels of lead
in their blood.
The groups then decided to seize control of three oil wells, Reuters
relates.
A spokesperson of Pluspetrol told Reuters, "About half of the production in
Block 1AB is affected."
According to government data, the block is the second biggest oil field of
Pluspetrol. It produces an average of 28,000 barrels per day.
The damage was from old, abandoned oil wells and not from its operations,
Reuters says, citing Pluspetrol.
Pluspetrol said in a statement that it was working with the government and
local communities to clean river water and develop projects like as fish
farms.
The protesters were demanding that senior government officials go to the
remote area to help solve the problem, Benito Vela, the regional government
spokesperson, told Reuters.
* * *
Fitch Ratings assigned these ratings on Peru:
Rating Rating Date
------ -----------
Country Ceiling BB Nov. 18, 2004
Long Term IDR BB Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating BB+ Dec. 14, 2005
=====================
P U E R T O R I C O
=====================
ADELPHIA: AEGIS Can Advance Up to US$900,000 to Individuals
-----------------------------------------------------------
The Honorable Robert E. Gerber of the U.S. Bankruptcy Court for
the Southern District of New York, permitted Associated Electric & Gas
Services Limited to advance an additional US$300,000 for James Rigas and
US$300,000 for Michael Rigas to cover Defense Costs pursuant to the terms of
the Agreement between the Rigases and AEGIS.
Advances by AEGIS
The Court also permitted AEGIS to advance to Pete Metros, Erland
Kailbourne, Les Gelber and Dennis Coyle an additional US$300,000
each for Defense Costs pursuant to the terms of the interim
funding agreements between AEGIS and those four individuals.
Based in Coudersport, Pa., Adelphia Communications Corp.
(OTC: ADELQ) -- http://www.adelphia.com/-- is the fifth-largest
cable television company in the country. Adelphia serves
customers in 30 states and Puerto Rico, and offers analog and
digital video services, high-speed Internet access and other
advanced services over its broadband networks. The Company and
its more than 200 affiliates filed for Chapter 11 protection in
the Southern District of New York on June 25, 2002. Those cases
are jointly administered under case number 02-41729. Willkie Farr &
Gallagher represents the ACOM Debtors. PricewaterhouseCoopers serves as the
Debtors' financial advisor. Kasowitz, Benson, Torres & Friedman, LLP, and
Klee, Tuchin, Bogdanoff & Stern LLP represent the Official Committee of
Unsecured Creditors.
Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of the Rigas
family. In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC. The RME Debtors filed for chapter 11 protection on March
31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-10642). Their cases
are jointly administered under Adelphia Communications and its
debtor-affiliates chapter 11 cases. (Adelphia Bankruptcy News, Issue Nos.
149; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).
ADELPHIA COMMS: Files Revised Disclosure Statement Supplement
-------------------------------------------------------------
Adelphia Communications Corp. filed a revised draft of the
Second Disclosure Statement Supplement to its Fourth Amended
Disclosure Statement with the United States Bankruptcy Court for
the Southern District of New York on Oct. 12, 2006. The revised
draft of the Disclosure Statement Supplement relates to the
modified draft of Adelphia's Fifth Amended Joint Chapter 11 Plan
of Reorganization that was filed with the Bankruptcy Court on
Oct. 11, 2006.
Adelphia and the Official Committee of Unsecured Creditors are
seeking an order of the Bankruptcy Court approving the revised
draft of the Disclosure Statement Supplement as containing
"adequate information" to enable Adelphia's Chapter 11 bankruptcy creditors
and equity holders to make an informed judgment about the modified draft of
the Fifth Amended Plan. The Bankruptcy Court commenced the hearing on the
Disclosure Statement Supplement on Sept. 12, 2006. The hearing is currently
scheduled to continue on Oct. 13, 2006.
Adelphia and the Official Committee of Unsecured Creditors remain
co-proponents of the modified draft of the Fifth Amended Plan. In addition,
the two bank administrative agents with which settlements have been reached
will continue to be co-proponents of the modified draft of the Fifth Amended
Plan with respect to the treatment of bank claims under the credit
agreements for which they are agents.
Adelphia's proposal and prosecution of confirmation of the
modified draft of the Fifth Amended Plan still is subject in all
respects to entry of an order approving the Disclosure Statement
Supplement, as well as Bankruptcy Court authorization for Adelphia to
propose and seek votes in respect of the modified draft of the Fifth Amended
Plan. If this order is entered and such authorization is granted, Adelphia,
the Official Committee of Unsecured Creditors and the relevant bank
administrative agents will begin the process of soliciting creditors and
equity holders to vote on the modified draft of the Fifth Amended Plan.
A full-text copy of the modified Fifth Amended Reorganization Plan is
available for free at http://ResearchArchives.com/t/s?134f
A full-text copy of the Disclosure Statement Supplement is
available for free at http://ResearchArchives.com/t/s?135d
Based in Coudersport, Pa., Adelphia Communications Corp.
(OTC: ADELQ) -- http://www.adelphia.com/-- is the fifth largest
cable television company in the country. Adelphia serves
customers in 30 states and Puerto Rico, and offers analog and
digital video services, high-speed Internet access and other
advanced services over its broadband networks. The Company and
its more than 200 affiliates filed for Chapter 11 protection in
the Southern District of New York on June 25, 2002. Those cases
are jointly administered under case number 02-41729. Willkie Farr &
Gallagher represents the ACOM Debtors. PricewaterhouseCoopers serves as the
Debtors' financial advisor. Kasowitz, Benson, Torres & Friedman, LLP, and
Klee, Tuchin, Bogdanoff & Stern LLP represent the Official Committee of
Unsecured Creditors.
Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of the Rigas
family. In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC. The RME Debtors filed for chapter 11 protection on March
31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-10642). Their cases
are jointly administered under Adelphia Communications and its
debtor-affiliates chapter 11 cases.
CONSOLIDATED CONTAINER: To Purchase Assets of MAB Group
-------------------------------------------------------
Consolidated Container Co. intends to acquire substantially all of the
assets of The MAB Group, a Louisville-based blow molding operation that
recently filed for bankruptcy relief.
Once the sale is approved by MAB's bankruptcy court, Consolidated Container
plans to expand the plant and will initially employ 20-25 workers and
service a number of established customer locations in the Southeast. This
plant will be the 60th manufacturing site for Consolidated Container, which
recently announced the acquisition of the Salt Lake City assets of the
Quintex Corp. and the pending acquisition of the Spokane assets of the
Quintex Corp. Although a definitive agreement has been finalized, the MAB
transaction is subject to the approval of the United States Bankruptcy Court
for the Western District of Kentucky, and no assurances can be given as to
whether the acquisition will close. Consolidated Container hopes to close
the transaction in the next several weeks.
Headquartered in Atlanta, Georgia, Consolidated Container
Company LLC -- http://www.cccllc.com/-- which was created in
1999, develops, manufactures and markets rigid plastic
containers for many of the largest branded consumer products and
beverage companies in the world. CCC has long-term customer
relationships with many blue-chip companies including Dean
Foods, DS Waters of America, The Kroger Company, Nestle Waters
North America, National Dairy Holdings, The Procter & Gamble
Company, Coca-Cola North America, Quaker Oats, Scotts and
Colgate-Palmolive. CCC serves its customers with a wide range
of manufacturing capabilities and services through a nationwide
network of 61 strategically located manufacturing facilities and
a research, development and engineering center. Additionally,
the company has 4 international manufacturing facilities in
Canada, Mexico and Puerto Rico.
* * *
Consolidated Container Company LLC's March 31, 2006, balance
sheet showed US$685.4 million in total assets and US$769.9
million in total liabilities, resulting in a US$84.5 million
equity deficit.
KMART CORP: Court Approves Pact Resolving Spring Park's Claim
-------------------------------------------------------------
GMAC Commercial Mortgage Corp. transferred its lease rejection
claim against Kmart Corporation to Spring Park Plaza Associates,
L.P.
Spring Park is landlord under a lease of property described as
Store. No. 7311/Real Estate Holding 6495 located at Denham
Springs, in Louisiana.
Kmart objected to the Claim. Subsequently, Kmart and Spring Park resolved
the objection.
Accordingly, the U.S. Bankruptcy Court for the Northern District
of Illinois signed an agreed order between the parties
stipulating that:
* Spring Park will have an Allowed Class 5 Lease Rejection
Claim for US$226,935, which will be satisfied in
accordance with the terms of Kmart's confirmed Plan of
Reorganization;
* the first distribution on account of the Allowed Claim
will be made at the next distribution date set by the
Plan;
* upon satisfaction of the obligations, Spring Park's claim
against, or arising out of, Store No. 7311 will be deemed
satisfied in their eternity; and
* Spring Park and its assigns are forever barred from
asserting, collecting, or seeking to collect any other
claims or amounts with respect to the Lease relating to
Store No. 7311.
Headquartered in Troy, Michigan, Kmart Corp. nka KMART Holding Corp. --
http://www.bluelight.com/-- operates approximately 2,114 stores, primarily
under the Big Kmart or Kmart Supercenter format, in all 50 United States,
Puerto Rico, the U.S.
Virgin Islands and Guam. The Company filed for chapter 11
protection on January 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474). Kmart emerged from chapter 11 protection on
May 6, 2003. John Wm. "Jack" Butler, Jr., Esq., at Skadden, Arps, Slate,
Meagher & Flom, LLP, represented the retailer in its restructuring efforts.
The Company's balance sheet showed US$16,287,000,000 in assets and
US$10,348,000,000 in debts when it sought chapter 11 protection. Kmart
bought Sears, Roebuck & Co., for US$11 billion to create the third-largest
U.S. retailer, behind Wal-Mart and Target, and generate US$55 billion in
annual revenues. The waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act expired on Jan. 27, without complaint by the Department of
Justice. (Kmart Bankruptcy News, Issue No. 117; Bankruptcy Creditors'
Service Inc. http://bankrupt.com/newsstand/or 215/945-7000)
KMART: Court OKs Pact Resolving Stribling's US$2,160,500 Claim
--------------------------------------------------------------
On May 26, 1999, Debra Stribling obtained a civil judgment in the Superior
Court of the State of California for the County of Los Angeles against Kmart
Corp. for US$2,160,500.
Kmart appealed, for which Liberty Mutual Insurance Company posted an appeal
bond.
In July 2002, Ms. Stribling filed Claim No. 31821 asserting a
general unsecured claim for US$5,386,037 arising out of the State Court
Judgment.
Accordingly, in a stipulation approved by the the U.S. Bankruptcy Court for
the Northern District of Illinois, Ms. Stribling and Kmart agree that:
* the Claim is allowed for US$2,892,288, which Kmart will
pay in cash and in full to Ms. Stribling no later than
Oct. 11, 2006;
* the US$2,892,288 Settlement Amount is in full satisfaction
of the State Court Judgment and the Claim, including any
asserted interest due on the State Court Judgment;
* Ms. Stribling will dismiss the State Court Action with
prejudice immediately after payment of the Settlement
Amount;
* the parties exchange mutual releases; and
* Ms. Stribling discharges any company that is part of the
Liberty Mutual Group for which surety business is
underwritten by Liberty Bond Service, from any claims or
interests Ms. Stribling may have against any Liberty
Entity.
Headquartered in Troy, Michigan, Kmart Corp. nka KMART Holding Corp. --
http://www.bluelight.com/-- operates approximately 2,114 stores, primarily
under the Big Kmart or Kmart Supercenter format, in all 50 United States,
Puerto Rico, the U.S. Virgin Islands and Guam. The Company filed for
chapter 11 protection on January 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474). Kmart emerged from chapter 11 protection on May 6, 2003. John
Wm. "Jack" Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP,
represented the retailer in its restructuring
efforts. The Company's balance sheet showed US$16,287,000,000 in assets and
US$10,348,000,000 in debts when it sought chapter 11 protection. Kmart
bought Sears, Roebuck & Co., for US$11 billion to create the third-largest
U.S. retailer, behind Wal-Mart and Target, and generate US$55 billion in
annual revenues. The waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act expired on Jan. 27, without complaint by the Department of
Justice. (Kmart Bankruptcy News, Issue No. 117; Bankruptcy Creditors'
Service Inc. ttp://bankrupt.com/newsstand/ or 215/945-7000)
MUSICLAND HOLDING: MacLennan Objects to Disclosure Statement
------------------------------------------------------------
A class action entitled Maureen MacLennan v. Musicland Group,
Inc., et al., is currently pending in the Superior Court of the
State of California, County of Los Angeles, Daniel I. Barness,
Esq., at Spiro Moss Barness Harrison & Barge LLP, in Los Angeles,
California, relates. The Sam Goody Holding Corp., Mediaplay and Suncoast
Motion Picture Company, Inc., all affiliates of Musicland Group, were also
named defendants in the Class Action.
The Debtors' affiliates have settled the Class Action shortly
before the Debtors filed for bankruptcy and preliminary approval
of the settlement has been granted in the Class Action, according to Mr.
Barness. However, the MacLennan Plaintiffs have received no notices in the
case nor is the Class Action listed in the Schedules of Musicland Group and
its affiliates, Mr. Barness points out.
Mr. Barness asserts that Disclosure Statement apparently failed to disclose
the existence or provisions of the settlement of the
Class Action, including the liquidation of a claim in favor of the MacLennan
Plaintiffs totaling US$295,000.
The MacLennan Plaintiffs ask the U.S. Bankruptcy Court for the
Southern District of New York to disapprove the Disclosure
Statement in its present form, and that approval be granted only
after the Debtors have disclosed all material facts.
Headquartered in New York, New York, Musicland Holding Corp., is a specialty
retailer of music, movies and entertainment-related
products. The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064). James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts. Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors. When the Debtors filed for
protection from their creditors, they estimated more than US$100
million in assets and debts. (Musicland Bankruptcy News, Issue
No. 19; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
MUSICLAND HOLDING: Tells Court of 10 Rejected Contracts
-------------------------------------------------------
Musicland Holding Corp. and its debtor-affiliates inform the U.S. Bankruptcy
Court for the Southern District of New York that they are rejecting 10
executory contracts effective as of
Sept. 30, 2006, pursuant to the Court-approved Expedited Lease Rejection
Procedures:
Counter Party Type of Contract
------------- ----------------
A and M Building Services Service Agreements
American Express Establishment Srvs. Service Agreement
American Express Incentive Services Card Program Agreement
Bensinger, Dupont And Associates Service Agreement
Discover Service/Credit Card
Pact
Hyperion Solutions Corporation License Agreement
National Processing Company, LLC Service Agreement
Samtrack Maintenance Agreement
Sprint Communications Company LP Service Agreement
Sprint Solutions, Inc. Service Agreement
Headquartered in New York, New York, Musicland Holding Corp., is a specialty
retailer of music, movies and entertainment-related
products. The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064). James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts. Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors. When the Debtors filed for
protection from their creditors, they estimated more than US$100
million in assets and debts. (Musicland Bankruptcy News, Issue
No. 19; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
=============
U R U G U A Y
=============
* URUGUAY: World Bank Says Mills Pass Environmental Standards
-------------------------------------------------------------
An agency of the World Bank told Reuters that the two pulp mills being
constructed in river Uruguay have met the environmental standards it has
required for funding.
Reuters relates that Argentina, which jointly owns the river with Uruguay,
has strongly opposed the mills, citing environmental damage.
EcoMetrix, an environmental consultancy from Canada that consulted the
study, said in a report, "Tourism, agriculture, fishing and apiculture are
the principle natural resource-based activities in the area of the pulp
mills. Such livelihoods are not likely to experience long-term negative
impacts as a result of the construction or operation of the two pulp mills
as the need for new plantation areas to supply the mills will be minimal and
the facilities will operate under best available techniques." it added.
Air and water emissions should be well below levels that are known to have
any health effects. Effluents from the mills, to be operated by Spain's
Ence and Metsa-Botnia, compare favorably with pulp mills around the world,
the report says.
The International Finance Corp., the World Bank's private sector unit, told
Reuters that it will review the result of the independent environmental
study. The Multilateral Investment Guarantee Agency, will decide whether to
recommend approval of funding and guarantees for the project.
Reuters underscores that once the IFC recommends its loan be approved, a
study that would last for 30 days would start. IFC directors would review
EcoMetrix's findings.
According to Reuters, private investors usually wait for the IFC to invest
in a developing country project before signing off.
Ville Jaakonsalo, the senior vice president for finance at Botnia, told
Rueters, "We are pleased that the IFC has finished the environmental impact
study that clearly confirms the results of prior studies. We are waiting on
the IFC's decision (regarding loans). We should recognize that although the
IFC loan only covers a small part of the total investment cost of the
project, the IFC has an important role in its financing."
Reuters notes that Romina Picolotti, the Argentine Environment Secretary,
criticized the IFC several days after it accidentally posted a preliminary
version of the study on its Web site.
"From the beginning, the World Bank has acted with complete negligence in
this process. It is an important player and if the important players act
irresponsibly, they foment social conflict and exacerbate the conflict
between both nations," Ms. Picolotti told reporters before the final report
was released.
* * *
Fitch Ratings assigned these ratings on Uruguay:
Rating Rating Date
------ -----------
Country Ceiling BB- Mar. 7, 2005
Long Term IDR B+ Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating BB- Mar. 7, 2005
=================
V E N E Z U E L A
=================
CITGO PETROLEUM: Faces Setbacks in the United States
----------------------------------------------------
Gas stations throughout the United States have stopped using Citgo Petroleum
Corp.'s gasoline, the Daily Journal reports.
As reported in the Troubled Company Reporter-Latin America on Sept. 29,
2006, 7-Eleven had dropped its affiliation with Citgo after 20 years. The
decision was made before President Chavez gave the speech. Citgo had said
in July that it decided earlier this year and after several months of
deliberation to allow its gasoline-supply contract with 7-Eleven to expire
at the end of September 2006. The 7-Eleven contract did not fit within
Citgo's strategy to balance sales with refinery production after the sale of
its interest in a Houston area refinery.
Daily Journal relates that T.D. Pete's five stations are planning to switch
to another brand.
Perry Denault, the co-owner of T.D. Pete's, told Daily Journal that stores
in Manteno, Bradley, Coal City and on Brookmont Boulevard in Kankakee are
shifting to Shell.
Meanwhile, two stations at River Street and at Maple Street will continue
selling Citgo gas, Daily Journal says, citing Mr. Denault, who also owns the
stores with Brian Rogers.
Mr. Denault refused to tell Daily Journal the reason for T.D. Pete's
converting to Shell at three of its locations.
"I'll let Brian answer that," Mr. Denault told Daily Journal.
Road Ranger and its 47 stores in five states have also terminated its
affiliation with Citgo on July 31, Daily Journal relates.
Rob Harmon -- the Road Ranger's general manager of merchandising and
food-service operations -- told Daily Journal that though the decision to
change petroleum already had been made, Venezuelan President Chavez's
comments prompted the firm to make the switch as quickly as possible.
President Chavez had called President George W. Bush a devil during his
speech at the United Nations, which spurred mass e-mailings and Internet
blogs that ask people to boycott Citgo. There were also messages in the
Internet favoring Citgo, Daily Journal states.
About Citgo
Headquartered in Houston, Texas, CITGO Petroleum Corp. --
http://www.citgo.com/-- is owned by PDV America, an indirect,
wholly owned subsidiary of Petroleos de Venezuela S.A., the
state-owned oil company of Venezuela.
PDVSA is Venezuela's state oil company in charge of the
development of the petroleum, petrochemical and coal industry,
as well as planning, coordinating, supervising and controlling
the operational activities of its divisions, both in Venezuela
and abroad.
* * *
As reported at the Troubled Company Reporter on Feb. 16, 2006,
Standard and Poor's Ratings Services assigned a 'BB' rating on
CITGO Petroleum Corp.
Citgo carries Fitch's BB- Issuer Default Rating. Fitch also
rates the Company's US$1.15 billion senior secured revolving
credit facility maturing in 2010 at 'BB+', its US$700 million
secured term-loan B maturing in 2012 at 'BB+', and its senior
secured notes at 'BB+'.
CITGO PETROLEUM: Selects NTP Software to Control Storage Growth
---------------------------------------------------------------
Citgo Petroleum Corp. has selected the Smart ILM Suite from NTP Software,
the worldwide leader in the management and control of unstructured data, to
gain real-time control over storage growth. Citgo Petroleoum's investment
is based on benefits offered by the NTP Software QFS Family of Products, the
On-ramp to ILMSM.
As one of the largest suppliers of petrochemicals in the world, CITGO needed
a scalable solution that provided robust flexibility to both control content
and manage storage growth across their enterprise environment. Citgo
Petroleum's selection of NTP Software's Smart ILM Suite of products,
including NTP Software QFS and NTP Software Storage M&A further validates
NTP Software's position as clear market leader in the management and control
of unstructured data.
"Leading organizations like Citgo Petroleum demand the most flexible,
feature-rich solutions in the industry," said Aaron Dufoe, vice president of
sales at NTP Software. "We are happy to see that our continued investment
in providing innovative ILM solutions to help organizations better manage
their storage assets is paying off via their greater and greater adoption in
the marketplace."
About NTP Software
Based in Nashua, NH, NTP Software is the worldwide leader in the control and
analysis of storage. The company creates platform-independent products that
enable customers to control and manage their storage environments.
About Citgo
Headquartered in Houston, Texas, Citgo Petroleum Corp. --
http://www.citgo.com/-- is owned by PDV America, an indirect,
wholly owned subsidiary of Petroleos de Venezuela S.A., the
state-owned oil company of Venezuela.
PDVSA is Venezuela's state oil company in charge of the
development of the petroleum, petrochemical, and coal industry,
as well as planning, coordinating, supervising, and controlling
the operational activities of its divisions, both in Venezuela
and abroad.
* * *
Standard and Poor's Ratings Services assigned a 'BB' rating on
Citgo Petroleum Corp.
Citgo Petroleum carries Fitch's BB- Issuer Default Rating. Fitch also rates
the Company's US$1.15 billion senior secured revolving credit facility
maturing in 2010 at 'BB+', its US$700 million secured term-loan B maturing
in 2012 at 'BB+', and its senior secured notes at 'BB+'.
FERRO: Auditor Expresses Adverse Opinion on Internal Control
------------------------------------------------------------
Ferro Corp. filed its annual report for the year ended
Dec. 31, 2005, with the U.S. Securities and Exchange Commission on Sept. 29,
2006.
"We are pleased to finalize our audited 2005 financial statements and
provide investors with our complete Annual Report," James Kirsch, Ferro
president and chief executive officer, said. "This is another significant
step toward achieving a normal filing schedule and focusing the Company on
profitable growth."
The Company expects to file its 2005 reports on Form 10-Q for the quarters
ending March 31, June 30, and Sept. 30, 2005, by the end of October. With
the completion of the 2005 financial filings, the Company will then focus on
the completion of its Form 10-Q filings for the first three quarters of
2006, and expects to file these reports with the SEC by the end of 2006.
Material Weaknesses
Auditors working for Deloitte & Touche LLP in Cleveland, Ohio,
expressed an unqualified opinion on management's assessment of the
effectiveness of the Company's internal control over financial reporting and
an adverse opinion on the effectiveness of the Company's internal control
over financial reporting because of material weaknesses.
The Company has identified three material weaknesses in internal
control over financial reporting as of Dec. 31, 2005:
1. inadequately trained and insufficient numbers of
accounting personnel coupled with insufficient accounting
policies and procedures,
2. failure to consistently reconcile and perform timely
reviews of accounting reconciliations, data files, and
journal entries, and
3. failure to properly identify and ensure receipt of
agreements for review by accounting personnel.
Results of Operations
Sales from continuing operations for the year ended
Dec. 31, 2005, of US$1,882.3 million were 2.1% higher than the comparable
2004 period. Improved pricing and more favorable product mix in North
America, Asia-Pacific, and Latin America were the primary drivers for the
revenue gain. Weakness in the market for multilayer capacitors depressed
unit demand and revenues, particularly in the first half of 2005. On a
consolidated basis, the impact of strengthening foreign currencies versus
the U.S. dollar had only a minimal positive impact on revenues.
For the year ended Dec. 31, 2005, the Company earned US$14,786,000 on
US$1,882,305,000 of net sales compared with US$23,220,000 of net income on
US$1,843,721,000 of net sales for the year ended Dec. 31, 2004.
At Dec. 31, 2005, the Company's balance sheet showed
US$1,668,544,000 in total assets, US$1,179,985,000 in total
liabilities, US$20,468,000 in convertible preferred stock, and
US$468,091,000 in total stockholders' equity.
A full-text copy of the Company's annual report is available for
free at http://ResearchArchives.com/t/s?1358
Headquartered in Cleveland, Ohio, Ferro Corp. (NYSE:FOE) --
http://www.ferro.com/-- produces performance materials for
manufacturers, including coatings and performance chemicals.
The Company has operations in 20 countries and has approximately
6,800 employees globally. In Venezuela, Ferro Corp. has operations in
Argentina, Brazil, Mexico and Venezuela.
* * *
As reported in the Troubled Company Reporter on Oct. 2, 2006,
Standard & Poor's Ratings Services' 'B+' long-term corporate
credit and 'B' senior unsecured debt ratings on Ferro Corp.
remained on CreditWatch with negative implications, where they
were placed Nov. 18, 2005.
* Michael Lord Joins Alvarez & Marsal's Restructuring Practice
--------------------------------------------------------------
Alvarez & Marsal reported that Michael Lord has joined its U.S.
restructuring practice. Mr. Lord will be based in Atlanta and New York.
Specializing in operational turnarounds and performance
improvement, Mr. Lord has more than 30 years of experience serving in
interim management and advisory roles with both U.S. and international
organizations across a variety of industry sectors.
Most recently at A&M, Mr. Lord led the team that advised Dresser, a private
equity-owned global engineering business with annual revenues of US$2
billion. He also acted as advisor to Levi Strauss in restructuring the
company's European group, a EUR900 million division. Other A&M engagements
have included British Energy plc, MyTravel and Bradford Hospital Teaching
Hospitals NHS Foundation Trust.
"Michael is a widely respected turnaround industry professional
who further enhances the significant hands-on, operational
experience our professionals bring to middle market clients facing complex
situations," said Bill Runge, an A&M managing director and co-head of the
firm's Southeast regional restructuring practice. "Our Southeast regional
restructuring practice has continued to expand with the addition of several
world class professionals and we are delighted that Michael is
an integral part of our team."
"Michael has an exceptional track record in both the private
and public sectors located in the U.S. and abroad" Joe Bondi,
managing director and co-head of the firm's U.S. restructuring
practice, added. He worked on behalf of companies and
organizations to improve operating performance, manage crises
and implement positive change. He is an outstanding addition
to our senior U.S. restructuring team."
Prior to joining A&M, Mr. Lord served as CEO of Nationwide Credit Inc., a
private equity-owned business based in Atlanta, with more than 2,500
employees. He led a full turnaround of the company, re-building and
steering it through a successful financial and operational reorganization.
Before that, he spearheaded the turnaround of Tyco Toys, a US$1 billion
international toy company. Mr. Lord began his career with Unilever in the
UK, before moving to the cosmetics division of BAT Industries, where he
served in senior management positions.
Mr. Lord holds a master's degree in economics from Cambridge
University.
About Alvarez & Marsal
Alvarez & Marsal is a leading global professional services firm
with expertise in guiding underperforming companies and public
sector entities through complex operational, financial and
organizational challenges. The firm excels in problem solving and value
creation, and brings a bias toward executing solutions with a distinctive
hands-on approach to serving clients, management and stakeholders.
Founded in 1983, Alvarez & Marsal draws on its strong operational heritage
to provide specialized services, including Turnaround and Management
Advisory, Crisis and Interim Management, Performance Improvement, Creditor
Advisory Services, Corporate Finance, Dispute Analysis and Forensics, Tax
Advisory, Business Consulting, Real Estate Advisory and Transaction
Advisory. A network of experienced professionals in locations across the
U.S., Europe, Asia and Latin America, enables the firm to deliver on its
proven reputation for leadership, problem solving and value creation.
* BOOK REVIEW: The Global Bankers
---------------------------------
Author: Roy C. Smith
Publisher: Beard Books
Paperback: 405 pages
List Price: US$34.95
Order your personal copy at
http://amazon.com/exec/obidos/ASIN/1587980223/internetbankrupt
The Global Bankers is a fascinating book that examines global
banking activities as they were carried out on the eve of the
1990s from its three major centers: New York, London, and Tokyo.
The author, Roy C. Smith, says his goal in writing the book was to "identify
whom all these busy people are who practice global
banking today and what it is that they do." He is one of those
busy people himself, having been a partner at Goldman, Sachs
before moving to academia.
First published in 1989, The Global Bankers discusses the banking systems of
the U.S., Europe, and Tokyo separately, but always underscoring their
interconnectedness. Mr. Smith traces the international development of the
markets and highlights the
principal distinctions and most important and topical features of each.
Throughout the book, Mr. Smith introduces terms and definitions
for the reader new to the field, but never in a condescending way. (He
includes a useful glossary as well.) The introduction looks at the global
banking system from the point of view of a
fictitious but astute U.S. businessman who discovers how the
globalization of banking has extended the range of opportunities
available to him.
"George" learns all about merchant banks, banques d'affaires,
clearing banks, junk bonds, and collateralized mortgage
obligations.
The greater part of the book is made up of four sections entitled "The
Internationalization of American Finance," "Crusades in European Finance,"
"The Floating World of Japanese Finance," with a final chapter called
"Looking to the Millenium."
Mr. Smith shows how the initial impetus to the tremendous growth
of financial assets and instruments of the late 20th century was
the burgeoning balance-of-payment deficits incurred by the U.S.
after World War II.
Once the U.S. halted sales of gold reserves to foreign dollar-
holders and the fixed-rate foreign-exchange system was abandoned
for a floating system, financial deregulation occurred in many
countries, and financial resources flowed to attractive
opportunities worldwide.
The next big challenge took the form of high oil prices, and in
1979 the U.S. Federal Reserve instituted money-supply controls,
with consequential high interest rates and acute volatility in the markets
for financial instruments and foreign exchange.
The 1980s heralded the era of the institutional investor/trader, a financial
boom, and then Oct. 19, 1987, when markets crashed in New York, London,
Frankfurt, Zurich, Sydney, Tokyo, and Hong Kong. Much of the chapter on the
U.S. is devoted to these events.
Mr. Smith also examines innovative developments in European
finance during this same period, beginning with the rise of the
Eurobond market and including the free-market reconstruction of
the London Stock Exchange and the surprising resurgence of
pragmatic capitalism in socialist-leaning Europe.
Mr. Smith then attempts to demystify the financial customs of the Japanese,
and stresses the interdependence of the U.S. and Japan.
Mr. Smith closes by identifying some trends and "megatrends," and with some
predictions and admonitions for the subsequent decade, the 1990s. He was
right on target with some of these, and some go far toward explaining what
is happening in the markets right now.
Roy C. Smith is a professor of entrepreneurship, finance, and
international business at New York University. Prior to 1987, he was a
General Partner of Goldman, Sachs & Co.
***********
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
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Information contained herein is obtained from sources believed to be
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The TCR Latin America subscription rate is US$575 per half-year, delivered
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For subscription information, contact Christopher Beard at 240/629-3300.
* * * End of Transmission * * *